INTRODUCTION TO MARKETING 
                                                                

                                                                                                                                                            What is Marketing??

Pricing


  Advertising
               
       Distribution
  
             Sales promotion

                   Public Relation

                                             

MARKETING DEFINITION 

Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitably.

MARKETING GOALS 

1. Attract new customers by promising superior value. 

2. Keep and grow current customers by delivering satisfaction. 

                     

                    WHAT IS MARKETING? 

                  “Meeting needs profitably” 

• Marketing is about identifying and meeting human and social needs. 

• Marketing is the sum of all activities that take you to a sales outlet.  

• Marketing is the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return 

• Marketing is about managing 4 P’s : 

         • product 

         • price  

         • place 

         • Promotion 

  Examples:  

• When eBay recognized that people were unable to locate some of the items they desired most, it created an online auction clearinghouse

• Walmart has become the world’s largest retailer—and the world’s largest company—by delivering on its promise, “Save money. Live better.” 



CHARACTERISTICS OF A BUSINESS TRANSACTION 

• Need to have at least two parties 

• Each party must have something that is valuable to other 

• Each party communicate and deliver items 

• Each party can accept or reject 

• Each party consider whether to deal with other party or not 

NEED, WANT, DESIRE & DEMAND 

Demand = Need + Want + Desire

• Need - Internal Stimuli. ( is a must )  

For example:  Hunger 

• Want - It is the solution of the need created.  

For example:  Foods, Pizza, Burger, etc. 

• Desire - It comes when you have ability to buy the product.  

• Demand - Burger ( translation of a want as per our willingness and ability to buy )  

               

WHY MARKETING CONCEPT IS ENCOURAGED? 

• To delight the customer 

• Reduce the gap between customer and manufacturer 

• Increase competition among organizations 

• Adapt to the technology and environment changes 

• Increase the purchasing through maintaining standards 

THE IMPORTANCE OF MARKETING 

 1.  You’ll make more sales 

 2.  You’ll increase awareness 

 3.  You’ll learn your metrics 

 4.  You’ll make consumers trust you 

 5.  You’ll build a social asset

6.  You’ll learn your marketplace  

7.  You’ll discover what works 

8.  You’ll develop an ‘ideal customer’ profile 

9.  You’ll learn how to test and optimize 

10.  You’ll build a powerful brand 

CONSUMER DEMAND STATE 

• Negative demand - Consumers dislike the product/service. (ex: Dental, Life Insurance, coffins, Products tested on animals) 

• Non-existent demand - Consumers may be unaware of or uninterested in the product. (ex: Online education courses) 

• Latent demand - Consumers may share a strong need that cannot be satisfied by an existing product. (ex:  Smart phones) 

• Declining demand - Consumers begin to buy the product less frequently or not at all. (ex: Sony Walkman, Floppy disks) 

• Irregular demand - Consumer purchases vary on a seasonal, monthly, weekly, daily, or even hourly basis. (ex: Air conditioners, Christmas decorations, Fire Crackers) 

• Full demand - Consumers are adequately buying all products put into the marketplace. (ex: Fastmoving consumer goods – FMCG, medicines) 

• Overfull demand - Consumers demand is more than the supply. (ex: rice) 

• Unwholesome demand - Consumers may be attracted to products that have undesirable social consequences. (ex: Cigarettes, alcohol, pirated movies, guns ) 

                      

DIFFERENCE BETWEEN SELLING AND MARKETING 

                       

FEW RELEVANT TERMS OF MARKETING 

• Marketer:  • It refers to the person who organizes the various marketing activities such as market research, product planning, pricing, distribution etc.  

• Seller:  • It refers to a person or organization who is directly involved in the process of exchange of goods and services for money. This includes the wholesaler, retailer, etc.  

• Consumer:  • One who actually uses the product or service.  

• For example, you bought a shirt and gifted it to your friend who uses it.  

• Here your friend is the consumer and you are a customer.  

• However, a consumer can also be the customer. 

• Customer:  • A customer usually refers to the person who takes the buying decision.  • For example, in a family, father decides on the brand of the toothpaste to be used by his children. Here, the children are the consumers and the father is the customer.  • A customer can also be the consumer.  

