“Markets” and “trade” have a long history.

But marketing did not

exist as a term until the early 1900s.

In the period 1900-1910, the marketing textbooks were

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

Technically, marketing is a branch of Economics.

 First Brand Name Product
First Departmental Store
1870- Pears’s soap
Mitsui Family 1650 in Japan

First Newspaper Advertisement First Packaging

For Coffee in England in 1652 1880- Laundry soap in England

First Marketing Research

First Advertising Agency Department
1869- N.W. Ayers and Sons 1911-Curtis Publishing
Company
Marketing started in sales. Sales people were not ready to or not
capable of performing following activities:

Conducting consumer research

Find leads (they wanted others to find leads for them)
Prepare brochures and other promotions (they were not capable)

So sales department used to add or hire some people from time

to time to do these activities.

Those group of people were gradually split from sales and

became big enough to become a separate department.
Role of marketing in a company is influenced by the CEO’s
view of marketing

1P CEO (Promotion is everything)

4P CEO (Marketing plan is required and it must mention

Product, price, place, and promotion)

STP CEO (First STP and then marketing plan ) – better view

ME CEO (ME-Marketing is everything) [Exemplified by Alan

Alan. G. Lafley, Former CEO of Procter and Gamble (P&G)]
 Broadening of Marketing

Commercial marketing

Person Marketing

Social marketing (making people aware about vices like

smoking, drinking and others)

Political marketing

Fundraising
Let’s Start with an example
 Marketing Management
“Marketing is everywhere. Formally or informally, people and
organisations engage in a vast number of activities that could be
called marketing. Good marketing has become an increasingly
vital for business success and marketing profoundly affects our
day-to-day lives. It is embedded in everything we do- from the
clothes we wear, to the web sites we click on, to the ads we see.

Good marketing is no accident, but a result of careful planning

and execution. Marketing practices are continually being refined
and reformed in virtually all industries to increase the chances of
success. But marketing excellence is rare and difficult to
achieve.”
 Marketing Management
“Marketing is both an Art and Science”

• “The companies at greatest risk are those that fail to carefully

monitor their customers and competitors and to continuously
improve their value offerings. They take a short-term, sales
driven view of their business and ultimately they fail to satisfy
their stockholders, their employees, their suppliers and their
channel partners. Skillful marketing is a never-ending
pursuit.”

• The shortest definition of marketing is “Meeting needs

profitably”.
 Marketing Management
 When Google recognised that people needed to more
effectively and efficiently access information on the
Internet, it created a powerful search engine that
organised and prioritised queries.

 When IKEA noticed that people wanted good

furnishings at substantially lower prices, it created
knockdown furniture. These two firms demonstrated
marketing savvy and turned a private or social need
into a profitable business opportunity.
 What is Marketing
Formal Definition Given by American Marketing
Association (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.”

New definition of marketing is sometimes given as

“Marketing is a growth function”

 Definition of Marketing Management

Marketing management is art and science of

choosing target markets and getting, keeping and
growing customers through creating, delivering,
and communicating superior customer value
 Social Definition

We can distinguish between a social and a managerial

definition of marketing.

A social definition shows the role marketing plays in

society; for example, one marketer has said that
marketing’s role is to “deliver a higher standard of living.”
 Social Definition
Here is a social definition that serves our purpose:

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.

Cocreation of value among consumers and with businesses and

the importance of value creation and sharing have become
important themes in the development of modern marketing
thought.
 Marketing Management
“Most important part of marketing is not selling. Selling is only
the tip of the marketing iceberg.”

Peter Drucker puts it like

There will always, one can assume, be need for some selling.
But the aim of the marketing is to make selling superfluous.
The aim of the 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 customer who is ready
to buy. All that should be needed then is to make the
product/service available.
Marketing means understanding and
responding to customer needs, a
prerequisite for any organisation’s
success. And this certainly cannot be
ignored by any organisation in today’s
competitive environment.
 To be successful, any organisation has to be competition
oriented. It has to continuously determine its competitive
advantage and take steps to further augment it.

