7. WHAT IS MARKETING ?
Marketing is a social process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others PHILIP KOTLER NEEDS ,WANTS and DEMANDS --- PRODUCTS------VALUE & SATISFACTION--- EXCHANGE & TRANSACTION---MARKETS & MARKETERS

8. WHAT IS MARKETING ?
The essence of Marketing is a transaction - an exchange- intended to satisfy human needs and wants. There are three elements in the marketing process : (A) MARKETERS (B)WHAT IS BEING MARKETED (C) TARGET MARKET

9. NEEDS,WANTS AND DEMANDS
NEED : A state of felt deprivation of some basic satisfaction ( Food, Clothing, Shelter, Belonging etc. )
WANTS : Wants are desires for specific satisfiers of the deeper needs. Needs are few and wants are many .
DEMANDS : are wants backed by Ability to buy and Willingness to buy

10. PRODUCTS / OFFERS / SATISFIERS / RESOURCES
Anything that can be offered to someone to satisfy a need or want is a product .
Product refers to physical object
Services refer to intangible object

11. VALUE AND SATISFACTION
Value is the customers’ estimate of the Product’s capacity to satisfy a set of goals
Customer gets benefits & assume costs
WHEN :Customer Expectance=Performance (satisfied)
Customer Expectance>Performance (dis-satisfied)
Customer Expectance<Performance (Highly satisfied)

12. EXCHANGE AND TRANSACTION
Exchange is a process rather than event. It is a value creating process because it normally leaves both parties better off.
A transaction is a trade of values between two or more parties ( A BARTER TRANSACTION OR A MONETARY TRANSACTION ).

13. WHAT IS MARKET ?
A market consists of all the potential customers sharing a particular need or want who might be willing and able to engage in exchange to satisfy that need or want.

14. WHAT IS MARKETING MANAGEMENT ?
Marketing Management is the analysis, planning, implementation and control of programs designed to create, build and maintain beneficial exchanges and relationships with target markets for the purpose of achieving Organisational objectives.

15. WHAT IS MARKETING MANAGEMENT ?
Marketing management is demand management or it involves the task of influencing the level, timing and composition of demand. At times the actual demand level may be below, equal to, or above the desired demand level and the major task of marketing management is to regulate the level of demand.

16. STATE OF DEMAND AND MARKETING TASK
Negative Demand
No Demand
Latent Demand
Falling Demand
Irregular Demand
Full Demand
Overfull Demand
Un-wholesome Demand
Marketing task
Conversional Mktg.
Stimulational Mktg.
Developmental Mktg.
Remarketing
Synchro-marketing
Maintenance Mktg.
Demarketing
Counter-marketing

17. EVOLUTION OF MARKETING MANAGEMENT
Marketing management has evolved through following stages :
(1) Production Orientation Stage
(2) Sales Orientation Stage
(3) Marketing Orientation Stage
(4) Social Responsibility & Human Orientation Stage

18. COMPANY ORIENTATION FOR MARKETING ACTIVITIES
Marketing Management can be defined as the effort to achieve desired EXCHANGE outcomes with TARGET MARKETS.
Now the question arises :
(1) What philosophy should guide the marketing activities?
(2) What weights should be given to the interests of the organisation, the customers and the society?

19. The Marketing Concept The marketing concept:
A marketing management philosophy that holds that achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfaction better than competitors.

20. MARKETING CONCEPT, DIMENSIONS
There are FIVE competing concepts under which organizations conduct their marketing activities:
The Production Concept
The Product Concept
The Selling Concept
The Marketing Concept
The Societal Marketing Concept

21. (1) THE PRODUCTION CONCEPT
Company
Produce more & more
Produce
Consumers
Sell
Practically sells itself

22. THE PRODUCTION CONCEPT
Consumers will favour those products that are widely available and low in cost.
Therefore increase production and cut down costs.
And build profit through volume.

23. (2) THE PRODUCT CONCEPT
Practically sells itself,if it gives most quality for money
Produce Quality Products
Consumers
Sell
Buyers admire well-made products and can appraise product quality and performance.

24. THE PRODUCT CONCEPT
Consumers will favour those products that offer the most quality, performance, or innovative features.
Therefore, improve quality, performance and features.
This would lead to increased sales and profits.

25. (3) SELLING CONCEPT
Consumers have normal tendency to resist.
Aggressive selling & promotion efforts
Produce
Sell it
Consumers
Making sales becomes primary function and consumer satisfaction secondary .

