Marketing Introduction Explains Core Concepts

Marketing
An Introduction
Dr. Gopal Thapa
Tribhuvan University

Marketing
 Telling and selling
or
 Satisfying needs profitably
or
 Relationship building
or
 Creating, communicating or delivering value
7/19/2021 2
Copy right reserved

Definition of Marketing
 The systematic planning, implementation and control of a
mix of business activities intended to bring together buyers
and sellers for the mutually advantageous exchange or
transfer of products.
 Dictionary of Marketing
7/19/2021 Copy right reserved 3

 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.
 Philip Kotler & Kevin Lane Keller

 Marketing is the management process responsible
for identifying, anticipating and satisfying
customer requirements profitably.
 Chartered Institute of Marketing

 Marketing is a total system of business activities
designed to plan, price, promote and distribute
want satisfying products to target markets in order
to achieve organizational objectives.
 Stanton, Etzel & Walker

Definition by AMA
 Marketing is the activity, set of institutions, and processes
for creating, communicating, delivering, and exchanging
offerings that have value for customers, clients, partners,
and society at large. (New definition, July 2013)
 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 organizational objectives. (Old definition)
 American Marketing Association

Conclusions
 Marketing is a societal process.
 Marketing deals with customer needs, wants, products, pricing,
distribution, and promotion.
 Marketing focuses on delivering value and satisfaction to customers
through products, services, ideas, etc.
 Marketing facilitates satisfying exchange relationships.
 Marketing takes place in a dynamic environment.
 Marketing is used in both for-profit and not-for-profit organizations.
 Marketing is extremely important to businesses and the economy of a
country.
 Thus, in conclusion, marketing is meeting needs
profitably.

Core Marketing Concepts
 Needs,
 Wants,
 Demand
 Target market, positioning and segmentation
 Offerings and brand
 Value and satisfaction
 Market
 Exchange
 Product
 Marketing channels
 Supply chain
 Competition
 Marketing environment
7/19/2021 9
Copy right reserved

Needs
 A need is a basic requirement that an individual wish to
satisfy.
 Human needs are state of felt deprivation.
 They include basic physical needs for food, clothing,
warmth, and safety; social needs for belonging and
affection; and individual needs for knowledge and self-
expression.
 These needs were not invented by marketers;
 Needs are very generic in nature and as a marketer we can
not create need.

Wants
 A want is a desire for a specific product or service
to satisfy the underlying need.
 Consumer wants are shaped by personal,
economical, social and cultural forces, the media
and marketing activities of business.
 As a marketer we can influence wants to some
extent.
 If you are hungry, what do you want?
 Veg. mo:mo, Newari Khaja set, chicken burger,
or instant noodle

Demand
 Wants backed by ability to pay, willingness to pay
and authority to purchase is demand
 Marketers are particularly interested in demand
rather than just needs or wants because marketing
is demand management
 Demand stimulating tools: advertising, personal
selling, sales promotion, public relation, publicity
and direct marketing.

Conclusions: Needs, wants and
demand
 Needs – states of felt deprivation
 Wants – specific satisfiers of needs shaped by
culture, economic condition as well as individual
personality
 Demand – human wants that are backed by
willingness, buying power and authority to
purchase.
7/19/2021 13
Copy right reserved

Product: No product, no marketing
 Product is need satisfying entity.
 It is a set of tangible and intangible attributes, which may
include packaging, colour, price, quality and brand plus the
seller’s services and reputation.
 Product can be goods, services, ideas, places, experience,
events, person, properties, organization, etc.
 A Product is much more than a set of physical attributes.
 It consists of physical characteristics, product quality, price,
brand, packaging, design, colour, sellers’ reputation, sellers’
services, product warranty, etc.
 It is believed in marketing that no product no marketing.
7/19/2021 14
Copy right reserved

Product
 Physical goods
 Service
 Idea
 Event
 Experience
 People
 Organization
 Information
 Property
 Place

Product
 Anything offered by the marketer for customer’s
satisfaction
 A product is anything that can be offered to a
market to satisfy a want or need.
 Philip Kotler

Levels of Product
 There are five levels of products
 Core product
 Actual product
 Augmented product
 Expected product
 Potential product
7/19/2021 17
Copy right reserved

Types of Product
 Consumer product
 Industrial product

Value and Satisfaction
 Value – relationship between benefit and cost
 Satisfaction – Comparison between customer’s
expectation and product performance
 Expectation = performance
 Expectation < performance
 Expectation > Performance
7/19/2021 20
Copy right reserved

Exchange: The heart of marketing
 Exchange is the act of obtaining a desired product
from someone by offering something in return
 Although people can satisfy their needs by self-
production, begging or theft, only one feasible
way to satisfy the needs of customer in marketing
is exchange.
7/19/2021 21
Copy right reserved

Transaction
 Transaction is the deal between buyer and the seller.
 These dealings or transactions may be cash or credit.
 The rule is not “cash and carry”, instead “enjoy now and
pay later”.
 Thus, buying a car or a motor bike, flat or house, is within
the reach of middle and lower middle class.
 The concept of “EMI” (Equal monthly instalment) has
turned everybody to enjoy now and pay later.

