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 1. 2.

3.

4.

5. 6.

What is Marketing? meeting needs profitably! American Marketing Association: Marketing is an organizational function and a set of processes for creating, communicating and delivering value to customers and managing customer relationships in ways that benefits organization and its stake holders. Philip Kotler: Marketing management is the art and science of choosing target markets and getting, keeping and growing customers through creating, delivering and communicating superior customer value. Social definition: 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. Managerial definition: The art off selling products Marketing deals with identifying and meeting human and social needs 8/9/2011

 What

is Marketing?

Marketing management takes place when at least one party to a potential exchange thinks about the means of achieving desired responses from other parties.

The most important part of marketing is selling ^ y The aim of marketing is making selling superfluous.
y

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Exchange and transaction A person can obtain a product in one of four ways

Self-produce- Hunt, Fish, Gather fruits Use force Beg Exchange

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1. 2. 3. 4. 5.

Exchange and transactions Exchange: The process of obtaining a desired product from someone by offering something in return. Transaction: A trade of values between two or more parties. When an agreement is reached we say transaction has happened. Exchange is a value creating process because it normally leaves both parties better off. For exchange potential five conditions must be satisfied
There are at least two parties Each party has something that might be of value to the other party Each party is capable of communication and delivery Each party is free to accept or reject the exchange offer Each party believes it is appropriate or desirable to deal with the other party
5

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A transaction involves

At least two things of value Agreed upon conditions A time of agreement A place of agreement A legal system supports and enforces compliance

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Transaction differs from transfer. In transfer A gives X to B but does not receive any thing tangible in return

Gifts, subsidies, charity Transfer expects something like gratitude, changed behaviour, Thank-you notes, invitations, a business firm wants a purchase, a politician wants vote,

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Mahindra and Mahindra sales a tracter

Farmer wants:
High quality equipment A fair price Timely delivery Good financial terms Reliable parts and service

Mahindra and Mahindra wants

Good price for the tracter On-time payment Positive word of mouth

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What is Marketed?
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Goods Services Events Experiences Persons Places Properties Organisations Information Ideas
Cars, Trucks, Televisions, Machine Tools, Machines, Industrial rental, barbers, beauticians, Airlines, Hotels, Car chemicals, watches, cosmetics . maintenance and repair, accountants, lawyers, Trades shows, Artistic performances, doctors, consultants, service providers Sporting events (Olympics, World Cup), Amusement park, water park, Multiplexes, Theme restaurents Stars selling Celebrity marketing, themselves through agents, PR agencies State ads like tourist or business destinations etc. Real Estate or financial property like stocks and bonds Corporate, Universities .. Companies, News channels, Encyclopedias . Awareness about AIDS, Family planning, Discouraging smoking .

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Who Markets?
A marketer is someone who seeks response from another party called prospect,

Eight demand states:

1. 2. 3. 4. 5. 6. 7. 8. Negative Demand: consumer dislikes the product and even pay a price to avoid it Nonexistent Demand: consumers may be unaware or uninterested in the product. Latent Demand: consumers may share a strong need that cannot be satisfied by an existing product. Declining Demand: consumers begin to buy the product less frequently or not at all. Irregular Demand: consumer purchases very on a seasonal, monthly, weekly, daily or even hourly basis. Full Demand: consumers are adequately buying all products put into the marketplace Overfull Demand: more consumers would like to buy the product than can be satisfied. Unwholesome Demand: consumers may be attracted to products that have undesirable social consequences.
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Collection of buyers and sellers who transact over a particular product or product class (e.g. the housing market or grain market) Sellers: Constituting industry Buyers: Constituting markets
Market

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Resources

Resources

Money

Resource Markets
Taxes, Goods

Money

Services Money Taxes

Services Money

Manufacturer Markets
Taxes, Goods Services Money

Government Markets
Services

Consumer Markets

Taxes, Goods Money

Money

Goods & Services

Intermediary Markets

Goods & Services

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Consumer markets Business markets Global markets Non-profit and Govt Markets
Communication

Goods/ Services Industry (Collection of sellers) Money Information

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Market (collection of buyers)

Marketplace:

is physical as you shop a store

Marketspace: is digital as you shop on Internet Metamarket: is a cluster of complementary

products and services that are closely related in the minds of consumers but are spread across a diverse set of Industries Automobile metamarket:
Automobile Manufactures Insurance companies Auto magazines New car Dealers Classified Auto ads in Mechanics newspapers Used car Dealers Spare part dealers Internet sites on Auto Service shops Financing Companies 8/9/2011 14

