Defining Marketing

q for
the New Realities
 Questions to address
1 Why is marketing important?

2 What is the scope of marketing?

3 What are some core marketing concepts?

4 What forces are defining the new marketing realities?

What new capabilities have these forces given consumers
5 and companies?
6 and companies?
What new capabilities have these forces given consumers

7 What tasks are necessary for successful marketing management

 Value of Marketing

Marketing

Demand Job

Revenue Profits Giving

M
A
R is the activity, set of institutions, and
K processes for creating, communicating,
E delivering, and exchanging offers that
have value for customers, clients,
T partners, and society at large.
I
N
G
M
A
R
K
“meeting needs profitably.”
E
T
I
N
G
M M
A A
R N
is the art and science of choosing target
A
K markets and getting, keeping, and
growing customers through creating, G
E
delivering, and communicating superior E
T customer value. M
I E
N N
G T
 What is marketed?

Goods Services Events

Experiences Person Place

 What is marketed?

Properties Organization

Information Ideas
 Who markets?
Response
Attention
Purchase
Donation
Vote

Marketers Customers
 Types of Demand

➢ Negative
➢ Nonexistent demand
➢ Latent demand
➢ Declining demand
➢ Irregular demand
➢ Full demand
➢ Overfull demand
➢ Unwholesome demand
Structure of Flows in a Modern Exchange
Economy
Simple Marketing System
 Key Customer Markets

Consumer market Business market Global market Nonprofit and

Governmental
market
 CORE MARKETING CONCEPTS
Needs, Wants, and Demands

Needs Wants Demand

• Stated needs
• Real needs
• Unstated needs
• Delight needs
• Secrets need
CORE MARKETING CONCEPTS

Target Market,
Positioning,
Segmentation
CORE MARKETING CONCEPTS

Offering and Brands

 CORE MARKETING CONCEPTS

Marketing Channels Supply Chain

CORE MARKETING CONCEPTS

Paid, Owned, and Earned Media

 CORE MARKETING CONCEPTS

Impression and Value and

Engagement Satisfaction
 CORE MARKETING CONCEPTS

Competition Marketing
Environment
 THE NEW MARKETING REALTIES

Copyright 2012 Pearson Education, Inc. Publishing as prentice hall

Who is responsible for Marketing?

Entire Organization?

Marketing Department?

Chief Marketing Officer?

 MARKETING CONCEPTS
Production Concept

➢ This concept works on an assumption that consumers prefer A

product which is inexpensive and widely available.
➢ ‘Supply creates its own demand’
➢ Companies focus on producing more of the product and making
sure that it is available to the customer everywhere easily
➢ Increase in the production of the product makes the companies
get the advantage of economies of scale. This decreased
production cost makes the product inexpensive and more
attractive to the customer
 MARKETING CONCEPTS
Production Concept

➢ Low price may attract new customers, but the focus is just on
production and not on the product quality. This may result in A
decrease in sales if the product is not up to the standards
➢ This philosophy only works when the demand is more than the
supply
➢ A customer may not always prefer an inexpensive product over
others. There are many factors which influence their purchase
decision
 MARKETING CONCEPTS
Product Concept

➢ This concept works on an assumption that customers prefer

product of ‘greater quality’ and ‘price and availability’ doesn’t
influence their purchase decision
➢ Company devotes most of its time in developing a product of
greater quality which usually turns out to be expensive
➢ Since the main focus of the marketers is the product quality, they
often lose or fail to appeal to customers whose demands are
driven by other factors like price, availability, usability etc.
 MARKETING CONCEPTS
Selling Concept

➢ Production and product concept both focus on production but

selling concept focuses on making an actual sale of the product.
➢ Selling concept focuses on making every possible sale of the
product, regardless of the quality of the product or the need of
the customer.
➢ The main focus is to make money. This philosophy doesn’t
include building relations with customers
 MARKETING CONCEPTS
Selling Concept

➢ Repeated sales are very less. Companies following this concept

may even try to deceive the customers to make them buy their
product
➢ Companies which follow this philosophy have a short sighted
approach as they ‘try to sell what they make rather than what
market wants’
➢ Selling concept cannot let a company last long in the market.
 MARKETING CONCEPTS
Marketing Concept
➢ To succeed in the 21st century, one has to produce a product to
fulfill the needs of their customers.
➢ This concept works on an assumption that consumers buy
products which fulfill their needs.
➢ Businesses following the marketing concept conduct researches
to know about customers’ needs and wants and come out with
products to fulfill the same better than the competitors
➢ Business establishes a relationship with the customer and
generate profits in the long run
 MARKETING CONCEPTS
Holistic Marketing Concept
➢ Adding to the marketing concept, this philosophy focuses on
society’s well being as well.
➢ Business focuses on how to fulfill the needs of the customer
without affecting the environment, natural resources and
focusing on society’s well-being.
➢ This philosophy believes that the business is a part of the society
and hence should take part in social services like the elimination
of poverty, illiteracy, and controlling explosive population growth
etc.
Holistic Marketing Dimensions
Relationship Marketing

Relationship marketing aims to build

mutually satisfying long-term relationships
with key constituents in order to earn and
retain their business.
Integrated Marketing

Create, communicate, and

deliver value for consumers

“the whole is greater than the

sum of its parts.”
Internal Marketing
 Performance Marketing

Social Responsibility

Financial Accountability
The Evolution of Marketing Management
 Marketing Management Tasks

➢ Developing market strategies and plans

➢ Capturing marketing insights
➢ Connecting with customers
➢ Building strong brands
➢ Creating value
➢ Delivering value
➢ Communicating value
➢ Conducting marketing responsibly for long-
term success
 References

Kotler, P., & Keller, K. L. (2012). Marketing Management (14th Edition). Upper
Saddle River,New Jersey: Prentice Hall.

Kotler, P., & Keller, K. L. (2016). Marketing Management (15th Edition). United
States of America: Pearson Education Limited.
Defining Marketing
q for
the New Realities