Syllabus:- Introduction, Definitions of market and

marketing, The exchange process, Elements of

marketing concept, Functions of marketing, Old
concept or Product oriented concept, New or
modern or customer oriented concept, marketing
Environment, Techniques used in environment
analysis, characteristics (Micro and Macro),
Marketing to the 21st century customer
 ‘Marketing is the management process that identifies,
anticipates and satisfies customer requirements profitably’

The Chartered Institute of Marketing

 ‘Marketing is a social and managerial process by which
individuals and groups obtain what they want and need
through creating, offering and exchanging products of value
with others’

Kotler 1991
‘Marketing is the human activity directed at satisfying human
needs and wants through an exchange process’

Kotler 1980
*There are at least two parties.
*Each party has something that might be
of value to the other party.
*Each party is capable of communication
and delivery.
*Each party is free to reject the
exchange offer.
*Each party believes it is appropriate or
desirable to deal with the other party
Goods  Places
Services  Properties
Events  Organizations
Experiences  Information
Persons  Ideas
* Consumer markets
* Business markets
* International Markets/Global markets
* Nonprofit/Government markets
*Production Orientation
* --1850s -> 1930s
*Sales Orientation
* -- 1930s ->
*Marketing Orientation
* -- 1960s -> ??
*Consumer Relationship Marketing (CRM)
* -- 1990s -> ??
*Societal Marketing
---2000 - ??
*Focuses on internal capabilities of firm.
*“ Field of Dreams” strategy
*“If we build it, they will come”
*Best used when
*competition is weak
*demand exceeds supply
*generic products competing solely on price
*Problem is that they don’t understand
wants/needs of marketplace.
* Consumers can be satisfied with reasonable quality and
reasonable priced product
* There is fair amount of competition and competing products
are sold with complete knowledge of the products available in
the market
* The manufacturer should maintain availability of sufficient
quantity of product and consistency in quality
* The interest of the consumer is virtually ignored to that of
the producer
* The marketing becomes either product – oriented or
production oriented
* The stress is not on consumption which is the ultimate
objective of industry and commerce
* The marketing process comes to an end as soon as the
products reach the customer.
*People will buy more goods/services if
aggressive sales techniques are used.
*High sales will result in high profits.
*Used with unsought products
* life insurance
* encyclopedias
*Problem is that they don’t understand
wants/needs of marketplace.
*I can sell everything, if I know how to sell
it
* Consumers generally do not waste money in buying
things which are not essential or buying excess
quantities than required
* Consumers prefer to be motivated to buy things by use
of selling efforts by organizations
* Consumers appreciate good selling techniques
* Consumers rating will be more for sales oriented
organizations
 Marketing concept

The social and economic justification for an

organization’s existence is the satisfaction of
customer wants and needs, while meeting
organizational objectives.
*Focusing on customer wants so the
organization can distinguish its products
from competitors’ .
*Integrating all the organization’s activities,
including promotion, to satisfy these
wants.
*Achieving long term goals for the
organization by satisfying customer wants
and needs legally and responsibly.
* Requires:
* Top management leadership
* A customer focus
* Competitor intelligence
* strengths
* weaknesses
* Interfunctional coordination to meet customer
wants/needs and deliver superior values.
* Constraint to Innovation
* Internal disagreement (innovative employees may
express dissatisfaction)
* Organizational constraint (All needs of customer
cannot be satisfied)
* Societal Constraints (excess restrictions)
* Conflicting Objectives
* Organization exists not only to satisfy customer
wants/needs and to meet organizational
objectives, but also to preserve and enhance
individuals’ and society’s long-term best
interests.
* Extends marketing concept to serve one more
customer - society as a whole.
* The selling concept believes that unless
organization puts efforts to create awareness
and interest of the consumer in its products and
makes them inclined positively to buy these
products
* It also believes that products and services
however good in quality and affordable, may not
sell on its own unless this is pushed by selling
vigoursly
* Consumers generally do not spend money in buying
things which are not essential or buying excess
quantities than required
* Consumers prefer to be motivated to buy things by
use of selling efforts by organizations
* Consumers appreciate good selling techniques
* Consumers rating of organization is more for sales
oriented organizations
Starting Point Focus Means Ends

The Marketing Concept

Customer Integrated Profits from
Market
needs marketing satisfied customers

The Selling Concept

Sell and Profits through

Factory Product
Promote it sales volume
 Production/Sales Focus Marketing Focus

*Organization’s needs *Customer’s needs

*Producing/Selling *Satisfying customer
wants/needs
goods/services
*Specific groups of people
*Everybody *Profit through customer
*Profit through max. sales satisfaction
volume *Coordinated mktg.
*Intensive promotion activities (4 p’s)
Orientation Key Ideas

Production Focus on efficiency of internal operations –

if we make it, they will buy it
Sales Focus on aggressive sales techniques and believe
that high sales result in high profits

Marketing Focus on satisfying customer needs and wants

while meeting objectives - if they will buy it, we will
make it
Societal Focus on satisfying customer needs and
wants while enhancing individual and
societal well-being. I.e.-mfg using recyclables
Definition :- Forging long-term partnerships
with customers and contributing to their success
is called relationship marketing.

