An Introduction into Marketing,Marketing Management

1. Module 1:
An Introduction
to Marketing

2. TABLEOFCONTENT
Defining Marketing,
Core concepts of Marketing,
Scope of Marketing,
Company Orientation towards the Marketplace,
Marketing Management Tasks,
The New Marketing Realities

3. Marketing Management
3
Marketing deals with identifying and meeting human
and social needs. One of the shortest definitions of
marketing is ―meeting needs profitably‖.
The objective of all business enterprises is to satisfy
the needs and wants of the society. Marketing is,
therefore, a basic function of all business firms. When
a salesperson sells washing machines, a doctor treats
a patient or a Government asks people to take their
children for getting polio drops, each is marketing
something to the targets.

4. Traditionally, small firm owners did not give as
much importance to marketing as to other functions
such as accountancy, production and selling.
Training programmes, enterprise development and
the current thrust for competitiveness have now
given high priority to promoting marketing
awareness among small business owners, and
marketing is now assuming its rightful place along
with other business functions.
Marketing Management

5. Since early 1990s there has been a change in the
thinking of businessman from product orientation to
consumer orientation.
Modern business concerns lay emphasis on ‗selling
satisfaction‘ and not merely on selling products. The
activities have to be coordinated so as to develop the
marketing mix, which provides maximum satisfaction to
the customers.
That is why marketing research and product planning
occupy an important role in marketing. The other
important functions of marketing include: buying and
assembling, selling, standardization, packing, storing,
transportation, promotion, pricing and risk bearing.
Thus, the scope of marketing is very wide and no more
restricted to merely selling of products.
Marketing Management

6. Meaning and Definition of Marketing
The concept of marketing can be viewed from social and
managerial perspectives. So Marketing is a social and
managerial process by which individuals and groups
obtain what they need and want through creating and
exchanging products and value with others.
At its simplest, marketing can be defined as exchange
transactions that take place between the buyer and the
seller. Marketing is the management function, which
organizes and directs all those business activities
involved in assessing and converting customer
purchasing power into effective demand.

7. Meaning and Definition of Marketing
The American Marketing Association offers the following
formal definition:
Marketing is an organizational function and a set of
processes for creating, communicating and delivering value
to customers and for managing customer relationships in
ways that benefit the organization and its stake holders.
Philip Kotler defines marketing as ―
a social 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

8. Meaning and Definition of Marketing
In essence, the marketing concept is customer orientation
aimed at generating customer-satisfaction through
integrated marketing.
Marketing may be narrowly defined as a process by which
goods and services are exchanged and the values
determined in terms of money prices.
That means marketing includes all those activities carried
on to transfer the goods from the manufacturers or
producers to the consumers.

9. Marketing is more than a mere physical process of
distributing goods and services. It is the process of
discovering and translating consumer wants into
products and services.
It begins with the customer (by finding their needs) and
ends with the customer (by satisfying their needs).
Meaning and Definition of Marketing

10. The components of marketing concept are as under:
a. Satisfaction of Customers: In the modern era, the customer
is the focus of the organization. The organization should aim at
producing those goods and services, which will lead to
satisfaction of customers.
b. Integrated marketing: The functions of production,
finance and marketing should be integrated to satisfy the needs
and expectations of customers.
c. Profitable sales volume: Marketing is successful only when
it is capable of maximizing profitable sales and achieves long-
run customer satisfaction.
Meaning and Definition of Marketing

11. So, ―Marketing is the performance of business
activities that directs the flow of goods and
services from producer to consumer or user.‖ This
definition is undoubtedly an improvement on
describing marketing as selling as it shows that
marketing does encompass other activities besides
selling.
Meaning and Definition of Marketing

12. THE VALUE OFMARKETING

13. THE VALUE OFMARKETING
• Marketing ability helps to
• create sufficient demand for products
and services, which is essential for a
firm’s financial success,
• create jobs and
• provide resources for firms to engage is
socially responsible activities.
• build strong brands and a loyal
customer base, intangible assets that
contribute heavily to the value of a
firm
Jobs
Profits Giving

