INTRODUCTION TO MARKETING

DR. RITU SINHA

LEARNING OBJECTIVES

▪ Importance of Marketing in Business World

▪ Define marketing and outline the steps in the marketing process
▪ Understanding the marketplace and customers
▪ Understanding value for customers and capturing value from customers in
return.

▪ Identifying major trends and forces that are changing the marketing
landscape in this age of relationships.
IS MARKETING FOR EVERYBODY?
MARKETING IS FOR EVERYBODY

•Marketing is an ancient art which is becoming

an omnipresent entity.
•Business = Marketing
•Marketing is something companies do, and it
is also a characteristic of our society. “It is
both a set of activities performed by
organizations, and a social process”
IMPORTANCE OF MARKETING

• Marketing is a core business discipline. Acc. To Peter Drucker,

Business has just two basic functions: Marketing and
Innovation.
• The study of marketing is important to the basics of running a
business, big or small

• When you buy a product - the cost of marketing amounts to 40 ~

60% of the total.
eg. If we buy shoes for $70, $35 of that 70 has been spent on
marketing (including advertising, market research, development
etc.)
Ajanta Shoes Is 'Ready To Step Out' As It Expands Marketing
Footprint

The West Bengal based brand

is branching out to new
marketing in the country, and
has launched a new campaign
conceptualised by 82.5
Communications...

https://www.ajantashoes.com/discou
nted-products
https://brandequity.economictimes.indiatimes.com/news/advertising/ajanta-shoes-is-ready-to-step-
out-as-it-expands-marketing-footprint/85063709
 What Does Marketing Do?

“Marketing is about knowing ■ Analyzing the needs of the people

who your customers are, ■ Trying to guess what types of
understanding what they need products they want
and telling them how you can ■ Meeting latent and future Needs
fulfil those needs in a way ■ Meetings needs at Profit
that encourages them to buy ■ Being empathetic to Customer
from your business.”
What Does Marketing Do For Business?

• Raising Brand Awareness

• Generating Traffic
• Increasing Revenue
• Building Trust in Your Brand
• Tracking Your Metrics
PERSPECTIVES ON MARKETING

•Exchange Concept
•Production Concept
•Product Concept
• Marketing Myopia
•Sales Concept
•Marketing Concept
MARKETING AS A EXCHANGE PROCESS

• Marketing is a process of exchange between the buyer

and seller

• It means offering something and getting something in

return.

• Transaction takes place as per agreed upon conditions.

• Marketing emphasises on the mutual satisfaction of
both—the buyer and the seller.
• Development of a long-term relationship between them.
PRODUCTION CONCEPT

• This concept believes that business can be managed by the maximization of

production and the resultant lower unit cost. They assume that the lower cost
and price will automatically lure the customers.
PRODUCT CONCEPT

• This concept believes in excellent product and tries to achieve business success
through product attributes. These attributes could relate to new product,
improved product or ideally designed and engineered product.
MARKETING MYOPIA

• T. Levitt explained this term as ‘ a colored or crooked perception of marketing

and a short sightedness of business.’ This concept go hand in hand with Product
concept. He believes that by giving excessive emphasis to the product, the
firms almost tend to forget that the product is merely a means for satisfying a
particular need of the customers.
SALES CONCEPT

• These firms believes that marketing’s major concern is to aggressively push the
products and lure the customers to buy the offered product. Personal selling,
heavy advertising, large scale promotion and heavy price discounts are tools
of Sales concept.
MARKETING DEFINITION TIMELINE

According to AMA, the original definition of marketing is dated back to 1935,

when the NAMT (National Association of Marketing Teachers) conceived the
original definition.

