Marketing

• Marketing is the activity, set of institutions, and

processes for creating, communicating, delivering, and
exchanging offerings that have value for customers,
clients, partners, and society at large (AMA)

• We can differentiate between social and managerial

definition of marketing
• 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 other (Social definition).

• The art of selling the products (Managerial view

point)
What is marketed (Scope)
• Goods
• Services
• Events
• Experiences
• Persons
• Places
• Properties
• Organizations
• Information
• Ideas
Who markets and for whom?
• Marketers: Marketer is someone who seek a response- attention,
a purchase, a vote, donation, from another party called
prospects.

• Marketers are skilled at stimulating demand but this a very

limited view. They also seek to influence the level, timing,
composition of demand to meet the organizations’ objective
Eight demand states possible:

• Negative demand - consumers dislike the product and may even pay to avoid it.
• Nonexistent demand - consumers may be unaware of or uninterested in the product.
• Latent demand - consumers may share a strong need that cannot be satisfied by an
existing product.
• Declining demand - consumers begin to buy the product less frequently or not at all.
• Irregular demand - consumer purchases vary on a seasonal, monthly, weekly, daily
or even hourly basis.
• Full demand - consumers are adequately buying all products put into the
marketplace.
• Overfull demand - more consumers would like to buy the product than can be
satisfied.
• Unwholesome demand - consumers may be attracted to products that have
undesirable social consequences.
Structure of Flow in Modern Exchange
Economy
 Key Customer Markets
Consumer Markets: Companies selling mass consumer goods and
services such as juices, cosmetics, athletic shoes, and air travel.
Spend a great deal of time establishing a strong brand image by
developing a superior product and packaging, ensuring its packing it
with engaging communications and reliable service.

Business Markets: Companies selling business goods and services

often face well-informed professional buyers skilled at evaluating
competitive offerings.
. Advertising can play a role, but the sales force, the price, and the
company’s reputation may play a greater one.
• Global Markets: Companies in the global marketplace must decide
which countries to enter. How to enter (as an exporter, licenser, joint
venture partner, contract manufacturer, or solo manufacturer). How to
adapt product and service features to each country; how to price
products in different countries; and how to design communications
for different cultures. They face different requirements for buying and
disposing of property; cultural, language, legal and political
differences; and currency fluctuations.

Nonprofit and Governmental Markets: Companies selling to

nonprofit organizations with limited purchasing power such as
churches, universities, charitable organizations, and government
agencies need to price carefully. Lower selling prices affect the
features and quality the seller can build into the offering. Much
government purchasing calls for bids, and buyers often focus on
practical solutions and favor the lowest bid in the absence of
extenuating factors
Core marketing Concepts
Needs, Wants and Demand
Needs: are the basic human requirement such as air, food,
water, clothes, shelter, recreation, education,
entertainment.

Wants: Needs become want when directed to specific

object that might satisfy the need. Wants are shaped by our
society.

Demand: are wants for specific products backed by ability

to pay.
 Stated What the customer asks for

Real What the stated needs actually mean

Unstated What the customer also expects but does not ask for

Delight Needs that are not essential but would delight if met
Secret
Needs that the customer does not express, often intangible
in nature

• Responding only to stated need may shortchange the

consumers. To gain advantage , companies must help customers
learn what they want.

• Marketers don’t create market: Needs pre-exist marketers. They

promote the idea of need.
STP
Offerings and Brands
• An offering in marketing is the total offer to your customers.
An offering is more than the product/service itself and includes
elements that represent additional value to your customers, such
as availability, convenient delivery, technical support or quality
of service.

• A brand is an offering from known source. A brand name for

e.g. Apple carries many kind of associations in people’s mind
that make up its brand image: creative, innovative, cool.
 Marketing Channels

• 1. Communication Channels (Tv, Radio, Newspaper, mail,

telephone, etc )

• 2. Distribution Channels (help to display, sell, deliver to

buyers)

• 3. Service Channels (To carry out transactions with

potential buyers: warehouse, banks, insurance companies
etc.)
Paid, Owned and Earned Media

• Paid Media (TV, Magazine and display ads)

• Owned Media (Brochure, website, Blog, Facebook page

etc.

• Earned Media: consumers, press or outsiders voluntary

communicate something about the brand (WOM, Viral
marketing, Buzz etc )
Impressions and Engagement

• Reach: the number of people who see your content.

• Impressions: the number of times your content is displayed on

various media channels.

• Engagement: the number of interactions and active

involvement people have with your content (i.e.: likes,
comments, shares, retweets, etc.)
Value and Satisfaction
• Value: It is the ratio between what the customer gets (benefits)
and what he gives (cost). Product choice is guided by the value
provided by the product.
• Benefits of customer may be functional and emotional
• Cost can be monetary, time, energy and psychic.
Value is primarily a combination of quality, service and price
(qsp) called the customer value triad.

Satisfaction: It is the customer’s perceived performance from

a product in relation to the expectations.
 Supply Chain

• A supply chain is a system of organizations, people, activities,

information, and resources involved in moving
a product or service from supplier to customer. Supply chain
activities involve the transformation of natural resources, raw
materials, and components into a finished product that is
delivered to the end customer.
Competition
• Competition is the rivalry between companies selling similar
products and services with the goal of achieving revenue, profit,
and market share growth. Market competition motivates
companies to increase sales volume.

• Direct Competition :

• Indirect Competition
Marketing Environment
Company orientation towards the
marketplace
• Production Concept

• Product Concept

• Selling Concept

• Marketing Concept
Holistic Marketing concept

• A holistic marketing concept is based on the development,

design, and implementation of marketing programs, processes,
and activities that recognize their breadth and
interdependencies.

• Holistic marketing recognizes that ‘everything matters’ with

marketing and that a broad, integrated perspective is necessary
to attain the best solution.

• It consider business as a whole.

Marketing Mix
• A combination of factors that can be controlled by a company to
influence consumers to purchase its products. (Jerome E.
McCarthy, 1960s).
 4 A’s of Marketing
• This approach is organized around the values that matter most
to customers: Acceptability, Affordability, Accessibility and
Awareness (Jagdish Seth and Rajendra Sisodia).

• Taken together, these attributes are called the “4A’s.” The 4A

framework derives from a customer-value perspective based on
the four distinct roles that customers play in the market: seekers,
selectors, payers and users.

• For a marketing campaign to succeed, it must achieve high

marks on all four A’s, using a blend of marketing and non-
marketing resources.
The New Marketing Realties
Technology

• Staggering rate of technological improvement.

• E-commerce and m-commerce in emerging markets.
• Massive amount of information and data available to
consumers.
• Real time consumer response is available to marketers.
• Disintermediation
Globalization

• Heightened competition
• Deregulation
• Heavy investment by MNC’s in emerging market.
• Globalization changes innovation and product development as
organizations take idea from one country and apply to other
countries after being successful. (GE ultrasound scanners)
Social Responsibility

• Poverty
• Environment
• Animals safety
• CSR