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1. Defining Marketing
for the new realities
1

2. Chapter Questions
 Why is marketing important?
 What is the scope of marketing?
 What are some fundamental marketing
concepts?
 How has marketing management changed?
 What are the tasks necessary for successful
marketing management?

3. 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.

4. 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.

5. What is Marketed?
• Goods
• Services
• Events
• Experiences
• Persons

6. What is Marketed?
• Places
• Properties
• Organizations
• Information
• Ideas

7. Key concepts
 Segmentation?
 Target Market?
 Positioning?

8. Key concepts
 Needs?
 Wants?
 Demands?

9. Company Orientations
Production
Product
Selling
Marketing
Societal

10. The Marketing Management
Concepts
 Production Concept
 Widely available and of low cost without
considering needs of the customer
 eg Standard raw materials.
1-10

11.  Product Concept
 Consumers favor products that offer the most
quality, performance, or innovative features.
Eg Apple, Samsung, Honda etc
1-11

12.  Selling Concept
 Consumers will buy products only if the
company aggressively promotes or sells these
products.
 Examples?
1-12

13.  Marketing Concept
Focuses on needs/wants of target markets &
delivering value better than competitors. The
marketing concept believes in the pull
strategy.
 Eg customized cakes
 BYOB
 Subway
 Frozen foods etc

14.  Societal concept
 The societal marketing is a marketing
concept that holds that a company should
make marketing decisions by considering
society's well being as well.
1-14

15. Demand States
 Negative
 Nonexistent
 Latent
 Declining
 Irregular
 Unwholesome
 Full
 Overfull

16.  Negative demand: consumers dislike the
product and may even pay to avoid is a type of
demand which is created if the product is
disliked in general. The product might be
beneficial but the customer does not want it.
 Declining demand is when demand for a
product is declining. For example, when CD
players were introduced and IPOD came in the
market, the demand for walkman went down

17.  Irregular demand: Irregular demand can be demand
which is not consistent. products like umbrellas, air
conditioners or resorts. These products sell irregularly
and sell more during peak season whereas their
demand is very low during non seasons.
 Unwholesome demand: It is demand for things that
most people perceive as bad. They may be bad, for
your health, or perhaps they are a danger to society.
When there is unwholesome demand for a product,
there are efforts to discourage consumers from
purchasing it. Products such as cigarettes and
alcoholic drinks have serious health risks.

18.  Full demand: the demand is meeting with the
supply potential of the company. In an ideal
environment company should always have full
demand.
 Overfull demand: When the demand is more
than the supply of the company.

19.  Non existent demand: consumers may be
unaware of or uninterested in the product. for
example- College students may not be
interested in a foreign language course.
Family planning is a non-existent demand for
rural people.

20.  Latent demand: as the name suggests, a
demand which the customer realizes later.
Thus, while buying the product, he might not
desire some features. But later on, he might
think about those features
 One of the best known examples of latent
demand is smartphones. Initially a phone was
used just for calling and texting. As consumers
demanded, more and more features like radio,
internet connectivity, touchscreen etc. began
to be added to the product. Thus the transition
took place from basic phones to feature
phones to smart phones.

21. Figure 1.1 Structure of Flows in
Modern Exchange Economy

22. Figure 1.2
A Simple Marketing System

23. Key Customer Markets
 Consumer markets
 Business markets
 Global markets
 Nonprofit/Government markets

24. Core Concepts
 Needs, wants, and
demands
 Target markets,
positioning,
segmentation
 Offerings and
brands
 Value and
satisfaction
 Marketing channels
 Supply chain
 Competition
 Marketing
environment
 Marketing planning

25. Types of Needs
Stated
Real
Unstated
Delight
Secret

26.  Stated Needs: Which is explicitly expressed
by the buyer to the consumer
 Unstated Needs - Which Buyer assumed that
it will be fulfilled by default
 Delight. Needs that are not essential but
would delight if met. Unexpected: needs that
are not expected or required, but would delight
the customer.
 Real Needs are rational needs are consumer
preferences or selections based upon
objective measures or a conscious, logical
reason
 Secret Needs that the customer does not
express, largely because they're intangible

27. . Stated needs (The customer wants an inexpensive car.)
2. Real needs (The customer wants a car whose operating cost, not initial
price, is low.)
3. Unstated needs (The customer expects good service from the dealer.)
4. Delight needs (The customer would like the dealer to include an onboard
GPS navigation
system.)
5. Secret needs (The customer wants friends to see him or her as a
knowledgable consumer.)

28. Target Markets,
Positioning & Segmentation

29. Offerings and Brands

30. Value and Satisfaction

31. Marketing Channels
Communication
Distribution
Service

32. Marketing Environment
Demographic Economic
Socio-cultural
Natural
Technological
Political-legal

33. Major Societal Forces
 Network information
technology
 Globalization
 Deregulation
 Privatization
 Heightened competition
 Industry convergence
 Retail transformation
 Disintermediation
 Consumer buying power
 Consumer participation
 Consumer resistance

34.  Holistic marketing acknowledges that
everything matters in marketing—and that a
broad, integrated perspective is often
necessary.
 In which you consider business as a whole
and not as an entity with various different
parts.

35. Holistic Marketing

36. Relationship Marketing
Customers
Employees
Marketing Partners
Financial Community

37.  Four key constituents for relationship
marketing are customers, employees,
marketing partners (channels, suppliers,
distributors, dealers, agencies), and members
of the financial community (shareholders,
investors, analysts).
 Marketers must create prosperity among all
these constituents and balance the returns to
all key stakeholders. To develop strong
relationships with them requires understanding
their capabilities and resources, needs, goals,
and desires

38. Integrated Marketing

39. Integrated Marketing
 Delivering consistent and relevant content
across all channels,
 Develop and manage communication
campaigns that integrate advertising , PR,
sales promotion etc to deliver consistent
message.

40. Internal Marketing
Internal marketing is the task of
hiring, training, and motivating able employees
who want to serve customers well.

41. Performance Marketing
Financial
Accountability
Social Responsibility
Marketing

42. Types of
Corporate Social Initiatives
 Corporate social marketing
 Cause marketing
 Cause-related marketing
 Corporate philanthropy
 Corporate community involvement
 Socially responsible business practices

43. The Marketing Mix

44. The New Four Ps
Processes
People
Programs
Performance

45. People
 People reflects, in part, internal marketing and
the fact that employees are critical to
marketing success. Marketing will only be as
good as the people inside the organization.
 The customers: in order to develop a truly
efficient marketing strategy, marketers need to
see their present and future clients as people
– thus underlining the importance of
understanding the complexity of consumer
behavior;

46. Process
 Process reflects all the creativity, discipline,
and structure brought to marketing
management.
 How everything fits together and how it
reaches to the customer & how effectively
everything is managed. The actual
procedures, mechanisms, and flow of activities
by which the service is delivered – this service
delivery and operating systems.

47. Programs
 Programs reflects all the firm’s consumer-
directed activities.
 It reflects all the old 4P’s and many other
marketing activities required to market a
product or service. Regardless of that they are
online or offline, traditional or nontraditional
the integration of all these activities is
absolutely necessary in order to reach a
higher development of the company.

48. Performance
 Performance of the new 4 Ps is looking at how
well a product is doing from a financial and
non-financial standpoint

49. 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

50. For Review
 Why is marketing important?
 What is the scope of marketing?
 What are some fundamental marketing
concepts?
 How has marketing management changed?
 What are the tasks necessary for successful
marketing management?