Introduction to Marketing

What we shall look at

The importance of marketing The scope of marketing Some fundamental marketing concepts Tasks for marketing managers

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

Marketing more thoughts

Meeting needs profitably Identifying and meeting human & social needs

Marketing is a societal process by which individuals

and groups obtain what they need and want through creating, offering and freely exchanging products & services of value with others

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

What is marketed?
Goods Services Events Experiences Persons Places Properties Organizations Information Ideas

What is a product?

Needs, Wants, Demands

Needs basic human requirements such as food, air, shelter, clothing, education, recreation, communication etc

Wants specific satisfiers of needs

Demands wants for specific products backed by the ability and desire to pay
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5 Types of Needs
1. Stated needs: I am looking for an inexpensive car 2. Real needs: operating costs low not initial price 3. Unstated needs: good service expected from dealer 4. Delight needs: dealer should include music system free 5. Secret needs: wants friends to perceive him as savvy

Key Customer Markets

Consumer markets: aimed at individuals / families Business markets: aimed at institutions Global markets: across countries / geographies Government & Non-profit markets

Consider also:
Marketplaces Market spaces Meta-markets
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Value Proposition

A set of benefits offered to customers to satisfy their needs

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Offerings & Brands

The intangible value proposition is made tangible or physical in the form of an offering a combinations of physical products, services, information, experiences

A brand is an offering from a known source and is a valuable asset of the source organization
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Value & Satisfaction

Value: sum of perceived tangible & intangible benefits compared with costs to customers

Satisfaction: customers judgment of products perceived performance compared to expectations

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Marketing Channels
3 types
Communication channels: to deliver and

receive messages (media, phones, Internet)

Distribution channels: to display, sell, deliver

(distributors, retailers, agents)

Service channels: to carry out transactions

(banks, transport companies, insurance)

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Competition

Actual & potential rival offerings and substitutes

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Marketing Environment
Task environment

Broad environment

All engaged in producing, distributing, promoting Company, suppliers, channels, customers, banks, insurance, telecom Agents, brokers, dealers

Demographic Economic Physical Technological Political-legal Socio-cultural

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New Marketing Realities

Major societal forces

Information technology Globalization De-regulation Privatization Increasing competition

Industry convergence
Consumer empowerment & resistance Retail transformation
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New Marketing Realities

New consumer capabilities

Substantial increase in purchasing power

Power to select from immense variety of products

Access to info about almost everything Easier interactions and order placement Ability to interchange info about products Ability to influence peer & public opinion

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New Marketing Realities

New company capabilities

Internet: powerful info & sales channel, increasing reach

Internet: research
Internet: internal & external communications, buzz Internet: interactive marketing Specialized media for target marketing, mobile marketing Customization, segment of one Internet: HR, Purchase etc
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Company orientation towards marketplace

Production concept: belief that consumers prefer products

that are widely available & inexpensive focuses on production efficiency, low costs, mass distribution
Product concept: buyers want products offering high quality /

performance / innovative features

Selling concept: company undertakes aggressive selling

without which prospects will not buy

Marketing concept: customer-centric suit the product

to customers
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Segmentation Targeting Positioning

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Segmentation
One offering can rarely satisfy every customer people differ widely in their wants

Marketers need to divide the market into segments

Market segments are distinct groups of buyers & users based on their demographic, psychographic and behavioural characteristics
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Targeting
After identifying market segments, marketers need to decide which segments represent the greatest opportunity which are the most attractive
Factors are segment size & potential, marketers strengths & weaknesses, competition etc

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Positioning
The act of designing a companys offering and image to occupy a distinctive place in the minds of prospects

It results in the creation of a customer-focused value proposition by providing the reason why specific target customers should prefer the offering over competition
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SWOT Analysis
Analysis of an organizations Strengths and Weaknesses and Opportunities and Threats existing in the marketplace

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Product Life Cycle (PLC)

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Marketing Goals

Marketing Objectives or Marketing Tasks what the marketing strategy plan has to achieve in other words, the destination

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Marketing Strategy
The means of getting to the destination what resources are needed, how these should be deployed, what actions to carry out and also a plan for evaluation

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Levels of a Marketing Plan

Strategic
Target marketing

Tactical

decisions Value proposition Analysis of marketing opportunities

Product features Promotion Merchandising Pricing Sales channels Service

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Strategic Planning, Implementation, and Control Processes

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Business Unit Strategic Planning Process

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Marketing Management Tasks

Capturing marketing insights
Developing strategies & plans Connecting with customers

Building strong brands

Shaping market offerings Delivering value

Communicating value
Creating long-term growth
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