Introduction to Marketing

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Your thoughts

What do you mean by Marketing?

What comes to your mind?

Narrate your experience as a customer (Good / Bad)

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Definition of Marketing
Marketing is the activity, set of institutions, and
processes for creating, communicating, delivering,
and exchanging offerings that have value for
customers, clients, partners, and society at large.
[Source: American Marketing Association - Approved July 2013]

Who does & What is done Set of institutions |

Activity, processes

Purpose of activity Creating, communicating,
delivering and exchanging offerings

Expectation Value for customers & society
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Overview of Marketing

Exchange Process & Specialized Roles

Exchange enabling actions Marketing Mix
 Setting the Mix
Market Selection
Market Segmentation
Product Differentiation

 Implementing the Mix 4Ps

Marketing Process
 Situation & Environmental Analysis
 Formulating Strategy
 Executing Strategy & Assessing Performance
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Marketing as Exchange

Meaning of exchange
 An act of giving one thing and receiving another in
return.
 synonyms: trade, swap, switch, barter, change,
interchange

Marketing exchanges exhibit three classes of

meanings:
 Utilitarian Exchange
 Symbolic Exchange
 Mixed Exchange
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Marketing as Exchange

Utilitarian Exchange
 Goods given in return for money / other goods
 Foundations of Economic Man

Rational behavior
Utility maximization (satisfaction)
Complete information on alternatives available
Exchanges are free from external influences

Symbolic Exchange
 Mutual transfer of psychological / social / intangible
entities between two or more parties
 People buy things not only for what they can do, but
also for what they mean
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Marketing as Exchange

Mixed Exchange
 Marketing exchanges are mixed exchanges
 Involves both utilitarian and symbolic aspects
 Difficult to separate the two

Marketing (Wo)Man Assumptions






Sometimes rational, sometimes irrational

Motivated by tangible, intangible rewards
Engages in utilitarian & symbolic exchanges
Even if faced with incomplete information, makes at least
rudimentary calculations of cost and benefits associated
with social and economic exchanges
 Exchanges occur under constraints legal, ethical, societal,
normative, coercive etc.
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Exchange Process

Exchanges involve a seller / provider and one or
more buyer(s)

Exchange of Goods [or/and] Services

Common set of exchange conditions:
 Buyers outnumber sellers
 Any individual buyer is weaker than the seller
 Total economic power of buyers can assure business
for sellers [or put them out of business]
 Sellers compete to sway the largest number of buyers
 Sellers modify their behaviors to sway the largest
number of buyers and to counter competition
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Exchange enabling actions Marketing Mix

Who are the customers?

What products do we make?

What price to fix?

What do we do the get the product to customers?

What do we do to make the customers aware of
the product?

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Setting the Mix

Market Selection Process of choosing A market
from the many available to appeal with goods /
services

Market Segmentation Identify potential
customers most accessible to the marketer

Product Differentiation Designing a product to
appeal to the target customers in sync with
market selection & segmentation

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Implementing the Mix 4Ps

Products / Services
Design, Features, Variety, Brand,
Sizes, Services, Quality, Packaging,
Warranties, Returns

Products /
Services

Place
Channels, Coverage, Assortments,
Locations, Inventory, Transport

Promotion
Advertising, Sales Promotion, Digital
Mktg ., Public Relations, Events, Direct
Marketing

Pricing

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Pricing strategy, List price, COGS,

Discounts, Allowances, Credit period,
Credit terms

Place

Promotion

Price

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Push vs Pull Marketing

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Marketing Process
Situation Analysis
(SWOT)





Strength
Weakness
Opportunities
Threat

Environmental
Analysis
 P.E.S.T.E.L. Analysis
 Porters
Five
Forces Model
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Marketing Process

Strategy Formulation
 Fundamental aim is to appeal to the target audience
and differentiate the product / service from
competition

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