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WELCOME
WELCOME TO
TO
EXCITING
EXCITING WORLD
WORLD OF
OF
MARKETING
MARKETING

INTRODUCTION TO MARKETING

PROF. ISHWAR C. GUPTA Ph.D.

 Copyright 2000 Prentice Hall

What
What is
is Marketing?
Marketing?
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• Process by which individuals and groups

obtain what they need and want through
creating and exchanging products and value
with others.

• More simply: Marketing is the delivery of

customer satisfaction at a profit.

 Copyright 2000 Prentice Hall

 1-3
Core
Core Marketing
Marketing Concepts
Concepts

Products
Needs, wants, and
and demands Services

Core
Core
Marketing
Marketing
Concepts
Concepts
Markets
Value, satisfaction,
and quality

Exchange, transactions,
and relationships

 Copyright 2000 Prentice Hall

What
What Motivates
Motivates aa Consumer
Consumer
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to
to Take
Take Action?
Action?
• Needs - states of felt deprivation including physical
needs for food, social needs for belonging and
individual needs for self-expression. i.e. I am thirsty.

• Wants - form that a human need takes as 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.

 Copyright 2000 Prentice Hall

What
What Will
Will Satisfy
Satisfy Consumer’s
Consumer’s
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Needs
Needs and
and Wants?
Wants?

• Products - anything • Services - activities or

that can be offered to a
market to satisfy a
need or want.
• Products also include:
Persons, Places,
Organizations,
Activities, and Ideas.
benefits offered for
sale that are
essentially intangible
and don’t result in the
ownership of anything.
• Examples: banking,
airlines, haircuts, and
hotels.

 Copyright 2000 Prentice Hall

How
How Do
Do Consumers
Consumers Choose
Choose
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Choose
Choose Among
Among Many
Many Products
Products
and
and Services?
Services?
• Customer Value - difference between the value the
customer gains from owning and using a product
and the cost of obtaining the product.

• Customer Satisfaction - depends on the product’s

perceived performance in delivering value relative
to a buyer’s expectations.

• Both are closely linked to Quality and Total

Quality Management (TQM).
(TQM)

 Copyright 2000 Prentice Hall

How
How do
do Consumers
Consumers Obtain
Obtain
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Products
Products and
and Services?
Services?
• Exchanges - act of obtaining a desired object from
someone by offering something, such as money,
another good, or a service, in return.

• Transactions - trade of values between parties: one

party gives X to another party and gets Y in return.

• Relationship Marketing - building long-term

relationships with valued consumers, distributors,
dealers, and suppliers.

 Copyright 2000 Prentice Hall

 1-8
A
A Marketing
Marketing Network
Network
Build a Network of Relationships with Key
Stakeholders, and Profits Will Follow.

Customers
Customers
Others
Others Employees
Employees

Ad Company
Company
Ad Agencies
Agencies Suppliers
Suppliers

Retailers
Retailers Distributors
Distributors

 Copyright 2000 Prentice Hall

Relationship
Relationship Marketing
Marketing Tools
Tools
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The Goal is to Deliver Long-Term Value to Customers

and Build Customer Satisfaction and Retention. How?

Adding
Adding Financial
Financial Benefits
Benefits
i.e.
i.e. Frequent
Frequent Flier
Flier Programs
Programs

Adding
Adding Social
Social Benefits
Benefits
i.e.
i.e. Focusing
Focusing on
on Individual
Individual
Needs
Needs &
& Wants
Wants

Adding
Adding Structural
Structural Ties
Ties
i.e.
i.e. Special
Special Equipment
Equipment

Seeking
Seeking Profitable
Profitable Customers
Customers
i.e.
i.e. Who
Who Can
Can We
We Serve
Serve
Effectively?
Effectively?
 Copyright 2000 Prentice Hall
Who
Who Purchases
Purchases Products
Products
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and
and Services?
Services?

