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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
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