1. MODULE 1
DEFINING MARKETING
FOR THE 21ST CENTURY

2. Market
 The term “Market” originates from Latin noun
„Marcatus‟ which means a place where business are
conducted.
 Place concept: as a convenient meeting place, where
buyers and sellers gather together.
 Area Concept: it is known as Economic concept to
meet “Unmet wants, Products to meet demand &
Means of interaction”
 Demand Concept: it is known as Total
Demand, hence group of people having unmet
wants, purchasing power to make their demand
effective to fulfill.2
Prof. Raghavendran V, Dept of
MBA, AIET, Mijar

3. Good Marketing is No Accident
 The roaring success
of four-wheeler Tata
Nano, in a market
earlier dominated by
Four-wheeler
Vehicles, was due to
a deep
understanding of the
market needs and
customer
requirements.
3
Prof. Raghavendran V, Dept of
MBA, AIET, Mijar

4. Importance of marketing
 Success often depends on marketing ability.
Finance, operations, accounting and other
business functions will not really matter, if
there is no sufficient demand for products and
services so the company can make a profit.
4
Prof. Raghavendran V, Dept of MBA, AIET,
Mijar

5. What is Marketing?
 According to American Management
Association 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.
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Prof. Raghavendran V, Dept of
MBA, AIET, Mijar

6. Nature of Marketing
Prof. Raghavendran V, Dept of
MBA, AIET, Mijar6
 It is both consumer and competitors oriented.
 It starts with consumers and ends with
consumers.
 Important function of management.
 Long term objective is to make profit
maximization.
 Integrated process based on strategies and
models.
 It must deliver goods & services in exchange of
money.

7. Scope of Marketing
Prof. Raghavendran V, Dept of
MBA, AIET, Mijar7
 Scope is very wide, must be analyzed in terms of
marketing performance through various function.
Marketing Functions
Functions of Exchange Buying, Assembling, Selling
Functions of Physical Distribution
Transportation, Inventory, Warehousing, Material
Functions of Facilities
Financing, Insurance, Standardization, After sales
Services

8. 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.
8
Prof. Raghavendran V, Dept of
MBA, AIET, Mijar

9. 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.”
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Prof. Raghavendran V, Dept of MBA, AIET,
Mijar

10. Exchanges and Transactions
A person can obtain a product in one of four ways
and they are……. i.e.
1.One can produce for himself
2.One can force to get the product (Robbery)
3.One can beg (Homeless), lastly
4.One can offer a product in EXCHANGE of
money/ any other products.
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Prof. Raghavendran V, Dept of
MBA, AIET, Mijar

11. Exchange
 Exchange is the core concept of marketing. It is
process of obtaining a desired product from
someone by something in return. For any
exchanges 5conditions must be satisfied and they
are:
1. There are at least 2 parties.
2. Each party has something that might value to
the other party.
3. Each party is capable of communication &
delivery.
4. Each party is free to accept or reject the
exchange offer
5. Each party believes it is appropriate to deal with11
Prof. Raghavendran V, Dept of MBA, AIET,
Mijar

12. Transaction
 When an agreement is reached between two
parties, we say that a transaction take place.
Transaction is a trade of values between two or
more parties.
Then what is transfer??
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Prof. Raghavendran V, Dept of MBA, AIET,
Mijar

13. What is Marketed?
Goods
Services
Events & Experiences
Persons
Places & Properties
Organizations
Information
Ideas
13
Prof. Raghavendran V, Dept of
MBA, AIET, Mijar

14. Successful New Product Launches
Require Careful Planning
14
Prof. Raghavendran V, Dept of
MBA, AIET, Mijar

15. Marketing Can Promote Ideas
15
Prof. Raghavendran V, Dept of MBA, AIET,
Mijar

16. A Simple Marketing System
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Prof. Raghavendran V, Dept of
MBA, AIET, Mijar

17. Structure of Flows in a Modern Exchange Economy
17
Prof. Raghavendran V, Dept of MBA, AIET,
Mijar

18. Who markets?
A marketer is someone who seeks a response
from another party, called the prospect.
Marketers are responsible for demand
management.
18
Prof. Raghavendran V, Dept of MBA, AIET,
Mijar

