Introduction to Marketing Concept, Evolution of

Marketing & Customer Orientation

MARKETING CONCEPTS

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 What is Marketing ?
• Café Coffee Day
Touch by Marketing
 Business = Marketing
• When it is Practiced to near perfection…..

• Many entrepreneurs assume

Business = Marketing

Peter Drucker, Business has just two basic

functions, Marketing & …………..
Why is Marketing Important ?
Example

Value Proposition
• Identifying and meeting human social
needs
• Example
• Thus we see Marketing Management as
the art & Science of choosing target
markets & getting, Keeping, & growing
Customers through creating, delivering, &
communicating Superior Customer Value.
 Needs / Wants / Demand
• Needs are the basic human requirements.
• These needs become wants when they are
directed to specific objects that might
satisfy the needs
• Demands are wants for specific products
backed by an ability to pay.
 MARKETING CONCEPTS
Marketing Concept
Needs Wants Demands
Basic Specific satisfiers of Specific Wants for
What satisfaction Deeper needs, wants Products wants+
Existing, few Are many Purchasing power
Ability& willingness
m to buy
Natural not Shaped by social, Shaped by status,
Influencer created Aspirations
Family,Inst Pramotion
Food,clothing, Needs food,wants Needs car/TV,wants
Instance belonging Mcdonalds, Needs Luxary,flat TV
Clothes want AllenSoly demands Plasma tv
Existing, Influence wants, Influence demand by
Marketers Minimum Affordable & Making product
Influence,House Available bank loans Attractive,aspirational
EMIs 3Bed Room Status Duplex/Bunglow

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 What is Marketed ?
 Meeting human Needs
 Who are our Customers ?
 What are their needs ?
 What must we do to meet their needs ?
 Goods
 Services
 Events
 Experiences
 Persons
 Place
 Organizations
Marketing Myopia
• Customer buy
Benefits/ Service/
Solutions/ Value
satisfactions. Not
Product
• In 1991 CRM the dept
took more than 12
weeks to respond to
customer grievances
• Cost of Compensating
customer was rising.
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• Identify buyer subsets with similar needs
demonstrating similar buyer behavior-
segmentation
• Segment- Viable, profitable, measurable,
potential Competitive.
 Segmentation- Where to
compete
Market Segment 1 Segment 2 Segment 3

Cars

Private Company Taxi

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 Segmentation Criteria
Geographic
Nations, states,
regions or cities

Demographic
Age, gender,
family size and life
cycle, or income

Psychographic
Social class, lifestyle,
or personality

Behavioral
Occasions, benefits,
uses, or responses
 Targeting Strategies
• Standardization-Firm offer same product
to different market segments, It uses the
same communication, pricing &
distribution strategy Eg- Coke , Pepsi who
retain same flavor , advertising , packaging
.
• Customization

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 Physical Positioning
NANO –The wonder CAR
Limitation of physical Positioning
• A Simple comparison of only the physical
dimensions of alternative offerings usually
does not provide a complete picture of
relative positions.

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Position that firms successfully have
claimed in India
• Beauty-Lux
• Premium-Bose, Benz
• Thanda-Coke
• World Scale-Reliance
• Generic-Cadbury/ xerox/ Amul Butter
• Delivery-Domino’s Blue Dart
• Service-Private Banks, Maruti

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Position that firms successfully have
claimed in India
• Fast food-Udipi, VadaPava, Sandwich
• Range-Vijay sales, Alfa, Nokia
• Youth-Pepsi
• Fever-Crocin
• Innovation-Sony,Casio
• Macho-Enfield Bullet
• Performance- Nokia, Bata,Titan

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Position that firms successfully have
claimed in India
• Friendly Salesman-Eureka Forbes
• Reach-HLL, Glaxo, Colgate
• Kids-McDonalds, Esselworld, J&J
• Indian MNC-Ranbaxy, Infosys, Wipro
• Economy-Big Bazar
• Value-Dollar Shops, Factory Outlets
• Tourism- Goa, Kerala, Rajasthan
• Headache-Saridon,Anacin

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Role of Marketing in Modern organization

• The role of marketing in modern

organization is that of integrating the
needs & wants of the customers with
other organizational functions like
production, R&D, finance, & personnel,
examples of today's companies show that
neither marketing nor any other function
alone holds the key to success, Rather, all
are important.

