Basic Introduction to Marketing

Contents
 Meaning and Definition of Marketing
 Nature of Marketing
 Importance of Marketing
 Marketing Orientations
 Marketing vs. Selling
 Scope of Marketing
 Core Concepts of Marketing

What is Marketing?
 Marketing deals with identifying human and social
needs and meeting those needs profitably.
 “Marketing is defined as a social and managerial
process by which individuals and group obtain
what they need and want through creating and
exchanging products and services of value with
others.”
– Philip Kotler

Definition of Marketing by AMA
“ Marketing is an organizational function and a set
of processes for creating, communicating, and
delivering values to customers and for managing
customer relationship in ways that benefit the
organization and its stakeholders.”

Nature of Marketing
Management
 Specialized business function requiring specialized
skills.
 Social function requiring constant interaction with
society.
 Integrative function combining other business
functions like production, finance, personnel, R & D
etc.
 Universal function which can be applied to both profit-
motive and non-profit motive organizations.
 Science as well as an art.

Nature of Marketing Management.
. .
 Both consumer oriented and competitors oriented.
 It starts with consumers and ends at consumers.
 Marketing is a Process.
 It Involves a Mix of Product, Pricing, Promotion, and
Distribution.
 It Is Intended to Satisfy Individual and Organizational
Needs.

Importance of Marketing
 Financial success often depends on the marketing
ability
 Marketing enables the organizations to keep abreast
of changes
 Customer satisfaction, Increases sales and ultimately
the profit
 Uplifting the standard of the society as a whole
 Employment opportunities

Importance of Marketing . . . .
 Increased Competition
 Marketing help in economic growth and
activity
 Marketing management helps in improving
quality of products or services

Evolution of Marketing/Marketing
Orientations/Marketing
Philosophies

Marketing Orientations
 Marketing philosophies has undergone a
thorough and gradual change
 This gradual change can be traced by studying
different concepts or periods
 What philosophy should guide a company’s
marketing efforts?
 What relative weight should be given to the
interests of organization, the customer and the
society?

1. Production Concept
 One of the oldest concept of business.
 Based on the assumption that whatever is
produced will be accepted by the customers.
 It prevailed before 1930s.
 It holds that consumer will prefer those products
which are widely available and inexpensive.
 Managers concentrate on achieving high
production efficiency, low cost and mass
distribution.

1. Production Concept. . . . .
Examples
 Ford car model T.
 ITI(Indian Telephone Industry) has monopoly and
was producing only black colored instruments.
 Similarly household electrical appliances like
fridge, washing machine geyser, microwave oven
etc. were available only in white color (sometime
called as white goods).

2. Product Concept
 It holds that customers will accept those products
that offer most quality, performance and
innovative features.
 Till 1930s, there prevailed a strong feeling that
whenever a firm has a good product, it results in
automatic consumer response and needed little
or no promotional efforts.
 “Good wine needs no push”.
 Managers focus on making superior products and
improving them over time.

2. Product Concept. . . . .
 However sometimes these managers caught up
in a love affair with their products.
 Over emphasis on product excellence may lead
to ignorance of customer needs and wants.
 This is called the phenomenon of marketing
myopia or short-sightedness.

3. Selling Concept
 The failure of production and product concept
paved the way for change in outlook that was
possible during 1940s.
 It states that mere making best product is not
enough
 It is futile unless the firm resorts to aggressive
salesmanship.
 Effective sales promotion, high advertising and
public relations are of top importance.
 The essence is “Goods are not bought but sold”.

3. Selling Concept. . . . .
 The manager’s main task is to convince the
buyers through high pressure tactics.
 The aim is to sell what company’s make rather
than what customers want.
 This concept is used for unsought goods which
buyers do not think of buying.

4. Marketing Concept
 Emerged in mid 1950s.
 It believes that company’s objectives depend
upon understanding the needs and wants of
customers.
 Company must deliver the desired satisfaction in
a better way than the competitors are doing.
 The job is not to find right customers for your
products, but right products for your customers.
 It was found that companies who embrace the
marketing concept achieve superior performance.

5. The Societal Marketing
concept
 The societal marketing concept hold that
marketing strategy should deliver value to the
customers in away that maintains or improves
both the consumers and society’s well being.
 Long run welfare than short run wants

The Core concepts of Marketing

1. Needs, wants and demands
• States of deprivation
• Physical—food, clothing, warmth, safety
• Social—belonging and affection
• Individual—knowledge and self-expression
Needs
• Need directed by specific objects which are shaped
by culture and societyWants
• Wants backed by buying powerDemands
Customer Needs, Wants, and Demands

2. Marketing Offers/ The scope of
Marketing
 Products
 Services
 Persons
 Places
 Organizations
 Information
 Ideas
 Events
 Experiences/Experience marketing

3. Segmentation, Targeting and
Positioning (STP)
 Segmentation- Dividing the market into different
segments based on different parameters
 Targeting- Selecting the segment offering greatest
potential and profitability
 Positioning- Placing the product/service in the
minds of the targeted customers.

4. Value and Satisfaction
 The offering will be successful if it delivers value
and satisfaction to the targeted buyers
 Value: the difference between the
benefits(Tangible/Intangible) received by using a
product/service and the cost(monetary
cost/searching cost/psychological cost) of buying
a product.
 Satisfaction: Reflects a person’s comparative
judgment resulting from a product’s perceived
performance to his expectations

5. Marketing Channels
 Distribution channels: Distributors, wholesalers
and retailers etc.

6. Supply Chain
 Describes a longer chain stretching from raw
material till the final products that are carried to
the buyers.

7. Competition
 Includes all the actual and potential rivals
offerings and substitutes that a buyer might
consider

8. Marketing Environment
 Microenvironment: customers, suppliers, dealers
etc.
 Macro environment: Demographic, economic.
Technological, social, legal and political
environment etc.

Thank you