Marketing aims to satisfy existing human and social needs. It does this through identifying needs and wants, then developing products and services to fulfill those needs in a way that benefits both customers and businesses. While marketing activities like advertising can expose customers to new products and potentially influence wants, the underlying needs themselves are pre-existing aspects of human nature and society. The goal of marketing is to meet needs, not create them.

1. Unit 1
Marketing in the Changing World
Marketing Management 1

2. Marketing meaning & concept
What is Marketing?
• Marketing is all about identifying and meeting human
and social needs.
Simple Definition:
Marketing is managing profitable customer relationships.
Goals:
1. Attract new customers by promising superior value.
2. Keep and grow current customers by delivering
satisfaction.
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3. Marketing meaning & concept
Marketing is a social process by which
individuals and groups obtain what they
need and want through creating and
exchanging products and value with others
PHILIP KOTLER
Marketing Management 3

4. Marketing meaning & concept
Marketing Defined:
process of planning and executing the conception, pricing,
promotion, and distribution of ideas, goods, and services to create
exchanges that satisfy individual and organizational goals–
American Marketing Association.
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OLD View
of Marketing:
Making a Sale –
“Telling & Selling”
New View
of Marketing:
Satisfying
customer needs
NEW View
of Marketing:
Satisfying
Customer Needs

5. Marketing Management 5
Goods
Services
Events & Experiences
Persons
Places & Properties
Organizations
Information
Ideas
What is Marketed?

6. Marketing System
Markets
• Relationship between the industry and the market
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7. Core Marketing Concepts
Needs, Wants, and Demands
• Needs: Needs describe basic human requirements
such as food, air, water, clothing, and shelter.
• State of felt deprivation including physical, social,
and individual needs.
• Wants: Wants are desires for specific satisfiers of
the deeper needs. Needs are few and wants are
many
• Demands: are wants backed by willingness and
Ability to buy
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8. PRODUCTS / OFFERS / SATISFIERS / RESOURCES
• Anything that can be offered to someone
to satisfy a need or want is a product .
• Product refers to physical object
• Services refer to intangible object

9. VALUE AND SATISFACTION
• Customers’ estimate of the Product’s capacity to
satisfy a set of goals
• The ratio between what the customer gets and
what he gives (V=B/C)
• Customer gets benefits & assume costs
– WHEN :Customer Expectance=Performance (satisfied)
– Customer Expectance>Performance (dis-satisfied)
– Customer Expectance<Performance (Highly satisfied)

10. EXCHANGE AND TRANSACTION
• Exchange is the act of obtaining a desired
product by offering something in return .
• Exchange takes place when 5 conditions are satisfied:
(a) Two parties should be there
(b) Each party must have something of value to the other
(c) Each party is capable of communication & delivery
(d) Each party is free to accept or reject the offer
(e) Each party believes that it is appropriate to deal with the
other party

11. EXCHANGE AND TRANSACTION
• Exchange is a process rather than event. It is a
value creating process because it normally
leaves both parties better off.
• A transaction is a trade of values between two
or more parties ( A BARTER TRANSACTION OR
A MONETARY TRANSACTION ).

12. Core Marketing Concepts
Segmentation, Target Markets, and Positioning
• Identify and profile distinct groups of buyers who might prefer
or require varying products and services mixes by examining
– Demographic information
– Psychographic information
– Behavioral information
• Target market
– Which market presents the greatest opportunity
• Positioning
– the act of designing the company’s offering and image to occupy a
distinctive place in the mind of the target market.
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13. Core Marketing Concepts
• Marketing Channels
–Communication channels; Distribution
channels; Service channels; Supply Chain
• Competition
–All the actual and potential rival offerings and
substitutes a buyer might consider
• Marketing environment
– Microenvironment
– Microenvironment
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14. Marketing Philosophies
Production Concept
• Philosophy if the goods/services are cheap and they can be
made available at many places, there cannot be any problem
regarding sale.
• Focus was to produce more not on market
• The basic assumptions were:
– It is the consumer who look good product at the low price
– The consumer knows the prices of the competitive products and
compare them in terms of quality and price
– The consumer does not care about the difference among the rival
product, except in the case of price
– Main aim of the organisation is to improve efficiency of the
production and distribution while keeping the prices down, hence
keep the customer
Consumer Behavior 14