26. THE SELLING CONCEPT
Consumers , if left alone , will not buy enough of company’s products.
Therefore, promote sales aggressively.
And,build profit through quick turnover.

27. Consumers (4) MARKETING CONCEPT
“ LOVE THE CUSTOMER , NOT THE PRODUCT ”
Learn what they want(MR)
Produce it
Consumers
Market it
Sell what they want(Satisfy needs of customers)

28. THE MARKETING CONCEPT
The key to achieving organizational goals consist in determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors.
And build profit through customer satisfaction and loyalty.

29. (5) THE SOCIETAL MARKETING CONCEPT
It is Marketing Concept (+) Society’s well being.
Balancing of following three considerations while setting marketing policies :-
Customer’s want satisfaction
Society’s well being
Company’s profits

30. THE SOCIETAL MARKETING CONCEPT
The societal marketing concept holds that the organization’s task is to determine the needs, wants, and interests of target markets and to deliver the desired satisfactions more effectively and efficiently than competitors in a way that preserves or enhances the consumer’s and the society’s well being.
It addresses conflicts between consumer’s and firm’s short run wants and long term welfare.

31. STRATEGIC CONCEPT OF MARKETING
Shifted the focus of Marketing from Product or customer to the CUSTOMER IN THE CONTEXT OF THE BROADER EXTERNAL ENVIRONMENT .
To succeed, marketers must know the customer in a context including the competition, Govt. Policy& regulation and the broader economic, social and political macro forces that shape the evolution of market.

32. STRATEGIC CONCEPT OF MARKETING
Shifted the Marketing Objectives from PROFIT TO STAKEHOLDER BENEFITS.
Stakeholders are individuals or groups who have an interest in the activity of a company . They include-----The employees and management, Customers, Society, Shareholders, Financiers/ Bankers, Government etc.

33. STRATEGIC CONCEPT OF MARKETING
Strategic Marketing Concept is Strategic Management, which integrates marketing with the other management functions.
( Major task is Profit for Stakeholders’ benefits ).

34. MARKETING SYSTEM
Marketing is concerned with the flow of goods and services from the points of production to the points of consumption. There is a systematic arrangement of these functions of marketing to move the goods and services to the needy persons. This system is essential to the creation of time, place and possession utilities.

35. GOALS OF THE MARKETING SYSTEM
MAXIMIZE CONSUMPTION MAXIMIZE CONSUMER SATISFACTION MAXIMIZE CHOICE MAXIMIZE LIFE QUALITY

36. THREE LEVELS OF MARKETING
Responsive Marketing
Anticipative Marketing
Need Shaping Marketing

37. RESPONSIVE MARKETING
It is the form of marketing when some company defines an existing clear need and prepare an affordable solution. (Recognizing that women wanted to spend less time for cooking and cleaning, led to the invention of modern washing machine, microwave oven etc.)

38. ANTICIPATIVE MARKETING
It is a form of marketing when a company recognize an emergent or latent need, and come out with an affordable solution. Evian, Perrier anticipated growing market for bottled drinking water as the quality of water deteriorated in many places.
Anticipative marketing is more risky than responsive marketing; companies may come into market too early or too late, or may even be totally wrong about thinking that such a market would develop.(eg. Dish washers in India)

39. NEED SHAPED MARKETING (e.g. Sony Walkman, Sony Compact Disc )
The broadest level of marketing occurs when a company introduces product that nobody asked for and often could not even conceive of.
(e.g. Sony Walkman, Sony Compact Disc )
Late Akio Morita, founder and chairman of Sony, who introduced these and many other new products, summarized his marketing philosophy in these words: “ I don’t serve markets. I create them.”

40. Physical Goods Service Experiences Events Persons
The Scope Of Marketing Marketers are involved with marketing ten types of entities:
Physical Goods Service Experiences Events Persons
Places Properties Organizations Information Ideas

