This document provides definitions and explanations of key marketing concepts: 1. Marketing is meeting human and social needs profitably through identifying needs, developing products and services, and communicating value to customers. 2. Targeting specific market segments and positioning offerings to deliver key benefits is important for success. 3. Marketing involves developing brands and offerings, delivering value and satisfaction, and using channels to reach customers and complete transactions. 4. Marketers must consider their competitive environment and how societal and technological changes are creating new consumer and business capabilities.

1. Example :-
1. Café Coffee Day
2. Kaun Banega Karorpati (Star Plus) Vs Sawal Dus Karor Ka (Zee TV) Vs
Chappad Phad Ke (Sony TV)
• Good Marketing is no accident, but a result of Careful Planning &
Execution. It is both Art & Science. – there is constant tension between its
formulated side and creative side.
• Importance :- Financial success often depends upon marketing ability.
Other business functions will not really matter if there isn’t sufficient
demand for product & services. Hence now marketing has been given equal
wait age.
Example:- Xerox
Nirma Washing Powder.
The Scope of Marketing :- Marketing is about identifying and meeting human
and social needs. Shortest definition of marketing can be “ Meeting Needs
Profitably.
Example :- eBay – Online auction clearing house.

2. Formal Definition of Marketing:- Marketing is an organizational function
and a set of processes for creating, communicating and delivering values to
customers and for managing customer relationships in ways that benefit the
organization and its stakeholders.
Thus we see Marketing management as the art and science of choosing
target markets and getting, keeping and growing customers through creating,
delivering and communicating superior customer value.
Social Definition of Marketing:- Marketing is 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.
Managers sometimes think of marketing as “ the art of selling product”
but selling is only the tip of the Marketing iceberg.
Peter Drucker, a leading management theorist puts it as:-
There will always, one can assume, be need for some selling. But the
aim of marketing is to make selling superfluous. The aim of 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 be needed then is to make the product or service available.

3. Example:- Sony’s Play station 3 game system, Apple’s iPod Nano digital music
player.
Tata Ace:- Breakthrough Marketing.
What is Marketed?
Marketing people market 10 types of entities:-
1. Goods:- cars, televisions etc.
2. Services:- Work of airlines, hotels, car rental firms, etc.
3. Events:- Time based events. Ex:- Major Trade shows, Artistic Performances,
etc.
4. Experiences:- An amusement Park or a Water Park, Theme Restaurant that
creates the ambience of a village of a state, etc.
5. Person:- Celebrity Marketing is a major business. Ex:- Artistes, Musicians,
CEOs, Sportspersons etc.
6. Places:- Cities, States, Regions and even whole nations compete actively to
attract tourists, factories, Company Head Quarters, etc. Ex:- Bangaluru:-
Silicon Valley of India. Tourism industry:- Kerela- Marketed as ‘God’s own
country. Govt. of India – Incredible India.
7. Properties:- Properties are Intangible rights of ownership of either real
property (Real Estate) or Financial property (Stocks & Bonds)

4. 8. Organizations:- Organizations also market themselves to build
their image in the market. Ex:- Philips:- ‘Sense the Simplicity’
campaign after research among the customers world – wide.
9. Information:- Information can be about anything and everything.
Ex:- Schools, Colleges, Hospitals, Packaging.
10. Ideas:- Every market offering includes a basic idea. Ex:- Charles
Revson of Revlon once observed– ‘ In the factory, we make cosmetics;
in the store we sell hope’. Even social marketers are now busy
promoting such idea by creating awareness about AIDS, encouraging
family planning and discouraging smoking.
Marketers & Prospects:- A marketer is someone who seeks a response –
attention, a purchase, a vote, a donation – from another party called
the prospect. If two parties are seeking to sell something to each
other, we call them both Marketers.
Marketing managers seek to influence the level, timing and
composition of demand to meet the organization's objectives.

5. Eight Demand states are possible:-
1. Negative Demand:- Consumers dislike the product and may even
pay a price to avoid it.
2. Nonexistent Demand:- Consumers may be unaware of or
uninterested in the product.
3. Latent Demand:- Consumers may share a strong need that can not
be satisfied with the existing product.
4. Declining Demand:- Consumers begin to buy the product less
frequently or not at all.
5. Irregular Demand:- Consumer purchases vary on a Seasoned,
monthly, weekly, daily or even hourly basis.
6. Full Demand:- Adequately buying all products put in the market
place.
7. Over Full Demand:- More buyers than can be satisfied.
8. Unwholesome Demand:- Consumers may be attracted to products
that have undesirable social consequences.