15. Product Concept
• If the quality of goods or services is of good
standard, the customers can be easily attracted.
• Direct their activities towards improving the
quality of the product
• Do not consider whether consumer want that
feature or not
• Results marketing myopia i.e. too much focus on
the product rather than consumers
15

16. Selling Concept
• Emphasis on selling and promotional activities
• Consumers needs to be persuaded to sell the
product
• Gives emphasis to firms interest of selling what is
available
• Assumptions are;
– Customer normally tend to hold comparisons when
buying things they do not urgently need
– Through persuasion the consumer can buy more
– Organisation must have strong sales department
16

17. Marketing Concept
• Success can be achieved only through consumer
satisfaction
• Needs and wants of the specific target market
should be determined and deliver the desired
satisfaction
• they do not sell what they can make but they
make what they can sell
• Concept of consumer research
17

18. Societal Marketing Concept
• Managerial orientation that considers the essential
activity of the organisation to be:
– The determination of the needs and wants of the target
markets
– Achievement of the satisfaction more efficiently and
effectively and in the way that preserves or strengthens
integration between the consumer and society
• Public interest should be considered apart from
achieving consumer satisfaction
18

19. Holistic Marketing Dimensions
19Marketing Management

20. The Holistic Marketing Concept
• Relationship Marketing
– Aims to build mutually satisfying long-term relationships with key
constituents in order to earn and retain their business
– A marketing network (Customers; Channel; Partners; financiers)
• Integrated Marketing
– Devise marketing activities and assemble fully integrated marketing
programs to create, communicate, and deliver value for the consumers.
– 4Ps and SIVA (Product – Solution; Promotion – Information; Price –
Value; and Place – Access)
• Internal Marketing
– The task of hiring, training, and motivating able employees who want to
serve customers well.
• Performance Marketing
– Social Responsibility Marketing
– Financial Accountability
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21. Marketing
Concept
Starting point Main focus Means End Goal
Production factory Production
orientation
Production of goods
at affordable/low cost
Profit through
production
efficiency
Product factory Quality oriented Production of high
quality goods and
better performance
Profit through
quality assurance
Selling factory Seller’s need oriented Aggressive selling and
heavy promotion
Profit through
high sales volume
Marketing Target market Customer oriented Integrated marketing Profit through
customer
satisfaction
Societal
marketing
Target society Society oriented IM with socially and
ethically responsible
marketing
Goal achievement
through social
responsibility
Holistic
marketing
Target market All aspects of
customer as well as
social needs and want
Application of
IM,RM,>>.
Developing
corporate culture
in marketing
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22. The New Marketing Realities
"The marketplace is not what it used to be."
• Major Societal Forces affecting Marketing:
A. Network information technology (development of ICT)
B. Globalization (going global)
C. Deregulation (more freedom to business community)
D. Privatization (very few govt. enterprises and reducing)
E. Heightened Competition (Many players, easy entry)
F. Industry Convergence (having few major player in the market)
G. Consumer Resistance (more information to customers)
H. Retail Transformation (power of retailer)
I. Disintermediation (direct to customer thru non-traditional way)
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23. • New Consumer Capabilities
A. A substantial increase in buying power
B. Greater variety of goods and services
C. Great deal of information available
D. Greater ease in interacting and placing orders
E. Ability to compare products and services
• New Company Capabilities
A. Internet
B. Research
C. Speed of internal information
D. Speed of external information “buzz’
E. Better target marketing
F. Mobile marketing
G. Differentiated goods
H. Improved purchasing, recruiting, training, and communications
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24. Marketing management
• Planning production and control of entire
marketing activity of the firm or a division of a
firm including the formulation of marketing
objectives, policies, programs, strategies and
reappraising product development organization to
carry out their plans professional working
operation and controlling operations
Marketing Management 24

25. Functions
• Planning
• Organizing
• Directing
• controlling
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26. • All elements within the control of the firm that
communicate the firm’s capabilities and image to
customers or that influence customer satisfaction
with the firm’s product and services:
– Product
– Price
– Place
– Promotion
– People
– Process
– Physical Evidence
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27. 4Ps of Marketing
Marketing Management 27

