Introduction to Marketing
Good Marketing is not an accident but the
result of careful planning and execution .

What is Marketing?
• Social definition
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

What is Marketing?
• Management definition
It 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 organizational goals.

• Marketing is an art and science

• Finance, operations accounting , production
and other functions will not really matter if
there is no sufficient demand for the
products and services.

What is Marketing?
• Marketing is meeting the needs profitably
both of marketers and customers.
• The aim of marketing is to know and
understand the customer so well that the
product or service fits him and sells itself.
e.g. Waiting lines and customer full
restaurants, waiting period for the vehicles
etc.

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

Demand
• This is the wants for specific products backed by
an ability to pay.
• Marketers should try to shape the wants. Many
customers don't know what they want when the
product is new, concept or service is new.
• So companies help the customers to learn what
they want.
• E.g. chips, soft drinks are the party
food, chocolates for celebrations, diet food
product, fitness and weight loss programs etc.

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)

Transaction
• A transaction is an exchange between two
things of value on agreed conditions and a
time and place of agreement.
• To make successful transaction a marketer
should understand what each party expects
from transction.

What is Marketed?
• Goods
• Services
• Events
• Experiences
• Persons
• Places
• Properties
• Organizations
• Information
• Ideas

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

Production concept
• Consumers will prefer products that are
widely available and inexpensive.
• Managers of production oriented businesses
concentrate on achieving high production
efficiency, low costs, mass distribution.

Product Concept
• Consumers will favor those products that
offer the most
quality, performance, innovative features.
• Managers in these organizations focus on
making superior products and imporoving
them over time.

Selling Concept
• Consumers ,if left alone,will ordinarily not
buy enough of the organization’s products.
The organization must therefore, undertake
and aggressive selling and promotion effort.
• The aim is to sell what companies make
rather that what the market wants.

Marketing Concept
• Customer-centered, sense and response
philosophy.
• The job is to find right products for your
customers.
• The key to achieve organizational goals consists
of the company being more effective than
competitors in creating , delivering and
communication superior customer value to its
chosen target markers.

Holistic Marketing Concept
• Based on development, design and
implementation of marketing
programs, processes and activities .(fig.1.3)

Four Themes of Holistic Marketing
1.Relationship Marketing
• Building long term mutually satisfying
relations with customers, suppliers,
distributors in order to retain their long term
preference and business1.

2.Integrated Marketing
• 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, Communicatio
n

3.Internal Marketing
• Marketing Department
• Senior Management
• Other departments

4.Socially Responsible Marketing
Cause and effect if marketing clearly extend
beyond the company and the customers.
• Ethics
• Environment
• Legal
• Community

Societal marketing Concept
• Organization’s tasks is to determine the
needs, wants and interests of target markets
and to deliver the desired satisfactions more
effectively and efficiently than competitors
in a way that preserves or enhances the
consumer’s and the society’s well being.

Marketing and Customer Value
Value and Satisfaction
• Value = Benefits/Costs
• Benefits = Functional Benefits + Emotional
benefits
• Costs = Monetary costs + Time + Energy +
Psychic costs
Offer should contain value for the product.

Value Creation and Delivery
sequence
Choose the value- “homework” marketer must
do before the product exists.
1. Customer segmentation
2. Market selection focus
3. Value positioning
(fig 2.1)

Providing the value
1. Product development
2. Service development
3. Pricing
4. Distribution

Communicating the value
1. Sales force
2. Sales promotion
3. Advertising

The Value Chain
• A tool for identifying ways to create more
customer value .
The primary activities
i. Bringing materials to the business (inbound
logistics)
ii. Converting them into final products (operations)
iii. Shipping out final products (outbound logistics)
iv. Marketing them (marketing and sales)
v. Provide services

The support activities
i. Procurement
ii. Technology development
iii. Human resource management
iv. Firm infrastructure

• Value exploration -How can a company
identify new value opportunities?
• Value creation- How can a company
differently create more promising new value
offerings?
• Value delivery- How can a company use its
capabilities and infrastructure to deliver the
bew value offerings more efficiently?

Strategic Planning
A game plan for achieving company’s long
term objectives.
Key areas
• Managing company’s business as an
investment portfolio
• Assessing each business that market.
• Establishing a strategy.

Planning, Implementation and
Control
Planning Implementing
• Corporate planning • Organizing
• Division planning • Implementing
• Business planning
• Product planning Control
• Measuring results
(fig.2.4)
• Diagnosing results
• Taking corrective actions

• A marketing plan is the central instrument
for direction and coordination the marketing
efforts.
• The strategic marketing plan lays out the
target markets and the value proposition
that will be offered based on an analysis of
the best market opportunities.

• The tactical marketing plan specifies the
marketing tactics including product
features, promotion, merchandising ,pricing
,sales channels and service.

Marketing Plan
• It summarizes what the marketer has
learned about the marketplace and
indicated how the firm plans to reach its
marketing objectives.
• It contains tactical guidelines for marketing
programs and financial allocations over the
planning period.

Objectives of the marketing plan
• Acts as a roadmap
• Assist in management control and
monitoring the implementation strategy
• Informs new participants in the plan of their
role and function
• To obtain resources for implementation
• To stimulate thinking and make better use
of resources.

Contents of the Marketing Plan
• Executive summary and table of content.
Brief summary of main goals
• Situation analysis
Data on sales, costs, the market competitors and the
various forces in the microenvironment. How is
market defined, how big it is, how fast it is
growing?

• Marketing strategy
• Financial projections
Sales forecast an expense forecast and break even
analysis.
• Implementation controls
Review of each period’s results, steps to be taken in
response to specific environmental developments
such as price wars.

Implications of Marketing
• Who are our existing/potential customers?
• What are their current/future needs?
• How can we satisfy these needs/
• Can we offer a product/service that the
customer would value?
• Can we communicate with our customers?
• Can we deliver a competitive product or
service?
• Why should customers buy from us?