By, N. K.

Upamannyu
 “Marketing is the process of building profitable
customer relationship by creating value for
customer and capturing value in return”.
 Marketing is an organizational function and set of
processes for creating, communicating and
delivering value to customer relationship in ways
that benefit the organization and its stakeholders.
(American Marketing Association)

Marketing is…
The process of planning and executing the
conception, pricing, promotion, and distribution of
ideas, goods, and services to create exchanges that
satisfy individual and organizational objectives.
- American Marketing Association Definition
 “Marketing is the art of delivering right goods
to the right person, at the right time, at the
right price, at the right place through the
right distribution system”.
By, R.C . Agarwal
The success of business organization does
not depend on, that how much quantity of
goods are being produced by the
organization rather than it depends on how
much quantity of good are being sold.
 In modern age, Manager says that we do not
manufacture product rather than we manufacture
customer. Therefore it is correctly said marketing
is the art of delivering goods to the end user
consumer.
 Marketing is not new term for us. Even most of the
person understand that they are well aware from
this word but in fact most of the people do not
understand the actual meaning of marketing. Even
people those who are involved or engaged in the
activity of marketing they also takes wrong
meaning or marketing. Even a seller or manager
understand marketing is only selling.
 In fact the term of marketing is very much popular
therefore people understand they know about the
marketing very well.
 Even illiterate farmer also feel that he is having
very much information about the marketing. He
takes meaning from the term marketing to sale his
crop in market that is marketing from his point of
view.
 A housewife understands the marketing term in
her point view that whatever domestic buying is
done by her that is marketing.
 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)
 Marketing is the management process that identifies,
anticipates and satisfies customer requirements profitably.
The Chartered Institute of Marketing (CIM).
 The right product, in the right place, at the right time, at the
right price. (Adcock).
 Marketing is essentially about marshalling the resources of an
organization so that they meet the changing needs of the
customer on whom the organization depends. (Palmer).
 Capture
value
Create value for customers and from
build customer relationships customers
in return
Capture
Design a Construct a Build value from
Understand
customer- marketing profitable customers
the
driven program relationships to create
marketplace
marketing that delivers and create profits and
and customer
strategy superior customer customer
needs&wants
value delight quality
 Research Consumer  Select consumer to
and The market place serve- Market
 Manage marketing Segmentation and
information and Targeting
customer data  Value Proposition –
Differentiation and
Positioning

Understand the Design a customer-

marketplace and driven marketing
customer needs&wants strategy
 Product and service  Customer Relationship
Design – Build strong Management- With
Brands chosen customer
 Price- Create real value  Product Relationship
 Place- Manage Management- With
Demand and supply chosen suppliers
chain
 Promotion- create the
value proposition

Construct a marketing Build profitable

program that delivers relationships and create
superior value customer delight
 Capturing value from customers in return –
1. Generate Revenue, Earn Profit
2. Create Loyal, Satisfied customer
3. Capture customer Lifetime value
4. Increase Market Share
 Needs, wants,
and demands

Markets Products
and services

Exchange,
Value and
transactions,
satisfaction
and relationships
 Needs, wants, and  Need –a need is
demands something you have to
have, something can
 Marketing offers: not be avoided.
including products,  Example: Food, Clothe,
services and Shelter etc
experiences  Wants – A want is
something you would
 Value and satisfaction like to have , it is not
 Exchange, transactions absolutely necessary.
and relationships  Example: Luxurious
product
 Markets  Demands
◦ Wants which are directed
by buying power
 Needs, wants, and  Marketing offering
demands
 Marketing offers:
including products,
services and
experiences
 Value and satisfaction
 Exchange, transactions
and relationships
 Markets
◦ Combination of
products, services,
information or
experiences that satisfy
a need or want of the
consumer.
◦ Offer may include
services, activities,
people, places,
information or ideas
  Marketing ideas
(social marketing)

