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! In marketing, the term market refers to the
group of consumers or organizations that is
interested in the product, has the resources
to purchase the product, and is permitted by
law and other regulations to acquire the
product.
! The market definition begins with the total
population and progressively narrows as
shown in the following diagram.

! The foundation of marketing is exchange, in which
one party provides to another party something of
value in return for something else of value.
! In a broad sense, marketing consists of all activities
designed to generate or facilitate an exchange
intended to satisfy human needs.
! In a business context, marketing is a total system of
business activities designed to plan, price, promote
and distribute products to target market in order to
achieve organizational objectives.


! àarketing is everywhere.
! Formally or informally, people and organizations
engage in a vast number of activities that could be
called marketing.
! Good marketing is no accident, but a result of
careful planning and execution.
! àarketing is both an "art" and a "science".
! There is constant tension between the formulated
side of marketing and the creative side.
£
! The Chartered Institute of àarketing defines
àarketing as - ³àarketing is the management
process for identifying, anticipating & satisfying
customer requirements profitably.´
! American àarketing Association suggests that
marketing is "the process of planning and executing
the pricing, promotion, and distribution of goods,
ideas, and services to create exchanges that satisfy
individual and organizational goals."
! àarketing is the economic process by which goods
and services are exchanged between the producer
and the consumer and their values determined in
terms of money prices.
! àarketing originates with the recognition of a need
on the part of a consumer and terminates with the
satisfaction of that need by the delivery of a usable
product at the right time, at the right place and at an
acceptable price.
! àarketing is a viewpoint, which looks at the entire
business process as a highly integrated effort to
discover, create, arouse and satisfy consumer
needs.
 àarketing is

A set of activities including

- A Philosophy
-Product
- A Attitude
Plus -Pricing
- A Perspective
-Promotion
- A àanagement Orientation
-Distribution

!   !
 "
!#.
£
A. u
Physical goods constitute the bulk of production and
marketing efforts.
 
 A growing portion of business activities are focused
on the production of services.
C.
 àarketers promote time-based events such as trade
shows, artistic performances, etc.
D.   By orchestrating several services and goods, a
firm can create and market experiences such as Walt Disney
World's àagic Kingdom.
E.    Celebrity marketing is a major business.
F.  Cities, states, regions and whole nations compete
actively to attract tourists, factories, and new residents.
G.    Are intangible rights of ownership of either real
property (real estate) or financial property (stocks and bonds).
£  $
! $
! eeds are the basic human requirements. People need
food, air, water, clothing & shelter to survive. People also
have needs for recreation, education and entertainment.
! E.g Hunger food
! Human need is a state of felt deprivation of some basic
satisfaction. Wants are desires for specific satisfiers of
these deeper needs. Demands are wants for specific
products that are bagged by an ability and willingness to
buy them.
! àarketers do not create the needs. They can influence
the demand by making the product appropriate,
attractive, affordable and easily available to target
customers.
%&!
! According to Abraham àaslow¶s need
hierarchy, all the human needs can be
categorized as shown in the diagram
! £$
! The needs become wants they are directed to
specific objects that might satisfy the needs.
Eg: àercedes

³eeds Pre-exists´ (can¶t be created)

!  $
! Demands are wants for specific products that are
bagged by an ability and willingness to buy them.


# 
 
!
# It is one of the core concepts of marketing. It is the
process of obtaining a desired product from someone by offering
something in return. There are five conditions that needs to be
satisfied:
* 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 & delivery
* Each party is free to accept or reject the exchange offer
* Each party believes it is appropriate or desirable to deal with the
other party.

!  - ³Set of all actual & potential buyers of a product or

service´. They share a particular need or want that can be
satisfied through exchange relationships.
! àarketing  ³àanaging markets to bring about
profitable exchange relationships by creating value
& satisfying needs & wants´
! Core àarketing Activities: Product development,
research, communication, distribution, pricing &
service.
!  ' ³Art & science of
choosing target markets & building profitable
relationships with them´. Involves getting, keeping &
growing customers through creating, delivering and
communicating superior customer value.

(

! The marketing concept is the philosophy that
firms should analyze the needs of their
customers and then make decisions to satisfy
those needs, better than the competition.
! D$
The idea that consumers will favor products are available & highly
affordable.
! D
The idea that consumers will favor products that offers the most
quality, performance & features & that the organizations should
therefore devotes its energy to making continues product
improvement.
!

The idea that consumers will not buy enough of organizations
product unless the organization undertakes a large scale selling &
promotion efforts.
! 
The marketing management philosophy that hold that achiving
organizational goals depends on determining the needs & wants of
target market & delivering the desired satisfaction more effectively &
efficiently than competitors can do.
D
! The production concept was the idea that a
firm should focus on those products that it
could produce most efficiently and that the
creation of a supply of low-cost products
would in and of itself create the demand for
the products.
The Sales Concept
! Under sales concept companies not only would
produce the products, but also would try to convince
customers to buy them through advertising and
personal selling.
! The sales concept paid little attention to whether the
product actually was needed; the goal simply was to
beat the competition to the sale with little regard to
customer satisfaction.
! àarketing was a function that was performed after
the product was developed and produced, and
many people came to associate marketing with hard
selling. Even today, many people use the word
"marketing" when they really mean sales.