• Virtual Market:  • With advancement of technology, the buyer and sellers can, now-adays, interact with each other by using Internet. This is called virtual market.  

WHAT IS A MARKET? 

• Traditionally, a “market” was a physical place where buyers and sellers gathered to buy and sell goods.  A market is the set of actual and potential buyers of a product or service. 

• Where does marketing occur? – Market place (physical stores, departments) – Market space (digital/online) – Meta market (both physical and digital) 

• The marketplace isn't what it used to be due to the following factors: – Information technology, globalization, deregulation, privatization, competition, convergence, consumer resistance, consumer buying power, dis inter mediation, etc. 

FEW RELEVANT TERMS OF MARKETING 

• Types of Markets 

           

PUSH STRATEGY                    

“Taking the product to the customer” 

• Creating customer demand for products or services through promotion. 

• This involves taking the product directly to the customer via whatever means, ensuring the customer is aware of your brand at the point of purchase. 

• Ex: – Through massive discounts and trade promotions. – Maintaining reputation for reliability, value or style  – Direct selling to customers in showrooms or by visiting their places  – Packaging design to encourage purchase 

                   

  PULL STRATEGY

     “Getting the customer to come to you” 

• This involves motivating customers to seek out the brand in an active process. 

• Ex:  – Advertising and mass media promotion 

• Advertising children's toys on children's television shows is a pull strategy. The children ask their parents for the toys, the parents ask the retailers and the retailers the order the toys from the manufacturer. 

– Word of mouth referrals 

– Customer relationship management 

– Sales promotions and discounts 28 

                                       

MARKETING CONCEPTS 

1. Production Concept 

– Concentrate on achieving high production efficiency, low cost and mass production  

– Widely available and inexpensive  

– They do not consider the brand, technology etc. 

– Companies use economy of scale for production 

Ex:  Ford's Model –T 

2. Product Concept 

– Produce products and services with better quality, performance and more features 

– Sole focus was on developing high-quality product.    

Ex:  • Gillette Company focuses on producing the best possible disposable razors at an economic rate. Thereby, they distinguish their products with high quality razor blade, ease of use and right pricing strategy.  

• Auto mobiles such as: BMW, Ferrari  

• Apple is one company which works highly on product concept to get the best products to their consumers. 

3. Selling Concept 

– Firm uses aggressive and highly motivated sales forces 

– Push the customers for purchasing    

Ex:  –Insurance firms –Blood donations 

4. Marketing Concept 

– Firm find the specific needs of the customers and produce 

– Company research customer needs and monitor their satisfaction level 

– Ex: Dell computers

  5. Societal Concept 

– Satisfy both customer needs and the protection of the welfare of the society 

– Company must examine the quality of raw materials, contributions to society, production process, deposition of waste and its effect on the environment, etc.  

– Ex: CSR projects, products which are not tested on animals, green products,  etc.  

6. Holistic Marketing Concept 

– Considers the business as a whole and not as an entity with various different parts and company has to analyse every aspect of the business. 

– Holistic marketing concept involves interconnected marketing activities to ensure that the customer is likely to purchase their product rather than from a competitor

                  

                     6.1 Relationship marketing 

• Maintain relationship with customers and suppliers 

• Try to retain customers 

• Use Customer Relationship Management Process 

• Maintain relationship with other stakeholders like suppliers

                                6.2 Internal Marketing

  

You don’t just “start with the customer” anymore 

• Your employees, the very best people who can make the brand come alive for your customers. 

• With an internal marketing strategy, employees are treated as “internal customers” who must be convinced of a company's vision and worth just as aggressively as “external customers.”  

                               6.3 Integrated Marketing  

• Integrated Marketing is an approach of choosing the appropriate marketing strategy to creating a unified and seamless experience for consumers to interact with the brand/enterprise. 

• It attempts to combine all aspects of marketing communication such as: advertising, sales promotion, public relations, direct marketing, and social media, through their respective mix of tactics, methods, channels, media, and activities

                             6.4 Performance Marketing  

• Also known as affiliate marketing, partner marketing, associate and referral programs 

• Requires understanding the financial and non financial returns to business and society from marketing activities and programs.  

• Smart marketers go beyond sales revenue to examine the marketing scorecard and interpret what is happening to market share, customer loss rate, customer satisfaction, product quality, and other measures.