WHAT IS MARKETING

The way in which an organization matches the use of its

physical human, financial and other resources with the wants
Marketing
of its customers
The business activities direct the flow of goods and services
Management
from the producer to the consumer.
It can also be defined as marketing deals with the creation
and delivery of goods and services to customers who want
them and involves.
 Finding out customer’s wants
 Creating reasonable price
 Informing the availability
Distributing them in a convenient way for them
What all can be marketed

Goods: Manufactured Goods are the main constituent of marketing ventures in all the countries across the world. Market
goods like consumer durables, electronic products, machinery, Computers and their software and hardware, etc., 

Services: The services of many organizations, namely banking, insurance, finance, hospitality, tourism, professional
consultations, etc., 

Experiences: The unique and varied experiences about a place or a park. For eg. Amusement Park, Theme Park,
Mountaineering, etc., 

Events: Event marketing aims at promoting and marketing special events, shows, exhibitions, fairs, performances, and
sports events like the World Cup, Olympics, T20 matches, etc., 

Persons: The marketing of goods and services through celebrities is a successful formula for creating a brand relationship
with consumers. The endorsement for the brand of a company can be carried down by Cinema Stars, Sports Stars,
Musicians, and eminent personalities. 

Places: Tourist business prospects, new residents, and land are appealed to visit and geography by promoting special
characteristics of places like infrastructural facilities, amusement, climatic conditions, entertainment, culture, etc., 

Properties: Both real property and financial property which involve the transfer of ownership on sale or purchase of the
same. E.g., Constructed house, Land, Plot, Building, Shares, Debentures, Mutual funds, etc., 

Organizations: An organization can market itself to build an image for it by sponsoring events, adopting villages, donations
.for charitable causes, corporate social responsibility activities, etc.,

Information: Information is the most valuable product that can be marketed today. E.g., Information collected by
libraries, research agencies, educational institutions, book publishers, broadcasting companies, the internet, etc. 

Ideas: Innovative and attractive ideas are desirable products for marketers to sell. Social media marketing consistently
thrives on new ideas.
Core Concept of Marketing
Need Want Demand: These three vital terms
play an important role in marketing management.
Helps in:
 Strategic marketing
 To identify the target customer & target market
 Better positioning in the market
 To promote the products with suitable
advertisements
 To maximize sales and profits and sales forecasting
 To know customer’s willingness to buy the products
 Understand Customer and consumer behavior

Need: Needs are the basic requirements that human

beings require for existence.

The needs can be further classified into 5 types:

Stated Needs: The customer clearly tells his needs to

the company. 
For example, a customer wants an inexpensive car.

Real Needs: E.g. The customer wants a car with low

operating cost, not a low initial price. The seller must
understand

Unstated Needs: Benefits consumers expect naturally

with the products/services offered. E.g., Chargers with
Mobile phones.
Delight Needs: If the dealer provides the
customer with a free movable fridge trolley and free
fridge cover on the purchase of the fridge then the
customer will be delighted.

Secret Needs: The customer wants his friends to

see him as a savvy customer and gain social status for
himself after buying the car.

Want: Wants are directed by our surroundings

towards reaching certain needs. Therefore, human
wants can be varied depending on each individual’s
perception, environment, culture, and society.
Wants may be created by marketers.

E.g., To have food is a basic need of human beings but

to have biscuits for food is a want created by
marketers.

Demand: Want a specific product backed by the

ability to buy it?
Consumer: A consumer is anyone who uses a product or service, whether for personal or business use, but they don’t
always pay for it.

Customer: A customer is an organization or individual who purchases a product or service with the motivation to resell,
gift, or use it. A customer always makes a payment.

Market: A market is a collection of buyers and sellers. a market is the set of all actual and potential buyers of a market
offer. The market could also be a domestic market or a global market.

Value
Customer-perceived value i.e. the worth a customer sees in the product. A trade-off between benefit and cost. Increases
with

quality decrease with the price.

Value = Benefit/Cost

Evolution of marketing
Production Concept: Mass producing. High production, products that are widely available and inexpensive. When a company
wants to expand the market

Product Concept: Based on customer’s need and then offering the most quality, performance, or innovative feeling.

Selling Concept: Consumers and businesses if left alone, won’t buy products from the organization. Therefore, aggressive
selling

Marketing Concept: Understanding and meeting customer’s needs

Societal Marketing Concept: Putting some effort into the benefit of social work. E.g., CSR
V = volatility, associated with the nature and dynamics of the changes, as well as the speed with which they occur.
Knowledge about it is available
U = uncertainty, related to the lack of predictability, the increase of unforeseen situations and not knowing with certainty
how the factors that influence the activity will be developed.
C = complexity of the problems, confusion of the solutions, and confusion that characterizes the environment in which the
organizations operate.
A = ambiguity/confusion associated with the lack of clarity that gives rise to diverse interpretations.

