Marketing is managing profitable customer relationships.

The twofold goal of marketing

is to attract new customers by promising superior value and to keep and grow the current
customers by delivering satisfaction.
The importance of Marketing:

Financial success often depends on marketing ability. Finance, operations, accounting and
other business functions will not really matter if there is no sufficient demand for the
products and services so the company can make a profit.

Many companies have now created a chief marketing officer or CMO, position to put
marketing on a more equal footing with other C-level executives such as the chief
Executive officer and Chief financial officer etc.

In the business press, countless articles are devoted to marketing strategies and tactics.

Today markets are characterized by hyper-competition. Large and well known businesses
have confronted newly empowered customers and competitors and have had to rethink
their business models. Even market leaders repeatedly warned his company “ change or
die”.

Sound marketing is essential to the success of every organization-large or small, for profit
or not for profit, domestic or global firms. Large for profit such as Microsoft, Sony,
Walmart use marketing.

Marketing stimulates consumers, costs a large part of sales, employs people, supports
industries, affects all consumers and plays a major role in our lives.

Traditionally, marketing is used by profitable organizations, but recently all kinds of

organizations whether profitable or not use marketing concepts or strategies.

There are some career opportunities in Marketing. Future employment in marketing will
remain strong.
Marketing impacts strongly on people’s beliefs and lifestyles. Marketing has a role to
play in our quality of our life.

A knowledge of Marketing is extremely valuable for those not directly involved in

marketing jobs. Marketing decisions must be made by doctors, lawyers, management
consultants, financial analysis, economists, statisticians and teachers etc.,

So we can say that marketing is all around us and we all need to know something about
marketing. Marketing is used not only by manufacturing companies, wholesalers and
retailers but also by all kinds of individuals and organizations. Lawyers, accountants and
doctors use marketing to manage demand for their services.
No politicians can get the needed votes and no resort the needed tourists without
developing and carrying out the marketing plan and strategies.

People throughout these organizations need to know how to define and segment markets,
develop attractive value propositions and build strongly positioned brands. They must
know how to price their offerings to make them attractive and affordable and how to
choose and manage intermediaries to make their products available to customers. They
need to know how to advertise and promote products so that customers will know about
and want them. Moreover they must know how to adapt their marketing strategies and
management to a host of new technological and global realities. Clearly, marketers need a
broad range of skills in order to build profitable relationships with customers.

Marketing Functions: -
There are eight basic marketing functions. Here are brief descriptions of the 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 on and
approach to societal or ethical issues and global marketing, as well as the role of
the web in a marketing strategy.
● Consumer analysis:- examining and evaluating consumer characteristics, needs
and purchase processes; and selecting the groups of consumers at which to aim
marketing efforts.
● Product planning; including (goods, services, organizations, people, places and
ideas). Developing and sustaining products, products assortments, product
images, brands, packaging and optional features and deleting faltering products.
● Distribution planning: forming logistical relations with distribution
intermediaries, physical distribution, inventory management, warehousing,
transportation, the allocation of goods and services, wholesaling and retailing.
● Promotion planning- communicating with customers, the general public and
others through some form of advertising, public relations, personal selling and
sales promotion.
● 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
programs (strategy) and individual marketing functions; appraising the risks and
benefits in decision making and focusing on total quality.
The scope of marketing:
Marketing people are involved in marketing 10 types of entities, such as:

Goods: - Physical goods constitute the bulk of most countries’ production and
marketing effort. Physical goods mean the tangible goods that can be seen, touched and
smelled before the purchase. Such as refrigerator, car, automobiles, television sets etc.

Services:- services indicate the intangible offers to the customers. As economies

advance, a growing proportion of their activities is focused on the production of services.
Services include the work of airlines, hotels, car rental firms, barbers and beauticians,
maintenance and repair people etc.

Experiences: - a firm can create, stage and market experiences. Walt Disney world’s
Magic kingdom represents experiential marketing; customers visit a fairy kingdom, a
pirate ship or a haunted house. For example, spending a week at a baseball camp playing
with some retired baseball greats, paying to conduct the Chicago Symphony Orchestra for
five minutes or climbing Mount Everest.

Events:- Marketers promote time-based events such as the Olympics, company

anniversaries, major trade shows, sports events and artistic performance.

Persons:- celebrity marketing is a major business. Today every film star has an agent,
a personal manager and ties to a public relation agency. Artists, musicians, CEOs,
physicians, high profile lawyers and financiers and other professionals are also getting
help from celebrity marketers.

Places:- places such as cities, states, regions and whole nations- compete actively to
attract tourists, factories, company headquarters and new residents. Place marketers
include economic development specialists, real estate agents, commercial banks, local
business associations and advertising and public relations agencies

Properties:- Properties are intangible rights of ownership of either real property or

financial property. Properties are bought and sold. So it requires marketing.

Organization:- Organization actively work to build a strong, favorable image in the

minds of target publics. Companies spend money on corporate identity ads. Philips, the
Dutch electronics company puts out ads with the tagline “Let’s make Things Better”.
Universities, Museums and performing arts organization all use marketing to boost their
public images and to compete for audiences and funds.
Information: - information can be produced and marketed as a product.
Encyclopedias and most nonfiction books market information. This is essentially what
schools and universities produce and distribute at a price to parents, students and
communities.