! After World War II, the variety of products increased and
hard selling no longer could be relied upon to generate
sales.
! With increased discretionary income, customers could
afford to be selective and buy only those products that
precisely met their changing needs, and these needs were
not immediately obvious.
! The marketing concept relies upon marketing research to
define market segments, their size, and their needs.
! To satisfy those needs, the marketing team makes
decisions about the controllable parameters of the
marketing mix.
&
! Holistic marketing can be seen as the
development, design and implementation of
marketing program, processes and activities
that recognize the breath and
interdependencies of their efforts.
! Holistic marketing recognizes that "everything
matters" with marketing²the consumer,
employees, other companies, competition
and society as a whole.
)£ 
! àarketers must try to understand the target market's needs,
wants and demands.
- eeds are basic human desires.
- Wants are shaped by one's society.
- Demands are wants for specific products backed by an ability to
pay.
- àarketers do not create needs-needs pre-exist marketers.
- àarketers, along with society influence wants.
There are five types of needs that marketers must understand:
! a. Stated needs
! b. Real needs
! c. Unstated needs
! d. Delight needs
! e. Secret needs
†

- The offering will be successful if it delivers value and satisfaction
to the target buyer.
- The buyer chooses between different offerings based on which is
perceived to deliver the most value.
- Value reflects the perceived tangible benefits and costs to
customers.
- Value can be a combination of quality, service and prices called
the customer value triad.
- Value is a central marketing concept.
- àarketing can be seen as the identification, creation,
communication, delivery and monitoring of customer value.
! Satisfaction reflects a person's comparative judgment resulting
from a product's perceived performance (or outcome) in relation
to his or her expectations.
 
! àarketing aims at building relationship with the customers and
satisfy their needs and in the process meet the organizational
goals.
! It plays a vital role in meeting the firms objective. It provides
several benefits to the consumers by
1. Developing and innovative product.
2. Raising competition that in turn lower down the competition
3. Carrying promotional technique
4. Providing best services to satisfy customer.
5. Increase demand of the product.
6. Provides value to both customers and marketers.

! The marketers¶ job is to sell the benefit or services built in to
physical products rather than just describe their physical features.

! àarketers aims to meet the marketing objective of the firm. They

play a significant role in the world of àarketing.

"D( $àarketers develop the product according to

the needs and wants of the customers. They keep modifying the
product to provide best product to the consumer

*"$àarketers segment the markets and search for

prospect and target them to identify the marketing needs of the
target consumer

+",$To choose the most economic distribution channel that

can create time utility and place utility
â"D $Communicating the important information
to the target market. Build a relationship with the
customers that holds value to them

-"D$àarketers set the cost of the product to be

paid by the buyer.

."
($Provide best services to the consumer, that

can make them feel wanted and retain them as loyal
customers
àarketing myopia
! Sellers who concentrate their thinking on the
physical product instead of the customers
need are said to suffer from µmarketing
myopia¶.
!
! àarkets can be analyzed via the itself, or /
 , or both. The most common distinction is between
  and 
 markets.

!  
Consumer markets are the markets for products and services
bought by Individuals for their own or family use. Goods bought
in consumer markets can be categorized in several ways

! u/ ( 01u %23

Fast-moving consumer goods are those that sell in high volumes,
with low unit value, and have fast consumer repurchase. Good
examples include soaps, hair oils, newspapers etc.

!  ,: These have low volume but high unit

value. Consumer durables are often further divided into:
£ 
(e.g. fridge-freezers; cookers; dishwashers;
microwaves)
 
(e.g. DVD players; games consoles; personal
computers)
!
$Soft goods are similar to consumer durables, except
that they wear out more quickly and therefore have a shorter
replacement cycle Examples include clothes, shoes, etc.

!
((e.g. hairdressing, dentists, childcare)

! 
Industrial markets involve the sale of goods between businesses.
These are goods that are not aimed directly at consumers.
Industrial markets include Selling finished goods. Examples
include office furniture, computer systems, etc.

!
  

Examples include steel, coal, gas, timber
!
(,
Examples include waste disposal, security, accounting & legal
services

! Analyze a company, which is not only
marketing oriented but also societal
marketing oriented.
! Explain how it is aiming to fulfilling the social
needs of the society.

†

! Selling emphasis on the needs of seller not buyer. So the aim is
to sell what a seller produce not what a customer wants whereas
marketing emphasis on the needs of the customers and aim is to
satisfy the customers.
! Selling concentrates on seller¶s needs whereas marketing
concentrates on buyer¶s needs.
! Selling view customer as the last link, it produces the product first
and then decides to sell the product whereas marketing view the
customers as the first link, it identifies the customer¶s needs and
wants and then produce the product that can satisfy them.
! Selling consider seller as the king and marketing considers
customer as the king.
! Selling emphasis on sales maximization and marketing emphasis
on profit maximization.
!

1. Emphasis is on the
product
2. Company àanufactures
the product first
3. àanagement is sales
volume oriented
4. Planning is short-run-
oriented in terms of today¶s
products and markets
5. Stresses needs of seller
! 
1. Emphasis on consumer
needs wants
2. Company first determines
customers needs and wants
and then decides out how to
deliver a product to satisfy
these wants
3. àanagement is profit
oriented
4. Planning is long-run-
oriented in today¶s products
and terms of new products,
tomorrow¶s markets and
future growth
5. Stresses needs and wants
of buyers
6. Views business as a 6. Views business as
good producing consumer producing
process process satisfying
process
7. Emphasis on innovation on
7. Emphasis on staying every existing technology and
with existing reducing every sphere, on
technology and providing better costs value
to the customer by adopting a
reducing costs superior technology
8. All departments of the
8. Different departments business integrated
work as in a highly manner, the sole
separate water tight purpose being
compartments generation of
consumer satisfaction
ƒ. Cost determines Price ƒ. Consumer determine
10. Selling views price, price determines
customer as a last link cost
in business 10. àarketing views the
customer last link in
business as the very
purpose of the
business