What is Marketing?

• Personal Selling?
• Branding?
• Advertising?
• Making products available in stores?
• Maintaining inventories?

All of the above, plus much more!

 What is Marketing?

• “Marketing is an organizational function and a set

of processes for creating, communicating and
delivering value to customers and for managing
customer relationships in ways that benefit the
organization and its stakeholders.”
- The American Marketing Association.
In other words…
 Forms of Utility
• Form Utility: PRODUCE goods or services.

• Task Utility: CREATE that is required by customers.

• Time Utility: Available WHEN there is demand.

• Place Utility: Available WHERE it is required.

• Possession Utility: Customer having the product after

payment. They POSSESS it.
 The Concept of Exchange

• It means that people give up

something to receive something they
would rather have.
 The Concept of Exchange

At
AtLeast
Least Two
Two Communication
Communication
Parties
Parties and
andDelivery
Delivery

Necessary
Necessary
Conditions
Conditions
for
for Exchange
Exchange
Something Freedom
Freedom toto
Somethingof
of
Value Accept
Acceptor
or Reject
Reject
Value
the
theOffer
Offer

Desire
Desireto
toDeal
DealWith
With
Other
OtherParty
Party
The Concept of Exchange

• Exchange will not

necessarily take place even
if all these conditions exist.

• An agreement must be
reached between the buyer
& seller.

• Marketing occurs even if

exchange does not take
place.
 Evolution of Marketing
Simple Trade Era: Exchange of goods or services without using money. Sales Surplus

Production Era: More focus on production of specific products. Increased Supply

Sales Era: Selling of surplus stocks through advertising, personal selling etc and Beat
the competition.

Marketing Department Era: Co-ordination and control of many marketing activities in a

Marketing Department.

Marketing Company Era: Long-run satisfaction and sustainability. Involvement of

everyone in the organization for better customer relationships.
 Marketing Management Philosophies

Production Orientation Sales Orientation

Marketing Management
Philosophies

Societal-Marketing
Market Orientation
Orientation
 1. Production Orientation
• Focuses on internal capabilities of firm.
• More emphasis to production rather
than consumption
• Best used when:
 competition is weak
 demand exceeds supply
 generic products competing solely on price
• Problem is that they don’t understand
wants/needs of marketplace.
 2. Sales Orientation
• People will buy more goods/services
if aggressive sales techniques are
used.
• High sales will result in high profits.
• Used with unsought products
 life insurance
 encyclopedias
• Problem is that they don’t understand
wants/needs of marketplace.
 3. Market Orientation
• Focusing on customer wants so the organization
can distinguish its products from competitors’.
• “The social and economic justification for an
organization’s existence is the satisfaction of
customer wants and needs, while meeting
organizational objectives is Marketing Concept.”
• Integrating all the organization’s activities,
including promotion, to satisfy these wants.
 4. Societal Marketing Orientation

• Focus on the fact that its not

only about meeting customer
satisfaction & organizational
objectives but also society’s
long term interests.
• Management is called upon to
bring about balance of 3 What helps people, helps
factors: business.
- Leo Burnett
 Profitability
 Customer demand satisfaction
 Public interest / Social
Awareness.
The Organizations Focus

Key
Key Issues
Issues inin
Developing
Developing Competitive
Competitive
Advantage
Advantage

Create
Create Maintain
Maintain Customer
Customer
Customer
Customer Satisfaction
Satisfaction
Value
Value Build
Build Long-Term
Long-Term
Relationships
Relationships
 Customer Value

• The ratio of
benefits to the
sacrifice necessary
to obtain those
benefits.
 Customer Value
Requirements:
• Offer products that perform
• Give consumers more than they expect
• Avoid unrealistic pricing.
• Give the buyers fact [Informative
advertising and knowledgeable salespeople]
• Offer organization wide in service &
after sales support.
 Customer Satisfaction

• Customer satisfaction
is customer’s
evaluation of a good or
service in terms of
whether it has met
their needs and
expectation.
 Customer Satisfaction

Expectation Performance Expectation Performance

8 10 10 8

• If performance is lower than expectations,

satisfaction is low.

• If performance is higher than expectations,

satisfaction is high.
 How to maintain Customer
Satisfaction….???

• Meet or exceed customer’s

expectations
• Focus on delighting customers
• Provide solutions to customer’s
problems
• Cultivate relationships,
NOT one-time transactions
 Building Customer Relationship

• The name of a strategy that entails

forging long-term partnerships with
customers, both individuals and firms.
 Building Customer Relationship

• Attracting new
customers,
• Increasing business with
existing customers, and
• Retaining current
customers.
 Relationship Marketing

Relationship marketing strategies depend on:

• Customer-oriented personnel who focus on
maintaining relationships with customers.
• Effective training programs to teach employees
and managers how to treat customers.
• Employees with more authority to solve
customer problems.
• Teamwork.
 Firm’s Business

“Benefits” instead of
“goods/services”

• Ensures a customer focus

• Encourages innovation

• Stimulates an awareness of
changes in customer preferences
Tools the Organization uses to Achieve its
GOAL

SALES ORIENTATION MARKET ORIENTATION

•Focus on generating •Focus mainly on

sales through intensive customer needs and
promotional activities. wants.
•Believe in selling what •Promotion is one of
they produce rather
than what customer the 4p’s of Marketing
wants. [product, price,
•E.g. Life Insurance, promotion and place]
Vacuum Cleaners. •Believe in customer
satisfaction.
Non-Profit Organization requires Marketing
too…
• A non-profit organization is a legally
constituted organization whose
objective is to support or engage in
activities of public or private interest
WITHOUT any commercial or
monetary profit. E.g. Jaipur Foot

• Non-profits are not selling products,

they are selling their organization's
mission, their ideas, their programs,
and their services.

• Operate with the assumption that

support and recognition will
automatically come to a good cause.
Non-Profit Organization requires Marketing
too…
• But this is a false premise....
• Non-profit management should make
other groups, associations,
businesses, and individuals aware of
their mission and continuously
maintains that level of awareness.
• Marketing helps in achieve this
prime objective.
 Micro Marketing Vs Macro Marketing
• It consists of activities• Refers to the social process
performed within the that directs the flow of
goods and services from
organization. producer to consumer.
• Focus on customer needs • Focus is to effectively
drive all aspects of the match supply and demand
marketing mix. and at same time
accomplish society’s
• Main aim is build up objectives.  
Customer relationship. • Main aim is customer
• E.g. Microsoft satisfaction.
• E.g. B.E.S.T Daily Pass.
 Marketing Process
• Analysis: Analyzing and understanding the
market.

• Planning: Marketing programs and events must

be designed for influencing the market's
customers and consumers, and even the firm's
competitors.

• Execution: The marketing events are executed

in the markets: advertisements are run; prices
are set, sales calls are made, etc.

• Monitoring: Markets are not static entities and

thus must be monitored at all times.
 Why study Marketing?
• Plays an important role in
society

• Vital to business survival,

profits and growth

• Offers career opportunities

• Affects your life every day

• Better-informed consumers

• Demand for customer

satisfaction
Marketing is not an event, but a
process ... It has a beginning, a
middle, but never an end, for it is
a process. You improve it, perfect
it, change it, even pause it. But
you never stop it completely.

- Jay Conrad Levinson