Basics of Marketing

UNIT-I
Introduction to Marketing
 What Is Marketing?

• Define marketing and outline the steps in the marketing process

 Understanding the Marketplace and Customer Needs

• Explain the importance of understanding customers and the

marketplace and identify the five core marketplace concepts.
 What Is Marketing?

Managing Profitable Attract new customers by

Customer Relationship promising superior value

Keep and grow current customers

by delivering satisfaction
 Marketing Defined

• Broadly defined, marketing is a social and managerial process by

which individuals and organizations obtain what they need and want
through creating and exchanging value with others.

• We define marketing as a process by which companies create value

for customers and build strong customer relationships to capture
value from customers in return.
 Functions of Marketing
• Buying
• Selling
• Transporting
• Storing
• Grading
• Financing
• Marketing research
• Risk-taking
 Scope of Marketing
• Market Research & Analysis:
- Understanding consumer behaviour
- Market Segmentation
- Competitive Analysis
• Product Development & Management:
- Product design & Innovation
- Brand Management
- Product Lifecycle Management
 Scope of Marketing
• Pricing Strategies:
- Cost-based pricing
- Value-based pricing
- Competitive pricing
• Promotion & Communication:
- Advertising
- Public Relations
- Sales Promotion
- Digital Marketing
- Personal Selling
 Scope of Marketing
• Distribution Strategies:
- Channel Management
- Logistics & Supply Chain Management
• Customer Relationship Management (CRM):
- Building customer loyalty
- Customer service
• Sales Management:
- Sales Force Management
- Sales Planning & Strategy
 Scope of Marketing
• Marketing Strategy & Planning:
- Strategic marketing
- Integrated Marketing Communications (IMC)
• Ethical & Social Responsibility:
- Sustainable marketing
- Ethical marketing
• Global Marketing:
- International market entry
- Cross-Cultural marketing
 Evolution of Marketing
• Pre-Industrial Revolution Era:
Marketing in its earliest form was rudimentary, primarily focused on
simple bartering systems where goods and services were exchanged.
The concept of "marketplaces" began to emerge, where traders and
buyers would gather to exchange goods.
The emphasis was on fulfilling basic needs with little or no emphasis
on customer satisfaction or brand identity.
 Evolution of Marketing
• Industrial Revolution (18th - 19th Century):
The Industrial Revolution marked a significant shift in marketing.
With mass production, goods were produced in large quantities,
necessitating the need for broader distribution.
The focus was on production efficiency, and the marketing function
was primarily concerned with getting products to market.
This era saw the emergence of the first forms of advertising in
newspapers, posters, and pamphlets to inform and persuade
customers.
 Evolution of Marketing
• Early 20th Century: The Birth of the Marketing Concept:
As competition grew, businesses began to realize that understanding
and meeting customer needs could provide a competitive advantage.
This gave rise to the marketing concept, which emphasized the
importance of customer orientation.
Companies started focusing not just on selling products but also on
satisfying customer needs and wants.
Branding and advertising became more sophisticated, with the
introduction of radio and television as new media for marketing
messages.
 Evolution of Marketing
• Mid-20th Century: The Marketing Mix and the 4 Ps:
The 1950s and 1960s saw the formalization of marketing as a
discipline.
The concept of the "marketing mix" was introduced, encapsulating the
4 Ps: Product, Price, Place, and Promotion.
Marketers used these elements to develop strategies that would meet
customer needs and differentiate their offerings from competitors.
This period also saw the rise of market research, which provided
insights into consumer behavior and preferences.
 Evolution of Marketing
• Late 20th Century: Relationship Marketing:
By the late 20th century, the focus shifted from transactional marketing to
relationship marketing.
Businesses began to emphasize long-term relationships with customers,
recognizing that retaining customers was often more cost-effective than
acquiring new ones.
Customer satisfaction, loyalty programs, and personalized marketing
became critical components of marketing strategies.
The advent of digital technology also started to influence marketing, with
the internet opening up new channels for communication and commerce.
 Evolution of Marketing
• 21st Century: Digital and Integrated Marketing:
The digital revolution transformed marketing in unprecedented ways.
The rise of the internet, social media, and mobile technology created
new platforms for marketing and allowed for highly targeted, data-
driven strategies.
Content marketing, social media marketing, search engine
optimization (SEO), and influencer marketing became essential tools
for marketers.
The concept of integrated marketing communication (IMC) emerged,
emphasizing the need for consistency across all marketing channels.
 Evolution of Marketing
• Present Day: Customer-Centric and Data-Driven Marketing:
Today, marketing is more customer-centric and data-driven than ever
before.
The use of big data, artificial intelligence, and machine learning enables
marketers to create personalized experiences for customers at scale.
The focus is on creating value for customers through deep insights into their
preferences, behaviors, and needs.
Sustainability and ethical marketing have also gained prominence, with
companies increasingly recognizing the importance of social responsibility in
their marketing efforts.
 Core Marketing Concepts

To explain marketing definition, we examine the core concepts of

marketing:
• Needs, wants, and demands
• Products and services
• Value, satisfaction and quality
• Exchange, transactions, and relationships
• Markets
Core Marketing Concepts
Needs, wants
& demands