This is the watch

Stephen Hollingshead, Jr.
was wearing when he
encountered a drunk
driver.
Time of death 6:55 p.m.
“Friends Don‟t Let Friends
Drive Drunk”
  Value
 Needs, wants, and
◦ Customers expectations
demands regarding product and
 Marketing offers: service.
including products, ◦ Marketers must deliver
services and value to consumers
experiences  Satisfaction
 Value and satisfaction ◦ A satisfied customer will
 Exchange, transactions buy again and tell others
and relationships about their good
 Markets experience
  Exchange
 Needs, wants, and ◦ The act of obtaining a
desired object from
demands someone by offering
 Marketing offers: something in return
including products,  Transaction
services and ◦ Trade of values between
experiences two or more parties
One exchange is not the goal,
 Value and satisfaction 
relationships with several
 Exchange, transactions exchanges are the goal
and relationships  Relationships are built
through delivering value and
 Markets satisfaction
◦ Marketing network consists
of the company and all iits
supporting stakeholders
1. Give one thing and take 1. Transaction is to transfer
back another thing. of a tangible thing
against cash.
2. The worth of things does
not matter. 2. Transfer of equal value
able things or cash.
3. Each party has
something that might be 3. Overcharge if possible.
of value to the other
party. 4. Transaction involves:
4. Each party is free to agreed-upon conditions
accept or reject the a time of agreement
exchange offer. and a place of agreement
 Needs, wants, and  Market
demands ◦ Set of actual and
 Marketing offers: potential buyers of a
including products, product
services and ◦ Marketers seek buyers
experiences that are profitable
 Value and satisfaction
 Exchange, transactions
and relationships
 Markets
 Communication

Products/services
Industry Market
(a collection (a collection
of sellers) Money of Buyers)

Information
 Marketing management the art and science
of choosing target markets and building
profitable relationships with them.
◦ This definition must include answers to 2 questions:
 What customers will we serve?
 How can we serve these customers best?
◦ Getting, keeping, and growing customers through
creating, delivering, and communicating superior
customer value

 Marketing management involves managing

demand involves managing customer
relationships
 Marketing management can be defined in
broader terms as “demand management”;
◦ Marketers aim to influence the level, timing and
composition of demand to meet organizational
goals.

 Marketing management is concerned

◦ not only with finding and increasing demand,
◦ but also with changing or even reducing it :
demarketing!
 How marketing has become
“marketing” as we understand it
and apply its practices today?
 Trade has existed since when man was capable to produce a
surplus. The first method of this kind of trade is called the
“Barter System”. This means exchanging goods with one
another. During the 1800 the world was facing industrial
revolution, this means that people where shifting from
agriculture to industrial products this brought about opening of
different factories. People increased their income and there
was a corresponding increase in demand for product. In other
words, the producer had an advantage over the consumer in
those days since whatever was produced was being demanded.

PRODUCTION PRODUCT SALES

SOCIAL MARKETING
MARKETING
 Production Era (1850s-1920s)
◦ Industrial revolution; mass production
◦ Few products and little competition
 Sales Era (1920s-1950s)
◦ The focus was on personal selling and advertising
◦ Sales seen as the major means for increasing profits
 Mktg Era (1950s-present)
◦ Customer orientation replaced the “hard sell” of the sales-led
era
◦ Determination of the needs and wants of customers before
introducing products or services
 Relationship Marketing Era: 1990s-
◦ Marketing era has recently shifted from being
“transaction-based” to focusing on “relationships”
◦ The argument traditional marketing practices
focused on attracting new customers rather than
retaining existing ones.
◦ It is equally important to hang on to existing
customers so that they become repeat buyers and long
term loyal customers
 “customer relationship management”!
 Consumers will favor those products that are
widely available and low in cost.
 Managers concentrate on achieving high
production efficiency and wide distribution.

 The assumption is valid at least in 2 situations :

◦ The demand for a product exceeds supply
(suppliers will concentrate on finding ways to
increase production)
◦ The product‟s cost is high and has to be
decreased to expand the market.
 Consumers will favor those products that
offer the most quality, performance or
innovative features.
 Managers in product-oriented
organizations concentrate on making
superior products and improving them
over time.
 The assumption  the customers will
admire well-made products and can
evaluate product quality and performance
 This concept may lead to marketing
myopia
 The sale concept: in the world of economic recession of
the early 20th Century, we experienced unemployment and a
fall in demand for goods and service. This situation resulted
in excess supply and business people realized that it was not
enough to simply produce goods efficiently but for profits
to be made, these goods had to be sold.
 The sale concept stated that effective demand could be
created by the used of sales techniques with the help of the
sales department, the sales person and the sales manager
becoming the most important people in the organization
hoping to achieve profitability
 Politicians are a good example of people who are
consciously selling themselves to the electorates.
 Agressive selling and promotion
 Assumptions are;
◦ Consumers must be convinced of buying company
products
◦ Company is powerful in generating effective selling
and promotion to stimulate more buying
 This concept is mostly used by firms which
have overcapacity.
 The aim is “to sell what they make” rather than
“make what the market wants.”
 Short-term profits are more important
(customer dissatisfaction may occur)
 Key to achieving organizational goals
consists of being more effective than
competitors in creating, delivering and
communicating customer value to target
markets.

