INTRODUCTION TO MARKETING

MARKETING DEFINITION
Marketing is an organisational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organisation and stakeholders. American Marketing Organisation

MARKETING MANAGEMENT DEFINITION

Marketing management is the art and science of choosing target markets and getting, keeping and growing customers through creating , delivering and communicating superior customer value.

MARKETING .SIMPLE DEFINITION Marketing is a societal process by which individuals and groups obtain what they need and want through creating. offering and freely exchanging products and services with others. .

Company Anniversaries. Housekeeping.Sense and Sensibility. Theme Restaurant PERSONS.-Airlines.Trade Shows.TVs. . stocks and bonds. SERVICES. Machines. flats. real estate agents.-Amusement Park. road safety. Air India – Maharajah. – Cars .Swineflu. Sachin. Social campaigns –AIDS. homes. • IDEAS. commercial banks.-Amitabh.land . Amul –The taste of India. builders. Chemicals. Hotels.-Philips. ORGANISATIONS. INFORMATIONS. EVENTS. Saina Nehwal PLACES. Fastfood. EXPERIENCES.. PROPERTIES.Leander.WHAT IS MARKETED? • • • • • • • • • GOODS.

the act of selling. services. or other property for money.SALES DEFINITION • An exchange of goods. . • The exchange of goods or services for an amount of money or its equivalent. demand. • An opportunity for selling or being sold. • An instance of selling.

a purchase. a vote .WHO MARKETS? • MARKETER AND PROSPECTS A Marketer is a someone who seeks a response – attention. . called the Prospect. a donation – from another party.

timing and compositions of demand to meet the organisations objectives.Who Markets ? Marketing – Stimulate demand for their company’s products – seek to influence the level. There are eight demand states. however in each case marketers must identify the underlying causes of the demand state and then develop a plan of action to shift the demand to a more desired state .

Different Kinds of Demand • Negative demand – Consumers may dislike the product.demand not satisfied by existing products • Declining demand – Buy less frequently • Irregular demand – Seasonal demand • Full demand – Buying adequately whatever is put into the market • Overfull demand – More consumers would like to buy the product than can be satisfied • Unwholesome demand – demand for products that have undesirable consequences. . • Non-existent demand – Unaware/ uninterested in the product • Latent demand .

Oil Market.Markets Traditionally – physical place where buyers and sellers gathered to buy and sell goods Economists describe it as a collection of buyers and sellers who transact over a particular product or product class – Financial Market. FMCG Market.labour market etc . Housing Market. youth market. product market. geographic market. viz. Automobile Market etc Term market – covers various groupings of customers Sellers as industry and buyers as market.

Basic Markets • • • • • Resource Markets Manufacturer Markets Intermediary Markets Consumer Markets Government Markets .

• Business Markets.KEY CUSTOMER MARKETS • Consumer Markets. • Non. .profit and Governmental Markets. • Global Markets.

Pepsi. Cosmetics brands. lifestyle products etc – Cos need to create superior brand image. charitable organisations – price concious • Business Markets – have well trained and and well informed buyers. Hence marketers should demonstrate how their product will help these buyers achieve higher revenue or lower costs – more than advertising. As exporter. licenser... the sales force. toiletries. Temples. pricing. Leather etc how to enter . • Global Markets – Face different challenges – which countries to enter. cosmetics. advertising in different cultures.Brief about these. • Non profit and Governmental Markets – Organisations like . and company’s reputation play a stronger role – OEMs like Auto components. easy availability and reliable service Business buyers buy in order to make or resell a product to others at a profit. price. • Consumer Markets – Mass consumer goods – softdrinks. which depends on developing superior product and packaging. joint venture partner etc – how to adapt their product and service features to each country. food products. political systems etc – Coco Cola. Chemicals. toiletries etc Churches.