Marketing offers
Markets (products, services
Core & experiences)
Marketing
Concepts

Exchange,
Transactions & Value &
Relationships Satisfaction
 Needs, Wants, and Demands
Needs:
• The most basic concept underlying marketing is that of human needs.
• Human needs are states of felt deprivation.
• Human have many complex needs:
- Physical needs for food, clothing, warmth, and safety
- Social needs or belonging and affection
- Individual needs for knowledge and self – expression
 Needs, Wants, and Demands
Wants:
• Want are the form taken by human needs as they are shaped by
culture and individual personality.
• People have almost unlimited wants but limited resources.
• They want to choose products that provide the most value and
satisfaction for their money.
 Needs, Wants, and Demands
Demands:
• When backed by buying power, wants become demands.
• Consumers view products as bundles of benefits and choose products
that give them the best bundle for their money.
 Market Offerings-Products & Services
Product:
• Anything that can be offered to a market to satisfy a need or want.
• The concept of product is not limited to physical objects – anything
capable of satisfying a need can be called a product.
 Market Offerings-Products & Services
Services:
• In addition to tangible goods, products also include services, which
are activities or benefits offered for sale that are essentially
intangible and do not result in the ownership of anything.
 Market Offerings-Products & Services
• Market offerings are some combination of products, services, information, or
experiences offered to a market to satisfy a need or a want.
- Goods
- Services
- Experience
- Events
- Place
- Property
- Person
- Information
- Idea
- Organization
 Values, Satisfaction, and Quality
Values:
• Customer value is the difference
between the values the customer
gains from owning and using a
product and the costs of obtaining
the products.
• Customers often do not judge
product value and costs
accurately or objectively.
They act on perceived value.
CV = (Perceived Customer Benefits - Total Customer Cost)
 Values, Satisfaction, and Quality
Satisfaction:
• Customer satisfaction depends on a product’s perceived performance in
delivering value relative to a buyer’s expectation.
• If the product’s performance falls short of the customer’s expectations, the
buyer is
• dissatisfied.
• If the product’s performance
exceeds the customer’s
expectations, the buyer is
delighted.
 Values, Satisfaction, and Quality
Quality:
• Customer satisfaction is closely
linked to quality.
• Quality has a direct impact on
product performance.
• Quality can be defined as
“freedom from defects”.
• TQM programs designed to
constantly improve the quality of
products, services, and marketing
processes.
 Exchange, Transactions, and Relationships
Exchange:
• The act of obtaining a desired object from someone by offering
something in return.
Transaction:
• A trade between two parties that involves at least two things of value,
agreed upon conditions, a time of agreement, and a place of
agreement.
Relationship marketing:
• The process of creating, maintaining, and enhancing strong, value-
laden relationships with customers and other stakeholders.
 Markets
• The set of all actual and potential buyers of a product or service.
 Marketing Vs. Market Competition
• Marketing is an efforts by a company to understand and satisfy
customer needs; whereas market competition is the external
environment in which a company operates.

• Marketing involves the entire process of bringing a product or service

to market and managing customer relationship; whereas market
competition represents the ongoing battle between companies to
capture market share, attract customers, and outperform each other.
 Key Customer Markets
• Consumer Markets.
• Industrial/Business to Business Markets.
• Reseller (Retailers, Distributors) Markets.
• Publics (Government agencies/departments/institutions).
• International/Global Markets.
 Markets
• Each party in the system adds value. Walmart cannot fulfill its
promise of low prices unless its suppliers provide low costs. Ford
cannot deliver a high-quality car-ownership experience unless its
dealers provide outstanding service.
 Marketplaces, Marketspaces & Metamarkets
• Marketplaces are physical markets or shops or stores. The
marketplaces has presence of companies which manufacture their
own products.

• Marketspaces are Digital Shops or Shopping websites. The online

marketspace with websites such as Amazon, Flipkart and others is
known as Marketspaces. These sites do not have offline products.
They only sell others products online.
 Marketplaces, Marketspaces & Metamarkets
Metamarkets are closely related markets from the customer point of
view but are different set of industries.
• Ex. Take an example of 99acres.com a real estate portal. It brings
together buyers and sellers or real estate. Yatra.com brings together
the travellers and the travel providers. Shaadi.com brings the
marriage service providers and the groom/brides family together.
Thus both Yatra.com and 99acres.com are Metamarkets for real
estate and travellers respectively.
 Markets
• Brick-and-Mortar
The term "brick-and-mortar“ refers to a traditional street-side
business that offers products and services to its customers face-to-
face in an office or store that the business owns or rents. The local
grocery store and the corner bank are examples of brick-and-mortar
companies.
 Markets
• Brick-and-Click
Bricks and clicks is a term for a business model by which a company
integrates both offline (bricks) which means shops and stores plus
online (clicks) presences.
• Lenskart is an example of Bricks and Clicks which has both offline and
online presence. It provides a range of eyewear products. It is very
popular and has numerous stores. It provides an online product sale
and service for its customers apart from a strong network of physical
stores.
 Markets
• Digital Markets
The term digital marketing refers to the use of digital channels to
market products and services in order to reach consumers.
This type of marketing involves the use of websites, mobile devices,
social media, search engines, and other similar channels.
Digital marketing became popular with the advent of the internet in
the 1990s.
 Markets
• Metaverse:
It is the evolving digital space where marketers are leveraging virtual
and augmented reality environments to engage consumers.
It is a collective virtual shared space, merging physical and digital
realities, where users interact with each other and the environment
using avatars.
The key aspects of Metaverse are virtual brand experience, digital
goods and NFT, Advertising in virtual worlds, community building,
data and analytics, innovation in content creation.
 The Changing Marketing Landscape
(Impact of Globalization, Technology & Social Responsibility on Marketing)

