Marketing Notes By Saurav

1. Marketing
Basics of Marketing -106

2. Learning Objectives
1.Introduction
2.Definition Of Marketing
3.Core Marketing Concepts
4.Marketing orientation/ approaches
5. Marketing Myopia
6.Functions of Marketing
7. Tangibility Spectrum/ Goods services
Continuum.
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3. What is Marketing…??
Selling?
Advertising?
Promotions?
Making products available in stores?
Maintaining inventories?
All of the above, plus much more!
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4. Marketing = ?
Marketing is an organizational function and a set of
processes for creating, communicating and delivering
value to customer and for managing value to customer
and for managing customer relationships in ways that
benefit the organization and its stake holders.
American Marketing Association
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5. 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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6. Marketing=?
Marketing is about identifying and meeting human
and social needs.
One of the shortest good definition of marketing is
“Meeting needs profitably”.
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7. Simple Marketing System
Communication
Goods/services
Industry Market
(a collection (a collection
of sellers) of Buyers)
Money
Information 7

8. 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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9. The 4 Ps & 4Cs
Marketing Convenience
Mix
Place
Product
Customer
Solution Price Promotion
Customer Communication
Cost
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10. Marketing Mix
Promotion Place
Product Price
2. Product variety
3. Quality
4. Design 1. List price 2. Channels
5. Features 1. Sales promotion
2. Discounts 3. Coverage
6. Brand name 2. Advertising
3. Allowances 4. Assortments
7. Packaging 3. Sales force
4. Payment period 5. Locations
8. Sizes 4. Public relations
5. Credit terms 6. Inventory
9. Services 5. Direct marketing
7. Transport
10. Warranties
11. Returns
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11. The Marketing Mix
The conventional view of the marketing mix consisted of
four components (4 Ps): Product, Price, Place/
distribution and Promotion.
Generally acknowledged that this is too narrow today;
now includes , Processes,]People [employees &
Customers], Physical evidence
Marketers today are focused on virtually all aspects of
the firm’s operations that have the potential to affect
the relationship with customers.
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12. Scope – What do we market
 Goods
 Services
 Events
 Experiences
 Personalities
 Place
 Organizations
 Properties
 Information
 Ideas and concepts
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13. Core Concepts of Marketing
Based on :
 Needs, Wants, Desires / demand
 Products, Utility, Value & Satisfaction
 Exchange, Transactions & Relationships
 Markets, Marketing & Marketers.
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14. Core Concepts of Marketing
Needs, wants Utility, Value &
Products
demands Satisfaction
Marketing & Exchange, Transaction
Markets
Marketers Relationships
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15. Core Concepts of Marketing
 Need – food ( is a must )
 Want – Pizza, Burger, French fry's ( translation of a need
as per our experience )
 Demand – Burger ( translation of a want as per our
willingness and ability to buy )
 Desire – Have a Burger in a five star hotel
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16. Needs, wants and Demands
1.Needs- are basic human requirements. For ex-
Food, Security, Clothing, and Survival.
2.Wants- are needs directed to a product.
3.Demand- is want accompanied by buyer’s ability
to pay.
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17. Utility
Marketers can provide four types of utility to their
target customers.
1.Form Utility- For Ex. Design concept and fabric
into wide range of clothing
2. Time Utility- For ex. ATM, Amazon.com, Dell
etc.
3.Place Utility-For ex. Domino Piza delivered at
door step of Customer.
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18. Utility Continued………….
4. Possession Utility- For ex customer who has
purchased car may use it for whatever purpose he
desires.
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19. Offerings and Brands
Companies address needs by putting forth a value
proposition, a set of benefits that they offer to
customers to satisfy their needs. The Intangible
value proposition is made physical by an
offering, which can be a combination of
products, services, Information, and experience.
A brand is an offering from a known source.
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20. Value and Satisfaction
Value is central marketing concept.
Value - the value or benefits the customers gain from using
the product versus the cost of obtaining the product.
Satisfaction - Based on a comparison of performance and
expectations.
 Performance > Expectations => Satisfaction
 Performance < Expectations => Dissatisfaction
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21. Customer looks Value
Value = Benefit / Cost
Benefit = Functional Benefit + Emotional
Benefit
Cost = Monetary Cost + Time Cost
+ Energy Cost + Psychic Cost
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22. Concept Of Exchange
An exchange arises when one person gives
something of value ,in return for something of
value from another person.
The Conditions necessary for an exchange to take
place are
3. At least, two parties must be involved.
4. Each party must have something that interest the
other.
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23. Exchange continued…………….
3.The parties must involve themselves voluntarily
and each party must consider the other desirable
or at least acceptable to deal with.
4.Each party must be in a position to communicate
and deliver the product
5. Each party must be free to accept or reject any
offer from the other party.
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24. Market
Market is a set of existing and potential buyers for
a defined product or service.
Market Place- is the place where one goes for
Shopping and market space is digital as when
shop on the internet.
Meta Market- the convergence of Suppliers of all
complementary products and Services that are
closely related to product in consumer markets.
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25. Types of Markets
1. Consumer Market
2. Business Market/ Industrial Market
3. Global Market
4. Non Profit and Govt. Market
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26. Approaches/ orientations to
Marketing
1. The Production Concept
2. The Product Concept
3. The Selling Concept
4. The Marketing Concept
5. The Holistic Marketing Concept
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27. 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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28. Product Concept
The Product concept Proposes that consumers
favor products that offer the most quality,
performances, or innovative features. Managers in
these organizations focus on making superior
products and improving them over time.
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29. The selling Concept
The selling concept holds that consumers and
businesses if left alone, won’t buy enough of the
organization’s products. The organization must,
therefore, undertake an aggressive selling and
promotion effort.
The selling concept is practiced most aggressively