 4 pillars of modern marketing :

1. Target market
2. Customer needs
3. Integrated marketing
4. Profitability through customer satisfaction
Starting
point Focus Means Ends

Existing Selling and Profits through

Factory products promotion sales volume

(a) The selling concept

Customer Integrated Profits through

Market needs marketing customer
satisfaction

(b) The marketing concept

 Selling:-
 Selling is short-term perspective.
 Starting point of selling is factory
 Selling focus on existing products
 The meaning of selling aggressive personal selling +
promotion
 Selling ends where there would be profit trough sales volumes
 Marketing is long term in perspective
 The starting point of marketing is market
 Marketing focus on customer needs
 The means of marketing integrated marketing communication.
 Marketing ends where there is profit through customer
satisfaction.
1) Target market homogenous group of
customers to whom the company wishes to
appeal
2) Customer needs
◦ Consumers may not be fully conscious of their needs
◦ It may not be easy to articulate these needs
◦ They may use words that require some interpretation
◦ Customer-oriented thinking  to define customer needs
from the customer‟s point of view
◦ Sales revenue New customers + Repeat customers
◦ “Customer Retention” vs. “Customer Attraction”
◦ Customer satisfaction is a function of the product
perceived performance and buyer‟s expectations
3) Integrated Marketing
1. Various marketing functions must work
together for customer satisfaction (coordination
of 4Ps; marketing mix elements)
 Marketing Mix  controllable variables the company
puts together to satisfy its target market(s).
Product: Product variety, quality, design, features, brand
name, packaging, sizes, services, warranties, returns
Price: List price, discounts, allowances, payment period,
credit terms
Promotion: Sales promotion, advertising, sales force,
public relations, direct marketing
Place: Channels, coverage, assortments, locations,
inventory, transport
 Marketing
Mix

Product Place

Convenience
Customer
Solution Price
Promotion

Customer
Cost Communication
 Integrated Marketing (cont.)
2. Marketing must be well coordinated with other
departments in the company;
all departments have to work together to satisfy
customers‟ needs and wants

4) Profitability through customer satisfaction

◦ To achieve profits as a result of creating
superior customer value
Selling – Marketing...

“There will always be need for

some selling. But the aim of
marketing is to make selling
superfluous. The aim of marketing
is to know and understand the
customer so well that the product or
service fits him and sells itself.
Ideally, marketing should result in a
customer who is ready to buy.”
Peter Drucker
Modern Marketing Concept
Traditional Organization Chart

Top
Management

Middle Management

Front-line people

Customers
Modern Marketing Concept
Customer-Oriented Organization Chart

Customers

Front-line people

Middle management

Top
manage-
ment
Relationship Marketing Concept

 Customer Relationship Management  the

overall process of building and maintaining
profitable customer relationships by delivering
superior customer value and satisfaction.

◦ It deals with all aspects of acquiring, keeping and

growing customers
◦ Relationship building blocks “customer value”
and “customer satisfaction”
◦ “Customer retention” and “customer loyalty”
◦ The intention to gain a greater proportion of an
existing customer‟s purchases over a long period
(increase “consumer lifetime value”!)
Customer Relationship Management
Capturing Value from Customers

Key Concepts
 Customer delight
 Customer Loyalty leads to emotional
and Retention relationships and
 Share of loyalty
Customer  Customer Lifetime
 Customer Equity Value (CLV) shows
true worth of a
customer
Customer Relationship Management
Capturing Value from Customers

Key Concepts
 Share of customer‟s
 Customer Loyalty purchase in a
and Retention product category.
 Share of  Achieved through
Customer offering greater
 Customer Equity variety, cross-sell
and up-sell
strategies.
Customer Relationship Management
Capturing Value from Customers