The Changing Economic Environment:

• The Great Recession caused many consumers to rethink their
spending priorities and cut back on their buying.
• In adjusting to the new economy, companies and slash prices in an
effort to coax more frugal customers into opening their wallets.
• The challenge is to balance the brand’s value proposition with the
current times while also enhancing its long-term equity.
 The Changing Marketing Landscape
The Digital Age:
• The digital age has provided marketers with exciting new ways to
learn about and track customers and create products and services
tailored to individual customer needs.
• Online marketing is now the fastest-growing form of marketing.
 The Changing Marketing Landscape
The Growth of Not-for-profit Marketing:
• In recent years, marketing has also become a major part of the
strategies of many not-for-profit organizations, such as colleges,
hospitals, museums, zoos, symphony orchestras, and even churches.
• Government agencies have also shown an increased interest in
marketing.
 The Changing Marketing Landscape
Rapid Globalization:
• Today, almost every company, large or small, is touched in some way
by global competition.
• Managers in countries around the world are increasingly taking a
global, not just local, view of the company’s industry, competitors,
and opportunities.
 The Changing Marketing Landscape
Sustainable Marketing ─ The Call for More Social Responsibility:
• As the worldwide consumerism and environmentalism movements
mature, today’s marketers are being called on to develop sustainable
marketing practices.
• Corporate ethics and social responsibility have become hot topics for
almost every business.
 The New Marketing Realities
• Network Information Technology: The digital revolution has created
an Information Age that promises to lead to more accurate levels of
production, more targeted communications, and more relevant
pricing.
• Globalization: Technological advances in transportation, shipping,
and communication have made it easier for companies to market in,
and consumers to buy from, almost any country in the world.
• Deregulation: Many countries have deregulated industries to create
greater competition and growth opportunities.
 The New Marketing Realities
• Privatization: Many countries have converted public companies to
private ownership and management to increase their efficiency.
• Heightened Competition: Intense competition among domestic and
foreign brands raises marketing costs and shrinks profit margins.
• Industry Convergence: Industry boundaries are blurring as companies
recognize new opportunities at the intersection of two or more
industries.
 The New Marketing Realities
• Retail transformation: Store-based retailers face competition from
catalog houses; direct mail firms; newspaper, magazine, and TV
direct-to-customer ads; home shopping TV and e-commerce.
• Disintermediation: The amazing success of early dot-coms such as
Amazon.com, and others created disintermediation in the delivery of
products and services by intervening in the traditional flow of goods
through distribution channels
 New Consumer Capabilities
• Consumer Buying power - due to disintermediation via the Internet,
consumers have substantially increased their buying power.
• Consumer information with the consumers collecting information in
as much breadth and depth as they want about practically anything.
• Consumer participation with the consumers finding an amplified
voice to influence peer and public opinion.
• Consumer resistance with the consumers feeling that there are fewer
real product differences, so they show less brand loyalty and become
more price- and quality-sensitive in their search for value, and less
tolerant about undesired marketing.
 New Consumer Capabilities
• Connected customers through constant connectivity, multi-channel
engagement & immediate feedback system
• Customers as digital natives being tech-savvy, having high
expectations & preference for digital communication
• Informed Vs. distracted customers - research oriented informed
customers with the expectation of value transparency & distracted
customers with short attention span and information overload
 New Company Capabilities
• Marketers can use the internet as a powerful information and sales
channel
• Marketers can collect fuller and richer information about markets,
customers, prospects
• Marketers can tap into social media to amplify their brand message
• Marketers can facilitate and speed external communication among
customers
• Marketers can send ads, coupons, samples, and information to
customers who have requested them or given the company
permission to send them
 New Company Capabilities
• Marketers can reach consumers on the move with mobile marketing
• Companies can make and sell individually differentiated goods
• Companies can improve purchasing, recruiting, training, and internal
and external communications
• Companies can facilitate and speed up internal communication
among their employees by using the Internet as a private intranet
• Companies can improve their cost efficiency by skillful use of the
Internet
 New Company Capabilities
• Leveraging big data and advanced analytics to gain deep insights into
customer behavior, preferences, and market trends.
• Implementing digital marketing strategies and integrating various
digital technologies to enhance marketing efforts.
• Creating personalized marketing messages and experiences based
on individual customer data and preferences.
• Adapting quickly to market changes, consumer preferences, and
emerging trends.
• Developing high-quality, engaging content that resonates with target
audiences and supports various marketing goals.
 New Company Capabilities
• Building and maintaining strong relationships with customers
through effective CRM practices.
• Delivering a consistent and integrated customer experience (CX)
across multiple channels and touch points.
• Managing brand presence and engagement on social media
platforms and building online communities.
• Utilizing artificial intelligence (AI) and automation to streamline
marketing processes and enhance efficiency.
• Implementing marketing practices that emphasize social
responsibility, sustainability, and ethical considerations.
 Functions of a Marketing Manager
• What functions does today’s marketing manager perform?
 Functions of a Marketing Manager
• Strategic Planning:
- Market research
- Setting goals
- Developing marketing strategies

