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Marketing (BA ZC411 / MBA ZC411)

BITS Pilani Dr. Surabhi Koul, Department of Management, BITS Pilani.


Pilani|Dubai|Goa|Hyderabad
BITS Pilani
Pilani|Dubai|Goa|Hyderabad

Understanding Marketing Management


Is Marketing Just Selling ?

In the selling concept, the idea was to take a product that already
existed and figure out how best to sell it. This meant that the firm's
only real goal was to persuade customers to buy whether the
product really fit their needs or not.

In the marketing concept, this is reversed. The firm tries to find out
what customers wants and then goes out and attempts to provide a
product that will fill the need.
Example: iPad tablet from Apple.

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What is Marketing?

In simple words Marketing means Meeting customer needs


Profitably.

According to AMA, 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.
A social definition of Marketing:
Marketing is a societal process by which individual and groups obtain what
they need and want through creating, offering and freely exchanging
products and services of value with each other.

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What is Marketed?

Goods Services

Ideas Events

What is
Information Marketed? Experiences

Organizations Persons

Properties Places

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Core Marketing Concepts

1. NEEDS, WANTS and DEMANDS


Needs are the basic human requirements and they become Wants when directed
to specific objects to satisfy the needs.
Example: Food is a need but when you want a double cheese pizza, it becomes
your want.
Five types of needs:
a) Stated Needs
b) Real Needs
c) Unstated Needs
d) Delight Needs
e) Secret needs
Demands are wants for specific products backed up by an ability to pay.
Example: Many people want a Mercedes; but only a few can buy it.
So companies must measure how many want their product and how many can
actually pay for it.

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II. TARGET MARKETS, POSITIONING AND SEGMENTATION

Not every one likes the same type of product, So marketers have to
identify distinct segments of buyers by identifying demographic,
psychographic and behavioral differences between.
Then companies then need to decide their product offerings based
on the segment of target audience identified. These product
offerings need to be positioned (through a key delivery) in the minds
of the targeted customers.
Eg: Volvo is for those who want safety, so they position themselves
as the most safe care.

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III. BRANDS:

A brand is an offering from a company. A brand carries many


associations in peoples mind that build a brand image.
For example, Apple brand is associated with innovation, creativity,
status etc.

IV. MARKETING CHANNELS:


To reach the targeted customer base, marketers use three channels
1. Communication Channel
2. Distribution Channel
3. Service Channel.

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V. CUSTOMER VALUE, SATISFACTION AND DELIGHT

The buyer chooses those offerings out of all which he thinks would
deliver the most value (Sum of tangible and intangible benefits).
Customer value is usually a combination of quality, service and price
and is called a Customer Value Triad.
Customer satisfaction reflects a persons judgement of a products
perceived performance in a relationship to expectations.

If Product Performance = Expectation = Satisfied Customer


If Product Performance< Expectation= Dissatisfied Customer
If Product Performance > Expectation= Customer Delight

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VI. MARKETING ENVIRONMENT

Marketing environment consists of Task environment and Broad environment.

1.Task Environment includes the actors involved in producing, distributing and


promoting the offerings.
Eg: Company, suppliers, distributors, dealers and target customers.

2. Broad Environment includes Demographic environment, Economic


environment, Socio-cultural environment, Natural environment, Technological
environment and Political Legal environment.

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The New Marketing Realities

1. TECHNOLOGY:

More than 500 million mobile phone users.


More than 100 million online shoppers.
50 million active FB users (Highest across the globe)
The new idea of Digital information sharing has changed the way
marketers present their offerings.
Technology has affected the traditional marketing activities.

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2. GLOBALISATION:

Globalization is a process of interaction and integration among the


people, companies, and governments of different nations, a process
driven by international trade and investment and aided
by information technology.
Technology has made the world a smaller place. We are now more
connected to the rest of the world.
This has changed the way companies work. The innovation and
product development methods have changed. Companies take ideas
from one country and implement them to another.

