Introduction to Marketing

Lecture 1
In this session we will learn about
• Why Marketing?
• Difference between marketing and selling
• Definition of marketing
• The marketing model
 Why Marketing ?
• To fulfill consumers aspiratons
• To satisfy customers
• To stay in competition
Basically It is a process of creating ,
promoting & delivering goods &
services to consumers and
businesses.
 Difference b/w Marketing and selling
Selling Marketing

Emphasis is on product Emphasis is on Cust’s needs &

wants
Cos 1st make the prod and then 1st wants are figured and then the
see how to sell it prod id designed to satisfy the
needs , sometimes vice versa also
happens ;-)
Profit comes from sales , Profit is result of customer
maximization of profit is achieved satisfaction, long run planning of
thru increased sales retaining customers thus making
profit in long term
Need of seller are stressed , i.e Needs and wants of the buyers are
selling is done from a sellers stressed
prespective
 What is Marketing ?
Marketing is about identifying and meeting
human and social needs. One of the shortest
good definitions of marketing is
“meeting needs profitably.”
 Definition of marketing
As defined by Philip Kotler (Marketing
guru) “It is a societal process by which
individuals & groups obtain what they
need & want through creating offering
& freely exchanging products and
services of value with others”.

• “Art of selling Products and services”

 The Marketing Model
Communicative Information

Offering
Seller Buyer
Money

Feedback
Difference between the Customer and Consumer
(customer who pays for the prod i.e the buyer
and consumer who consumes)
Understanding Need, Want & Demand

Lecture 2
In this session we will learn about
• Basic concept of need, want and demand
• Satisfying needs
• Exchange vs Transaction
 Basic concept of need, want & demand
Need : is the state of felt deprivation.
These can be :
Physical needs : - food , clothes, shelter, hunger
Social needs : - love , affection, recoginition
Individual needs : - Knowledge, self expression

Wants : these are educated needs as shaped by culture and

personality.
Need for food but want rice & curry or Dal and Chapati
Demands : it is empowered human want . (for which and individual is
willing to pay)
Eg.
Need : to quench thirst  Want : Water  May Demand: Kinley
 Satisfying needs
Needs can be best satisfied by socially accepted
process of exchange .

Exchange Transaction

A process by which an A trade b/w 2 parties that

individual gets a desired involve at least 2 things of
object from someone by value , agreed upon
offering something of value condition, time & place. Eg
in return. Eg barter banking transactions
 Why this exchange/ Transaction takes place ?
 Cause the customer gets satisfaction.
 Cause the prod/ service is of utility to him .
Types of Utility

 Form Utility (leather in form of shoe, clay in form of a

lamp)
 Place utility (Oven in the kitchen)
 Time Utility (Newspaper, Competition Power magazine )
 Information Utility ( News, data)
 Posessional Utility ( Car, property)
 Scope & evolution of Marketing
Lecture 3
In this session we will learn about
• What can be marketed ?
• Types of Demands
• Evolution of Marketing
 What can be marketed (Scope of marketing) ?
All kinds of products (tangible) / services (intangible)
 Goods
 Services (or a combination of both as in restaurants)
 Experiences ( Bunjee Jumping, River rafting) )
 Persons ( The Kapil Sharma Show, Justin Bieber)
 Place ( Incredible India , Kerala- Gods Own Country)
 Properties ( Oberoi Amar Vilas, )
 Organisations ( Indian Navy, IBM)
 Information ( Wikipedia, Internet, Google Maps)
 Ideas ( UPI, Diners club)
 Types of Demand
Marketers have to manage various states of demand to build an
appropriate Marketing strategy.
• -ve demand : - when major parts of the Mkt dislikes the product (eg .
IIM is –ve demand for dull students, tougher the exam more students
get discouraged)
• No demand : - When target customers are unaware or uninterested in
a product ( eg : Pecan Nuts)
• Latent Demand : - when a strong need exists but cannot be satisfied
by existing product . (eg : solar / electric vehicles)
• Declining Demand : - when customers are shifting to better / newer
products (eg : - I phone 6)
• Irregular / Cyclic Demand :- varies with cycles / seasons etc (eg.
Raincoats/ ODOMOS)
• Full Demand : - when prod capacity is fully utilized , time to maximize
profit ( eg : very few prods fall in this category as they either reach
overfull demand or prod capacity is scaled up)
• Overfull Demand : - demand is higher than co can handle , waiting
period(One Plus 7, Train Tickets during holiday season)
• Unwholesome demand : - Demand that has to be discouraged . Eg
Cigarettes, Alcohol
 Evolution of Marketing
From selling ----- to -----→ Mktg
(Prod focused) (cust focused)
 Creating and Retaining Customers
Lecture 4
In this session we will learn about
• Creating & Retaining Customers.
• Customer Satisfaction.
• Importance of customer retention.
• Michael Porter’s Value chain.
 Marketing Environment
Lecture 5
In this session we will learn about
• Why understanding Marketing Environment is
important ?
• Difference between Macro and Micro
Environmental forces.
• Various Macro Environmental Forces.
Macro environmental forces and
Micro environmental forces are
the two types of forces that
influence an organisations
Marketing activities.
 Macro Environmental forces
Macro environmental forces are the
major external and uncontrollable
factors that influence an
organization's decision making, and
affect its performance and
strategies. These factors include the
economic factors; demographics;
legal, political, and social conditions;
technological changes; and
natural/physical forces.
 Micro Environmental Forces
Lecture 6
In this session we will learn about
• Various Micro Environmental Forces.
 Micro Environmental forces
Microenvironmental forces are
factors or elements in an
organization's immediate area of
operations that affect its
performance and decision-making
freedom. These factors include
competitors, customers,
distribution channels, suppliers,
and the general public.
 Scanning the Marketing Environment
Lecture 7
 Scanning the
Marketing Environment
In this session we will learn about
• Why Scanning the Environment is Important.
• Major Components of Environmental Scanning.
– Customer Analysis
– Competitor Analysis
– Market Analysis
– Company Analysis (SWOT Analysis)
 Major components of Environmental
scanning are :

 External Environmental scanning

( Done at both Macro and Micro level)
 Customer analysis
 Competitor analysis
 Market analysis
 Company Analysis
 External Environmental scanning ( Done at both
Macro and Micro level)
MACRO LEVEL
The PESTLE Analysis is a framework used to scan the
organization's external macro environment. The
letters stand for Political, Economic Socio-cultural,
Technological, Legal and Environmental. Macro
level changes effect the business in the long run

MICRO LEVEL
This is also known as task environment scanning and
effects business and marketing at the daily
operating level. Micro level changes effect the
business in short run
 Customer analysis
• Who are our customers ?
(Existing customers)
• Who can be our customers ?
(Potential Customers)
Keeping the above two segments in mind an
appropriate Marketing plan is developed
 Competitor Analysis
Who are our competitors ?
Whom are we sharing the Pie with ?
• Who do we usually compete with ?
• Who are our most intense
competitors ?
• Who are the makers of substitute
products ?
• Who are potential entrants ?
 Market analysis
• Actual and potential Market size.
• Market growth rate.
• Market profitability.
• Cost Structure.
• Distribution System.
• Trends & Development.
• Key Success factors.
• Nature of competition.
 Company analysis
One of the most common tools is
the SWOT analysis tool A SWOT
analysis can be carried out for a
company, product, place,
industry, or person.

SWOT - Review of co’s Strengths,

Weakness, Opportunities &
Threats.