Copyright ©2014 by Pearson Education, Inc.

All rights reserved

What Is Marketing?
Marketing is an organizational function
and a set of processes for creating,
communicating, and delivering value
to customers and for managing
customer relationships in ways that
benefit the organization and its
stakeholders.
What Is Marketing Management?

Marketing management is the

art and science
of choosing target markets
and getting, keeping, and growing
customers through
creating, delivering, and communicating
superior customer value.
What Is Marketed?
• Goods
• Services
• Events
• Experiences
• Places

Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice Hall 1-6

What Is Marketed?
• Persons
• Properties
• Organizations
• Information
• Ideas
Characteristics of Current Millennium
a)    Seamless Global Society
 Internet reduced the gap between different
societies.
 Gap on account of physical distance,
information and knowledge now redundant.
 Emergence of a global society and universal
values.
 Universal value relates to the concept of time.
 Time is an indicator of opportunity.
 New concept of value.

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Characteristics of Current Millennium
 Customers expect global products and
services at local prices.
 Developments in telecommunication will
further contribute to the emergence of these
universal concepts relating to time and value
maximization.
 Mobile telephony also has altered the
concept of space, time and location.

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Characteristics of Current Millennium
b) Basis for Competitive Advantage
 Knowledge management.
 Creation, dissemination and protection of
knowledge in the organization is perhaps the
most crucial armour for competitive survival.

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Characteristics of Current Millennium
c) Business at the Speed of Thought
 Conduct business operations at the lightning
speed of human mind.
 Should be possible to offer products and
services just at the time when their idea has
occurred in the customer's mind.
 Emergence of online help, which in many
cases has made conventional form of service
redundant.
 Interactive technologies are already
eliminating several roles in the marketing of
product and services.

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Characteristics

of Current Millennium
Product Life Cycles will be far shorter
 Products will be standardised and hence the
opportunities to differentiate will also no
longer exist.
 The differentiator will be the ability of the
marketer to creatively customize them to the
customer.
 Interactive technologies come to the
marketers’ rescue.
 Key issue in these technologies is updating
the customer database and proactively
marketing research based product solutions
and in turn moving the customer up the
technology path.
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Characteristics of Current Millennium
d)   Virtual Enterprise
 Size and the location of enterprise have no or
very little role.

e)    Customer: Co-producer of Products and

Services
  Customer expects the marketer to concentrate at
one end of the value chain and not to spread its
resources across the value chain.
  
  

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Marketing as a Concept
Marketing concept involves:
(a) customer orientation
(b) competition orientation
(c) the ability to respond to environmental
changes (changes in consumer needs,
competition, government policy, technology,
etc.) before the competition.

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What is marketing orientation and how can it
be employed in organisation?

(a) Consumer-orientation
Successful marketing companies
continuously monitor customer needs, wants
and preferences. Unfulfilled consumer needs
drive their new product development efforts

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What is marketing orientation and how can it
be employed in organisation?

(b) An integrated approach to exploiting

market opportunities
Integrate all elements of the marketing mix,
and not just merely advertising and selling,
into a sound business plan that could help to
successfully fight competition.

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What is marketing orientation and how can it
be employed in organisation?

(c) Futuristic approach

Money spent on marketing not an
expenditure but an investment.
Invest in market share development activities

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What is marketing orientation and how can it
be employed in organisation?
d) Highly developed marketing systems
Highly developed marketing systems that act
as market barometers.
Commonly used systems relate to complaint
management, customer feedback, customer
relationship management (CRM) and today
even e-CRM.
e) Marketing culture pervades the
organisation
f) Speed in responding to customer's
problems 1.21
Marketing and Selling Orientations
Orientation/ Focus Means Ends
Concept

Selling Product Aggressive selling and sales Maximise profits

promotion with emphasis on price through sales
variations to close the sale. “I must maximization
somehow hook the customer.”

Marketing Integrated marketing plan

Customer Maximise profits
encompassing product, price,
through increased
promotion and distribution backed
consumer satisfaction
up by adequate environmental
and hence higher
scanning, consumer research and
market share.
opportunity analysis—emphasis on
 
service "what can we do that will
make us better than and superior to
our competitors, in the customer's
eyes "?

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Marketing and Selling Orientations
Relationship marketing process emphasises on
continuous interactions between the firm and the
customer.
Customers lifetime value (LTV), which gets
enhanced over a period of time.

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Marketing and Selling Orientations
LTV represents stream of future profits from
customer transactions discounted at an
appropriate rate back to its current net present
value. LTV of any customer is also based on :
a)   Reduced acquisition costs
b)  Sales Revenue Growth from each customer
account
c) Cost savings resulting from efficiency in customer
purchases and sales to them over a long term.
d)  Referrals leading to word of mouth publicity &
e) Price Premium that a retained and loyal customer
is willing to pay as they are less price sensitive.

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Marketing and Selling Orientations
 Customer centric organisation :its important that
the firms need to take care of their internal
customer also.
 Internal customer want: 
* Colleagues who are friendly and willing to help.
* Courtesy and being treated as an individual.
* Efficient, friendly and knowledgeable concepts.
* Pleasant approach.
* Getting their expectations met.

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Marketing and Selling Orientations
Colleagues who are
friendly & willing to
help

Receiving that Courtesy & being treated

Little bit extra as an individual
Internal
Customer
Care
Having their Efficient, friendly &
expectations met knowledgeable service

Concern
Pleasant for needs
Approach

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Marketing and Selling Orientations

Caring Cooperating

Communicating

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Marketing Orientation vs Other Orientation
Dimension of Production Technology Sales Marketing
organisation

Focus Effective R&D Sales Customer

utilisation Transactions
of Machines
Goal Optimal Capacity Stay ahead Sale Market Customer
utilisation through bondage
technology
Strategy Economies of State of the Art Price Promotion Customer bonding
Scale and Scope technology through integration of
organisation with the
customer needs
Structure Functional Task Force Functional
Matrix
Control Conventional Profit Centre Sale and Customer Satisfaction
Systems (P&L & Budget) Collection of Index and Market share
outstandings
Skills Manufacturing Research Selling and Analytical
Conversational  

Styles Task-oriented Task-oriented People-oriented Team-oriented

 

Mind Set We need to push Push for best Hook the What is it that we can
production product customer make here or source
volumes from outside to satisfy
needs of target
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customer
Marketing as a “Process”
Marketing involves an exchange transaction between
the buyer and the seller.
Marketing emphasises on the mutual satisfaction of
both—the buyer and the seller.
Development of a long-term relationship between
them.

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 The Changing Marketing
Landscape

Digital Age
• Online marketing is the fastest-growing
• Click- and- mortar companies evolved

Copyright ©2014 by Pearson Education, Inc. All rights reserved