6. Market :- Traditionally, a ‘Market’ was a physical place where buyers and
sellers gathered to buy and sell goods.
Economists describe a market as a collection of buyers and sellers
who transact over a particular product or product class.
5 Basic Markets and their connecting flow.
Resource Markets
Manufacturer
Markets
Government
Markets
Consumer Markets
Intermediary Markets
Resources
Money
Resources
Money
Money
Goods & Services
Taxes
Services
Services,
Money
Taxes, Goods
Taxes,
Goods
Services,
Money
Money
Goods & Services
Taxes,
Goods
Services,
Money

7. Marketers often use the term Market to cover various groupings of
customers. They view sellers as constituting the industry and buyers as
constituting the market.
Key Consumer Markets:-
1. Consumer Markets:- Consumer Market consists of Companies
selling mass consumer goods and services. Ex:- Soft Drinks,
Cosmetics, Air Travel, etc.
Industry
(A collection of sellers)
Market
(A collection of buyers)
Communication
Goods / Services
Money
Information

8. 2. Business Markets:- Business Market consists of Companies selling
business goods and services. This market often face well – trained
and well – informed professional buyers, who are skilled at
evaluating competitive offerings. Business buyers buy goods in order
to make or resell a product to others at a profit. Hence, in this
market, it is extremely important to show, how to maximize the
profit.
3. Global Markets:- Companies selling goods and services in the
global market place face additional decisions and challenges. They
have to decide, which country, how to enter, how to adapt their
product and service features to each country, the pricing strategies
and the communication to be used to fit varying cultures, legal and
political systems.
4. Non Profit & Government Markets:- Companies selling their
products to non profit organizations such as churches, universities,
charitable organizations and governmental agencies. Here the
companies need to price carefully, as these buyers have limited
purchasing power.

9. Market Place:- Market place is physical, such as a store, you shop in.
Market Space:- Market space is digital, as when we shop on the internet.
Meta Market:- Meta Market is a cluster of complementary products and
services that are closely related in the minds of consumers, but spread
across a diverse set of industries. Ex:- marutitruevalue.com,
MakeMyTrip.com, Yatra.com, etc.
Marketing in Practice:- Marketing is not done only by the marketing
department. Marketers must properly manage all possible touch points –
Store layouts, package designs, product functions, employee training and
shipping and logistics methods. Marketing must also be heavily involved
in key general management activities, such as product innovation and
new – business development.
To create a strong marketing organization, marketers must think
like executives in other departments, and executives in other
departments must think like marketers.

10. In practice, marketing follows a logical process. The marketing
planning process consists of analyzing marketing opportunities,
selecting target markets, designing marketing strategies,
developing marketing programs and managing the marketing
effort. However, in highly competitive marketplaces, marketing
planning is more fluid and needs to be continually refreshed.
There are 5 key functions for a CMO in leading marketing within
the organization:-
1. Strengthening the brands.
2. Measuring marketing effectiveness.
3. Driving new product development based on customer needs.
4. Gathering meaningful customer insights.
5. Utilizing new marketing technology.

11. Core Marketing Concepts:- To understand the marketing function, we
need to understand the following core set of concepts.
1. Needs, Wants & Demand:- Needs are the basic human
requirements. People need air, food, water, clothing and shelter to
survive. They also have a very strong needs for recreation, education
and entertainment.
These needs become wants, when they are directed to specific
objects that might satisfy the need.
Ex:- Food habit of USA and India.
Demands are wants for specific products backed up by an ability
to pay.
Ex:- Mercedes, BMW etc.
Companies must measure not only how many people want
their product, but also how many would actually be willing and
able to buy it.

12. We can distinguish among five types of needs:-
a. Stated Needs:- Ex:- The Customer wants an inexpensive car.
b. Real Needs:- Ex:- The Customer wants a car whose operating cost,
not the initial price, is low.
c. Unstated Needs:- Ex:- The Customer expects good service from the
dealer.
d. Delight Needs:- Ex:- The Customer would like the dealer to include
an onboard navigation system.
e. Secret Needs:- Ex:- The Customer wants his/her friends to see him
as a savvy consumer.
Simply giving customers what they want isn’t enough any
more – to gain an edge, companies must help customers learn
what they want.
Ex:- Mobile manufacturing companies.

13. 2. Target Markets, Positioning & Segmentation:- A marketer can
rarely satisfy everyone in a market. Hence, marketers start by
dividing the market into segments. They identify and profile distinct
groups of buyers who might prefer or require varying product and
service mixes by examining demographic, psychographic, and
behavioral differences among buyers.
After identifying market segments, the marketer then decides
which are it’s target markets. For each market, the firm develops a
market offering that it positions in the minds of the target buyers as
delivering some central benefit(s).
Ex:- Grameen Bank (Md. Yunus of Bangladesh)
Volvo (Car Segment):- They focused on safety as the major
concern and positioned as – The safest a customer can buy.
Scorpio:- Designed for people who prefer a sturdy vehicle that
offers luxury and comfort. Positioning has been done as – A vehicle
that offers the luxury of a car and the thrill of an SUV.
Companies perform best when they choose their target
market(s) carefully and prepare tailored marketing programs.