• 1935
Marketing is the performance of business activities that direct the flow of goods
and services from producers to consumers.
MARKETING DEFINITION TIMELINE

• 1985
Marketing is the process of planning an executing the conception,
pricing, promotion and distribution of ideas, goods and services to
create exchanges that satisfy individual and organizational needs.
MARKETING DEFINITION TIMELINE
• 2004

•Marketing is an organizational function and set

of processes for creating, communicating and
delivering value to the customers and for
managing customer relationships in ways that
benefit the organization and stakeholders.
MARKETING DEFINITION TIMELINE

• 2007

•Marketing is the activity, set of institutions, and processes

for creating, communicating, delivering and exchanging
offerings that have value for customers, clients, partners
and society at large.
MARKETING DEFINITION TIMELINE

• 2018
• Marketing is a process by which companies create value for
customers and build strong customer relationships in order to
capture value from customers in return.
Kotler and Armstrong (2018)
VALUE

• Value has many different meanings. It can be price (what is the value of this
car?), benefit (the value I got from this car), worth of something. The dictionary
meaning includes the importance, worth, or usefulness of something. Customer
Value is the perception of what a product or service is worth to a customer
versus the possible alternatives.
Customer Value is Benefits - Cost
( CV= B-C )
CONCEPTS AND TERMS
The Needs, Wants & Demands of a Customer-

• Needs are basic human requirements, wants are needs

directed to a product while demand is want accompanied
by buyer’s ability to pay.
Markets, Market Place, Virtual & Meta Markets

• Market is a set of existing & potential buyers for a

defined product or service.Limits of the market are often
defined by geography and is invariably time specific.

• Market place is a place where one goes for shopping.

• Virtual market is digital in nature.

 CONCEPTS AND TERMS

•Meta Markets
• The convergence of suppliers of all complementary products
and services that are closely related to a product in consumers
mind. For example, when a consumer buys a house, he needs
finance, furnishings, household goods ,interior designing, a
construction firm and a dealer. when all come together, a meta
market is created.

•The crux of Marketing Process is the identification and

serving of consumer needs with profits.
DEFINITION OF BUSINESS
• Def. with Product focus • Def. with Need Focus

• Railways, Bus Service • Transportation

• Movies, TV, audio/video CD • Entertainment
• Beverages, Fruit Drinks • Nutrition
• Photostat & Fax Machines • Office productivity
• Fairness Cream, Cold Cream • Beauty
• Greeting cards, gifts
• Social Satisfaction
DIFFERENCE BETWEEN SELLING AND MARKETING

• Selling • Marketing

• Selling starts with seller • Marketing starts with buyers.

• Emphasis is on saleable surplus available
• Emphasis is on identification of a
with the corporation.
customer need/market
opportunity to convert customer
needs into products.

• Company manufactures the product first

and then decides to sell it • Company first determines customers needs
and wants and then decides on how to
deliver a product to satisfy these wants

24
 DIFFERENCE BETWEEN SELLING AND
MARKETING
• Selling • Marketing

• Management is sales • Management is profit

volume oriented oriented
• Views business as a goods producing • Views business as a customer
process satisfying process.

• Emphasis on exchange concept. • Emphasis on value satisfaction

DIFFERENCE BETWEEN SELLING AND MARKETING

• Selling • Marketing
• Emphasis is on staying with existing • Emphasis is on innovation in every sphere,
technology and reducing costs on providing better value to the customer
by adopting a superior technology

• All departments of the business operate

in an integrated manner, the sole
• Different departments work in highly purpose being generation of consumer
separate water tight compartments satisfaction.

• Planning is long-run-oriented, in terms of

• Planning is short-run-oriented, in terms of new products, tomorrow’s markets and
today’s products and markets future growth

26
AIM OF MARKETING

• The aim of marketing is to make selling

superfluous.

• This essentially means that the marketers do

not have to do much of selling, if they are able
to identify unfulfilled needs of customers and
satisfy them
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WHAT IS MARKETED?

