Fundamental of

Marketing

Dr. Sunil Atulkar

Associate Professor
School of Management
 Course Outcomes
 CO 1: Identify the concepts of Marketing
management and its importance in the
various areas of the business.
 CO 2: Demonstrate interactive use of
promotion mix in brand building.
 CO 3: Obtain an understanding about the
emerging business areas of marketing.
 CO 4: Apply knowledge, critical thinking and
skills to solve complex business problems.
 CO 5: Be able to use analytic skills in
improving the various functions of marketing.
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Marketing = ?

Marketing is the process of planning and execution of the

concept, pricing, promotion, and distribution of ideas, goods,
services to create exchanges that satisfy individual and
organizational goals
 American Marketing Association

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 Marketing = ?
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.

Philip Kotler

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 Marketing = ?

 Marketing is the sum of all activities that take you to a sales

outlet. After that sales takes over.
 Marketing is all about creating a pull, sales is all about push.
 Marketing is all about managing the four P’s –
 product
 price
 place
 promotion

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 Simple Marketing System
Communication

Goods/services
Industry Market
(a collection (a collection
of sellers) of Buyers)
Money

Information
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 The Marketing Mix

 The conventional view of the marketing mix

consisted of four components (4 Ps): Product,
Price, Place/ distribution and Promotion.
 Generally acknowledged that this is too narrow
today; now includes , Processes, Productivity
[technology ]People [employees], Physical
evidence

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 The 4 Ps & 4Cs

Marketing Convenience
Mix

Place
Product

Customer
Solution Price Promotion

Customer Communication
Cost
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 Difference
Difference Between
Between -- Sales
Sales &
& Marketing
Marketing ??

Sales
trying to get the customer to want what the
company produces
Marketing
trying to get the company produce what
the customer wants

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 What do we market
 Goods
 Services
 Experiences
 Personalities
 Place
 Organizations
 Information
 Ideas and concepts

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 Core Concepts of Marketing

 Needs, Wants, Desires / demand

 Products, Utility, Value & Satisfaction
 Exchange, Transactions & Relationships
 Markets, Marketing & Marketers.

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THANK YOU
 Some Core Concepts

Needs, wants Utility, Value &

Products
demands Satisfaction

exchange,
Markets Marketing &
Transaction
Marketers
Relationships

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 Need – food ( is a must )
 Want – Pizza, Burger, French fry's ( translation of a need as per
our experience )
 Demand – Burger ( translation of a want as per our willingness
and ability to buy )
 Desire – Have a Burger in a five star hotel

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 Marketing Triangle

Customers

Company Competition

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 CUSTOMER IS . . . . .

Anyone who is in the market looking at a product /

service for attention, acquisition, use or consumption
that satisfies a want or a need

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 CUSTOMER has needs, wants, demands and desires
 Understanding these needs is starting point of the
entire marketing
 These needs, wants …… arise within a framework or
an ecosystem
 Understanding both the needs and the ecosystem is
the starting point of a long term relationship

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 How Do Consumers Choose Among
Products & Services?

 Value - the value or benefits the customers gain from

using the product versus the cost of obtaining the product.
 Satisfaction - Based on a comparison of performance and
expectations.
◦ Performance > Expectations => Satisfaction
◦ Performance < Expectations => Dissatisfaction

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 Customer Values
Value = Benefit / Cost
Benefit = Functional Benefit + Emotional
Benefit
Cost = Monetary Cost + Time Cost +
Energy Cost + Psychic Cost

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 The Marketing Process
 Business Mission Statement
 Objectives
 Situation Analysis (SWOT)
 Marketing Strategy
 Target Market Strategy
 Marketing Mix
 Product
 Promotion
 Price
 Place – Distribution
 People
 Process
 Implementation, Evaluation and Control

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THANK YOU
The Give and Get of Marketing

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 Marketers and Markets
 Marketers are focused on stimulating exchanges
with customers who make up markets – B2C or
B2B.
 The market is comprised of people who play a
series of roles: decision makers, consumers,
purchasers, and influencers.
 It is absolutely essential that marketers have a
detailed understanding of consumers, their needs
and wants.
 Much happens before and after the sale to affect
customer satisfaction

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Stages of Customer Interaction

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 Product is . . . . .