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3. SOCIAL RESPONSIBILITY:

Social issues like pollution, poverty, water shortages, climate change


etc. demand our attention. So, private sector is taking some
responsibility for improving these conditions and firms all over the
world have elevated the role of corporate social responsibility.
Because marketings effects extend to the society as a whole,
marketers must consider the ethical, environmental, legal, social
contexts of their activities.
Some companies like The Body Shop differentiate themselves from
their competitors in terms of social responsibility.

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Concept of Marketing 3.0

Customers want marketers to treat them as a whole and


acknowledge that their needs extend beyond pure consumerism.
Successful marketing is distinguished by its human and
emotional elements. The three central trends of Marketing 3.0
concept are increased consumer participation, collaborative
marketing, globalisation and rise of creative society.

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Company orientation towards the marketplace
1. Production Concept:
It says, consumers prefer products that are widely available and are
inexpensive.
Managers in such organizations focus on achieving high production
efficiency, low costs and mass distribution.
Eg: Companies in China like Haier, have taken advantage of countrys
huge and inexpensive labor pool to dominate the market.
2. The Product Concept:
It says, consumers favor products that are innovative, have best
quality and give best performance.
But many companies have failed by just believing that giving an
innovative or quality product will attract audience.
A new improved product will not necessarily be successful unless it
is priced, distributed, advertised and sold properly.
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3. The Selling Concept:
It says, consumers and businesses, if left alone, wont
buy enough of the organizations products.
It is practiced normally for goods which buys dont think
of buying like Insurance.

4. The Marketing Concept:


It is a consumer centric concept.
It focuses not only to find right customers but also on
producing right products for these customers.

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Relationship Marketing

Relationship marketing aims to build mutually satisfying long


term relationships with key constituents in order to earn and
retain their business.
Marketers need to create prosperity among all
stakeholders(customers, distributors, suppliers, employees)
and balance the returns.
To develop strong relationships with them requires
understanding their capabilities and resources, needs, goals
and desires.
Customer relationship management and Partner relationship
management both need to be skillfully conducted to generate
maximum returns.

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Integrated Marketing
Integrated marketing occurs when the marketers devise mareting
activities and assembles marketing programs to create,
communicate and deliver value to the consumer such that The
whole is greater than the parts.
Two key themes of Integrated Marketing are:
Many different marketing activities can create , communicate
and deliver value.
Marketers should design and implement any one marketing
activity with all other activities in mind.
Example: A marketer might selectively employ television, radio
and print advertising, public relations and events, so each
contributes on its own and improves the effectiveness of others.

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Internal Marketing

It involves tasks of hiring, training and motivating able


employees who want to serve their customers well.
Internal marketing needs vertical alignment with the senior
management and horizontal alignment with other
departments so that everyone understands, appreciates and
supports the marketing efforts.

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Social Responsible Marketing/ Performance Marketing

It requires understanding the financial and non financial returns to


business and society from marketing activities and programs.
Considering legal, ethical, social and environmental effects of
marketing activities.
Example: The Tata Group conglomerate in India carries out various
CSR projects, most of which are community improvement and
poverty alleviation programs.
Levi Strauss. In recent years, the company has committed to
reducing the amount of water used in production of their jeans, a
product they have been making since 1873. According to Levi
Strausss website, their designing and manufacturing has saved
more than 1 billion litres of water since its inception in 2011.

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Four Ps of Marketing

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Four As of Marketing

Acceptability Affordability

Four As

Awareness Accessibility

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Modern Marketing Management 4 Ps

1. People: It reflects the concept of internal marketing.


2. Processes: Creativity, disciple and structure bought in marketing
management.
3. Programs: It reflects firms consumer driven activities. It includes
traditional 4 ps as well as new marketing activities.
4. Performance: it is the holistic marketing approach where financial and
non financial implications are monitored.

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BITS Pilani, Deemed to be University under Section 3 of UGC Act, 1956