How business and Marketing are changing? Changing Technology Globalization Deregulations Privatization Customer empowerment Customization Heighten competition Industry convergence Retail transformation Disintermediation

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The Production Concept The Product Concept The Selling concept The Marketing Concept

High production efficiency, Low cost and mass distribution

Total focus on product and no focus on other needs

Intention is to sell more and more

The Holistic Marketing Concept

No HUNTING but GARDENING, Understanding EXPRESSED needs Reactive Market Orientation) Understanding LATENT needs (Proactive Market Orientation) And TOTAL Market Orientation

Relationship Marketing Integrated Marketing Internal Marketing Social Responsibility Marketing

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Marketing Department

Senior Management

Other Departments

Communications

Products & Services Channels

Internal Marketing

Integrated Marketing

Holistic Marketing

Socially Responsible Marketing

Relationship Marketing

Ethics Environment 8/9/2011 Legal

Community

Customers Channel

Partners

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Has a aim of building mutually satisfying long term relationships with key parties- Customers, Suppliers, Distributors and Other marketing partners- in order to earn and retain their business. Marketing must not only do customer relationship management (CRM) but also partner relationship management (PRM) Key constituents are Customers Employees Marketing partners (channels, suppliers, distributors, dealers, agencies) Members of financial community (shareholders, investors, analysts) Ultimate outcome is a Marketing Network

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Marketing Mix

Products
Product variety Quality Design Features Brand name Packaging Target Market Sizes Services Warranties Price Returns List price Discounts Allowances Payment period Credit terms
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Place
Channels Coverage Assortments Locations Inventory Transport

Promotion
Sales promotion Advertising Sales force Public relations Direct Marketing
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Four Ps Product Price Place Promotion

Four Cs Customer solution Customer cost Convenience Communication

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Core concepts: Needs, wants and Demands Target Markets, Positioning and Segmentation (STP) Marketing Environment: 1.1. Task market into segments Divide Environment Offerings and Brands Marketing Planning needs 1. Stated 2. Profile distinct groups using Company Supplydemographic, psychographic channel 2. Real needs describes a longer channel Value and satisfactionAnalysing Marketing opportunities Suppliers from channels 1. Communication the tangible Value reflects3. Unstated needs the market Competition includesdifferences all Selecting target perceivedactual and offering from a Known source Distributors A brand is an behavioral channels Marketing channels and 2. Distribution offerings costs to intangiblerival potential4. materialand and Delight to Designingsegment with greatest marketing needs 3. DecideRawbenefits strategies 3. Dealersmarketing programmes Service Components customers. Value can be mightas a substitutes that a buyer seen Developing 5.channels to opportunity Secret needs Supply chain Target Customers combinationmarketing market and of Quality, Managing consider efforts 4.1. BroadFinal products For chosen target Service Environment Supply chain offering Competition Price develop represents Value delivery Demographic system Marketing Environment Economic Physical Marketing planning Technological
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Political-legal Social-cultural

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Selling
Selling is part of Marketing Selling revolves around the needs and interests of the seller Selling starts with the existing products of the corporation and views business as a task of somehow promoting these products

Marketing
Marketing is much wider than selling Marketing revolves around the needs and interests of the buyer Marketing on the contrary starts with the customers-present and potential-and views business as a task of meeting the needs of the customers by producing and supplying those products and services that would meet such needs Marketing too, seeks profits, but not through aggressive pushing of products but by meeting the needs of customers and by creating value satisfaction for them

Selling seeks profits by pushing the products on the buyers

Selling Selling starts with the seller,

Marketing Marketing starts with the buyer

Seller is the centre of the business Buyer is the centre of the business universe Emphasizes on saleable surplus available within the corporation Seeks to quickly convert product into cash Views business as a goods producing process Cost determines the cost Emphasizes on identification of a market opportunity Seeks to convert customer needs into products Views business as customer satisfying process Consumer determines price; price determines costs.

Selling

Marketing

Sellers preference dominates the formulation of marketing mix The firm makes the product first and then figures out how to sell it and make profit

Buyer determines the shape, the marketing mix should take What is to be offered as a product is determined by the customer