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 PRODUCT
• Product-offered to satisfy need/wants
1 Product-Tangible
Services-Intangible
2 Products also deliver services eg car,

3 Focus on products service risky

eg TV, Fridge, AC without back-up service team

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 BRAND
• Brand –An identifying symbol/words/
mark distinguishing a product
company, from its competitors.
Branding is essential part of marketing
Brand=functional+Economic+Emotional
Nokia-functional,Amul-Economic
Saffola-Emotional

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 Market
• Market:- Potential +Existing customers sharing a
common needs/wants, able & willing to
engage/enter in exchange to satisfy their needs/
wants eg:- Pharma Market=Doctors+ Hospitals+
Trade

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 Value
• Consumer’s estimate of the utility/capacity
of a product/ brand to satisfy their needs.
Fair return
• Price is what you pay, value is what you get
eg: Mobiles,

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• Customer’s-one who buys goods or services—
Mother

• Consumer- one who consumes, but may or may not

have purchased

• Client- A Customer/ Consumer/party who pays for

professional services, lawyer, Hotel, Consultancy

• Customer Satisfaction-Core quality, services, value,

Desire(within an arms length of desire, coke)
Consumers Delight ( Kingfisher airlines)Delivery
( Blue dart) Services (icici bank)
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 Marketing Mix
• One of the major objective of any org is to become a
market leader. This applies not only to company but
even to non- profit making org like educational
institutions, hospital—hence marketing mix
• The concept of marketing mix involves a
• deliberate & careful choice of organization, product,
price, promotion & place strategies & policies

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 Marketing to Non profit &social causes

• Family planning, Child care, immunization

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 Marketing
• Marketer- M.Mix+ Strategy
Brand

Value

Customer

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 Marketing War for Customer share
• July 2000 TV channel star launched
KBC at 9pm
Reward 1cr-Roaring Success
Rest, cinema house, Mkt were deserted at 9pm
V/S
Zee TV Sawal dus cr ka-Anupam kher
prize money 10 times of KBC
V/S
Sony –Chappar phad ke-Govinda

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• In 2005—KBC back after 2 yrs
• Various Incentive to Buy Air ticket Jet,
Sahara Spice jet

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 Mission:
• Create a difference between company’s &
Competitors offering on a attribute
important to customers, to provide
value,scope.

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 Defination
• Identifying, Creating, managing demand to
provide value to a customer for a profit-
Kotler
• Mgmt process that Identifies,
anticipates , satisfies customer
requirements profitably.

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• The right product, in the right place, at the
right time, at the right price-Adcock
• Marshalling Organizational resources to
meet changing needs of the customer.-
Palmer

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 Marketing
• Holistic Marketing: From product to
customers focus, from selling products to
satisfying customers.
Visualizing broader ways to serve
customers & assess how all departments
affect customer satisfaction-delivery,
service & Performance.

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• Reverse Marketing: Customers initiatives
help design products marketing mix. eg-
PCs, Travel
• Experiential Marketing: Customers
experience/simulate product before
buying, foods, CDs.

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 Planning
• Process of anticipating future events &
conditions to determine the best way to
achieve organizational objectives.

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• Market Planning.
• Strategic Planning:
• Tactical Planning:

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 Management
• Optimal utilization of resources to
achieve objectives
1. Management is doing things right,
leadership is doing right things-Peter
Drucker
2. Manager-Responsible for application &
performance of knowledge-Peter D.
3. Marketing Management: Demand
Management.

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Supply Chain
IMC
Integrated Marketing
Communication