Marketing Fundamentals

Dr. M C Rashid Khan

January 5, 2025 Marketing Fundamentals 1

 What is Marketing
 Marketing is about identifying and meeting human and social needs in a way that
harmonizes with the goals of the organization.
 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.
 Source: American Marketing Association

 The process of delivering the right products or services at the right

place, right time, and right price.

January 5, 2025 Marketing Fundamentals 2

 The Marketing Process

a) Understand the marketplace and customer needs and wants

b) Design a customer value-driven marketing strategy
c) Construct an integrated marketing program that delivers
superior value
d) Engage customer,build profitable relationships and create
customer delight
e) Capture value from customers to create profit and customer
equity

January 5, 2025 Marketing Fundamentals 3

 Core Marketing Concepts

• Needs, Wants and Demands

• Markets
• Market Offerings
• Customer Value and Satisfaction
• Exchanges
 Need
• Need : felt sense of deprivation of some basic necessities
• Needs are the basic human requirements. It is necessary for survival.
• They include basic physical needs for food, clothing , warmth and safety
• Social needs for belonging and affection
• Individual needs for knowledge and self expression
• These needs were not created by marketers. They are the basic part of
human make up.
• “Needs Pre-exists” (can’t be created).

January 5, 2025 Marketing Fundamentals 5

 Wants
• Wants that are desire for specific products that are not
necessary for survival.
• An Indians need foods but wants a bowl of rice and fish curry,
biryani, masala dosa, shahi paneer, nan roti
• An American needs food but wants a Big Mac, fries, and a soft
drink.
• Wants are shaped by one’s society, culture and individual
personality.

January 5, 2025 Marketing Fundamentals 6

 Demand
• Demands are wants for a particular product backed by an ability to pay.
• Example: Many people want a Rolls Royce but are they able to buy the
one.
• Wants become demand when backed by buying power.
• Only a few are willing to buy because able to buy one.
• i.e. I have money to buy a BMW, a Mont Blanc pen, Channel cosmetics

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 What is Marketed? Market Offerings

• Goods • Places
• Services • Properties
• Events • Organizations
• Experiences • Information
• Persons • Ideas

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 Value and Satisfaction

• Value is the difference between the benefits that the customer gains from owning
or using a product and the costs of obtaining the product.
 Example: Shampoo sachet. Cross Word also provide book reading ambience, Pizza
Hut Deliver Pizza on time, Ritz Carlton gives free breakfast to overnight travelers,
FedEx fast delivery

• Satisfaction : it reflects a persons’ judgment of a products perceived performance

(outcome ) in relationship to expectation.

 Example: You do repeat purchase when you are satisfied, Samsung handset, Honda
bike, dove soap, Sagar Ratna etc.

January 5, 2025 Marketing Fundamentals 9

 Marketing Philosophy

• Production Concept:
• Focus on producing great volumes at low cost, sell at low cost
• Focuses on internal capabilities of a firm rather than the desire and needs of market
place.
• Example : Lenovo dominates the highly competitive, price sensitive Chinese market
through low labour costs, high production efficiency and mass distribution
• Useful in some situations but it can lead to marketing myopia
• Company loose sight of real objectives- satisfying customer needs and building
customer relationships.

January 5, 2025 Marketing Fundamentals 10

 Marketing Philosophy

• Product Concepts:
• Product excellence is supreme thing.
• Obsessed with quality and features of product more the consumers and their
needs.
• It holds the consumer will favor products that offer the most in quality,
performance and innovative features.
• Focus on making continuous product improvements.
• It can also lead to marketing myopia.
• Product should be properly priced, be customer oriented and properly marketed.

January 5, 2025 Marketing Fundamentals 11

 Marketing Philosophy

• Selling Concept:
• It holds that consumers will not buy enough of the firm’s product unless it
undertakes a large scale selling and promotion efforts.
• This concept is typically practiced with unsought goods which buyers do not
normally think of buying, like insurance, umbrella, encyclopedias, fire extinguisher,
reference book etc.
• Most firms also practice the selling concept when they have overcapacity.
• It focuses on creating sales transactions rather than building long term profitable
customer relationships.
• The aim is often to sell what company make rather than making what the market
wants.

January 5, 2025 Marketing Fundamentals 12

 Marketing Philosophy

• Marketing Concepts:
• This concepts holds that achieving organizational goals depends on knowing the
needs and wants of target markets and delivering the desired satisfactions better
than competitors do.
• Under this concept customer focus and value are paths to sales and profits.
• It is a customer centered sense and respond philosophy.
• The job is to find the right products for your customers.

January 5, 2025 Marketing Fundamentals 13

 HOLISTIC MARKETING
• Relationship Marketing
• Integrated marketing
• Internal marketing
• Performance marketing

January 5, 2025 Marketing Fundamentals 14

Sales Versus Marketing

M C Rashid Khan ..... Orientation Program 15

 Social Marketing

 Social Marketing concept holds that the organization should deliver the desired
satisfaction in a way that improves consumers’ and society’s well being.

 Examples:
 “ Say no to drugs” or “ Exercise more and eat better for good health”.
 Family planning campaign in India
 Stop smoking /Alcohol, Pulse Polio campaign, Awareness about breast cancer, Aids
and hepatitis, Preservation of environment.
 Sunfeast promotion for girl child , CRY efforts for poor children.

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 Marketing Myopia

• It is a narrow short term thinking and a short sighted view of business.