14. THE VALUE OFMARKETING
Marketing DecisionMaking
• Marketers helps make major
business decision
• Marketers must make decision on
features, prices, and markets and
decide how much to spend on
advertising, sales, and online and
mobile marketing in an
environment where consumers,
competition, technology, and
economic forces change rapidly
and consequences quickly
multiply.
Major
Business
Decision
Target
Market
Product
Features
Product
Prices
Product
Promotion
Product
Distribution

15. THE VALUE OFMARKETING
Marketing DecisionMaking
• Marketers that fail to carefully
monitor their customers and
competitors, continuously
improve their value offerings and
marketing strategies, or satisfy
their employees, stockholders,
suppliers, and channel partners
in the process are more
vulnerable to competitive entry.
Wrong
Marketing
Decision
Vulnerable
to
competitive
entry

16. THE VALUE OFMARKETING
Marketing DecisionMaking
• Marketers helps
organization adapt and
thrive in the changing
environment
• Marketers adapt, for
example, including the use
of web-only and social
media campaigns in their
marketing mixes, to thrive
in the changing
environment.
Good
Marketers
Help
organization
thrive in the
changing
environment

17. THE VALUEOFMARKETING
VideoTime– “MarketingisaboutValue”
He's Steve Jobs and
here's his #9 rule for
success - Marketing is
about Values.
https://www.youtube.com/watch?v=OcFnKdAu21o

18. THE SCOPE OFMARKETING

19. THE SCOPE OFMARKETING
What isMarketing
• Marketing is about
identifying and meeting
human and social needs
• “Meeting needs
profitably.”
American Marketing
Association definition:
Marketing is the activity,
set of institutions, and
processes for creating,
communicating,
delivering, and
exchanging offerings that
have value for customers,
clients, partners, and
society at large.

20. THE SCOPE OFMARKETING
What isMarketing Management?
Marketing
Management is the
art and science
• 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
Choosing Target
Market
Creating Value
Delivering
Value
Communicating
Value

21. THE SCOPE OFMARKETING
What isMarketing Management?
• Social definition of
marketing: Marketing is 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

22. THE SCOPE OFMARKETING
What isMarketing Management?
• Selling is not the most important part of marketing; aim of marketing is to
know and understand the customer so well that the product or service fits
him and sells itself.
Selling is not the
most important part
of marketing
Marketing it to know
and understand the
customers to give
what they want

23. THE SCOPE OFMARKETING
What isMarketed?
Goods: physical goods include food products, cars, refrigerators, televisions,
machines, and other mainstays of a modern economy.
Services: represent approximately 2/3 of the U.S. economy, including
airlines, hotels, maintenance and repair people, and accountants, bankers,
doctors, and management consultants.
Events: include time-based events, global and local events
Experiences: marketers orchestrate several services and goods to create,
stage, and market experiences.
Persons: include artists, musicians, CEOs, physicians, high-profile lawyers
and financiers, and other professionals often get help from marketers, and
each person has been advised to become a “brand.”

24. THE SCOPE OFMARKETING
What isMarketed?
Places: include economic development specialists, real estate agents,
commercial banks, local business associations, and advertising and public
relations agencies.
Properties: intangible rights of ownership to either real property (real
estate) or financial property (stocks and bonds).
Organizations: include museums, performing arts organizations,
corporations, and nonprofits that use marketing to boost their public
images and compete for audiences and funds.
Information: what books, schools, and universities produce, market, and
distribute at a price to parents, students, and communities.
Ideas: every market offering includes a basic idea. Products and services
are platforms for delivering some idea or benefit.