Market
Market--buyers
buyers Actual
Actual
who
who share
share aa Buyers
Buyers
particular
particular need
need
or
or want
want that
thatcan
can
be
besatisfied
satisfiedthrough
through
exchanges
exchangesand and
relationships
relationships Potential
Potential
Buyers
Buyers

 Copyright 2000 Prentice Hall

Modern
Modern Marketing
Marketing System
System
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Suppliers
Suppliers

Company
Company
Competitors
Competitors (Marketer)
(Marketer)

Environment
Environment

Marketing
Marketing
Intermediaries
Intermediaries

End
End User
User
Market
Market

 Copyright 2000 Prentice Hall

 1-12

Speed
Speed Bump:
Bump:
Linking
Linking the
the
Concepts
Concepts
• In your own words, what is Marketing?

• What does Marketing mean to you?

• What brand of athletic shoes did you

purchase last?

• Describe your relationship with whatever

company made the shoes you purchased.
 Copyright 2000 Prentice Hall
Marketing
Marketing Management
Management
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Marketing Management
The analysis, planning, implementation, and control of programs
designed to create, build, and maintain beneficial exchanges with
target buyers to achieve organizational objectives.

Demand Management
Finding and increasing demand, also
changing or reducing demand

Profitable Customer Relationships

Attracting new customers; creating transactions
and
retaining current customers; building relationships
 Copyright 2000 Prentice Hall
 1-14
Marketing
Marketing Management
Management
Philosophies
Philosophies
••Consumers
Consumersfavor
favorproducts
productsthat
thatare
are
Production
Production Concept
Concept available
availableand
andhighly
highlyaffordable
affordable
••Improve
Improveproduction
productionand
anddistribution
distribution
••Consumers
Consumersfavor
favorproducts
productsthat
thatoffer
offer
Product
Product Concept
Concept the
themost
mostquality,
quality,performance,
performance,and
and
innovative
innovativefeatures
features
••Consumers
Consumerswill
willbuy
buyproducts
productsonly
onlyifif
Selling
Selling Concept
Concept the
thecompany
companypromotes/
promotes/sells
sellsthese
these
products
products
••Focuses
Focuseson onneeds/
needs/wants
wantsof
oftarget
target
Marketing
Marketing Concept
Concept markets
markets&&delivering
deliveringsatisfaction
satisfaction
better
betterthan
thancompetitors
competitors
••Focuses
Focusesononneeds/
needs/wants
wantsof
oftarget
target
Societal
Societal Marketing
Marketing Concept
Concept markets
markets&&delivering
deliveringsuperior
superiorvalue
value
which
whichimproves
improvescustomers
customersand
and
society’s
society’swell-being
well-being
 Copyright 2000 Prentice Hall
Selling
Selling &
& Marketing
Marketing
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Concepts
Concepts Contrasted
Contrasted
Starting Focus Means Ends
Point
Selling Profits
Existing
Factory and through Sales
Products
Promoting Volume

The
The Selling
Selling Concept
Concept

Profits
Customer Integrated
Market through Customer
Needs Marketing
Satisfaction

The
The Marketing
Marketing Concept
Concept

 Copyright 2000 Prentice Hall

 1-16
Societal
Societal Marketing
Marketing Concept
Concept
Society
Society
(Human
(Human Welfare)
Welfare)

Societal
Societal
Marketing
Marketing
Concept
Concept

Consumers
Consumers Company
Company
(Wants)
(Wants) (Profits)
(Profits)

 Copyright 2000 Prentice Hall

 1-17

Speed
Speed Bump:
Bump:
Linking
Linking the
the
Concepts
Concepts
• In your own words, what is marketing
management?

• What does it seek to accomplish?

• What marketing management philosophy

appears to guide Nike?

• Is there one marketing management

philosophy that’s best for all companies?
 Copyright 2000 Prentice Hall
New
New Marketing
Marketing Challenges
Challenges 1-18

New
Marketing
Landscape &
Information Nonprofit
Technology Marketing

Emerging
Emerging
Ethical Challenges
Challenges Globalizatio
Concerns n
Changing
World
Economy

 Copyright 2000 Prentice Hall