Conten ts

1)
2)
3)
4)
5)

The Importance of Marketing

The Scope of Marketing
Core Marketing Concepts
The New Marketing Realities
Company Orientations Toward the
Marketplace
6) Marketing Management Tasks

Defining Marketing for

21st Century

Chapter#

1
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TATA Ace
TATA Magic
As of May 2 01 0 TATA MOTORS
sold ov er 50 0,00 0 ACE in just 5
Year s

1) The Import ance of Mar keti ng

1) Importance of Marketing 1/2

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Financial success often depends on marketing ability.

Finance, operations, accounting, and other business functions

2) The Scope of Marketing

will not really matter if there is not sufficient demand for

products and services so the company can make a profit.
Many companies have created a Chief Marketing Officer (CMO),
position to put marketing on a more equal footing with other

C-level executives such as

Chief Executive Officer (CEO) & Chief Financial Officer (CFO).

1) Importance of Marketing 2/2

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2) The Scopeof Marketing 1/1 2

What is Marketing?

Management

Marketing is
an organizational function & a set of processes for
creating,
communicating,
& delivering
value to customers &
for managing customer relationships in ways that
benefit the organization & its stakeholders.

Manage ment is the act of getting people together to

accomplish desired goals using available resources
efficiently and effectively.
Manage ment comprises

Or
Meeting needs profitably

2) The Scopeof Marketing 2/1 2

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planning,
organizing,
staffing,
leading or directing, &
controlling

Selling is only the tip of the iceberg

What is Marketing Management?

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.

2) The Scopeof Marketing 3/1 2

Peter Ferdinand Drucker

(November 19, 1909
November 11, 2005) was
an Austrian writer,
management consultant,
and self-described social
ecologist. His books and
scholarly and popular
articles explored how
humans are organized
across the business,
government and the
nonprofit sectors of society.
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What is exchange?

Peter Drucker

2) The Scopeof Marketing 4/1 2

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For an exchange to occur.

There are at least two parties.
Each party has something that might be of value
to the other party.
Each party is capable of communication and
delivery.
Each party is free to reject the exchange offer.
Each party believes it is appropriate or desirable
to deal with the other party.

Exchange is the process of

obtaining a desired product
from someone by offering
something in return.

2) The Scopeof Marketing 5/1 2

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.

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2) The Scopeof Marketing 6/1 2

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What is Marketed?

Goods
Goods

PC/NetBook
Hair cut saloon/Hospital

Services
Services

Trade show, Disney world

Events
Events &
& Experiences
Experiences
Persons
Persons

T-pain, Michael Jordan

Places
Places &
& Properties
Properties

Sundarban

Organizations
Organizations
Information
Information
Ideas
Ideas
2) The Scopeof Marketing 7/1 2

IDEAS

Public image creation

Health Care /
Encyclopedia
Cosmet ics
& Hope
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2) The Scopeof Marketing 8/1 2

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Over 12 million copies of Angry Bird have been purchased from

Apple's App Store

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Eight Dem and Stat es

Who Markets?

1) Negative Demand: all or most of the important segments of

the potential market dislike the products and in fact might
pay a price to avoid it.

Marketers an d Pros pects

A MARKE T ER is some one who seeks a r espons e fr om
another p arty, call ed PRO SP EC T.

Vegetarians feel negative demand for meat;

Marketer possesses the skill to stimulate demand:

people in general have a negative demand for vaccinations,

dental work, or surgery.

Demand Management: to influence the level, tim ing

and composition of demand

A large number of frequent flyers have a negative demand

for air travel.

2) The Scopeof Marketing 9/1 2

2) Nonexistent Demand: Consumer

uninterested in the product.

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may

be unaware or

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3) Latent Demand: Share a strong need that can not be

satisfied with current product. A state of latent demand
exists when a substantial number of people share a strong
need for something which does not exist in the form of an
actual product and service.

1st, there are those familiar products that are perceived

as having no value. Ex: would be last weeks newspaper,
small pieces of used barbed wire, & broken pens.

Ex: How much a driver of any large metropolitan area would be willing
to pay for a fast city road? Or

2nd, there are those familiar products that have value

but not in a particular market. Ex: would be snowmobiles
in areas that do not have snow & residence alarms
where there is no crime.

