Introduction to

MARKETING
Learning Objectives
1-1 Define marketing and outline the steps in the marketing process.

1-2 Importance of understanding the marketplace and customers

1-3 identify the five core marketplace concepts.

1-4 Identify the key elements of a customer-driven marketing strategy

1-5 Discuss the marketing management orientations

1-6 Discuss customer relationship management

1-7 Describe the major trends and forces that are changing the marketing
landscape in this age of relationships.
1
What is
marketing ?

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Everything We
Do is Marketing

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What is marketing?

Three mistaken Views

Marketing is Advertising

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 Marketing is Advertising
No, because:

• Advertising is part of Marketing

• Marketing starts long before the company places and

ad or develops an advertising strategy

• Advertising becomes part of an over-all Marketing Plan

• Advertising only occurs only after a product is

manufactured or a service is created
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What is marketing?

Three mistaken Views

Marketing is Selling

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 “There will always be need for
some selling. But the aim of marketing
is to make selling superfluous. The aim
of marketing is to know and understand
the customer so well that the product or
service fits him and sells itself. Ideally,
marketing should result in a customer
who is ready to buy. All that should be
needed is to make the product or
service available.”
Peter Drucker

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 “I don’t care how
many degrees you
have on the wall, if
you don’t know how to
sell, you’re probably
going to starve.”
Heavyweight boxer George
Foreman’s
advice to his children

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 Marketing is Selling
No, because:
• Selling is part of Marketing

• Marketing starts long before the company has a product or service

• Marketing involves homework to asses needs, measure their extent,

and determine if a profitable opportunity exists

• Selling only occurs only after a product is manufactured or a service is

created

• Marketing continues throughout a product’s life, finding new

customers, improving product appeal and performance, and managing
repeat sales
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What is marketing?

Three mistaken Views

Marketing is a Department

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“ Marketing is too
important to be left to
the marketing
department”

David
Packard
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 Marketing is a Department
No, because:

• Yes, companies do have Marketing Departments, but,

• All departments should be at least customer oriented if not

customer driven

• In highly competitive markets, all departments must focus

on winning customer preference

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Who is responsible for marketing?

Everyone plays a part

▰ Accountants make sure bills are right and materials are available for
sales to happen
▰ Finance managers make sure there’s cash flow to keep operations
going
▰ Managers make sure employees are happy – happy employees =
happy customers

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Who is responsible for marketing?

Everyone plays a part

▰ Operations provide utilities to customers

▰ IT – help communicate value and provide utilities to consumers
▰ Research and Develop – keeps a steady stream of new products to
be launched in the market.

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Learning Objective 1

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Marketing is…
1.A philosophy, an attitude, a perspective, or
a management orientation that stresses
customer satisfaction.
2.An organizational activity, set of
institutions, and processes.

LO1 22
American Marketing
American Association
Marketing Association
Definition of Marketing
Definition of Marketing

Marketing is an organizational function and a set of

processes for creating, communicating and delivering
value to customers and for managing customer
relationships in ways that benefit the organization and
its stakeholders

LO1 23
What is Marketing ?
▻ Marketing: the process of planning
and executing the conception,
pricing, promotion, and distribution
of ideas, goods, services,
organizations, and events to create
and maintain relationships that will
satisfy individual and organizational
objectives.
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What is Marketing ?

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.

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 What is Marketing ?

Marketing is a societal process by which

individuals and groups obtain what they need and
want through exchanging value with others.

Philip
Kotler

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Marketing is the art of finding, developing, and
profiting from opportunities.

Marketing is the science and art of finding,

keeping, and growing profitable customers.

Satisfying customers profitably.

Philip Kotler

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Learning Objective 2

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 What is Marketing ?

Marketing is a societal process by which

individuals and groups obtain what they
need and want through exchanging value
with others.

Philip Kotler
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Understanding the market place

Need Wants Demand

Needs are states Wants are the Demands are
of felt form human human wants
deprivation. needs take as that are backed
they are shaped by purchasing
by individual power.
need and
personality.

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Exchange

At
AtLeast
LeastTwo
TwoParties
Parties

Something
Somethingof
ofValue
Value
Conditions
Conditionsfor
for Communication
Communicationand
andDelivery
Delivery
Exchange
Exchange
Freedom
Freedomto
toAccept
Acceptor
orReject
Reject
Desire
Desireto
toDeal
Dealwith
withOther
Other
Party
Party

1
 Exchange

▰ Exchange may not take place

even if conditions are met.

