3. • What is Marketing?
• Core Marketing Concepts
• Evolved Marketing
Concepts
• Role of Marketing in
today’s organization
• Advantages of Marketing
• Identifying the Target
Market
• Understanding market
behavior or consumer
behavior
4. o Process by which companies create
customer interest in products or services.
o Generates the strategy that underlies sales
techniques, business communication, and
business development.
o An integrated process through which
companies build strong customer
relationships and create value for their
customers and for themselves.
5. o Used to identify the customer, to keep
the customer, and to satisfy the customer.
o The adoption of marketing strategies
requires businesses to shift their focus from
production to the perceived needs and
wants of their customers as the means of
staying profitable.
o The term marketing concept holds that
achieving organizational goals depends on
knowing the needs and wants of target
markets and delivering the desired
satisfactions.
6. o It proposes that in order to satisfy its
organizational objectives, an organization
should anticipate the needs and wants of
consumers and satisfy these more
effectively than competitors.
o Marketing is defined by the American
Marketing Association (AMA) as
“Marketing is an organizational function
and a set of processes for creating,
communicating and delivering value to
customer relationships in ways that benefit
the organization and its stake holders.”
8. 1. Needs, Wants & Demands
o Needs are the basic human requirements.
o Need for air, food, water, clothing and shelter.
o Need for recreation, education and
entertainment.
o Needs become wants when directed towards
specific objects that may satisfy the need.
e.g.: along with food one may want
hamburgers, French fries & a soft drink.
o Demands are wants for specific products
backed by an ability to pay.
9. o Types of needs:-
i. Stated needs (customer wants an
inexpensive car).
ii. Real needs (customer wants an inexpensive
car whose operating cost is low).
iii. Unstated needs (customer expects good
service from the dealer).
iv. Delight needs (customer would like the
dealer to include an on board navigation
system).
v. Secret needs (customer wants friends to see
him as a savvy customer)
10. 2. Target Markets, Positioning and
Segmentation
o Marketer cannot satisfy everyone in the
market.
o Starting is by dividing the market into
different segments.
o Identification of target markets.
o Firm develops a market offering that it
positions in the mind of the target buyers as
delivering some central benefit(s).
11. 3. Offerings & Brands
o A value proposition is made with a set of
benefits that is offered to the customers to
satisfy their needs.
o A brand is an offering from a known source.
E.g.- Burgers from McDonald, Noodles from
Maggie, etc.
4. Value & Satisfaction
o Success of the offering: Product delivers value
and satisfaction to the customers.
o Value: Combination of quality, service and price
(QSP).
12. 5. Marketing Channels
To reach a target market, types of channels used:-
a. Communication Channel: newspapers,
magazines, radio, television, mail, internet,
etc.
b. Distribution channel: selling or delivering
the physical product to the buyer/user.
Includes distributer, wholesaler, retailer or
agent.
c. Service channels: warehouse, transportation
companies, banks and insurance companies
that facilitate transaction.
13. 6. Supply Chain
o Stretches from raw materials to components to
final product and that are carried to final
buyer.
7. Competition
o Includes all the actual and potential rival
offerings and substitutes a buyer might
consider.
E.g.- tea of different brands, steel, etc.
14. 8. Marketing Environment
Includes:
a. Task environment:
o Includes agencies that are involved in
producing, distributing and promoting the
offering.
o These are the companies, suppliers and
service suppliers ( adertising agencies,
banking and insurance co., transportation
co. and telecommunication co.)
15. b. Broad environment:
Consists of:-
i. Demographic environment
ii. Economic environment
iii. Physical environment
iv. Technological environment
v. Political-legal environment
vi. Social-cultural environment
o Attention to these environments should
be paid and accordingly the marketing
strategies are timely adjusted.
16. EVOLVED MARKETING CONCEPTS
The
Production
Concept
The
The
Holistic
Product
Marketing
Concept
Concept
The The
Market Selling
Concept Concept
17. 1. THE PRODUTION CONCEPT
o One of the oldest concepts.
o It holds that consumer prefers the products
that are inexpensive and widely available.
o Managers of production-oriented business
concentrate on achieving high production
efficiency, low costs and mass distribution.
o Concept often used when a company wants
to expand the market.
