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MARKETING AND SERVICES

MANAGEMENT
Dr.Bharath V MFM., M.Com., Ph.D
Assistant Professor
Department of Management
Kristu Jayanti College (Autonomous)
Bengaluru

[email protected]
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Marketing- Introduction
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Marketing
• Today, marketing must be understood not in the sense of
making a sale—“telling and selling”—but in the sense of
satisfying customer needs.
• If marketers engage consumers effectively, understand
their needs, develop products that provide superior
customer value, and price, distribute, and promote them
well, these products will sell easily.
• According to management guru Peter Drucker, “The aim
of marketing is to make selling unnecessary.”
• 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.
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Definition of Marketing
• According to American Marketing Association (2004) -
"Marketing is an organisational function and set of
processes for creating, communicating and delivering
value to customers and for managing relationships in a
way that benefits both the organisation and the
stakeholder.”

• According to Kotler “The set of strategies and activities by

which companies acquire and engage customers, build
strong customer relationships, and create superior
customer value in order to capture value from customers
in return.”
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Objectives of Marketing
• Customer Satisfaction

• Ensure Profitability

• Building Organizational Goodwill

• Create Demand

• Increase Sales Volume

• Enhance Product Quality

• Create Time and Place Utility

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Scope of Marketing
• Goods
• Services
• Experience
• Events
• Persons
• Places
• Properties
• Organizations
• Information
• Ideas
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• Goods: Physical goods constitute the bulk of most

countries’ production and marketing effort. The India
produces and markets billions of physical goods, such as
steel, cement, agriculture products and others.

• Services: As economies advance, a growing proportion

of their activities are focused on the production of
services. This industry today consists of above 50% of
indian GDP. Services include airlines, hotels, and
maintenance and repair people, as well as professionals
such as accountants, lawyers, engineers, and doctors.
Many market offerings consist of a variable mix of goods
and services.
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• Experiences. By arranging several services and goods,

one can create, stage, and market experiences. Walt
Disney World’s Magic Kingdom is an experience; so is the
Wounderla amusement part.

• Events. Marketers promote time-based events, such as

the Olympics, trade shows, sports events, and artistic
performances.

• Persons. Celebrity marketing has become a major

business. Artists, musicians, Cricketers, Actors and
Actress, CEOs, physicians, high-profile lawyers and
financiers, and other professionals draw help from
celebrity marketers.
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• Places. Cities, states, regions, and nations compete to

attract tourists, factories, company headquarters, and new
residents.

• Properties. Properties are in/tangible rights of ownership

of either real property (real estate) or financial property
(stocks and bonds).

• Organizations. Organizations actively work to build a

strong, favorable image in the mind of their publics, like
TATA, Reliance & others
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• Information. The production, packaging, and distribution

of information is one of society’s major industries. Among
the marketers of information are schools and universities;
publishers of encyclopedias, nonfiction books, and
specialized magazines; and Internet Web sites.

• Ideas. Every market offering has a basic idea at its core.

products and services are platforms for delivering some
idea or benefit to satisfy a core need.
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Understanding the Marketplace and

Customer Needs
• (1) Needs,wants, and demands

• (2) Market offerings (products, services and experiences)

• (3) Value and satisfaction

• (4) Exchanges and relationships

• (5) Markets.
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Customer Needs, Wants, and Demands

• Human needs are states of felt deprivation. They include
basic physical needs for food, water, shelter, healthcare, and
transportation.

• Human wants are desires that people seek to satisfy. They

are essential drives that can be classified into three broad
categories in economics: necessities, comforts, and luxuries

• Human wants become demand when a customer has the

ability and resources (often money) to fulfil them.
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• For example, Starbucks Ex. CEO Kevin Johnson regularly

spends time in Starbucks stores, working the counter,
brewing coffee, handing out orders, wiping tables, and
chatting with customers. Johnson wants to be certain that
he understands “what it means to be human in a digital age
and what that means for the future of Starbucks.
• Amazon forward new or existing product list to their
customer email so that ones that catch my products
customer eyes.
• Similarly, To see up close what their customers
experience, OYO’s CEO Ritesh Agarwal regularly stay at
the company’s host locations, making sure they live up to
the company’s vision.
• Such personal visits help the pair to shape new customer
solutions based on real user experience.
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2. Market Offerings—Products, Services, Solutions,

and Experiences
• Consumers’ needs and wants are fulfilled through market
offerings.

