Chapter – 1

Introduction of Marketing and Marketing Mix

Importance and Scope of Marketing

Company Orientation towards the Marketplace

(evolution of marketing concept)

Marketing Mix

Emerging trends and challenges of Marketing in

Twenty-One Century

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Marketing Management
To begin with…
Please write down within 30 words, what is your
understanding about Marketing? – 3 min.
Count words and write that too. Above 30 words will be
ignored, please be careful.

Read it out.
Voting for the best one.
Rank them between students.
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Importance
Financial success often depends on marketing ability.
Good Marketing is never an accident.

The roaring success of

four-wheeler Tata Ace, in a
market earlier dominated
by three-wheeler load
carriers, was due to a deep
understanding of the
market needs and
customer requirements.

Even market leaders cannot afford to relax as their

leadership is challenged and warned by the market all
the time "Change or die."
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Importance
Customer & Profitability

 In the long run survival of every business is

at risk.
 There is no guarantee that the today’s
successful companies will continue to
dominate over the next decade.
 The only thing that is constant … … … … … is

Change.
Importance
Changes will be in … … …
Customers
Change in needs, demographics, lifestyle, and
consumption behavior.
Competitors
Change as new technologies, new ideas and new
strategies.
Environment
Economic, political, social and technologies.
***

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Marketing meaning & concept
What is Marketing?
 Marketing is all about identifying and meeting
human and social needs.

Simple Definition:
Marketing is managing profitable customer
relationships.

Goals:
1. Attract new customers by promising superior value.
2. Keep and grow current customers by delivering
satisfaction.
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Marketing meaning & concept
Marketing Defined:
"Marketing is an organizational function and set of
processes for creating, communicating, and delivering
value to customers and for managing customer
relationships in ways that benefit the organization
and its stakeholders." – American Marketing Association.

OLD View NEW

New View
View
of Marketing: of
ofMarketing:
Marketing:
Making a Sale – Satisfying
Satisfying
“Telling & Selling” Customer
customerNeeds
needs
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Marketing meaning & concept
What is Marketing Management?
"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.
Selling is only the tip of the iceberg.
“There will always be a need for
some selling. But the aim of marketing is to make
selling superfluous. The aim of 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 a customer who is ready
to buy. All that should be needed is to make the
product or service available.”
Peter Drucker

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What is Marketed?
Goods
Goods
Services
Services
Events
Events &
& Experiences
Experiences
Persons
Persons
Places
Places &
& Properties
Properties
Organizations
Organizations
Information
Information
Ideas
Ideas
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The Scope of Marketing
Who Markets?
Marketers and Prospects
A Marketers is someone who seeks response - attention, a
purchase, a vote, a donation – from another party, called the
Prospects.
Marketers are responsible for Demand Management; Eight
demand states are possible:
1. Negative: disliking, even ready to pay to avoid.
2. Non-existent: unaware or uninterested
3. Latent: strong need that cannot be satisfied by existing product
4. Declining: begin to buy less or not at all
5. Irregular: Seasonal, monthly, weekly, daily or even hourly basis
6. Full: adequately buying
7. Overfull: more would like to buy
8. Unwholesome: attracted to products that have undesirable social
consequences
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The Scope of Marketing
Who Markets?
Markets:

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The Scope of Marketing
Markets
Relationship between the industry and the market

Key Customer Markets

 Consumer Markets
 Business Markets
 Global Markets
 Nonprofit and Governmental Markets
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The Scope of Marketing
Marketplaces, Marketspaces, and Metamarkets
 Marketplaces: physical such as a store, shopping area etc.
 Marketspaces: digital, shopping through the Internet.
 Metamarkets: cluster of complimentary products and services that are
closely related in the minds of the consumers, but spread across a
diverse set of industries. (such as Car and related products including
insurance, finance, servicing, spare parts, mechanics, auto magazines etc.)

