What is Marketing…??

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

All of the above, plus much more!

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 Great Words on Marketing
1. “The purpose of a company is ‘to create a customer…The only
profit center is the customer.’”
2. “A business has two—and only two—basic functions: marketing
and innovation. Marketing and innovation produce results: all the
rest are costs.”
3. “The aim of marketing is to make selling unnecessary.”
4. “While great devices are invented in the Laboratory, great
products are invented in the Marketing department.”
5. “Marketing is too important to be left to the marketing
department.”

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Consumer v/s Customer
Development of the Marketing Concept

Production
Concept

Product Concept

Selling Concept

Marketing
Concept
Societal
Concept
The Production Concept

• Assumes that consumers are interested

primarily in product availability at low
prices
• Marketing objectives:
Cheap, efficient production
Intensive distribution
Market expansion
The Product Concept

• Assumes that consumers will buy the

product that offers them the highest quality,
the best performance, and the most features
• Marketing objectives:
Quality improvement
Addition of features
• Tendency toward Marketing Myopia
The Selling Concept

• Assumes that consumers are unlikely to

buy a product unless they are aggressively
persuaded to do so
• Marketing objectives:
Sell, sell, sell
• Lack of concern for customer needs and
satisfaction
The Marketing Concept

• Assumes that to be successful, a company

must determine the needs and wants of
specific target markets and deliver the
desired satisfactions better than the
competition
• Marketing objectives:
 Profits through customer satisfaction
The Societal Marketing Concept
• All companies prosper when society
prospers.
• Companies, as well as individuals,
would be better off if social
responsibility was an integral
component of every marketing decision.
• Requires all marketers adhere to
principles of social responsibility.
What Changed in Marketing…

Old Economy New Economy

• Organize by product units • Organize by customer segments

• Focus on profitable transactions • Focus on Customer Lifetime Value
• Look primarily at financial (CLV)
scorecard • Look also at marketing scorecard
• Focus on shareholders
• Marketing does the marketing • Focus on stakeholders
• Build brands through advertising • Everyone does the marketing
• Focus on customer acquisition • Build brands through performance
• No customer satisfaction • Focus on customer retention
measurement • Measure customer satisfaction and
• Over-promise, under-deliver retention rate
• Under-promise, over-deliver

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 Definitions of Marketing
‘Marketing is the management process
that identifies, anticipates and satisfies
customer requirements profitably’

The Chartered Institute Of Marketing

‘Marketing is the human activity
directed at satisfying human needs and
wants through an exchange process’

Kotler 1980
Marketing = ?

Marketing is the social and managerial 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

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 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.

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 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 P’s –
 product
 price
 place
 promotion

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 ‘The right product, in the right
place, at the right time, and at the
right price’

Adcock et al
Stages of Customer Interaction

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 The 4 Ps by David McCarthy
4 Cs by Lauterborn

Marketing Convenience
Mix

Place
Product

Customer
Solution Price Promotion

Customer Communication
Cost
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4 A’s Framework (rural
marketing) by Prof. Jagdish Seth & Dr.
Rajendra Sisodia

• Affordability
• Accessibility
• Awareness
• Acceptability

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The “8Ps” of Integrated Service
Management vs. the Traditional “4Ps”

► Product elements
► Price and other user outlays
► Place, cyberspace, and time
► Promotion and education
► Process
► People
► Physical evidence
► Productivity and quality

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 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

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Scope – What do we market
 Goods
 Services
 Events
 Experiences
 Personalities
 Place
 Organizations
 Properties
 Information
 Ideas and concepts

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 Core Concepts of Marketing

Based on :
1. Needs, Wants, Desires / demand

2. Products, Utility, Value & Satisfaction

3. Exchange, Transactions & Relationships
4. Markets, Marketing & Marketers.

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 1. Needs , Wants and Desires
Needs are the states of felt deprivation.
Wants are educated needs based on human needs as
shaped by culture and individual personality. They
are described in terms of objectives that will satisfy
needs.

Demands are empowered human wants i.e when the

consumers have the ability to satisfy their wants.
They must have willingness and the purchasing
power to buy a particular product.
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2. Utility - that something which makes a
product capable of satisfying wants

Form Utility - Leather

Place Utility - Oven
Time Utility - newspaper
Information Utility– TV news
Possession Utility - Car

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 3. Exchange and transaction & relationships

Exchange is a process by which an individual gets a

desired object from someone by offering
something of value in return.

Transaction is a trade between two parties that

involves at least two things of value, agreed-upon
conditions, a time of agreement and a place of
agreement.

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The Give and Get of Marketing

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

Customers

Company Competition

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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

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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
or an ecosystem
Understanding both the needs and the ecosystem is
the starting point of a long term relationship

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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

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 Customer looks for Value
Value = Benefit / Cost
Benefit = Functional Benefit + Emotional
Benefit
Cost = Monetary Cost + Time Cost +
Energy Cost + Psychic Cost

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 Marketing Myopia

The marketer has to see the buyer’s needs rather than

the product he sells, otherwise he suffers from what
is known as “marketing myopia.”

by Theodore Levitt
Father of marketing management

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4. Marketers and Markets
Marketers are focused on stimulating exchanges with
customers who make up markets – B2C, B2B,
B2G, G2G, C2C.
The market is comprised of people who play a series
of role of decision makers: Initiators, influencers
Gatekeepers, consumers/User, purchasers, and
influencers.
It is absolutely essential that marketers have a detailed
understanding of consumers, their needs and wants.
Much happens before and after the sale to affect
customer satisfaction

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 Family Consumer Buying
(Different Roles played by
Consumers)
• So many participants involved in buying process
 Initiators
 Users
 Influencers
 Deciders
 Approvers
 Gatekeepers
The Marketing Plan/ Marketing Process

Step 1: Business
mission & objectives
Planning
Phase
Step 2: Situation analysis
SWOT

Step 3: Identify opportunities

Segmentation Targeting Positioning

Implementation Marketing
Phase strategy
Step 4: Implement marketing mix

Product Price Place Promotion

Control Step 5: Evaluate performance

Phase using marketing metrics
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Myth 1 – The larger the range of products, the more
customer-centric I am.

Mythbuster – The range of products has

emerged from being
competition-centric.

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Myth 2 – Better technology (read CRM) leads to
better customer service.

Mythbuster – Technology
alone does not deliver,
helps people do.

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Myth 3 – Launch a product and the customer will start
using instantly.
- Give a customer a card and he will learn how to play
with it immediately

Mythbuster – Customers need

To be educated too…

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Myth 4 – The only way to get a customer is from
competition.

Mythbuster – Customers
are not only present
where competition is.

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Myth 5 – Just advertise and - You will sell.

Mythbuster – Advertising will only sell,

Not retain customers.
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Myth 6 – No difference between marketing & selling

Mythbuster – “Selling focuses on the needs of the

seller; marketing on the needs of the buyer.

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Myth 7 – In the absence of relationships ‘trust’ builds
financial brands

Mythbuster – Trust is not a differentiator at all…

it is the very minimum that the customer expects!!

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