▰ An agreement must be reached.

▰ Marketing occurs even if

exchange does not take place.
1
 Understanding the market place

Exchange is the act of obtaining a

desired object from someone by
offering something in return

Marketing actions try to create,

maintain, and grow desirable
exchange relationships.

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 Understanding the market place

Market offerings are some

combination of products, services,
information, or experiences offered
to a market to satisfy a need or
want.

Marketing myopia is focusing only

on existing wants and losing sight
of underlying consumer needs.

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 Creating
Customer
Customervalue
value Value
and beneficial
and beneficial
relationships
relationships
uct Pl
ac
d e
P ro

Exchange
A B

Pr n
Delivering io Communicating
Value
ice ot Value
r om
P
 THE MARKETING EXCHANGE CYCLE

EXPRESSES WANTS BUYS OR

OR NEEDS REJECTS
STEP 1
STEP 2 STEP 3

MARKETING MARKETING

Research Planning
Analysis Advertising
Reports Selling

STEP 2
FINANCE PRODUCTION

Financial analysis Research development

Budgeting Product development
Forecasting Production
Learning Objective 3

Identify the key elements of a

customer-driven marketing strategy
and discuss the marketing
management orientations that guide
marketing strategy.

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 Designing a customer value driven
marketing strategy

Marketing management is the art and science of

choosing target markets and building profitable
relationships with them.
▻What customers will we serve (target market)?
▻How can we best serve these customers (value
proposition)?
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 Designing a customer value driven
marketing strategy

Marketing management is the art and science of

choosing target markets and building profitable
relationships with them.
▻What customers will we serve (target market)?
▻How can we best serve these customers (value
proposition)?
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Designing a Customer Value-Driven Marketing Strategy

Societal
Producti Marketin
Product Selling Marketi
on g
concept concept ng
concept concept
concept
Four Eras in the History of Marketing
 The Production Concept

▰ The Production
concept holds that
consumers will favor
those products that
are widely available
and low in cost.

▰ Management in
production oriented
organizations
concentrate on
"Doesn't matter what color car you want, as
long as it is black."
 The Product Concept

▰ The product concept

holds that consumers
will favor those
products that offer the
most quality,
performance and
features.

▰ Management in
product oriented
organizations focus
their energy on goods,
 Selling Concept

▰ The selling concept

holds that consumers,
if left alone, will not
ordinarily buy enough
of the organization’s
products.

▰ Management in selling
oriented organizations
therefore undertake
aggressive selling and
promotion effort.
 Marketing concept

▰ The marketing
concept holds
that the key to
achieving
organizational
goals consists
in determining
the needs and
wants of target
markets and
delivering the
 Marketing concept

 Focusing on customer wants and

needs to distinguish products from
competitors’ offerings
 Integrating all the organization’s
activities to satisfy these wants

 Achieving the organization’s long-

term goals by satisfying customer
wants and needs legally and
responsibly
 Achieving a Marketing Orientation

 Obtain information about customers,

competitors, and markets
 Examine the information from a total business
perspective
 Determine how to deliver superior
customer value
 Implement actions to provide value
to customers
"I do not consider a sale complete
until goods are worn out and the
customer still satisfied. We will
thank anyone to return goods that
are not perfectly
satisfactory...Above all things we
wish to avoid having a dissatisfied
customer."
L.L. Bean 1912
Societal Marketing
Orientation

Societal
Societal An organization exists not only
Marketing
Marketing to satisfy customer wants but
Orientation
Orientation also to preserve or enhance
individuals’ and society’s long-
term best interests.

• Less toxic products

• More durable products
• Products with reusable
or recyclable materials
The Four Marketing Management
Philosophies

Orientation Focus is on…

Production internal capabilities of the firm

aggressive sales techniques and

Sales belief that high sales result in high
profits

Market satisfying customer needs and

wants while meeting objectives
satisfying customer needs and
Societal wants while enhancing individual and
societal well-being
Questions That Help
Determine Marketing
Philosophy
Orientation Focus

Production
Production What
Whatcan
canwe
wemake
makeor
ordo
dobest?
best?

How
Howcan
canwe
wesell
sellmore
more
Sales
Sales aggressively?
aggressively?

Marketing What
Whatdo
docustomers
customers
Marketing want
want andneed?
and need?

Societal What
Whatdo
docustomers
customerswant/need,
want/need,andand
Societal how can we benefit society?
how can we benefit society?

