1. What is Marketing? Core Marketing Concepts Evolved MarketingConcepts Role of Marketing intodays organization Advantages of Marketing Identifying the TargetMarket Understanding marketbehavior or consumerbehavior

2. o Process by which companies createcustomer interest in products or services.o Generates the strategy that underlies salestechniques, business communication, andbusiness development.o An integrated process through whichcompanies build strong customerrelationships and create value for theircustomers and for themselves. 3. o Used to identify the customer, to keepthe customer, and to satisfy the customer.o The adoption of marketing strategiesrequires businesses to shift their focus fromproduction to the perceived needs andwants of their customers as the means ofstaying profitable.o The term marketing concept holds thatachieving organizational goals depends onknowing the needs and wants of targetmarkets and delivering the desiredsatisfactions. 4. o It proposes that in order to satisfy itsorganizational objectives, an organizationshould anticipate the needs and wants ofconsumers and satisfy these moreeffectively than competitors.o Marketing is defined by the AmericanMarketing Association (AMA) asMarketing is an organizational functionand a set of processes for creating,communicating and delivering value tocustomer relationships in ways that benefitthe organization and its stake holders. 5. CORE MARKETING CONCEPTSNeeds, Wants & DemandsTarget Markets, Positioning & SegmentationOfferings & BrandsValue & SatisfactionMarketing ChannelsSupply ChainCompetitionMarketing Environment 6. 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. 7. 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) 8. 2. Target Markets, Positioning and Segmentationo Marketer cannot satisfy everyone in themarket.o Starting is by dividing the market intodifferent segments.o Identification of target markets.o Firm develops a market offering that itpositions in the mind of the target buyers asdelivering some central benefit(s). 9. 3. Offerings & Brandso A value proposition is made with a set ofbenefits that is offered to the customers tosatisfy their needs.o A brand is an offering from a known source.E.g.- Burgers from McDonald, Noodles fromMaggie, etc.4. Value & Satisfactiono Success of the offering: Product delivers value and satisfaction to the customers.o Value: Combination of quality, service and price(QSP). 10. 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 deliveringthe physical product to the buyer/user.Includes distributer, wholesaler, retailer oragent. c. Service channels: warehouse, transportationcompanies, banks and insurance companiesthat facilitate transaction. 11. 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. 12. 8. Marketing Environment Includes: a. Task environment:o Includes agencies that are involved inproducing, distributing and promoting theoffering.o These are the companies, suppliers andservice suppliers ( adertising agencies,banking and insurance co., transportationco. and telecommunication co.) 13. b. Broad environment:Consists of:-i. Demographic environmentii.Economic environmentiii. Physical environmentiv.Technological environmentv. Political-legal environmentvi.Social-cultural environmento Attention to these environments shouldbe paid and accordingly the marketingstrategies are timely adjusted. 14. EVOLVED MARKETING CONCEPTSThe ProductionConceptThe TheHolistic Product Marketing ConceptConcept TheThe Market Selling ConceptConcept 15. 1. THE PRODUTION CONCEPTo One of the oldest concepts.o It holds that consumer prefers the productsthat are inexpensive and widely available.o Managers of production-oriented businessconcentrate on achieving high productionefficiency, low costs and mass distribution.o Concept often used when a company wantsto expand the market. 16. 2. THE PRODUCT CONCEPTo Customers favors the products that offer themost quality, performance, or innovativefeatures.o Managers focus on making superiorproducts and improving them over thetime.o A new or improved product is successfulonly if it is priced, distributed , advertisedand properly sold. 17. 3. THE SELLING CONCEPTo Consumers and businesses, if left alone, wontbuy enough of the organizations products.o The concept is practiced most aggressivelywith unsought goods, goods that buyers do notthink of buying, such as insurance andencyclopedia.o Also practiced in overcapacity.o Aim is to sell what is made rather than whatmarket wants. 18. 4. THE MARKETING CONCEPTo Emerged in mid 1950s.o Product-centered make-and-sellphilosophy shifted to a customer-centeredsense-and-respond philosophy.o Job to find the right product for the rightcustomer.o Key to achieve organizational goals is bybeing more effective than the competitorsin creating, delivering and communicatingwith the customers. 19. MARKETINGSELLINGSELLING MARKETING 1. Focuses on the 1. On the needs of theneeds of the seller. customer. 2. Preoccupied with the 2. Idea of satisfying the idea of sellers needneeds of the of converting hiscustomer by means of product into cash. the product. 20. 5. THE HOLISTIC MARKETING CONCEPTo Based on the development, design andimplementation of marketing programsprocesses, and activities that recognizestheir breadth and interdependencies.o Holistic market recognizes that everythingmatters in marketing. 