Session-1 & 2

What is Marketing?

Marketing is identifying & meeting need

profitably

What is Marketing
Management?

arketing management is the art and scien

choosing target markets and getting, keeping
d growing customers through creating,
ivering, and communicating superior custom
lue.

What is Marketed?
Goods
Goods
Services
Services
Events
Events &
& Experiences
Experiences
Persons
Persons
Places
Places &
& Properties
Properties
Organizations
Organizations
Information
Information
Ideas
Ideas

Needs, Wants and

Demands
Needs

are basic human

requirements

Wants

are needs directed to specific

objects/services that might satisfy
the need

Demands

are wants for specific

products backed by an ability to pay

Needs

Stated Needs

Real Needs

Unstated Needs

Delight Needs

Secret Needs

Demand States
Negative

Nonexistent

Declining

Full

Latent

Irregular

Overfull

Unwholesome

Understand Marketing by
Checking What does it do

Meeting Human/Customer Needs

Marketing must know
Who are our customers?
What are their needs?
What must we do to meet their needs?

Meeting latent and future needs

Marketing searches/spots/visualises the latent
and future needs of customers.

Meeting needs at a profit

Marketing meets customer needs at a profit.

Selling/Marketing
Selling:

Needs of Seller

Marketing:

Needs of Buyers

Push/Pull
Pull

: Long TermCustomer
perspective

Push

: Short TermSelling
perspective

A Simple Marketing System

Exchange
Get

something (product /service)

by offering something in return.
Eg. kind (barter) or money (value
)

Exchange

is a value creating
process because it leaves both
parties better off
(win win situation)

Elements of Exchange
At
At Least
Least Two
Two
Parties
Parties

Necessary
Necessary
Conditions
Conditions
for
for Exchange
Exchange

Desire
Desire to
to Deal
Deal
With
With Other
Other Party
Party

Something
Something of
of
Value
Value
Ability
Ability to
to
Communicate
Communicate
Offer
Offer
Freedom
Freedom to
to
Accept
Accept or
or Reject
Reject

Market
A market is all potential customers
who share common needs and wants
and who have the ability and
willingness to buy the product.

Markets
Marketplaces

: Physical

Marketspaces

: Digital

Metamarkets

: Gaffar Market for

mobiles

Target Marketing
Target marketing is focusing all
marketing mix decisions on the
specific group of people you want to
reach

Value & Satisfaction

Value is the customers estimate of
the Products capacity to satisfy a set
of goals
Value is the ratio between what the
customer gets and what he gives
V=B/C where V: Value, B: Benefit
& C: Cost

Value and Satisfaction

Benefits = Functional Benefits +

Emotional
benefits

Costs = Monetary costs + Time +

Energy +
Psychic costs

What is Perceived
Customer Value?
Product
Product value
value
Services
Services value
value
Personnel
Personnel value
value

Total
Total
customer
customer
benefit
benefit

Image
Image value
value
Monetary
Monetary cost
cost
Time
Time cost
cost
Energy
Energy cost
cost

Psychic
Psychic cost
cost

Total
Total
customer
customer
cost
cost

Customer
Customer
delivered
delivered
value
value

Value and Satisfaction

Three Vs Approach to
Marketing
Define
Define the
the value
value segment
segment

Define
Define the
the value
value proposition
proposition

Define
Define the
the value
value network
network

Company Orientations

Production

Product

Selling

Marketing

Societal Marketing
Concept
Marketing Concept (+) Societys well
being.
Balancing of following three
considerations while setting
marketing policies :
-Customers want satisfaction
-Societys want well being

Key Customer Markets

Consumer Markets

Business Markets

Global Markets

Nonprofit/ Government Markets

The 4 Ps of Marketing
Product

good,
service or idea
that offers a
bundle of
tangible and
intangible
attributes to
satisfy the
consumer

Price

what the
product is
exchanged for
Place all
aspects of
getting products
to the consumer
in the right
location at the

The Four Ps

Product
A

product is any offering catered to

satisfy needs and wants of consumers.

brand is when the product is from a

known source.

SIVA

Solution: How appropriate is the solution to

the customers problem/need

Information: Does the customer know about

the solution, and if so how, from whom , do
they know enough to let them make a buying
decision

Value: Does the customer know the value of

the transaction, what it will cost, what are the
benefits, what might they have to sacrifice,
what will be their reward?

Access: Where can the customer find the

solution. How easily/locally/remotely can they
buy it and take delivery.

Expanded Marketing Mix

for Services
PEOPLE

PHYSICAL
EVIDENCE

PROCESS

Employees

Facility design

Flow of activities

Customers

Equipment

Number of steps

Communicating
culture and values

Signage

Level of customer
involvement

Employee research

Employee dress
Other tangibles

Marketing Channels
Marketing

channels are used to

reach the target segment.

Communication

channels

-Advertising
Distribution

direct sales

channels trade,

The marketplace isnt what it

used to be
Information
Information technology
technology
Globalization
Globalization
Deregulation
Deregulation
Privatization
Privatization
Competition
Competition
Convergence
Convergence
Consumer
Consumer resistance
resistance
Retail
Retail transformation
transformation

New Consumer
Capabilities
A

substantial increase in buying

power
A greater variety of available goods
and services
A great amount of information
about practically anything
Greater ease in interacting and
placing and receiving orders
An ability to compare notes on
products and services
An amplified voice to influence

Marketing Management
Tasks
Develop

market strategies and

plans
Capture marketing insights
Connect with customers
Build strong brands
Shape market offerings
Deliver value
Communicate value
Create long-term growth