CHAPTER 1: Defining Marketing

“A lot of times people don’t know what they want until you show it to them.”

– Steve Jobs

What is Marketing?
Is an organizational function and a set of process for creating, communicating,
and delivering value to customers and managing customer relationships in a way that
benefit the organization and stakeholders.

Products vs. Services

(What are you selling?) Products are tangible and Services are intangible.

8 Types of demands in Marketing

1. NEGATIVE DEMAND
- A product is disliked by all its target customers in general.
o Example: Services like dental treatments, insurance policies face a
lot of negative demand because people rather than going to a
doctor for treatment or taking an insurance policy, prefer taking
preventive measures to avoid buying these services.

2. UNWHOLESOME DEMAND
- Consumer badly wants the product but shouldn’t desire or take the decision
to buy it.
o Example: Products like alcohol, pirated movies, firearms, crackers,
etc.

3. NON-EXISTING DEMAND
- A marketer thinks that there is a demand for the product in the market but
in reality, there is no demand for the product.
o Example: The mobile phones made by Blackberry and HTC which are
not in demand anymore, still, the companies keep on producing
them.

4. LATENT DEMAND
 - It means that the demand for which the product is not available or is not
developed to date.
o Example: Things that are still not invented by this time or still
developing.

5. DECLINING DEMAND
- the demand for the product whose demand is declining with time.
o Example: Various products like technological products in which the
coming of new technology results in declining of previous tech or
methods.
6. IRREGULAR DEMAND
- This is the demand due to which a company has to change its marketing
strategy from time to time repeatedly.
- The customer only wants the product in a certain period or season due to
which they only buy the product in that particular season.
o Example: Air-conditioners

7. FULL DEMAND
- It is the state of the market where the supply is equal to the demand.
o Example: The demand for smartphones like Samsung, iPhone, etc.
The products of these brands get sold out whenever they launch a
new model.

8. OVERFULL DEMAND
- The demand is more but supply is less.
o Example: This type of demand can usually be seen in occasional
products like the cement industry where the demand is occasional
but very high.

Components of a modern marketing Information System

 (1) Disciplined methods for collecting information
(2) Time spent interacting with customers and observing competitors and other
outside groups

Marketing Information System (MIS)

 Consist of people, equipment, and procedures to gather, sort, analyze, evaluate,
and distribute needed, timely, and accurate information to marketing decision
makers.

Internal Records
1) The Order-to-Payment Cycle
- The heart of the internal records system
- Sales representatives, dealers, and customers dispatch orders to the firm
- The sales department prepares invoices and transmits copies to various
departments.
- Out-of-stock items are back ordered.
- Shipped items are accompanied by shipping and billing documents that are
sent to various departments.
- Customers favor firms that can promise timely delivery.
- Order-Pay can also be done online. This process is called as EDI-Electronic
Data Interface.

2) Sales Information Systems

-  Marketing managers need up-to-the-minute reports on current sales.
- Armed with laptop, computers, sales representatives can access information
about prospects and customers and provide immediate feedback and sales
reports.
- E.g.: An ad for Sales CTRL, a sales force automation software package,
boasts, “Your salesperson in St. Louis knows what Customer Service in
Chicago told their customer in Atlanta this morning.
- Sales managers can monitor everything in their territories and get current
sales forecasts anytime. “Sales force automation (SFA) software has come a
long way.

3) Databases, Data Warehousing and Data Mining

a. Databases
 A database is an organized collection of data.
 The data is typically organized to model relevant aspects of
reality in a way that supports processes requiring this
information.
 Today company organize their information in databases such as
customer databases, product databases, salesperson data bases
and combine data from different databases.
b. Data Warehousing
 Data warehouse means where all the databases are kept.
 Data warehouses store current as well as historical data.
 Company warehouse these data and make them easily
accessible to decision makers.
c. Data Mining
 The data mining process is to extract information from a data
set and transform it into an understandable structure for further
ruse.
What Is A Quality Management System (QMS)?
- It is defined as a formalized system that documents processes, procedures,
and responsibilities for achieving quality policies and objectives.
- It helps coordinate and direct an organization’s activities to meet customer
and regulatory requirements and improve its effectiveness and efficiency on
a continuous basis.

Benefits of a documented quality management system include:

 Meeting the customer’s requirements, which helps to instill confidence in the

organization, in turn leading to more customers, more sales, and more repeat
business
 Meeting the organization's requirements, which ensures compliance with
regulations and provision of products and services in the most cost- and
resource-efficient manner, creating room for expansion, growth, and profit

These benefits offer additional advantages, including:

 Defining, improving, and controlling processes

 Reducing waste
 Preventing mistakes
 Lowering costs
 Facilitating and identifying training opportunities
 Engaging staff
 Setting organization-wide direction
 Communicating a readiness to produce consistent results

ISO 9001:2015 AND OTHER QMS STANDARDS

ISO 9001:2015 is the most recognized and implemented quality management system
standard in the world. ISO 9001:2015 specifies the requirements for a QMS that
organizations can use to develop their own programs.

Other standards related to quality management systems include the rest of the ISO 9000
series (including ISO 9000 and ISO 9004), the ISO 14000 series (environmental
management systems), ISO 13485 (quality management systems for medical
devices), ISO 19011 (auditing management systems), and ISO/TS 16949 (quality
management systems for automotive-related products).
ELEMENTS AND REQUIREMENTS OF A QMS
 The organization’s quality policy and quality objectives
o Quality commitment of people/staff
 Quality manual
 Procedures, instructions, and records
 Data management
 Internal processes
o Standard papers and instructions
 Customer satisfaction from product quality
o Pricing
o Lying of the quality
 Improvement opportunities
o Continuous improvements, need to improve processes
 Quality analysis