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
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
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.
Needs, Wants and Demands
• Needs – Basic Human Requirements
• Wants – Directed at specific objects
• Demands – Backed by ability to pay
Target Markets, Positioning & Segmentation
Offerings and Brands
• Offering – Value Proposition made Tangible
• Brand – Offering from a known source
Value & Satisfaction
• Value – Benefits / Cost
• Customer Value Triad – Quality, Service and Price
• Satisfaction – Product’s perceived performance
• Communication Channel – Deliver & Receive message
• Distribution Channel – Display, sell & Deliver
• Service Channel – Carry out transactions
• Oldest Concept
• Consumers will prefer products that are widely available &
• Concentrate on achieving high production efficiency, low
costs and mass distribution
• Eg: - Lenovo and Haier in China
The Production Concept
• Consumers favor products that offer most quality,
performance and innovative features.
• Make superior products and improve them over time.
• Caught in a “love-affair” with their product.
The Product Concept
• Consumers, if left alone, wont buy enough of the
• Must undertake an aggressive selling and promotion effort.
• Practiced most aggressively with unsought goods.
• Eg:- Insurance & Encyclopedias.
• Aim is to sell what they make rather than make what the
The Selling Concept
• Customer Centered instead of Product Centered.
• Not to find right customers for your products, but to find
right products for your customers.
• Eg:- Dell
• Reactive Market Orientation – Understanding and meeting
customers’ expressed needs
• Proactive Market Orientation - Understanding and meeting
customers’ latent needs
• Total Market Orientation
The Marketing Concept
Developing Marketing Strategies & Plan
Capturing Marketing Insights
Connecting with Customers
Building strong brands
Shaping the market offering
Creating Long-Term Growth
Demand States –
Negative Demand – Dislike Product
No Demand – Unaware or uninterested in the product
Latent Demand – Strong need which cannot be satisfied by existing products
Declining Demand – Experiences by all organizations.
Irregular Demand – Season demand
Full Demand – Firms are pleased with the volume of business
Overfull Demand – Demand higher than what can be handled
De Marketing – Reducing demand temporarily or permanently
- Can be reduced by increasing prices, or reducing promotion and services.
Unwholesome Demand – Products that attract organized effort to discourage consumption
- Cluster of complementary products which are closely related in the minds of the consumer but spread across industries.