What is Marketing?

Marketing :

“Marketing is a social and managerial

process by which individuals and groups
obtain what they need and want
through creating and exchanging value
with others”
 The Marketing Process
A Five-Step Process
1. Understand the marketplace and customer needs and
wants

2. Design a customer-driven marketing strategy

3. Construct a marketing program that delivers superior

value

4. Build profitable relationships and create customer delight

5. Capture value from customers to create profits and

customer quality
Core Marketing Concepts
Need
▪ State of felt deprivation
▪ Example: Need food

Wants
▪ The form of needs as shaped by culture and the
individual
▪ Example: Want French Fries

Demands
▪ Wants which are backed by buying power
Marketing offer

▪ Anything that is offered to satisfy a need or a

want.
Value
▪ Customers form expectations regarding value

▪ Marketers must deliver value to consumers

Satisfaction
▪ A satisfied customer will buy again and tell others
about their good experience
Exchange
▪ The act of obtaining a desired object from
someone by offering something in return

▪ One exchange is not the goal, relationships with

several exchanges are the goal

▪ Relationships are built through delivering value

and satisfaction

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Market

▪ Set of actual and potential buyers of a product

▪ Marketers seek buyers that are profitable

 Elements of a
Modern Marketing System
 Marketing Management

Marketing management is the art and science

of choosing target markets and building
profitable relationships with them.
Customer Management
▪ What customers will we serve?
▪ Marketers select customers that can be
served profitably
Value Proposition
▪ How can we serve these customers best?
▪ Includes the set of benefits or values a
company promises to deliver to consumers
to satisfy their needs
 Marketing Management

Production Management Product

Concept Orientations Concept

Selling Marketing
Concept Concept
Societal
Marketing
Concept
 Philosophies of Marketing

Traditional Concepts Modern concepts

Exchange concept Marketing concept

Production concept Societal marketing

concept
Product concept
Holistic Marketing
Selling concept concept
 Marketing Management
Philosophies
Production Concept •Consumers favor products that are
available and highly affordable.
•Improve production and distribution.

Product Concept •Consumers favor products that offer

the most quality, performance, and
innovative features.
Selling Concept •Consumers will buy products only if
the company promotes/ sells these
products.
Marketing Concept •Focuses on needs/ wants of target
markets & delivering satisfaction
better than competitors.
Societal Marketing Concept
•Focuses on needs/ wants of target 1 - 14
markets & delivering superior value.
The Selling and Marketing
Concepts Contrasted
 Scope of Marketing
Marketing has a wide scope, since it covers all the activities from conception of
ideas to realization of profits.

➢Study of consumer needs and wants

➢Study of consumer behavior
➢Product planning and development
➢Branding
➢Packaging
➢Channels of distribution
➢Pricing Policies
➢Promotion
➢Sales Management
➢Finance
➢After Sales Service

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 New Marketing Realities

Major and sometimes interlinking societal forces have created

new marketing behaviors, challenges and opportunities.

1.Network information technology

2.Globalization
3.Deregulation
4.Privatization
5.Heightened competition
6.Industry convergence
7.Retail transformation
8.Disintermediation
9.Consumer buying power
10.Consumer information
11.Social Networking sites
12.Consumer Participation
13.Consumer resistance

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Holistic Marketing Concept

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 Relationship Marketing
It has the aim of mutually satisfying long term
relationships with key parties – customers, suppliers,
distributors and other marketing partners.

Relationship marketing builds strong economic, technical

and social ties among the parties.

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 Internal marketing
Internal marketing is the task of hiring, training and
motivating able employees who wan to serve customers
well.

Internal marketing must take place at 2 levels.

At one level, various marketing functions must work
together.

At another level marketing must be embraced by other

departments. They should think ‘Customer’.

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 Integrated Marketing

The marketer’s task is to devise marketing

activities and assemble fully integrated
marketing programs to create, communicate
and deliver value for consumers.

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 Performance Marketing
Performance Marketing is a comprehensive term that refers to online
marketing and advertising programs in which advertisers and marketing
companies are paid when a specific action is completed; such as a sale, lead
or click.

Performance Marketing is a combination of advertising and innovation that

helps retailers and affiliates grow their businesses in ever-changing ways.
Campaigns are highly targeted for each retailer in such a way that everyone
can be successful. Performance marketing done right creates win-win
opportunities for both retailers and affiliates.

Unlike other forms of traditional advertising where fees are paid up front and
do not depend upon the success of the ads, advertisers in performance
marketing only pay for successful transactions. Performance marketing has
successfully reversed the traditional value proposition of advertising and
also allows for real-time measurement of ROI.
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 Requirements for a Performance marketing campaign:

•The intention of the campaign is to drive consumer action, as opposed to

raise awareness

•The cause and effect between the advertising and consumer action
can be clearly measured

•The buyer can optimize their buy in real or near real-time based on the
measurement

•In many cases payment is made based on consumer action (this is not
necessarily required if the other three criteria are met)

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 The New 4 Ps
S- Solution (Product)

A- Access (Place)

V- Value (Price)

E- Education (Promotion)

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