Module 1

Rethinking Marketing

Marketing Functional and Strategic Concept

 INTRODUCTION – STRATEGIC MARKETING

MARKETING – FUNCTIONAL DEFINITION

“Marketing is the management process for identifying, anticipating

& satisfying customer requirements profitably”.

“Marketing is the process of planning & executing the conception,

promotion and distribution of ideas, goods & services to create
that satisfy individual & organization’s objectives”.

 Marketing as a functional process.

 Marketing is increasingly being conceptualized as an organizational
philosophy or an approach to doing business.
 INTRODUCTION – TO STRATEGIC MARKETING

MARKETING – FUNCTIONAL DEFINITION

The marketing concept is managerial orientation
which recognize that success primarily is dependent
upon identifying changing customer need and
developing products and developing products and
services which match these better than competition

To look at customer needs from competition’s eye!

 INTRODUCTION TO STRATEGIC MARKETING

MARKETING IN STRATEGIC TERMS

• Marketing is a management process whereby the
resources of the whole organization are utilized to
satisfy the needs of selected customer groups in order
to achieve the objectives of both parties. Marketing,
then is first and foremost an attitude of mind rather
than a series of functional activities.
• Marketing is so basic that it cannot be considered a
separate function on a par with others such as
manufacturing or personnel. It is first a central
dimension of the entire business. It is the whole
business seen from the point of view of its final result.
That is, from the customer’s point of view.
 STRATEGIC MARKETING

CONCEPT OF MARKETING:

• Past Three Decades, the Concept of Marketing has

changed dramatically.
• Evolved from:-
 Focus on Product
 Making a “Better” Product
 Where “Better” was internal standards and values.
 Objective was Profit and the means to achieving the
objective was selling or persuading the potential
customer.
 STRATEGIC MARKETING

NEW CONCEPT OF MARKETING (1960)

• Shift of focus from product to customer

• Objective was still profit but means of
achieving objective expanded to include
entire Marketing Mix (Four Ps)
 STRATEGIC MARKETING
STRATEGIC CONCEPT OF MARKETING (1990s)
• New concept of Marketing was outdated
• Shift from customer or product to the customer in the context of
broader external environment.
• Marketers must know the customer in a context including competition,
govt. rules & regulation, broader economy, evolution of market etc.
• Objectives from profits to stakeholders benefit i.e.
 Employees & Management
 Customers
 Society & Govt.
• Profits are reward for Performance.
• Employee commitment to continuing innovation and quality.
• Means of strategic marketing is strategic management.
 STRATEGIC MARKETING
STRATEGIC CONCEPT OF MARKETING (1990s)
• Senior Management integrates marketing with other
management functions.
• Profits are still a critical objective and measure of
marketing success but it is not an end in itself.
• Aim of marketing is to create value for stakeholders (Key
being customer)
• Shift from microeconomics maximization paradigm to a
focus of Managing Strategic Partnership and Positioning
the firm between vendors and customers in the value
chain (Boundary less Marketing)
• 5 Ps of Marketing – Product, Price, Place, Promotion,
Probe
 STRATEGIC MARKETING
ESSENCE OF MARKETING – THE THREE
PRINCIPLES OF MARKETING:
1. Customer Value & Value Equation
 Create customer value greater than competition
 V = B/P, V = Values, B = Perceived Benefits / Perceived
Costs
P = Price

2. Competitive & Differential Advantage

Total Offer vis-a-vis Competition

3. Focus
Focusing or customer needs.