Defining Marketing for the

21st Century

Dr. D. ASHOK, VIT BS

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Copyright © 2003 Prentice-Hall, Inc.
 What is a market?
“A market consists of all the potential
customers sharing a particular need or
want who might be willing and able to
engage in exchange to satisfy that need
or want” (Philip Kotler).
“ A Market is a physical place, where the
buyer and seller meet together and
exchange their common interest.

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 Marketing is a process… that
is…
 Managerial
 Social
 Individual
 Wants, Desires
 Demands – Products and/or Services

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 What is Marketing
 Marketing is a Socio -Managerial
process, by which individual or
groups can obtain what they need
and want through Creating,
Exchanging and value with money
Philip Kotlar

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 AMA Definition (2007)
Marketing is the activity, set of
institutions, and processes for
creating, communicating,
delivering, and exchanging
offerings that have value for
customers, clients, partners, and
society at large.
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 What is marketing
Needs,Wants
and Demands

Market
Core Products
Marketing and Services
Concept

Exchange,Transaction Value,Satisfaction
and Relationship and Quality
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 Common marketing problems
 How can we identify and choose profitable
market segments?
 How can differentiate our offer from our
competition?
 How should we react to competitors?
 How can we satisfy our customers and build
brand loyalty?
 How can we measure the effectiveness of an
add campaign, of Public Relations, of a
promotion, etc…?
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Seven Functions of Marketing:
 Marketing-information management
 Product/service management
 Pricing : deciding on Fair pricing.
 Place (Distribution)
 Selling: market share
 Financing: Funding sources
 Promotion: reach ability

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 Five approaches to Marketing
 Production Approach- produce as much as possible
at lowest possible cost
 Product Approach- produce high quality product
and the world will beat a path to your door.
 Selling Approach – Aggressive selling techniques
needed for maintaining sales. (Company orientation)
 Marketing Approach- produce a product that fills a
consumer need, price it correctly, make readily
available and promote it properly and the marketing
success will follow (Consumer orientation)
 Societal Marketing Approach- extend the marketing
approach to consumer's and society’s well-being

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 Elements of a
Modern Marketing System

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 Elements of the Marketing Program

Target
Market

+ = Marketing
Strategy

Marketing
Mix
+ = Marketing
Plan
A Firm’s
Time-Related
Details
+ = Marketing
Program
Other
Marketing
Plans
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 As far as Customers are concerned
there are three elements to address
 Customer value: Difference between the values
that the customer gains from owning and using
a product versus the costs of obtaining the
product.
 Customer satisfaction: The extent to which a
product’s perceived performance in delivering
value matches a buyer’s expectations.
 Quality: the characteristics of a product or
service that bear on its ability to satisfy stated
or implied customer needs.
Costs Benefit
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s
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 Marketing Concept versus
Selling Concept
Starting Point Focus Means Ends

The Marketing Concept

Customer Integrated Profits from

Market
needs marketing satisfied customers

The Selling Concept

Sell and Profits through

Factory Product
Promote it sales volume

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 What can be marketed……
 Goods - Tangible  Places – Real estates
 Services -Intangible  Organizations- Image
 Experiences - Professional  Information- Data
 Events - Programme  Ideas - Consultancy
 Persons - Ambassadors

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 Marketing Utilities
From Production
Time
Time
Form
Form

Utility
Utility
Value
Value that
that comes
comes Place
Place
from
from satisfying
satisfying
human
human needs
needs

Task
Task
Possession
Possession

From Marketing
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The marketplace is ever dynamic …due to…

 Changing Technology  Heightened Competition

 Globalization  Industry Convergence
 Deregulation  Retail Transformation
 Privatization
 Customer
Empowerment
 Customization

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Core Marketing Concepts
Target
Target Markets
Markets &
& Segmentation
Segmentation
Needs, Wants and Demands

Offering and Brand

Value
Value and
and Satisfaction
Satisfaction
Marketing
Marketing Channels
Channels
Supply
Supply Chain
Chain
Competition
Competition
Marketing
Marketing Environment
Environment
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 The 4 Ps & 4Cs
Marketing Mix
Convenience
Customer
Solution Place
Communication Channels
Product
Cost Coverage
Assortments
Product Variety Promotion Locations
Quality Sales Promotion Inventory
Design Advertising Transportation
Features Sales Force
Price
Brand Name Public Relations
List Price
Packaging Direct Marketing
Discounts
Sizes
Allowances
Services
Payment Period
Warranties
Credit Terms
Returns
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 Strategy Decision Areas
Organized by the Four Ps
Product Place Promotion Price
Physical Goods Objectives Objectives Objectives
Service Channel Type Blend Flexibility
Features Market Exposure Salespeople Level over PLC
Quality Level Kinds of Kind Geographic
Accessories Middleman Number Terms
Installation Kinds and Selection Discounts
Instructions Locations of Training Allowances
Warranty Stores Motivation
Product Lines How to Handle Advertising
Packaging Transporting Targets
Branding and Storing Kinds of Ads
Service Levels Media Type
Recruiting Copy Thrust
Middlemen Who Prepares?
Managing Sales Promotion
Channels Publicity
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 Holistic Marketing
Senior
Marketing Management Other 4 Ps
Department Departments

Internal Integrated
Marketing Marketing

Holistic
Marketing

Socially Relationship
Responsible Marketing
Marketing
Ethics Customers
Environment Community Channel Partners
Legal
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 Marketing Analysis frame work

Company Analysis
Marketing Myopia
Competitor Customer Analysis
Analysis Marketing Orientation
Marketing
Orientation

Marketing Strategy

Product
Price
when a company views
Promotion
marketing strictly from the Place
standpoint of selling a
specific product rather than
from the standpoint of Market
fulfilling customer needs. 1-22
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 Competitor Analysis

1.tps://www.aha.io/roadmapping/guid
e/templates/competitor-analysis

Who are the other companies offers for customers in your market?
What products and services do they offer?
What is each competitor’s market share?
What are their strengths and weaknesses?
How do your own products and services compare?
How can you differentiate your products and services?

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 Company Analysis –
Marketing Myopia
The “new marketing myopia” comes into picture
when companies fail to see the broader social context of business
decision making and thereby, causing disastrous results for their
organization and society. It grows from three interconnected
phenomena: A single-minded focus on the customer

Examples of Marketing Myopia. Kodak lost much of its share to

Sony cameras when digital cameras boomed and Kodak didn't
plan for it. Nokia losing its marketing share to android and IOS.
Hollywood didn't even tap the television market as it was
focused just on movies.
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 Customer Analysis
A customer analysis (or customer profile) is a critical section
of a company's business plan or marketing plan. It identifies
target customers, ascertains the needs of these customers, and
then specifies how the product satisfies these needs.

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 Marketing Strategy
Marketing strategy is the comprehensive plan formulated
particularly for achieving the marketing objectives of the
organization. It provides a blueprint for attaining
these marketing objectives. It is the building block of
a marketing plan. It is designed after detailed marketing research.

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