18. 2. THE PRODUCT CONCEPT
o Customers favors the products that offer the
most quality, performance, or innovative
features.
o Managers focus on making superior
products and improving them over the
time.
o A new or improved product is successful
only if it is priced, distributed , advertised
and properly sold.
19. 3. THE SELLING CONCEPT
o Consumers and businesses, if left alone, wont
buy enough of the organization’s products.
o The concept is practiced most aggressively
with unsought goods, goods that buyers do not
think of buying, such as insurance and
encyclopedia.
o Also practiced in overcapacity.
o Aim is to sell what is made rather than what
market wants.
20. 4. THE MARKETING CONCEPT
o Emerged in mid 1950s.
o Product-centered “make-and-sell”
philosophy shifted to a customer-centered
“sense-and-respond” philosophy.
o Job to find the right product for the right
customer.
o Key to achieve organizational goals is by
being more effective than the competitors
in creating, delivering and communicating
with the customers.
21. MARKETING
SELLING
SELLING MARKETING
1. Focuses on the 1. On the needs of the
needs of the seller. customer.
2. Preoccupied with the 2. Idea of satisfying the
idea of seller’s need needs of the
of converting his customer by means of
product into cash. the product.
22. 5. THE HOLISTIC
MARKETING CONCEPT
o Based on the development, design and
implementation of marketing programs
processes, and activities that recognizes
their breadth and interdependencies.
o Holistic market recognizes that everything
matters in marketing.
24. The Selling Concept
Factory Existing product Selling & Promotion Profit through
sales volume
Starting Point Focus Means End
The Marketing Concept
Market Customer needs Integrated marketing Profits through
customer satisfaction
Starting Point Focus Means End
The Product Concept
Product Product quality Improvement & innovation Profits through
better product feature
Starting Point Focus Means End
The Production Concept
Factory Output Production quantity Profits through
and efficiency vol. & low prod. cost
Starting Point Focus Means End
25. ROLE OF MARKETING
o Lifeblood and the backbone of any organization.
o Marketing conceives the product, prices it, distributes it
among all the logistically feasible areas and promotes it the
best way it should (basic four Ps: Product, Price, Promotion &
Place).
o Also formulates the most effective strategies in order for the
firm to cope up and meet the ever-changing and fast-paced
trends and demands of the business environment.
o Conducts research, creates short, mid and long-term plans
and develops feasibility studies on whether a certain venture
would become a click in the market.
o The most essential and vital element of any organization since
it is the one that produces profit and customers - and retains
them for the firm.
26. ADVANTAGES OF MARKETING
o Developing products that satisfy needs, including
products that enhance society’s quality of life
o Creating a competitive environment that helps lower
product prices
o Developing product distribution systems that offer
access to products to a large number of customers
and many geographic regions
o Building demand for products that require
organizations to expand their labour force
o Offering techniques that have the ability to convey
messages that change societal behaviour in a positive
way (e.g., anti-smoking advertising)
27. IDENTIFYING THE TARGET
MARKET
o Target market: the type of person that will want
or need the product or services.
o By targeting a specific market: save money by
spending less on marketing and increase
marketing.
o Process of identifying a target market: market
segmentation.
o Using market segmentation, a business can use
a top-down approach to identifying a target
group or niche.
28. o Efforts can be concentrated on targeted
marketing to attract a specific consumer
group.
o After target market is identified, it is learnt
how to drive customers to the product,
regardless of the industry.
o Done using market research, which is used
as a marketing strategy.
o Market research is the process of using
various techniques to collect, analyse, and
report data about potential consumer
groups.
29. o Market research helps in identifying
quantitative and qualitative patterns in
consumer groups.
o Quantitative consumer data refers to
numbers such as:-
age
income
family size
o Qualitative data relies on characteristics such
as:-
education
occupation
personality.
30. oThree steps to follow when
identifying the market:
1) Identify Why A Customer Would
Want To Buy Your Product/Service
2) Segment the Overall Market
3) Research the Market
31. Aspects of market segmentation
1. Demographic Environment:
Age: Teenagers targeted by acne medication company.
Income: A person earning Rs.200,000 p.m. is more likely
to purchase a Mercedes than a person earning Rs.10,000.
Family size: Wholesale distributors that keep prices low
by selling in bulk would target larger families.
Education: A calculator company may target high school
math students.
