Information about marketing meaning, importance of marketing, core marketing concepts

2. After studying this chapter, you should
be able to understand:
1. Meaning of Marketing
2. Importance of Marketing
3. Core Marketing Concepts
LEARNINGOBJECTIVES

3.  Marketing is managing customer relationships and
identifying, meeting customer needs profitably.
 E.g. Mc Donald’s fulfils it “I’m lovin’ it” motto by
being “our customers’ favourite place and way to
eat”.
 Walmart has become the world’s largest retailer
and the world’s largest company by delivering on
its promise, “Save money. Live Better”.

4.  Marketing plays a key role in addressing
challenges faced by firms to prosper financially
and even survive in the face of an unforgiving
economic environment.
 Financial success often depends on marketing
ability.
 Marketing helps in introducing
and gain acceptance of new
products that have eased or
enriched people’s lives.

5.  It can inspire enhancements in existing products as
marketers innovate to improve their position in the market
place.
 Successful marketing builds demand for products and
services, which in turn, create jobs.
 The role of marketing is building strong brands and a loyal
customer base, intangible assets that contribute heavily
on the value of a firm.

6.  They must decide on
• what features to design into a new product,
• what prices to offer customers,
• where to sell products, and
• how much to spend on advertising, sales or internet.
• details such as the exact wording or color for new
packaging.

7.  The companies at greatest risk are those that fail to
carefully monitor their customers and competitors and to
continuously improve their value offerings.
 They take a short-term, sales-driven view of their business
and ultimately they fail to satisfy their stakeholders,
employees, suppliers and channel partners.
 Skillful marketing is a never-ending pursuit.

8.  There are five key functions for a CMO in leading
marketing within the organization:
 Strengthening the brands
 Measuring marketing effectiveness
 Driving new product development based on customer
needs
 Gathering meaningful customer insights
 Utilizing new marketing technology

9.  Marketing Management is the art and
science of choosing target markets and
getting, keeping and growing customer
through creating, delivering and
communicating superior customer value.

10.  Marketing people market 10 types of entities:
1. Goods (tangible)
2. Services (Intangible)
3. Events (time based – trade shows, ipl)
4. Experiences (Wonderla: amusement or water park)
5. Persons (Celebrity marketing – Artists, CEOs,
Physicians, e.g. Amitabh Bachchan, Sachin Tendulkar,
Shah Rukh Khan, Aishwarya Rai, Dhoni, Virat Kohli)

11. 6. Places (Cities, States, Regions, Nations e.g. Bangalore
– silicon valley of India, Incredible India – Tourism)
7. Properties (Intangible rights of ownership of real estate
or financial properties e.g.Estancia, Prestige Township
8. Organizations (Universities, Museums, Performing Arts
Organization e.g. corporate identity campaigns like
Philips “Sense and Simplicity”)
9. Information (Books, School, Magazines)
10.Ideas (Consultation e.g. social marketers promote
creating awareness about AIDS, discouraging smoking)

13.  Needs are the basic human requirements such as for air,
food, water, clothing, and shelter. Humans also have
strong needs for recreation, education, and entertainment.
 Wants - they are directed to specific objects that might
satisfy the need. A U.S. consumer needs food but may
want a Philly cheesesteak and an iced tea. A person in
Afghanistan needs food but may want rice, lamb, and
carrots. Wants are shaped by our society.

14.  Demands are wants for specific products backed by an
ability to pay and willingness to buy. Many people want a
BMW or Mercedes; only a few are able to buy one.
 Companies must measure not only how many people
want their product, but also how many are willing and able
to buy it.

15.  Negative Demand – Consumers dislike the
product and may even pay to avoid it. E.g.
Vaccination, Dental Work.
 Non-existent Demand - Consumers may be
unaware of or uninterested in the product. E.g.
Foreign language course.
 Latent Demand - Consumers may share a strong
need that cannot be satisfied by an existing
product. E.g. Harmless Cigarettes and fuel
efficient cars.

16.  Declining Demand - Consumers begin to buy the
product less frequently or not at all. E.g. Govt.
Schools, Packed drinking water bottles.
 Irregular Demand - Consumer purchases vary
on a seasonal, monthly, weekly, daily, or even
hourly basis. E.g. Umbrella, Air Conditioners or
resorts.

17.  Full Demand - Consumers are adequately
buying all products put into the marketplace. E.g.
Food Wheat, Rice, Medicines.
 Overfull Demand - More consumers would like to
buy the product than expected. E.g. Swift and
Baleno Cars
 Unwholesome Demand - Consumers may be
attracted to products that have undesirable social
consequences. E.g. Cigarettes and Alcohols.

18.  Meaning of Marketing
 Importance of
Marketing
 Core Marketing
Concepts