Basics of Marketing - Session I-2 - Detailed class notes

Q1) Define Marketing?

 “Marketing it is an administrative social & managerial process which

individuals and groups obtain what they need, want & desire by the
generation, through creating & exchanging products offering and exchange
of valuable products with their equals”.

Q2) Explain Needs, Wants and Demand with proper examples.

Your answer must contain

1. Various kind of needs

2. Difference between Wants and Demand

 The best form of retaining consumers is to constantly analyze how

to give them more for less”.

* NEEDS-Needs are the essential things to fulfill the states of deprivation

for our survival

EG:

1) Physical needs include the basic human requirements such as air for

breathing, food, water, clothing, and shelter.

2) Social needs are the requirement for belongings and affection from

friends and family.

3) Individual needs can be varied depending on each person’s

perception, knowledge, and environment
 * WANTS - Wants are directed by our surrounding towards reaching
certain needs. Human’s wants can be varied depending on each
individual’s perception, environment, culture, and society.

EG: An American needs food but he may want a hamburger, fried potato
and beer; a Chinese needs food but he may want a bowl of noodle and a
cup of hot tea

* DEMANDS-Needs or Wants turn to be Demands when a customer is willing

and having the ability to buy that needs or wants

EG: Many people want a Mercedes, but only a few can buy one
 1) Various kinds of Needs

“Maslow’s Hierarchy of Needs” or called “Five-tier Model of

Human Needs” has specified human Needs into five levels

 These are the basic needs of human which classifies in the following terms.

 The first level of needs are the Physiological needs which are essential

for us to survive. So this can include anything from air for breathing, water,
food, sleep, shelter, and clothing.

 The second level of needs are the needs for Safety. The safety needs can
include personal security, safety of resources, safety of employment, safety in
property and health. All the safety needs are the basic needs for humans as well.

 The third level of Maslow’s Hierarchy of Needs is the need for Love; the
need to belong, the need to have friends and family. So this level of needs is
called the social needs.

 The fourth level is the needs for Esteem, self-esteem. In this level, we like

to feel confident and have a sense of achievement in what we do. So this level is
also called as the level of respect. We like to gain respect from others in this
level.

 The fifth level is called Self-actualization level. Self-actualization is

basically our need for wanting morality, a sense of morality, a need for
acceptance and also creativity. In other words, the level of self-actualization can
be called as the level of our full potential.
 As a marketer, we should have an idea which level of Needs is your
product targeting to.

2) Difference between Wants and Demand

WANTS DEMAND

The desire for a good or service The desire plus the ability &

Willingness to pay service

Wants is the desire need of an individual Demand is the actual requested

commodity in

Where he/she can buy or not the market

Eg: drinking water is a need but flavo Eg: Cold water with icecream

-red

Q3) “Demands are backed by buying power” justify the statement with proper
examples

Demands are those specific wants that are backed up by the consumers ability to buy

 Customers view products as bundles & choose those that give them the best value
for their money.
  Successful firms go to great lengths to learn about & understand consumers needs ,
wants , demands.
 These firms conduct consumers research that monitor consumer behavior complaints
and inquiries & analyse warranty & service performance data.
 Understanding these needs, wants, & demand in details provides important input for
designing marketing strategies.

Q4) What is the definition of Product ? Suggest suitable examples for

Attention, Acquisition and Use or Consumption.

A product is the item offered for sale. Every product is made at a cost and each
is sold at a price. The price that can be charged depends on the market, the quality,
the marketing and the segment that is targeted. Tangible products are
known as goods while intangible products are called services.

Eg: Chair is a product, Microsoft office is a product, Agile consulting services

would be a product.

A product (goods) is anything that can be offered to a market for

attention, acquisition, or use of consumption that might satisfy want or
need.

Eg:

ACQUISITION: An acquisition is the purchase of all or a portion of a

corporate asset or target company.
ATTENTION: Include listening carefully to what someone is saying while
ignoring other conversations in a room.
USE OF CONSUMPTION : When many members of the population go shopping.

Q5) Explain Service, Person and Idea as a product with

examples
Service product is when a business offers a service and a product or a good
together as its practice. This is also called service-good mix, and it can refer to
many different types of businesses in all different industries

Eg: haircuts, medical check-ups, mail delivery, car repair

  Person is a being that has certain capacities or attributes such as reason,
morality, consciousness or self-consciousness, and being a part of a culturally
established form of social relations such as kinship, ownership of property, or legal
responsibility.
Eg:  Individual, or, under law, an incorporated group with certain legal rights and
responsibilities.

