Ashish K. Pillai

What is Marketing?

Ashish K. Pillai

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.

Ashish K. Pillai

So Marketing Is…..An Activity…. performed by organizations (and individuals too) to achieve business and ultimately overall objectives

A Set of Institutions… formal and informal that exist to create a sync between consumers, organizations and other stakeholders

Processes….. A collection of tasks that aims to achieve the marketing and overall business objectives

Ashish K. Pillai

What Does Marketing Do??

C C D V T PCreate

Communicate

Deliver

Value

To Target Segment

Profitably

Ashish K. Pillai

The Key is

ValueMarketing…creates value for the customer, communicates that value, delivers that value to the target customer and helps the company make a profit doing all that!

Ashish K. Pillai

Value is the benefit the customer derives by purchasing and using your product.

Value

=Benefi

tsCosts

Ashish K. Pillai

Promoters

Customers

Employees Dealers & Suppliers

The Govt.

Consider Marketing the art and science of delighting the customers while keeping the other stakeholders happy!

Ashish K. Pillai

The Definition of Marketing is Dynamic!!!

The American Marketing Association, established in 1937 is responsible for defining marketing which is used as the default definition in most texts and by most business schoolsThe first official definition of marketing was adopted in 1935 by the National Association of Marketing Teachers, the predecessor of AMAThe 1935 Definition:

Marketing is the performance of business activities that direct the flow of goods and services from producers to consumers

Ashish K. Pillai

Evolution of the Definition of Marketing

In 1960, AMA decided to review the original 1935 definition of marketing and decided to leave it unchanged

In fact the 1935 definition stood till it was revised finally in 1985, 50 years later!!!

The 1985 definition:

Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives

Ashish K. Pillai

1935 Definition Vs 1985 Definition

The1935 Definition

The focus was on the physical exchange and on economies of doing so

The definition focuses primarily on operational issues

The 1985 Definition

The definition focused on “exchange” & clarified the role of 4Ps in achieving a satisfactory exchange

The definition was strategic in nature

Ashish K. Pillai

1985 Definition Vs 2007 Definition

The1985 Definition

The focus was on the exchange

The definition focuses primarily on operational issues

Kept the marketing function isolated

The 2007 Definition

The focus was on value creation and delivery

The definition was strategic in nature

Underlines the continuous nature of marketing and the interconnectedness of the marketing actors

Ashish K. Pillai

The Future Definition of Marketing…

The new definition of marketing talks about “value creation” and not about “value co-creation”. Value creation is something a company does and value co-creation is what the company does along with the customer. (Sheth & Uslay, 2007)

So value co-creation elevates the customer to the status of a partner! The next definition of marketing will have to incorporate value co-creation.

Do You Agree???

Ashish K. Pillai

What then is Marketing Management?

“Management” of all organizational activities that constitute marketing

According to Kotler:

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.

Ashish K. Pillai

Marketing is Not Selling!!!

There will always be a need for some selling…. But the aim of marketing is to make selling superfluous… The aim of marketing is to know and understand the customer so well that the product or service fits him and sells itself. Ideally, marketing should result in a customer who is ready to buy. All that should be needed is to make the product or service available.

Peter Drucker