Lecture 1

Coincidence?

Between 1947 and 1990 Between 1991 and 2000

Miss World (1966) Miss Universe (1994, 2000)
Miss World (1994, 1997, 1999, 2000)
1 title in 43 years 6 titles in 10 years!
Marketing is more than what it appears to be!
How marketing came?
Antecedents of marketing
Event
First department store
First newspaper ad
First advertising agency
First brand name product
First packaging
First Marketing research department
Timeline
1650 Mitsui family (Japan)
1657 England for coffee
1869 N W Ayers and Sons
1870 Pear’s soap
1880 laundry soap in England
1911 Curtis publishing company
When did Marketing Start?
“Marketing” did not exist as a term until the early 1900s.

The first Marketing textbooks were published between 1900-1910.

Some Institutional economists started to teach “distribution”, later
added “advertising” and then “promotion” and “pricing”.

The early Marketing books were written by Economists!

Early functions of Marketing Departments

Conducting research Finding leads Prepare brochures and other

promotions
Evolution of marketing
• Production era
• Product era
• Selling era
• Marketing era
• Holistic marketing era
Marketing Positions in current time
• Chief Marketing Officer (CMO)
• Brand Managers
• Category Managers
• Market Segment Manager
• Distribution Channel Manager
• Pricing Manager
• Marketing Communication Manager
• Database Managers
• Direct Marketers
• Internet and Social Media Managers
What does CEOs think of Marketing

• 1P CEO
• 4P CEO
• STP CEO
• ME CEO
Functions of CMO
• Represent the voice of the customer
• Monitor the evolving business landscape and gather customer insight
• Be the steward of corporate brand
• Upgrade marketing technology and skills in the company
• Bring insight into the corporate portfolio and synergies
• Measure and account for marketing financial performance.
Areas of Marketing
• Commercial marketing
• Place marketing
• Person marketing
• Social marketing
• Political marketing
• Fundraising
Have you
personally
done any
marketing?
Have you personally done any marketing?
• Did you compete for a job where there were other candidates?
• Did you compete for a desirable apartment where there were other
applicants?
• Did you apply to a bank for a large loan and need to establish your
reliability and need?
• Did you ever propose a new project or product to your senior
management that you hoped they would accept?
• Did you propose a girl/boy?
What people don’t like about Marketing
• Intrusion and interruption
• Exaggeration
• Deceptive practices
• Hard selling or pressure selling
• Buy now; pay later
• Planned obsolescence
• Too much choice
• Marketers get consumers to want and spend more than they can afford.
• Marketers are skilled in creating brand differentiation which should
not exist
• Marketers want to produce and sell more goods without concerning
about resources and environmental costs
• Marketers have not paid enough attention to product safety
• Marketers want to sell to public whether it is good or not to them
• Marketing promotes a materialistic mindset
Contrary views
• Marketing creates job
• Marketing has raised the standard of living
• People don’t naturally buy new things
• Social Marketing has improved many things including Polio, AIDS
Name a company that you will dearly miss if it disappears?
Characteristics of companies that will be
missed
MARKET-ING
Constituents of market
• More than one party with unmet need
• Exchange
• Potential benefit
• Potential sacrifice
• Value
Maslow’s hierarchy of need
What should marketers sell to satisfy your
need?
• Physiological need
• Safety need
• Social need
• Esteem need
• Self actualisation need
Five types of need
1. Stated needs (The customer wants an inexpensive car.)
2. Real needs (The customer wants a car whose operating cost, not
initial price, is low.)
3. Unstated needs (The customer expects good service from the
dealer.)
4. Delight needs (The customer would like the dealer to include an
onboard GPS navigation system.)
5. Secret needs (The customer wants friends to see him or her as a
savvy consumer.)
Confused?
Want
You want to sell Rolex watches at NITD. You have done a survey and
came to know that 90 percent of students want to buy your watch.

You want to sell health insurance to NITD students. You have priced
your product very low so that students can afford it. Your survey reveals
that only 5 percent NITD students have health insurance.
Demand

Desire (want)+Ability to pay+Willingness to pay

Marketing
Do marketers create need?
Marketers do not create needs: Needs pre-exist marketers. Marketers,
along with other societal factors, influence wants. They might promote
the idea that a Mercedes would satisfy a person’s need for social status.
They do not, however, create the need for social status.
Responsibilities of a marketer
• Understand the need and want of target audience
• Develop the features and benefits for the products and services that
customer desire
• Charge a price that customers are willing and able to pay
• Communicate to customers that product or service exist
• Make the product available at locations where customers are likely to buy it
• Ensure that the product is superior to similar offerings available from
competitors
• Earn a profit for organisation
 Communicate Maintain
Explore Value Create Value Deliver Value
Value Value
Potential benefits and Sacrifices
Customer Perceived Value
Parties involved?
Basic exchange?
Potential benefit to customer?
Potential sacrifice to consumer?
Value created?
Parties involved?
Exchange?
Potential benefit?
Potential sacrifice?
Value created?
Parties involved?
Basic exchange?
Potential benefits to the voter?
Potential sacrifice?
Value created?
Parties involved?
Basic exchange?
Potential benefits to customer?
Potential sacrifices?
Value created?