19. Demand States
Nonexistent Latent
Declining Irregular
Full UnwholesomeOverfull
Negative
19
Prof. Raghavendran V, Dept of MBA, AIET,
Mijar

20. Key Customer Markets
Consumer Markets
Business Markets
Global Markets
Nonprofit/ Government Markets
20
Prof. Raghavendran V, Dept of
MBA, AIET, Mijar

21. www.marutitruevalue.com
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Prof. Raghavendran V, Dept of
MBA, AIET, Mijar

22. Functions of Chief Marketing Officers
 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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Prof. Raghavendran V, Dept of
MBA, AIET, Mijar

23. Improving CMO Success
 Make the mission and responsibilities clear
 Fit the role to the marketing culture and
structure
 Ensure the CMO is compatible with the CEO
 Remember that show people don‟t succeed
 Match the personality with the CMO type
 Make line managers marketing heroes
 Infiltrate the line organization
 Require right-brain and left-brain skills
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Prof. Raghavendran V, Dept of
MBA, AIET, Mijar

24. Core Marketing Concepts
 Needs, wants, and
demands
 Target
markets, positioning
, segmentation
 Offerings and
brands
 Value and
satisfaction
 Marketing channels
 Supply chain
 Competition
 Marketing
environment
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Prof. Raghavendran V, Dept of
MBA, AIET, Mijar

25. New Consumer Capabilities
 A substantial increase in buying power
 A greater variety of available goods and
services
 A great amount of information about
practically anything
 Greater ease in interacting and placing and
receiving orders
 An ability to compare notes on products and
services
 An amplified voice to influence public opinion
25
Prof. Raghavendran V, Dept of MBA, AIET,
Mijar

26. Company Orientations/Concepts of
Marketing
Prof. Raghavendran V, Dept of MBA, AIET,
Mijar26
 Since Industrial Revolution, Business
management has undergone 6 (4) distinct
concepts of Marketing.
 The exchange orientations
 The production orientation
 The product orientation
 The sales orientation
 The Marketing orientation
 Societal Marketing orientation

27. Holistic Marketing Dimensions
27
Prof. Raghavendran V, Dept of
MBA, AIET, Mijar

28. RBC emphasizes a
relationship marketing approach
Prof. Raghavendran V, Dept of MBA, AIET,
Mijar28

29. The Four P‟s
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Prof. Raghavendran V, Dept of
MBA, AIET, Mijar

30. Internal Marketing
Internal marketing is the task of
hiring, training, and motivating able employees
who want to serve customers well.
30
Prof. Raghavendran V, Dept of
MBA, AIET, Mijar

31. Performance Marketing
Prof. Raghavendran V, Dept of
MBA, AIET, Mijar31
 Financial Accountability
 Social Responsibility Marketing
 Social Initiatives
 Corporate social marketing
 Cause marketing
 Cause-related marketing
 Corporate philanthropy
 Corporate community involvement
 Socially responsible business practices

32. Marketing Management Tasks
 Develop market strategies and plans
 Capture marketing insights
 Connect with customers
 Build strong brands
 Shape market offerings
 Deliver value
 Communicate value
 Create long-term growth
32
Prof. Raghavendran V, Dept of
MBA, AIET, Mijar

33. Prof. Raghavendran V, Dept of MBA, AIET,
Mijar
Analyzing the Environment :Needs
and Trends
Fad
Trend
Megatrend

34. Prof. Raghavendran V, Dept
of MBA, AIET, Mijar
Trends Shaping the
Business Landscape
 Profound shifts in
centers of economic
activity
 Increases in public-
sector activity
 Change in consumer
landscape
 Technological
connectivity
 Scarcity of well-trained
talent
 Increase in demand for
natural resources
 Emergence of new
global industry
structures
 Ubiquitous access to
information
 Management shifts from
art to science
 Increase in scrutiny of
big business practices
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35. Prof. Raghavendran V, Dept
of MBA, AIET, Mijar
Marketing Micro Environmental
Forces
Producers
Manufacturers
Suppliers/
Middlemen
Customers
Competitors
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Public