• Brand Management:
- Brand Development
- Consistency
- Brand Positioning
 Functions of a Marketing Manager
• Product Management:
- Product Development
- Pricing Strategy
- Product Launches

• Promotion and Advertising:

- Campaign Management
- Advertising
- Content Creation
 Functions of a Marketing Manager
• Sales Support:
- Sales Collateral
- Lead Generation
- Sales Alignment

• Customer Relationship Management (CRM)

- Customer Engagement
- Loyalty Programs
- Customer Feedback
 Functions of a Marketing Manager
• Digital Marketing:
- SEO and SEM
- Social Media Management
- Email Marketing

• Budget Management:
- Budget Allocation
- Cost Management
- ROI Analysis
 Functions of a Marketing Manager
• Team Leadership:
- Team Management
- Collaboration
- Motivation

• Data Analysis and Reporting:

- Performance Metrics
- Market Analysis
- Reporting
 Linkage of marketing functions with all functions in the
organization
• How marketing works in collaboration with other departments in an
organization?
 Linkage of marketing functions with all functions in the
organization
Marketing and Sales
• Lead Generation: Marketing generates leads through campaigns,
which are then passed on to the sales team to convert into
customers.
• Sales Support: Marketing provides sales with tools like brochures,
presentations, and promotional materials to help close deals.
• Feedback Loop: Sales teams offer customer insights back to
marketing, which helps refine marketing strategies and messaging.
 Linkage of marketing functions with all functions in the
organization
Marketing and Product Development
• Market Research: Marketing conducts market research to identify
customer needs and preferences, which informs product
development.
• Product Launches: Marketing plans and executes the launch of new
products, ensuring they meet customer demands and are effectively
communicated to the target market.
• Product Feedback: Customer feedback gathered by marketing
informs product enhancements and new features.
 Linkage of marketing functions with all functions in the
organization
Marketing and Finance
• Budgeting: Marketing and finance collaborate on budget allocation,
ensuring that marketing campaigns are financially viable and align
with overall business goals.
• ROI Analysis: Marketing works with finance to analyze the return on
investment (ROI) of marketing activities, ensuring resources are used
efficiently.
• Pricing Strategies: Marketing and finance work together to develop
pricing strategies that are competitive and profitable.
 Linkage of marketing functions with all functions in the
organization
Marketing and Operations
• Demand Forecasting: Marketing provides operations with forecasts
based on campaign success, helping ensure adequate inventory and
resource allocation.
• Supply Chain Coordination: Marketing campaigns can drive demand
spikes, so close coordination with operations ensures that supply
chain processes can meet customer demand without delays.
• Product Quality: Marketing feeds customer insights to operations,
ensuring that products meet quality expectations, which is crucial for
brand reputation.
 Linkage of marketing functions with all functions in the
organization
Marketing and Human Resources (HR)
• Employer Branding: Marketing helps HR in building a strong employer
brand to attract top talent, especially through social media and online
platforms.
• Internal Communications: Marketing assists in developing internal
communication strategies to engage employees and align them with
the company’s mission and goals.
• Training and Development: HR and marketing collaborate on training
programs that ensure employees understand the brand and can
deliver a consistent customer experience.
 Linkage of marketing functions with all functions in the
organization
Marketing and Information Technology (IT)
• Digital Marketing: Marketing relies on IT to implement and manage
digital tools and platforms such as websites, Apps, CRM systems, and
analytics tools.
• Data Management: Marketing works with IT to manage and analyze
customer data, which informs targeted marketing strategies.
• Cybersecurity: IT ensures that marketing platforms and customer
data are secure, protecting the company’s brand and customer trust.
 Linkage of marketing functions with all functions in the
organization
Marketing and Customer Service
• Customer Feedback: Marketing uses insights from customer service
to refine messaging and improve customer satisfaction.
• Retention Strategies: Marketing and customer service work together
to develop loyalty programs and retention strategies that keep
customers engaged.
• Crisis Management: In case of customer complaints or crises,
marketing collaborates with customer service to manage
communication and protect the brand reputation.
 Linkage of marketing functions with all functions in the
organization
Marketing and Legal
• Compliance: Marketing works with the legal department to ensure
that all marketing materials and campaigns comply with regulations
and industry standards.
• Contract Negotiations: Legal support is essential for negotiating
contracts with vendors, influencers, or partners involved in marketing
campaigns.
• Intellectual Property: The legal team helps marketing protect the
company’s intellectual property, including trademarks, copyrights,
and patents.
 Linkage of marketing functions with all functions in the
organization
Marketing and Strategic Management
• Goal Alignment: Marketing ensures that its strategies are aligned
with the organization’s overall strategic goals, supporting the
company’s long-term vision.
• Corporate Social Responsibility (CSR): Marketing promotes the
company’s CSR initiatives, linking them to the brand’s values and
mission.
• Strategic Partnerships: Marketing identifies and manages
partnerships that can drive growth and innovation, working closely
with the strategic management team.
 Marketing Management Orientations
(Company Orientation towards marketplace)
• An organisation focus (and subsequently its marketing) is centred
around five key categories, classified into the following orientation
groups: Production orientation, product orientation, selling
orientation, market orientation, societal orientation, relational
orientation, and holistic marketing orientation.
• These approaches dictate the priorities and processes existent within
the organisation, and perhaps more importantly, the manner in which
the organisation takes its core offering to market and how it
empowers its marketing teams.
 Marketing Management Orientations
(Company Orientation towards marketplace)
• The Production Concept
The production concept holds that consumers will favor products that
are available and highly affordable.
A production orientated organisation commonly operates a mass
production model and streamlines this production process for its
product offering. This orientation approach assumes that its customers
value price, and therefore, it focuses on lowering production costs to
meet such price needs of this customer base.
 Marketing Management Orientations
