The mgmt. process
identifying, anticipating &
Satisfying needs and wants
through an exchange
Marketing is essentially
about providing changing benefits
to the changing needs and demands
of the customers
THE COMMON THEME IS:
MEETING NEEDS AND PROVIDING BENEFITS
American Marketing Assc.
Marketing is the process of planning and
executing the conception, pricing,
promotion and distribution
of ideas, goods, and services
to create exchanges that satisfy individuals'
and companies' goals.
Salient features of the definitions
A main objective of marketing is to create customer value.
Marketing usually involves an exchange between buyers and
sellers or between other parties.
Marketing has an impact on the firm, its suppliers, its
customers, and others affected by the firm’s choices.
Marketing frequently involves enduring relationships between
buyers, sellers, and other parties.
Processes involved include “creating, communicating,
delivering, and exchanging offerings.”
WTO, Globalization, Freer Exports and Imports
Finance Company, Computer Company etc
From a Seller’s Market to a Buyer’s Market
The new economy
Substantial increase in buying power
A greater variety of goods and services
A greater amount of information about
A greater ease in interacting and placing
and receiving orders
An ability to compare notes on products
Concepts in Marketing
• The Production Concept : States that
Consumers will favor those products that are
widely available and low in cost
• Therefore what do you do?
• Any companies following this concept today?
Produce as much as possible
• Distribute widely
• Example, Henry Ford’s early cars
• Today, screws, nuts, plugs
• However, there were problems here, which were?
• No focus on quality and features, just price and
This paved way to the “Product
Product Concept: Consumers will favour that
product that offers the best quality/performance
and most features
• Hence, what do you do?
• Make the “best” possible product
• Do R&D, come out with new features, improve,
improve and improve
• What are the problems here?
Product Concept - Myopia
Ted Levitt called it “Marketing Myopia”
• Focus on the consumer need, rather than
on the product
• For instance, railroad companies in the US
• The rise of budget airlines, even in Asia
• Bajaj missed the motorcycle revolution
• IBM missed the PC revolution
Marketing Concept: Determine Consumer Needs/Wants
and fill them better than anyone else, at a profit
• The Consumer is thus the starting point
• Marketing starts with consumer needs
• Hence, marketers have to be consumer focused always,
consumer obsessed, in fact
• Who is the market leader in consumer electronics today?
• So is this the end or can we improve the marketing concept
• Is the customer the only person you care about?
Societal marketing concept
Societal Marketing: Fulfill consumer needs, at the
same time, don’t harm him/her & society
• Thus, McDonalds faced lawsuits
• Eco-friendliness is in vogue - CFC free fridges the
• Thus, currently, the last two concepts hold sway
Marketing starts with the
How does it define itself?
What are its goals?
Who are its customers?
How does it intend to fulfill its mission?
who the company's customers are
what the company's customers want or
how the firm can satisfy those customer
needs better than its rivals
how the firm can satisfy customer needs in
a way that generates the kind of profits
that the company wants to achieve
NEEDS / WANTS / DEMAND
Needs are the basic human requirements
Wants are directed to specific
objects that satisfy the need
Demands and wants are backed by the
“ability” to buy/pay
Marketing focuses on customer needs
stated needs—what customers say they want
real needs—what customers actually require
unstated needs—requirements that customers
don't happen to mention
delight needs—the desire for luxuries, as
compared to real needs
secret needs—needs that customers feel
reluctant to admit
(courtesy: Philip Kotler, Marketing Management)
The market is in a state of negative demand if; a major part of
the market dislikes the product and may even pay a price to
Eg: People have a negative demand for
Gall bladder operation Employers feel a negative demand for
Target consumers may be uninterested in
the product. Ex – People have no demand
Farmers may not be interested in new
College students may not be interested in a
foreign language course.
Many consumers may share a strong need that
cannot be satisfied by any existing products.
Latent demand for harmless cigarettes.
More fuel efficient cars.
The marketing task is to measure the size of the
potential market and develop effective goods and
services that would satisfy the demand.
A substantial drop in the demand for products.
Boy scout enrolment among Singapore students.