41. Exchange and Marketing
This slide relates to the material on pp and corresponds to Exhibit 1-2a on p. 16 and Transparency 2.
Ten exchanges required
without central market
Pots
bats
Hats
knife
soap
In very basic economic systems, each seller must meet directly with each buyer in order to exchange something of value. As needs increase, the number of exchanges can soon become unmanageable for one person.
Summary Overview
It is important for students to realize that marketing does in fact “make something.” It’s just that our “something” is often intangible or at least not as visible (like a distribution system) to the customer as the product on the shelf. In mature economies, “something” includes product information, research, need-based changes, convenience, and a host other value-added activities often taken for granted. But more fundamentally, marketing is the vehicle by which all economies evolve
Key Concepts of Macro-Marketing Systems Development
Pure Subsistence Economy. Under this system, every family produces all they need. No exchanges occur and no macro-marketing system exists.
Markets. When families begin to produce more than they need of some things and develop new needs or wants for things they do not produce, the concept of a market evolves. Initially, the family simply trades, or barters, some of their excess items for the excess items offered by another family. Later, a central market develops where the families go to barter more conveniently.
Middlemen. Central markets still take time. Among the first macro-marketing system elements to emerge is the middleman - a person who specializes in trade rather than production. Because of the expertise of this person, a “something” is added to the exchange process. More formally, by bringing buyers and sellers (or traders) together more efficiently, middlemen (intermediaries) contribute time and place utility.
Monetary System. Very quickly now, people realize the need to standardize trade. Bartering takes a lot of time and limits exchanges to specific product forms for both buyer and seller. The introduction of money allows the middleman to expand services, create inventories, and offer inducements for even greater choice in the central market.

42. Five exchanges required
This slide relates to the material on pp and corresponds to Exhibit 1-2b on p. 16 and Transparency 2.
Central
market
middleman
Pots
bats
Hats
knife
soap
In a centralized market, a buyer can go to one location to find many different products from many different sellers. By reducing the time both buyers and sellers must spend to complete an exchange, prices can be lowered.
Summary Overview
It is important for students to realize that marketing does in fact “make something.” It’s just that our “something” is often intangible or at least not as visible (like a distribution system) to the customer as the product on the shelf. In mature economies, “something” includes product information, research, need-based changes, convenience, and a host other value-added activities often taken for granted. But more fundamentally, marketing is the vehicle by which all economies evolve since even the need for monetary exchange is based upon the needs of the middlemen to simplify the exchange process illustrated here.
Key Concepts of Macro-Marketing Systems Development
Pure SubsistenceEconomy. Under this system, every family produces all they need. No exchanges occur and no macro-marketing system exists.
Markets. When families begin to produce more than they need of some things and develop new needs or wants for things they do not produce, the concept of a market evolves. Initially, the family simply trades, or barters, some of their excess items for the excess items offered by another family. Later, a central market develops where the families go to barter more conveniently.
Middlemen. Central markets still take time. Among the first macro-marketing system elements to emerge is the middleman - a person who specializes in trade rather than production. Because of the expertise of this person, a “something” is added to the exchange process. More formally, by bringing buyers and sellers (or traders) together more efficiently, middlemen (intermediaries) contribute time and place utility.
Monetary System. Very quickly now, people realize the need to standardize trade. Bartering takes a lot of time and limits exchanges to specific product forms for both buyer and seller. The introduction of money allows the middleman to expand services, create inventories, and offer inducements for even greater choice in the central market.
Five exchanges required
with central market

43. PRODUCTS / OFFERS / SATISFIERS / RESOURCES
Consumer markets
Business markets
Global markets
Nonprofit/Government markets

44. Marketing Functions Environmental analysis and marketing research:
Monitoring and adapting to external factors that affect success or failure, such as the economy and competition; and collecting data to resolve specific marketing issues.
Broadening the Scope of Marketing:
Deciding on the emphasis to place, as well as the approach to take, on societal issues, global marketing, and the Web.
Consumer analysis:
Examining and evaluating consumer characteristics, needs and purchase processes; and selecting the group(s) of consumers at which to aim marketing efforts.

45. Marketing Functions continued
Product planning (including goods, services, organizations, people, places, ideas):
Developing and maintaining products, product assortments, product images, brands, packaging, and optional features, and deleting faltering products.
Distribution planning:
Forming logistical relationships with intermediaries, physical distribution, inventory management, warehousing, transportation, allocating goods and services, wholesaling, and retailing.
Promotion planning:
Communicating with customers, the general public, and others through some type of advertising, public relations, personal selling, and/or sales promotion.

46. Marketing Functions continued
Price planning:
Determining price levels and ranges, pricing techniques, terms of purchase, price adjustments, and the use of price as an active or passive factor.
Marketing management:
Planning, implementing, and controlling the marketing program (strategy) and individual marketing functions; appraising the risks and benefits in decision making; and focusing on total quality.

47. Marketing Functions (Remember)
Facilitating Functions
Physical Functions
Financing
Standardization
Processing
Storage
Exchange Functions
Buying and Selling
Transportation
Market Intelligence
Risk Bearing

48. Done for the Day