36. Prof. Raghavendran V, Dept
of MBA, AIET, Mijar
Marketing Macro Environmental
Forces
Demographic
EconomicPolitical-Legal
Socio-CulturalTechnological
Natural
36

37. Prof. Raghavendran V, Dept
of MBA, AIET, Mijar
Population and Demographics
 Population growth
 Population age mix
 Ethnic markets
 Educational groups
 Household patterns
 Geographical shifts
37

38. Prof. Raghavendran V, Dept
of MBA, AIET, Mijar
Mobilink-
Disney D 100
Mobile Phone
38

39. Prof. Raghavendran V, Dept
of MBA, AIET, Mijar
Population Age Groups
Preschool
School-age
Teens
25-40
40-65
65+
39

40. Prof. Raghavendran V, Dept of MBA, AIET,
Mijar
Household Patterns

41. Prof. Raghavendran V, Dept of
MBA, AIET, Mijar
Economic Environment
 Income Distribution
 Savings, Debt, and
Credit
 Levi’s has responded to
changes in income
distribution by offering
an upscale line and a
mass market line

42. Prof. Raghavendran V, Dept
of MBA, AIET, Mijar
Social-Cultural Environment
Views of themselves
Views of others
Views of nature
Views of organizations
Views of society
Views of the universe
42

43. Prof. Raghavendran V, Dept
of MBA, AIET, Mijar
Islamic Banking: Reflecting Religious
and Cultural Sensitivities
• Consistent with principles of Islamic Laws
(Shariah)
• Prohibits investing in business that are considered
unlawful
• Growth is due to disenchantment with value-
neutral capitalist and socialist financial systems
• Popular in Pakistan and Bangladesh,
• National and international banks want to start
Islamic banking in India
43

44. Prof. Raghavendran V, Dept
of MBA, AIET, Mijar
Cartoon Network‟s New Generation
Survey
 Achieving good grades at school – all respondents
 Looking good – 90% of respondents
 Being religious/traditional – 84% of respondents
 Having boyfriend/girlfriend – 40% of respondents
 Career aspirations – One-third wanted to be
doctor, 21% of wanted to be engineer
44

45. Prof. Raghavendran V, Dept
of MBA, AIET, Mijar
Natural Environment
Shortage of
raw materials
Increased
energy costs
Anti-pollution
pressures
Governmental
protections
45

46. Prof. Raghavendran V, Dept
of MBA, AIET, Mijar
Toyota Experienced Success
with Green Cars
46

47. Prof. Raghavendran V, Dept
of MBA, AIET, Mijar
Consumer
Environmental Segments
True Blue Greens (30%)
Greenback Greens (10%)
Sprouts (26%)
Apathetics (18%)
Grousers (15%)
47

48. Prof. Raghavendran V, Dept
of MBA, AIET, Mijar
Keys to Avoiding
Green Marketing Myopia
 Consumer Value Positioning
 Calibration of Consumer Knowledge
 Credibility of Product Claims
48

49. Prof. Raghavendran V, Dept
of MBA, AIET, Mijar
Technological Environment
Pace of change
Opportunities
for innovation
Varying R&D
budgets
Increased regulation
of change
49

50. Prof. Raghavendran V, Dept
of MBA, AIET, Mijar
Political-Legal Environment
Increase in
business legislation
Growth of special
interest groups
50

51. Marketing Debate:
Take a Position!
Does marketing shape consumer needs?
or
Does marketing merely reflect the needs and wants
of consumers?
51
Prof. Raghavendran V, Dept of MBA, AIET,
Mijar

52. Assignment Time:
1. Why is marketing important?
2. What is the scope of marketing?
3. What are some fundamental marketing
concepts?
4. How has marketing management changed?
5. What are the tasks necessary for successful
marketing management?
6. Explain in detail of company orientations.
7. Explain in detail of the all forces contributing to
macro environment.
8. What are some important micro environment
developments
9. Explain the challenges faced at globalized
marketing scenario?
52
Prof. Raghavendran V, Dept of
MBA, AIET, Mijar