INTRODUCTION TO MARKETING

Marketing Definitions
Marketing is the creation and delivery of a standard of
living.

Marketing is the management process that identifies,
anticipates and satisfies customer requirements profitably

Marketing is a managerial and societal process by which
individuals and groups obtain what they need and want
through creating, offering, and exchanging products and
services of value with others.

It is the process of planning and executing the
conception, pricing, promotion and distribution
of ideas, goods and services to create exchanges
that satisfy individual and organizational goals.
Management definition

What is Marketing?
Marketing is meeting the needs profitably
both of marketers and customers.
The aim of marketing is to know and
understand the customer so well that the
product or service fits him and sells itself.
e.g. Waiting lines and customer full restaurants,
waiting period for the vehicles etc.
3 Keys to Marketing
Understand
Provide
Communicate

Nature Of Marketing
What is the Purpose of Marketing?

Satisfaction
Functional Satisfaction
Psychological Satisfaction
The Four Utilities
Consumer Problems
Providing Benefit Bundles
Offering a Total Consumption System
Increments of Satisfaction
Facilitating Exchanges

Simple Marketing System
Industry
(a collection
of sellers)
Market
(a collection
of Buyers)
Goods/services
Money
Information
Communication
Market
Market is a collection of buyers & sellers who transact
over a particular product or product class
Marketers often use the term markets to cover various
groupings of customers
Sellers constituting industry and buyers constituting
markets
Key customer markets
Consumer markets
Business markets
Global markets
Non-profit & Governmental markets
Market Place is physical as when you shop in
a store
Market space - is digital as when you shop on
the internet
Implications of marketing
Who are our existing / potential customers?
What are their current / future needs?
How can we satisfy these needs?
Can we offer a product/ service that the
customer would value?
Can we communicate with our customers?
Can we deliver a competitive product of
service?
Why should customers buy from us?
Successful marketing requires:
Profitable
Offensive (rather than defensive)
Integrated
Strategic (is future orientated)
Effective (gets results)
Core Concepts of Marketing
Product or Offering
Value and Satisfaction
Needs, Wants, and Demands
Exchange and Transactions
Relationships and Networks
Target Markets & Segmentation
Marketing Channels
Supply Chain
Competition
Marketing Environment
Needs are basic human requirements.
Wants are needs directed to specific
objects/services that might satisfy the need.
Demand is the wants for specific products
backed by an ability to pay.

Need, Want & Demand
Exchange & Transaction
Exchange is get something (product /service) by
offering something in return. Eg. kind (barter)
or money (value ) . Exchange is a value creating
process because it leaves both parties better off
(win win situation)
A transaction is an exchange between two
things of value on agreed conditions and a time
and place of agreement.


Customer Value & Satisfaction
Value and Satisfaction
Value = Benefits/Costs
Benefits = Functional Benefits + Emotional
benefits
Costs = Monetary costs + Time + Energy +
Psychic costs
Offer should contain value for the product.
Customer Satisfaction
&
Customer Delight
Customer delight is surprising a customer by exceeding
his/her expectations and thus creating a positive emotional
reaction. This emotional reaction leads to word of mouth.
Customer satisfaction measures the extent to which the
expectations of a customer are met
Customer value is the difference between the values the
customer gains from owing and using a product and the
costs of obtaining the product.
The Scope Of Marketing
Marketers are involved with marketing ten types of entities:

1. Physical Goods
2. Services
3. Experiences
4. Events
5. Persons
6. Places
7. Properties
8. Organizations
9. Information
10. Ideas


PHILOSOPHIES OF MARKETING
The PRODUCTI ON CONCEPT
Holds that consumers will prefer products
that are widely available and inexpensive.

The PRODUCT CONCEPT
Holds that consumers will favor those
products that offer the most quality,
performance, or innovative features
The SELLI NG CONCEPT
Holds that consumers and businesses, will
ordinarily not buy enough of the
organizations products. The organization
must therefore, undertake an aggressive
selling and promotion effort.
The MARKETI NG CONCEPT
holds that the key to achieving its
organizational goals consists of the
company being more effective than
competitors in creating, delivering, and
communicating customer value to its
chosen target markets.
.
The SOCIETAL MARKETI NG
CONCEPT
holds that the organizations task is to
determine the needs, wants, and interests of
the target markets and to deliver the desired
satisfactions more effectively than
competitors in a way that preserves the
consumers and societys well-being.

Societal Marketing Concept
Marketing Management
The analysis, planning, implementation & control of programs designed to
create, build, and maintain beneficial exchanges with target buyers for the
purpose achieving organisational objectives
Competitive advantage
Profit
Marketing management process
Analysis/Audit - where are we now?
Objectives - where do we want to be?
Strategies - which way is best?
Tactics - how do we get there?
Implementation - Getting there!
Control - Ensuring arrival
Why is marketing planning necessary?
Systematic futuristic thinking by management
better co-ordination of a companys efforts
development of performance standards for
control
sharpening of objectives and policies
better prepare for sudden developments
MARKETING PROCESS
The Marketing Process consists of

Analyzing Marketing Opportunities
Researching and Selecting Target Markets
Designing Marketing Opportunities
Planning Marketing Programs
Organizing, Implementing, and Controlling
the Marketing Effort

Marketing Process
Marketing Strategy
Marketing Strategy is the marketing logic by
which the business unit hopes to achieve its
marketing objectives

Marketing Strategy and the Marketing
Mix
Market segmentation is the division of a market
into distinct groups of buyers who have distinct
needs, characteristics, or behavior and who
might require separate products or marketing
mixes
Market segment is a group of consumers who
respond in a similar way to a given set of
marketing efforts
Market targeting is the process of evaluating each
market segments attractiveness and selecting
one or more segments to enter

Marketing Strategy
Market positioning is the arranging for a
product to occupy a clear, distinctive, and
desirable place relative to competing
products in the minds of the target
consumer

Marketing Mix
Marketing mix is the set of controllable
tactical marketing toolsproduct, price,
place, and promotionthat the firm blends
to produce the response it wants in the
target market

Marketing Strategy and the Marketing Mix
Developing an Integrated Marketing Mix

Marketing Activities
Product:
Develop new products
Modify existing products
Test-market products
Select brand name
Package product

Pricing:
Establish price objectives
Conduct cost analysis
Analyze competitors price
Set actual prices

Promotion:
Determine types of promotion
Design the advertising massage
Selecting advertising media
Schedule the advertisements
Distribution:
Select wholesalers and retailers
Establish procedures for
handling and moving products
Find the best locations for
plants, warehouses and retail
outlets
7 Ps of the Marketing Mix
People
Process
Physical Evidence

Product
Price
Place
Promotion