WELCOME

Aksh Optifibre Limited 2

INTRODUCTION
Principles of
Marketing

Lecture-1
 Basic concept
 Environment
 Marketing strategies
 Managing market information
 Consumer market & buyer Behavior
 Business marketing & Buyer Behavior
 Product services idea or brand
 4Ps & mix
 Pricing
 Promotions
 Placement
 Sustain marketing
 Social responsibilities
 Market Ethics
 Digital Marketing
 Grading Plan

 Term Exams 28 ( 14 marks each)
 (PAQs)
 Class Presentations 03
 Assignments 03
 Quizzes & Report Writing 03

 Final Exam 60
 Total Marks 100
1. Understand the concepts associated with
and the fundamental differences among
business philosophies based on product
orientation, selling orientation, market
orientation, and relationship marketing
orientation.

2. Appreciate how marketing facilitates

exchange, between buyers and sellers.
3. Develop an appreciation of marketing’s
impact on society.

4. Recognize marketing’s role as a dynamic

strategic process that is able to adapt to
changing environmental forces.

Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved.

 Understand the marketplace and the
consumers.
 Understand the elements in marketing mix and

their
 Application in marketing decisions.
 Outline the functions of marketing

communication.
 Discuss social responsibility and ethics in

marketing.
 Understand the importance of customer

relationship in
 Principles of Marketing by Philip
Kotler and Gary Armstrong
 Fundamentals of Marketing by
Stanton, Etzel and Walker
 Marketing by Joel R. Evans and
Barry Berman
Today’s Topics
 Introduction-an
overview of marketing
 Road map
Introduction of Marketing
 Its all about marketing
 Idea share
 Every one even every thing doing the

marketing
 Market As Noun = Place vs mechanism
 Set of actual and potential buyer(whenever

we take name we will take same meaning )

 Verb taking product to its market
 Music to a Marketer’s Ears

“They’re the best.”

“I always eat there.”
“I only fly with that airline.”
“I buy my electronics at that store.”
“I will prefer to go in that school.”
 g Catal ot i on s
tis i n ogue P r om
v er s Co
Ad up
Sal o
Public
es What is ns
relations
S er v i ce Marketing,
mm er ce anyway?
E-co i ve r y
De l in g
Retai Spon Sh o pp
ling sorsh n el s
ips cha n
P ri ci ng
mai l
Pack ir ect R e
aging B illbo D sear
ards ch
 Definition
Marketing: The
process of creating
consumer value in
the form of goods,
services, or ideas
that can improve the
consumer’s life.
What is marketing ?
More than selling and advertising


Identifying and satisfying



customers needs
Range of activities (marketing


mix - 4P’s)
What is Marketing?
Learning to make what you can
sell vs. selling what you can
make.

Identifying and satisfying

customer needs and wants.
 Peter Drucker
 Goal of all organizations is to
gain and retain customers

 Innovation and marketing are the

only two ways to achieve the goal

“The rest only adds cost”

 The AMA managerial definition:
– “Marketing is the process of
planning and executing the
conception, pricing, promotion,
and distribution of ideas, goods,
and services to create
exchanges that satisfy individual
and organizational objectives.”
Marketing Involves having the Right
Product available in the Right Place at
the Right Time and making sure that
the customer is Aware of the Product.
Nature and scope of marketing

• Marketers:
– Centre on attempts to understand
consumers.
– Seize an advantage over competitors.
– Gain a foothold in a market.
– Satisfy consumers.

Copyright  2004 McGraw-Hill Australia Pty Ltd

PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix 1–24
Slides prepared by: Joe Rosagrata
 Who and what is involved in
marketing?

• Include:
– Physical goods—clothes, machines, tractors.
– Services—banks, theatres, health insurance.
– Ideas—Clean Up Australia, road safety.
– People—Cathy Freeman, Barry Humphries
(people are a marketable product or brand).
– Places—Daintree, a new business estate.
– Experiences—travel, yoga.

