KARTHIKEYAN MBA., MPHIL., PGDCA.,PGDHEE.

,(PHD)
ASSISTANT PROFESSOR
KARUNYA SCHOOL OF MANAGEMENT
Needs are basic human
requirements people need food, air,
water clothing and shelter.

Marketing do not create the needs.

Infact ,they influence the demand by
making the product appropriate,
attractive, affordable.
A human need is a
state of deprivation of
some basic
satisfaction. People
require food, clothing,
shelter, safety,
belonging & esteem.
These are not created
by society or
marketers. They exist
in the very texture of
human biology &
condition.
Needs become wants they are
directed to specific objects that
might satisfy their needs.

Wants Desires
for specific
satisfiers of needs.
Although needs
are few, wants are
many & are
continually shaped
& reshaped by
social forces &
institutions.
Wants for specific products that are
backed by an ability & willingness to
buy them. Wants become demand
when supported by purchasing
power.
Buying Power
Wants
Demand
Goods
Services
Ideas
A product is anything that can be offered
to satisfy a need or a want

A marketers job is to sell the benefits or
services built into physical products.
Consists of all the potential
customers sharing a particular need
or want who might be willing and
able to engage in exchange to
satisfy the need or want.
Definition of market
Traditional View was a physical place where buyer and seller gather to buy and
sell goods.

Economics now define market as a collection of buyer and seller who transact over
a particular product and product class.

Marketer view the sellers as constituting the industry and the buyers as constituting
the market .

Thus market is a set of actual and potential buyer of a specific good or service.
The Marketplace is physical, as when
one goes for shopping in a store.

Marketspace is digital, as when one
goes shopping on the internet.

Available Market (who have interest,
income and access to a particular
offer)

Target Market or Served Market (a co.
can go for serving whole available
market or can concentrate on certain
segments)

Penetrated Market (set of buyers who
are buying the co.s product)


Definition of marketing
Marketing means managing markets to bring about
profitable exchange relationships by creating value and
satisfying needs and wants.
Marketing is a societal process by which individuals and
groups obtain what they need and want through creating,
offering and freely exchanging products and services of value
with others.
Marketing is the process of planning and executing the
conception, pricing, promotion, and distribution of ideas,
goods, and services to create exchanges that satisfy
individual and organizational goals.
Marketing is a economic process by
which goods and services are
exchanged between the producers and
consumers and their values is
determined in terms of money prices.
Marketing is managing profitable
customer relationship

Simple Definition: Marketing is
managing profitable customer
relationships

American Marketing Association: The
performance of business activities that direct the
flow of goods and services from producer to
customer and user.

Philip koler: Marketing is the analysis,
planning, implementation and control of
programmes designed to bring about desired
exchange with target audience for the purpose of
personal and mutual gain. It realises heavily on
the adoption and coordination of product, price,
promotion and place for achieving effective
response.
Market:
a collection of
buyers
Industry:
a collection of
sellers
Communication
Products/Services
Money
Information
Simple marketing system
Selling focuses on the needs of the
seller, marketing on the needs of the
buyer.

Selling is nothing but converting
product into cash. Marketing includes
creating , delivering & finally
consuming it.

Selling is push, Marketing is pull.
Output Sold to Consumers
Looks at Individual, Single Consumer
Seeks Sales Rather than Profit
Short-Term Goal Orientation
Concerned with Current Inventory Reduction
Narrower View of Consumer Needs
Little Adaptation to Environment
Informal Planning and Feedback
Consumer-
Oriented
Stresses Research
and Consumer
Analysis
Looks at Groups of
Consumers
Profit-Oriented
Directed to Long-
Range Goals
Two-Way
Interactive
Process
Appropriate
Adaptation to
Mkting
Environment
Broad View of
Consumer Needs
Integrated
Planning and
Feedback
Production
Selling
Consumption
Consumer
Need
Evaluation
Integrated
Marketing
Effort
Achievement of
Organizational
Goals
Consumer
Satisfaction
Feedback
Marketing Management
Philosophies (Concepts)

Production Concept

Product Concept
Selling Concept
Marketing Concept
Societal Marketing Concept
Marketing Concept
Customer Concept
This concept holds that consumers are interested
primarily in product availability at low prices.
Marketing objectives:
Cheap, efficient production
Intensive (concentrated) distribution
Market expansion
1. Production Concept
2. Product Concept
The concept holds that consumers will buy the
product that offers them the highest quality, the best
performance, and the most features Marketing
objectives:
Quality improvement
Addition of features
Tendency toward Marketing Myopia (nearsightedness)
3. Selling Concept
The concept holds that consumers will not buy
enough of the organizations products unless the
organization undertakes a large-scale selling and
promotion effort.
Marketing objectives:
Sell, sell, sell
Lack of concern for customer needs and
satisfaction
4. Marketing Concept
This philosophy holds that to be successful, a
company must determine the needs and wants of
specific target markets and deliver the desired
satisfactions better than the competitors.
Marketing objectives:
Profits through customer satisfaction
The concept holds that the organization should
determine the needs, wants, and interests of target
markets and deliver the desired satisfactions more
effectively and efficiently than do competitors in a way
that maintains or improves the consumers and
societys well being.
Societal Marketing
Concept
Society
(Human Welfare)
Company
(Profits)