Marketing Concepts • To understand marketing function. Wants and Demands • What are these? . we need to understand: • Needs.

water etc • Wants are needs which are diverted to specific objects – Food is a need where as requiring Chapathis for food is a want they are shaped by our society • Demands are wants for specific products backed by an ability to pay – buying an expensive car. house etc As a marketer. shelter. • Needs are basic human requirements – food. we must not only measure the wants but also the demand Does Marketer creates needs? – For Discussion…… .Marketing concepts ….

premium car like Mercedes or BMW would satisfy a persons need for social status – they do not create the need for social status (Maslow’s theory of motivation) .Contd… • Marketers do not create needs – needs pre exist marketers – along with other factors influence wants – they might promote the idea that a luxury.

.Real Need – customer wants a car whose operating cost is low not the initial cost • 4.Delight needs – customer likes the dealer to incl on board navigation system • 5.Contd..Secret needs – he wants his friends to see him as a savvy consumer .Unstated need – Customer expects good service from dealer • 3.I want to study in good college • We can distinguish 5 types of needs: • 1.I want luxury car. • Understanding customer needs and wants – not simple • Some customers have needs which they cannot articulate – I want good food..Stated need – Customer wants an inexpensive car • 2..

Nokia and Ericsson – shaped consumer perception on cellphones. • Responding only to the stated needs – not sufficient as many consumers do not know what they want in a product .. companies must help customers learn what they want .. ICICI Bank – changed the concept and perception of retail loans • Crucial differentiator – To gain edge over other competitors.Contd.

movies. hotels. cars.Target Markets. Positioning and Segmentation • Marketer cannot satisfy every one in the market – tastes differ be it in – food. the company develops a market offering that positions in the minds of the target buyers – as delivering some benifits .apparels etc • Therefore the marketers divide the markets into segments – and decides that which presents the greatest oppurtunity – Target markets • For each of these target segments.

Volvo develops its car for buyers to whom safety is a major concern – hence it positions itself as “safest car a customer can buy” • Mahindra launched Scorpio which is a SUV (sports utility vehicle) – designed for people who prefer a sturdy vehicle that offers luxury and comfort – positions as a vehicle that offers the luxury of a car and the thrill of a SUV • Companies perform best when they choose their target market carefully and prepare tailored marketing programs Contd…. .• For instance.

Marketing Channels • To reach Target market – Three kinds of marketing channels are used – • Communication Channel • Distribution Channel • Service Channel .

Contd… • Communication Channel – Deliver and receive messages from target buyers – news papers. fliers etc • Firms communicate through the look of their retail stores. etc just as we communicate through our facial expressions... posters. TV. blogs. magazines.). • Marketers are increasingly adding dialogue channels like e-mails. social networking sites (facebook. toll free nos to the traditional monologue channels like advertisements . appearance of their websites. mails. appearance. billboards. radio.

banks and insurance companies that facilitate transactions . agents. retailers • Service Channels – include warehouses.sell or deliver the physical product or services to the buyer – distributors.Contd… • Distribution Channels – used to display. transportation companies. wholesalers.

Supply Chain • It is a longer channel stretching from raw materials to components to final products that are carried to end consumers – All products that are manufactured / produced goes through this cycle – leather goods. etc • Companies adopt backward or forward integration in order to capture a higher percentage of supply chain value . automobiles. electronic items.

SISCOL etc or import steel or relace steel with aluminium for certain parts or buy engineered plastics – hence competition for steel companies comes from substitute products .Salem Steel.Competition • What is competition? – includes all the actual and potential rival offerings and substitutes a buyer might consider – Car manufacturer requires steel – he can consider Tata Steel.