Ideas: - Every market offering includes a basic idea. Products and services are platforms
for delivering some idea or benefit. Social marketers are busy promoting such ideas as
“Say no to drugs”, ‘Save the rainforest’, ‘Exercise daily’, or “Avoid fatty food”.

Core concepts of Marketing:-

To explain the definitions of marketing and understand the definition of marketing, we
must understand or examine the most important core marketing concepts, marketing can
be further understood by defining several of its core concepts.
Needs: Human needs are states of felt deprivation.
Human needs can be arisen from two stimuli such as external stimuli and internal stimuli.
These needs are not created by marketers. They are a basic part of human makeup.
Needs include
● Physical needs e.g. food, clothes and shelter ● Social
needs; e.g. Belongingness, love and affection ●
Individual needs; e.g. Knowledge and self expression.
Wants:-
The needs become wants when they are directed to specific objects that might satisfy the
needs.
Human wants vary from one culture to another and from individual to another individual.
Human wants are shaped by culture and individual personality. A person in Bangladesh
needs food but wants rice and fish.
But a person in America needs food but wants a Big Mac, French fries, pizza and soft
drinks.

Demands:- Human wants become demands when they are backed by buying power
and the willingness to buy the products. Outstanding marketing companies go to great
lengths to learn about and understand their customer’s needs, wants and interests and
demands.

Marketing offers: Marketing offers means the total benefits that a particular company
offered to a market to satisfy a need or want.
Marketing offers are not limited to the physical products. There are many things that can
be offered to a market to satisfy a need or want. Such as are goods, services, experiences,
events, persons, places, properties, organization, information and ideas.

Market:-
A market is the set of all actual and potential buyers of a product or
service. Market does not indicate the place. Marketers are keenly interested in the
market. Marketers develop products and services that create value and satisfaction for
customers in these markets. As a result, they create profitable long-term customer
relationships.

Value:- More specifically, we can define value as a ration between what the customers
gain and what he gives. Value is given by

Benefits
Value = ------------
Costs
Customer value is the difference between the values the customer gains from owning and
using a product and the cost of obtaining the products.

Satisfaction: - Satisfaction occurs where product’s performance matches the

expectations of the customers. From past experiences, friends and associates’ advice and
marketer’s and competitors’ information and promises, customers form their
expectations. Customer satisfaction is a key influence or future buying behavior. Satisfied
customers buy again and tell others about their good experiences. Dissatisfied customers
often switch to competitors and disparage the product to others.

Exchange: - Marketing occurs through the exchange process. Exchange is the act of
obtaining a desired object from someone by offering something in return. Trade value
does not matter. Ex- one party gives X to another party and gets Y in return. This is the
exchange.

Transaction: - a transaction consists of a trade of value between two parties. Ex. You
pay sears $250 for a television set. That means there must be trade value between the
parties. The transaction must be measured by money.

Marketplace: The marketplace is physical as when one goes shopping in a store.

Marketspace: - the Marketspace is digital, as when one goes shopping on the Internet.
Metamarket: Metamarket is a cluster of complementary products and services that are
closely related in the minds of consumers but are spread across a diverse set of industries.

Marketers: - a marketer is someone seeking a response from another party. When

someone wants to sell something to another party is known as marketers.

Prospects:- Prospects are the people who may conceivably may buy or may not buy the
products or services.

Brands: Brand is a name, term, sign, symbol or design or a combination of these,

intended to identify the goods or services of the seller or group of sellers and to
differentiate them from those of competitors.

Products:- Product is anything that can be offered to a market for attention, acquisition,
use or consumption that might satisfy a want or need.

Service: service is any activity or benefit that one party can offer to another party that is
essentially intangible and does not result in the ownership of anything.
Segmentation: A marketer can rarely satisfy everyone in a market. Not everyone likes the
same cereal, hotel room, restaurant, automobile, college or movie . Marketers start by
dividing up the market into segments. They identify and profile distinct groups of buyers
who might prefer or require varying product and services mixes by examining
demographic, psychographic and behavioral differences among buyers.
Target markets: The marketer decides which segments present the greatest opportunity-
which are its target markets.
Positioning: it is the process of occupying a clear, distinct position in the minds of
customers. For example Volvo is positioned on safety. Mercedes Benz is positioned on
luxury.

Marketing channel: To reach a target market, the marketers use three kinds of channel
of marketing such as are
i) Communication channel ii)
Distribution channel
iii) Service channel (i.e. Bank , insurance, warehouse)
Supply chain: The supply chain describes a longer channel stretching from raw
materials to components to final products that are carried to final buyers.

Competition: Competition includes all the actual and potential rival offerings and
substitutes that a buyer might consider.
Marketing environment: Marketing environment consists of all the factors and forces
that affect the marketing management’ ability to make their decision. The marketing
environment consists of the task environment and the broad environment. The task
environment includes the immediate actors involved in producing, distributing and
promoting the offering.
The broad environment consists of six components; demographic, economic, physical,
technological, political and legal, social-cultural environment.

Marketing Planning: the marketing planning process consists of analyzing marketing

opportunities, selecting target market, designing marketing strategies, developing
marketing programs, and managing the marketing efforts.