The document provides an introduction to key concepts in marketing, including definitions of marketing, the 4 P's of marketing (Product, Price, Place, Promotion), target markets, customer needs and wants, and the exchange process. It also summarizes different philosophies or orientations companies can take towards marketing, such as production, product, and marketing concepts.

1. Introduction to Marketing
To prepare to be a marketer,
one needs to understand
• What Marketing is?
• How it works?
• What is Marketed?
• Who does the Marketing?

2. What Marketing is?
• Marketing deals with identifying and
meeting human and social needs.
• One of the shortest definitions of
marketing is “meeting needs profitably.”

3. Defining Marketing
“Marketing is a societal process by
which individuals and groups obtain
what they need and want through
creating, offering, and freely
exchanging products and services of
value with others.”
- Philip Kotler

4. Some more Definitions:
• “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 stake holders”
-- American Marketing Association

5. Some more Definitions:
• William Stanton: “Marketing is a total
system of business activities designed to
plan, price, promote and distribute want-
satisfying products to target markets to
achieve organizational objectives.”

6. Features/Characteristics of
Marketing
• Regular and continuous activity
• Facilitates satisfaction of human
wants
• Relates to goods and services
• Brings transfer of ownership
• Creates utility

7. Features/Characteristics of
Marketing
• Wider socio-economic
significance
• Importance of 4 Ps
• Evolutionary concept
• Precedes and follows production

8. Conditions of Exchange
• There are at least two parties
• Each party has something of value to the
other party
• Each party is capable of communication and
delivery
• Each party is free to accept or reject the
exchange offer
• Each party believes it is appropriate or
desirable to deal with the other party

9. Adding Degrees of Satisfaction
To
tion Possession utility tal
s fac Sa
tis
S ati Place utility fac
tal tion
To Time utility
Form utility
Oriental rug
Store has it in
stock
Delivered to your
home
Pay with your VISA
card

10. 4 P’s of Marketing

11. Importance of
Marketing

12. Business Organization
• Accomplishment of Objectives
• Widens Markets
• Reputation
• Develop Brand Loyalty
• Introduce New Products
• Face Competition
• Growth and Stability
• Economization of storage

13. Consumers and Society
• Quality products
• Reasonable Prices
• Higher Standard of Living
• Creation of utility
• Spread effect
• Economic Growth and Prosperity

14. Core Concepts of Marketing
Target Markets & Segmentation
Needs, Wants, and Demands
Product or Offering
Value and Satisfaction
Exchange and Transactions
Relationships and Networks
Marketing Channels
Supply Chain
Competition
Marketing Environment

15. Needs and Wants
• Needs are basic human requirements
• Wants are needs directed to specific
objects/services that might satisfy the
need

16. Product
• A product is any offering catered to satisfy
needs and wants.
• A brand is when the product is from a
known source.

17. Demand
• This is the wants for specific products
backed by an ability to pay.

18. Target Market
• Very rarely does a product cater to the
entire market. Most products are designed
to cater to a group of customers who
specifically want such a product. This
group of customers is the target market
which is a slice of the total market. We say
it is the market segment.

19. Value and Satisfaction
• Value = Benefits/Costs
• Benefits = Functional Benefits + Emotional
benefits
• Costs = Monetary costs + Time + Energy
+
Psychic costs

20. Exchange
• Get something (product /service) by
offering something in return.
Eg. kind (barter) or money (value )
• Exchange is a value creating process
because it leaves both parties better off
(win – win situation)

21. Transaction and Transfer
• A transaction is an exchange between two
things of value on agreed conditions and a
time and place of agreement.
• A transfer is a one way exchange without
receiving anything in return.

22. Relationship Marketing
• Building long term mutually satisfying
relations with customers, suppliers,
distributors in order to retain their long
term preference and business

23. Marketing Network
• A marketing network is the relationships
built with its stakeholders. Effective
relationships make up an effective and
strong network.

24. Marketing Channels
• Marketing channels are used to reach the
target segment.
• Communication channels
eg. Advertising, telephone enquiry
system
• Distribution channels – trade, direct sales

25. Supply Chain
• The supply chain represents a value
delivery chain – from procurement of raw
materials to final delivery of product to
consumer.

26. Competition
• Potential and rival substitutes and
offerings a buyer might consider.
• Competition can be viewed in various
perspectives – brand, industry, form,
generic

27. Marketing Environment
• Competition • Product
• Customers • Import tariffs
• Govt. policies • Trends
• Suppliers • Technology
• Trade • Politics

28. Marketing Mix
• It is the tools that an organization employs
to pursue its marketing objectives in the
target market
• Product, Price, Place, Promotion
• 4 C’s – Customer solution, Cost,
Convenience, Communication

29. Concepts under which firms
conduct marketing activities
• Production concept
• Product Concept
• Selling Concept
• Marketing Concept
• Societal marketing Concept

30. Customer needs
• Stated needs
• Real needs
• Unstated needs
• Delight needs
• Secret Needs

31. Company Responses and
Adjustments
• Reengineering • Partner – supplies
• Outsourcing • Market centered
• E – Commerce • Global/local
• Bench marking • Decentralization
• Alliances

32. Simple Marketing System
Communication
Goods/services
Industry Market
(a collection (a collection
of sellers) Money of Buyers)
Information