21. RelationshipCustomers, marketingChannel, PartnersCommunity, Legal,PerformanceEnvironment, Ethics, MarketingBrand & Customer Equity, Sales Revenue HolisticMarketing Marketing Deptt.,Internal senior Management, Marketing Other Deptt. Integrated Communications, Products & Services, Marketing Channels 22. The Selling ConceptFactoryExisting product Selling & PromotionProfit through sales volume Starting PointFocusMeans End The Marketing ConceptMarket Customer needs Integrated marketing Profits through customer satisfactionStarting PointFocusMeans EndThe Product ConceptProduct Product quality Improvement & innovation Profits through better product featureStarting PointFocusMeans End The Production ConceptFactoryOutputProduction quantityProfits through and efficiencyvol. & low prod. costStarting PointFocus Means End 23. ROLE OF MARKETINGo Lifeblood and the backbone of any organization.o Marketing conceives the product, prices it, distributes itamong all the logistically feasible areas and promotes it thebest way it should (basic four Ps: Product, Price, Promotion &Place).o Also formulates the most effective strategies in order for thefirm to cope up and meet the ever-changing and fast-pacedtrends and demands of the business environment.o Conducts research, creates short, mid and long-term plansand develops feasibility studies on whether a certain venturewould become a click in the market.o The most essential and vital element of any organization sinceit is the one that produces profit and customers - and retainsthem for the firm. 24. ADVANTAGES OF MARKETINGo Developing products that satisfy needs, includingproducts that enhance societys quality of lifeo Creating a competitive environment that helps lowerproduct priceso Developing product distribution systems that offeraccess to products to a large number of customersand many geographic regionso Building demand for products that requireorganizations to expand their labour forceo Offering techniques that have the ability to conveymessages that change societal behaviour in a positiveway (e.g., anti-smoking advertising) 25. IDENTIFYING THE TARGET MARKETo Target market: the type of person that will wantor need the product or services.o By targeting a specific market: save money byspending less on marketing and increasemarketing.o Process of identifying a target market: marketsegmentation.o Using market segmentation, a business can usea top-down approach to identifying a targetgroup or niche. 26. o Efforts can be concentrated on targetedmarketing to attract a specific consumergroup.o After target market is identified, it is learnthow to drive customers to the product,regardless of the industry.o Done using market research, which is usedas a marketing strategy.o Market research is the process of usingvarious techniques to collect, analyse, andreport data about potential consumergroups. 27. o Market research helps in identifyingquantitative and qualitative patterns inconsumer groups.o Quantitative consumer data refers tonumbers such as:- ageincomefamily sizeo Qualitative data relies on characteristics suchas:-educationoccupationpersonality. 28. oThree steps to follow when identifying the market:1) Identify Why A Customer Would Want To Buy Your Product/Service2) Segment the Overall Market3) Research the Market 29. Aspects of market segmentation1.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.. 30. 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. 31. 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. 32. CLASSIFYING THE MARKETo Market can be classified as follows on the basisof 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. 33. 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. 34. 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. 35. 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. 36. 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. 37. CONSUMER BEHAVIOR Also called as consumer psychology. Study of when, why, how, and where people do ordo not buy product. Blends elements from psychology, sociology,social anthropology and economics. Studies characteristics of individual consumerssuch as demographics and behavioural variables. Assesses influence on the consumer from groupssuch as family, friends, reference groups, andsociety in general. 38. A greater importance is also placed onconsumer retention, customer relationshipmanagement, personalisation,customisation and one-to-one marketing. 39. Four main applications of consumerbehaviour:1. For marketing strategy2. Public policies3. Social marketing4. Studying consumer behaviour should make us better consumers 40. 1. For marketing strategy For making better marketing campaigns. Companies that introduce new products mustbe well financed so that they can stay afloatuntil their products become a commercialsuccess It is important to please initial customers,since they will in turn influence manysubsequent customers brand choices. 41. 2. Public policies Companies come to know what and how topromote 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 consumersrather than selling something. E.g.,- AIDS awareness for anti-HIV drugs. 42. 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.