Basics of Marketing- Definition, Importance

1. (Assistant Professor)

2. • Selling?
• Advertising?
• Promotions?
• Making products available in stores?
• Maintaining inventories?
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3. •Marketing is the process of planning and executing the
conception, pricing, promotion, and distribution of ideas,
goods, services to create exchanges that satisfy
individual and organizational goals
• American Marketing Association
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4. •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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Industry
(a collection
of sellers)
Market
(a collection
of Buyers)
Goods/services
Money
Communication
Information

6.  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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Marketing
Mix
Product
Price Promotion
Place
Customer
Solution
Customer
Cost
Communication
Convenience

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Difference Between - Sales & Marketing ?
Sales
trying to get the customer to want what the
company produces
Marketing
trying to get the company produce what the
customer wants

9.  Goods
 Services
 Events
 Experiences
 Personalities
 Place
 Organizations
 Properties
 Information
 Ideas and concepts
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10. • Based on :
 Needs, Wants, Desires / demand
 Products, Utility, Value & Satisfaction
 Exchange, Transactions & Relationships
 Markets, Marketing & Marketers.
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Needs, wants
demands
Markets Marketing &
Marketers
Utility, Value &
Satisfaction
Xchange, Transaction
Relationships
Products

12.  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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Customers
CompetitionCompany

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Anyone who is in the market looking at a product /
service for attention, acquisition, use or consumption
that satisfies a want or a need
CUSTOMER IS . . . . .

15. • 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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16. • 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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17. • 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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18. •Value = Benefit / Cost
•Benefit = Functional Benefit + Emotional
Benefit
•Cost = Monetary Cost + Time Cost +
Energy Cost + Psychic Cost
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Strategic Marketing
Strategic marketing management is concerned with
how we will create value for the customer
Asks two main questions
 What is the organization’s main activity at a
particular time? – Customer Value
 What are its primary goals and how will these be
achieved? – how will this value be delivered

20. • Strategic Planning is the managerial process of
creating and maintaining a fit between the
organization’s objectives and resources and the
evolving market opportunities.
 Also called Strategic Management Process
 All organizations have this
 Can be Formal or Informal
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The Strategic-Planning, Implementation,
and Control Process

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External environment
(Opportunity &
Threat analysis)
Internal Environment
(Strength/ Weakness analysis)
Goal FormulationBusiness Mission

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Environmental Analysis
Internal AnalysisCompetitor
Customer
Supplier
Regulatory
Social/ Political
Technology Know-How
Manufacturing Know-How
Marketing Know-How
Distribution Know-How
Logistics
Strength & Weaknesses
Identity Core Competencies
Opportunities & Threats
Identify opportunity
Fit internal Competencies with external opportunities
Firm Strategies

24. • A written document that acts as a guidebook of
marketing activities for the marketing manager
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CONTENTS of MARKETING PLAN
Business Mission Statement
Objectives
Situation Analysis (SWOT)
Marketing Strategy
 Target Market Strategy
 Marketing Mix
 Positioning
 Product
 Promotion
 Price
 Place – Distribution
 People
 Process
Implementation, Evaluation and Control

26. • Technology ?
• Government policy ?
• Other media substitutes ?
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27.  HMT vs. Titan
 HLL vs. Nirma
 Bajaj vs. Honda
 Dot.com boom, then bust and now resurgence
 Market leadership today cannot be taken for
granted.New and more efficient companies are able
to upstage leaders in a much shorter period.
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Factors
Influencing
Company’s
Marketing
Strategy

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Demographics
Social
Change
Economic
Conditions
Political &
Legal Factors
Technology
Competition
Environmental
Scanning
Target Market
Product
Distribution
Promotion
Price
External Environment
is not controllable Ever-Changing
Marketplace
External Marketing Environment
Physical / Natural

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The macro-environment
is the assessment of the external forces that act upon the
firm and its customers, that create threats & opportunities

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