What is Marketing…??

Selling?
Advertising?
Promotions?
Making products available in stores?
Maintaining inventories?

All of the above, plus much more!

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 Marketing = ?

Marketing is the process of planning and executing the

conception, pricing, promotion, and distribution of ideas,
goods, services to create exchanges that satisfy
individual and organizational goals
American Marketing Association

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 Marketing = ?

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.

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 Marketing = ?

 Marketing is the sum of all activities that take you to a

sales outlet. After that sales takes over.
 Marketing is all about creating a pull, sales is all about
push.
 Marketing is all about managing the four P’s –
 product
 price
 place
 promotion

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 The 4 Ps & 4Cs

Marketing Convenience
Mix

Place
Product

Customer
Solution Price Promotion

Customer Communication
Cost
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 Difference
Difference Between
Between -- Sales
Sales &
& Marketing
Marketing ??

Sales
trying to get the customer to want what the
company produces
Marketing
trying to get the company produce what the
customer wants

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Scope – What do we market
 Goods
 Services
 Events
 Experiences
 Personalities
 Place
 Organizations
 Properties
 Information
 Ideas and concepts

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 Core Concepts of Marketing

Based on :
 Needs, Wants, Desires / demand
 Products, Utility, Value & Satisfaction
 Exchange, Transactions & Relationships
 Markets, Marketing & Marketers.

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 Marketing Management Philosophies

Production
Product
Selling
Marketing- Relationship Marketing
-Holistic Marketing

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 The Production Concept
The production concept is one of the oldest
concepts in business. It holds that consumers
will prefer products that are widely available
and inexpensive. Managers of production
oriented businesses concentrate on achieving
high production efficiency, low costs, and
mass distribution.

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 The Product Concept
The product concept holds that consumers will
favor those products that offer the most
quality, performance or innovative features.
Managers in these organizations focus on
making superior products and improving them
over time. However, these managers are
sometimes caught up in a love affair with their
products.

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 The Selling Concept
The selling concept holds that consumers and
businesses, if left alone, will ordinarily not buy
enough of the organization’s products. The
organization must , therefore,undertake an
aggressive selling and promotion effort.
Sergio Zyman, Coca-Cola’s former Vice President of
marketing: The purpose of marketing is to sell more
stuff to more people more often for more money in
order to make more profit.

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 The Marketing Concept
The marketing concept emerged in the mid 1950s. Instead of a
product-centered, “make and sell” philosophy, business shifted to
a customer –centered, “sense-and-respond” Philosophy.

The job is not to find the right customers for your products, but the
right products for your customers.

The marketing concept holds that the key to achieving organizational

goals consists of the company being more effective than
competitors in creating , delivering, and communicating superior
customer value to its chosen target markets.

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The Holistic Marketing Concept
The holistic marketing concept is based on the
development,design, and implementation of
marketing programs, processes and activities
that recognizes their breadth and
interdependencies. Holistic marketing recognizes
that “everything matters” with marketing –and
that a broad, integrated perspective is often
necessary. Four components of holistic
marketing are relationship marketing, integrated
marketing, internal marketing and social
responsibility marketing.
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Holistic Marketing Dimensions

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 Marketing Myopia

Marketing myopia occurs when sellers pay more

attention to the specific products they offer
than to the benefits and experiences
produced by the products.

They focus on the “wants” and lose sight of the

“needs.”

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 Value & Satisfaction
Care must be taken when setting expectations:
– If performance is lower than expectations,
satisfaction is low.
– If performance is higher than expectations,
satisfaction is high.

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 Customer Relationship Management

The overall process of building and maintaining

profitable customer relationships by delivering
superior customer value and satisfaction.
– Acquiring customers
– Keeping customers
– Growing customers

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 Customer Satisfaction
Dependent on the product’s perceived
performance relative to a buyer’s
expectations.
– Customer satisfaction often leads to consumer
loyalty.
– Some firms seek to DELIGHT customers by
exceeding expectations.

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 Who is a Customer ??

CUSTOMER IS . . . . .

Anyone who is in the market looking at a product / service

for attention, acquisition, use or consumption that satisfies a
want or a need

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 Customer –

CUSTOMER has needs, wants, demands and

desires
Understanding these needs is starting point of the
entire marketing
These needs, wants …… arise within a framework
or an ecosystem
Understanding both the needs and the ecosystem
is the starting point of a long term relationship

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Customers - Problem Solution

As a priority , we must bring to our customers

“WHAT THEY NEED”
We must be in a position to UNDERSTAND their
problems
Or in a new situation to give them a chance to AVOID
the problems

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 Customer looks for Value

Value = Benefit / Cost

Benefit = Functional Benefit + Emotional
Benefit
Cost = Monetary Cost + Time Cost +
Energy Cost + Psychic Cost

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 NEEDS, WANTS & DEMANDS
Types of needs Types of demand
1. Stated needs 1. Negative demand
2. Real Needs 2. Non-existant demand
3. Unstated needs 3. Latent demand
4. Delight needs 4. Declining demand
5. Secret needs 5. Irregular demand
6. Full demand
7. Overfull demand
8. Unwholesome demand