 Problems faced by business today : Globalization , Advances in Technology and Deregulation

 Marketing seen as the task of creating , promoting and delivering goods and services to
consumers and businesses.
 Effective Marketing can be entrepreneurial , formulated or intrepreneurial
 Entrepreneurial – Companies started by individuals who live by their wits , spot
opportunity and knock on every door for attention.
 Formulated Marketing – Small Successful companies , carry out research , TV adverts
etc also realizes that continues success requires setting up a capable marketing
department
 Intrepreneurial – Large companies , market research reports , focus very much on
marketing and advertising . Normally lack creativity depend on trends and data etc.
 Marketers , market goods , services , experiences , events , people , places , properties m
organizations , information and ideas.
 Types of demands :
 Negative demand – Markets dislike this product. Marketing with product redesign ,
low price and positive promotion.
 No demand – Unaware demand or uninterested demand. Marketing with benefits
and connect with peoples natural interest and needs.
 Latent Demands – Strong demand for need unsatisfied by existing products.
Marketing needs to measure the potential market and develop goods and services
to fit demand.
 Declining demand – Market needs to analyse cause of decline determine if demand
can be restimulated through creative re-marketing.
 Irregular Demand – Also called Synchromarketing , used to find ways to alter pattern
of demand through flexible pricing , promotion and other incentives.
 Full demand – Marketing task is to maintain current level and must maintain or
continually improve to satisfy consumers compared to its competition.
 Overfull demand – Also called Demarketing , requires finding ways to actually cut
the demand
 Unwholesome demand – Discourage peoples consumtion through fear messages ,
price hikes and reduced availability.
 American Marketing Association : Marketing is the process of planning , executing the
conception , pricing promotion and distribution of ideas goods and services to create
exchanges that satisfy individual and organizational goals.
 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.
 Relationship marketing aims to build long term relations with key parties – Customers ,
Suppliers and Distributors , the ultimate outcome is the Marketing Network
 Marketers reach markets through various channels : Communication , Distribution and
Selling. Set of tools used by marketers to elicit the desired responses from their target
markets is called marketing mix.
 Marketplace – physical whereas Marketspace is virtual & Metamarkets are clusters of
complementary products and services that are closely related in the minds of consumers but
are spread across various industries.
 Value can be seen primarily a combination of Quality , Service and Price (QSP) -> Customer
value triad.
 Value = What customer gets / What customer gives for it = Benefits / Costs
 Tools of marketing are based on the four P’s of marketing : Product , Price , Place and
Promotion.
 Six concepts from which business can be conducted :
 Production Concept –Assumes Consumers prefer products that are widely available and
cheap priced also used when Companies want to expand the market.
 product concept – Assume Consumer favour the products that offer the most quality
performance or innovative features.
 selling concept- Organization must undertake aggressive selling concept and promotion
effort in order to sell their products and services.
 marketing concept – holds that the key to achieving its organizational goals consists of the
company being more effective than competitors in creating , delivering and communicating
superior customer value to its chosen target markets.
 Target Market
 Customer needs
 Integrated Marketing – when all of companys departments work together to satisfy
customer needs.
 Profits through customer satisfaction.

Marketing Concepts are also usually never used until :

 Sales decline
 Slow growth
 Change in buying patterns
 Increasing competition
 Increasing marketing expenditures
 customer concept –
 Individual Customer  Customer needs and values  One to one Marketing
integration and value chain  Profitable growth through capturing customer share ,
loyalty and lifetime value.
 societal marketing concept- Organizations task to determine the needs , wants and interests
of target markets and to deliver the satisfactions more effectively and efficiently than
competitors in a way that preserves or enhances the consumers and societies well being.

Change in business and marketing Trends

 Customers – Increasingly expect higher quality service and customization.

Low brand loyalty and greater price sensitivity.
 Brand manufacturers – Facing intense competition from domestic and
foreign brands.
 Store based retailers – Suffering from giant retailers and category killers. In
Response entrepreneurial retailers build in entertainment into stores
turning it into an experience rather than product assortment.
Company Reponse and adjustments

 Re-engineering – From focussing on functional departments to reorganizing by key

processes each managed by a multidiscipline team.
 Outsourcing – From making everything inside the company , to buying more goods and
services from outside if they are cheaper and better.
 E-commerce – Making products virtually available on the internet.
 Benchmarking – From relying on self improvement , to studying “world Class performers”
and adopting “best Practises”
 Alliances – forming networks and partnerships.
 Partner Suppliers – From using many , to using fewer but more reliable suppliers.
 Market Centered
 Global and local
 Decentralized – From being managed from the top , to encouraging more initiative and
intrepreneurship at the local level.

Marketers Responses and adjustments

 Customer Relationship marketing

 Customer Lifetime Value
 Customer share
 Target Marketing
 Customization
 Customer database
 Integrated Marketing Communications
 Channels as partners
 Every employee as marketer
 Model based decision making.