Dr.

Parveen Kaur
Nagpal

Introduction to
Marketing
 Dr. Parveen Kaur
Marketing Nagpal

Marketing deals with identifying and meeting human and social needs.
One of the shortest definitions of marketing is “meeting needs
profitably.”

Social definition of marketing is “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 of value
with others”
Marketing is the process of planning and executing the conception,
pricing, promotion and distribution of ideas, goods and services to
create exchange and satisfy individual and organizational objectives.
(American Marketing Association)
 Dr. Parveen Kaur
Marketing Nagpal

The aim of marketing is to know and understand the customer so well

that the product or service fits him and sells itself.
Ideally, marketing should result in a customer who is ready to buy.
Marketing is carried out by a marketer. Marketer is someone who seeks
a response—attention, a purchase, a vote, a donation—from another
party, called the prospect.
Just as production and logistics professionals are responsible for supply
management, marketers are responsible for demand management.
They seek to influence the level, timing, and composition of demand to
meet the organization’s objectives.
 Dr. Parveen Kaur
Marketing Nagpal

Eight demand states are possible:

1. Negative demand—Consumers dislike the product and may even pay
to avoid it.
2. Nonexistent demand—Consumers may be unaware of or
uninterested in the product.
3. Latent demand—Consumers may share a strong need that cannot be
satisfied by an existing product.
4. Declining demand—Consumers begin to buy the product less
frequently or not at all.
5. Irregular demand—Consumer purchases vary on a seasonal, monthly,
weekly, daily, or even hourly basis.
 Dr. Parveen Kaur
Marketing Nagpal

6. Full demand—Consumers are adequately buying all products put into

the marketplace.
7. Overfull demand—More consumers would like to buy the product
than can be satisfied.
8. Unwholesome demand—Consumers may be attracted to products
that have undesirable social consequences.
In each case, marketers must identify the underlying cause(s) of the
demand state and determine a plan of action to shift demand to a more
desired state.
 Dr. Parveen Kaur
Marketing System Nagpal
 Dr. Parveen Kaur
Importance of Marketing Nagpal

Marketing has helped introduce and gain acceptance of new products

that have eased or enriched people’s lives.
It can inspire enhancements in existing products as marketers innovate
to improve their position in the marketplace.
Successful marketing builds demand for products and services, which, in
turn, creates jobs.
Successful marketing also allows firms to more fully engage in socially
responsible activities.
Marketing helps in building strong brands and a loyal customer base,
intangible assets that contribute heavily to the value of a firm.
 Dr. Parveen Kaur
Case-let: Dominos Nagpal

When two employees in Conover, North Carolina, posted a YouTube

video showing themselves preparing sandwiches while putting cheese
up their noses and violating other health-code standards, Domino’s
learned an important lesson about PR and brand communications in a
modern era. Once it found the employees—who claimed the video was
just a gag and the sandwiches were never delivered—the company fired
them. In just a few days, however, there had been more than a million
downloads of the video and a wave of negative publicity.
When research showed that perception of quality for the brand had
turned from positive to negative in that short time, the firm aggressively
took action through social media such as Twitter, YouTube, and others.
 Dr. Parveen Kaur
What all can be Marketed? Nagpal

◎ Goods
◎ Services
◎ Events
◎ Experiences
◎ Information
◎ Persons
◎ Places
◎ Properties
◎ Organizations
◎ Ideas
 Dr. Parveen Kaur
Scope of Marketing Nagpal

Marketing
Research
Product
Test
Planning &
Marketing
Development

After Sale
Pricing
Service
Scope of
Marketing

Branding
& Advertising
Labeling

Packaging Sales
Promotion
 Dr. Parveen Kaur
Core Marketing Concepts Nagpal

Needs,
Wants &
Demand Target
Market,
Competit Positioning
ion &
Segmentati
on

Core
Marketing
Concepts Offering
Supply
s&
Chain
Brands

Marketin
Value &
g
Offering
Channel
s
s
 Dr. Parveen Kaur
Company Orientation Towards Market Place Nagpal

Exchange

Holistic Production

Societal Product

Marketing Selling
 Dr. Parveen Kaur
Holistic Marketing Dimensions Nagpal
 Dr. Parveen Kaur
Holistic Marketing Dimensions Nagpal

 Holistic Marketing Concept - Based on the development, design, and

implementation of marketing programs, processes, and activities
that recognize their breadth and interdependencies.

 Holistic marketers address three key management questions:

 Value exploration—How a company identifies new value

opportunities
 Value creation—How a company efficiently creates more promising
new value offerings
 Value delivery—How a company uses its capabilities and
infrastructure to deliver the new value offerings more efficiently.
 Dr. Parveen Kaur
Holistic Marketing Dimensions Nagpal

 Relationship Marketing aims to build mutually satisfying long-term

relationships with key constituents in order to earn and retain their
business. Four key constituents for relationship marketing are:
 Customers
 Employees
 Marketing partners (channels, suppliers, distributors, dealers,
agencies)
 Members of the financial community (shareholders, investors,
analysts).
 Dr. Parveen Kaur
Holistic Marketing Dimensions Nagpal

 Integrated Marketing - Marketer devises marketing activities and

assembles marketing programs to create, communicate, and deliver
value for consumers such that “the whole is greater than the sum of
its parts.”
 Two key themes are:
 any different marketing activities can create, communicate, and
deliver value
 Marketers should design and implement any one marketing activity
with all other activities in mind. E.g. when a hospital buys an MRI
from General Electric’s Medical Systems division, for instance, it
expects good installation, maintenance, and training services to go
with the purchase.
 Dr. Parveen Kaur
Holistic Marketing Dimensions Nagpal

