Introduction to Marketing

Prepared by : Lecturer, VITAM

Mrs. Madhusmita Das

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What is Marketing?

Social definition

A societal process by which individuals and groups obtain what they need and want through creating, offering and freely exchanging products and services of value with others

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What is Marketing?

Management definition

It is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational goals.

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What is Marketing Management?

According to Philip Kotler, Marketing management is the art and science of choosing target markets and building profitable relationship with them. This involves getting, keeping and growing customers through creating, delivering and communicating superior value.
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Marketing Management involves

( Core Marketing Concepts) Need, Wants & Demand

Needs are basic human requirements Wants are needs directed to specific objects/services that might satisfy the need. Demand: This is the wants for specific products backed by purchasing power and willingness to buy.(ability to pay)
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Product

A product is any offering catered to satisfy needs and wants. A brand is when the product is from a known source.

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Need: Transportation- Student has to reach college in time. Buses are not dependable. Want: The students wants a bike, which looks grand, has many latest features and is dependable. Pulsar, cbz extreme. Demand: Purchasing power is provided by the boys father, who also 3/31/12 the willingness to buy the bike, has

. Need, want and demand of an MBA student

Target Market

Very rarely does a product cater to the entire market. Most products are designed to cater to a group of customers who specifically want such a product. This group of customers is the target market which is a slice of the total market. We say it is the market segment.
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Value and Satisfaction

Value = Benefits/Costs Benefits = Functional Benefits + Emotional benefits Costs = Monetary costs + Time + Energy + Psychic costs

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Exchange

Get something (product /service) by offering something in return. Eg. kind (barter) or money (value ) Exchange is a value creating process because it leaves both parties better off (win win situation)
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Transaction and Transfer

A transaction is an exchange between two things of value on agreed conditions and a time and place of agreement. A transfer is a one way exchange without receiving anything in return.

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Relationship Marketing

Building long term mutually satisfying relations with customers, suppliers, distributors in order to retain their long term preference and business

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Marketing Network

A marketing network is the relationships built with its stakeholders. Effective relationships make up an effective and strong network

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Marketing Channels

Marketing channels are used to reach the target segment. Communication channels

eg. Advertising, telephone enquiry system

Distribution channels trade, direct sales

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Supply Chain

The supply chain represents a value delivery chain from procurement of raw materials to final delivery of product to consumer.

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Competition

Potential and rival substitutes and offerings a buyer might consider. Competition can be viewed in various perspectives brand, industry, form, generic

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Marketing Offers
Tangibles Non-durables Durables Non-tangibles Services Activities Others Persons, Ideas Places, Events Organisations Information Experiences

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Marketing Environment

Competition Customers Govt. policies Suppliers Trade

Product Import tariffs Trends Technolog y Politics

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Marketing Mix

It is the tools that an organization employs to pursue its marketing objectives in the target market 4 Ps - Product, Price, Place, Promotion 3/31/12

Concepts under which firms conduct marketing activities

Production concept: The production concept, one of the oldest in business, holds that consumers 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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Marketing Concept: Societal Concept:

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Societal Marketing Concept

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Model T Best Example for Production Concept

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Customer needs

Stated needs Real needs Unstated needs Delight needs Secret Needs

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Company Responses and Adjustments

Reengineering: From focusing on functional departments to reorganizing by key processes, each managed by multidiscipline teams.

Outsourcing: From making everything inside the company to buying more products from outside if they can be obtained cheaper and better. Virtual companies outsource everything, so they own very few 3/31/12

Company Responses and Adjustments

Benchmarking: From relying on self-improvement to studying worldclass performers and adopting best practices. Alliances: From trying to win alone to forming networks of partner firms. Partnersuppliers: From using many suppliers to using fewer but more reliable suppliers who work 3/31/12 closely in a partnership relationship

Marketer Responses and Adjustments

Relationship marketing: From focusing on transactions to building long-term, profitable customer relationships. Companies focus on their most profitable customers, products, and channels. Customer lifetime value: From making a profit on each sale to making profits by managing customer lifetime value. Some 3/31/12

Marketer Responses and Adjustments

Target marketing: From selling to everyone to trying to be the best firm serving well defined target markets. Target marketing is being facilitated by the proliferation of special-interest magazines, TV channels, and Internet newsgroups. Individualization: From selling the same offer in the same way to everyone in the target market to 3/31/12

Marketer Responses and Adjustments

Integrated marketing communications: From reliance on one communication tool such as advertising to blending several tools to deliver a consistent brand image to customers at every brand contact. Channels as partners: From thinking of intermediaries as 3/31/12