25. THE SCOPE OFMARKETING
Who Markets?
• A marketer is someone who seeks a response—attention, a
purchase, a vote, a donation—from another party, called the
prospect.
A
marketer
The
prospect
A marketer seeks
respond such
attention, a
purchase, a vote,
a donation from
the prospect

26. THE SCOPE OFMARKETING
Who Markets?
Marketer Prospect
Attention
Purchase
Donation
Vote
Response

27. THE SCOPE OFMARKETING
Who Markets?
• Marketers are skilled
at stimulating demand
for their products, but
they also seek to
influence the level,
timing, and
composition of
demand to meet the
organization’s
objectives.
• Eight demand states
are possible:
Negative demand—Consumers dislike the product and
may even payto avoid it.
Nonexistent demand—Consumers may be unaware of or
uninterested in the product.
Latent demand—Consumers may share a strong need
that cannot be satisfied by an existing product.
Declining demand—Consumers begin to buy the product
less frequently or not at all.
Irregular demand—Consumer purchases vary on a
seasonal, monthly, weekly, daily, or even hourly basis.
Full demand—Consumers are adequately buying all
products put into the marketplace.
Overfull demand—More consumers would like to buy
the product than can be satisfied.
Unwholesome demand—Consumers may be attracted to
products that have

28. THE SCOPE OFMARKETING
Who Markets?
• A market is a collection of buyers and sellers who transact
over a particular product or product class (such as the housing
market or the grain market).

29. THE SCOPE OFMARKETING
Who Markets?
Key customer markets include:
• Consumer Markets
typically establish a strong
brand image by developing
a superior product or
service, ensuring its
availability, and
Nonprofit
backing it with engaging
communications and reliable
performance.
• Business Markets typically
have a strong emphasis on
the sales force, the price, and
the seller’s reputation.
Key
Customer
Markets
Consumer
Markets
Business
Markets
Global
Markets
and
Governmental
Markets

30. THE SCOPE OFMARKETING
Who Markets?
Key customer markets include:
• Global Markets require
companies to navigate
cultural, language, legal, and
political differences as they
make marketing decisions.
Nonprofit
• Nonprofit and
Governmental Markets
include churches,
universities, charitable
organizations, and
government agencies.
Key
Customer
Markets
Consumer
Markets
Business
Markets
Global
Markets
Non Profit
and
Government
al Markets

31. CORE MARKETING
CONCEPTS

32. CORE MARKETING CONCEPTS
Needs, Wants, and Demands
• Marketers do not
create needs
• Needs pre-exist
marketers.
Needs = basic human
requirements
Wants = when needs are
directed to specific objects
that might satisfy the need
Demands = wants for
specific products backed
by an ability to pay

33. CORE MARKETING CONCEPTS
Needs, Wants, and Demands
• Five types of needs:
• Stated needs
• Real needs
• Unstated needs
• Delight needs
• Secret needs
Five
types of
needs
Stated
needs
Real
needs
Unstated
needs
Deligh
t
needs
Secret
needs

34. CORE MARKETING CONCEPTS
Target Markets, Positioning and Segmentation
• For each target
market, the firm
develops a market
offering that it
positions in target
buyers’ minds as
delivering some key
benefit(s).
Segmentation: identification
of distinct segments of
buyers by identifying
demographic, psychographic,
and behavioral differences
between them.
Target markets:the
segment(s) present the
greatest opportunities.

35. CORE MARKETING CONCEPTS
Offerings and Brands
A value proposition is a set of benefits that satisfy a
consumer’s needs.
The intangible value proposition is made physical by
an offering, which can be a combination of products,
services, information, and experiences.
A brand is an offering from a known source. All
companies strive to build a brand image with as many
strong, favorable, and unique brand associations as
possible.

36. CORE MARKETING CONCEPTS
Marketing Channels
Communication channels deliver and
receive messages from target buyers
Distribution channels help display, sell, or
deliver the physical product or service(s) to the
buyer or user
Service channels include warehouses,
transportation companies, banks, and
insurance companies

37. CORE MARKETINGCONCEPTS
Impressions andEngagement
Impressions occur
when consumers view
a communication
Engagement is the
extent of a customer’s
attention and active
involvement with a
communication
• Marketers now think
of three “screens” or
means to reach
consumers: TV,
Internet, and mobile.

38. CORE MARKETING CONCEPTS
Value and Satisfaction
Value is primarily a combination of quality,
service, and price, called the customer value
triad. Value perceptions increase with
quality and service but decrease with price.
Satisfaction reflects a person’s judgment of
a product’s perceived performance in
relationship to expectations.