*Companies benefit from

* repeat sales/referrals that lead to increases
in sales, market share and profits, and
*decreased costs - it’s less expensive to serve
existing customers than attract new ones.
* Customers benefit from:
* stable relationships with suppliers (especially in business-to-
business)
* greater value and satisfaction
* discounts, (frequent flyer programs, shopper clubs, etc.)
* Successful relationship marketers have:
* customer-oriented personnel
* effective training programs
* employees with authority to make decisions and
solve problems
* teamwork
Four Ps Four Cs
 Product  Customer solution

 Price  Customer cost

 Place  Convenience

 Promotion  Communication
 Needs, wants, and  Marketing channels
demands  Supply chain
 Target markets,  Competition
positioning,  Marketing
segmentation environment
 Offerings and brands  Marketing planning
 Value and
satisfaction
The Four P’s
-the “arrow” Price

Promotion

Place

Product
 Social

Natural

Economic

External Technologic
Environmental
Factors Political and Legal

Competitive

Helps identify market opportunities

*All the actors and forces
influencing the
company’s ability to
transact business
effectively with it’s
target market
*Includes:
*Microenvironment - forces
close to the company that
affect its ability to serve its
customers.
*Macroenvironment - larger
societal forces that affect the
whole microenvironment
 Demographic

Company
Cultural Economic

Public Suppliers
Company
Customers
Competitors Natural
Political
Intermediaries

Technological
Company’s Internal Environment- functional areas such
as top management, finance, and manufacturing, etc.

Suppliers - provide the resources needed to produce

goods and services.

Marketing Intermediaries - help the company to

promote, sell, and distribute its goods to final buyers.
Customers - five types of markets that
purchase a company’s goods and services.

Competitors - those who serve a target

market with similar products and services.

Public - any group that perceives itself

having an interest in a company’s ability to
achieve its objectives.
Demographic - monitors population in terms of
age, sex, race, occupation, location and other
statistics.

Economic - factors that affect consumer buying

power and patterns.

Natural - natural resources needed as inputs by

marketers or that are affected by marketing
activities.
* Monopolies legislation
* Environmental protection laws
* Taxation policy
* Employment laws
* Government policy
* Legislation
*Inflation
*Employment
*Disposable income
*Business cycles
*Energy availability and cost
* Demographics
* Distribution of income
* Social mobility
* Lifestyle changes
* Consumerism
* Levels of education
* New discoveries and innovations
* Speed of technology transfer
* Rates of obsolescence
* Internet
* Information technology
Technological - forces that create new
product and market opportunities.

Political - laws, agencies and groups that

influence or limit marketing actions.

Cultural - forces that affect a society’s

basic values, perceptions, preferences, and
behaviors
* Market Segmentation: It is the process of dividing a
market into subsets of consumers with common needs
or characteristics.

* Market Targeting: It is the selection of one or more of

the segments identified for the company to pursue.

* Positioning: It refers to the development of a distinct

image for the product or service in the mind of the
consumer. An image that will differentiate the
offering from competing ones.
 Top
Management

Middle
Management

Front Line People

Customers
 Customers

Front Line People

Middle
Management

Top
Management
* When all the departments of the company work
together to serve the customers interests, the
result is integrated marketing
* The Stated Needs (The customer wants an
expensive car)
* Real Needs (The customer wants low maintenance
expenses)
* Unstated Needs (the customer expects good
service from the dealer)
* Delighted Needs (The customer would like the
dealer to include a gift)
* Secret needs (The customer wants to be seen by
friends as a savvy customer)
* Brand Competition
* Industry Competition
* Form competition
* Generic competition
* Communication Channels :- newspapers, magzines,
radio, television, mail, telephone, billboards,
posters, fliers, CD’s, audiotapes, Internet..

* Dialogue Channels :- e-mails, toll free numbers,

call centers sales,

* Distribution Channels:- warehouses, transportation

vehicles, distributors, wholesales, retailers
* Negative demand :- Keeping the sales away by spending
some cost
* Latent Demand :- Dissatisfaction about the product to
unable to meet customer need
* Overfull Demand :- Demand above the ability to meet the
customer requirement
* Unwholesome Demand:- Undesired demand by customer
such as drugs, handguns, alcohol X-rated moveis
* Explain Societal Marketing
* Differentiate between selling concept & marketing
concept
* Describe 4P’s of marketing
* How Production Orientation is different from sales
orientation
* Discuss different orientation under which marketing
companies functions
* Explain functions of marketing
* Explain Latent demand & overfull demand