(Company Orientation towards marketplace)
This price is believed to form the main value proposition of the production
orientation organisation’s key offering, focusing its resources towards
operations and positioning its key marketing communications on price-based
messages.
This assumption that price is king, however, isn’t always indicative of the
needs and wants of the target audience as the approach does not require
learning anything about the customer base. It assumes that its customers
want the cheapest product available and will strive to realize this price.
• Advantages: Economies of scale, efficiency, low cost to customers.
• Disadvantages: Disregards customer needs, set-up costs are usually high.
 Marketing Management Orientations
(Company Orientation towards marketplace)
• The Product Concept
The product concept holds that consumers will favor products that
offer the most quality, performance, and features. Focus is on
continuous product improvements.
It is sometimes assumed that a product orientation approach is similar
to a production orientation approach. But it is exactly the opposite.
This approach to business concerns its products and continually
improving and refining them so that the product can always be
superior to that of its competitors. So, as the previous orientation was
centered around price, product orientation is centered around quality,
which often increases the price.
 Marketing Management Orientations
(Company Orientation towards marketplace)
Premium products fall into this category, but the approach does not
always offer what its target audience actually wants or considers the
factors that the audience uses to form its purchasing decision.
Quality – and therefore a product orientated organisation often does
not consider external factors, and focuses on manufacturing a high
quality, premium product that is superior within the market it operates
and competes within.
• Advantages: Focus on quality, innovation, skills
development/outsourcing.
• Disadvantages: Potential missed market opportunities, obsolescence.
 Marketing Management Orientations
(Company Orientation towards marketplace)
• The Selling Concept
The selling concept holds that consumers will not buy enough of the firm’s
products unless it undertakes a large scale selling and promotion effort.
A selling orientated organisation focuses majority of its resources on selling
its products and services to its target audience. In a way, it does prioritise its
customers but not in a sense of listening to their needs and wants – its imply
wants to sell to them.
Existing products are usually given to the selling teams and they are tasked
to finding buyers to those products, wherever and whoever they may be.
Many organisation's will feel they are not selling enough of their products
and will, therefore, adopt selling orientated techniques to focus the
organisation on selling more and building on its profit margins.
 Marketing Management Orientations
(Company Orientation towards marketplace)
Disregarding customer needs in this way, and adopting aggressive outbound
selling techniques, is an approach that rarely works in the long term. This is
especially the case now that the general “customer” (regardless of industry)
is more empowered than ever and appreciates relationships within the
selling processes, especially within the B2B Pharma sectors. That said, this
isn't to say that organisation's cannot be successful with this approach. The
inbound selling/marketing approach has emerged as attractive in modern-
day selling orientated organisation's.
• Advantages: Immediate short-term selling are generated.
• Disadvantages: Risks customer confidence, costs, not always sustainable.
 Marketing Management Orientations
(Company Orientation towards marketplace)
• The Marketing Concept
The marketing concept depends on knowing the needs and wants of the
target markets and delivering the desired satisfactions better than
competitors do.
A marketing orientated organisation looks at the market and its target
audience first, before any production or sales activities takes place, to learn
what potential customers want from organisation's. The product or service
offering is therefore created with the customer in mind, resulting in a true
customer-first approach.
Market orientation, in marketing strategy terms, commonly revolves around
culture, values and other internal behaviour focused on satisfying customer
needs that are usually well-researched prior.
 Marketing Management Orientations
(Company Orientation towards marketplace)
Although this clearly has its benefits, it can also come at a cost to
organisations as it usually puts organisations on the back foot, always
reacting to customer demands rather than predicting or shaping them
with innovative products and services. This said, most markets are
moving more towards a marketing orientated approach as customers
have more and more access to information about what they are looking
to buy.
• Advantages: Customer satisfaction, loyalty, continual investment in
research.
• Disadvantages: Reactive, not always innovative, market always
changing.
 Marketing Management Orientations
(Company Orientation towards marketplace)
• The selling concept takes an inside-out view that focuses on existing
products and heavy selling. The aim is to sell what the company
makes rather than making what the customer wants.
• The marketing concept takes an outside-in view that focuses on
satisfying customer needs as a path to profits. As South-west Airlines’
colorful founder puts it, “We don’t have a marketing department, we
have a customer department.”
 Marketing Management Orientations
(Company Orientation towards marketplace)
 Marketing Management Orientations
(Company Orientation towards marketplace)
• The Societal Marketing Concept
The societal marketing concept holds that marketing strategy should deliver
value to customers in a way that maintains or improves both the consumer’s
and society’s well-being.
As people generally become more aware of their environments, the world
and the societies they live within, the societal orientation approach has
emerged, giving organisation's a new organizational philosophy.
The societal orientation organisation, considering its product, process and its
marketing, to an extent, focuses on the impact its organisation and products
has within the societies it operates within, as well as the wider environment.
Ethical considerations in this manner have become highly popular within the
pharmaceutical and life science industries.
 Marketing Management Orientations
(Company Orientation towards marketplace)
In competitive markets, however, this approach can be challenging to
sustain, especially for small to medium size organisation's where profits
and customer satisfaction can affect how it can execute the
environmental and societal orientation approach.
• Advantages: Image is enhanced, appeals to upcoming markets,
ethical.
• Disadvantages: Marketing message is sometimes distorted, limited
budget.
 Marketing Management Orientations
(Company Orientation towards marketplace)

