MARKETING

DEFINITIONAccording to American Marketing Association (1948) - "Marketing

is the performance of business activities directed toward, and incident to, the flow of goods and services from producer to consumer or user.“

AMA (1960) - "Marketing is the performance of business activities that direct the flow of goods and services from producer to consumer or user.“

According to Kotler (2000) - "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.“

According to AMA (2004) - "Marketing is an organisational function and set of processes for creating, communicating and delivering value to customers and for managing relationships in a way that benefits both the organisation and the stakeholder."

What Is Marketing?

• Marketing is about identifying and meeting human and social needs. One of the shortest good definitions of marketing is “meeting needs profitably.” 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.

• 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?1. GOODS Physical goods constitute the bulk of most countries’ production and

marketing efforts.2. SERVICES As economies advance, a growing proportion of their activities focuses

on the production of services.3. EVENTS Marketers promote time-based events, such as major trade shows, artistic

performances, and company anniversaries.4. EXPERIENCES By orchestrating several services and goods, a firm can create, stage,

and market experiences5. PERSONS Artists, musicians, CEOs, physicians, high-profile lawyers and financiers,

and other professionals all get help from celebrity marketers.6. PLACES Cities, states, regions, and whole nations compete to attract tourists,

residents, factories, and company headquarters.7. PROPERTIES Properties are intangible rights of ownership to either real property

(real estate) or financial property (stocks and bonds). They are bought and sold, and these exchanges require marketing.

8. ORGANIZATIONS Organizations work to build a strong, favorable, and unique image in the minds of their target publics.

9. INFORMATION The production, packaging, and distribution of information are major industries.

10. IDEAS Every market offering includes a basic idea.

Who Markets?

MARKETERS AND PROSPECTS A marketer is someone who seeks a response

—attention, a purchase, a vote, a donation—from another party, called the prospect. If two parties are seeking to sell something to each other, we call them both marketers.

DEMAND STATES1. Negative demand—Consumers dislike the product and may even pay

to avoid it. 2. Nonexistent demand—Consumers may be unaware of or

uninterested in the product. 3. Latent demand—Consumers may share a strong need that cannot

be satisfied by an existing product. 4. Declining demand—Consumers begin to buy the product less

frequently or not at all. 5. Irregular demand—Consumer purchases vary on a seasonal,

monthly, weekly, daily, or even hourly basis.6. Full demand—Consumers are adequately buying all products put

into the marketplace. 7. Overfull demand—More consumers would like to buy the product

than can be satisfied. 8. Unwholesome demand—Consumers may be attracted to products

that have undesirable social consequences.

Structure of Flows in a Modern Exchange Economy

A Simple Marketing System

KEY CUSTOMER MARKETS1. Consumer Markets :- Companies selling mass consumer goods and

services. 2. Business Markets :- Companies selling business goods and services 3. Global Markets:- Companies in the global marketplace must decide

which countries to enter; how to enter each; 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.

4. Non-profit and Governmental Markets:- Companies selling to non-profit organizations with limited purchasing power such as churches, universities, charitable organizations, and government agencies need to price carefully.

Core Marketing Concepts

• Needs, Wants, and Demands Needs are the basic human requirements such as for air, food, water, clothing, and shelter. Humans also have strong needs for recreation, education, and entertainment. These needs become wants. Demands are wants for specific products backed by an ability to pay

TYPES OF NEEDS1. Stated needs:- The customer wants an inexpensive

car.2. Real needs:- The customer wants a car whose

operating cost, not initial price, is low3. Unstated needs:- The customer expects good service

from the dealer. 4. Delight needs:- The customer would like the dealer to

include an onboard GPS navigation system. 5. Secret needs:- The customer wants friends to see him

or her as a savvy consumer.

Customer value triad

1. Quality2. Service3. Price

Value perceptions increase with quality and service but decrease with price

Marketing Channels

1. Communication channels deliver and receive messages from target buyers.

2. Distribution channels is used to display, sell, or deliver the physical product or service(s) to the buyer or user.

3. Service channels that include warehouses, transportation companies, banks, and insurance companies

Marketing Environment

• The Task environment includes the actors engaged in producing, distributing, and promoting the offering. These are the company, suppliers, distributors, dealers, and target customers.

• The broad environment consists of six components: demographic environment, economic environment, social-cultural environment, natural environment, technological environment, and political-legal environment.

The New Marketing Realities• Network information technology• Globalization• Deregulation• Privatization• Heightened competition• Industry convergence• Retail transformation• Disintermediation• Consumer buying power• Consumer information• Consumer participation• Consumer resistance

New Company Capabilities• Marketers can use the Internet as a powerful information and sales

channel.• Marketers can collect fuller and richer information about markets,

customers, prospects, and competitors• Marketers can tap into social media to amplify their brand message• Marketers can facilitate and speed external communication among

customers• Marketers can send ads, coupons, samples, and information to customers

who have requested them or given the company permission to send them.• Marketers can reach consumers on the move with mobile marketing.• Companies can make and sell individually differentiated goods.• Companies can improve purchasing, recruiting, training, and internal and

external communications.• Companies can facilitate and speed up internal communication among

their employees by using the Internet as a private intranet.• Companies can improve their cost efficiency by skilful use of the Internet

Evolution of earlier marketing ideas

1. The Production Concept:- The production concept is one of the oldest concepts in business. It holds that consumers prefer products that are widely available and inexpensive.

2. The Product Concept:- The product concept proposes that consumers favour products offering the most quality, performance, or innovative features.

3. The Selling Concept :- The selling concept holds that consumers and businesses, if left alone, won’t buy enough of the organization’s products.

4. The Marketing Concept:- The marketing concept holds that the key to achieving organizational goals is being more effective than competitors in creating, delivering, and communicating superior customer value to your target markets.

5. The Holistic Marketing Concept:- The 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 Dimensions

Marketing-mix

• Product• Price• Place• Promotion• People• Process• Physical Evidence

The Marketing Process

Core customer and Marketplace Concepts

(1) Needs, wants, and demands;(2) Market offerings (products, services, and

experiences); (3) Value and satisfaction;(4) Exchanges and relationships; (5) Markets.

A Modern Marketing System

Selling and Marketing Concepts Contrasted

Three Considerations Underlying the Societal Marketing Concept

Customer relationship management

The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.

Customer-perceived value:-The customer’s evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of competing offers.

Customer satisfaction:- The extent to which a product’s perceived performance matches a buyer’s expectations

An Expanded Model of the Marketing Process

Classification of Marketing

1. Macro marketing Versus Micromarketing2. Service Marketing Versus Goods Marketing3. For-profit Marketing Versus Nonprofit Marketing4. Mass Marketing, Direct Marketing, and Internet

Marketing5. Local, Regional, National, International, and

Global Marketers6. Consumer Goods Marketing and Business-to-

Business (Industrial) Marketing

KEYS TO MARKETING SUCCESS1. To realize that establishing customer satisfaction

should be the company's number-one priority.2. to establish a company image that clearly reflects the

values and aspirations of the company to employees, customers, intermediaries, and the general public.

3. Marketing is the aspect of the business that customers see.

4. The business should develop a unique strategy that is consistent with the circumstances that it faces.

5. Technological progress dictates how marketing will be performed in the future.

THE MARKET

A group of potential buyers with needs and wants and the purchasing power to satisfy them.

The Market Is PeopleThe Market Is a PlaceThe Market Is an Economic Entity

TYPES OF MARKETS

(1) Consumer markets. (2) Industrial markets. (3) Institutional markets. (4) Reseller markets.

For a product provider, the person(s) or organization(s) selected as potential customers are referred to as the target market.