Copyright  2004 McGraw-Hill Australia Pty Ltd

PPTs t/a Marketing: A Practical Approach 5/e by Peter Rix 1–25
Slides prepared by: Joe Rosagrata
Marketing
Product Price

Customers

Place Promotion
Simple Marketing
System
Communication

Product/Service
Producer/Seller Consumer
Money

Feedback
Marketing’s 4 P’s
 Product
 Price
 Place
 Promotion
Marketing’s 4 P’s (+2)
 People
 Product

 Price

 Place

 Promotion

 Profits
 Marketing
–It assumes that it will
proceed in accordance with
ethical practices.
–Identifies the 4 marketing
variables - product, price,
promotion, and distribution.
Marketing Includes...
Personal selling


Advertising


Making products available in stores



Maintaining inventories


etc

What Can Be Marketed?
Goods Places


Services
Properties


Experiences
Organizations

Events

Persons
Information


Ideas

 How Does an
Organization Create a
Customer?
 Identifying customer needs
 Designing goods and services that
meet those needs
 Communicating information about
those goods and services to
prospective buyers
How is Marketing
Done?
Marketers Develop and Implement
a Marketing Plan Based on the
Following Information:
Organization’s Strengths
and Weaknesses

Opportunities and Threats to the

Organization in the Marketplace

Organization’s Overall Objectives

Peter F. Drucker Said:
If we want to know what a business is, we
have to start with its purpose. And its
purpose must lie outside the business
itself. In fact, it must lie in society since a
business enterprise is an organ of society.
There is one valid definition of
business purpose: to create a
customer.
 Reasons for
Studying Marketing
 Costs Careers
About 50% of total About 25 to 33% of
product costs are the work force hold
marketing positions.
marketing costs

Why Study
Marketing ?

Contributions to Society
Contributions to Marketing decisions affect
Individual Organizations the lives of individual
Critical to the success consumers and society as
 Why Study Marketing?
Plays an important role in society


Vital to business


Offers outstanding career



opportunities
Affects your life every day

 Marketing is
Everywhere in Your
Life
 Marketing is....
getting the right products to
the right people at the right
price and at the right place
and time with the right
promotion
More simply:
Marketing is the
delivery of customer
satisfaction at a profit.
 t o p
s s
et ’ r e
L th e
i
 Chapter One

Marketing: Creating and Capturing

Customer Value

Chapter 1- slide 46
 What Is Marketing?

Marketing is a process by
which companies create value
for customers and build strong
customer relationships to
capture value from customers
in return
Copyright © 2010 Pearson Education, Inc.  
Chapter 1- slide 47
Publishing as Prentice Hall
Marketing is a social and managerial process by which individuals and
groups obtain what they need and want through creating, offering and
exchanging products of value with others.
Kotler 1994
 Actors and Forces in a
Modern Marketing System

Environment

Company
(marketer)
Marketing End-user
Suppliers inter- market
mediaries

Competitors
 Simple Marketing System

Communication

Product/Service
Producer/Seller Money Consumer

Feedback
Core Marketing Concepts
 Pr
ts , od
uc
a n s Se and ts
, w nd rvi
e ds ma ce
Ne d de
s

an

Core

satisfaction,
Marketing

and quality

Value,
Concepts
M
ar

Exchange,
ke

transactions,
ts

and relationships
 Understanding the Marketplace
and Customer Needs
Core Concepts

• Customer needs, wants, and demands

• Market offerings
• Value and satisfaction
• Exchanges and relationships
• Markets

Copyright © 2010 Pearson Education, Inc.  

Chapter 1- slide 53
Publishing as Prentice Hall
 Understanding the Marketplace
and Customer Needs
Customer Needs, Wants, and Demands

Copyright © 2010 Pearson Education, Inc.  

Chapter 1- slide 54
Publishing as Prentice Hall
 Understanding the Marketplace
and Customer Needs

• Market offerings are some combination of products,

services, information, or experiences offered to a
market to satisfy a need or want

• Marketing myopia is focusing only on existing wants

and losing sight of underlying consumer needs

Copyright © 2010 Pearson Education, Inc.  

Chapter 1- slide 55
Publishing as Prentice Hall
 Understanding the Marketplace
and Customer Needs
Customer Value and Satisfaction
Expectations

Copyright © 2010 Pearson Education, Inc.  

