Ch2 fundamentals of_marketing

Chapter 2 / Slide 1

CHAPTER TWO

Fundamentals Of Marketing

Chapter 2 / Slide 2

Marketing – An Introduction

An Ancient Art, an Omnipresent Entity, a Vital Function of Business Business = Marketing

Business has just two basic functions: marketing and innovation’. – Peter Drucker

Entrepreneurial part of business ‘Marketing is the logic of business’. - Peter Drucker

Strategic part of business Represents the real strategic activity in a business and the

real strategic function of management. Intricate for practice

‘Marketing is fast-paced and dynamic; it is highly visible; it is

essential to the survival of organisations; it is rewarding to its successful practitioners’. - Stanton et al.

Chapter 2 / Slide 3

What is Marketing?

None of these definitions bring out the full meaning of marketing.

Art/Science/System/Business Function etc.

Understand Marketing through select definitions

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Understand Marketing by Checking ‘What does it do’

Meeting Human/Customer Needs

Marketing must know Who are our customers? What are their needs? What must we do to meet their needs?

Meeting latent and future needs Marketing searches/spots/visualises the latent and future

needs of customers.

Meeting needs at a profit Marketing meets customer needs at a profit.

Chapter 2 / Slide 5

Understand Marketing by Checking ‘What does it do’

Being Empathetic to Customers

Generating customer satisfaction Product/Service Ambience associated with product/service Peripheral things Speed of response

Measuring customer satisfaction Satisfaction generated may fall short of or match or exceed

the expectations of customers.

Is it then correct to assume Marketing = Customers?

Chapter 2: Fundamentals of Marketing

Chapter 2 / Slide 6

Understand Marketing by Checking ‘What does it do’ What Else is Embedded in Marketing?

Demand Generating the demand Meeting the demand

Competition Understand objectives and strategies of competitors. Anticipate actions and reaction patterns of competitors.

What is marketed? Customers buy benefits/services/solutions, not products. Customers seek Value in benefits/services/solutions.

(Example: Channa/Channa-Batura/TCS Certainty)


Chapter 2 / Slide 7

Understand Marketing by Checking ‘What does it do’ What is Meant by ‘Market’?

People/consumers with purchasing power Demand

Marketing as a Process Is a process of exchange Means offering something and getting something in return Involves a buyer and a seller. The transaction takes place as per agreed upon conditions The transaction succeeds when both parties are satisfied.

Marketing, a Dynamic and Complex Idea Increased levels of competition More sophisticated consumer.

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Perspectives on Marketing Already in Vogue Exchange Concept

Holds that Quality and Features of the Product is the main thing. Covers the physical aspect and the price mechanism.

The Production Concept Maximise output, achieve a lower unit cost; and sell at a lower price.

The Product Concept Quality and features of the product. Marketing Myopia

‘A coloured or crooked perception of marketing and a shortsighted view of business’. - Theodore Levitt.

The right thing is to Focus on the basic human needs the product satisfies. The Sales Concept

Aggressively promote and push products. The Marketing Concept

Customer is central to business.

Chapter 2 / Slide 9

Difference Between Selling and Marketing

Selling revolves around the needs and interests of the seller. The purpose of selling is to sell

what is made rather than make what the customer wants.

Views business as a task of somehow disposing off existing products.

Marketing revolves around the needs and interests of the buyer Marketing starts with the

customers. Views business as a task of

meeting the needs of the customers.


Chapter 2 / Slide 10

Difference Between Selling and MarketingChapter 2: Fundamentals of Marketing

Is not ‘selling’ a part of ‘marketing’? Does not marketing seek profit just as selling does?


How does the ‘ Marketing Concept’ Conceive Marketing? Key Attributes of ‘ Marketing Concept’

Unflinching consumer orientation Overwhelming emphasis on the consumer and his needs The customer, not the corporation, has to be the centre of the business

universe. Integrated management action with marketing as the fulcrum

All the limbs of the business are tightly integrated with each other, keeping marketing as the pivot.

Emphasis on generating consumer satisfaction It is essential that consumer orientation leads to/translates into

consumer satisfaction. Emphasis on profit

Creation of profits or surpluses as an essential requirement. Attaining all the goals of the corporation through customer satisfaction

All goals must be realised through consumer orientation and generation of consumer satisfaction.



Difference in Orientation – the Separating Factor Between One Concept and the Other

Contrast the Sales concept and the Marketing concept. A difference in orientation towards the market/conduct of business is the real differentiating factor between the two concepts.

Why the Existing Perspectives are Not Sufficient for Interpreting Marketing

Do Not provide the Needed Practical Direction Do Not explicitly project Value ‘Customer Orientation’ and ‘Value Delivery’ are Not the same



Need for the ‘Value Perspective’

A need for a new perspective revolving around value and providing practical direction.

Delivering value to the customer is marketing’s basic job.

Exchange, Production, Product, Place, Price, Promotion and everything else are incidental.

Emphasize the application aspect of marketing that corresponds to a new orientation resting on value.


Ch2 fundamentals of_marketing

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