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Marketing in Practice
Modern Approach: Marketing is not done only by
Marketing Department;
It needs to be internalized entirely by the involved people
in the process of selling and providing services.
Function of CMOs (Chief Marketing Officer)
Strengthening the brands
Measuring marketing effectiveness
Driving new product development based on
customer needs
Gathering meaningful customer insights
Utilizing new marketing technology

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Core Marketing Concepts
Needs, Wants, and Demands
Needs: State of felt deprivation including physical,
social, and individual needs.

Wants: Form that a human need takes, as shaped

by culture and individual personality.

Demands: Wants supported Buying Power

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Core Marketing Concepts
Segmentation, Target Markets, and Positioning
Marketing segmentation is “dividing up a market into distinct
groups that (1) have common needs and (2) will respond
similarly to a marketing actions.
Identify and profile distinct groups of buyers who might prefer
or require varying products and services mixes by examining
 Demographic information
 Psychographic information
 Behavioral information
Target market
 Which market presents the greatest opportunity
Market offering
 Develops a marketing offering that it positions in the minds of
the target buyers as delivering some central benefit(s).

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Core Marketing Concepts
Offering and Brands
Value proposition: a set of benefits they offer to customers
to satisfy their needs
Brand: is an offering from a known source
Value and Satisfaction
Successful if it delivers value and satisfaction to the target
buyer
Value is a central marketing concept
Satisfaction reflects a person’s judgment of a product’s
perceived performance
Marketing Channels
Communication channels; Distribution channels; Service
channels; Supply Chain
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Core Marketing Concepts
Competition
All the actual and potential rival offerings and substitutes
a buyer might consider
Marketing environment
Task environment
 Actors engaged in producing, distributing, and promoting the
offerings
 The company; suppliers; distributors; dealers; and the target

customers
Broad environment:
 Demographic; Economic; Physical; Technological; Political-Legal;
Social-cultural

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The New Marketing Realities
"The marketplace is not what it used to be."

Major forces that are affecting today’s Marketing:

A. Network information technology (development of ICT)
B. Globalization (going global)
C. Deregulation (more freedom to business community)
D. Privatization (very few govt. enterprises and reducing)
E. Heightened Competition (Many players, easy entry)
F. Industry Convergence (having few major player in the market)
G. Consumer Resistance (more information to customers)
H. Retail Transformation (power of retailer)
I. Disintermediation (direct to customer thru non-traditional way)

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The New Marketing Realities
New Consumer Capabilities
A. A substantial increase in buying power
B. Greater variety of goods and services
C. Great deal of information available
D. Greater ease in interacting and placing orders
E. Ability to compare notes on products and services
F. Amplified voice to influence peer and public opinion
New Company Capabilities
A. Internet
B. Research
C. Speed of internal information
D. Speed of external information “buzz’
E. Better target marketing
F. Mobile marketing
G. Differentiated goods
H. Improved purchasing, recruiting, training, and communications

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Company Orientation towards Market
Evolution of Marketing Concepts

Production Product

Selling Marketing

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Holistic Marketing Dimensions
The Holistic Marketing Concept
 Internal Marketing
 The task of hiring, training, and motivating able employees who want
to serve customers well.
 Integrated Marketing
 Devise marketing activities and assemble fully integrated marketing
programs to create, communicate, and deliver value for the
consumers.
 4Ps and SIVA (Product – Solution; Promotion – Information; Price –
Value; and Place – Access)
 Relationship Marketing
 Aims to build mutually satisfying long-term relationships with key
constituents in order to earn and retain their business
 A marketing network (Customers; Channel; Partners; financiers)
 Socially Responsible Marketing (Performance Marketing)
 Social Responsibility Marketing
 Financial Accountability

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Marketing Mix
All elements within the control of the firm that
communicate the firm’s capabilities and image to
customers or that influence customer satisfaction with
the firm’s product and services:
Product
Price
Place
Promotion
People
Process
Physical Evidence

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4Ps of Marketing

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Emerging Marketing Concepts
Guerilla Marketing
Guerrilla marketing is an advertising strategy in which low-cost
unconventional means (graffiti, sticker bombing, flash mobs) are
utilized, often in a localized fashion or large network of individual
cells, to convey or promote a product or an idea. The term guerrilla
marketing is easily traced to guerrilla warfare which utilizes atypical
tactics to achieve a goal in a competitive and unforgiving environment.
The concept of guerrilla marketing was invented as an unconventional
system of promotions that relies on time, energy and imagination
rather than a big-marketing budget.
The objective of guerrilla marketing is to create a unique, engaging and
thought-provoking concept to generate buzz, and consequently
turn viral.

