An Overview of

Marketing
What is Marketing?

Marketing is
A philosophy, an attitude, a
perspective, or an orientation that
stresses customer satisfaction.
1
Marketing Principle is
1
Marketing focus
focus on delivering value
and benefits to customers,
not just selling goods and
services.


What is an Exchange?
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7
Exchange
At Least Two Parties
Something of Value
Communication and Delivery
Freedom to Accept or Reject
Desire to Deal with Other
Party
Conditions for
Exchange
1
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8
Exchange

Exchange may not take place even if conditions
are met.

An agreement must be reached.

Marketing occurs even if exchange does not take
place.
1
A Simple Marketing System
Need, Want and Demand
Stated Need
Real Need
Unstated Need
Demand Want
What is a Product?

What is a Market?
Products
Goods
Services
Ideas
All potential
customers
Having a
particular want
And willing and
able to pay
To satisfy
that want
Types of Markets
Consumer markets
Business markets
Global markets
Nonprofit/Government markets
Customer
Satisfaction
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17
the customers evaluation of a good
or service in terms of whether that
good or service has met their needs
and expectations.
Customer Satisfaction is
3
Customer Value
Quality
Service
Other Costs
Product Price
Value = What one gets what one sacrifices
What opportunities are
available for value creation?
How can we create new
value offerings efficiently?
How can we deliver the
new offerings efficiently?
Copyright 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.

20
Find out changes in customer preferences
Encourage organization-wide innovation and creativity
Co-create with customers
Offer products that perform
Earn trust
Avoid unrealistic pricing
Give the buyer facts
Offer organization-wide commitment in service and after-sales
support

Create Customer Value
3
Goods/ Services/ Ideas
Property
Events
Movies
Experiences
Information
Religion
Person
Organization
Political parties
Places
Country
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22
a strategy that focuses on keeping and
improving relationships with customers.

Successful strategies need:
Customer-Oriented Personnel
Effective Training Programs
Empowered Employees
Teamwork
Relationship Marketing is
3
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23
Building Relationships
Customer-oriented personnel
Every employee represents the firm in the eyes of
the customer.
Employee training programs
Empowered employees
Employees are given more authority to solve
customer problems on the spot.
Teamwork
Emphasizing cooperation over competition
while helping a customer.
3


The Relationship Pyramid
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Marketing Concept
2
The social and economic justification for
an organizations existence is the
satisfaction of customer wants and needs
Production concept

Product concept

Sales concept

Marketing concept

Societal Marketing Concept





Various Concepts
Production orientation

Product orientation

Sales orientation

Marketing orientation
Market Orientation
Societal Marketing orientation


Production Orientation Product Orientation Competitor Orientation
Tends towards internal
capabilities

Xiami (mi3-flipcart)
Tends towards superior
product quality

Apple
Tend towards staying ahead of
competitors

Samsung
Tends to manufacture
whatever products can be
produced with resources of
the firm
Tends to manufacture the
best product quality possible
Tends to keep tab on competition
and try to match or exceed their
offerings
Tends to build capacity to
drive down cost, assumes
that people want products
cheap
Tends to assume that people
beat their path to you if you
produce a better mouse-trap.
Tends to assume that customer
demand is given and is shared
among competitors.
Works when demand
exceeds supply
Works when supply exceeds
the demand and the quality
defined is in sync with
quality that customers want.
Works when technology is
mature and product definition
(and hence definition of
competition) is narrow.
Comparison of concepts
Sales Orientation Marketing Orientation Societal Marketing Orientation
Tends towards short-term
satisfaction of customer
needs; company decides
value delivery process

PanParag
Tends towards long-term
satisfaction of customer
needs. Customer insights
factored into in designing
and development of value
Maruti
Tend towards offerings in the
best interest of customers and
society as a whole.
Green Marketing ISO-14000

LG Eco-Chic (fridge/WM)
Tends to lesser customer
input in design of offering
Tends to greater customer
input in design of offering
(co-creation)
Takes into account social and
ethical concerns. Enhances
individual and societal well
being.
Tends to focus on push
sales, more focused on
meeting existing demand,
believes high sales results
in high profits
Tends to focus on
stimulation of demand by
understanding and catering
to customer needs
Marketing of products that are
durable, made of recyclable
materials and less
polluting/toxic.
Tends to focus on short
term organizational goals
Tends to focus on customer
needs and organizational
goals
Tends to focus on customer
needs, organizational goals and
environment friendliness.
Comparison of concepts
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Focusing on customer wants and needs to distinguish products from
competitors offerings

Generation of Market Intelligence, Dissemination of Intelligence,
Responsiveness (Jaworski and Kohli)

Integrating all the organizations activities to satisfy these wants

Achieving the organizations long-term goals by satisfying customer wants
and needs legally and responsibly
Market Orientation
2
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Achieving a Market Orientation
Obtain information about customers,
competitors, and markets
Examine the information from a total business
perspective
Determine how to deliver superior
customer value
Implement actions to provide value
to customers

2
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Focus of Organization with different
Orientation
Sales
Market
Societal Mktg
How can we sell more aggressively?
How to meet customers
want and need better than competition?
What do customers want/need, and how can
we benefit society?
2
Production What can we make or do more efficiently?
Orientation
Focus
What can we make or do best quality? Product
Marketing
What do customers want and need?
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Societal Marketing Orientation
An organization exists not only to satisfy
customer wants but also to preserve or
enhance individuals and societys long-term
best interests.
For example:
Less toxic products
More durable products
Products with reusable or recyclable
materials
2
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Reserved.
33
Sales vs. Market Orientations
Sales
Orientation
Market
Orientation
Organiz-
ations
Focus
Firms
Business

For
Whom?
Primary
Profit
Goal?
Tools to
Achieve
Selling
goods and
services
Everybody Maximum
sales
volume
Primarily
promotion
Inward
looking
What the
firm makes
Outward
looking
What the
Market
wants

Coordinated
use of all
marketing
activities
Customer
satisfaction
Specific
groups of
people
Satisfying wants
and needs/
providing
benefits that
customers seek
3
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Sales or Market Orientations?
Check characteristics:
Organizations focus (firm/customer need and
preferences)
Firms business (delivering goods, services/
satisfying customers)
Whom the product is directed (market/segment)
Firms primary goal (short/long term profits)
Tools the organization uses to achieve its goals
(intensive promotion/customer satisfaction)
3
Marketing Management Tasks
Choose value
Design value
Deliver value
Communicate value
Develop market strategies
and plans
Assess market opportunities
and customer value

Sustain growth
and value

Marketing Myopia
Defining Business - Product Bases
(narrow) vs.
Market Based (Broad)
5. Conclusion
3. Options or alternatives available
2. Objective and Criteria
4. Evaluation of options (as per criteria above)
1. Identification of Problem and other issues
Thank you