Doing what’s right benefits both

consumers and the company. Social
responsibility isn’t just good for the
planet, but it’s good for business.
 Marketing Management Orientations
(Company Orientation towards marketplace)
• These marketing orientation approaches to business and marketing
are all present within today’s business landscapes, but they are also
representative of how business and marketing thinking has changed
within the last 100 years.
• In some industries, shifting from the production approach (Ford
Motor Co.) to a product approach (Apple) to a sales approach
(Amazon) to a market approach (Google) to now a societal approach
(The Body Shop).
 Marketing Management Orientations
(Company Orientation towards marketplace)
• Relational Marketing Concept:
The Relational Marketing concept is a customer-centric approach that
focuses on building and nurturing long-term relationships with
customers rather than merely driving immediate sales.
Unlike traditional transactional marketing, which emphasizes single
transactions and short-term gains, relational marketing aims to create
lasting connections that lead to sustained customer loyalty and repeat
business.
 Marketing Management Orientations
(Company Orientation towards marketplace)
• Relational Marketing Concept:
The relational marketing emphasizes on customer focus, customer
loyalty, long-term customer engagement, two-way communication,
trust and commitment, and customer retention
 Marketing Management Orientations
(Company Orientation towards marketplace)
 Marketing Management Orientations
(Company Orientation towards marketplace)
• The Holistic Marketing concept is an integrated and comprehensive
approach to marketing that recognizes the interconnectedness of all
aspects of a business and its environment.
• It emphasizes that marketing should not be seen as an isolated
function but rather as an integral part of the entire organization,
aligning all activities to create value for customers and other
stakeholders.
 Marketing Management Orientations
(Company Orientation towards marketplace)
 Selling Versus Marketing
Selling Marketing
The focus of selling is on the product or service itself focuses on the needs and wants of the customer

often a push strategy Marketing is a pull strategy

The main objective is to maximize sales and revenue The objective is to create value for customers and build long-term
relationships

Selling has a short-term focus, primarily concerned with achieving Marketing takes a long-term perspective, aiming to build brand
immediate sales targets and revenue goals equity, customer loyalty, and a sustainable competitive advantage

the customer is often seen as the final step in the business process Marketing views the customer as the starting point

The methodology revolves around sales techniques, persuasion, and Marketing involves a broader range of activities, including market
sometimes pressure to close the deal research, product development, pricing, distribution, promotion, and
after-sales service

The relationship is often transactional, with the focus on completing Marketing emphasizes building and maintaining a long-term
the sale rather than building a long-term connection relationship with customers, fostering loyalty and repeat business