Thus, the marketing concept involves:

Customer orientation

Competition orientation

Ability to respond to environmental changes

(changes in customer needs, competition, government policy,
technology, etc.) before competition does.
 What is marketed?

Goods, Services, Events, Experience, Persons,

Places, Properties, Organisations, Information,
Ideas
(In the factory, we make cosmetics; in the store
we sell hopes- Charles Revson of Revlon)
 Company Orientation toward the Marketplace
The competing concepts under which organisations have conducted marketing
activities include

Production Concept: Consumer will prefer products that are widely available and
inexpensive. Managers of production oriented businesses concentrate on
achieving higher production efficiency.

Product Concept: Consumer will prefer those products that offer the most
quality, performance, or innovative feature. Managers in these organisations
focus on making superior products and improving them overtime.

Selling Concept: Consumers and businesses, if left alone, will ordinarily not buy
enough of the organisation’s product. The organisation must , therefore,
undertake an aggressive selling and promotion effort.

The Marketing Concept: Business shifts to a customer-centred, sense-and-

response philosophy. The job is not to find the right customers for your product,
but the right products for your customer.
 Several scholars have found that companies who embrace the
marketing concept achieve superior performance. There may be
reactive marketing orientation or proactive marketing
orientation.

In reactive marketing orientation, customer’s expressed needs

are understood and met.

In case of proactive marketing orientation, high-level of

innovation is possible if focus is on customer’s latent needs.

The companies that practice both a reactive and proactive

marketing orientation are implementing a total market
orientation and are likely to be the most successful.
In course of converting to a marketing orientation, a company faces
three hurdles: organised resistance, slow learning and fast forgetting.

Marketing Orientation involves a six dimensional approach:

Customer Orientation:
Continuous monitoring of customer needs, wants, and preferences.

Integrated approach to exploit market opportunities:

Integration of all elements of marketing mix into a sound business plan
that could help to effectively fight competition.

Futuristic Approach:
Money spent on marketing not as expenditure but as an investment.
 Highly developed marketing systems:
Highly developed marketing systems that act as market
barometers. All major marketing decisions are taken on the
basis of market information emerging from these systems like
complaint management or CRM and e-CRM.

 Marketing culture:
Everybody in the organisation , from the chief executive to the
lowest level staff, should be market oriented. The customer is
given key importance, and, accordingly, his interests override
organisational interest.

 Speed of response:
The speed at which customer’s problems are resolved. It
determines competitive advantage of organisations.
 The Holistic Marketing Concept
It is based on the development, design, and implementation
of marketing programmes, processes, and activities that
recognise their breadth and interdependencies.

Holistic marketing recognises that “everything matters”

with marketing-and that a broad, integrated perspective is
often necessary. It attempts to recognise and reconcile the
scope and complexities of marketing activities.

Four components are shown in the next slide.

 Relationship Marketing

It has the aim of building mutually satisfying long-term

relationship with key parties-customers, suppliers,
distributors, and other marketing partners-in order to
earn and retain their business. It builds strong economic,
technical, and social ties among the parties.

The ultimate outcome is the building of a unique company

asset called a “marketing network”. Increasingly,
competition is not between companies but between
marketing networks, with the prize going to the company
that has built the better network.
Relationship Marketing involves cultivating the
right kind of relationship with the right constituent
group. Marketing must not only CRM, but also
Partner Relationship Management (PRM) as well.

Four key constituent for marketing are customers,

employees, marketing partners, and the members
of the financial community.
 Integrated Marketing
The marketing programme consists of numerous decisions
on value-enhancing marketing activities to use. Marketing
activities came in all forms. One traditional depiction of
marketing activities is in form of marketing mix.