• Goods
• Services
• Events
• Experiences
• Persons
• Places
• Properties
• Organizations
• Information
• Ideas 28
 SECRETS OF MARKET DRIVEN
ORGANIZATIONS
Market driven organizations adopts strategies like
▪Innovation
▪Quality of products and services

▪Global competitiveness
▪Customer centric product design
▪Differentiated products
▪Product perceived as good value for money
▪Opportunity to customer to individualize the offer
ROLE OF MARKETING
Customer acquisition and retention
The biggest challenge was to expand the reach
and thereby provide access to customers across
the country.
Data mining technology to be used.
Empower the frontline staff to resolve customer
problems.
Customer to be delighted with the experience.
Customer complaints to be handled proactively.
Analyse factors leading to customer attrition.
TRACKING COMPETITION
Create a differentiation in the product or service.

Create a sustainable and difficult to imitate scalable

business model.
Preempting competition.

The goal of marketing plan and strategy is to position

the brand at the top of the mind.
Integration of technology in the marketing plan.

Data mining, warehousing and CRM needs to be

integrated
BUYER’S POINT OF VIEW

• Four Ps • Four Cs

• Product • Customer solution

• Price • Customer cost

• Place • Convenience

• Promotion • Communication

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THE CHANGING MARKETING LANDSCAPE
Digital and social media marketing involves using digital marketing tools
such as web sites, social media, mobile ads and apps, online videos, e-mail,
and blogs that engage consumers anywhere, at any time, via their digital
devices.
SOME FOOD FOR THOUGHT
• Car sales are going down... but Ola / Uber are rising.
• Restaurants are going empty... but home delivery is rising
• Traders are struggling but online market sites are breaking all
records in sales.
• Old commission based businesses are complaining... but online
services, at low cost, are finding takers.
• Cell phone bills have reduced & internet penetration is increasing.
• Stable (read "Government Jobs") are dwindling but "Start up" jobs
offering equity & flexible work time are expanding.

• Is Economy struggling... Are Business models changing?

ECOLOGICAL SENSITIVITY

“Turning Green” is a new mantra.

Delhi Public Transport is an outstanding example.

Hotels like Leela, Orchid and Taj also lead the way.
EXPANDING THE HORIZONS OF MARKETING TO
NON-PROFIT & SOCIAL CAUSES

•Preservation of environment.
•Acceptance of a girl child as equal to that of a male child.
•Gender bias
•Avoid usage of plastics which are likely to damage environment
•Avoid or discontinue risky practices like, smoking, drug abuse, or unsafe
sex
•Assist police in controlling the crime in neighbourhood etc.
Cause marketing can also help create or change public policy
HINDUSTAN UNILEVER LIMITED

•Hindustan Unilever Limited (HUL) is India’s largest Fast

Moving Consumer Goods (FMCG) company. Currently, HUL
markets a host of products in India and abroad, with
about 100 distinct brands. Of these, around 30 core
brands contribute to bulk of the company’s sales.
HINDUSTAN UNILEVER LIMITED

• HLL is implementing ‘power brands’ strategy where it would be

focusing on 30 strategic brands, and rationalize the brand
structure by discontinuing or divesting some of the weaker brands
or by merging them with the more successful brands. HUL is losing
some ground to small and mid-sized companies and lost market
share in March 2009 in some key product categories. Analyze the
given situation.
HINDUSTAN UNILEVER LIMITED
Analyze the above situation on following parameters:
• Company’s background
• HUL’s Brand portfolio
• Core Competencies
• Human resource management
• Changing profile of Indian Consumers
• Competition in the Indian market
Your suggestions to HLL for surviving in the FMCG Market.
RECAP

• It is a person or company that makes goods for sale.

• Obtain (money) in return for labour.
• It is the money that a business obtains selling products.
• The mass communication (television, radio and newspapers).
• Benefit, advantage, a financial gain.
• A person who buys goods or services from a shop or business.
• It is the name, symbol or logo of a product.
• It is the characteristics of a product (e.g. 14 megapixels – digital camera).