CHAPTER 1

Understanding
Marketing in a New
Perspective

© Macmillan Publishers India Ltd. Chapter 1 / Slide 1

 Chapter 1: Understanding Marketing in a New Perspective

At the end of this chapter, you should be able to

appreciate that:

⮚ There is a Need for a New Perspective in Understanding Marketing

⮚ Marketing is now Under Attack

⮚ Many Criticisms are being levelled Against Marketing’s Performance

⮚ Ignoring ‘Value Delivery’ Main Reason Behind Marketing’s Trouble

⮚ Marketing has been Attending More to ‘Downstream’ and Less to

‘Upstream’ Marketing Activities

⮚ Marketing now needs a New Perspective Centred on Value

© Macmillan Publishers India Ltd. Chapter 1 / Slide 2

 Chapter 1: Understanding Marketing in a New Perspective
The Need for a New Perspective in Understanding
Marketing
⮚ Traditionally, texts on Marketing have addressed Marketing through
‘the Customer cum 4P framework’ (Product, Place, Price and
Promotion)

⮚ Discussions were centred on the Customer and the 4P

⮚ In this scheme, the crux of marketing had been denied its due
prominence.

⮚ ‘Value Delivery’ got blurred in the mire of marketing terminologies

and prescriptions.

⮚ The problem was one of Perspective.

⮚ This Course is presenting Marketing in a new Perspective

© Macmillan Publishers India Ltd. Chapter 1 / Slide 3

 Chapter 1: Understanding Marketing in a New Perspective

Marketing Under Attack

▪ In yester years, Marketing enjoyed the pride of place in the world of

business

▪ But in recent times, marketing has been under attack and marketing
men on the firing line

Chart 1.1 Main Criticisms against Marketing’s Performance (Page 3)

© Macmillan Publishers India Ltd. Chapter 1 / Slide 4

 Chapter 1: Understanding Marketing in a New Perspective

Ignoring ‘Value Delivery’ the Main Reason Behind

Marketing’s Trouble

▪ Where did Marketing go wrong?

▪ It is marketing’s failure to recognise ‘value delivery’ as the crux of

marketing that caused the trouble

▪ Marketing men forgot that Value Delivery is the foundation of

customer satisfaction and that it is by sticking to ‘value delivery’ that
marketing can get its practical direction

Exhibit 1.1 GM lands in trouble by ignoring Value Delivery (Page 8-9)

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 Chapter 1: Understanding Marketing in a New Perspective

How Did Marketing Men Happen To Ignore ‘Value

Delivery’?

▪ Excessively Preoccupied with the 4P Framework

▪ 4P framework has been operating at a narrow, tactical level

▪ Marketing men tying up Marketing to mere implementation issues

▪ Attending More to ‘Downstream’ and Less to ‘Upstream’ Marketing Activities

▪ Relying Increasingly on Gimmicks and ‘Quick Fixes’

▪ Clinging Excessively to Segmentation Approach, Neglecting the Individual

Needs of the Customer

▪ Making Exaggerated Product Promises

© Macmillan Publishers India Ltd. Chapter 1 / Slide 6

 Chapter 1: Understanding Marketing in a New Perspective

Marketing in a New Perspective

▪ A Paradigm Shift in Understanding Marketing has

Become Imperative

▪ This Course Presents Marketing in a New Perspective:

A Perspective Centred on Value

© Macmillan Publishers India Ltd. Chapter 1 / Slide 7