Marketing Definition

• Marketing is about identifying and meeting human and

social needs.
• It can also be described as
“Meeting needs profitably”

• According to Philip Kotler “ The science and art of exploring,

creating and delivering value to satisfy the needs of a target
market at a profit.”
According to American Marketing Association
“Marketing is the activity, set of institutions, and
processes for creating, communicating,
delivering, and exchanging offerings that have
value for customers, clients, partners, and
society at large”.
 Scope of Marketing
The scope of marketing deals with the question, ‘what is marketed?’
According to Kotler, marketing people are involved with ten types of
entities.
• Goods
• Services
• Events
• Experiences
• Persons
• Place
• Properties(Real properties & financial properties)
• Organizations
• Information
• Ideas: “ A mind is a terrible thing to waste”
 Scope of Marketing
Who markets?
Marketers and Prospects:
• A marketer is someone who seeks a response—
attention, a purchase, a vote, a donation—from
another party, called the prospect.

Marketers are skilled in identifying needs and

stimulating demand for their products. They also seek
to influence the level, timing and composition of
needs and demand to meet the organization’s
objectives.
 Core Marketing Concept
Need, Wants & Demands
• Needs are basic human requirements.
• These needs become wants when directed to specific objects that
might satisfy the need.

• An individual might be needing food but might want to eat specific

food to fulfill the need for food.
• Demand can be defined as eating that specific food in a specific
place only.
Few customers have needs that they are not fully conscious. those are:
• Stated Needs
• Real needs
• Unstated needs
• Delight needs
• Secret Needs
 Needs
The “Five Types of Needs” that marketers should know in order
to distinguish the type of customer’s needs are as following:
 Demands
• Negative demand—Consumers dislike the product and may even pay to avoid it.

• Non-existent demand—Consumers may be unaware of or uninterested in the

product.
• Latent demand—Consumers may share a strong need that cannot be satisfied by
an existing product.
• Declining demand—Consumers begin to buy the product less frequently or not
at all.

• Irregular demand—Consumer purchases vary on a seasonal, monthly, weekly

etc.

• Full demand—Consumers are adequately buying all products put into the
marketplace.

• Overfull demand—More consumers would like to buy the product than can be
satisfied. (Indian Railways)

• Unwholesome demand—Consumers may be attracted to products that have

undesirable social consequences.
 MARKETPLACES, MARKETSPACES,
AND METAMARKETS
• The marketplace is physical, such as a store you shop in;
• The market space is digital, as when you shop on the Internet.

• Metamarket to describe a cluster of complementary products

and services closely related in the minds of consumers, but
spread across a diverse set of industries.
• It can also be said that the combination of various entities within
the same industry can be known as a meta market.
 Key Customer’s Market
• Consumer Markets: Companies selling mass consumer goods and
services such as juices, cosmetics, apparel, groceries, etc.

• Business Markets: Companies selling business goods and services

often face well-informed professional buyers skilled at evaluating
competitive offerings.
• We can also say that the business market is where one business
sells goods or services to other businesses; it is either to resell or
reuse those products or services.

• Global Consumer Markets: Companies in the global marketplace

navigate cultural, language, legal and political differences while
deciding which country to enter.

• Non-profit and Government Market: Universities, charitable

organization
 Marketing Philosophies/Orientation

• The Production Concept

• The Product Concept
• The Selling Concept
• The Marketing Concept
• The Holistic Marketing Concept
 Production Concept
• The idea of production concept – “Consumers
will favor products that are available and
highly affordable”. This concept is one of the
oldest Marketing management orientations
that guide sellers.

• Most times; the production concept can lead

to Marketing Myopia (a short sighted and
inward approach).
 Product Concept

• The product concept holds that the consumers

will favor products that offer the most in
quality, performance and innovative features.

• Companies focusing on this concept

concentrate on making superior products and
improving them over time
 Selling Concept

• The selling concept holds the idea- “consumers will not

buy enough of the firm’s products unless it undertakes
a large-scale selling and promotion effort”

• The aim is to sell what the company makes rather than

making what the market wants

• Typically the selling concept is practiced with unsought

goods. Unsought goods are that buyers do not
normally think of buying, such as insurance
 Marketing Concept

• “achieving organizational goals depends on

knowing the needs and wants of target markets
and delivering the desired satisfactions better
than competitors do”.

• “Customer First” approach.