McCarthy classified these tools into four broad groups,

which he called the four Ps of marketing: product, price,
place, and promotion. It has been defined as the set of
marketing tools the firm uses to pursue its marketing
objective.
Marketing decisions must be made for influencing
the trade channels as well as final consumers.

The company prepares an offering mix of products,

services, and prices and utilises a communication
mix of advertising, sales promotion, events and
experiences, public relations, and personal selling
to reach the trade channels and the target
customers.
The firm can change its price, sales force size,
advertising expenditure in the short-run. It can
develop new products, and modify its distribution
channels only in the long-run.

The four Ps represent seller’s view of marketing

tools available for influencing buyers. From the
buyer’s point of view, each marketing tool is
designed to deliver a customer benefit.
Robert Lauterborn suggested that the seller’s four
Ps corresponds to the customer’s four Cs.
Winning companies will be those that can meet customer
needs economically and conveniently and with effective
communication.

Two key themes of integrated marketing are

(i) many different marketing activities are employed to communicate

and deliver value.

(ii) all marketing activities are coordinated to maximise their joint

effort.

Integrated marketing strategy involves ensuring that direct (e.g.

online sales) and indirect channel (e.g. retail sales) work together to
maximise sales and brand equity
 Internal Marketing
It ensures that everyone in the organisation embraces
appropriate marketing principles, especially senior
management. It is the task of hiring, training, and
motivating able employees who want to serve customers as
well.

Smart marketers recognise that marketing activities within

the company can be as important as, or even more so than,
marketing activities directed outside the company.

It makes no sense to promise excellent service before the

company’s staff is ready to provide it.
Internal marketing must take place on two levels:

(a) The various marketing functions--sales force,

advertising, customer service, product management,
marketing research-must work together.

(b) Marketing must be embraced by the other departments;

they must “think customers”. Marketing is not a
department so much as a company orientation.
 Social Responsibility Marketing

The cause and effects of marketing clearly extend beyond

the company and the customers to society as a whole.
Social responsibility also requires that marketers
carefully consider the role that they are playing and could
play in terms of social welfare.

Ex: McDonalds’ (Uses high-weight recycled boxes and

adds healthier items to their menus)
The societal marketing concept holds that the
organisation’s task is to determine the needs, wants, and
interests of target markets and to deliver the desired
satisfaction more effectively and efficiently than
competitors in a way that preserves or enhances the
customer’s and society’s well-being.

It is also called “humanistic marketing” and “ecological

marketing” or “cause-related” marketing.
Selling V/S Marketing
 Why is Marketing Criticised?

Marketers get the consumers to buy more than what they can
afford
Marketers are skilled to create brand differentiations which really
does not exist
Intrusion and interruptions
Exaggeration (In the factory we make cosmetics, in the store we
sell hope)
Marketers do not pay sufficient attention to product safety
Marketers promote a materialistic mindset
 Why is Marketing Criticised?
Deceptive practices (read the small print)

Hard selling or pressure selling

Buy now, pay later (giving loans to those who cannot repay)

Planned obsolescence (in fashion and technical products)

Too much choice

Marketers often produce goods without considering resource and

environmental costs
 Why is Marketing Criticised?

“If advertisers spent the same amount of money

on improving their products as they do on
advertising, they would not have to advertise
them”—Will Rogers (American Actors)
 Some of the Remarkable Marketers

Anita Roddick The Body Shop

Walt Disney Walt Disney
Herb Kelleher Southwest Airlines
Bill Gates Microsoft
Steve Jobs Apple
Jeff Bezos Amazon.com
Ingvar Kamprad IKEA
Richard Branson Virgin Group
 Books to be read apart from textbooks

1.Firms of Endearment: How World-Class Companies

Profit from Passion and Purpose ----Rajendra Sisodia,
David Wolfe, Jagdissh N. Sheth

2. The Death of Demand: Finding Growth in a Saturated

Global Economy----Tom Osenton
Thank You