• Products: Physical products etc.

• Services: Airline, hotel, retailing and banking etc.
• Solution: Combination of products and services
• Experiences: happiness

• Many sellers make the mistake of paying more attention

to the specific products they offer than to the benefits and
experiences produced by these products. These sellers
suffer from marketing myopia
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Apple Tech. Company

• Apple’s retail stores are very every around the world,
where “life-feels-good” experience with the product
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Customer Value and Satisfaction

• Customers expectations about the value and satisfaction
that various market offerings will deliver and buy
accordingly.
• Satisfied customers buy again and tell others about their
good experiences.
• Dissatisfied customers often switch to competitors and
disparage the product to others.

• Customer value and customer satisfaction are key

building blocks for developing and managing customer
relationships
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Exchanges and Relationships

• Marketers create, maintain, and grow desirable exchange
relationships with target audiences involving a product,
service, idea, or other object.

• Companies want to build strong relationships by

consistently delivering superior value.
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Markets
• A market is the set of actual and potential buyers of a
product or service.

• The buyers share a particular need or want that can be

satisfied through exchange relationships.
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Case study

• EMIRATES’ Customer Value–Driven Marketing: Engaging

Customers and Building a Brand Community

• Overview
• Emirates Group Operates 6 continent and 152 cities.
• HQ in Dubai, UAE in 1985.
• Employing 1L people across 172 nationalities. 249 fleet
• So be good to yourself, Fly Emirates

Customer value driven marketing

1. Customer-focused value proposition through a combination of products,
services, and experiences, customized for each market at each destination.
2. The Skywards Program, the airline’s frequent traveler loyalty program, is an
important part of the airline’s success in building strong customer
relationships.
3. Premium-class passengers that offers free luxury hotel accommodation,
meals, ground transportation, and visa costs in Dubai.
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• During and after the COVID-19 pandemic, most airlines

would reduce their fares to remain competitive, but
Emirates continued to maintain its fares and get good
returns. This was due to its customer value–driven
marketing approach and its service proposition, for which
customers were willing to pay a premium.

• Where competitors emphasized low prices or well

maintained aircraft, Emirates built customer engagement
and relationships. Beyond the functional benefit of air
travel, Emirates marketed its services as “The Emirates
Experience,” a genuine passion for comfort and attention
to detail. Customers didn’t just fly Emirates; they
experienced it.
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Engaging Customers and Building a Brand Community

• Emirates uses online, mobile, and social media marketing to connect

with its customers.

• Emirates also creates brand “tribes”—large groups of highly engaged

users—with the help of social media platforms such as Facebook,
Twitter, Instagram, YouTube, and Pinterest.

• For example, the main Emirates Facebook page has almost 11 million
likes. The Emirates Twitter page adds another 1.5 million; the Emirates
Instagram page has 6.2 million followers, making it the largest in the
industry; and the company’s LinkedIn page has 2.5 million followers,
also no. 1 in the airline business.

• Emirates’ social media presence engages customers at a high level,

gets them talking with each other about the brand, and weaves the
brand into their daily lives through cross-media campaigns that integrate
digital media with traditional tools to connect with customers.
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• TODAY’S SUCCESSFUL COMPANIES have one thing in

common:

• Like Emirates, they are strongly customer-focused and

heavily committed to marketing. These companies share a
passion for satisfying customer needs in well-defined target
markets. They motivate everyone in the organization to help
build lasting customer relationships based on creating value.
• Customer relationships and value are especially important
today. Facing dramatic technological advances and deep
economic, social, and environmental disruptions, today’s
customers are reassessing how they engage with brands.
New digital, mobile, and social media developments have
revolutionized how consumers shop and interact, in turn
calling for new marketing strategies and tactics. It’s now more
important than ever to build strong customer engagement,
relationships, and support based on real and enduring
customer value.
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Importance of Marketing
• Customer Awareness and Reach

• Brand Building

• Competitive advantage

• Customer Engagement & Relationship

• Sales and Revenue Growth

• Market Research and Insight

• Product development and innovation

• Economic Contribution
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• Customer Awareness and Reach: Marketing helps

businesses reach their target audience and raise
awareness about their products or services. Effective
marketing strategies ensure that potential customers are
informed about what a company offers.

• Brand Building: Through consistent messaging and

branding efforts, marketing helps establish and strengthen
a company’s identity. A strong brand creates recognition,
trust, and loyalty among consumers.

