An Overview of Marketing

and Marketing Management

“You already know a lot about marketing-it’s all

around you”

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 What is Marketing?
• Many people think of marketing as only
selling and advertising.
• However, selling and advertising are only the
tip of the marketing iceberg.
• Today, marketing must be understood not in
the old sense of making a sale—“telling and
selling”—but in the new sense of satisfying
customer needs
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 Con’t…
• According to management guru Peter
Drucker, “The aim of marketing is to make
selling unnecessary”.
• Selling and advertising are only part of a
larger “marketing mix”—a set of marketing
tools that work together to satisfy customer
needs and build customer relationships.

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 Con’t…
• Marketing is managing profitable customer
relationships.
• The aim of marketing is to create value for
customers and capture value from
customers in return.

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 Simple Marketing System

Communication

Goods/services
Industry Market
(a collection (a collection
of sellers) Money of Buyers)

Information 5
 Con’t…
• The AMA definition:
“Marketing 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 objectives.”

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1.1 Core Concepts of Marketing

Needs, Wants, and Demands

Product or Offering
Value and Satisfaction
Exchange and Transactions
Relationships and Networks

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 Con’t….
 Needs, Wants and Demand
•Needs describe basic human requirements such
as food, air, water, clothing, shelter, recreation,
education, and entertainment.
•Needs become wants when they are directed to
specific objects that might satisfy the need. (Fast
food)
• Wants are the form human needs take as they
are shaped by culture and individual personality.
•Wants are how people communicate their needs.
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 Con’t…
• Demands are wants for specific products
backed by an ability to pay.
• Demands= wants + purchasing power
• When backed by buying power, wants
become demands.

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 Con’t…
• A Product is any thing that can be offered
to satisfy a need or want.
• Market offering is some combination of
products, services, information, or
experiences offered to a market to satisfy a
need or want

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 Con’t…
 Value, satisfaction and Quality
• Value:- the difference between benefits that
the customer gains from owning /or using a
product and the costs of obtaining the
product.

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 Con’t…

Value= benefit
costs
= functional benefits + emotional benefits
monetary costs+ time costs + energy
costs+ psychic costs

“Save money, live better”….Walmart

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 Con’t…
How can we enhance Value?
• Marketers can enhance the value of an
offering to the customer by:
– Raising benefits
– Reducing costs
– Raising benefits while lowering costs
– Raising benefits by more than the increase
in costs
– Lowering benefits by less than the
reduction in costs
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Value propositions: Smart car suggests that you “open your
mind”—“Sorry, big guy. Efficiency is in these days.”

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 Customer Value

Customer lifetime
value: To keep
customers coming
back, Stew Leonard’s
has created the
“Disneyland of Dairy
Stores.”
Rule #1—The customer
is always right.
Rule #2—If the
customer is ever
wrong, reread Rule #1.
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 Con’t…
• Satisfaction:-depends on the a product’s
perceived performance in delivering value
relative to a buyers expectation.
• Quality:- has a direct impact on
product/service performance.
• TQM… Quality begins with customer needs
and ends with customer satisfaction.

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 Con’t…
Exchange, Transaction and Relationships
• Exchange involves obtaining a desired product
from someone by offering something in return.
It is the act obtaining a desired object from
someone by offering something in return.
• Marketing consists of actions taken to build and
maintain desirable exchange relationships with
target audiences involving a product, service,
idea, or other object.

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• Transaction involves at least two things of
value, agreed-upon conditions, a time of
agreement, and a place of agreement.
• It consists of the trade of value between two
parties.
• Relationship marketing aims to build long-
term mutually satisfying relations with key
parties, which ultimately results in
marketing network between the company
and its supporting stakeholders.
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 Con’t…
Market, Marketer and Prospect
• A Market is the set of all actual and potential
buyers of a product or service.
• A marketer is someone seeking a response
(attention, a purchase, a vote, a donation)
from another party called prospect.

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1.2 Company Orientations to
Marketing/Marketing Philosophies

Consumers prefer products that are

Production
Production Concept
Concept widely available and inexpensive

Consumers favor products that

Product
Product Concept
Concept offer the most quality, performance,
or innovative features

Consumers will buy products only if

Selling
Selling Concept
Concept the company aggressively
promotes/sells these products

Focuses on needs/ wants of target

Marketing
Marketing Concept
Concept markets & delivering value better
than competitors
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 Difference b/n selling and
marketing concept
Starting
point Focus Means Ends

Existing Selling and Profits through

Factory products promotion sales volume

(a) The selling concept

Customer Integrated Profits through

Market needs marketing customer
satisfaction

(b) The marketing concept

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 The Societal Marketing Concept
 The societal marketing concept questions
whether the pure marketing concept overlooks
possible conflicts between consumer short-run
wants and consumer long-run welfare.
 The societal marketing concept holds that
marketing strategy should deliver value to
customers in a way that maintains or improves both
the consumer’s and society’s well-being.
 It calls for sustainable marketing, socially and
environmentally responsible marketing that meets
the present needs of consumers and businesses
while also preserving or enhancing the ability of
future generations to meet their needs.

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 1.3 Importance of Marketing
•Marketing is a very important aspect in
business since it contributes greatly to the
success of the organization
•Production and distribution depends largely
on marketing
•Marketing promotes product awareness to
the public
•Marketing builds company reputation
•Marketing helps boost product sales
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 1.4 Scope of marketing
Marketing people are involved in marketing
10 types of entities
• Goods • Places
• Services • Properties
• Experiences • Organizations
• Events • Information
• Persons • Ideas
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1.5 The goals of marketing System
• Maximizing consumption
• Maximizing Satisfaction
• Maximizing choices
• Maximizing life quality

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 Evolution to Marketing
• Marketing evolves with time and changes its system
with the current business scenario
• Following are some of the changes

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 The Four Ps
The Four Cs

Marketing
Mix

Product Place

Customer Conven-
Solution Price Promotion ience

Customer Communication
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Cost
Traditional Organization Chart

Top
Management

Middle Management

Front-line people

Customers

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Customer-Oriented Organization Chart

Customers

Front-line people

Middle management

s
Cu

er
st

om
om

Top

st
management
er

Cu
s

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Evolving Views of Marketing’s Role

Production Finance
Production Finance
Human
Human resources
Marketing resources
Marketing

a. Marketing as an
equal function b. Marketing as a more
important function30
 Con’t…

Production n
ti o
c

Fi
u

na
od
Pr

nc
Marketing

e
re
Hu ur

c e Customer
so

n
ma ces

na M

ur an
i ar

s
F
n

ce
ke

so m
tin

re Hu
g
c. Marketing as the
major function
d. The customer as the
controlling factor31
 Con’t…

Production

Marketing

Customer
re
Hu ur
so

e
ma ces

nc
a
n

i n
F

e. The customer as the controlling

function and marketing as the
integrative function 32
 Thank you
Questions and Comments

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