39. CORE MARKETINGCONCEPTS
• Each company in the
chain captures only a
certain percentage of the
total value generated by
the supply chain’s value
delivery system. When a
company acquires
competitors or expands
upstream or downstream,
its aim is to capture a
higher percentage of
supply chain value.
SupplyChain
The supply chain
is a channel
stretching from
raw materials to
components to
finished products
carried to final
buyers.

40. CORE MARKETINGCONCEPTS
Competition
includes all the actual
and potential rival
offerings and substitutes
a buyer might consider.

41. CORE MARKETINGCONCEPTS
MarketingEnvironment
Task environment includes the actors engaged in
producing, distributing, and promoting the
offering.
Broad environment consists of six components:
demographic environment, economic environment,
social-cultural environment, natural environment,
technological environment, and political-legal
environment

42. THE NEW MARKETING
REALITIES

43. THE NEW MARKETINGREALITIES
Technology
• Widespread
technology
adoption has
created:
new opportunities
promotes shared
information
customer relationship
management

44. THE NEW MARKETINGREALITIES
Globalization
• Transportation, shipping, and communication
technologies have made it easier for us to
know the rest of the world, to travel, to buy
and sell anywhere.
• Globalization has made countries increasingly
multicultural.
• Globalization changes innovation and product
development as companies take ideas and
lessons from one country and apply them to
another.

45. THE NEW MARKETING
REALITIES
New Company
Capabilities
Major Societal
Forces
Information
Technology
Globalization
Increased
Competition
Consumer
Information
Communicate
w/Customer
Collect
Information
New
Opportunities

46. THE NEW MARKETINGREALITIES
VideoTime– “TheGigEconomy”
• With the push of a
button, apps let us
summon services, from
taxis to takeaways, to
our location. But do
they make the world
more efficient? In an
FT investigation,
Izabella Kaminska
reveals how the gig
economy is being
powered by poor
working conditions

47. SOCIALRESPONSIBILITY

48. SOCIALRESPONSIBILITY
PrivateSector
• The private sector is taking some
responsibility for improving living
conditions, and firms all over the world
have elevated the role of corporate social
responsibility.

49. SOCIALRESPONSIBILITY
Marketing3.0
• Marketing 3.0
suggests three
central trends that
change the way
companies do
business:
increased consumer
participation and
collaborative marketing
globalization
the rise of a creative
society

50. SOCIALRESPONSIBILITY
PreservingLongTermWellBeing
• The organization’s
task is to determine
the needs, wants, and
interests of target
markets and satisfy
them more effectively
and efficiently than
competitors while
preserving or
enhancing consumers’
and society’s long-
term well-being.
Effective
Marketing
Strategy
While being
Socially
Responsible

51. SOCIALRESPONSIBILITY
Benefits
• Companies may
incorporate social
responsibility as a
way:
Todifferentiate
themselves from
competitors,
Tobuild consumer
preference
Toachieve notable
sales and profit gains.

52. A DRAMATICALLYCHANGED
MARKETPLACE

53. A DRAMATICALLYCHANGEDMARKETPLACE
New ConsumerCapabilities
Consumers are empowered through technology, like social media,
and by expanded information, communication and mobility.
Consumers can use the Internet as a powerful information and
purchasing aid.
Consumers can search, communicate, and purchase on the move.
Consumers can tap into social media to share opinions and express
loyalty.
Consumers can actively interact with companies.
Consumers can reject marketing they find inappropriate.

54. A DRAMATICALLYCHANGEDMARKETPLACE
New CompaniesCapabilities
Companies can use the Internet as a powerful information and sales
channel, including for individually differentiated goods.
Companies can collect fuller and richer information about markets,
customers, prospects, and competitors.
Companies can reach customers quickly and efficiently via social media
and mobile marketing, sending targeted ads, coupons, and information.
Companies can improve purchasing, recruiting, training, and internal
and external communications.
Companies can improve cost efficiency.

55. A DRAMATICALLYCHANGEDMARKETPLACE
ChangingChannels
• Retail transformation: increased
competition from a variety of formats has
yielded more entertaining retail
experiences.
• Disintermediation: delivery of products
and services by intervening in the
traditional flow of goods.