• Competitive Advantage: In a crowded marketplace,

marketing differentiates a business from its competitors. It
helps highlight unique selling plans (USPs) and value
propositions that make a product or service stand out.
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• Customer Engagement and Relationships: Marketing

fosters communication and engagement with customers.
Building relationships through social media, content
marketing, and personalized experiences can enhance
customer loyalty and satisfaction.

• Sales and Revenue Growth: Effective marketing

strategies drive sales by attracting and converting leads into
customers. It helps create demand, stimulate interest, and
ultimately increase revenue.

• Market Research and Insights: Marketing involves

gathering and analyzing data about customer preferences,
behaviors, and market trends. This information is crucial for
making informed decisions and adapting strategies to meet
changing needs.
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• Product Development and Innovation: Insights gained

from marketing research can guide product development
and innovation. Understanding customer needs and
market gaps helps businesses create products that
address real demands.

• Economic Contribution: On a broader scale, marketing

drives economic growth by fostering competition, creating
jobs, and supporting various sectors. It contributes to the
overall health and dynamism of the economy.
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Approaches to the study of Marketing

• 1. Theoretical Approach

• Marketing Theories: Key theories include the Four Ps

(Product, Price, Place, Promotion), the AIDA Model
(Attention, Interest, Desire, Action), and the Distribution of
Innovations.
• Consumer Behavior: Theories in this area explore how
consumers make purchasing decisions, the psychological
and social factors influencing their choices, and how to
segment and target different consumer groups.
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Strategic Approach
• Strategic Planning: This approach focuses on long-term
planning and strategy development. It includes
understanding market positioning, competitive analysis,
and creating strategic marketing plans that align with
overall business objectives.

• SWOT Analysis: Analyzing a company’s Strengths,

Weaknesses, Opportunities, and Threats helps in
formulating effective marketing strategies and addressing
potential challenges.
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Quantitative Approach
• Market Research: This approach uses statistical
methods and data analysis to gather insights about
market trends, customer preferences, and the
effectiveness of marketing campaigns. Techniques include
surveys and experiments
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• Metrics and Analytics: Analyzing key performance
indicators (KPIs) such as customer acquisition cost,
lifetime value, and return on investment (ROI) helps in
assessing the effectiveness of marketing efforts.
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Qualitative Approach
• Consumer Insights: This involves understanding
customer experiences, attitudes, and perceptions through
methods like focus groups, interviews, and ethnographic
studies. It provides in-depth insights into the “why” behind
consumer behavior.

• Brand Perception Studies: Qualitative research helps in

understanding how consumers perceive a brand and what
emotional and psychological connections they have with
it.
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Digital and Technological Approach

• Digital Marketing: This approach examines the use of
digital channels such as social media, search engines,
email, and websites to reach and engage with customers.
It includes studying SEO, content marketing, and online
advertising.

• Data Analytics and AI: Leveraging big data and artificial

intelligence to predict consumer behavior, personalize
marketing efforts, and optimize campaigns is a growing
area of focus.
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Ethical and Social Approach

• Corporate Social Responsibility (CSR): This approach
explores how companies incorporate ethical practices and
social responsibility into their marketing strategies, and
how these practices impact consumer perception and
brand loyalty.

• Sustainability
Marketing: Studying how businesses
market their sustainability efforts and environmental
impact to appeal to increasingly eco-conscious
consumers.
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Cultural and Global Approach

• Cross-Cultural Marketing: This approach examines how
marketing strategies are adapted for different cultural
contexts and international markets. It involves
understanding cultural norms, values, and consumer
behavior across different regions.

• Global Marketing Strategy: It focuses on developing

marketing strategies that work across various international
markets while balancing global consistency with local
adaptation.
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Experiential and Behavioral Approach

• Experiential Marketing: This approach studies how
creating memorable and engaging experiences for
consumers can enhance brand perception and loyalty. It
includes events, experiential campaigns, and interactive
marketing.

• Behavioral Analysis: Analyzing consumer behavior

patterns, such as buying habits and decision-making
processes, helps in tailoring marketing strategies to better
meet consumer needs.
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Function of Marketing
Marketing
Functions

Physical
Exchange Facilities
Distribution

Merchandising Transportation Standardisation

Buying Inventory Financing

Risk
Selling Warehousing
Management

Material After sales

handling services