• The job is not to find the right customers for your

product but to find the right products for your
customers.
Difference between Selling Concept
and Marketing Concept
No. The Selling Concept The Marketing Concept
1 undertakes a large-scale selling and undertakes activities such as; market
promotion effort research,
2 The Selling Concept is suitable with The Marketing Concept is suitable for almost
unsought goods any type of product and market.

3 Focus of the selling concept starts at the Focus of the marketing concept starts at
production level. understanding the market.
4 Any company following selling concept Companies that are following the marketing
undertakes a high-risk concept requires to bare less risk and
uncertainty.
5 The Selling Concept assumes – Instead of making an assumption, The
“customers who are coaxed into buying marketing concept finds out what really the
the product will like it. Or, if they don’t consumer requires and acts accordingly to
like it, they will possibly forget their them.
disappointment and buy it again later.”

6 The Selling Concept makes poor Marketing concept works on facts gathered
assumptions. by its “market and customer first” approach.
Holistic Marketing
Marketing dept., Senior Management, Other department

Communication, goods & services, Channel, price

Internal Integrated
Marketing Marketing

Holistic
Marketing

Socially
Responsible Relationship
Performance Marketing
Marketing
Customers, Employees, Partners, Financial Community
Sales Revenue, Brands & Customer Equity, Ethics
,Environment, Community
 What is a 'Marketing Mix'

• A marketing mix usually refers to E. Jerome McCarthy's(1960)

4-P classification for developing an effective marketing
strategy.
• The four Ps are product, price, placement (distribution), and
promotion

• An additional three elements that help us meet the

challenges of marketing services, People, Process and Physical
Evidence (Booms & Bitner, 1982).

• Overall, it involves 7P’s

 Marketing
Mix

Product
Product Promotion
Price Place Sales
variety List Price Channels Promotion
Quality Discounts Coverage Advertising
Design Allowances Assortments Public relation
Features Payment Locations Direct
Brand Name Period Inventory Marketing
Sizes Credit terms Transport Sponsorship
Warranties Publicity
Returns
 Customer Value
There are various interpretations of what is meant
by customer value.

The term may mean low price, receiving what is

desired, receiving quality for what is paid, or receiving
something in return for what is given (Zeithaml, 1988).
Value delivery Process and Traditional
Model
Value Delivery Process
 Consumer Behavior
• The term consumer behavior is defined as the
behavior that consumer displays in:
• Searching for
• Purchasing
• Using
• Evaluating and
• Disposing of goods and services
that they expect will satisfy their needs.
 Consumer Behavior
• Consumer behavior focuses on how individuals make
decisions to spend their available resources (time, money,
effort) on consumption-related items that includes.
• What they buy,
• Why they buy,
• When they buy it,
• Where they buy it,
• How often they buy it,
• How often they use it,
• How they evaluate it after the purchase and the impact of
such evaluations on future purchases,
• and How they dispose of it.
Overall Model of Consumer Behavior
 External/Social Influences
• Culture
• Sub culture
• Demographics
• Reference Group
• Social Class
• Family
• Opinion Leaders
• Marketing Activities/Campaigns/Advertisements
 Psychological Influences/Internal
Factors
• Personality
• Attitude
• Perception
• Learning
• Motivation
 Situational Influences
• Physical Surroundings: Geographical and
institutional location, furnishings, sounds,
lighting, aromas, weather, signs, and
observable contours as well as products
• Social Surroundings
• Time
• Purchase Reason
• Buyer’s Mood and Conditions
CONSUMER BUYING BEHAVIOUR
 Definition
“Buying Behavior is the decision process and act of
people involved in buying and using goods and
services”

According to Engel, Blackwell, and Mansard,

“Consumer buying behavior refers to the study of
customers and how they behave while deciding to
buy a product that satisfies their needs”
 Stages of the Consumer Buying
Decision Process
• Problem Recognition(awareness of need)
• Information search(Internal & External)
• Evaluation of Alternatives
• Purchase decision
• Purchase
• Post-Purchase Evaluation
 Stages of the Consumer Buying
Decision Process
• Problem Recognition - The first step is problem recognition. During
this step, the consumer realizes that she has an unfulfilled need or
want. Let's use the example of a consumer who has just been
informed by her mechanic that fixing her car will cost more than it's
worth. Our consumer realizes that she now has a transportation
problem and wants to fulfill that need with the purchase of a car.

• Information Search - The next step is to gather information relevant

to what you need to solve the problem. In our example, our
consumer may engage in research on the Internet to determine the
types of vehicles available and their respective features.

