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Basics of Marketing

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 Introduction to Marketing
• Marketing is everywhere,

• marketing is the core function and the other

functions like finance, human resource and
operations are support functions,

• Demand is created & profit is generated for the

company only through marketing,

• No demand = no profit,
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 Introduction to Marketing
• Marketing has been defined by many people,
- Marketing Management is the art & science of
choosing target market and getting, keeping and
growing customers through creating, delivering and
communicating superior customer values.
Philip Kotler
- Marketing includes all activities which are connected
with the transfer of ownership and possession of
goods and services.
American Marketing Association

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Q. What are the different entities that the
marketers can market?
1) Goods
2) Services
3) Events
4) Experience
5) Persons
6) Places
7) Properties
8) Organizations &
9) Ideas
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 Functions of Marketing
1) Marketing Management
2) Environmental Analysis & Marketing research
3) Consumer Analysis
4) Product Planning
5) Price Planning
6) Distribution Planning &
7) Promotion Planning

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1) Marketing Management
- plan, implement and control the marketing strategy.

2) Environmental Analysis and marketing research

- the primary function of analyzing the micro and
macro environment of the company, it collects
the data, and the market planning is done on that
data.

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3) Consumer Analysis
- examines and evaluates the consumer characteristics,
the needs and purchase processes, segment the market
and fix the target group of customers.

4) Product Planning
- developing new product, deciding on product
assortment, packaging, branding and adding new
features to the product, they also focus on deleting
those products which are not beneficial to the company.

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5) Price Planning
- fixes price based on various pricing techniques, decides
on the terms of purchase, discounts etc.

6) Distribution Planning
- task of determining and forming logical relationships
with intermediaries, physical distribution, transportation,
warehousing, wholesaling and retailing of the products,

7) Promotional Planning
- Communicating about the product to the public with the
help of advertising, personal selling, sales distribution etc.

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• Core Concepts of Marketing

• Need, Want, Desire & Demand

1) Need
-Basic requirement for existence of human life. air,
water, food & shelter etc. Education, healthcare,
recreation,

-Customers are unaware about certain needs, or if they

aware, they are unable to articulate and demand these
needs,

-The role of marketer is to identify all kinds of needs

and communicating the same to the users, also the
customers should be motivated to consider that this
product alone can satisfy their needs,
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-Needs are not created, they are pre-exist and the
marketers just remind the customer of that need.

-Various types of needs

1) Stated needs
2) Real needs
3) Unstated needs
4) Delight needs &
5) Secret needs

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a) Stated needs
-these are the clearly defined needs of customer, they are
the parameters or factors that they ask marketer of a
product,

e.g. a customer may ask for an inexpensive air-conditioner

b) Real needs
- from the above example we see that the customer needs
an inexpensive air-conditioner,

-it can have low initial price but the maintenance and
operating cost may be high,
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- so if the customer needs an air-conditioner with a low
operating cost, then inexpensive is the stated need of the
customer where as low operating cost is the real need,

c) Unstated needs
-these are the set of benefits which are not asked by the
customers but they expect them naturally with the
offerings,

-like in above example, customer naturally expects a good

post-sales service by the dealer,

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d) Delight needs
- these are the set of benefits which can be delight the
customer as they help the dealer to cross the
expectation level of the customers,

-if the air-conditioner dealer provides the customers with

free installation of the air-conditioner, then the customer
is delighted,

e) Secret needs
-the customer has a subtle desire that the air-conditioner
should also add to his/her social status,

-here social status is the secret need that the product

can fulfill, 13
-the challenge with the marketer is to realize not only
the stated needs but also the other four needs,

-the one who caters to all the five needs becomes

market leader,

-the company should help the customers know as to

what they actually want from a product,

-the customers had no clue as to what they wanted

from a cellular phone when it was launched,

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2) Want
-very delicate line between need & want, when need is a
directed to a specific object, it becomes a want,

e.g. Clothes-need but

Van Heusen Shirt-want

-Needs are common for mankind, it may not vary with

different cultures, societies and geographical boundaries,
but wants are shaped according to the taste and
preference of the society,

e.g. food- Common need but Burger in the U.S. & Pizza in
France is a wanted item.
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-want may be created by marketers whereas the need is
already exists and cannot be created,

- a need can only be communicated to the customers by

way of its offerings.

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3) Desire

-Desire is the human appetite for a given object to

attention,

-a want is a desire until backed by the ability to pay for the

same,

-the willingness to buy a wanted item is called as desire,

-a person may desire to buy a Luis Phillippe shirt but may

not have the ability to pay for it,

-so that the desire cannot be converted to demand,

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4) Demand

-a decision to buy a particular product is influenced by

two factors

1) willingness &
2) ability to pay,

-when a customer is willing to pay for a product that

means, it is a wanted item for him, but when this want
backed by ability to pay, it becomes a Demand,

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-a Toyoto Camry may be a desire or want for many, but
it is demand for only a small section of people who
actually can afford it,

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* Value
-Value For product or service is most Important term in
marketing,
-it is arithmetic sum of perceived benefits and costs of
a product,
-here cost include both economic & non economic
costs of the product,
-the benefits include both tangible & the intangible
ones,
-Value can be defined as the difference between the
benefits of product and the cost incurred to acquire
that product,
-a value is relative term as a perceived benefit for a
person may not be a benefit for the other,
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-companies today are emphasizing the need of
customer feedback and the liberty for the employees to
contribute towards the development of a product so
that they can provide maximum value with a product,
-courier companies provide the facility of tracing the
parcel online without any additional cost, this is extra
value provided to the customer,
-companies incessantly try to figure out the list add-on
benefits that they can provide based on the taste and
preferences of the customers,
-today marketers use various types of tools like market
research, buyer analysis to figure out what exactly the
customers want from the product,
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