 IDEA means something that you imagine or picture in your mind.

Eg: A Solar-Powered Camping Tent, Ultra-Ever Dry Waterproof Coating.

Q6) Explain Service with special attention to Intangible

and Ownership properties.

A service is an activity which has some element of intangibility associated with

it, which involves some interaction with customer or with property in their
possession, and does not result in a transfer of ownership .

Ownership properties: When you purchase or otherwise come

into ownership of real estate such as a house, you gain an ownership interest in it. ...
Holding an ownership interest in a piece of real estate gives you rights to its use and
disposition, as well as certain responsibilities for it.
Q7 Explain Customer Value with suitable examples.

Customer value is the result of a conversation between a sales person and

a customer, wherein the sales person is able to determine the customer's needs
and goals and explain how a given product will create value by satisfying those
requirements while generating benefits for the customer.

Eg: the benefits received from the smaller bottle purchase are:

convenience, easy to carry, less wastage, easier to fit in a bag.

Q8) Define Customer Satisfaction. Your answer must include

Dissatisfied, Satisfied and Delighted customers.

 Customer satisfaction is defined as a measurement that determines how

happy customers are with a company's products, services, and
capabilities.

Customer Dissatisfaction: Is a customer who is unhappy with a product or

service.

CUSTOMER SATISFACIED: It is defined as a measurement that determines

how happy customers are with a company's products, services, and capabilities.

DELIGHTED CUSTOMER : The very favourable experience of the client of a

business when they have received a good or service that significantly
surpasses what they had initially anticipated. A marketing department can
use instances of customer delight to a customer delight to a company’s
advantage by requesting referrals & obtaining testimonials from delighted
customers that can help attract new customers.

Q9) How is ‘Quality’ related to ‘Customer Satisfaction’ ? Explain

with examples.

'Quality' as "it is the ability of a service firm to hang on to its customer. That is, in
their opinion customer retention is the best measure of service quality.

Eg: A scale measuring from 1 to 10 (or another number). 1 is an extremely

unsatisfied opinion and 10 meaning the customer was very satisfied

Q10) What is exchange?

Philip Kotler defined exchange as "Satisfying needs and wants through

an exchange process"as a social and managerial process by which
individuals and groups obtain what they want and need through creating,
offering and exchanging products of value with others.

Q11 Explain transaction with reference to an invoice?

An invoice is a time-stamped commercial document that itemizes and

records a transaction between a buyer and a seller. If goods or services
 were purchased on credit, the invoice usually specifies the terms of the deal
and provides information on the available methods of payment.

Q12) Explain relationship with marketing with examples.

"Relationship marketing is a strategy designed to foster customer loyalty, interaction

and long-term engagement. It is designed to develop strong connections with customers by
providing them with information directly suited to their needs and interests and by
promoting open communication."

Eg:

 Attraction: The brand and the consumer lock eyes.

 Connection: The brand pulls it together, plays it cool and speaks to the
consumer in a way that pique's the consumer's interest. ...
 Dating: The brand wants to get to know the consumer a little better, so it asks
for the consumer's information.

Q13) What is market ? How do we determine the size of the market.

A social & managerial process whereby individuals & groups obtain what they
need & want through creating & exchanging products & value with others.

To determine market size, we will either be looking for data on the number of potential
customer, or number of transactions each year.

Eg: if you are selling toothbrushes, virtually everyone can be counted in your big
whole market figure.

Q14) What is DE-MAREKTING ? Provide examples to demarketing .`De-

Marketing has to be used carefully” Justify the statement.

DE-MARKETING: Coined by Phillips Kotler,Demarketing can be explained as the

efforts made by a company to reduce consumption of a product. Webster’s
dictionary says that demarketing is “The use of advertising to decrease demand for
a product that is in short supply.

Eg:

Demarketing would be the efforts made by the TATA group to discourage

consumers from buying Tata Nano. Since the demand for Tata Nano far outweighed
the supply, Tata Group completely stopped the promotion of Tata Nano and rather
started promoting other products by the Tata group

De-Marketing has to be used carefully”

Yes, Demarketing has to be used carefully Demarketing has to be done in such a way that
product research, sectors before demarketing of product .It can also harm the image
demand of the product if not dealt properly .

