Markets

Economists describe a market as a collection of buyers and sellers who transact over a
particular product or product class. Marketers use the term market to cover various
groups of customers. They view the sellers as forming the industry and the buyers as
forming the market.
They talk about need markets, product markets, demographic markets, and geographic
markets.
MARKETPLACES, MARKETSPACES, AND METAMARKETS
The marketplace is physical; the marketspace is digital.
Mohan Sawhney has proposed the concept of metamarkets to describe a cluster of
complementary products and services that are closely related in the minds of consumers
but are spread across a diverse set of industries.
An example is the automobile industry that consists of physical locations (car dealers) and
marketspace locations (Internet locations) that
WHAT IS MARKETING
Marketing is the process of planning and executing the conception, pricing, promotion, and
distribution of ideas, goods, services to create exchanges that satisfy individual and
organizational goals
American Marketing Association
Marketing is the management process that identifies, anticipates and satisfies customer
requirements profitably
The Chartered Institute of Marketing
The right product, in the right place, at the right time, and at the right price
Adcock et al
Marketing is the human activity directed at satisfying human needs and wants through an
exchange process
Marketing is the delivery of customer satisfaction at a profit.
Marketing deals with identifying and meeting human and social needs. One of the shortest
definitions of marketing is meeting needs profitably.
The American Marketing Association offers the following formal definition: Marketing is
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.

Dr. T M KUTHUBUDEEN

Marketing management is the art and science of choosing target markets and getting,
keeping, and growing customers through creating, delivering, and communicating superior
customer value.
A social definition of marketing is that marketing is a societal process by which
individuals and groups obtain what they need and want through creating, offering, and
freely exchanging products and services of value with others.
WHAT DO WE MARKET
Goods
Services
Events
Experiences
Personalities
Place
Organizations
Properties
Information
Ideas and Concepts
What Is Marketed?
Ten types of entities:
1. Goods: Physical goods constitute the bulk of production and marketing efforts.
2. Services: The U.S. economy today consists of a 7030 services to goods mix.
3. Events: Time-based events such as trade shows, artistic performances, and the
Olympics.
4. Experiences: By orchestrating several services and goods (Walt Disney Worlds
Magic Kingdom).
5. Persons: Celebrity marketing is a major business.
6. Places: Cities, states, regions, and whole nations compete actively (attract tourists,
FDI, immigrants)
7. Properties: Are intangible rights of ownership (real property: real estate) or
(financial property: stocks and bonds).
8. Organizations: Actively work to build a strong, favorable, and unique image in the
minds.
9. Information: Can be produced and marketed as a product. (Schools, universities)
Dr. T M KUTHUBUDEEN

10. Ideas: Every market offering includes a basic idea.

How Business and Marketing Are Changing

1. Changing technology.
2. Globalization.
3. Deregulation.
4. Privatization.
5. Customer empowerment: need higher quality, customization, convenience, less brand
loyalty.
6. Customization: consumers design their own goods, less inventory, personalize services
relations.
7. Heightened competition.
8. Industry convergence: Opportunities in industry intersections (nutriceuticals,
cosmoneuticals)
9. Retail transformation: giant retailers, catalogs, home shopping TV, e-commerce,
experience
10. Disintermediation: Amazon, eBay, brick and click, pure click.
consumers use in deciding what car to purchase.
COMPANY ORIENTATIONS TOWARD THE MARKETPLACE
1) Production Concept: The production concept holds that consumers will prefer products
that are widely available and inexpensive. Focus on high production efficiency, low cost,
mass distribution (ex: Haier)
2) Product Concept: The product concept holds that consumers will favor those products
that offer the most quality, performance, or innovative features. Focus on R&D,
improvement and quality.
3) Selling Concept: The selling concept holds that consumers and businesses, will ordinarily
not buy enough of the organizations products, therefore, the organization must undertake
aggressive selling and promotion effort. Focus on sellers needs (ex: encyclopedias,
insurance)

Dr. T M KUTHUBUDEEN

4) Marketing Concept: The marketing concept holds that the key to achieving
organizational goals consists of the company being more effective than competitors in
creating, delivering, and communicating superior customer value to its chosen target
markets. Focus on customer needs (gardening not hunting)
1. Reactive market orientationunderstanding and meeting consumers expressed needs.
2. Proactive marketing orientationresearching or imagining latent consumers needs
through a probe-and-learn process. Companies that practice both reactive and proactive
marketing orientation are implementing a total market orientation.
5) Holistic Marketing Concept: Holistic marketing can be seen as the development, design,
and implementation of marketing programs, processes, and activities that recognizes the
breadth and interdependencies of their efforts. Holistic marketing recognizes that
everything matters with marketingthe consumer, employees, other companies,
competition, as well as society as a whole.
a) Relationship Marketing
Relationship marketing has the aim of building mutually satisfying long-term relationships
with key parties (customers, suppliers, distributors, and other marketing partners.)
Relationship marketing builds strong economic, technical, and social ties among the
parties.
Marketing must not only do customer relationship management (CRM) but also
partnership relationship management (PRM).
Four key constituents for marketing are:
a. Customers.
b. Employees.
c. Marketing partners (channel partners).
d. Members of the financial community.
The ultimate outcome of relationship marketing is the building of a unique company asset
called a marketing network. A marketing network consists of the company and its
supporting stakeholders (customers, suppliers, distributors, retailers, ad agencies,
university scientists, and others) with whom it has built mutually profitable business
relationships.
b) Integrated Marketing
The marketers task is to devise marketing activities and assemble fully integrated
marketing programs to create, communicate, and deliver value for consumers. The 4Ps of
marketing: product, price, place, and promotion.
Figure 1.4 shows the particular marketing variables under each P.
Marketingmix decisions: must be made for influencing the trade channels as well as the
final consumers.
Robert Lauterborn suggests that the sellers 4Ps correspond to the customers 4Cs:
4Ps 4Cs
Product ------- Customer solution
Dr. T M KUTHUBUDEEN

Price ----------- Customer cost

Place ------------Convenience
Promotion -----Communication
Two key themes of integrated marketing are:
1) Many different marketing activities are employed to communicate and deliver value.
2) All marketing activities are coordinated to maximize their joint efforts.
c) Internal Marketing
Holistic marketing incorporates internal marketing, ensuring that everyone in the
organization embraces appropriate marketing principles. Internal marketing must take
place on two levels:
At one level, the various marketing functions (sales force, advertising, customer services,
product management, and marketing research) must work together.
Secondly, marketing must be embraced by the other departments they must think
customer. Marketing is not a department so much as a company orientation.
d) Social Responsible Marketing
Holistic marketing incorporates social responsibility marketing and understanding broader
concerns, and the ethical, environmental, legal, and social context of marketing activities
and programs.

Dr. T M KUTHUBUDEEN