Understanding The Marketing Process: By: Durgesh Satpathy Lecturer in Management, Imperial College

Understanding the Marketing
Process
By: Durgesh Satpathy
Lecturer in Management, Imperial College
http://durgeshsatpathy.com
What is Marketing??
Definition:
The committee of Marketing Teachers Association of the
U.S.A. defines Marketing as:
"Marketing consists of the performance of business activities
that direct the flow of goods and services from producer to
consumer or user.
The Chartered Institute of Marketing defines marketing as:

"the management process responsible for identifying,
anticipating and satisfying customer requirements profitably.
Concept of Marketing:
The marketing concept is the strategy that

firms implement to satisfy customers needs,
increase sales, maximize profit and beat the
competition.
Production Concept:
Consumers will favor products that are available and
highly affordable
Organization should therefore focus on improving
production & distribution efficiency.
Example:
Lenovo in China or HP with UP Govt. Laptop
Distribution Scheme
Product Concept
The product concept holds that the consumers will
favor products that offer the most in quality,
performance and innovative features.
Apple is a well known company for its gadgets &

technology
In order to follow the product concept, they evolve
themselves from i-phone 3g (2009) to the i-phone 7s
Apple Blackberry
Very User Friendly Not User Friendly
Follows what customers Doesnt meet customer
demands demands
Amazing new features Only have limited
with every new models features
Follow product concept Doesnt follow the
diligently. product concept
Drawbacks of product concept
Selling Concept
consumers will not buy enough of the firms
products unless it undertakes a large-scale
selling and promotion effort.
Example:
Life Insurance Companies, Encyclopedia
(Aggressive marketing.. bye bye )
Marketing Concept
achieving organizational goals depends on knowing
the needs and wants of target markets and delivering
the desired satisfactions better than competitors do.
Example
Toyota Motors:
Market Research & Understanding consumer needs
Providing value to customer
Profit through customer loyalty in long run
Societal Marketing Concept
Marketing strategy should deliver value to
customers in a way that maintains or improves both
the consumers and societys well-being.
Societal
Example: (Human
Welfare)
Tata Motors
Ariel by P&G
Social
Imperial College Marketing
Nihar Coconut Oil Concept
Consumers Company
(Wants) Profits
Assignments:
Difference between Selling & Marketing

Concept
Traditional Vs Modern Concept of Marketing
(How they effect Marketing Decision
Making)
How Societal Marketing Concept influence
the Organization
Various functions of Marketing
Marketing Environment
Organisation as a system :
A system is a set of objects, elements or components
that are interrelated and interact with one another.
These elements operate on inputs such as physical

resources, human resources and information to
accomplish common objectives such as productivity,
and satisfaction.
A system consists of inputs, processor, output and

feedback.
Inputs & Outputs:

It has its own environment from where it draws its inputs. It
offers output in the form of products, services, information
and ideas to satisfy environment demands.
Environment provides resources and opportunities

It also puts limits and constraints on the
organization, and influences its survival and growth.
Microenviroment:
Forces close to the company
That affect directly its ability to serve customers
Macroenvironment:
Larger, societal forces that affect the
organizations microenvironment
The Companys Microenvironment
The company:
Management, finance, research & development, purchasing,
manufacturing, accounting, and human resources
Suppliers
Marketing intermediaries:
Resellers
Physical
distribution firms
Marketing service
agencies
Financial
intermediaries
The Companys Microenvironment
Customers:
Consumer, business, reseller, government, and international
markets
Competitors
Publics:
Financial
Media
Government
Citizen-action groups
General
The Companys Macroenvironment
Demographic environment:
Study of human population
Size, density, location, age, race, sex, occupation, and education
Trends of interest:
World population
growth
Increased diversity
Changing households
Education
Geographic shifts
Economic environment:
Factors that affect consumer buying power and spending patterns
Trends of interest:
Changes in income, continued spending by consumers
Consumer debt levels
rising, savings down
Changing spending
patterns
Natural environment:
Growing shortages of raw materials
Increased pollution
Increased government intervention
Environmental Protection Act
Green movement
Focus on environmental sustainability strategies
Technological environment:
New technology creates new markets and opportunities
Replaces existing products and services
Research and development activity drives this sector
Government programs to
encourage more
Government agencies to
regulate new product
safety
Political environment:
Laws, government agencies, and pressure groups
Influence and limit organizations and individuals within a society
Increasing legislation
Increased emphasis on ethics and social responsibility
Cultural environment:
Institutions and other forces that influence
Societys basic values, perceptions, preferences, and behaviours
Core beliefs passed on through family, reinforced by institutions
Peoples views of:
Themselves
Others
Organizations
Society
Nature
The universe
Responding to the Marketing Environment
Passive approach:
Companies react to uncontrollable factors within their
environments
Environmental management perspective:
Proactive approach to influence and affect forces within their
environment
Use lobbyists to influence legislation
Media events, advertorials to shape public opinion
Use legal action when necessary
In Conclusion
The learning objectives for this chapter were:

Describe the environmental forces that affect the companys
ability to serve its customers
Explain how changes in the demographic and economic
environments affect marketing decisions
Identify the major trends in the firms natural and
technological environments
Discuss how companies can react to the marketing
environment
Role of Marketing in modern organization
Characteristics of Modern Marketers:
Basic Business Skills

Problem analysis and decision-making
Oral and written communication
Basic quantitative skills
Working well with others
Understanding Marketings Impact:
Marketing decisions shall not be taken in isolation
For example, making a decision to run a special sale that
significantly lowers the price of a product could present
supply problems if the production area is not informed well in
advance of the sale.
Technology Savvy:
Marketers must be skilled in using technology as part of their
everyday activities.
Marketers must understand emerging technology and
applications in order to spot potential business opportunities as
well as potential threats.
The Need for a Global Perspective:
Need to understand international trade and cultural
differences
Information Seeker
The field of marketing is dynamic.
Efficiency and Effectiveness
Ineffective Effective
Goes out of
Inefficient business quickly
Survives
Does well
Efficient Dies Slowly
Thrives
The Marketing Concept:
Customer orientation
Customer focused
Customer driven
Customer centric
Customer satisfaction
Market driven
Exceed customer expectations
Creating Customer Value
Product benefits Monetary costs

Service benefits Time costs
Relational benefits Energy costs
Psychological costs
Image benefits
Creating Customer Satisfaction
Delight
Delighters
Customer satisfaction
More is better
Neutral
Must be
Dissatisfaction
Absent Fulfilled
Presence of the characteristic
Thanks

Understanding The Marketing Process: By: Durgesh Satpathy Lecturer in Management, Imperial College

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Understanding The Marketing Process: By: Durgesh Satpathy Lecturer in Management, Imperial College

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Understanding the Marketing

The Chartered Institute of Marketing defines marketing as:

The marketing concept is the strategy that

Apple is a well known company for its gadgets &

Difference between Selling & Marketing

These elements operate on inputs such as physical

A system consists of inputs, processor, output and

Inputs & Outputs:

Environment provides resources and opportunities

The learning objectives for this chapter were:

Basic Business Skills

Product benefits Monetary costs

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