The New Marketing Realities • “The market place isn’t what it used to be” • Major societal forces – • 1.Network information technology – information age – more accurate levels of production. more targeted communications and more relevant pricing – unlike in the past .

shipping and communication – made easier for companies to market in other countries and for consumers to buy from other countries • Deregulation – Industries are deregulated to create greater competition and growth opportunities – much of the growth in Indian economy is due to deregulation and liberalization – Airlines. Telephones. petroleum etc • Privatization – Government companies – private ownerships – increase efficiency .Contd… • Globalization – Technological advances in transportation.

home shopping . e commerce on the internet. Nilgiris etc Industry Convergence – companies are recognizing that new opportunities lie at the intersection of two or more industries – like computing and electronics are converging – Dell. Reliance. direct mail firms. HP entering entertainment electronics industry like MP3 players Retail Transformation – Small retailers – succumb to the power of big retailers – Store based retailers face competition from catalog houses.Contd… Heightened Competition – intense comp from domestic and foreign brands – rise in promotion costs – decrease in profit margins – adding wound is – powerful retailers who command limited shelf space also put their own brand – Spencers.

low cost and mass distribution – Markets like China.Earlier • Production Concept – Assumes that customers prefer products that are widely available and inexpensive – achieve high production efficiency. Bangladesh • Product Concept – Consumers favour products that offer the most quality performance – companies focus on making superior products and improving them . India.Company’s marketing philosophy .

Contd… • The Selling Concept – Assume that the firm must take aggressive selling and promotion effort – usually for unsought goods – Eg -???? • Marketing Concept – The job is not to find the right customers for your products but to find the right products for your customers .

Segments the mkt.Maps its customers needs.Not good at finding new opportunities 6. chooses the best segment and develops strong position in each segment 2.Builds partners out of its stakeholders and rewards them 5.• Ten sins of Marketing 1.Product and service policies are deficient 8.ranking and choosing the best ones 6.Not monitoring its competitors 4.Not managed its relationships with its stakeholders 5. Not made use of technology Marketing – Right and Wrong Ten Commandments 1.Builds marketing leadership and team spirits 10.Builds strong brands 9.Knows its competitors and their strengths and weakness 4.Excercises strong control over its product and service mix 8.Does not understand its target customers 3.preferences and behaviour 3. Not well organised to carry on effective and efficient marketing 10.Develops systems for identifying opportunities.Marketing plans and planning process are deficient 7.Constantly adds technology that gives it a competitive advantage .The Co is not market focused and customer driven 2.Manages a marketing planning system 7.Brand building and communication skills are weak 9.perceptions.

• Today's marketers recognize the need to have a more complete and cohesive approach that goes beyond traditional applications of marketing concept – Leading to development of Holistic Marketing Concept – based on the development. processes and activities that recognizes their breadth and interdependencies Holistic Marketing Concept .design and implementation of marketing programs.

. • Four broad components – characterise holistic marketing: • Relationship Marketing • Integrated Marketing • Internal Marketing • Performance Marketing .Contd..

. Marketing Partners.• Relationship Marketing – aims to build mutually satisfying lonfg term relationships with key constituents in order to earn and retain business – 4 key constituents – Customers.focus on their most profitable customers.. products and channels. .trying to build customer's loyalty – leading to customer retention Contd. and Financial Community(Shareholders. Investors etc). Employees.

• Integrated Marketing – Devise marketing activities and fully integrate them – 4Ps of marketing – Product. Price..When co ordinated. Place and Promotion – Two key themes – 1. .synergy Contd.Many marketing activities communicate and deliver value 2. marketing activities maximize their joint effort .

Contd.. all other departments must embrace marketing . customer service. etc) at the second level. • Internal Marketing – Every one in the organisation embraces marketing principles – marketing activities with in the company – as important as marketing activities outside the company – takes place in two levels – All marketing functions must work together(sales force. advertising..

Contd. • Performance Marketing – To assess the returns to tyhe business from marketing activities and programs • Financial Accountability – Justify the investments in marketing in terms of profitability. distributors. customer base.employees.. suppliers etc • Social Responsibility -effects . building brands -direct and indirect value marketing efforts create – vlue comes from intangible assets – brands..

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