Marketing

Lecture 1
 Marketing
Definitions:

• ‘’Marketing is defined as the process of

determining the needs and wants of consumers
and being able to deliver products that satisfy
those needs and wants. Marketing includes all of
the activities necessary to move a product from
the producer to the consumer.’’
 Marketing
Definitions:
• ‘’The process by which companies create value for
customers and build strong customer relationships in
order to capture value from customers in return.’’

• ‘’ It is the management process which identifies,

anticipates and supplies customer requirements
efficiently and profitably’’
 Needs, Wants and Demands

• Needs:
Needs describes the basic human requirements such as
food, air, water, clothing, shelter, recreation, education and
entertainment.
• Wants:
Wants is when needs becomes wants when they are
directed to specific objects that might satisfy the need.
• Demands:
Demands are wants for specific products backed by an
ability to pay
Marketing Process
 Step 1: Understanding The Marketplace
And Customer Needs And Wants
• It is important to understand customer needs,
wants, and demands to build want- satisfying
market offerings and building value-laden
customer relationships. This increases long-
term customer equity for the firm.
 Step 2: Designing A Customer-Driven
Marketing Strategy
Focus areas for designing a marketing strategy:
This includes 2 steps:
• Selecting customers to serve -defining the
target market
• Deciding how to serve customers in the best
way – choosing a value proposition
 Selecting customers to serve:
• The company first decides who it will serve and
divides the market into segments of the customer.
Then it goes after specific sections of the market or
its target market. They target customers based on
their level, timing, and nature of demand.
Choosing a value proposition
• They decide how it will serve their customer. That is
how it will differentiate and position itself in the
market. A brand’s value proposition is the set of
values and benefits that it promises to deliver its
customers. Companies need to design strong value
propositions to give them the greatest advantage in
their target markets.
 Step 3: Constructing an integrated marketing
plan that delivers superior value
• The company’s marketing strategy outlines which customers the company
will serve and how it will create value. Then the marketer develops
integrated marketing plans that will the intended value to target
customers.

• It consists of the firm’s marketing mix 4Ps (Discussed in lecture no.4) the
set of marketing tools the firm uses to implement its marketing strategy.

• The marketing program builds customer relationships by transforming the

marketing strategy into action.

• For this, it needs to blend all of these marketing tools into a

comprehensive, integrated marketing program that communicates and
delivers the customers’ expected value.
 Step 4: Build Profitable Relationships
• Customer relationship management is the overall process of building and
maintaining profitable customer relationships by delivering superior
customer value and satisfaction.

• Customer relationship management aims to produce high customer

equity, the total combined customer lifetime values of all of its customers.

• The key to building lasting relationships is the creation of superior

customer value and satisfaction.

• Companies today want to acquire profitable relationships and build

relationships that will increase their share of the customer portion of the
customers purchasing that a company gets in its product categories.
 Step 5: Capturing Value From Customers
• Customer relationship management’s ultimate aim is to produce high
Customer equity – total combined lifetime values of all of the company’s
current and potential customers.

• The more loyal to the company’s profitable customers, the higher are the
customer equity. Customer equity may even be a better way to measure its
performance than market share or current sales.

• Marketers cannot create customer value and build customer relationships

by themselves. They need to work closely with other company
departments and with partners outside the firm.

• In addition to being good at customer relationship management, they also

need to be good at partner relationship management.
 Functions of Marketing
In order to purchase the products and services needed
by consumer, the marketing process must accomplish
nine important functions. The functions are:
• Buying - people have the opportunity to buy products
that they want.
• Selling - producers function within a free market to sell
products to consumers.
• Financing - banks and other financial institutions
provide money for the production and marketing of
products.
 Functions of Marketing
• Storage - products must be stored and protected until
they are needed. This function is especially important
for perishable products such as fruits and vegetables.
• Transportation -products must be physically relocated
to the locations where consumers can buy them. This is
a very important function. Transportation includes rail
road, ship, airplane, truck, and telecommunications for
non-tangible products such as market information.
• Processing - processing involves turning a raw product,
like wheat; into something the consumer can use, e.g
Bread.
 Functions of Marketing
• Risk-Taking - insurance companies provide coverage to
protect producers and marketers from loss due to fire,
theft, or natural disasters.
• Market Information - information from around the world
about market conditions, weather, price movements, and
political changes, can affect the marketing process.
Market information is provided by all forms of
telecommunication, such as television, the internet, and
phone.
• Grading and Standardizing - Many products are graded
in order to adapt to previously determined standards of
quality
 IMPORTANCE OF MARKETING
Marketing is a very important aspect in business since it
contributes greatly to the success of the organization.
Production and distribution depend largely on marketing.
Many people think that sales and marketing are basically
the same. These two concepts are different in many
aspects. Marketing covers advertising, promotions, public
relations and sales. It is the process of introducing and
promoting the product or service into the market and
encourages sales from the buying public. Sales refer to the
act of buying or the actual transaction of customers
purchasing the product or service.
 IMPORTANCE OF MARKETING
• Marketing Promotes Product Awareness to the
Public
Getting the product or service recognized by the
market is the primary goal of marketing. No business
possibly ever thought of just letting the people find
out about the business themselves, unless the
company have already established a reputation in
the industry. But if the company has just started or is
new in that industry, the only means to be made
known is to advertise and promote.
 IMPORTANCE OF MARKETING
• Marketing Helps Boost Product Sales
Apart from public awareness about a company’s
products and services, marketing helps boost
sales and revenue growth. Whatever your
business is selling, it will generate sales once
the public learns about your product through all
forms of marketing. The more people hear and
see more of your advertisements, the more
they will be interested to buy.
 IMPORTANCE OF MARKETING
• Marketing Builds Company Reputation
In order to overcome the general market,
marketers aim to create a brand name
recognition or product recall. This is a
technique for the consumers to easily
associate the brand name with the images,
logo, or caption that they hear and see in the
advertisements.
 IMPORTANCE OF MARKETING
• Marketing Builds Competition
Marketing efforts get the word out on pricing of
products and services, which not only reaches the
intended consumers, but also reaches other
companies competing for the consumer’s business.
As opposed to companies that have a monopoly on
products and services that can charge almost any
price, marketing helps keep pricing competitive for
a business to try to win over consumers before its
competition does.
Marketing at Strategic Level
 Strategic Level
• Defining the Company’s Mission:
This is the stage at which company have to define its
purpose, what they want to accomplish in certain or
any environment.

• Setting Company Objectives and Goals:

At this stage the company have to classify its objectives
in line with the mission statements and inform every
level of management, so that they know their
responsibilities and work accordingly.
 Strategic Level
• Designing the Business Portfolio:
At this stage the company should decide which
business portfolio best fits the company’s strengths
and weaknesses to opportunities in the environment.
It involves two steps, first company should analyze its
current business portfolio and decide which business
should receive more, less or no investment. Second,
it must shape the future portfolio by developing
strategies for growth and downsizing.
 Strategic Level
• Planning Marketing and Other Strategies:
After deciding the business portfolio now its
time to give it practical shape and implement
the plan as the company have identified and
allocated all the responsibilities to all the
concerned departments.