• Evaluation of Alternatives - After information is gathered, it is

evaluated against a consumer's needs, wants, preferences, and
financial resources available for purchase. In our example, our
consumer has decided to narrow her choices down to three cars
based upon price, comfort, and fuel efficiency.
• Purchase Decision - At this stage, the consumer will make a
purchasing decision. The ultimate decision may be based
on factors such as price or availability. For example, our
consumer has decided to purchase a particular model of
car because its price was the best she could negotiate and
the car was available immediately.

• Purchase- At this stage, the consumers will make a

purchase

• Post-Purchase Evaluation - At this stage, the consumers will

decide whether the purchase actually satisfies their needs
and wants. Is a car purchaser happy with her/his purchase?
If he/she is not satisfied, why isn't? This step is crucial for
repeat sales, a happy customer will buy again.
Types of Buying Behavior/Decision
• Complex Buying Behavior
• Dissonance Reducing Buying Behavior
• Habitual Buying Behavior
• Variety Seeking Buying Behavior
Types
 Complex Buying Behavior

• In complex buying behavior consumer shows high level of

involvement while purchase and observe considerable
differences among brands.

• Complex buying behavior is encountered particularly when

consumers are buying an expensive product. In this infrequent
transaction, consumers are highly involved in the purchase
decision.
Dissonance Reducing Buying Behavior

• In dissonance reducing buying behavior consumer

involvement is very high due to high price and infrequent
purchase with less significant differences among brands.

• Dissonance-Reducing Buying is a buying situation in which the

customer is highly involved in the decision process and is
unable to differentiate between different options and brands
available in the market to fulfill the need.

• Biggest disadvantage is the possibility of post purchase

dissonance
• Ex: Tiles , furniture
 Habitual Buying Behavior

• In Habitual buying behavior consumer involvement is low as

well as low is no significant difference among brands .
• The good example will be everyday use product such as a
match box, Salt or general grocery items.
 Variety Seeking Buying Behavior

• In variety seeking buying behavior situation consumer involvement

is very low but there are significance differences among brands.

• Here consumers often do a lot of brand switching. The cost of

switching products is low, and hence consumers might want to try
out new products just out of curiosity or boredom.

• Consumers here, generally buy different products not because of

dissatisfaction but mainly with an urge to seek variety.

• Low brand Loyalty

• High Possibility of brand switching
Example
Buying Motives
 Product Buying Motives
• Product buying motives refer to those influences and reasons,
which prompt (i.e. induce) a buyer to choose a particular
product in preference to other products.

• They include the physical attraction of the product (i.e. the

design, shape, dimension, size, color, package, performance,
price etc. of the product) and emotional attachment with a
particular place.
Emotional Product Buying Motives
• When a buyer decides to purchase a product
without thinking over the matter logically and
carefully
• Affection
Socio-Psychological:
• Pride
• Status
• Prestige
• Social acceptance
 Rational Product Buying Motives:
• Safety or Security
• Economy
• Suitability
• Utilities
• Convenience
Operational:
• Functionality
• Performance
 Patronage Buying Motives

• (The impulses , desires and considerations

that make buy it from a particular firm/ shop.)

• Examples :Particular Place, Special Discount,

Present Price, Decoration, Behavior etc.
Emotional Patronage buying motives:
• When a consumer patronages a particular retailer
or outlet without any reasoning then he is said to
be influenced by emotional patronage buying
motives. Those motives include
• Appearance of the store
• Display of goods inside the store
• Recommendations from Influencers
• Habits
• Previous association with same shop/retailer
Rational Patronage buying motives:
• When a consumer patronages a particular retailer by
considering the possible benefits through logical
reasoning then he is said to be influenced by rational
buying motives. Those motives include
• Convenience
• Low price offered at the shop
• Availability of credit facilities
• Sale person efficiency
• Availability of wide options
• Reputation of the shop
• Previous experience in dealing with same shop/retailer
 Buying Habits
• How does he/she buy?
• When does she/he buy?
• Where does she/he buy?
• Why does she/he buy the way she/he buys?
 Buying Habits
Buying habits are defined as per the type of goods
• Convenience Goods: Convenience goods are items
consumers buy often and easily without putting much thought into
them. These include most grocery items
(Inexpensive and frequently purchased goods)

• Shopping Goods: mean those goods that the consumer, in

the process of selection and purchase, characteristically compares
on such bases as suitability, quality, performance, price, design and
style.

• Specialty Goods: The specialty goods incur special purchasing

efforts and the items posses some special features. The buyers are
willing to spend a lot of time & money to buy them in contrast with
the shopping goods
Comparison of Different Buying Habits