Meaning and Definition of Marketing

What is Marketing?
 Marketing is the process of identifying and meeting human and social needs in a way that
harmonizes with the goals of the organization.
o American Marketing Association Definition: "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."
o Marketing Management: The art and science of choosing targets and getting, keeping,
and growing customers through creating, delivering, and communicating superior
customer value.

What is Marketed?
 Goods: Physical products like bikes, smartphones, ice cream.
 Services: Airlines, hotels, beauty salons, banking, legal, medical services, software.
 Events: Trade shows, performances, sporting events, craft fairs, farmers' markets.
 Experiences: Theme parks (Disneyland), water parks, unique travel experiences.
 Persons: Artists, musicians, sports stars, celebrities (self-branding).
 Places: Cities, countries marketed to attract tourists, residents, and businesses.
 Properties: Real estate, financial properties (stocks, bonds) - intangible rights.
 Organizations: To improve public image and attract donors/members.
 Information: TV, radio, newspapers, magazines, online platforms.
 Ideas: Social marketing campaigns, political campaigns, charitable causes.

Who is a Marketer?
 Someone who seeks a response (attention, purchase, vote, donation) from another party
(prospect).
 Skilled at stimulating demand for their company's products.

What is a Market?
 Traditional: A physical place where buyers and sellers gather.
 Economists: A collection of buyers and sellers negotiating transactions for a specific product.
Evolution of Marketing
Evolution of Marketing Philosophies
Marketing philosophies have evolved over time, reflecting changes in the marketplace, consumer
behavior, and business practices. Here's a look at the key stages in this evolution:

The Production Concept

 Focus: High production efficiency, low costs, and mass distribution.
 Assumption: Consumers prefer products that are widely available and inexpensive.
 Example: Ford's Model T car, which was produced on a large scale to make it affordable to a
mass market.
 Limitations: This concept can lead to a lack of focus on customer needs and preferences, and
may not be suitable for all products or markets.

The Product Concept

 Focus: Product quality, performance, and innovative features.
 Assumption: Consumers favor products that offer the most in terms of quality, performance,
and innovation.
 Limitations: Even a superior product may fail if it's not priced, distributed, and promoted
effectively. This concept can lead to "marketing myopia" - a focus on the product itself rather
than the needs it satisfies.

The Selling Concept

 Focus: Aggressive selling and promotion efforts.
 Assumption: Consumers will not buy enough of the company's products unless they are
actively persuaded to do so.
 Application: Often used with unsought goods (products that consumers don't typically think
of buying, like life insurance or cemetery plots) or when companies have overcapacity.
 Limitations: This concept can be short-sighted and may not lead to long-term customer
satisfaction or loyalty.

The Marketing Concept

 Focus: Understanding and meeting customer needs and wants.
 Assumption: The key to achieving organizational goals is being more effective than
competitors in creating, delivering, and communicating superior customer value.
 Shift: From a "make and sell" philosophy to a "sense and respond" philosophy.
 Key Principles:
o Customer focus
 o Integrated marketing effort
o Profitability

Holistic Marketing
Holistic marketing is a philosophy that emphasizes the importance of integrating all aspects of
marketing into a cohesive strategy. It's about creating a unified and consistent brand experience for
customers across all touchpoints.

Key Components of Holistic Marketing

1. Relationship Marketing:
 Focuses on building long-term, mutually beneficial relationships with key stakeholders,
including customers, employees, partners, and the financial community.
 Aims to create a "marketing network" of loyal and engaged stakeholders who
contribute to the company's success.
 Examples: Loyalty programs, customer relationship management (CRM) systems,
employee empowerment initiatives.
2. Integrated Marketing:
 Coordinates all marketing activities and programs to deliver a consistent message and
value proposition to customers.
 Integrates the 4 Ps of marketing (product, price, place, promotion) into a
comprehensive strategy.
 Ensures that all marketing efforts work together seamlessly to achieve common goals.
 Examples: Consistent branding across all channels, integrated marketing campaigns,
coordinated messaging across online and offline platforms.
3. Internal Marketing:
 Focuses on motivating and empowering employees to deliver excellent customer
service and support the company's marketing efforts.
 Recognizes that employees are internal customers who need to be engaged and
aligned with the company's values and goals.
 Examples: Employee training programs, internal communication initiatives, employee
recognition programs.
4. Socially Responsible Marketing:
 Considers the ethical and societal impact of marketing decisions.
 Aims to balance the company's needs with the needs of customers and society as a
whole.
  Examples: Sustainable marketing practices, cause-related marketing, ethical sourcing.

Core Marketing Concepts

Needs, Wants, and Demands
 Needs: Basic human requirements or states of felt deprivation.
o Examples: Air, food, water, clothing, shelter, recreation, education.
 Wants: When needs are directed to specific objects that might satisfy the need, shaped by
culture and personality.
o Example: Food is a need, but wanting biryani or pizza is a want.
 Demands: Wants for specific products backed by an ability to pay (buying power).
o Example: Many people desire a Rolls Royce car, but only a few can afford it.

Five Types of Needs

 Stated needs: What the customer explicitly says they want (e.g., "I want an inexpensive car").
 Real needs: The underlying need behind the stated need (e.g., "I want a car with low
operating costs").
 Unstated needs: Needs the customer expects to be fulfilled without explicitly stating them
(e.g., "I expect good service from the dealer").
 Delight needs: Needs that would enhance the customer's experience but are not expected
(e.g., "I would like the car to have a built-in navigation system").
 Secret needs: Needs that are not expressed, often due to social or psychological reasons
(e.g., "I want my friends to see me as a savvy consumer").

Market Offerings and Value Propositions

 Market Offering: A combination of products, services, information, and experiences offered
to a target market to satisfy their needs.
 Value Proposition: A set of benefits that the company promises to deliver to customers to
satisfy their needs.

Brands
 Brand: A name, term, design, symbol, or other feature that identifies and differentiates a
company's offerings from those of competitors.

Customer Value and Satisfaction

  Customer-Perceived Value: The customer's evaluation of the difference between the benefits
and costs of a market offering, relative to competing offerings.
 Customer Satisfaction: The extent to which a product's perceived performance matches or
exceeds customer expectations.

Marketing Channels
 Communication channels: Deliver and receive messages from target buyers (e.g., social
media, email, websites).
 Distribution channels: Display, sell, or deliver products to customers (e.g., distributors,
wholesalers, retailers).
 Service channels: Facilitate transactions and provide customer support (e.g., banks,
insurance agencies, transportation companies).

Supply Chain
 Supply Chain: The entire system of organizations, people, activities, information, and
resources involved in moving a product or service from supplier to customer.
 Partner Relationship Management: Working closely with partners in and outside the
company to create greater value for customers.

Competition
Competition is about all external forces affecting a company's ability to attract and keep customers,
not just direct rivals.
Key Aspects:
 Direct Competitors: Similar products, same market (e.g., Coke vs. Pepsi).
 Indirect Competitors: Different products, same need (e.g., coffee vs. tea).
 Potential New Entrants: Possible future competitors.
 Substitute Products/Services: Alternatives satisfying the same need (e.g., email vs. mail).
 Power of Buyers: Customers' influence on prices.
 Power of Suppliers: Suppliers' influence on prices.

The Marketing Environment

The marketing environment is all internal and external factors impacting a company's marketing
efforts and customer relationships.
Key Components:
 Microenvironment: Close to the company:
o Company, Suppliers, Intermediaries, Customers, Competitors, Publics.
 Macroenvironment: Larger societal forces:
o Demographic, Economic, Natural, Technological, Political, Cultural factors.