Consumers
(Wants)
5.Societal Marketing Concept
-Separate offers, services, and message to individual customers.
-One to one marketing
Starting
point
Focus Means Ends
Individual
customer
Customer
Needs and
values
One to one
marketing
integration
and value
chain
Profits growth through
Capturing customer
share, loyalty, and lifetime
Individual
customer
Customer
Needs and
values
One to one
marketing
integration
and value
chain
Profits growth through
Capturing customer
share, loyalty, and lifetime
6. The Customer Concept
Product Customer needs/wants
Price Cost to customer
Place Convenience
Promotion communication.
Marketing
Functions
Functions of
Exchange
Buying and
Assembling
Selling
Functions of
Physical Supply
Transportation
Storage and
Warehousing
Facilitating
Functions
Financing Risk
bearing
Standardisation
Market
Information
Pricing
Marketing Functions
Producers Consumers
Financing
Pricing
Marketing-Information Management
Product/Service Management
Promotion
Distribution
Selling
Environmental
analysis &
research
Total
Marketing
Effort
Marketing
management
Product
planning
Broadening
the scope of
marketing
Consumer
analysis
Promotion
planning
Distribution
planning
Price
planning
Customer has always been king,so
much more today than ever before,
business research proves. One such
recent study by Mobius Mgt. System
Inc indicates that poor customer
service accounted for as much as 60
percent of Bank accounts cancellations
, 36 percent of insurance companies
switches and 37 percent of internet
service provider drops.
Customer always required good quality of
Product and price
but now these days service is rapidly
rising and becoming a major demand of
Customer. As result, even in monopoly
driven sectors including government
managed and public sector like
telephone and utilities where service
consciousness has never been a business
imperative, the customer has now
moved into the limelight. Customer
satisfaction can be enhanced success of
business.
Customer will pave the future of business
in the years to come. Organizations have
already even started customer orientation.
A customer is the most important visitor
on our premises. He is not dependent on us .
We are dependent on him. He is not an
interruption in our work. He is not the
purpose of it. It He is not outsider on our
business. He is part of it. We are not doing
him a favour by serving him. H eis doing
favour by giving us an opportunities to do so.
(Mahatma Gandhi)
Customers,Customers, Customers
Where are they everywhere
Who are they everyone
When they come . Any minute
What will they like . Whatever
you sell to them with a genuine
twinkle in your eyes,with a smile on
your lips,with feelings from your
heart and with their benefits in your
mind.
Internal Customer
External Customer

How to satisfy our customer
1. Good Quality
2.Less Price
3.Better Services
4.Delievery at the door step
5.Customer delightness
Overall
Customer
Satisfaction
Courteous Employees
Knowledgeable Employees
Friendly Employees
Helpful Employees
Accuracy of Billing
Quick Service
Courteous Employees
Billing Clarity
Billing Timeliness
Good Value
Competitive Pricing
Marketing Environment
All the actors and forces influencing the companys
ability to transact business effectively with its target
market.

Includes:
Microenvironment - forces close to the
company that affect its ability to serve its
customers.
Macroenvironment - larger societal forces
that affect the whole microenvironment.
The Marketing Environment
Company
Demographic
Economic
Natural
Technological
Political
Cultural
Company
Customers
Intermediaries
Suppliers
Competitors
Publics
The Microenvironment
Company
Customers
Publics
Suppliers
Competitors
Intermediaries

Forces Affecting a
Companys Ability to
Serve
Customers

The Companys
Microenvironment
Companys Internal Environment- functional
areas such as top management, finance, and
manufacturing, etc.

Suppliers - provide the resources needed to
produce goods and services.

Marketing Intermediaries - help the company to
promote, sell, and distribute its goods to final
buyers.

The Companys Microenvironment
Customers purchase a companys goods
and services.

Competitors - those who serve a target
market with similar products and
services.

Publics - any group that perceives itself
having an interest in a companys ability
to achieve its objectives.
4- 47
The Macroenvironment
Customer markets must be studied.
Consumer, business, government, reseller and
international markets exist.
Successful companies provide better
customer value than the competition.
Size and industry position help to determine
the appropriate competitive strategy.
Various publics must also be considered.
The Macroenvironment
Demographic
Technological
Cultural
Economic
Political
Natural



Forces that Shape
Opportunities
and Pose Threats
to a Company



The Companys
Macroenvironment
Demographic - monitors population in terms of age,
sex, race, occupation, location and other statistics.

Economic - factors that affect consumer buying
power and patterns.

Natural - Concern for the natural environment
has grown steadily, increasing the importance of
these trends:
Shortage of raw materials
Increased pollution
Increased governmental intervention


Economic Environment
Changes
in Consumer
Spending
Patterns
Economic
Development
Changes
in Income
Key
Economic
Concerns for
Marketers
The Companys
Macroenvironment
Technological - forces that create new
product and market opportunities.

Political - laws, agencies and groups that
influence or limit marketing actions.

Cultural - forces that affect a societys basic
values, perceptions, preferences, and
behaviors.
Technological Environment
Rapid Pace of
Change
High R & D
Budgets
Focus on Minor
Improvements
Increased
Regulation
Issues in the Technological
Environment
Political Environment


Greater
Concern for
Ethics
Increased
Legislation
Changing
Enforcement Key
Trends in the
Political
Environment
Cultural Environment
Of
Organizations
Of
Nature
Of
Oneself
Of
Society
Of
the Universe
Of
Others Views
That Express
Values
Responding to the
Marketing Environment
Environmental Management Perspective
Taking a proactive approach to managing
the microenvironment and the
macroenvironment to affect changes that
are favorable for the company. How? Hire
lobbyists , run advertorials, file law suits
and complaints, and form agreements.