Selling tends to be internally focused, starting with the company's Marketing is externally focused, starting with the needs of the
needs and objectives, and finding ways to sell what has been customer and working backward to develop products or services that
produced fulfill those needs
Concept of Marketing Myopia
 Concept of Marketing Myopia
• Marketing Myopia, first expressed in an article by Theodore Levitt in
Harvard Business Review, is a short-sighted and inward-looking
approach to marketing that focuses on fulfilment of immediate needs
of the company rather than focusing on marketing from consumers’
point of view.
• When a company focuses more on sales than on marketing or
consumers’ needs, that’s when marketing myopia strikes in. A brand
focusing on the development of high-quality products for customers
who disregard quality and only focus on the price is a classic example
of marketing myopia.
 Concept of Marketing Myopia
Some examples are:
• More focus on selling rather than building relationships with the
customers.
• Predicting growth without conducting proper research.
• Mass production without knowing the demand.
• Giving importance to just one aspect of the marketing attributes
without focusing on what the customer actually wants.
• Not changing with the dynamic consumer environment.
 Concept of Marketing Myopia
Examples:
• Kodak lost much of its share to Sony cameras when digital cameras
boomed and Kodak didn’t plan for it.
• Nokia losing its marketing share to android and IOS.
• Hollywood didn’t even tap the television market as it was focused
just on movies.
• Yahoo! (worth $100 billion dollars in 2000) lost to Google and was
bought by Verizon at approx. $5billion (2016).
 Concept of Marketing Myopia
Examples:
• Netflix's Resistance to Ad-Supported Models: For years, Netflix
resisted incorporating advertisements into its streaming service,
focusing solely on subscription-based revenue despite growing
competition from platforms offering cheaper, ad-supported tiers. This
reluctance ignored a segment of consumers who are price-sensitive
and willing to tolerate ads for lower subscription costs. As a result,
Netflix faced subscriber losses and slower growth.
 Concept of Marketing Myopia
Examples:
• Meta's (Facebook) Heavy Investment in the Metaverse: Meta
rebranded from Facebook and invested billions into developing the
Metaverse, anticipating it as the next big platform for social
interaction and commerce. The company prioritized this vision
despite unclear consumer demand and understanding of the
Metaverse concept. This heavy investment overlooked immediate
user concerns and preferences, such as privacy issues and platform
improvements.
 Concept of Marketing Myopia
Marketing Myopia in future:
• Drycleaners–New types of fiber and chemicals will result in less
demand for drycleaners.
• Grocery stores–A shift to the digital lifestyle will make grocery stores
to disappear.
• Facebook-With the new GDPR and data privacy rules, Facebook will
either need to change its business model or it will have to close its
business.
 Marketing Process

• This important figure shows marketing in a nutshell. By creating value

for customers, marketers capture value from customers in return. This
five-step process forms the marketing frame work for the rest of the
chapter and the remainder of the text.
 Marketing Process

Understand Design Construct an Build profitable Capture value

marketplace, customer- integrated relationships & from customers
customer driven marketing create to create profits
needs & marketing program that customer and customer
wants strategy delivers superior delight equity
value

Capture value from

Create value for customers & build customer relationship customers in return
 Journey of Marketing
(Marketing 1.0 to Marketing 6.0)
Marketing 1.0: Product-Centric Era
• This era focused primarily on the product. The main objective was to
sell products to as many customers as possible.
• The approach was transactional, with companies emphasizing mass
production and distribution. The marketing strategy was primarily
about pushing the product to the market with little regard for
customer needs.
• Example: Ford Model T - "Any customer can have a car painted any
color that he wants so long as it is black." This reflects the product-
centric approach, where the focus was on manufacturing and selling
the car in large quantities with limited customization.
 Journey of Marketing
(Marketing 1.0 to Marketing 6.0)
Marketing 2.0: Customer-Centric Era
• The shift here is towards the customer. Companies began to realize
the importance of understanding and meeting customer needs.
• Marketing became more about building relationships with customers.
The 4Ps (Product, Price, Place, Promotion) started gaining importance
as companies sought to differentiate their products in a more
competitive market.
• Example: Procter & Gamble (P&G) - P&G's approach in this era
focused on understanding customer needs through market research
and developing products that cater to those needs, such as Pampers,
which was designed based on extensive research into parents' needs.
 Journey of Marketing
(Marketing 1.0 to Marketing 6.0)
Marketing 3.0: Human-Centric Era
• Marketing 3.0 goes beyond just customers to view them as whole
human beings with emotions, values, and desires.
• Companies focus on making a positive impact on society and aligning
with the values of their customers. This includes Corporate Social
Responsibility (CSR) and sustainability.
• Example: Patagonia - The outdoor clothing company is known for its
commitment to environmental sustainability. Their "Don't Buy This
Jacket" campaign urged customers to consider the environmental
impact of their purchases, reflecting a value-driven marketing
approach.
 Journey of Marketing
(Marketing 1.0 to Marketing 6.0)
Marketing 4.0: Digital Era
• This era is driven by digital transformation. Marketing 4.0 integrates online
and offline interactions, focusing on engaging customers through multiple
channels.
• Companies leverage data, social media, and content marketing to create
personalized and interactive experiences. The customer journey becomes
more complex, with a focus on digital touchpoints.
• Example: Coca-Cola’s “Share a Coke” Campaign - This campaign used
personalized marketing by printing individual names on Coke bottles,
encouraging customers to share their experiences on social media,
effectively blending digital and traditional marketing.
 Journey of Marketing
(Marketing 1.0 to Marketing 6.0)
Marketing 5.0: Technology-Driven Era
• Marketing 5.0 is about leveraging advanced technologies like AI,
machine learning, big data, and the Internet of Things (IoT) to create
more personalized and efficient marketing strategies.
• The use of predictive analytics, chatbots, and automation helps
brands anticipate customer needs and deliver highly personalized
experiences at scale.
• Example: Amazon's Recommendation Engine - Amazon uses AI and
machine learning to analyze customer behavior and recommend
products tailored to individual preferences, creating a highly
personalized shopping experience.
 Journey of Marketing
(Marketing 1.0 to Marketing 6.0)
Marketing 6.0: Human-AI Collaboration Era
• The latest evolution in marketing involves the collaboration between
humans and AI, focusing on enhancing human creativity and empathy with
AI’s analytical power.
• Marketing strategies become more holistic, blending technology with
human insight to create meaningful connections and innovative solutions
that address both individual and societal needs.
• Example: Google’s Project “AI for Social Good” - This initiative uses AI to
address global challenges like healthcare, environment, and crisis response,
demonstrating how AI can collaborate with human efforts to create
marketing strategies that resonate on a deeper, more impactful level.
Integration of traditional, digital, & sustainable marketing

