MARKETING BASICS

What is Marketing??

Selling? Advertising? Promotions? Making products available in stores? Maintaining inventories?

All of the above, plus much more!

The big question

What is Marketing?
The Chartered Institute of Marketing
define marketing as

The management process

responsible for identifying , anticipating and satisfying customer requirements profitability

 Acc to American Marketing Association The performance of business activities

that direct the flow of goods and services through producers to consumers or users. This is a product oriented definition

The weaknesses of the definition

Lack of customer orientation Lack of after sales services Focus on Place aspect of the various Ps

Customer oriented Definition

Cundiff and Still define Marketing as Marketing is the process by which products are matched with the markets and through which transfers of ownership are affected

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

KOTLERS DEFINITION
A social and managerial process by which individuals and groups obtain what they need and want through creating, offering and exchanging products of value with each other.

Marketing = ?
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.

DEFINITION OF MARKETING MANAGEMENT

Marketing Management can be defined as
Art and science of choosing the target markets and getting, keeping, and growing the customers though creating, delivering and communicating superior customer values

Marketing = ?

Marketing is the sum of all activities that take you to a sales outlet. After that sales takes over. Marketing is all about creating a pull, sales is all about push. Marketing is all about managing the four Ps
product price place promotion

The 4 Ps & 4Cs

Marketing Mix Product Customer Solution Convenience Place

Price Customer Cost

Promotion Communication

Difference Between - Sales & Marketing ?

Sales
trying to get the customer to want what the company produces

Marketing
trying to get the company produce what the customer wants

Scope What do we market

Goods Services Events Experiences Personalities Place Organizations Properties Information Ideas and concepts

Goods- e.g. physical goods Services- e.g. Banks, restaurants, doctors Experiences- e.g. visit to walt Disney Events- e.g. Olympics, World Cup Cricket Persons- e.g. celebrities Places- e.g. tourist places and the competition among them for attracting tourists Properties- e.g. Real Estate Organizations- e.g. Philips, Videocon Information- e.g. magazines, software Ideas- e.g. Save Petrol, punch lines etc.

Core Concepts of Marketing

Based on :

Needs, Wants, Desires / demand Products, Utility, Value & Satisfaction

Exchange, Transactions & Relationships

Markets, Marketing & Marketers.

Important Marketing definitions

NEED Is a state of felt deprivation of some basic satisfaction

WANTS
Are specific satisfiers of these deeper needs

DEMANDS
Are wants for specific products that are backed by the ability and willingness to buy them

 Market segments can be identified

by examining the demographic, psychographic and behavioral differences among the buyers Marketer then decides which segment provides the maximum opportunityknown as Target markets

 Market place- is physical as when one

goes shopping in a store Market space is digital as when one goes for shopping on internet Meta market- a cluster of complementary products and services that are closely related in the minds of the consumers and are spread across diverse set of industries.

 OFFERING-The intangible value

proposition( A set of benefits which are offered to customers to satisfy the needs) is made physical by an offering, can be a combination of products, services information etc. BRAND- is an offering from a known source. BRAND IMAGE- An association developed with the brand of a product by the customers.

In order to understand Marketing let us begin with the Marketing Triangle

Customers

Company

Competition

Who is a Customer ??
CUSTOMER IS . . . . .
Anyone who is in the market looking at a product / service for attention, acquisition, use or consumption that satisfies a want or a need

Customer
CUSTOMER has needs, wants, demands and

desires Understanding these needs is starting point of the entire marketing These needs, wants arise within a framework Understanding both the needs is the starting point of a long term relationship

 Value- ratio between what customers get

and what he gives value= benefits/costs Value can be raised by
Raising benefits Reducing costs

Customer value triad- quality, service

and price

Customer looks for Value

Value Benefit Cost
= Benefit / Cost
= Functional Benefit + Emotional Benefit

= Monetary Cost + Time Cost + Energy Cost + Psychic Cost

Customers - Problem Solution

As a priority , we must bring to our customers
WHAT THEY NEED

We must be in a position to UNDERSTAND their

problems

Or in a new situation to give them a chance to

AVOID the problems

COMPETITION

 Includes all the actual and potential rival

offerings and substitutes that a buyer might consider following are the levels of competition

Brand competition- co. sees its competitors as other companies offering similar products and services Industry competition- companies making the same class of products Form competition- companies manufacturing the products supplying same service e.g. transport- car & bike Generic competition- all the companies that compete for the same consumer dollars e.g. durables, vacations , home

MARKETING ENVIRONMENT
THE ENVIRONMENT IN WHICH THE
MARKET OPERATES
TASK ENVIRONMENT- includes the immediate actors involved in producing , distributing and promoting an offering BROAD ENVIRONMENT- Includes six components-demographic, economic, natural, technological, political legal, social cultural environment They have a major impact on the actors of the
task environment.

MARKETING ENVIRONMENT