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Nature, Scope and

basics of Marketing

1

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What is Marketing?

Marketing is an organizational function

and a set of processes for creating,

communicating, and delivering valueto customers and for managing

customer relationships

in ways that benefit theorganization and its stakeholders.

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What is Marketing ?

Marketing is a process by which individual

and groups obtain what they need and

want through creating, offering,And freely exchanging

Product and services

Of value withothers

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What is Marketing Management?

Marketing management is the

art and science

of choosing target marketsand getting, keeping, and growing

customers through

creating, delivering, and communicatingsuperior customer value.

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Selling is only the tip of the iceberg

There will always be a need for

some selling. But the aim of marketing

is to make selling superfluous.Th

e aimof 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 beneeded is to make the product or

service available.

Peter Drucker

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What is Marketed?

Goods

Services

Events & Experiences

Persons

Places & Properties

Organizations

Information

Ideas

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A Simple Marketing System

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Demand States

Nonexistent Latent

Declining Irregular

Full UnwholesomeOverfull

Negative

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Market

Market is a physical place where

buyers and sellers gathered to buy and

sell goods

It is the collection of buyers and sellers

who transact over a particular product

or product class

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Market place physical place like shop

Market space digital space like portal

Meta market cluster of complimentaryproducts and services, closely related

Metamediaries

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Key Customer Markets

ConsumerMarkets

Business Markets

Global Markets

Nonprofit/ Government Markets

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Good Marketing is No Accident

The roaring success

of four-wheelerTata

Ace, in a market

earlier dominated bythree-wheeler load

carriers, was due to a

deep understanding

of the market needsand customer

requirements.

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Core marketing concepts

Needs basic human requirements

Wants -- need directed to specific goal

Demands wants + ability to pay

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State needs (Inexpensive car)

Real needs (low operating costs)

Unstated needs (good services) Delight needs (cutesy of dealer)

Secret needs (see him as a savvy

consumer )

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Target markets --- greatest opportunistic

Positioning in mind of consumer

Segmentation -- dividing market in different

segments

Offering value proposition, set of benefits

offered Brands offering from known source

Value sum of the perceived tangible and

intangible benefits and cost to customer

Satisfaction persons judgments ofproducts perceived performance in

relationship to expectation

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Marketing channels

Communication

Distribution

Service

Supply chain

Competition

Marketing environment

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The new marketing realities

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Company Orientations

Production

Selling Marketing

Product

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Production EraProduction Era Get out production,cut the price.

If we can built a betterproduct , the world willbeat a path to our door.

Company OrientationsCompany Orientations

Towards the MarketplaceTowards the Marketplace

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Marketers should NEVER sellproducts to consumers!

People buy holes,

not drills!

Fashion, status,

reference groups

approval, and

warmth, but not

coats!

The Marketing Myopia

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Selling Concept EraSelling Concept Era

Get the customers to thefit the companys

offering.

Company Orientations Towards theCompany Orientations Towards the

MarketplaceMarketplace

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The marketing concept is the idea thatan organization should strive tosatisfy the needs of consumers, whilealso trying to achieve the

organizations goals.

Marketing Concept

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WE MAKE IT HAPPENFOR YOU

HAVE IT YOURWAY

TO FLY, TO SERVE

Marketing Concept

WE ARE NOT SATISFIED

UNTIL YOU ARE

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Marketing and Sales Concepts Contrasted

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Customers

Front-line people

Middle Management

Top

Management

Traditional Organization Chart

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Customer-Oriented Organization

ChartCustomers

Front-line people

Middle management

Top

manage-

ment

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The holistic marketing concept

It is based on the development, design, and

implementation of marketing programs,

processes and activities that recognizes

there breadth and interdependencies

It recognizes that Every thing matters

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Holistic Marketing Dimensions

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Micromarketing is how an individualorganization directs its marketing

activities and allocates its resources

to benefit its customers.

Micromarketing

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Micromarketing is how an individualorganization directs its marketing

activities and allocates its resources

to benefit its customers.

Micromarketing

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Performance marketing

Financial accountability

Social responsibility marketing

Ethical, legal, social, environmentaleffects

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The societal marketing concept is theview that an organization shoulddiscover and satisfy the needs of itsconsumer in a way that also providesfor societys well-being.

Societal Marketing Concept

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Marketing management tasks

Developing marketing strategies and plans

Capturing marketing insights

Connecting with customers

Building strong brands

Shaping the market offerings

Delivering value

Communicating value

Creating long term growth

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The Four Ps

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Nature of Marketing

Marketing activities

Buying

Selling

Transporting

Storing

Financing

Researching

Risk taking

Grading/valuing Cost of marketing