What is the optimal price for an HIV vaccine?

4) Declining Demand: B&W Television

3rd, there are those new, unfamiliar products or services

which are innovative & face a situation of no demand
because the relevant market segment has no knowledge
of its benefits. Ex: include certain consulting services &
new software.

5) Irregular Demand: Seasonal, Monthly or Weekly

6) Full Demand: Consumers are adequately buying all products
put into the marketplace. Rice, etc
7) Overfull Demand: Would like to buy more than can be
satisfied. Power/ Water
8) Unwholesome Demand: Attracted to products that have
undesirable social consequences.
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Markets ?????
Structure of Flows in a Modern Exchange Economy
(Market in terms Modern Economics)

A Simple Marketing System

KEY MARKET S:

CONSUMER MARKET: Selling consumer goods and services; soft

drinks, cosmetics, air travel etc.
BUSINESS MARKET: Business buyers buy goods in order to
make or resell a product to others.Caterpillar (CAT)
GLOBAL MARKET: Selling goods in global market place
NPO and GOVT. MARKET: Usually sell through bid and lowest bit
get offer.
2) The Scopeof Marketing 10/12

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2) The Scopeof Marketing 11/12

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Marketplaces, Marketspaces and Metamarkets

Marketplace: It is physical..When we shop in the
store.
Marketspace: It is digitalWhen we shop on the
internet.
Metamarket: A cluster of complementary products
and services that are closely related in the minds of
consumers but are spread across a diverse set of
industries.

3) Cor e Mar keti ng Concepts

Like; automobile manufacturers, new car and used

car
dealers,
financing
companies,
insurance
companies, mechanics, spare parts dealers, service
shops, auto magazines etc.
2) The Scopeof Marketing 12/12

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3) CoreMarketing Concepts1/4

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Core Marketing Concepts:

Needs, wants, &
demands ( Slide#26)
Segmentation, Target
markets, Positioning,
Offerings & brands
Offerings can be a
combination of product,
services, information &
experiences.
Brand is an offering from
known source.
Value and satisfaction
Value reflects the
perceived tangible or
intangible benefit and
associated cost.

3) CoreMarketing Concepts2/4

Needs, wants, & demands

Marketing channels
Communication Channel;
television
Distribution Channel;
distributor
Service Channel;
transportation companies
Supply chain
Channel from raw material
until final buyers.
Competition
Marketing environment (Slide#27)
Task Environment: immediate
actors involved in producing,
distributing, promoting
Broad Environment:
Demographic, economic,
physical, technological,
political & legal.
Marketing planning
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Needs - states of felt deprivation including physical needs for

food, social needs for belonging and individual needs for selfexpression. i.e. I am thirsty.
Wants when these human needs are shaped by culture and
individual personality. i.e. I want a Coca-Cola.
Demands - human wants backed by buying power. i.e. I have
money to buy a Coca-Cola.
Types of needs:
1. Stated needs (the customer wants an inexpensive car).
2. Real needs (the customer wants a car whose operating cost,
not its initial price, is low).
3. Unstated needs (the customer expects good service from the
dealer).
4. Delight needs (the customer would like the dealer to include
an onboard navigation system).
5. Secret needs (the customer wants to be seen by friends as a
savvy consumer).
3) CoreMarketing Concepts3/4

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Grand Summary of the marketing process & the forces

shaping the companys Marketing Strategy

4) The New Marketing Realities

3) CoreMarketing Concepts4/4

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4) TheNew Marketing Realities 1/5

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Major Societal Forces

New Consumer Capabilities

Network Information technology

Globalization
Deregulation
Privatization
Heightened competition
Industry convergence
Consumer Resistance
Retail transformation
Disintermediation

4) TheNew Marketing Realities 2/5

A substantial increase in buying power

A greater variety of available goods and services
A great amount of info about practically anything
Greater ease in interacting & placing & receiving
orders
An ability to compare notes on products
An amplified voice to influence peer & public
opinion

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Shifts in Marketing Management:

New Company Capabilities

4) TheNew Marketing Realities 3/5

From m arketin g does the marketin g to ev eryone does th e

marketin g
From org ani zing by prod uct un its to orga niz ing by
customer se gme nts
From m akin g everythi ng to b uying more goods and
services fro m outsi de
From usi ng m any sup pliers to workin g with fewer
suppliers i n a " partnershi p"
From relyi ng o n old mark et positio ns to u ncoveri ng n ew
ones
From e mphas izi ng tan gible assets to e mph asizi ng
intangib le assets

Internet as powerful info and sales channel

Laser sharp info about consumer
Strong Internal Communication
Speedy External Communication
Cell Phone
Laser Sharp Customization
Searching and selecting Executives is more easy

From bu ildin g bra nds throu gh a dvertising to buil ding

brands throu gh p erfor manc e & integrat ed
comm unic ations
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Company Orientations

5) Company Orientati ons

Towar d the Market place

Inexpensive
labor in China
and HAIER

Better
Mousetrap
Fallacy

Producti on

Selling
Insurance or
Encyclopedia

5) Company Orientatio ns1/7

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5) Company Orientatio ns2/7

Product

Marketing

Reactive or
Proactive market
orientation

Be more effective than

competitors in creating, delivering
and communicating superior
customer value to its chosen
target markets
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1 st Ed
13 th Ed

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Holistic Marketing Dimensions

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5) Company Orientatio ns3/7

Holistic Marketing:

Integrated Marketing

Holistic marketing recognizes that everything matters with

marketing. There are four components:
Relationship Marketing: Aim of building mutually satisfying longterm relationships with key parties-customers, suppliers,
distributors etc. Create marketing network.among the
stakeholders.
Integrated Marketing: Fully integrated marketing programs to
create, communicate and deliver value for consumers. Like 4Ps
Internal Marketing: Internal marketing is the task of hiring,
training, and motivating able employees who want to serve
customers well. The sales force thinks product managers set
prices or sales quotas too high.
Performance Marketing: Ethical, environmental, legal and social
context of marketing activities and programs. McDonals add
healthy items.paper wraps..environmental friendly papers.

5) Company Orientatio ns4/7

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Fo ur Ps
Prod uct
Price
Place
Promo tion

Four Cs
Cust om er Solu tion
Customer C ost
Convenie nc e
C omm uni cati on

Mark etin g Mix:

Acc ordi ng t o McC art hy,
A Mark etin g Mix
the co ntr ollabl e vari able s
which t he com pa ny p uts
tog et he r to s atisfy t ar get
gro up

5) Company Orientatio ns5/7

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Grameen Danone Foods Ltd,

a Social Business in
Bangladesh

This is aunique opportunity to create a business totall y dedicated to social objectives, a company
w hose ambition is not to generate pro fits for its investors, but committed to serve the interests of
people without incurring losses.
Pr ofessor Muhammad Yunus, P residen t of the Gr ameen Group
I am utterly convinced that our future depends on our abili ty to explor e andinvent new businesses
and new ty pes of enterprise a great opportunity to make progress in that direction and take
another huge step towards fulfilli ng our mission: to br ing health through food to as many people as
possible.
Fr anck Ribo ud, C EO of Grou pe Dan one
R educing poverty by means of a new business model that will pr ovide the least well off with a
healthy diet, every day.
W ith this initiative, the need to maximize profits for the investors is re[placed by social impact on
local community. Profits go to the local communities in terms of ben efits brought to them.
Em manuel Faber , Groupe D anon e,
Execu tive Vice-P resident

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Marketing Management Tasks :

Developing marketing strategies and plans

6) Mar keti ng Management Tasks

Capturing marketing insights

Connecting with customers
Building strong brands
Shaping market offerings
Delivering value
Communicating value
Creating long-term growth

6) Marketing Management Tasks 1/2

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6) Marketing Management Tasks 2/2

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innate & learned qualities most important

for marketer

Innate Qualities

Risk taker

Willingness to make decisions

Problem-solving ability

Change agent

Results-oriented
Learned Qualities

Global experience

Multichannel expertise

Cross-industry experience

Digital focus

Operational knowledge

My Cell

017-2642-7768

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