INTRODUCTION TO

MARKETING
What is MARKETING? . . .
Used as synonym for the art of Selling in the past
Involves relationships among the members of the society
Helps Business entity to estimate consumer demand and produce for their
satisfactory consumption
Helps in anticipation of customer demand and creating satisfied customers
through conception, production, promotion, and physical distribution of
goods and services in socially relevant exchange process
What is MARKETING? . . .
 Is the process of planning and executing the conception, pricing,
promotion, and distribution of ideas, goods, services, organizations, and
events to create exchanges that will satisfy individual and organizational
objectives. (AMA 1985)
Marketing is a dynamic and all pervasive subject in business that makes
the whole organisation ready to serve the customers.
So, success of a business largely depends on the success of marketing.
What is MARKETING? . . .
There are various definitions to marketing.
Phillip Kotler who defines marketing as a social activity directed towards
satisfying customer needs and wants through an exchange process. It is a
process of identifying consumer needs, developing products and services to
satisfy consumer needs, making these products and services available to the
consumer through an efficient distribution network and promoting these
products and services to obtain greater competitive advantage in the market
place.
What is MARKET? . . .
as any one of a variety of different systems, institutions, procedures, social
relations and infrastructures whereby persons trade, and goods and services
are exchanged, forming part of the economy. It is an arrangement that
allows buyers and sellers to exchange things.
Markets vary in size, range, geographic scale, location, types and variety
of human communities, as well as the types of goods and services traded.
Types of Offerings
 Goods: Goods are produced to satisfy consumer wants. Therefore study is
done to identify consumer needs and wants. These needs and wants
motivates consumer to purchase.
 Intangible Services: As economies advance, a growing proportion of their
activities are focused on the production of services. The U.S. economy
today consists of a 70–30 services-to-goods mix. Services include airlines,
hotels, and maintenance and repair people, as well as professionals such as
accountants, lawyers, engineers and doctors. Many market offerings consist
of a variable mix of goods and services.
Types of Offerings
Places: Cities, states, regions, and nations compete to attract tourists,
factories, company headquarters, and new residents. Place marketers
include economic development specialists, real estate agents, commercial
banks, local business associations, and advertising and public relations
agencies.
Persons: Celebrity marketing has become a major business. Artists,
musicians, CEOs, physicians, high-profile lawyers and financiers, and other
professionals draw help from celebrity marketers.
Types of Offerings
 Events: Marketers promote time-based events, such as the Olympics, trade
shows, sports events, and artistic performances.
 Corporate Organizations: Organizations actively work to build a strong,
favorable image in the mind of their publics. Philips, the Dutch electronics
company, advertises with the tag line.
Information/Knowledge: The production, packaging, and distribution of
information is one of society’s major industries. Among the marketers of
information are schools and universities; publishers of encyclopaedias, nonfiction
books, and specialized magazines; makers of CDs; and Internet Web sites.
Ideas: Every market offering has a basic idea at its core. In essence, products and
services are platforms for delivering some idea or benefit to satisfy a core need.
Five (5) Concepts. .
1. Product Concept:
It has the proposition that consumers will favour those products that offer
the most attributes like quality, performance and other innovative features.
2. Production Concept:
The Production Concept emerges out of the production orientation. The
basic proposition is that customers will choose products and services that
are widely available and are of low cost.
Five (5) Concepts. .
3. Selling Concept:
It proposes that customers, be they individual or organisations will not
buy enough of the organisation’s products unless they are persuaded to do
so through selling effort.
4. Marketing Concept:
It proposes that the reason for success lies in the company’s ability to
create, deliver and communicate a better value proposition through its
marketing offer in comparison to the competitors for its chosen target
market.
Five (5) Concepts. .
5. Societal Marketing Concept:
It proposes that the enterprise’s task is to determine the needs, wants and
intentions of the target market and to deliver the expected satisfaction more
effectively and efficiently than the competitors’ in a way to preserve or
enhance the consumer’s and society’s well being.
Selling and Marketing Concept. . .
People often confuse between selling and marketing.
 Selling is more about product push, while marketing is about
identification and satisfaction of customer need.
While selling focuses on the interest of the seller, marketing takes a more
welfare view and focuses on consumer satisfaction. Customers
and companies are involved in an exchange process in marketing.
KEY POINT. . .
The exchange process can range from a simple, economy-based exchange
process to generalised exchanges, complex exchanges and symbolic exchanges.
Marketing exchange process helps a marketing manager to look at a ‘marketing
man’ as unit of evaluation than an ‘economic man’.
Not-for-profit organisations also use marketing for marketing social causes.
Though marketing is the responsibility of a department but for greater success,
organisations need to reorient the whole organisation for better market
orientation. They need to conduct marketing audit, find out the current level of
marketing effectiveness and design programs for better market orientation.
KEY POINT. . .
McKinsey has suggested a Seven S framework for building market-oriented
companies. Marketing plays a greater role in an emerging economy like India, as
it attempts to improve the standard of living of people through greater and better
product and service offers.
Exchange Process: It occurs when the buyer with a demand and a seller with a
product offering confront each other.
KEY POINT. . .
Marketing management is a process of identifying consumer needs,
selecting target segments, developing products and services and
implementing the marketing program for generating higher customer
satisfaction and profit for the organisation. Though marketing
generates profit for the enterprise, it does not do so at the cost of the
consumer or society.