• It is caused by an excessive emphasis by the firm on the product.
• Firm forget the existence of customers.
• Marketing shortsightedness – management’s failure to recognize the scope of its
business.
 Example: Small car Vs Big car, Pager Vs Mobile, Radio Vs TV
 Example: India Railways: “We are in the railways business.” or “We are in the
transportation business.”
 Example: BSNL: “We are a telephone company.” or “We are a communications
company.”

January 5, 2025 Marketing Fundamentals 17

 What Is a Marketing Plan?

Plan: a detailed proposal for doing or achieving something. An

intention or decision about what one is going to do.
Planning – the process of anticipating future events and
determining strategies to achieve organizational objectives in the
future.
Marketing Planning – designing activities relating to marketing
objectives and the changing marketing environment.
Marketing Plan – a written document that acts as a guidebook of
marketing activities for the marketing manager.
 Importance of Marketing Planning

 How do companies go about strategic marketing planning?

 How do employees know to implement the long-term goals
of the firm?
 The answer is a marketing plan.
• It helps in
• Achieving objectives
• Avoiding future uncertainties
• Coordination and communication among departments
• Effective utilization and application of marketing intelligence
• Monitoring and Controlling marketing activities
• Customer getting complete satisfaction
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Elements of a Marketing Plan and

Marketing planning Process

 Defining the Business Vision and Mission

 Business Vision
 Vision guides a business and its intentions for the future. A vision is
where a company expect to be in future.
 “Our vision is to create a better every-day life for many people.” IKEA
• A mission statement is a short statement of why an organization exists, what
its overall goal is, what kind of product or service it provides, its primary
customers or market, and its geographical region of operation.
• “To help people find better ways to do great works”- Xerox

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 Conducting a Situation Analysis

Strengths
Strengths--things
thingsthe
thecompany
companydoes
doeswell.
well. Eg,
Eg,
production
productioncost,
cost,marketing
marketingskills,
skills,financial
financialresources,
resources,
SS company
companyor orbrand
brandimage,
image, employee
employeecapability
capabilityand
and
available
availabletechnology
technology. .
Internal
Weaknesses
Weaknesses--things
thingsthe
thecompany
company
W
W does
doesnot
notdo
dowell.
well.

Opportunities
Opportunities--conditions
conditionsininthe
theexternal
external
OO environment
environmentthat
thatfavor
favorstrengths.
strengths.
External
Threats
Threats--conditions
conditionsininthe
theexternal
external
TT environment
environmentthatthatdo
donot
notrelate
relateto
toexisting
existing
strengths
strengthsororfavor
favorareas
areasofofcurrent
current
weakness.
weakness.
 Components of a SWOT Analysis
Examining internal strengths and weaknesses.
Focus on organizational resources:
• Production costs
• Marketing skills
• Financial resources
• Company or brand image
• Employee capabilities
• Technology
 Environmental Scanning
Helps identify opportunities and threats.
Designing a marketing strategy is based on six major
environmental forces:
• Social
• Demographic
• Economic

© AP IMAGES/PRNEWSFOTO/PEPSICO
• Technological
• Political/Legal
LO3 • Competitive
 Identifying and Evaluating opportunities
 Identify growth potential
 Evaluate opportunities for increasing sales and profit
 Determine which segments to target and positioning accordingly
• Example: Coke has Diet Coke, Cheery Coke, Minute Maid, Kinley,
Georgia Coffee etc.

January 5, 2025 Marketing Fundamentals 25

 Selecting a Strategic Alternative
High Low
High

Business growth Rate

Low

Relative Position ( Market Share)

 Setting Marketing Plan Objective
• Before the details of a marketing plan can be developed, objectives for
the plan must be stated.
• Without objectives, there is no basis for measuring the success of
marketing plan activities. A marketing objective is a statement of what
is to be accomplished through marketing activities

January 5, 2025 Marketing Fundamentals 27

 Describing the Target Market

• Marketing strategy involves the activities of selecting and describing one or more
target markets and developing and maintaining a marketing mix that will produce
mutually satisfying exchanges with target markets.
 Marketing Mix: The “Four Ps”

• Product : tangible goods, ideas and service etc

 Example: Tanishq’s jewellery design were considered too western during initial
year . Later added Indian ethnicity to be popular.
• Price is what a buyer must give up to obtain a product.
• Promotion: includes personal selling, advertising, sales promotion, and public
relations.
• Example: Celebrity dramatically impact on consumer behavior
• Place: Ensure product availability where and when customers want them
• Example: you will buy Kiwi fruit at your local super market or you will fly to
Australia to pick up your own?

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 Implementation, Evaluation, and Control
• Implementation consists of the processes involved in readying the
company’s offering for sale. Implementation includes developing the
offering and deploying the offering in the target market.
• Evaluation entails gauging the extent to which marketing objectives
have been achieved during the specified time period.
• Control measures the success of the company’s activities over time by
monitoring the company’s performance and the changes in the market
environment in which the company operates.

January 5, 2025 Marketing Fundamentals 30

 Following Up on the Marketing Plan
• One of the keys to success overlooked by many businesses is to actively
follow up on the marketing plan.
• The time spent researching, developing, and writing a useful and
accurate marketing plan goes to waste if the plan is not used by the
organization.
• One of the best ways to get the most out of a marketing plan is to
correctly implement it. Once the first steps to implementation are
taken, evaluation and control will help guide the organization to success
as laid out by the marketing plan

January 5, 2025 Marketing Fundamentals 31

 Give Your Feedback at : mcrashidkhan@[Link]

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