14. 3. Offerings & 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 experiences.
A Brand is an offering from a known source.
Ex:- Mc. Donald’s
Domino’s
4. Value & Satisfaction:- The offer will only be successful if it delivers
value and satisfaction to the target buyers. Value increases with
quality and service and decreases with price, although other factors
can also play an important role in our perceptions of value.
‘Satisfaction’ reflects a person’s judgments of a product’s
perceived performance in relationship to expectations.’

15. 4. Marketing Channels:- To reach a target market, the marketer uses
three kinds of marketing channels:-
a. Communication Channel:- Deliver and receive messages from
target buyers and include Newspapers, Magazines, radio, T.V, mail,
poster etc.
b. Distribution Channel:- To display, sell or deliver the physical
product or service(s) to the buyer or user. It include distributors,
wholesalers, retailers and agents.
c. Service Channel:- To carry out transactions with potential buyers. It
include, warehouses, transportation companies, banks and insurance
companies that facilitate transactions.
The challenge for the marketer is to select the best mix of
communication, distribution and service channels for their
offerings.

16. 6. Supply Chain:- The supply chain is a longer channel stretching from raw
materials to components to final products that are carried to final buyers.
Ex:- Supply chain for women’s purses starts with procurement of raw
materials and moves through training, cutting, manufacturing and the
marketing channels to bring products to customers.
7. Competition:- Competition includes all the actual and potential rival
offerings and substitutes a buyer might consider. Ex:- Steel for a car
manufacturer.
8. Marketing Environment:- Marketing Environment consists of the Task
Environment and the Broad Environment. The ‘Task Environment’
includes company, suppliers, distributors, dealers and target customers,
who are engaged in producing, distributing and promoting the offerings.
The ‘Broad Environment’ consists of six components:- Demographic
environment, Economic environment, Physical environment,
Technological environment, Political- Legal environment, and Social-
Cultural environment.
Marketers must pay close attention to the trends and developments in
these environment and make timely adjustments to their marketing
strategies.

17. The New Marketing Realities:- Marketplace is continuously
undergoing change. Hence, marketers must attend and respond to a
number of significant developments happening. These are:-
1. Major Societal Forces:- The marketplace today is radically different
as a result of major, and sometimes interlinking, societal forces that
have created new behaviors, new opportunities and new challenges:-
a. Network Information Technology:- The digital revolution has
created an information Age, which promises to lead to more accurate
levels of production, more targeted communications and more
relevant pricing.
b. Globalization:- Easier for companies to market in other countries
and easier for consumers to buy products and services from
marketers in other countries.
c. Deregulation:- Resulted in greater competition and growth
opportunities.

18. d. Privatization:- Many countries have gone for privatization of public
companies to increase their efficiency. Ex:- British airways and
British Telecom in U.K.
e. Heightened Competition:- Brand manufacturers are facing intense
competition from domestic and foreign brands, resulting in rising
promotion costs and shrinking profit margins. Also the powerful
retailer’s effect.
f. Industry Convergence:- Industry boundaries are blurring at an
incredible rates as companies are recognizing that now opportunities
lie at the intersection of two or more industries. Ex:- Dell, HP – MP3
players to mobile to plasma TVs and camcorders.
g. Consumer Resistance:- A 2004 Yankelovich study found record
levels of marketing resistance from consumers. A majority of those
surveyed reported negative opinions about marketing and
advertising, stating that they avoid products that they feel is over-
marketed.

19. h. Retail Transformation:- Small retailers are succumbing to the
growing power of giant retailers, direct- mail firms, e-commerce, TV
direct to customer ads, Home shopping T.V etc.
i. Disintermediation:- The amazing success of the dot-com(s) has
created disintermediation in the delivery of products and services by
intervening between the traditional flow of goods. In response, many
traditional companies engaged in reinter mediation and became ‘
Brick- and – Click’ retailers, adding online services to their existing
offerings.
The societal forces that spawned this information Age have
resulted in many new consumer and company capabilities.

20. 2. New consumer Capabilities:- Customers today are becoming less
brand loyal and more price and quality sensitive in their search for
value. Let us consider what consumers have today that they didn’t
have yesterday:-
a. A substantial increase in buying power:-
b. A greater variety of available goods and services:-
c. A greater amount of information about particularly anything:-
d. Greater ease in interacting and placing and receiving orders:-
e. An ability to compare notes on products and services:-
f. An amplified voice to influence peer and public opinion:-

21. 3. New Company Capabilities:- New forces also have combined to
generate a new set of capabilities for today’s companies:-
a. Internet as a powerful information and sales channel.
b. Advanced Market Research activities.
c. Speedy and effective internal communication among employees.
d. Target marketing and two-way communication are easier.
e. Companies can reach the customers even on the move.
f. Firms can produce individually differentiated goods. Ex:- BMW’s
technology now allows buyers to design their own models from
among 350 variations, with 500 options, 90 exterior colors and 170
trims. The company claims that 80% of the cars bought by
individuals in Europe and up to 30% bought in USA are built to
order.
g. More facilities to Managers regarding purchasing, recruiting, training
and internal and external communications.