Introduction to Marketing

Concepts and Orientations

Priyanka Suresh
What is Marketing?
Marketing Strategy
• Product

Managing the marketing effort

Customer Value Driven:
STP & Differentiation
• Price

•
Place Marketing Mix
• Promotion Person
Process
Physical Evidence
Measuring and Managing Market Return on Investment
What is Marketing?

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
(AMA, 2017)
Marketing Management
• The art and science of choosing target markets and getting, keeping, and growing
customers through creating, delivering, and communicating superior customer value
What is Marketed?
• Goods
• Services
• Events
• Experiences
• Persons
• Places
• Properties
• Organizations
• Information
• Ideas
Who Markets?
• A marketer is someone who seeks a response—attention, a purchase, a vote, a
donation—from another party
Five Basic Markets

• Resource markets
• Manufacturer markets
• Consumer markets
• Intermediary goods markets
• Government markets
Flow of Goods, Services, and Money Flows in a Modern
Exchange Economy or in the Five Basic Markets
The New Marketing Realities
• The market forces that shape the relationships among the different market entities
• The market outcomes that stem from the interplay of these forces
• The emergence of holistic marketing as an essential approach to succeeding in the
rapidly evolving market
Figure 1.3 The New Marketing Realities
Markets? Industry? Market Exchange
System?
• Marketers view industry as a group of sellers and use the term market to
describe customer groups

• Examples of markets are:

• Need markets (the diet-seeking market), product markets (the shoe market), demographic
markets (the “Millennium” youth market), and geographic markets (the Chinese market),
as well as voter markets, labor markets, and donor markets.
 Core Marketing Concepts
Needs, Wants, & Demands

WANTS

DEMANDS
NEEDS

• Needs shaped by • Wants backed by

• Physical culture and buying power
• Social individual • Willingness to
• Individual personality buy

1. Stated needs 2. Real needs 3. Unstated needs 4. Delight needs 5. Secret needs
Figure 3.2 Maslow’s Hierarchy of Needs
Segmentation, Target Markets, and
Positioning (STP)
• Segmentation
• Segments of buyers, on the basis of demographics, psychographics, and
behavioral differences between them.
• Target Market
• The segment of customers that the marketer chooses to target for marketing
of its products/ services
• Positioning
• To position the offering in customer’s mind as delivering some key benefit
Value Proposition, Offerings, Brands, Market
Channels
• Value Proposition
• Total benefits the company promises to deliver
• Offering
• Intangible value proposition Tangible offering; combination of products, services,
information, and experiences
• Brand
• Name, term, sign, symbol, design, or a combination of these that identifies the maker or
the seller of a product or service
• Market Channels
• Aim to reach the target market
• Types: Communication Channels; Distribution Channels; Service Channels
Paid, Owned, and Earned Media
• Paid media
• TV, magazine, display ads, paid search, and sponsorships; communication for
a fee.
• Owned media
• Communication channels owned by the marketers; websites; blogs, brochures
• Earned Media
• Voluntary communication about the firms by the outsiders; consumers, press
Impressions and Engagement
• Impressions
• No of times a customer views the communication
• No insight into results of viewing the communication
• Engagement
• Extent of a customer’s attention and active involvement with a
communication. E.g., Likes and Shares
Customer Value and Satisfaction
• Value
• A combination of quality, service,
and price (QSP)- customer value triad

• Customer Perceived Value

• Satisfaction
• Product’s Perceived Performance-
Relative to Expectations.
Supply Chain, Competition
• Supply Chain
• Upstream and Downstream partners
• Competition
• Actual and potential rival offerings and substitutes a buyer might consider
Marketing Environment

Actors and forces outside the control of marketing management

Marketing
Environment

Macro: Societal and natural forces- demographics, social-cultural, political legal, natural, economic,
technological

Macro Micro
Micro: immediate actors- suppliers, distributors, competitors, customers

20
 A Dramatically Changed Marketplace (1 of 5)
• New consumer capabilities
• Can use online resources as a powerful information and purchasing aid
• Can search, communicate, and purchase on the move
• Can tap into social media to share opinions and express loyalty
 A Dramatically Changed Marketplace (2 of 5)
• New consumer capabilities
• Can actively interact with companies
• Can reject marketing they find inappropriate or annoying
• Can extract more value from what they already own
 A Dramatically Changed Marketplace (3 of 5)
• New company capabilities
• Can use the internet as a powerful information and sales channel, including for
individually differentiated goods
• Can collect fuller and richer information about markets, customers, prospects,
and competitors
• Can reach customers quickly and efficiently via social media and mobile
marketing, sending targeted ads, coupons, and information
 A Dramatically Changed Marketplace (4 of 5)
• New company capabilities
• Can improve purchasing, recruiting, training, and internal and external
communications
• Can improve cost efficiency
 A Dramatically Changed Marketplace (5 of 5)
• New competitive environment
• Deregulation
• Privatization
• Retail transformation
• Disintermediation
• Private labels
• Mega-brands
Organizing the Marketing Department
• Functional organization
• Geographic organization
• Product or brand organization
• Market organization
• Matrix organization
Functional Organization
The Product Manager’s Interactions
Managing the Marketing Department
• The role of the CEO and the CMO
• Relationships with other departments
The Role of the CEO
• Convince senior management of the importance of being customer focused
• Hire strong marketing talent
• Facilitate the creation of strong in-house marketing training programs
• Appoint a chief marketing officer
The Role of the CMO
• Act as the visionary for the future of the company
• Build adaptive marketing capabilities
• Win the war for marketing talent
• Tighten the alignment with sales
• Take accountability for returns on marketing spending
• Infuse a customer perspective in business decisions affecting any customer touch
point
Relationships with Other Departments
• Marketers must work closely with:
• customer insights and data analytics teams
• different communication agencies
• channel partners
Building a Customer-Oriented Organization
• Create long-term customer value
• Requires managers at every level to be personally engaged in understanding,
meeting, and serving customers
• Customers expect companies to listen and respond to them
Traditional Organization versus Modern Customer-
Oriented Company Organization
Becoming a Market-Driven Company
• Develop a company-wide passion for customers
• Organize around customer segments instead of products
• Understand customers through qualitative and quantitative research
Characteristics of Customer-Centric Organizations

Low Customer-Centricity High Customer-Centricity

Product driven Market driven
Mass market focused Customer focused
Process oriented Outcome oriented
Reacting to competitors Making competitors irrelevant
Price driven Value driven
Hierarchical organization Teamwork
Company Orientation Toward the Market Place/
Philosophies Guiding Company’s Marketing Efforts
• Production Concept
• Available and highly affordable products
• High production efficiency; Low costs; Mass distribution
• Oldest

• Product Concept
• Quality, performance, and innovative features
Selling & Marketing Concept
• Selling Concept
• Large-scale selling and promotion effort

• Marketing Concept
• Customer-centered; sense-and-respond philosophy
• Customer-driven companies
• Works well when a clear need exists and when customers know what they
want
• Customer-driving marketing?
Holistic Marketing Concept
Integrated Marketing: “the
whole is greater than the sum of its
parts.”

Internal Marketing: hiring, Holistic Marketing (recognizing

training, the breadth and Relationship Marketing:
interdependencies of various Mutually satisfying long
and motivating marketing programs, processes
employees term relationships;
and activities Marketing Network

Performance
Marketing:understanding the
financial and nonfinancial
returns to business and society
Thank You!