The marketing task is to:
Analyse the cause of market decline.
Determine whether the demand can be re-stimulated by
changing target markets, changing product features and
developing more effective goods.
To reverse the declining demand through creative
remarketing of the product.
Organizations face demand that varies on a
seasonal, daily or even hourly basis, causing
problems of idle capacity or overcrowded
Markets :- visited on weekends, not on weekdays.
Hospitals :- OT’s booked for early weak
The marketing task is called Synchro Marketing
(alter pricing, promotion & other incentives)
Organizations face full demand when they are
pleased with their volume of business.
The marketing task is to:
Maintain the current level of demand in the face of
changing consumer preferences and increasing
Quality should be improved.
Continuously measure consumer satisfaction.
Eg: Maruti at the time of bookings made open.
Some organizations face a demand level that is
higher than they can or want to handle. Marketing
task is De-marketing which requires finding ways
to reduce the demand temporarily or permanently.
Steps involved in de-marketing:
Reducing promotion and service.
Selective de-marketing(less profitable markets)
Unwholesome products will attract organized
effort to discourage their consumption. Un-selling
campaigns have been conducted against
Can you name a category of products forCan you name a category of products for
which your negative feelings havewhich your negative feelings have
softened? What precipitatedsoftened? What precipitated
this change?this change?
ITS POSITION IN THE MIND OF THE BUYERS
The intangible value
proposition (a set of
benefits offered to
customers to satisfy
their needs) is made
physical by an
It is an offering from a
known source - A
name, term, sign,
symbol or design or a
combination of these
intended to identify
the goods of one
seller and to
differentiate it from
those of competitors
VALUE: the perceived tangible and intangible
benefits and costs to customers
SATISFACTION: a person’s judgment of the
product’s perceived performance as against
A new language
Priya was excited when she was hired to design accessories for
a small but extremely popular handbag company. Now she sat
at her work area uninspired—when she should have been
energized. She'd just presented her sketches and prototypes for
a whole new line of wallets, and was thrilled when the top
designer asked for one and started using it! But the moment
passed quickly. The marketing people started talking about
brands. Of course she knew what a brand was—but then they
droned on about something called differentiation and
positioning, and she was lost. She didn't know what she was
supposed to do. Priya had always had an instinct for fashion and
trends—and a talent for being ahead of the curve. Now she
began to realize that those instincts and skills weren't going to
be enough. She didn't want to go to business school, but she
had to be able to talk to these people…soon!
WHAT WOULD YOU DO?
Building the business
Well-Built Furniture had a banner year selling attractive home-office
furniture to customers in a large metropolitan area. At a monthl
executive meeting, sales rep Harry presented his idea to develop a
new service: For an additional cost, customers could have a Well-
Built service representative assemble the unit in their home. Harry
had talked to enough customers to know the service would be a huge
success. Every customer he talked to loved the idea. Harry started
planning right away. He was projecting the costs of training the reps
when a guy from marketing strolled up to his desk and started asking
about what the competition was doing. Then he asked if Harry could
come up with numbers to show how the added service would
increase revenue…and, more importantly, raise profits. Harry was
tempted to ask, "Isn't that you job?" but he'd been around long
enough to know you don't talk to other managers that way. Besides,
the questions made him a little nervous. What if the idea wasn't as
profitable as he'd thought? Maybe he was rushing into it. Maybe he
should come up with some numbers, but how? He didn't even know
where to begin.
What would YOU do?
increasing sales of an
existing product and
penetrating the market
further by either promoting
the product heavily or
Developing new products
aimed within existing
market, in the hope of
gaining more customers /
Strategy of selling existing
products to new markets –
thru’ segmentation or new
Moving away from the core
activities to providing
scaling down on
in existing markets
Scandinavian vacuum manufacturer Electrolux used the
following in an American campaign: "Nothing sucks like an
Coors put its slogan, "Turn It Loose," into Spanish where its
translation was read as "Suffer From Diarrhea."
Clairol introduced the "Mist Stick", a curling iron, into German
only to find out that "mist" is slang for manure. Not too many
people had use for the "manure stick."