 Internal Marketing - Task of hiring, training, and motivating able

employees who want to serve customers well. It ensures that
everyone in the organization embraces appropriate marketing
principles, especially senior management.
 Performance Marketing - Requires understanding the financial and
nonfinancial returns to business and society from marketing
activities and programs. Top marketers are increasingly going beyond
sales revenue to examine the marketing scorecard and interpret
what is happening to market share, customer loss rate, customer
satisfaction, product quality, and other measures. They are also
considering the legal, ethical, social, and environmental effects of
marketing activities and programs.
 Dr. Parveen Kaur
Market Mix Nagpal

McCarthy classified various marketing activities into marketing-mix

tools of four broad kinds, which he called the four Ps of marketing:
 Product
 Price
 Place
 Promotion
 Dr. Parveen Kaur
Market Mix Nagpal

Given the breadth, complexity, and richness of marketing, these four Ps

are not complete but updated to encompasses modern marketing
realities:
 People
 Processes
 Programs
 Performance
 Dr. Parveen Kaur
Market Environment Nagpal

“A company’s marketing environment consists of the actors and forces

outside of marketing that affect marketing management ability to build
and maintain successful relationships with target customers” - Philip
Kotler
The marketing activities of the business are affected by several internal
and external factors.
While some of the factors are in the control of the business, most of
these are not and the business has to adapt itself to it
The marketing environment of a business consists of internal and
external components.
 Dr. Parveen Kaur
Market Environment Nagpal

The internal environment of the business includes all the forces and
factors inside the organization which affect its marketing operations.
These components can be grouped under the Five M’s of the business:
• Men
• Money
• Machinery
• Materials
• Markets
 Dr. Parveen Kaur
Market Environment Nagpal

The external environment is further divided into two

components:
• Micro
• Macro
Micro Environment
The micro-component of the external environment is also
known as the task environment. Includes:
◎ Suppliers - all the parties which provide all the resources
◎ Market Intermediaries - parties involved in distributing the
product or service of the organization
 Dr. Parveen Kaur
Market Environment Nagpal

◎ Partners - separate entities like advertising agencies, market

research organizations, banks, etc. which conduct business with
the organization.
◎ Customers - comprise of the target group of the organization.
◎ Competitors - players in the same market who target similar
customers
◎ Public - made up of any other group that has an actual or
potential interest or affects the company’s ability to serve its
customers
 Dr. Parveen Kaur
Market Environment Nagpal

Macro Environment
The macro or the broad environment includes larger societal
forces which affect society as a whole.
The broad environment is made up of six components:
◎ Demographic - people who constitute the market. It is
characterized as the factual investigation and segregation of
the population according to their size, location, age, gender,
occupation etc.
◎ Economic - constitutes factors which influence customers’
purchasing power and spending patterns. These factors include
the GDP, GNP, interest rates, inflation, income distribution etc.
 Dr. Parveen Kaur
Market Environment Nagpal

◎ Physical - includes the natural environment in which the

business operates. This includes the climatic conditions,
environmental change, accessibility to water and raw materials,
natural disasters, pollution etc.
◎ Technological - constitutes innovation, research and
development in technology, technological alternatives etc.
◎ Political & Legal -  includes laws and government’s policies
prevailing in the country. It also includes other pressure groups
and agencies which influence or limit the working of the
industry and/or the business in the society.
◎ Socio-cultural - is made up of the lifestyle, values, culture,
prejudice and beliefs of the people.
 Dr. Parveen Kaur
New Realities of Marketing Nagpal
 Dr. Parveen Kaur
New Realities of Marketing Nagpal

◎ Network Information Technology

◎ Globalization, Deregulation and Privatization

◎ Heightened Competition

◎ Mobile Marketing
◎ Retail Transformation
◎ Disintermediation (E.g. Amazon.com)

◎ Consumer Information, Participation and Resistance

 Dr. Parveen Kaur
New Realities of Marketing Nagpal

◎ Industry Convergence
◎ Consumer Buying Power
◎ Social Media Marketing
 Dr. Parveen Kaur
Value of Marketing Nagpal

Marketing has helped in introduction of innovative products that

gained acceptance as they have eased or enriched people’s lives.
Marketers were able to interact with people and find out their
unmet needs and convey that information to new product
developers and designers.
It also facilitated enhancements in existing products as firms
(marketers) innovate to improve their position in the marketplace.
Successful marketing not only build demand for products and
services but also allow firms to fully engage in socially responsible
activities.
 Dr. Parveen Kaur
Creating Value for Customer Nagpal
Creating customer value is a distinct source of competitive
advantage
Customer value can be defined as an incremental benefit derived
by the customer from consuming a product for paying its cost.
The term value signifies all the benefits being offered to the
customer by the product.
Customer Value = Benefits (sum of both tangible and intangible
benefits) - Cost.
Customer value is dependent upon three factors – Quality, Price,
and Service. The value of the product tends to increase with its
service and quality as its benefits increase, whereas, the value of a
product reduces with an increase in its price.
 Dr. Parveen Kaur
References Nagpal

1. Marketing Management: The Millennium Edition, Kotler. P, Prentice

Hall
2. “The Marketing Environment” by John A. Dawson
3. Marketing Management: An Asian Perspective - 5th Edition by Philip
Kotler, Kevin Lane Keller, Ang Swee Hoon, Leong Siew Meng, Tan
Chin Tiong
4. Ramaswamy V.S. and Namakumari S. Marketing Management –
Planning, Implementation and Control, 5th edition, Macmillan
 Dr. Parveen Kaur
Nagpal

THANK YOU

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