Slide 2

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.

In simple words it is, Management process through which goods and services move from concept to the
customer. As a philosophy, it is based on thinking about the business in terms of customer needs and their
satisfaction while taking care of the seller’s interests.

Marketing is the social process by which individuals and groups obtain what they need and want through
creating and exchanging products and value with others – Kotler

Philip Kotler is regarded as the Father of Marketing Management and Research

Slide 3

Business Advantages
 Identifies needs and wants of consumers
 Determines demand for product
 Aids in design of products that fulfill consumers needs
 Outlines measures for generating the cash for daily operation, to repay debts and to turn a profit
 Identifies competitors and analyzes your product's or firm's competitive advantage
 Identifies new product areas
 Identifies new and/or potential customers
 Allows for test to see if strategies are giving the desired results

Slide 5
Personal Marketing Orientation

Many analysts claim that we are now on the verge of a new stage of Marketing, the one of a Personal
Marketing Orientation.

They believe that the technology is available today to market to people on an individual basis. The personal
marketing orientation is an attempt to market on a one-to-one basis

For technical and sociological reasons, marketing has dealt with aggregates like market segments, target
markets, and demand. They traditionally have used broad and blunt instruments like mass marketing,
national advertising, assembly line production, and inferencial marketing research.

Until recently, this orientation was not practical.

Mass production has traditionally depended on the standardization of goods sold. Today however, we are
beginning to see progress in this direction. Computers allow personalized marketing. Flexible
manufacturing processes allow . The Internet allows permission marketing and real-time pricing. This
overall process is sometimes referred to as the ‘democratization of goods’.
 Slide 7

Market Orientation

The concept of marketing orientation was developed in the late 1960s and early 1970s at Harvard
University and at a handful of forward thinking companies

The marketing orientation stage, emerged as businesses came to realize that consumer needs and wants
drove the whole process. Marketing research became important. Businesses realized it was futile putting a
lot of production and sales effort into products that people did not want

This consumer focus can been seen as a process that involves three steps. First customer want are
researched, then the information is dissiminated thoughout the firm and products are developed, then
finally customer satisfaction is monitored and adjustments made if necessary

A marketing oriented firm will typically show the following characteristics:

 Extensive use of marketing research

 Broad product lines
 Emphasis on a product's benefits to customers rather than on product attributes
 Use of product innovation techniques
 The offering of ancillary services like credit availability, delivery, installation, and warranty

Slide 8

Sales Orientation

The sales orientation era ran from the mid 1950's to the early 1970's, and is therefore after the production
orientation era but before the marketing orientation era.

By the mid 50's supply was starting to out-pace demand in many industries. Businesses had to concentrate
on ways of selling their products.

Numerous sales techniques such as closing, probing, and qualifing were all developed during this period
and the sales department had an exalted position in a company's organizational structure.

Other promotional techniques like advertising, and sales promotions were starting to be taken seriously.
Packaging and labeling were used for promotional purposes more than protective purposes. Pricing was
usually based on comparisons with competitors (called competitor indexing).
 Slide 9

Production Orientation

A production orientation dominated business thought from the beginning of capitalism to the mid 1950's.

Business concerned itself primarily with production, manufacturing, and efficiency issues.

This view point was encapsulated in Says Law which states Supply creates its own demand

To put it another way, If a product is made, somebody will want to buy it. The reason for the
predominance of this orientation is there was a shortage of manufactured goods (relative to demand)
during this period so goods sold easily.

The implications of this orientation are:

 Product lines were narrow

 Pricing was based on the costs of production and distribution
 Research was limited to technical product research
 Packaging was designed primarily to protect the product
 Promotion and advertising was minimal

Slide 10

Definition of Marketing promptly shows why marketing is necessary to business development

Businesses will often use the marketing process in an effort to determine which products or services a
customer or client might be interested in. It is also a tool to determine a strategy for communication,
business development or sales.

It also makes efforts to create value and build stronger customer relationships

Marketing can integrate all of these functions, if substantial expenditure is made in a planned and
strategic manner towards the type and form of the Marketing to be carried. It is very essential to
choose the ‘perfect plan’