56. A DRAMATICALLYCHANGEDMARKETPLACE
HeightenedCompetition
• Private labels: Powerful retailers market
their own store brands, increasingly
indistinguishable from any other type of
brand.
• Mega-brands: Many strong brands have
become mega-brands and extended into
related product categories, including new
opportunities at the intersection of two or
more industries.

57. A DRAMATICALLYCHANGEDMARKETPLACE
HeightenedCompetition
• Deregulation: Many countries have
deregulated industries to create greater
competition and growth opportunities. In the
United States, laws restricting financial
services, telecommunications, and electric
utilities have all been loosened in the spirit of
greater competition.
• Privatization: Many countries have
converted public companies to private
ownership and management to increase their
efficiency.

58. A DRAMATICALLYCHANGEDMARKETPLACE
MarketingBalance
• Companies must always move forward (incorporate the Internet and
digital efforts into marketing plans), innovating products and
services, staying in touch with customer needs, and seeking new
advantages rather than relying on past strengths.
Move forward, innovating
products and services, staying
in touch with customer needs
and seeking new opportunity
Past successes and
strengths

59. A DRAMATICALLYCHANGEDMARKETPLACE
MarketingAccountability
• Marketers are increasingly asked to justify
their investments in financial and
profitability terms, as well as in terms of
building the brand and growing the
customer base.

60. A DRAMATICALLYCHANGEDMARKETPLACE
Marketing in theOrganization
• Every employee has
an impact on the
customer, so
marketers now must
properly manage all
possible touch points:
• store layouts
• package designs
• product functions
• employee training
• shipping and
logistics
Store Layouts
Package
Designs
Product
Functions
Employee
Training
Shipping
And
Logistics

61. A DRAMATICALLYCHANGEDMARKETPLACE
VideoTime–“Retail'sFuture:Brick-and-Mortarvs.E-Commerce”
Joe Gromek, former
chairman at Tumi and
former chief executive
officer at Warnaco,
discusses the retail shift to
online shopping.

62. COMPANY ORIENTATION TOWARD
THE MARKETPLACE

63. COMPANYORIENTATIONTOWARDTHEMARKETPLACE
• Company
orientation
• Production
• Product
• Selling
• Marketing Company
Orientation
Production
Product Selling
Marketing

64. COMPANYORIENTATIONTOWARDTHEMARKETPLACE
The ProductionConcept
• Suggests
consumers prefer
products that are
widely available
and inexpensive.
Company
Orientation
Production
Product Selling
Marketing

65. COMPANYORIENTATIONTOWARDTHEMARKETPLACE
The ProductionConcept
• With production
concept,
management aims
for
• high production
efficiency
• low costs
• mass distribution
Management
aims for
High
Production
Efficiency
LowCosts
Mass
Distribution

66. COMPANYORIENTATIONTOWARDTHEMARKETPLACE
The ProductConcept
• Consumers favor
products offering
the most quality,
performance, or
innovative
features Company
Orientation
Production
Product Selling
Marketing

67. COMPANYORIENTATIONTOWARDTHEMARKETPLACE
The ProductConcept
• Managers may
commit the
“better-
mousetrap”
fallacy, believing a
better product
will by itself lead
people to beat a
path to their door.
Better
product
Better
sales

68. COMPANYORIENTATIONTOWARDTHEMARKETPLACE
The SellingConcept
• Consumers and
businesses, if left
alone, won’t buy
enough of the
organization’s
products Company
Orientation
Production
Product Selling
Marketing

69. COMPANYORIENTATIONTOWARDTHEMARKETPLACE
The SellingConcept
• It is practiced most aggressively with
unsought goods—goods buyers don’t
normally think of buying such as insurance
and cemetery plots—and when firms with
overcapacity aim to sell what they make,
rather than make what the market wants.

70. COMPANYORIENTATIONTOWARDTHEMARKETPLACE
The MarketingConcept
• Find the right
products for your
customers
Company
Orientation
Production
Product Selling
Marketing

71. COMPANYORIENTATIONTOWARDTHEMARKETPLACE
The MarketingConcept
• The marketing concept holds that the key
to achieving organizational goals is being
more effective than competitors in
creating, delivering, and communicating
superior customer value to your target
markets.