Distribution
 Distribution includes all the various activities the company
undertakes to make the product accessible and available to
target customers.
 It involves the marketing channel and physical
distribution.
 Marketing channel makes the product available to the
customers.
 Physical distribution makes the product accessible to the
channel members and customers.
 Distribution is also called the “the other half of
marketing.” It fulfils the gap between the producer and
consumer.

Supply Chain
 The supply chain is a longer channel stretching from raw materials to
components to finished products carried to final buyers.
 The supply chain for coffee produced in Gulmi district of Nepal may
start with farmers who plant, tend, and pick the coffee beans and sell
their harvest.
 After farmers sell their harvest to wholesalers or perhaps a coffee
cooperative, the beans are prepared and then transported to the
developed world for sale through wholesale or retail channels
 Each company in the chain captures only a certain percentage of the
total value generated by the supply chain’s value delivery system

Marketing Channel
 Communication channel – Radio, TV, newspaper,
magazine etc
 Distribution channel – Agent, wholesaler, retailer
etc.
 Service channel – transport co., warehouse, bank
and insurance co. etc.
7/19/2021 25
Copy right reserved

Supply Chain
 Supply chain is a longer channel stretching from
raw materials to components to final products that
are carried to final buyers.

7/19/2021 26
Copy right reserved

Media
 Paid media: TV, newspaper, magazine
 Owned media: website, blog, face book page
 Earned media: Consumers, press, other outsiders
by word of mouth, buzz or viral marketing
methods

Marketing Environment
 The actors and forces outside marketing that affect
marketing management’s ability to build and
maintain successful relationships with target
customers.
 It includes: Micro environment and macro
environment
7/19/2021 28
Copy right reserved

Customer Satisfaction
 The main aim of marketing is to create satisfied customer.
 Customer satisfaction in is comparison between customer’s
expectation and product performance
Comparison between expectation and performance
Customer's expectation > Product
Performance
Dissatisfied Customer
Customer's expectation < Product
Performance
Highly Satisfied Customer
Customer's expectation = Product
Performance
Satisfied Customer

Market
 Is place a market?
 A market is the set of actual and potential buyers
of a product
 Marketers are keenly interesting in markets
 Marketer’s task is managing markets to bring
about profitable exchange relationship
 Markets are classified in many ways such as
consumer market, business market, global market,
government market, etc.

7/19/2021 30
Copy right reserved

Marketer
 A marketer is an individual or an institution who is engaged in making
available the goods;
 He has his own portfolio the range of products he can offer to the
interested buyers.
 Marketer creates only place, time, ownership and awareness utility
 Marketer does not necessarily produce but buys from manufacturers
and producers and sells to buyers either for final consumption or for
further processing and sale.
 Thus, any channel participant who tries to fulfil gap between points of
production to point of consumption are marketers.

Prospects
 Prospect is a person or an organization which is
ready and willing to buy and pay for the goods and
services.
 It is not to undermine the marketers because a
“clap” is possible with two hands and not one.
 As a marketer we must qualify prospects and
should try to convert that prospect to partner in
long-run by implementing relationship marketing.

Competition
 Competition includes all the actual and potential
rivals offerings and substitutes a buyer might
consider.
 Competition may be:
 price competition or non-price competition
 brand competition
Monopoly, monopolistic or perfect competition
7/19/2021 33
Copy right reserved

Marketing Mix
 This marketing mix was coined by Professor Neil
Borden of Harvard Business School.
 Marketing mix is the set of marketing tools that
the firm uses to pursue its marketing objectives in
the target market.
 Marketing mix is a blend of product, price, place
and promotion tools.

Marketing Mix
 Thus, it is popularly known as four Ps’ of marketing which
was popularized by Professor McCarthy of Michigan State
University of America.
 Nowadays, four P’s has expended to seven Ps’ by adding
people, process and physical evidence especially for
service marketing.
 Of late, Philip Kotler and Kevin Lane Keller have offered
modern marketing management four Ps which consists of
People, Processes, Programs and Performance.

