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
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.
• 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
Needs and Wants
• Needs are basic human requirements.
• Wants are needs directed to specific
objects/services that might satisfy the need.
• 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
• E.g. chips, soft drinks are the party
food, chocolates for celebrations, diet food
product, fitness and weight loss programs etc.
• 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)
• 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
What is Marketed?
Concepts under which firms
conduct marketing activities
• Production concept
• Product Concept
• Selling Concept
• Marketing Concept
• Holistic Marketing Concept
• Societal marketing 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.
• 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.
• 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.
• Customer-centered, sense and response
• The job is to find right products for your
• 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.
Four Themes of Holistic Marketing
• Building long term mutually satisfying
relations with customers, suppliers,
distributors in order to retain their long term
preference and business1.
• It is the tools that an organization employs
to pursue its marketing objectives in the
• Product, Price, Place, Promotion
• 4 C’s – Customer
solution, Cost, Convenience, Communicatio
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
• Costs = Monetary costs + Time + Energy +
Offer should contain value for the product.
Value Creation and Delivery
Choose the value- “homework” marketer must
do before the product exists.
1. Customer segmentation
2. Market selection focus
3. Value positioning
The Value Chain
• A tool for identifying ways to create more
customer value .
The primary activities
i. Bringing materials to the business (inbound
ii. Converting them into final products (operations)
iii. Shipping out final products (outbound logistics)
iv. Marketing them (marketing and sales)
v. Provide services
• Value exploration -How can a company
identify new value opportunities?
• Value creation- How can a company
differently create more promising new value
• Value delivery- How can a company use its
capabilities and infrastructure to deliver the
bew value offerings more efficiently?
A game plan for achieving company’s long
• Managing company’s business as an
• Assessing each business that market.
• Establishing a strategy.
Planning, Implementation and
• Corporate planning • Organizing
• Division planning • Implementing
• Business planning
• Product planning Control
• Measuring results
• Diagnosing results
• Taking corrective actions
• A marketing plan is the central instrument
for direction and coordination the marketing
• 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.
• It summarizes what the marketer has
learned about the marketplace and
indicated how the firm plans to reach its
• It contains tactical guidelines for marketing
programs and financial allocations over the
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
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
• Marketing strategy
• Financial projections
Sales forecast an expense forecast and break even
• 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
• Why should customers buy from us?