Occupation: A shoe company might sell a shoe targeted
for construction workers.
Gender: A handbag company will target women.
Nationality/Race: A small business selling foodstuffs
from India would target the Indian community.
.
32. 2. Geography Environment:
Region of the world: The shoe company, Puma,
most aggressively targets consumers in Latin
America and Europe for their soccer shoes.
Climate: A snow plough manufacturer will target
areas where it snows.
3. Behavioural Environment:
Brand loyalty: Apple targets a niche of
consumers loyal to its products.
Value of quality: Higher-end watch companies
like Rolex target consumers that value high-
quality timepieces.
33. 4. Psychographic Environment:
Personality: A person who likes to show off is
more likely to buy a Hayabusa than a reserved
person.
Lifestyle: A shoe company like Nike, that sells
sports shoes would target sportsperson with their
advertising.
Interests: Stores that sell arts and crafts materials
target hobbyists and students alike.
34. CLASSIFYING THE MARKET
o Market can be classified as follows on the basis
of volume of business, nature of transaction,
position of seller, area, contents of transaction, etc.
On the basis of volume of transaction:
1. Wholesale market: The middlemen buy the
goods in bulk form the producers and
manufacturers.
2. Retail market: Goods are sold in small quantity
directly to the consumer.
35. On the basis of nature of transaction:
1. Spot market:
It is a ready market where the sellers on the
spot physically hand over goods to the buyers.
An exchange of goods for money at the same
time.
2. Future market:
It is a market in which the buyers and sellers
make agreement for delivery of goods in
future. The contract is made on a certain date
but the goods will be delivered in future.
36. On the basis of position of seller:
1. Primary market:
This is the market where the producers of goods sell
their farm products to the wholesalers and their
agents.
2. Secondary market:
This is the market where the wholesalers sell their
goods to the retailers for onward selling to the
consumer. The middlemen buy goods from
producers and manufacturers and sell to the
retailers.
3. Terminal market:
It is the market where goods are purchased for final
use or consumption. The retailers sell their goods to
consumers.
37. On the basis of area:
1. Local market:
A place for the purchase and sale of different goods within the
city. The buyers and sellers of one city assemble to buy and sell.
2. Regional market:
Consists of many cities and districts of a particular area. The
buyers and sellers of different villages, cities and districts
assemble to buy and sell the different commodities.
3. National market:
Consists of the whole area of country. The buyers and sellers
from all over the country take part in buying and selling.
4. International market:
Consists of the whole world. The buyers and sellers from the
whole world meet and exchange their foods and services. The
commodities can be bought and sold at different places in the
world.
38. 5. Commodity market:
A market where the different types of
commodities are bought and sold. The wheat,
rice, etc. are the commodities that are
exchanged by the buyer and sellers.
6. Money market:
A market where the financial institutions deal
in money. The banks and financial
institution are engaged in borrowing and
lending of funds.
7. Stock exchange market:
A market where shares and debentures of
different companies are bought and sold.
39. CONSUMER BEHAVIOR
• Also called as consumer psychology.
• Study of when, why, how, and where people do or
do not buy product.
• Blends elements from psychology, sociology,
social anthropology and economics.
• Studies characteristics of individual consumers
such as demographics and behavioural variables.
• Assesses influence on the consumer from groups
such as family, friends, reference groups, and
society in general.
40. • A greater importance is also placed on
consumer retention, customer relationship
management, personalisation,
customisation and one-to-one marketing.
41. Four main applications of consumer
behaviour:
1. For marketing strategy
2. Public policies
3. Social marketing
4. Studying consumer behaviour should
make us better consumers
42. 1. For marketing strategy
• For making better marketing campaigns.
• Companies that introduce new products must
be well financed so that they can stay afloat
until their products become a commercial
success
• It is important to please initial customers,
since they will in turn influence many
subsequent customers’ brand choices.
43. 2. Public policies
• Companies come to know what and how to
promote their products.
• E.g.,- Accunate (drug used to cure acne)-
Known to cause deformities in the foetus.
3. Social marketing
• Involves getting ideas across to consumers
rather than selling something.
• E.g.,- AIDS awareness for anti-HIV drugs.
44. 4. Studying consumer behaviour should
make us better consumers
e.g.- Paying less for a small pack of Amrutanjan
rather than paying more for a larger pack.