Chapter 1- slide 56
Publishing as Prentice Hall
 A Product is....

‘...anything that can be offered to a market for attention, acquisition,

use or consumption and that may satisfy a need or want’

includes:
– physical goods, services, people, places, organizations,
activities, ideas etc
 Understanding the Marketplace
and Customer Needs
Exchange is the act of obtaining a desired
object from someone by offering
something in return

Copyright © 2010 Pearson Education, Inc.  

Chapter 1- slide 58
Publishing as Prentice Hall
 Exchange is...

‘...the act of obtaining a desired object from someone by offering

something in return’
Five conditions
1. Two parties
2. Something of value to offer each other
3. Willing to deal
4. Free to accept or reject offer
5. Able to communicate and deliver
 Understanding the Marketplace
and Customer Needs

Markets are the set of actual and

potential buyers of a product

Copyright © 2010 Pearson Education, Inc.  

Chapter 1- slide 60
Publishing as Prentice Hall
 ‘...a set of actual and potential buyers of a product’
 A place
 Marketing satisfies the needs of markets by facilitating the
exchange process

 Stimulate maximum consumption

 Maximize consumer satisfaction
 Maximize variety and choice
 Maximize quality of life
 Designing a Customer-Driven
Marketing Strategy

Marketing management is the art and

science of choosing target markets and
building profitable relationships with them
– What customers will we serve?
– How can we best serve these customers?

Copyright © 2010 Pearson Education, Inc.  

Chapter 1- slide 62
Publishing as Prentice Hall
 Designing a Customer-Driven
Marketing Strategy
Selecting Customers to Serve

Market segmentation refers to dividing the

markets into segments of customers

Target marketing refers to which segments to

go after

Copyright © 2010 Pearson Education, Inc.  

Chapter 1- slide 63
Publishing as Prentice Hall
 Designing a Customer-Driven
Marketing Strategy
Selecting Customers to Serve

Demarketing is marketing to reduce demand

temporarily or permanently; the aim is not
to destroy demand but to reduce or shift it

Copyright © 2010 Pearson Education, Inc.  

Chapter 1- slide 64
Publishing as Prentice Hall
 Designing a Customer-Driven
Marketing Strategy
Choosing a Value Proposition

The value proposition is the set of

benefits or values a company promises to
deliver to customers to satisfy their needs

Copyright © 2010 Pearson Education, Inc.  

Chapter 1- slide 65
Publishing as Prentice Hall
 Designing a Customer-Driven
Marketing Strategy
Marketing Management Orientations

Copyright © 2010 Pearson Education, Inc.  

Chapter 1- slide 66
Publishing as Prentice Hall
 Designing a Customer-Driven
Marketing Strategy
Marketing Management Orientations

Production concept is the idea that

consumers will favor products that are
available or highly affordable

Copyright © 2010 Pearson Education, Inc.  

Chapter 1- slide 67
Publishing as Prentice Hall
 Designing a Customer-Driven
Marketing Strategy
Marketing Management Orientations

Product concept is the idea that consumers

will favor products that offer the most
quality, performance, and features.
Organization should therefore devote its
energy to making continuous product
improvements.

Copyright © 2010 Pearson Education, Inc.  

Chapter 1- slide 68
Publishing as Prentice Hall
 Designing a Customer-Driven
Marketing Strategy
Marketing Management Orientations

Selling concept is the idea that consumers

will not buy enough of the firm’s products
unless it undertakes a large scale selling
and promotion effort

Copyright © 2010 Pearson Education, Inc.  

Chapter 1- slide 69
Publishing as Prentice Hall
 Designing a Customer-Driven
Marketing Strategy
Marketing Management Orientations

Marketing concept is the idea that

achieving organizational goals
depends on knowing the needs and
wants of the target markets and
delivering the desired satisfactions
better than competitors do

Copyright © 2010 Pearson Education, Inc.  

Chapter 1- slide 70
Publishing as Prentice Hall
 Designing a Customer-Driven
Marketing Strategy
Marketing Management Orientations

Societal marketing concept is the idea that a

company should make good marketing
decisions by considering consumers’ wants,
the company’s requirements, consumers’
long-term interests, and society’s long-run
interests

Copyright © 2010 Pearson Education, Inc.  