33. Structure of Flows
Resources Resources
Money Resource Money
markets
Services,
money Taxes,
goods
Services, Taxes
money
Manufacturer Government Consumer
markets markets markets
Taxes,
goods Services
Services, Taxes,
money goods
Money Money
Intermediary
Goods, services markets Goods, services

34. Traditional Organization Chart
Top
Management
Middle Management
Front-line people
Customers

35. Customer-Oriented
Organization Chart
Customers
Front-line people
Middle management
s
C
er
us
om
t
Top
om
t
us
manage-
er
C
s
ment

36. Evolving Views of Marketing’s
Role
Finance
Production
Production Finance
Human
resources
Marketing Human
resources Marketing
a. Marketing as an b. Marketing as a more
equal function important function

37. Evolving Views of Marketing’s
Role
Production on
cti
Fi
du
n
o
an
Pr
ce
Marketing Customer
re
Hu ur
ce M
so
ur an
n ar
s
ma ces
na
ce
ke
so m
F i t in
re Hu
n
g
c. Marketing as the d. The customer as the
major function controlling factor

38. Evolving Views of Marketing’s
Role
Production
Marketing
Customer
re
Hu ur
so
ce
ma ces
an
n
Fin
e. The customer as the controlling
function and marketing as the
integrative function

39. Concepts of Marketing
(Company Orientations Towards the
Marketplace)

40. Company Orientations Towards the
Marketplace ( Concepts of Marketing)
• Exchange Concept
• Production Concept
• Product Concept
• Selling Concept
• Marketing Concept
• Societal Concept
• Holistic Marketing Concept

41. Company Orientations Towards the
Marketplace ( Concepts of
Marketing)
Focuses on exchange of goods
Exchange Concept and services
Supply of Goods
Producers Consumers
Money Flow

42. Company Orientations Towards the
Marketplace ( Concepts of
Marketing)
Treats large scale production
as the base of marketing.
Consumers prefer products that are
Production Concept widely available and inexpensive
Production cost is reduced
Producers Consumers
Large Scale Goods,
Production Imposed
Wide Choice of Goods

43. Company Orientations Towards the
Marketplace ( Concepts of
Marketing)
Consumers favor products that
offer the most quality,
Product Concept performance,
or innovative features
Product Excellence
Producers
Products with Consumers
Better quality Likes & Dislikes
& performance considered
Better Quality attracts

44. Company Orientations Towards the
Marketplace ( Concepts of
Marketing)
Consumers will buy products only if
Selling Concept the company aggressively
promotes/sells these products
Producers
Consumers

45. Company Orientations Towards the
Marketplace ( Concepts of
Marketing)
Focuses on needs/ wants of target
Marketing Concept markets & delivering value
better than competitors
Production cost is reduced
Producers Consumers
Large Scale Goods,
Production Imposed
Wide Choice of Goods

46. Company Orientations Towards the
Marketplace ( Concepts of
Marketing)
Equal weightage to three parties
Societal Concept Consumers, Company and Society
Society
Producers Consumers
Large Scale Goods,
Production Imposed

47. Company Orientations Towards the
Marketplace ( Concepts of
Marketing)
Attempts to recognize and
Holistic Marketing reconcile
Concept The scope and complexities
of marketing activities

48. Internal Integrated
Marketing Marketing
Holistic
Marketing
Socially
Relationship
Responsible
Marketing
Marketing

49. Internal Marketing
• Marketing Department
• Senior Management
• Other Departments

50. Integrated Marketing
• Communication
• Products and Services
• Channels

51. Relationship Marketing
• Customers
• Channel
• Partners

52. Socially Responsible
Marketing
• Ethics
• Environment
• Legal Framework
• Community

53. Selling and Marketing
Selling Marketing
• Selling starts with seller • Marketing starts with
& is preoccupied all the the buyer and focuses
time with the needs of constantly on the needs
the seller of the buyer
• Emphasizes on saleable
surplus available with • Emphasizes on
the company identification of market
opportunity

54. Selling and Marketing
Selling Marketing
• Seeks to convert • Seeks to convert
products in to cash customer needs in to
products
• Views business as – a
• Views business as – customer satisfying
goods producing process
process • Marketing views the
• Selling views the customer as the very
customer as the last link purpose of business
in the business

55. Shifts in Marketing Management
• From marketing does marketing to
everyone does the marketing
• From organizing by product units to
organizing by customer segments
• From making everything to buying more
goods and services from outside
• From using many suppliers to working
with fewer suppliers in a “Partnership”

56. Shifts in Marketing Management
• From relying on old market positions to
uncovering new ones
• From emphasizing tangible assets to
emphasizing intangible assets (brands,
customer base, employees, distributors
and supplier relations and intellectual
capital)
• From building brands through advertising
to building brands through performance
and integrated communications (IMC
Mix)

57. Shifts in Marketing Management
• From attracting customers through stores
and salespeople to making products
available online
• From selling to everyone to trying to be
the best firm serving well defined target
markets
• From focusing on profitable transactions
to focusing on customer lifetime value

58. Shifts in Marketing Management
• From a focus on gaining market share to a
focus on building customer share
• From being local to being “Glocal” – both global
and local
• From focusing on the financial scorecard to
focusing on the marketing scorecard (market
share, customer loss rate, customer
satisfaction, product quality etc)
• From focusing on shareholders to focusing on
stakeholders