28. Emerging Marketing Concepts
Guerilla Marketing
• Guerrilla marketing is an advertising strategy in which low-cost unconventional
means (graffiti, sticker bombing, flash mobs) are utilized, often in a localized
fashion or large network of individual cells, to convey or promote a product or
an idea. The term guerrilla marketing is easily traced to guerrilla warfare which
utilizes atypical tactics to achieve a goal in a competitive and unforgiving
environment.
• The concept of guerrilla marketing was invented as an unconventional system
of promotions that relies on time, energy and imagination rather than a big-
marketing budget.
• Typically, guerrilla marketing campaigns are unexpected and unconventional,
potentially interactive, and consumers are targeted in unexpected places.
• The objective of guerrilla marketing is to create a unique, engaging and
thought-provoking concept to generate buzz, and consequently turn viral.
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29. Emerging Marketing Concepts
Viral Marketing
• Marketing phenomenon that facilitates and encourages people to pass
along a marketing message.
– Viral marketing depends on a high pass-along rate from person to person.
If a large percentage of recipients forward something to a large number of
friends, the overall growth snowballs very quickly. If the pass-along
numbers get too low, the overall growth quickly fizzles.
– Viral marketing, viral advertising, referring to marketing techniques that use pre-existing social
networks to produce increases in brand awareness or to achieve other marketing objectives (such
as product sales) through self replicating viral processes. It can be delivered by word of mouth or
enhanced by the network effects of the Internet.
– Viral marketing may take the form of video clips, interactive Flash Games, advergames, ebooks,
brandable software, images, or text messages.
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30. Emerging Marketing Concepts
Green Marketing
• Green marketing is the marketing of products that are presumed to be
environmentally safe. – AMA
• Thus green marketing incorporates a broad range of activities, including product
modification, changes to the production process, packaging changes, as well as
modifying advertising.
• Yet defining green marketing is not a simple task where several meanings
intersect and contradict each other; an example of this will be the existence of
varying social, environmental and retail definitions attached to this term.
• Other similar terms used are Environmental Marketing and Ecological Marketing.
• Green, environmental and eco-marketing are part of the new marketing
approaches which do not just refocus, adjust or enhance existing marketing
thinking and practice, but seek to challenge those approaches and provide a
substantially different perspective.
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31. Emerging Marketing Concepts
Meta Marketing
• An approach to the study of marketing and its relationship to
every aspects of life by focusing all social, ethical, scientific and
business experience on marketing, thus establishing a body of
knowledge based on the integration of every facet of
experience with the human personality. – Philip Kotler.
• Marketing of all complimentary products and services
that are closely related to a product in the consumer's
mind. E.g. when consumer buys a house, he needs
finance, furnishing, household goods, interior
designing etc.
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32. Emerging Marketing Concepts
Mega Marketing
• The strategic co-ordination of economic, psychological, p0litical, and
public relations skills to gain the cooperation of a number of parties in
order to enter the market.
• Mega marketing is normally used by the large companies who are trying
to enter blocked markets. In this marketing approach, the marketing
efforts go beyond the 4ps of the marketing Ps. The companies manages
other P-factors such as politics and public opinion.
Micro Marketing
• The practice of tailoring products and marketing programs according to
the needs and wants of specific individuals and local customer groups.
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33. Marketing Challenges
• Competitive position challenges
– Threat of new entrant
– Threat of substitute product
– Increased bargaining power of buyer
– Bargaining power of supplier
– Rivalry among competing firms in industry
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34. Other challenges
• Information power of the consumer
• Demand for better quality and reliable product
• Customers needs wants and expectation are
changing rapidly
• New product are coming in the market more
quickly
• Fragmented media and increase in media cost
• Global competition rather than local
• Increased accountability
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35. Relationship marketing
• It is the process of creating maintaining and
enhancing strong value laden relationship
with consumers and other stakeholders
• It is building mutually satisfying long term
relationship with the key parties in order to
retain their business.
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36. Importance of relationship marketing
• Long term relation
• Customer satisfaction
• Loyal customer
• Development of new partnership
• Long term profit
• Identification of strength and weakness
Marketing Management 36

37. E-commerce marketing
• It refers to the buying and selling something
electronically
• Features
– Individual communication
– Online selling
– Elimination of middlemen
– Data depositary
– Enhance promotion
– Global alliance
– Good relationship
– Need of electronic devices
Marketing Management 37

38. Marketing Management 38
Class Discussion:
• Does Marketing Create Needs or Satisfy Needs?