Key Concepts  The combined customer

lifetime values of all
 Customer Loyalty current and potential
and Retention customers.
 Share of  Measures a firm‟s
performance, but in a
Customer
manner that looks to
 Customer Equity the future.
 Choosing the “best”
customers is key
Societal Marketing Concept
 Company‟s negative effects on society
 Conflict between consumer wants and long-
term social welfare
 Marketing managers should be concerned
with social responsibility
 The societal marketing concept
◦ Company‟s task is to determine needs and wants of
target markets & to satisfy them more effectively
and efficiently than competitors --in a way that
preserves or enhances the consumer‟s and society‟s
well-being.
 Societal Marketing Concept
Society
(Human Welfare)

Societal
Marketing
Concept

Consumers Company
(Want Satisfaction) (Profits)
 Societal marketing concept holds that organization should not
develop marketing strategy by only keeping customer needs
and wants in mind but also consider the well being and
betterment of the society
 Now days this marketing concept is followed by majority of
organizations including MacDonald‟s, Unilever and Procter &
gamble. This marketing strategy passes out positive message
to the stakeholder, partners, Government customer and public.
Those organizations working on this marketing strategy
communicating the message to the world those they are not
only working for the Profit but also for the well being of the
society.
 Example-1: Body shop: Body Shop is a cosmetic company found
by Anita Roddick. The company uses only vegetable based
materials for its products. It is also against testing, supports
community trade, activate Self Esteem, Defend Human Rights,
and overall protection of the Planet. Thus it is completely
following the societal marketing

Ariel: Ariel is a detergent manufactured by Procter and Gamble.

Ariel runs special fund raising campaigns for deprived classes of
the world specifically the developing countries. It also
contributes part of its profits from every bag sold to the
development of the society.
British American tobacco Company: BAT is a British based
Tobacco company. It was found in the year 1902. BAT is involved
in working for the society in every part of the world. It conducts
tree Plantation drives as part of its societal marketing strategy.
http://www.docstoc.com/docs/13908290/The-Evolution-of-
Marketing
The marketing mix is the combination of variables
that a business uses to carry out its marketing
strategy and meet customer needs.

The marketing mix variable or principle are

controllable variable, which should be managed
carefully and must meet the need of the defined
target group.
 Product

Promotion Market Price

Place
 Product- product is first element of market mix. A product is
combination of good and service that is offered to satisfy need
and want of consumer.
A product is anything like tangible or intangible that can be
offered for purchase or use by consumer. A tangible product is
one that consumer can actually touch, such as computer.
An intangible product is service that can not be touched such
as computer repair, income tax preparation. Apart form that
product include place and ideas.
 Example- state tourism department developed a new place for
tourism purpose so the place is sold by the state tourism
department.
 While driving, to bear seat belt this is idea has been promoted
as a way of saving lives.
 Uses of 3G phone, Enjoy high speed internet etc.
 Core product- Core product level can be understood in
context of product for which product are manufactured.
A Customer purchase a camera for capturing his memories.
 Actual product- all the camera capture memories. The aim is
to ensure that your potential customer are. The strategy at this
level organization branding, adding feature and benefit to
ensure that their product offer a differential advantage from
their competitors. At this level organization uses tactics that
how the product can be different and better form other product
of competitors.
Augmented Product- augmented component include
additional service and benefit that surround the first two level.
Exp- warranty or Guarantee
Technical Assistance
Customer Care Services.
The product lifecycle looks at the sales of a
product over time
Development – high costs but no sales
Launch – high expenditure on promotion and
product development, low sales
Growth – sales increase and product should
break-even
Maturity – sales stabilise, less expenditure on
promotion needed, revenue & profit should
be high
Decline – sales decline, extension strategies
can be adopted or the product withdrawn
Extension strategies should maintain or increase
sales. They include:
 Modifying the product

 Reducing the price

 Adding a feature

 Promoting to a

different market
sector
 Price is the second element of marketing mix. Price is the
simply amount of money that customer are willing to pay
for product or service. In earlier time price was determined
through a barter process between seller and buyer. In modern
times pricing method and strategies have taken number of
forms. Pricing should take into account the following factors.
1. Fixed and variable cost
2. Competition
3. Company objective
4. Target group and willingness to pay
 Penetration pricing- where the organization sets the new
price to increase sales and market share.
 Skimming Pricing- Where the organization set initial high
price then slowly lowers the price to make the product
available in wider market. The objective is to skim profit of
the market.
 Competition Pricing- the organization sets the price in
comparison of competitors price.
 Bundle Pricing- The organization offer bundle a group of
product at reduced price.
 Product line pricing- The organization sets the pricing having
seen different range of product at different price points. Exp-A
T.V manufacturer offer different T.V with different feature of
T.V
 Psychological pricing- The organization sets psychological
pricing having known the psychology of the customer.
 Exp- 0.99 paisa is charged in place of Rupees 1.

