An Introduction to

Marketing
 Marketing
• Marketing = Market + ing
(something)
= Market + activities
in the market
= Market + business
activities
= Market + business
transactions
 Market and Marketing
Market-
• Market does not only refers to a place but it
locates in a place where transaction takes place
between buyers and sellers.
• Types—
(i ) On the basis of Geographical Area-
• Local Market – It involve buyers and sellers of
a small local area
• Regional Market - It involve buyers and sellers
of a region
• National Market - It involve both buyers and
sellers of the entire nation.
• Global or World Market - It involve both
buyers and sellers of many nations.
 Market and Marketing
(ii) On the basis of Nature of Competition in the Market-
• Perfect Market
• Imperfect Market
(iii) On the basis of Goods Sold-
• Consumer Goods Market – Market where the final
output of the firm goes for the consumption of
individual or household.
• Industrial Goods Market- Market where the final
output of the firm goes either as raw material, goods
in process or as consumables of the another industry.
• Non – Profit and Government Markets – Non-
profit organizations like social service agencies,
educational organizations, charitable organizations.
 Market and Marketing
Marketing –
• Marketing is a set of business activities that
facilitate movement of goods and services from
producer to consumer.
• It is an ongoing process of discovering and
translating consumer needs into products and
services, creating demands for them, serving
the consumer and his demand through a
marketing programme of promotion and
distribution to fulfill the company’s marketing
goals in a competitive environment.
 Definition of Marketing

• “The 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”
– AMA
• Marketing emphasizes on providing the product
at the right place, at the right price, at the right
time and in the right form
• Marketers must focus on customer needs and
wants to ensure customer satisfaction.
 Definition of Marketing
Latest definition by Philip Kotler:

•Marketing is a social and managerial process

by which individuals and groups obtain what
they need and want through creating and
exchanging value with others

• Marketing is managing profitable customer

relationships
– Attracting new customers
– Retaining and growing current customers
 Marketing
Therefore, Marketing is
• Satisfying customer needs
• Meeting needs profitably
• Generating customer value at a
profit
• Managing profitable customer
relationships by delivering
superior value to customers
Selling – Marketing...

“There will always be need for

some selling. But the aim of
marketing is to make selling
redundant. 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.”
Peter
Drucker
 Marketing and Sales Concepts

Starting Focus Means Ends

Point
Factory Existing Selling & Profits
Products Promotion through
Sales
Volume
The Selling Concept
Starting Focus Means Ends
Point
Market Customer Integrated Profits
Needs Marketing through
Customer
 Simple Marketing System

Communication

Industry Products/services Market

(a collection (a collection
of sellers) of Buyers)
Money

Information
Core Concepts of Marketing

Needs, wants,
and demands

Markets Products
and services

Exchange, Value and

transactions, satisfaction
and relationships
Marketing Concept - The 4 P’s
 Marketing Concept - The 4 P’s +
The 4 C’s

Marketing
Mix

Place
Product

Convenience
Customer Price Promotion
solution

Customer Cost Communication

Concept: Traditional Organization

Top
Management

Middle Management

Front-line people

Customers
 Modern Marketing Concept-
Customer-Oriented Organization Chart

Customers

Front-line people

Middle management
s
C

r
us

e
om
t
om

Top t
s
er

manage- u
C
s

ment
 Micro and Macro marketing

Micro-marketing Macro-marketing
The performance of A social process that
activities that seek to directs an economy’s
accomplish an flow of goods and
organization’s services to effectively
objectives by match supply and
anticipating customer demand and to meet
needs and directing society’s objectives.
the flow of need-
satisfying goods and
services.
 Implications of the Definition of Micro-
Marketing
• Applies to profit and nonprofit
organizations.
• NOT just persuading customers to buy.
• Begins with customer needs and
focuses on customer satisfaction.
• Marketing activities --but it is a
philosophy that guides the whole
business.
• Seeks to builds a relationship with the
customer.
• Needs – It constitutes basic
requirements like food, shelter, cloth
etc.
• Wants – Want specifically highlights
a particular objects to fulfill that
need.
 Utility and Marketing

From Production
Time
Time
Form
Form

Utility
Utility
Value
Value that
that comes
comes Place
Place
from
from satisfying
satisfying
human
human needs
needs

Task
Task
Possession
Possession

Exhibit 1-1 From Marketing

• Utility – Capacity to satisfy the consumer need / want
• Form Utility – conversion of raw materials into
finished products (different form / shape)
• Time Utility – providing / supplying the product to
the consumer in time as per their demand
• Place Utility- Providing / supplying the product at
the place where customer prefers
• Possession Utility- allows a buyer to use the
product as he / she uses . It is a value that a buyer
obtains (possess) from the product.
 Marketing Concept and Societal
Marketing Concept
• Marketing Concept -
• Marketing starts with identifying customer needs and wants
and ends with satisfaction through achieving goals.
• It is based on beliefs:
(i) Customer oriented planning and operation
(ii) goal should be profitable sales volume
(iii) all marketing activities should be coordinated effectively.
• Features of marketing concept –
(i) Consumer orientation – consumer becomes the focal point of
business
(ii) Long-term profitability – aiming on future profit (MR, product
development, customer service)
(iii) Functional integration- co-ordination among different
departments / functional bodies for smooth operation of
business
 Societal Marketing
Concept
• The customer and the society are inter-related.
• So, company’s offer to the customer has a direct
bearing on the society.
• According to the societal marketing concept, apart
from determining needs and wants, target market,
quality product, organization also helps to
improve society’s well – being
• Societal marketing manager believe that social
responsibility brings the goodwill of the company.
 Marketing Myopia
• Myopia means short-sightedness
• Marketing myopia argues that industries fail not because of
saturated market but because of non-fulfillment of customer
need (failure or short-sightedness of management)
Conditions
(i) company’s belief that more and more of the population
affluent about the product
(ii) company belief that no substitute product available in the
market
(iii) company belief that producing large quantity will reduce
production cost
Recommendations for overcome –
(i) Be customer oriented but not product oriented
(ii) Market orientation should permeate through out the
organization.
(iii) Managers need to be proactive and visionary.
 Marketing Dynamics
• Products and markets are constantly changing due
to technological advancements.
• Due to the advancement of technology, company and
marketer responses are adjusted.
• So, Marketing dynamics refers to the company and
marketer responses and adjustments.
Company responses and adjustments-
• Reengineering
• Outsourcing
• E-commerce
• Benchmarking
• Suppliers
• Global and Local Markets
• Decentralization
Marketer responses and
adjustments
• Customization
• Building a good relationship
• Target marketing
• Customer Database
• Integrated Marketing Communication
Thank You