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Emerging Marketing Concepts
Viral Marketing
Marketing phenomenon that facilitates and encourages people to
pass along a marketing message.
 Viral marketing depends on a high pass-along rate from person to
person. If a large percentage of recipients forward something to a large
number of friends, the overall growth snowballs very quickly. If the
pass-along numbers get too low, the overall growth quickly fizzles.
 Viral marketing, viral advertising, referring to marketing techniques that
use pre-existing  social networks to produce increases in brand awareness or
to achieve other marketing objectives (such as product sales) through self
replicating viral processes. It can be delivered by word of mouth or enhanced
by the network effects of the Internet.
 Viral marketing may take the form of  video clips, interactive Flash Games,
advergames, ebooks, brandable software, images, or text messages.

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Emerging Marketing Concepts
Green Marketing
Green marketing is the marketing of products that are presumed to be
environmentally safe. – AMA
Thus green marketing incorporates a broad range of activities, including
product modification, changes to the production process, packaging changes, as
well as modifying advertising.
Yet defining green marketing is not a simple task where several meanings
intersect and contradict each other; an example of this will be the existence of
varying social, environmental and retail definitions attached to this term.
Other similar terms used are Environmental Marketing and Ecological
Marketing.
Green, environmental and eco-marketing are part of the new marketing
approaches which do not just refocus, adjust or enhance existing marketing
thinking and practice, but seek to challenge those approaches and provide a
substantially different perspective.

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Emerging Marketing Concepts
Experiential marketing
Experiential marketing programs allow consumers to become
active participants in a marketing effort.
Well planned and executed experiential marketing programs
can be very memorable and relevant and can result in a
positive change in consumer behavior (such as making a
purchase) and attitudes (such as changing brand preference).
 Associated with consumer events.
 E.g. sampling and live hands-on product demos allowing
consumers to touch and use a product rather than just hear or
read about it.
 Taking experiences further, experiential marketing programs
may include interesting, fun and relevant activities - both offline
and online - to create positive impact.

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Emerging Marketing Concepts
Digital Marketing
Digital marketing is marketing that makes use of electronic devices
(computers) such as personal computers, smartphones,
cellphones, tablets and game consoles to engage with stakeholders.
Digital marketing applies technologies or platforms such as
websites, e-mail, apps, and social networks.
Two different forms of digital marketing exist:
 Pull digital marketing is characterized by consumers actively seeking
marketing content often via web searches or opening an email, text
message or web feed. Websites, blogs and streaming media (audio and
video) are examples of pull digital marketing.
 Push digital marketing occurs when marketers send messages without
that content being actively sought by the recipients, such as display
advertising on websites and news blogs. Email, text messaging and web
feeds can also be classed as push digital marketing when the recipient
has not actively sought the marketing message.

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Emerging Marketing Concepts
Micro Marketing
The practice of tailoring products and marketing programs
according to the needs and wants of specific individuals
and local customer groups.
Transactional Marketing
A strategy used in business targeting customers in making
"one off" or point of sale transactions. Transactional
marketing has the purpose of maximizing a business’s sales
efficiency by boosting the volume of individual sales
instead of developing an ongoing relationship with the
customer.

 Something on Social Media

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Class Discussion:

 Consider the societal forces noted in the

chapter (e.g., information technology,
globalization, deregulation, consumer
resistance, retail transformation …).
 How have marketing practices shifted to
accommodate and even leverage these forces?

• Does Marketing Create or Satisfy Needs?

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