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WELCOME

TO

THE WORLD OF MARKETING

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NATURE AND SCOPE OF

MARKETING

CORE CONCEPTS

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Good Marketing is No Accident

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The roaring success

of four-wheeler Tata

Ace, in a market

earlier dominated bythree-wheeler load

carriers, was due to a

deep understanding

of the market needsand customer

requirements.

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What is Marketed?

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Goods

Services

Events & Experiences

Persons

Places & Properties

Organizations

Information

Ideas

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Marketing Can Promote Ideas

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Selling is only the tip of the iceberg

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There will always be a need for

some selling. But the aim of marketing

is to make selling superfluous. The aimof marketing is to know and understand

the customer so well that the product or

service fits him and sells itself. Ideally,

marketing should result in a customer

who is ready to buy. All that should beneeded is to make the product or

service available.

Peter Drucker

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Contrast in Marketing/Selling

Philosophies

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What is

Marketing?

Process by which individuals andgroups obtain what they needneed and wantwantthrough creating and exchangingexchangingproductsproducts and value with others.

More simply: Marketing is thedelivery of customer satisfaction at a

profit.

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What is Marketing?

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Marketing is an organizational function

and a set of processes for creating,

communicating, and delivering valueto customers and for managing

customer relationships

in ways that benefit theorganization and its stakeholders.

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What is Marketing Management?

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Marketing management is the

art and science

of choosing target marketsand getting, keeping, and growing

customers through

creating, delivering, and communicatingsuperior customer value.

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Concepts

Productsand

Services

Value, satisfaction,and quality

Needs, wants,and demands

Exchange, transactions,and relationships

Markets

CoreMarketingConcepts

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Consumer

to Take Action? NeedsNeeds - state of felt deprivation for basic itemssuch as food and clothing and complex needssuch as for belonging. i.e. I am thirsty

WantsWants - form that a human need takes as shapedby culture and individual personality. i.e. I wanta Coca-Cola.

DemandsDemands - human wants backed by buyingpower. i.e. I have money to buy a Coca-Cola.

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Consumers

Needs and Wants? ProductsProducts - anything that

can be offered to amarket for attention,acquisition, use orconsumption and thatmight satisfy a need orwant.

Examples: persons,places, organizations,activities, and ideas.

ServicesServices - activities orbenefits offered for salethat are essentiallyintangible and dontresult in the ownershipof anything.

Examples: banking,airlines, haircuts, andhotels.

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Obtain

Products and Services? ExchangesExchanges - act of obtaining a desired object fromsomeone by offering something in return.

TransactionsTransactions - trade of values between parties.Usually involves money and a response.

RelationshipsRelationships - building long-term relationships with

consumers, distributors, dealers, and suppliers.

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Choose

Choose Among Products

andServices? Customer ValueCustomer Value - benefit that the customer

gains from owning and using a productcompared to the cost of obtaining the

product.

Customer SatisfactionCustomer Satisfaction - depends on theproducts perceived performance in

delivering value relative to a buyersexpectations. Linked to Quality and TotalQuality Management (TQM).

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W o Purc ases

Products

and Services?

Market - buyerswho share a

particular needor want that canbe satisfied by a

companys productsor services.

ActualBuyers

PotentialBuyers

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Company Orientations

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Production

Selling Marketing

Product

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ar et ng

Management

PhilosophiesProduction ConceptProduction Concept

Product ConceptProduct Concept

Selling ConceptSelling Concept

Marketing ConceptMarketing Concept

Societal Marketing ConceptSocietal Marketing Concept

Consumers favor products that areavailable and highly affordable

Improve production and distribution

Consumers favor products that offerthe most quality, performance, and

innovative features

Consumers will buy products only ifthe company promotes/ sells theseproduct

Focuses on needs/ wants of target

markets & delivering satisfactionbetter than competitors

Focuses on needs/ wants of targetmarkets & delivering superior value

Societys well-being

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Concepts

Contrasted

FactoryExisting

Products

Selling

and

Promoting

Profits

through

Volume

MarketCustomer

Needs

Integrated

Marketing

Profitsthrough

Satisfaction

The Selling Concept

The Marketing Concept

StartingPoint

Focus Means Ends

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oc e a ar e ng

Concept

Society

(Human Welfare)

Consumers

(Wants)

Company

(Profits)

SocietalMarketing

Concept

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Key Customer Markets

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Consumer Markets

Business Markets

Global Markets

Nonprofit/ Government Markets