Anything that is offered to the market for

attention, acquisition, use or consumption that
satisfies a want or a need

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 Types of Products

PRODUCTS

Consumer Industrial
Services
Products Products

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 Product Mix
Width – how many product lines a company has
Length – how many products are there in a product line
Depth – how many variants of each product exist
within a product line

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 What is a Service?
An act or performance offered by one party to another
(performances are intangible, but may involve use of
physical products)
An economic activity that does not result in ownership.
A process that creates benefits by facilitating a desired
change in customers themselves.

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 Some Industries - Service Sector
 Banking  Health care
 Stock broking  Education
 Restaurants
 Telecommunication
 Catering
 Laundries, dry-cleaning
 Professional Services
 Insurance (e.g., law, architecture,
consulting)
 News and Entertainment  Transportation

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 Major Characteristic of Services

 Intangibility – Services are intangibility cannot be

seen, tasted, felt, heard or smelled before purchase.
 Inseparability - Services are produced and consumed
simultaneously.
 Variability – Services are highly variable
 Perishability – Services cannot be stored.
 Non Ownership - Services are rendered but there is no
transfer of title

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 Difference in Selling and Marketing
 Marketing starts with customer needs and demand and ends with
customer satisfaction. It is a customer oriented approach. Sales, on
the other hand, is about selling what the company produces. It
doesn’t care about the need of the customer but about the profits.
 Marketing is about providing quality products and consumer
satisfaction. Selling is about maximizing sales and it is a money
oriented approach.
 In marketing, emphasis is given on the wants of the consumer.
Whereas in selling, emphasis is on the company’s products.
 In marketing company first determines customers’ needs and wants
and then decides how to deliver a product to satisfy these wants. In
selling, company do not focus on needs.
 In marketing the emphasis is on innovation in existing technology
and providing better value to the customer by adopting a superior
technology. Selling emphasizes on staying with existing technology
and reducing costs. 32
 Marketing views the customer as the first link of the
business. Selling views customer as a last link in business.
 Planning in marketing is long-term-oriented in today’s
products and in terms of new products, tomorrow’s markets
and future growth. Planning in selling is short-term-oriented
in terms of today’s products and markets.
 Marketing follows customer oriented approach and selling
uses production oriented approach.
 Marketing makes use of long-term strategies to get sales –
examples, value-added service, customer education, meeting
objectives. Selling makes use of short-term tactics to get
sales – examples are free gifts, discounts, rebates, bribes, etc.

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THANK YOU
Strategic Planning

 Strategic Planning is the managerial process of
creating and maintaining a fit between the
organization’s objectives and resources and the
evolving market opportunities.

 Also called Strategic Management Process



 All organizations have this



 Can be Formal or Informal



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The Strategic-Planning, Implementation,
and Control Process

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 Business Strategic-Planning Process
External environment
(Opportunity &
Threat analysis)

Business Mission Goal Formulation

Internal Environment

(Strength/ Weakness analysis)

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Strategy Formulation
Environmental Analysis

Competitor Internal Analysis

Customer
Supplier Technology Know-How
Regulatory Manufacturing Know-How
Social/ Political Marketing Know-How
Distribution Know-How
Logistics
Opportunities & Threats
Strength & Weaknesses

Identity Core Competencies

Identify opportunity

Fit internal Competencies with external opportunities

Firm Strategies 38
Factors
Influencing
Company’s
Marketing
Strategy

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 External
External Marketing
Marketing Environment
Environment
Ever-Changing
External Environment Marketplace
is not controllable
Social
Social
Change
Change
Demographics
Demographics

Product Economic
Economic
Product Physical / Natural
Distribution Conditions
Conditions
Distribution
Promotion
Promotion
Price
Price
Competition
Competition Target Market
Political
Political&&
Legal
LegalFactors
Factors
Technology
Technology
Environmental
Scanning

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The macro-environment

is the assessment of the external forces that act upon the

firm and its customers, that create threats & opportunities

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Thank You

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