 Premium Pricing- The price is set high to reflect

exclusiveness of the product.
 Exp-First class in airline service. Adidas, Reebok etc.
 Pricing objective are constituted on the basis of number reason
mentioned below.
1. Profitability
2. Volume
3. Meeting the competition
4. Prestige
 It is not enough to have good product sold at attractive price.
To generate the sales volume and profit, product benefit must
be communicated to the potential customer that is promotion.
Promotion is the third element of marketing mix. Promotion is
a communication process that takes place between the
organization and its various publics.
 Publics are those individual and organization that have an keen
interest in what the business produces and offer for sale.

 “Total marketing communication programmed is called

promotional mix”.
Advertising

Promotion
Promotion

Sales
mix
 Advertising- “Any paid for non-personal presentation and
promotion of good and service through mass media such as
News-paper, Television, Magazines and Radio by an Identified
sponsor”.
1. Pioneering advertising
2. Competitive advertising
3. Competitors advertising
4. Advocacy advertising
5. Product advertising
6. Institutional advertising
7. Reminder advertising
8. Cooperative advertising
 Pioneering Advertising-To develop the primary demand for
the product or product category.
 Competitive advertising- to seek to develop demand for a
specific product and service.
 Competitor advertising- To use the advertising method
wherein two or more than two product are compared on the
basis of their feature.
 Advocacy advertising- it is an organizational approach
designed to support socially activity, causes or manage such as
helping for homeless children.
 Reminder advertising- keep a product and company name in
the mind of customer through its related feature.
 Cooperative advertising- when wholesaler and retailer work
with product manufacturer to produce a single advertising and
bear the cost of advertising
 Sales promotion is one of the important mix of promotion mix
that mix is used as short term incentive used by the marketer
to encourage customer to purchase product and services.
 There are three basis category of sales.

1. Consumer promotion
2. Trade promotion
3. Business promotion
 Consumer Promotion- It include items as coupon, rebates,
price-back, premium, rewards, point of purchase coupons,
contest, sweepstake, games.
 Trade Promotion- It include discount and allowances directed
at wholesaler and retailers.
 Business Promotion- It include convention and trade shows.

Note-
Sales promotion has several advantage from other promotional
tools. It include immediate customer Reponses, attract more
attention and crate product awareness and increase short term
sales
 Public relations is a strategic communication process that
builds mutually beneficial relationships between organizations
and their publics
 The main goal of a public relations department is to enhance a
company reputation among the publics. Staff that work in
public relation, or as it is commonly known, PR department ,
they are trained to be skilled full so They are able to give
presentation . The role of a public relations department can be
seen as reputation protector.
 “Selling a product or service one to one”, that is known as
personal selling. Personal selling involve inter personal
influence and information exchange process.

Person-to-person communication with a prospect

 Personal selling is a process of
• Developing relationships
• Discovering needs
• Matching products with needs
• Communicating benefits
• Products and services are more complex
• Competition has greatly increased
• Customer demand for quality, value, and service
has risen sharply
 There are Nine general steps in the personal selling process:
1. Prospecting
2. Qualifying
3. Pre-approach
4. Approach
5. Presentation
6. Demonstration
7. Handling objection
8. Closing
9. Follow-up
 Direct Mail- to send the direct mail through using internet. In
fact, this direct mail consist of complete publicity material.
Such type mail are sent to shoot the potential target in specific
segment.
 The fourth element of marketing mix is „place‟. Place refers to
having the right product, in the right location, at the right time
to be consumed by the consumer.
 This proper placement of product is done through middle
people called the “channel of distribution”.
 The channel of distribution is comprised of interdependency of
manufacturer, Whole seller and Retailer. These group are
involved with making product or service available for use of
consumption.
 Products should be conveniently available for
customers to buy
 „Places‟ include:
◦ Stores
◦ Mail order
◦ Telesales
◦ Internet
 Manufacturers

Wholesaler

Retailer

Consumer