Chapter 1- slide 71
Publishing as Prentice Hall
 Preparing an Integrated Marketing
Plan and Program
The marketing mix is the set of tools (four Ps)
the firm uses to implement its marketing
strategy. It includes product, price,
promotion, and place.
Integrated marketing program is a
comprehensive plan that communicates
and delivers the intended value to chosen
customers.
Copyright © 2010 Pearson Education, Inc.  
Chapter 1- slide 72
Publishing as Prentice Hall
 Building Customer Relationships
Customer Relationship Management (CRM)

The overall process of building and maintaining

profitable customer relationships by delivering
superior customer value and satisfaction

Copyright © 2010 Pearson Education, Inc.  

Chapter 1- slide 73
Publishing as Prentice Hall
 Building Customer Relationships
Relationship Building Blocks: Customer Value and Satisfaction

Copyright © 2010 Pearson Education, Inc.  

Chapter 1- slide 74
Publishing as Prentice Hall
 Building Customer Relationships
Customer Relationship Levels and Tools

Copyright © 2010 Pearson Education, Inc.  

Chapter 1- slide 75
Publishing as Prentice Hall
 Building Customer Relationships
The Changing Nature of Customer Relationships

• Relating with more carefully selected

customers uses selective relationship
management to target fewer, more profitable
customers
• Relating more deeply and interactively by
incorporating more interactive two way
relationships through blogs, Websites, online
communities and social networks
Copyright © 2010 Pearson Education, Inc.  
Chapter 1- slide 76
Publishing as Prentice Hall
 Building Customer Relationships

Partner relationship management involves

working closely with partners in other
company departments and outside the
company to jointly bring greater value to
customers

Copyright © 2010 Pearson Education, Inc.  

Chapter 1- slide 77
Publishing as Prentice Hall
 Building Customer Relationships
Partner Relationship Management

• Partners inside the company is every

function area interacting with customers
– Electronically
– Cross-functional teams
• Partners outside the company is how
marketers connect with their suppliers,
channel partners, and competitors by
developing partnerships
Copyright © 2010 Pearson Education, Inc.  
Chapter 1- slide 78
Publishing as Prentice Hall
 Building Customer Relationships
Partner Relationship Management

• Supply chain is a channel that stretches

from raw materials to components to final
products to final buyers
• Supply management
• Strategic partners
• Strategic alliances

Copyright © 2010 Pearson Education, Inc.  

Chapter 1- slide 79
Publishing as Prentice Hall
 Capturing Value from Customers
Creating Customer Loyalty and Retention

• Customer lifetime value is the value of

the entire stream of purchases that the
customer would make over a lifetime of
patronage

Copyright © 2010 Pearson Education, Inc.  

Chapter 1- slide 80
Publishing as Prentice Hall
 Capturing Value from Customers
Growing Share of Customer

Share of customer is the portion of the

customer’s purchasing that a company gets
in its product categories

Copyright © 2010 Pearson Education, Inc.  

Chapter 1- slide 81
Publishing as Prentice Hall
 Capturing Value from
Customers
Customer equity is the total combined
customer lifetime values of all of the
company’s customers

Copyright © 2010 Pearson Education, Inc.  

Chapter 1- slide 82
Publishing as Prentice Hall
 Capturing Value from Customers
Building Customer Equity

• Building the right relationships with the

right customers involves treating customers
as assets that need to be managed and
maximized
• Different types of customers require
different relationship management
strategies
– Build the right relationship with the right
customers
Copyright © 2010 Pearson Education, Inc.  
Chapter 1- slide 83
Publishing as Prentice Hall
 The Changing Marketing
Landscape

Major Developments

Copyright © 2010 Pearson Education, Inc.  

Chapter 1- slide 84
Publishing as Prentice Hall
 t o p
s s
et ’ r e
L th e
i
Enough for today. . .
Any Question
Summary
Next….
 Understanding Marketing
and Marketing Process

 Core Marketing Concepts