with unsought goods such as Insurance,
encyclopedias and cemetery pots.
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30. Marketing Concept
The Marketing Concept emerged in the mid -1950s.
Instead of product – centered ,Make and sell
philosophy business shifted to sense and
respond.
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31. 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 is thus an approach that
attempts to recognize and reconcile the scope and
complexities of marketing activities.
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32. Over View Of Holistic Marketing
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33. Relationship Marketing
Marketing is to establish, maintain and
enhance relationship with customer and other
partners at profit, so that the objective of the
parties involved are met. This is achieved by
mutual exchange and fulfillment of
promises.
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34. Why is it important?
• 5 times costlier than old one
• 5% improvement in customer retention= 25
to 85% increase in profit
• deliver additional products and services to an
existing customer
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35. Basis of building relationship
• Mutual benefits
• Mutual commitment
• Trust
• Connective links
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36. The Firm’s Potential
Marketing Relationships
Supplier Partnerships
Goods Services
Suppliers Suppliers
Lateral
Partnerships
Business Competitors
Units
Employees Focal Nonprofit
Organizations
Firm
Functional
Departments Government
Internal
Partnerships Intermediate Ultimate
Customers Customers
Buyer Partnerships
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37. Marketing Myopia
Theodore Levit in his classical article “ Marketing
Myopia” in the Harvard Business Review argues
that industries fail not because markets are
saturated but because of the failure and short-
sightedness of the Management.
Marketing Myopia occurs when a marketer is
excessively preoccupied with product
development, manufacturing or selling & ignores
customer needs , wants and Interests.
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38. Marketing Myopia
Continued……….
For example- Radio and Pager.
Ways to overcome Marketing Myopia
1.Be Customer Oriented, not product oriented
2. Market orientation should permeate throughout
the organization.
3. Managers need to be proactive and Visionary.
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39. Difference between Selling and Marketing
Selling Marketing
1.Emphasis on Product. 1. Emphasis on consumer
2.Company manufactures the needs and wants.
product first and then decide 2. Company first determines
to sell it. consumer needs and wants
3.Management is sales volume and then decides on how to
oriented. deliver a product to satisfy
these wants.
3. Management is profit
oriented
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40. Difference between Selling and Marketing
Selling Marketing
4.Views business as a goods 4. Views business as consumer
producing process. satisfying process.
5.Cost determines price. 5.Consumer determine price,
6. Customers as the last link in price determines cost.
business. 6. Customer as the Very
beginning of a business.
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41. Functions Of Marketing
Marketing as a managerial activity involves
analyzing the marketing opportunities, planning
the marketing activities, implementing marketing
plans and setting control mechanism in such a
way that organizational objectives are
accomplished at minimum cost.
2. Understanding Consumer needs.
3. Environmental Scanning and Marketing
Opportunity analysis.
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42. Functions of Marketing
Continued….
3.Development of Marketing Plan and Strategy
4.Implementation Of Marketing Plan
5. Development of Control Mechanisms.
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43. 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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44. 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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45. 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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46. Product
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47. Product is . . . . .
Anything that is offered to the market for
attention, acquisition, use or consumption that
satisfies a want or a need
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48. Types of Products
PRODUCTS
Consumer Industrial
Services
Products Products
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49. Product Items, Lines, and Mixes
A specific version of a product
that can be designated as a
Product Item
distinct offering among an
organization’s products.
A group of closely-related
Product Line
product items.
All products that an
Product Mix
organization sells.
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50. Product Mix
Width – how many product lines a company has
Length – how many products are there in a product line
Depth – how many variants of each product exist within a
product line
Consistency – how closely related the product lines are in
end use
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51. Gillette’s Product Lines & Mix
Width of the product mix
Depth of the product lines
Blades and Writing
razors Toiletries instruments Lighters
Fusion – 5 blade
Mach 3 Turbo
Mach 3 Series Paper Mate Cricket
Sensor Adorn Flair S.T. Dupont
Trac II Toni S.T. Dupont
Atra Right Guard
Swivel Silkience
Double-Edge Soft and Dri
Lady Gillette Foamy
Super Speed Dry Look
Twin Injector Dry Idea
Techmatic Brush Plus
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52. What is a Service? Defining
the Essence
An act or performance offered by one party to another
(performances are intangible, but may involve use of
physical products)
An economic activity that does not result in ownership
A process that creates benefits by facilitating a desired
change in customers themselves, or their physical
possessions, or intangible assets
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53. Some Industries - Service Sector
Banking, stock broking Health care
Lodging Education
Restaurants, bars, Wholesaling and retailing
catering Laundries, dry-cleaning
Insurance Repair and maintenance
News and entertainment Professional (e.g., law,
architecture, consulting)
Transportation (freight and
passenger)
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54. Goods services continuum
Pure Intangible
Banking
Service
Good Transportation
Major Service with
Minor Product
Business Hotels
Product = Service
Computers
Major Product with
Minor Services
Materials / Components
Pure Tangible Product
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55. Major Characteristic of Services
 Intangibility – Services are intangibility cannot be seen,
tasted, felt, heard or smelled before purchase.
 Inseparability - Services are produced and consumed
simultaneously.
 Variability or Heterogeneity – Services are highly variable
 Perishability – Services cannot be stored.
 Non Ownership - Services are rendered but there is no
transfer of title
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56. Books Recommended
1. Principles Of Marketing- Philip Kotler and Gary
Armstrong
2. Marketing Management- Rajan saxena
3. Marketing Management- V.S. Ramaswamy and
S. Namakumari
4. Marketing Management- ICFAI University
5. Marketing Management- Dr. K. Karunakaran
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