• Unified Customer Experience:

By integrating traditional and digital marketing, companies create a
cohesive brand experience that spans all touchpoints.
For example, a brand might use a TV commercial (traditional) to build
awareness, followed by retargeting ads on social media (digital) to
deepen engagement, and then highlight how their product is made
from sustainable materials (sustainable marketing).
Integration of traditional, digital, & sustainable marketing

• Data-Driven Insights and Responsiveness:

Digital marketing allows brands to gather vast amounts of data on
consumer behavior.
This data can inform both traditional marketing strategies (e.g., where
to place print ads) and sustainable practices (e.g., understanding
consumer demand for eco-friendly products).
By analyzing this data, companies can make real-time adjustments to
their campaigns, ensuring they are meeting both marketing and
sustainability goals.
Integration of traditional, digital, & sustainable marketing

• Cross-Channel Promotion:
Sustainable marketing messages can be amplified across both
traditional and digital channels.
For instance, a brand might launch a sustainability campaign through a
TV ad, then continue the conversation online via social media, blogs,
and influencer partnerships.
This cross-channel promotion ensures the message reaches a wider
audience and reinforces the brand’s commitment to sustainability.
Integration of traditional, digital, & sustainable marketing

• Building Trust and Loyalty:

Combining traditional methods (which often carry a sense of trust and
familiarity) with the innovative, responsive nature of digital marketing
helps build a stronger connection with consumers.
When sustainable marketing is layered on top, it appeals to consumers'
values, fostering loyalty and long-term engagement.
Integration of traditional, digital, & sustainable marketing

• Storytelling and Brand Values:

Digital platforms allow for more dynamic and interactive storytelling,
which is essential for communicating a brand’s sustainability efforts.
Traditional marketing can introduce the story, while digital channels can
provide deeper dives into the details, such as through interactive
websites, video content, or virtual events.
 AI, Big data & ML transforming marketing strategies, customer
experience & sustainable marketing
• Transformation of marketing strategies:
- Personalization and targeting: gathering data from various sources
and analyzing it to identify patterns in consumer behaviour,
preferences, and demographics.
- Predictive analysis: track and analyze customer trends in real-time to
forecast future trends, customer behaviour and campaign outcomes.
- Automated marketing campaigns: like email campaigns, social media
posts, and ad placements
 AI, Big data & ML transforming marketing strategies, customer
experience & sustainable marketing
• Transformation of customer experience (CX):
- Personalized customer journeys: by analyzing user data and
providing tailored recommendations, content, and experiences. Ex.
AI-powered Chatbots.
- Enhanced customer service: provide instant, 24/7 customer support,
handling a wide range of queries and issues.
- Predictive customer service: by analyzing past interactions and
behaviors, predictive algorithms can anticipate customer needs
before they even arise, offering proactive solutions or products. Ex.
an AI system might alert a customer about a subscription renewal or
suggest replenishing a product based on past purchase patterns.
 AI, Big data & ML transforming marketing strategies, customer
experience & sustainable marketing
• Transformation of Sustainable Marketing:
- Optimizing Supply Chains: Big data provides insights into every stage
of the supply chain, from sourcing to distribution, helping companies
optimize their supply chains by predicting demand more accurately,
reducing waste, and improving inventory management.
- Enhancing Transparency and Accountability: companies can track the
environmental impact of their operations and products, from energy
consumption to waste production, and AI can track and verify the
sustainability of products, ensuring that they meet ethical and
environmental standards.
 AI, Big data & ML transforming marketing strategies, customer
experience & sustainable marketing
• Transformation of Sustainable Marketing:
- Sustainable Consumer Engagement: Big data analytics can reveal
consumer preferences for sustainable products, AI-driven insights
help companies understand consumer attitudes towards
sustainability and tailor their messaging accordingly.
- Lifecycle Analysis and Product Development: businesses can conduct
comprehensive lifecycle assessments, identifying areas for
improvement and innovation in sustainability, and it can be used to
analyze the environmental impact of products throughout their
lifecycle, from raw material extraction to disposal.