Q15) ‘Selling & Marketing concepts contrasted’ Elaborate this statement with
appropriate examples.

The selling concept strives to turn products into cash for the business, while
the marketing concept strives to meet customer needs through the product itself. The
difference between selling concept and marketing concept ,selling concept focuses on need
of the seller & marketing concept focuses on need of the buyer.

The selling concept is sales maximization whereas, marketing concept is profit

maximization. With the increase in number of sales the profit of the company will
increases.

Q16) Societal Marketing must improve the Consumers & Society’s well
being .Justify this statement with appropriate examples.

Societal Marketing emphasizes on social responsibilities and suggests that to sustain

long-term success, the company should develop a marketing strategy to provide value
to the customers to maintain and improve both the customers and society's well
being better than the competitors.

Eg: A smoking cessation advertisement is an example of social marketing, but if

the marketing strategies and techniques used in that campaign focus on increasing the
well-being of society, that same campaign can be an example of societal marketing.

Q17) Which are the Jerome McCarthy”s 4p”s of marketing.

Jerome McCarthy, provided a framework by means of the marketing mix: the

4 P's.

The 4P 's include

 PRODUCT- What does the customer want from the product

 PRICE- What is the value of the product or service to the buyer?

 PLACE- Where do buyers look for your product or service?

 PROMOTION- Where and when can you get your marketing messages
across to your target market?

Q18) What are the relevances of the new P’s-People, Process, Physical
Evidence? Site proper examples for each of them.

People

This is a vitally important element of the service marketing mix. When a service is
being delivered, the person delivering it is not unique from the service itself.

Eg: When dining at a restaurant, if a rude waiter is encountered, the entire experience
will be labeled as bad service.
PROCESS

A process needs to be clearly defined for the service provider. This basic process should
ensure the same level of service delivery to every customer, at any time of day, on any day.

Eg:  Rolls-Royce motor cars will build a Phantom which is adapted to the requirements of
each individual client

PHYSICAL EVIDENCE

The level of comfort and attractiveness of a service location may make a lot of difference to
the user experience. A calm and soothing environment with thoughtful comfort measures
may provide a sense of security to a new customer which will make them return.

Eg: the identity of people associated with a crime; for example, fingerprints, handwriting,
or DNA might prove that a certain person was present at a crime scene.

Q19) Explain 4C’s with suitable examples.

CONSUMER

Companies should only sell products that the consumer wants to buy. Thus, you
should research consumer wants and needs. The most effective way to do this is
using Jobs to be Done and outcome-driven customer research. Once this is clear,
focus your efforts on attracting consumers one-by-one with an irresistible offer.

COST

The price is only a small part of the total cost to satisfy a product that a consumer
wants or needs. The cost reflects the total cost of ownership, not just the price the
consumer pays for the goods. Price becomes just one of many elements within the
total cost of satisfying the customer’s need.
 CONVIENCE

A customer is not bound to buying your product or service from a physical location.
Convenience focuses on the ease of buying the product. You must build buying
experiences that delight your ideal buyer.

COMUNICATION

Promotion suggests that the relationship is one-way, but with the rise of social
media and the internet, “communication” is a better description. It represents a
much broader focus on the entire buying experience. This is driven by the consumer
of a product. It indicates that it’s a cooperative process that’s led by the buyer.

Q20) Explain 4A’s with examples.

 Acceptability addresses the issue of how functionally and psychologically

acceptable your offerings must be to meet or exceed the needs of your target
market.
 Affordability analyzes whether or not your target customer is able and willing to
pay the proposed price point.
 Accessibility refers to how available and how convenient it is for your customer
to purchase your offering.
 Awareness relates to your overall brand awareness and your customer’s
knowledge of your product and service.
Q21) Explain Marketing Myopia with examples

Marketing myopia is the approach of marketing management of a company, which

only focuses on certain attributes of the product or service while completely
ignoring the long terms goals such as product quality, customers need, demand and
satisfaction.

Eg:  Blockbuster. People were leaving the video rental service behind and instead of
making the painful changes needed to survive, they buckled under the pressure .

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