lecture-1

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Class Methodology• Lecture/Presentation• Video and Discussion• Case studies• Marks

1. Class discussion2. Presentation /Assignments3. Project4. Quiz

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• 100 Marketing Tag Lines/Slogans• 100 Advertisements

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Marketing for the 21st Century

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What is Marketing?

Marketing is an organizational function and a set of processes for creating,

communicating, and delivering value to customers and for managing

customer relationships in ways that benefit the

organization and its stakeholders.

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What is Marketing Management?

Marketing management is the

art and science of choosing target markets

and getting, keeping, and growing customers through

creating, delivering, and communicatingsuperior customer value.

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Selling is only the tip of the iceberg

“There will always be a need for some selling. But the aim of marketing is to

make selling superfluous. The aim of marketing is to know and understand the

customer so well that the product or service fits him and sells itself. Ideally, marketing

should result in a customer who is ready to buy. All that should be needed is to make

the product or service available.”

Peter Drucker

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What is Marketed?GoodsGoods

ServicesServices

Events & ExperiencesEvents & Experiences

PersonsPersons

Places & PropertiesPlaces & Properties

OrganizationsOrganizations

InformationInformation

IdeasIdeas

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Marketing Can Promote Ideas

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A Simple Marketing SystemA.K.A. The Exchange Process

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Structure of Flows in a Modern Exchange Economy

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For an exchange to occur….• There are at least two parties.• Each party has something that might be of value to

the other party.• Each party is capable of communication and delivery.• Each party is free to reject the exchange offer.• Each party believes it is appropriate or desirable to

deal with the other party.

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Core Marketing Concepts

• Needs, wants, and demands

• Target markets, positioning, Segmentation

• Offerings and brands

• Value and satisfaction• Marketing channels• Supply chain• Competition• Marketing

environment

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Maslow’s Hierarchy of Needs

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1. Needs - states of felt deprivation including physical needs for food, social needs for belonging and individual needs for self-expression. i.e. I am thirsty.

2. Wants - form that a human need takes as shaped by culture and individual personality. i.e. I want a Coca-Cola/Pizza.

3. Demands - human wants backed by buying power. i.e. I have money to buy a Coca-Cola/Pizza

New Consumer Capabilities• A substantial increase in buying power• A greater variety of available goods and services• A great amount of information about practically

anything• Greater ease in interacting and placing and

receiving orders• An ability to compare notes on products and

services• An amplified voice to influence public opinion

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Company Orientations

Production

Selling Marketing

Product

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Holistic Marketing Dimensions

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The Four P’s

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Internal Marketing

Internal marketing is the task of hiring, training, and motivating able employees who want to

serve customers well.

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Performance Marketing

• Financial Accountability

• Social Responsibility Marketing

Social Initiatives• Corporate social marketing• Cause marketing• Corporate philanthropy• Corporate community

involvement• Socially responsible

business practices

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Marketing Management Tasks

• Develop market strategies and plans• Capture marketing insights• Connect with customers• Build strong brands• Shape market offerings• Deliver value• Communicate value• Create long-term growth

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Levels of a Marketing Plan

• Strategic– Target marketing

decisions– Value proposition– Analysis of

marketing opportunities

• Tactical– Product features– Promotion– Merchandising– Pricing– Sales channels– Service

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Product-Market Expansion Grid

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The Business Unit Strategic Planning Process

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Organizational Charts

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Marketing Debate: Take a Position!

Does marketing shape consumer needs? or Does marketing merely reflect the needs and wants of consumers?

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Three V’s Approach to Marketing

Define the value segmentDefine the value segment

Define the value propositionDefine the value proposition

Define the value networkDefine the value network

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What is the Value Chain?

The value chain is a tool for identifying ways to create more

customer value because every firm is a synthesis of primary and support

activities performed to design, produce, market, deliver, and support its product.

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Porter’s Value Chain

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Model of Consumer Behavior

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Key Psychological Processes

Motivation

MemoryLearning

Perception

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Motivation

Freud’sTheory

Behavioris guided by subconsciousmotivations

Maslow’sHierarchyof Needs

Behavioris driven by

lowest, unmet need

Herzberg’sTwo-Factor

Theory

Behavior isguided by motivating

and hygienefactors

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Maslow’s Hierarchy of Needs

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Successive Sets Involved in Consumer Decision Making

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How Customers Use and Dispose of Products

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Behavioral Segmentation Breakdown

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Five Forces Determining Segment Structural Attractiveness

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