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 Sales vs. Market
Orientations
Primary
Organization’s Firm’s For Profit Tools to
Focus Business Whom? Goal? Achieve

Sales Inward Selling Everybody Maximum Primarily

Orientation goods and sales promotion
services volume

Market Outward Satisfying Specific Customer Coordinated

Orientation wants and groups of satisfaction use of all
needs people marketing
activities
 PRODUCTION ORIENTATION

PRODUCTION SELLING

Produce Move
Products Inventory

MARKETING ORIENTATION

MARKETING PRODUCTION MARKETING

Research present Produce Create and

and potential Products deliver
customer wants customer
satisfaction
 ▰ and
Differences between Selling Consumer determines the
Marketing
▰ price; price determines
Costs determine the
the costs.
price
▰ They are seen as vital
▰ Transportation, storage
services to be provided to
and other distribution
the customer, keeping
functions are perceived
customer’s convenience
as mere extensions of
in focus.
the production function.

▰ Emphasis on ‘somehow’
selling; there is no co-
▰ Emphasis on integrated
ordination among the
marketing approach, an
different functions of the
integrated strategy
total marketing task.
convering product, price,
promotion and
distribution.

▰ Different departments
▰ All departments of the
of the business operate
business operate in an
as separate watertight
highly integrated manner,
 Differences between Selling and Marketing
▰ In firms practicing
marketing, marketing
is the central function
▰ In firms’ practicing
of the business, the
‘selling’ production is entire business is
the central function of organized around the
the business marketing function.

▰ Marketing views the

customer as the very
purpose of business;
sees the business from
▰ Selling views the the point of view of the
customers as the last customer, Customer
consciousness
link in the business
permeates all
departments and all
people in the
organization all the
time.
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Why
Why Study
Study Marketing?
Marketing?

Important
to Society

Important Good Career

to Business Opportunities

Marketing affects
you every day!
“Companies can’t
give job security.
Only customers can”
Jack Welch
How to create customers ?
How to Create Customers?
▻ Identifying customer needs
▻ Designing goods and services that
meet those needs
▻ Communicating information about
those goods and services to
prospective buyers
▻ Making the goods or services available
at times and places that meet
customers’ needs
▻ Pricing goods and services to reflect
costs, competition, and customers’
ability to buy
▻ Providing for the necessary service and
follow-up to ensure customer
 Marketing Mix

▰ The marketing variables that

together provide customer
satisfaction are:
▻ Product
▻ Price
▻ Promotion
▻ Place [Distribution]
 Marketing Mix

Marketing
MarketingMix
Mix

Marketing mix is the set of

controllable, tactical marketing
tools—product, price, place, and
promotion—that the firm blends to
produce the response it wants in
the target market.
Marketing Mix: The “Four Ps”

Promotion

Place

Price

Product
Marketing Mix: The “Four Ps”

 The starting point of

the Product
“4 Ps”

 Includes  Products can be…

 Physical unit  Tangible goods
 Quality  Ideas
 Design  Services
 Package
 Warranty
 Service
 Brand
 Image
 Value
Marketing Mix: The “Four Ps”

 Price is what a buyer

must give up to obtain Price
a product.

 The most flexible of

the Includes
“4 Ps”-- quickest to List price
change
Discounts
 Competitive weapon Allowances
Payment period
 Price x Units Sold = Credit terms
Total Revenue
Marketing Mix: The “Four Ps”

 Product availability
where and when Place
customers want them

 All activities from raw

materials to finished Includes
products Channels
Coverage
 Ensure products arrive
Assortment
in usable condition at
designated places Location
when needed Inventory
Transport
Marketing Mix: The “Four Ps”

 Role is to bring about

exchanges with target Promotion
markets by:
 Informing
 Educating
 Persuading
 Reminding

 Includes integration of:

 Personal selling
 Advertising
 Sales promotion
 Public relations / PublicityOnlin
 Direct marketing e
Marketing Mix and the Customer
Four C’s
Four P’s

▰ Customer
▰ Product
solution

▰ Price
▰ Customer cost

▰ Place
▰ Convenience

▰ Promotion
▰ Communication
How would you sell this? This?
 Bridges gap between employers and
job seekers
 Introduced drop-box system to gather
bio-data of job seekers
 Data base of over 10000 semi-skilled,
unskilled, supervisory and
administrative levels
 Provides data base access on
payment
 THANKS!
Any questions?
You can mail me at
sundarsrinivasan287@gmail.com

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