72. COMPANYORIENTATIONTOWARDTHEMARKETPLACE
TheHolisticMarketingConcept
• Based on the development, design, and
implementation of marketing programs,
processes, and activities that recognize
their breadth and interdependencies.

73. COMPANYORIENTATIONTOWARDTHEMARKETPLACE
TheHolisticMarketingConcept
• Everything matters in marketing—and that a broad, integrated perspective
is often necessary. Below is a schematic overview of four broad
components characterizing holistic marketing: relationship marketing,
integrated marketing, internal marketing, and performance marketing.

74. COMPANYORIENTATIONTOWARDTHEMARKETPLACE
RelationshipMarketing
• Aims to build
mutually
satisfying long-
term relationships
with key
constituents in
order to earn and
retain their
business.
• Four key
constituents for
relationship
marketing are:
Customers
Employees
Marketing
Partners
(Channels,
Suppliers,
Distributors,
Dealers,
Agencies)
Four Key
Constituents
For
Relationship
Marketing
Members Of
The Financial
Community
(Shareholders,
Investors,
Analysts)

75. COMPANYORIENTATIONTOWARDTHEMARKETPLACE
RelationshipMarketing
• Marketers must create prosperity among all these
constituents and balance the returns to all key
stakeholders.
• Todevelop strong relationships with them requires
understanding their capabilities and resources, needs,
goals, and desires.

76. COMPANYORIENTATIONTOWARDTHEMARKETPLACE
IntegratedMarketing
•What is Integrated Marketing
• Devise marketing activities and programs that
create, communicate, and deliver value such
that “the whole is greater than the sum of its
parts.”

77. COMPANYORIENTATIONTOWARDTHEMARKETPLACE
IntegratedMarketing
• Two key themes of integrated
marketing are that
• many different marketing
activities can create,
communicate, and deliver value
and
• marketers should design and
implement any one marketing
activity with all other activities in
mind. Key Themes
There aremany
marketing
activities
Each activity is
integratedwith
each other

78. COMPANYORIENTATIONTOWARDTHEMARKETPLACE
InternalMarketing
• What is Internal Marketing?
• The task of hiring, training, and motivating able
employees who want to serve customers well.

79. COMPANYORIENTATIONTOWARDTHEMARKETPLACE
InternalMarketing
• Marketing succeeds only
when all departments work
together to achieve customer
goals
• When engineering designs the
right products
• When finance furnishes the
right amount of funding
• When purchasing buys the
right materials
• When production makes the
right products in the right
time horizon
• When accounting measures
profitability in the right way
Internal
Marketing
Hiring Staff
Training
Staff
Motivating
Staff

80. COMPANYORIENTATIONTOWARDTHEMARKETPLACE
PerformanceMarketing
• What is Performance Marketing?
• Requires understanding the financial and nonfinancial returns to
business and society from marketing activities and programs.

81. COMPANYORIENTATIONTOWARDTHEMARKETPLACE
PerformanceMarketing
• Top marketers are
increasingly going beyond
sales revenue to examine
the marketing scorecard
and interpret what is
happening to market share,
customer loss rate,
customer satisfaction,
product quality, and other
measures.
• They are also considering
the legal, ethical, social,
and environmental effects
of marketing activities and
programs
Marketing
Scorecard
Financial
Accountability
Environmental
Impact
Social Impact
Legal Impact
EthicalImpact

82. COMPANYORIENTATIONTOWARDTHEMARKETPLACE
VideoTime–“RelationshipMarketing”
Today’s customer is skeptical, connected
and well informed. Mass marketing as
we know it is gone for good. Brands
need to stop talking at their customers
and start seeing the world through their
eyes. Using AI, technology and customer
data, they need to truly know their
customers, build trust and emotional
connections, and create customer
relationships that last.
• MARK MORIN
• As a customer relationship builder,
Mark has devoted the past 35+ years
to bringing brands and people closer.
He is an author, trainer, professional
speaker and an expert in the field of
relationship and cognitive marketing.