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What is Marketing?
Marketing is 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.
What is Marketing Management?
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.
Simple Marketing System
Communication
Industry
Goods/services
(a collection
of sellers)
Market
(a collection
of Buyers)
Money
Information
What is Marketed?
Ideas
Goods
Events
Organizations
Place
Information
Services
Scope
Persons
Experiences
Properties
Basic Concepts of Marketing
Market Segmentation &
Target Selection
Needs, Wants & Demand
Product Or Offering
Value & Satisfaction
Exchange & Transaction
Basic Concepts
Market
The set of actual and potential buyers of
a product.
 These people share a need or want that
can be satisfied through exchange
relationships.

Segmentation and Targeting
Market Segmentation:
Divide the market into
segments of
customers
Target Marketing:
Select the segment to
cultivate
Segment
1
Segment
2
Need, Want and Demand
Needs - State of felt deprivation
including physical, social, and individual
needs.
Wants - Form that a human need takes,
as shaped by culture and individual
personality.
Demand – Want along with buying
power converts into demand.
Marketers and Prospects
Marketer: Someone seeking
something to another party.
 Prospect:
Someone seeking
something from another party.

to
sell
to
buy
Value & Satisfaction
Value
= Benefit
Cost
Benefit = Functional Benefit + Emotional Benefit
Cost
= Monetary Cost + Time Cost +Energy
Cost + Psychic Cost
Satisfaction
Customer Satisfaction: Dependent on the product’s perceived
performance relative to a buyer’s expectations.
If performance (P) is lower If performance (P) is higher
than
expectations
(E), than
expectations
(E),
satisfaction is low.
satisfaction is high.
E=10
> P=8
E=10
< P=12
Exchange & Transaction
Exchange: Obtaining a desired product from
someone by offering some thing in return. Five
conditions must be satisfied:
•At least two parties
•Each should have something of value to the other
party
•Each party is capable of communication and
delivery
•Each party is free to accept or reject the exchange
offer
•Each party believes it is desirable to deal.
Transaction: It is a trade of values between two or more
parties.
•Monetary Transaction: Money is paid against goods
•Barter Transaction: Trading goods or services for other goods
or services.
Basic Concepts of Marketing
Relationship & Network
Marketing Channels
Supply Chain
Competition
Marketing Environment
Basic Concepts
Relationship & Network
Relationship marketing has the aim of building long term mutually satisfying
relations with key parties:
•Customers
•Suppliers
•Distributors
•Stake holders
•Employees
Outcome
Marketing Network
Marketing Channels
Communication
Channels
•
Dialogue Channels
•
Distribution
Channels
Channels
Physical
Distribution
Channels
•
Monologue
Channels
Service
Distribution
Channels
•
Selling Channels
•Distributor & Retailers
•Insurance Co.
•Banks
Supply Chain
Competition
1
Brand Competition
Other companies
offering a similar
product and services
to the same
customers at similar
prices.
2
3
4
Industry
Competition
Form Competition
Generic Competition
All companies
manufacturing
products that supply
the same service.
All companies that
compete for the
same consumer
money.
All companies
making the same
product or class of
products (all price
range)
Marketing Environment
Internal
Environment
Micro
Environment
Macro
Environment
Marketing Mix
Marketing Mix is the set of marketing tools
that the firm uses to pursue its marketing
objective.
 Four P’s and Four C’s

 Product:
Customer Solution
 Price:
Customer Cost
 Place:
Convenience
 Promotion: Communication
Marketing Mix

Product

Product Variety
 Quality
 Design
 Features
 Brand Name
 Packaging
 Sizes
 Services
 Warranties
 Returns

Price





List Price
Discounts
Allowances
Payment
Period
Credit Terms

Promotion






Sales
Promotion
Advertising
Sales Force
Public
Relations
Direct
Marketing
Place



Channels
Coverage
Assortment
 Locations
 Inventory
 Transport
Marketing Mix Strategy
Promotion
Mix
Sales
Promotion
Company
Offering
Mix
Advertising
Product
Sales Force
Service
Price
Public
Relations
Direct Mail,
Telemarketing &
Internet
Distribution
Channels
Target
Customers
Summary
Marketing Management is creating,
communicating superior customer value.

delivering,

It has a wider scope.

Marketing starts with recognition of needs of customer.
and
Then segmentation and selection of market is done to choose a
specific kind of need to fulfill.


Then product is positioned in the minds of the customer.
Marketing has four important P’s: Product, Price, Promotion and
Place.


Product is placed in the competitive environment.
Customer is satisfied when the product meets his expectation.


Company’s focus is to earn profit through customer satisfaction.