What is Marketing? Marketing is societal process by which individuals and groups obtain what they need and want through creating, offering and freely exchanging products and services of value with others.

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 communicating superior customer value.

Simple Marketing System Industry (a collection of sellers) Market of Buyers) Communication Goods/services Money Information

What is Marketed? Scope Ideas Goods Events Services Organizations Persons Scope Place Experiences Information Properties

Basic Concepts of Marketing Market Segmentation & Target Selection Needs, Wants & Demand Basic Concepts Product Or Offering Value & Satisfaction Exchange & Transaction

Market The set of actual and potential buyers of a product. These people share a need or want that can be satisfied through exchange relationships.

Segmentation and Targeting Market Segmentation: Divide the market into segments of customers Target Marketing: Select the segment to cultivate Segment1 Segment 2

Need, Want and Demand Needs - State of felt deprivation including physical, social, and individual needs. Wants - Form that a human need takes, as shaped by culture and individual personality. Demand – Want along with buying power converts into demand.

Marketers and Prospects Marketer: Someone seeking to sell something to another party. Prospect: Someone seeking to buy something from another party.

Value & Satisfaction Value = Benefit Cost Benefit = Functional Benefit + Emotional Benefit Cost = Monetary Cost + Time Cost +Energy Cost + Psychic Cost

Satisfaction Customer Satisfaction: Dependent on the product’s perceived performance relative to a buyer’s expectations. If performance (P) is lower than expectations (E), satisfaction is low. If performance (P) is higher than expectations (E), satisfaction is high. E=10 > P=8 E=10 < P=12

Exchange & Transaction Exchange: Obtaining a desired product from someone by offering some thing in return. Five conditions must be satisfied: At least two parties Each should have something of value to the other party Each party is capable of communication and delivery Each party is free to accept or reject the exchange offer Each party believes it is desirable to deal. Transaction: It is a trade of values between two or more parties. Monetary Transaction: Money is paid against goods Barter Transaction: Trading goods or services for other goods or services.

Basic Concepts of Marketing Relationship & Network Marketing Channels Basic Concepts Supply Chain Competition Marketing Environment

Relationship & Network Relationship marketing has the aim of building long term mutually satisfying relations with key parties: Customers Suppliers Distributors Stake holders Employees Outcome Marketing Network

Communication Channels Distribution Channels Marketing Channels Communication Channels Dialogue Channels Monologue Channels Distribution Channels Physical Distribution Channels Service Distribution Channels Channels Selling Channels Distributor & Retailers Insurance Co. Banks

Supply Chain

Competition 1 2 3 4 Brand Competition Other companies offering a similar product and services to the same customers at similar prices. 2 Industry Competition All companies making the same product or class of products (all price range) 3 Form Competition All companies manufacturing products that supply the same service. 4 Generic Competition All companies that compete for the same consumer money.

Marketing Environment Internal Environment Micro Environment Macro Environment

Marketing Mix Marketing Mix is the set of marketing tools that the firm uses to pursue its marketing objective. Four P’s and Four C’s Product: Customer Solution Price: Customer Cost Place: Convenience Promotion: Communication

Marketing Mix Product Promotion Place Price Product Variety Quality Design Features Brand Name Packaging Sizes Services Warranties Returns Price List Price Discounts Allowances Payment Period Credit Terms Promotion Sales Promotion Advertising Sales Force Public Relations Direct Marketing Place Channels Coverage Assortment Locations Inventory Transport

Marketing Mix Strategy Promotion Mix Sales Promotion Advertising Offering Mix Company Product Service Price Sales Force Distribution Channels Target Customers Public Relations Direct Mail, Tele-marketing & Internet

Summary Marketing Management is creating, delivering, and communicating superior customer value. It has a wider scope. Marketing starts with recognition of needs of customer. Then segmentation and selection of market is done to choose a specific kind of need to fulfill. Then product is positioned in the minds of the customer. Marketing has four important P’s: Product, Price, Promotion and Place. Product is placed in the competitive environment. Customer is satisfied when the product meets his expectation. Company’s focus is to earn profit through customer satisfaction.

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