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Defining Marketing
for the new realities
 Chapter Questions
 Why is marketing important?
 What is the scope of marketing?
 What are some fundamental marketing
concepts?
 How has marketing management changed?
 What are the tasks necessary for successful
marketing management?
What is Marketing??
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
• Persons
 What is Marketed?

• Places
• Properties
•
Organizations
• Information
• Ideas
 Key concepts
 Segmentation?
 Target Market?
 Positioning?
Market segmentation refers to dividing the
markets into segments of customers

Target marketing refers to which segments to

go after
 Key concepts
 Needs?
 Wants?
 Demands?
Understanding the Marketplace
and Customer Needs
Customer Needs, Wants, and Demands

Needs
●
States of deprivation
●
Physical—food, clothing, warmth, safety
●
Social—belonging and affection
●
Individual—knowledge and self-expression

Wants Form that needs take as they are shaped

●

by culture and individual personality

Demands
Company Orientations

Production

Product

Selling

Marketing

Societal
Marketing Management Orientations

Produc Produc Market Societ

Selling
tion t ing al
conce
conce conce conce conce
pt
pt pt pt pt
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The Marketing Management
Concepts
 Production Concept
 Widely available and of low cost without
considering needs of the customer
 eg Standard raw materials.
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 Product Concept
 Consumers favor products that offer the most
quality, performance, or innovative features.
Eg Apple, Samsung, Honda etc
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 Selling Concept
 Consumers will buy products only if the
company aggressively promotes or sells these
products.
 Examples?
 Marketing Concept
Focuses on needs/wants of target markets &
delivering value better than competitors. The
marketing concept believes in the pull strategy.
 Eg customized cakes
 BYOB
 Subway
 Frozen foods etc
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 Societal concept
 The societal marketing is a marketing
concept that holds that a company should
make marketing decisions by considering
society's well being as well.
Demand States
 Negative  Irregular
 Nonexistent  Unwholesome
 Latent  Full
 Declining  Overfull
 Negative demand: consumers dislike the
product and may even pay to avoid is a type of
demand which is created if the product is
disliked in general. The product might be
beneficial but the customer does not want it.

 Declining demand is when demand for a

product is declining. For example, when CD
players were introduced and IPOD came in the
market, the demand for walkman went down
 Irregular demand: Irregular demand can be demand
which is not consistent. products like umbrellas, air
conditioners or resorts. These products sell irregularly
and sell more during peak season whereas their
demand is very low during non seasons.

 Unwholesome demand: It is demand for things that

most people perceive as bad. They may be bad, for
your health, or perhaps they are a danger to society.
When there is unwholesome demand for a product,
there are efforts to discourage consumers from
purchasing it. Products such as cigarettes and
alcoholic drinks have serious health risks.
 Full demand: the demand is meeting with the
supply potential of the company. In an ideal
environment company should always have full
demand.

 Overfull demand: When the demand is more

than the supply of the company.
 Non existent demand: consumers may be
unaware of or uninterested in the product. for
example- College students may not be
interested in a foreign language course.
Family planning is a non-existent demand for
rural people.
 Latent demand:Consumers may share a
strong need that cannot be satisfied by an
existing product.
 One of the best known examples of latent
demand is smartphones. Initially a phone was
used just for calling and texting. As consumers
demanded, more and more features like radio,
internet connectivity, touchscreen etc. began
to be added to the product. Thus the transition
took place from basic phones to feature
phones to smart phones.
Figure 1.1 Structure of Flows in
Modern Exchange Economy
Figure 1.2
A Simple Marketing System
Key Customer Markets
 Consumer markets
 Business markets
 Global markets
 Nonprofit/Government markets
Types of Needs

Stated

Real

Unstated

Delight

Secret
 Stated Needs: Which is explicitly expressed
by the buyers.
 Unstated Needs - Which buyer assumed that
it will be fulfilled by default.
 Delight. Needs that are not essential but
would delight if met. Unexpected: needs that
are not expected or required, but would delight
the customer.
 Real Needs are rational needs are consumer
preferences or selections based upon
objective measures or a conscious, logical
reason
 Secret Needs that the customer does not
express.
. Stated needs (The customer wants an inexpensive car.)
2. Real needs (The customer wants a car whose operating cost, not initial
price, is low.)
3. Unstated needs (The customer expects good service from the dealer.)
4. Delight needs (The customer would like the dealer to include an onboard
GPS navigation
system.)
5. Secret needs (The customer wants friends to see him or her as a
knowledgable consumer.)
Core Concepts
 Marketing
Needs, wants,
channels
and demands
 Target markets,
Supply chain positioning, segmentation
 Offerings and brands
Competition
 Value and environment
Marketing satisfaction
 Marketing planning
Target Markets,
Positioning & Segmentation
Offerings and Brands
Value and Satisfaction
Marketing Channels

Communication

Distribution

Service
Marketing Environment

Demographic Economic

Socio-cultural
Political-legal

Technological Natural
 The New Marketing Realities
 Technology
 Globalization
 Social Responsibility
 Holistic marketing acknowledges that
everything matters in marketing—and that a
broad, integrated perspective is often
necessary.

 In which you consider business as a whole

and not as an entity with various different
parts.
Holistic Marketing
Relationship Marketing

Customers

Employees

Marketing Partners

Financial Community
 Four key constituents for relationship
marketing are customers, employees,
marketing partners (channels, suppliers,
distributors, dealers, agencies), and members
of the financial community (shareholders,
investors, analysts).
 Marketers must create prosperity among all
these constituents and balance the returns to
all key stakeholders. To develop strong
relationships with them requires understanding
their capabilities and resources, needs, goals,
and desires
Integrated Marketing
 Integrated Marketing
 Delivering consistent and relevant content
across all channels,
 Develop and manage communication
campaigns that integrate advertising , PR,
sales promotion etc to deliver consistent
message.
Internal Marketing

Internal marketing is the task of

hiring, training, and motivating able employees
who want to serve customers well.
Performance Marketing

Financial Social Responsibility

Accountability Marketing
 Types of
Corporate Social Initiatives
 Corporate social marketing
 Cause marketing
 Cause-related marketing
 Corporate philanthropy
 Corporate community involvement
 Socially responsible business practices
The Marketing Mix
The New Four Ps

People

Processes

Programs

Performance
 People
 People reflects, in part, internal marketing and
the fact that employees are critical to
marketing success. Marketing will only be as
good as the people inside the organization. It
also reflects the fact that marketers must view
consumers

 People who makes the product, who bring the

product to the customer people who talk to
customer.
 Process
 Process reflects all the creativity, discipline,
and structure brought to marketing
management.
 How everything fits together and how it
reaches to the customer & how effectively
everything is managed. The actual
procedures, mechanisms, and flow of activities
by which the service is delivered – this service
delivery and operating systems.
 Programs
 Programs reflects all the firm’s consumer-
directed activities.
 It reflects all the old 4P’s and many other
marketing activities required to market a
product or service. Regardless of that they are
online or offline, traditional or nontraditional
the integration of all these activities is
absolutely necessary in order to reach a
higher development of the company.
 Performance

 Performance of the new 4 Ps is looking at how

well a product is doing from a financial and
non-financial standpoint
Marketing Management Tasks
 Develop market strategies and plans
 Capture marketing insights
 Connect with customers
 Build strong brands
 Shape market offerings
 Deliver value
 Communicate value
 Create long-term growth
 For Review
 Why is marketing important?
 What is the scope of marketing?
 What are some fundamental marketing
concepts?
 How has marketing management changed?
 What are the tasks necessary for successful
marketing management?