Traditional Four Ps
 Product mix
 Place mix (Distribution)
 Price mix
 Promotion mix

7 P’s (Service marketing Strategy)
 Product
 Place
 Price
 Promotion
 People : Internal marketing and interactive
marketing
 Process
 Physical Evidence

Modern Marketing Management
four Ps (The new four Ps)
 People
 Process
 Programs (Product, place, price, promotion)
 Performance

Four C’s
 Customers’ solution (Product)
 Cost (Price)
 Convenience (Place)
 Communication (Promotion)

Marketing Environment
 The actors and forces outside marketing that affect
marketing management’s ability to build and
maintain successful relationships with target
customers.
 It includes: Micro environment and macro
environment
7/19/2021 40
Copy right reserved

Marketing Philosophy
 Production concept
 Product concept
 Selling concept
 New marketing concept
 Customer concept
 Societal marketing concept
 Holistic concept

Company orientation towards
the market place

The Production Concept

The Product Concept
Product
Quality
Starting Point Focus Means Ends
Factory
 High Quality
 Innovation

Performance
Guarantee
Profit through
well-made
products

The Selling Concept

New Marketing Concept
Consumer needs
Target Market Integrated
Marketing
Profit through
Customer
Satisfaction

Fundamentals of New Marketing
Concpet

Comparison between selling
concept and marketing concept
Comparison between selling concept and Marketing Concept
The Selling Concept
The Marketing Concept
Existing Products
Factory Selling and
Promoting
Profit through
Customer Sales
Volumes
Consumer needs
Market Integrated
Marketing
Profit through
Customer
Satisfaction

Socieital Marketing Concpet

Holistic Marketing Concpet

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
 Marketing in action is marketing Management.
7/19/2021 Prepared by Gopal Thapa 51

Marketing Management Task
 Developing marketing strategies and plans
 Capture marketing insights & performance
 Connect with customers
 Build strong brands
 Shape the market offering
 Deliver value
 Communicate value
 Create successful long-term growth

Marketing Challenges of the 21st
Century
 Intense competition
 Savvy customer
 Rapid globalization
 Demand of ethics and social responsibility
 Retail transformation
 Increased cost
 Brand proliferation
 Media fragmentation
 Rapid technological change

Firms’ Responses to the
Challenges of the 21st Century
 Customer Relationship Marketing
 Target Marketing
 Mass Customization
 Integrated Marketing Communication
 Partnership Marketing
 Internal Marketing
 Outsourcing
 Digitalization
 Marketing Research

Relationship Marketing
 Relationship marketing is the process of creating,
maintaining and enhancing strong value laden
relationship with customers and other
stakeholders.
 Philip Kotler
 Relationship marketing is process of building
mutually satisfying long-term relationship with
key parties, in order to retain their business.
 Dictionary of Marketing

Customer Relationship Building
Process

Levels of Relationship Marketing

Approaches to Relationship
Marketing

Green Marketing
 Green marketing is the integrated business
practices and products that are friendly to the
environment.
 It is also known as environmental marketing or
ecological marketing.
 It is the holistic management for identifying,
anticipating, and satisfying the requirements of
customers and society in a profitable and
sustainable manner

Green Marketing
 Green marketing is the marketing of products that
are presumed to be environmentally safe.
 American Marketing Association

Reasons for Adopting Green
Marketing
 Grab Opportunities
 Government pressure
 Competitive pressure
 Social responsibility
 Costs and profit related issues

Practices of Green Marketing
 Top management commitment
 Pollution control
 Eco-friendly technology
 Use of recyclable materials
 Legal framework
 Consumer awareness program

E-marketing
 E-marketing in the process of marketing a brand
or product or service using the internet.
 It refers to the application of marketing principles
and technique by electronic media and more
specifically the internet.
 It is a type of direct digital marketing that uses the
electronic device as the marketing communication
delivery method.

E-marketing
 E-marketing is the fusion of information
technology with traditional marketing.
 It uses information technology in the process of
creating, communicating, and delivering value to
the customers.

E-marketing
 It uses the internet to do one or more of the
following:
 to communicate a company's message about
itself, its products and services,
 to conduct research as to the nature of existing and
potential customers,
 and to sell products or services.

Features of e-marketing
 Online selling
 Elimination of middleman
 Data depository
 Enhance promotion
 Global Alliance
 Long-term relationships
 Lower costs

Any Queries?
Thank You!

Marketing Introduction Explains Core Concepts

Empfohlen

Empfohlen

Weitere ähnliche Inhalte

Was ist angesagt?

Was ist angesagt? (20)

Ähnlich wie Marketing Introduction Explains Core Concepts

Ähnlich wie Marketing Introduction Explains Core Concepts (20)

Mehr von Tribhuvan University

Mehr von Tribhuvan University (20)

Kürzlich hochgeladen

Kürzlich hochgeladen (20)

Marketing Introduction Explains Core Concepts