MARKETING

WHATS MARKETING IS ALL ABOUT

A HUMAN ACTIVITY DIRECTED AT SATISFYING
NEEDS AND WANTS THROUGH EXCHANGE
PROCESSES

PHILIP KOTLER

IT IS THE PERFORMANCE OF BUSINESS ACTIVITIES

THAT DIRECT THE FLOW OF GOODS AND SERVICES
FROM PRODUCER TO CONSUMERS
AMERICAN MARKETING ASSOCIATION

MARKETING CONTINUED
IT IS THE PROCES OF

IDENTIFYING CUSTOMER NEEDS

CONCEPTUALISING THOSE NEEDS IN TERMS OF AN

ORGANISATIONS CAPACITY TO PRODUCE.

CONCEPTUALISING THE CONSEQUENT OUTPUT IN TERMS OF

THE CUSTOMER NEEDS EARLIER IDENTIFIED, AND

COMMUNICATING THAT CONCEPTUALISATION TO

THE CUSTOMER
JOHN.A. HOWARD
COLUMBIA UNIVERSITY 1973

What is Marketing?
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.

More simply: Marketing is all about satisfying

needs (...profitably and fairly)!!!

Marketing is a process by which companies
create value for customers and build strong
customer relationships to capture value from
customers in return

What is Marketing?
Marketing is an organizational function
and a 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.

Marketing is an Exchange of Value

An exchange is the process by which some

transfer of value occurs between a buyer

and a seller.

At least two people or organizations must be

willing to make a trade, and

Each must have something the other values.
Most exchanges occur in the form of a
monetary transaction.

Designing a Customer-Driven
Marketing Strategy
Marketing management is the art and
science of choosing target markets and
building profitable relationships with them
What customers will we serve?
How can we best serve these customers?

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

Good Marketing is No Accident

The roaring
success of fourwheeler 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.

UNDERSTANDING MARKETING

Marketing: The process of finding customer

needs and serving those needs profitably

Profit from customer
satisfaction
Provide desired value to
customers
Retain customers to enhance
profitability
Is a central business function

What is Marketed?
Goods
Goods
Services
Services
Events
Events &
& Experiences
Experiences
Persons
Persons
Places
Places &
& Properties
Properties
Organizations
Organizations
Information
Information
Ideas
Ideas

Marketing Can Promote Ideas

Add of Honda Accord

Incredible India

Demand States
Negative

Nonexistent

Declining

Full

Latent

Irregular

Overfull

Unwholesome

Structure of Flows in a Modern Exchange

Economy

A Simple Marketing System

Key Customer Markets

Consumer Markets

Business Markets

Global Markets

Nonprofit/ Government
Markets

Functions of CMOs
Strengthening the brands
Measuring marketing effectiveness
Driving new product development based on

customer needs
Gathering meaningful customer insights
Utilizing new marketing technology

Core Marketing Concepts

Needs, wants, and

demands
Target markets,
positioning,
segmentation
Offerings and
brands

Value and satisfaction

Marketing channels
Supply chain
Competition
Marketing environment

Needs

and

Wants

Needs comprise the basic requirements

for the existence of life, such as food,

clothing, shelter, and belongingness. A
want arises when the basic needs are
satisfied.

Do Marketers create
need??

Marketers with other social factors

influence wants, marketers might promote

the idea but they do not create needs.

Core Marketing Concepts

Needs, wants, and

demands
Target markets,
positioning,
segmentation
Offerings and
brands

Value and satisfaction

Marketing channels
Supply chain
Competition
Marketing environment

Positioning
Press ads of the
Scorpio focused on
the functional
features of the
vehicle and the
television ads
focused on
emotional
benefits.

When Did Marketing Begin?

Most Efficient Production &
Distribution
Sellers Market
Marketing as a Sales Function
Buyers Market

Satisfies Customers Needs

and Wants
Total Quality
Benefits to Customers, Plus
Firms Employees,
Shareholders, and Communities.

Product
Product Orientation
Orientation
Selling
Selling Orientation
Orientation
Customer
Customer Orientation
Orientation
New
New Era
Era Orientation
Orientation

Evolution of Marketing
Production Era (From 17th century to the
late 1920s) :
Manufacturing was given importance.
Product features were not a priority as it was
believed that customers were concerned only
about the availability of the product.

The
FirstPILLSBURY
Era in 1869 - 1930s.
The idea for the formation of the
company came from the
availability of high quality wheat
and the proximity of water power
NOT from the availability and
proximity of growing major market
areas or the demand for better less
expensive, more convenient flour
products.
The principal concern here was
with PRODUCTION

Contd
Sales Era (From the late 1920s to mid 1950s)
:

Selling their products using advertising,

promotion and distribution strategies.

The
PILLSBURY
In this
Era The companys
Philosophy might have been stated
as: We are professional flour
millers. Blessed with a supply of the
finest North American wheat,
plenty of water power, and
excellent milling machinery, we
produce flour of high quality. Our
basic function is to mill high quality
flour, and of course we must hire
salesman to sell it just as we hire
accountants to keep our books.

The PILLSBURY

Second Era in 1930s 60s (Sales

Orientation).
This was the era of sales when for
the first time the co began to be
highly conscious of the consumer,
her wants and her prejudices as a
key factor in business equation. The
first step along the road to become a
marketing company has been taken.
The principal concern here was with
SALES.

Contd
Marketing Era (From mid 1950s
onwards) :
Companies changed their approach from a
selling perspective to a marketing approach.
Instead

of merely selling their products,

companies began to understand the needs of
the customer and attempt to satisfy them.

The
PILLSBURY
In this Era The companys Philosophy
might have been stated as: We are a
flour milling company, manufacturing a
number of products for the consumer
market. We must have a first rate sales
organization which can dispose of all the
products we can make at a favorable
price. We must back up this sales force
with consumer advertising and market
intelligence. We want our salesman and
our dealers to have all the tools they
need for moving the output of our plants
to the consumer.

The PILLSBURY

Second Era in 60s and beyond (Marketing

Orientation).
This was the era of product research and
for the first time co felt the need to select
the best new products. The first step the
co took to set up a marketing department
which developed criteria for determining
which products to market. The criteria was
nothing more or less than those of the
consumer itself.
The principal concern here was with
Consumer Markets