Meaning of marketing

Product oriented definition: American

marketing association the
performance of business activities that
direct the flow of goods and services
through producers to consumers or
users.
Limitations:
Exclusion of non- economic activities
e.g. Population control, lack of
consumer orientation,
Lack of emphasis on after sale

Consumer oriented
definition
Cundiff & still marketing is the
business process by which products
are matched with the markets and
through which transfer of ownership
are effected
American marketing association
marketing is the process of planning
and executing the conception,
pricing, promotion, distribution of
ideas, goods and services to create
exchange that satisfy the individual

System oriented
Stanton marketing is the total system
of interacting business activities
designed to plan, price, promote and
distribute want satisfying products to
target markets to achieve the
organizational objectives

Philip kotler
Marketing is a social and managerial
process by which individuals and
groups obtain what they need and
want through creating, offering and
exchanging products of value with
others
Essence is the generation of value to
customers and marketers.

Nature of marketing
Is consumer oriented
Starts and ends with the consumer
Modern marketing precedes and succeeds
production
Guided by the element of business
Is science as well as an art
Is a system
exchange process is the essence of
marketing
Is goal oriented

Evolution of marketing
The evolution of commerce and
industry has been a gradual process.
Initial stages of developments
include
Household economy (self- sufficient)
Barter system (exchange of goods for
goods)
Village economy (agriculture became
main occupation)
Rise of Entrepreneurship

Evolution of marketing
Industrial revolution in the 18th &19th
century
Invention of spinning genny by James
Hargreaves, water frame by Richard
Further invention n innovation in
designing machinery for textiles, coal
mining, steam engines, development
in the means of transport, rise of
chemical industry, etc
Information revolution

Philip kotlers Scope of

marketing

Marketers are skilled in stimulating for

demand for companys products, but
this is too limited a view of the tasks
marketers perform.
They seek to influence the level, timing,
composition of demand.
Marketers are involved in 10 types of
entities: goods, services, experiences,
events, persons, place, properties,
organizations, information, ideas

scope

Goods are not only marketed by

companies but thanks to internet
even individuals can market goods.
E bay is worlds largest person to
person online trading community
It offers efficient one- to one trading
in an auction format on the web.

Scope
Services e.g. insurance
Experience (experimental marketing) try the
product or money back
Events: promoting events like sports e.g.
Pepsi- change the game ( football)
Persons : celebrity marketing is a major
business
SRk is a brand
Place e.g. Australia, Malaysia
Properties real estate, financial property
including bonds& stocks

scope
Organizations : some organizations
build a strong, favorable image in
minds of target market. e.g. reliance
services
Philips uses the tag lets make things
better amity university.
Information:
Ideas : e.g. say no to drugs
take the stairs
save energy.

scope a different
Function of exchange
approach

1. Buying and assembling

2. Selling and dividing
. Function of physical supply
1. Transportation
2. Storage or warehousing
. Facilitating functions
Financing
1. Standardization or grading
2. Market information
3. Risk taking

Marketing myopia( product concept)

Understood as organizations which concentrate
on one line of product rather than looking at
the want that they a here to satisfy.
For instance coca-cola focused on its soft drink
business missing the market for coffee- bars
and fresh juice bars that eventually impinged
on its soft drink business.
Mc Donalds is in danger of over focusing on
burgers while other diners are turning to
sandwiches, pizzas, etc..
These organizations are looking into the mirror
when they should be looking outside the
window.

Importance of marketing

Fulfills the needs of customers

Customer satisfaction and loyalty
Economic development
Firm, Time, place, possession utilities

Selling concept
Holds that consumers & businesses, if left
alone, will ordinarily not buy enough of
products.
This concept assumes that consumers show a
buying inertia or resistance and must be
coaxed into buying.
This concept is practiced aggressively with
unsought goods, that buyers normally do not
buy e.g. encyclopedias, political party selling
candidates
Their aim is to sell what they make rather than
make what the market wants.

Marketing concept
Emerged in 1950s
Instead of product-centered, make
and sell, we shift to consumer
centered, sense and respond
philosophy
The job is not to find right
customers for your product, but
the right product for your
customers.
Some punch line
Youre the boss ( United Airlines)

Distinction
a) Selling concept
Starting point
focus
ends
Factory
product

means
selling and promoting

profits through sales

b) Marketing
concept
Target market

customer needs
profit through

integrated marketing
customer satisfaction

Societal marketing concept

Whether customers needs and wants
should get priority over societys
concern for environment, poverty,
social overheads, etc?
Do excellent companies care more
for the society or customers?
Experts are of the view that
marketing concept side steps the
potential conflict among customer
wants & interest and long term social
welfare.

Instances
A fast food hamburger firm offers tasty
but unhealthy food.
Consumers prefer soft drink tetra packs
(e.g. frooti, plastic bottle- coke, pepsi)
Thus, societal marketing concept holds
that the firms task is to determine the
needs, wants and interest of the target
markets and deliver desired satisfaction
in such a way that it preserves and
enhances the customers and societys
well being.

Meta marketing
Meta market describes a cluster of
complementary products and services
that are closely related in the minds of
the consumer but are spread across a
diverse set of industries.
The automobile meta market consist of
automobile manufacturer, mechanics,
spare parts dealers, service shops, auto
magazine, auto sites on internet, new
and used car dealers, insurance
companies, financing companies.

Best example
Edmunds (www.edmunds.com), is a
website where a car buyer can find
the stated features and prices of
different automobiles and easily click
to other sites to search for the lowest
price dealer, for financing for car
accessories, and for used cars at
bargain prices.
Metamediaries can also serve other
meta markets such as home
ownership market, parenting and

Production oriented
Assumption: consumer will buy those
goods that are inexpensive & readily
available.
Marketers approach: high product
efficiency, mass production, wide
distribution, and low cost
Suitability: developing nations,
markets with wide expansion scope

Product oriented
Assumption: consumer will favor products
with high quality, performance & innovative
features
Marketers approach: make superior product
and improve it overtime, result in marketing
myopia- given by Theodore Levitt (love your
customer and not product)
Failed product e.g. vacuum cleaner
Suitability: monopoly market for a product
in maturity stage in product life cycle.

Selling orientation
Assumption: consumers if left alone
will not buy the product, thus there is
a need to inform and persuade him
Marketers approach: hard/
aggressive selling (focus on 4th Ppromotion)
Suitability: unsought product with
(-)ive demand

Marketing orientation
Assumption: key of achieving
organizational goals lies in the
company being more effective than
its competitors in creating, delivering
and communicating superior
consumer value to its chosen target
market.
Marketers approach: love customers,
not the market, opposite of selling,
outside-in-approach, sense and
respond

4 pillars in marketing
orientation
Target market
Customer needs- stated real and
unstated, delight and secret needs,
responsive
mkting,
anticipative
mkting, creative mkting.
Integrated marketing- integrating
both marketing and managerial
functions
Profitability

Customer orientation
Assumption: customer is the king,
therefore focus on individual
customer needs
Marketers approach: one to one
market integration and value chain
to earn profit through customer
loyalty and life time value
Suitability: unique/ innovation and
high value products with limited
demand, introductory stage on PLC.

Market environment

According to Philip kotler marketing

environment refers to the external factors
and forces that affect the companys
ability to develop and maintain successful
transactions and relationships with its
target customers
Marketing environment is bifurcated into
two parts
1. Micro environment
2. Macro environment

Micro environment
It refers to the factors and forces in
the immediate environment which
affect the companys ability to serve
its market. They include the
suppliers, market intermediaries,
customers, competitors and public.