Volatility Vision
 Local Auto drivers taking potential customers at the same  Getting local drivers in OLA by providing incentives on a
rate minimum number of travels
 The difference in cost rate as per time  OLA money – Can travel without carrying cash
 Public transport Improving  Drivers using personal Car used to get a commission from OLA
Uncertainty Understanding
Uber and other competitors New segments – OLA Bike
Oil Prices Electric Scooter
Complexity Clarity
To target the elder age segment Simple User-Friendly experience
Ambiguity Agility
Confusion in prices between different competitors Prices for different segments of cars are shown in the interface
before booking unlike other competitors
VUCA for VUCA in OLA
SWOT – NIKE Based on Case Study
STP – Segmenting Targeting Positioning

Segment Marketing: Targeting a group of customers who share a similar set of needs and wants. Market into
several distinct sub-markets of consumers

Identifying the base for segmenting the market

Geographic: Nations, states, regions, or cities (Mc Donald’s, movies in different languages)
Demographic: Age (younger to elder different products), gender, religion family size, life cycle (newly
married or bachelor, etc.), income, language, social class
Psychographic: lifestyle, personality, values.
Behavioural: Occasions, benefits, user status, usage rate, buyer readiness, loyalty status, attitude

Steps in the segmentation process

 Need-Based Segmentation- group consumers based
on similar needs and benefits sought
 Segment Identification- Bases of segmenting
 Segment Attractiveness- market size, growth, and
access
 Segment Profitability-determine
 Segment Positioning-create a value positioning
 Segment Acid Test- segment story
 Marketing Mix Strategy- include all marketing mix
elements
Targeting
After identifying segmentation few segments are selected to reach target customers. This process of evaluating and
selecting market segments is known as market targeting.
 Evaluate market segmentation and select those segments that suit the business.
 Select appropriate market targeting strategies.
Targeting Strategies

Undifferentiated Market Targeting

 This strategy considers buyers as a homogeneous group. Undifferentiated marketing is also known as mass marketing.
 In this strategy, companies do not produce different products for different market segments.
 This type of marketing strategy relies on mass distribution and mass advertising.
 Example: Henry Ford adopted an undifferentiated marketing strategy for T Ford Model. This model was available in
only black color in the 1930s. Another example of an undifferentiated strategy is Hershey’s company, a few years back
they have only one chocolate candy bar for all.

Differentiated Market Targeting

 In a Differentiated market targeting strategy, a company opts to target multiple market segments and design a
different and effective marketing mix for each market segment. A Differentiated market targeting approach is
likely to create more sales than undifferentiated marketing. But due to a distinct marketing mix, the promotion cost
also increases.
 The increasing sales must be weighed with increasing costs.
 Example: The segmentation of Unilever generates more sales by achieving higher market share through various
detergent brands which they could not do with just one brand.
Example: In India McDonald’s creates a unique menu for local consumers i.e., the McCurry Pan which is a vegetarian
dish. The Indian version of the Big Mac is called the Maharaja Mac “the Social Burger” made with grilled chicken,
tomatoes, and onions.
Concentrated Market Targeting
In a concentrated/niche market targeting strategy, resources are focused and target specific market
segments. Concentrated marketing strategies are effective for those small companies having limited resources. 

Example: Pizza Hut successfully developed a database of 9 million pizza lovers. By using this database,
Pizza Hut developed target market campaigns to reach its consumers.

Micromarketing Market Targeting
Small business owners can use a micro-marketing strategy to target customers at a personal level. Micromarketing
includes local marketing and individual marketing.
Examples: hotel industry, clothing, furniture, and bicycle industry.

Positioning
It is a marketing strategy that focuses on creating a unique image or perception of a brand, product, or service in the
customer’s mind. The four Ps of marketing (promotion, product, price, and place) are important factors in market
positioning. 
Types of market positioning
 Quality of product or service
 Innovation and Uniqueness
 Price of a product or service
 Product Differentiation
 Customer Service
 Niche Segregation
Example: Nike, Tesla, Starbucks, etc follow Market Positioning
Marketing Mix

4P’s
The term marketing mix refers to a set of tools, actions, or strategies a company uses to promote and sell its products or
services. Focusing on a marketing mix helps organizations make strategic decisions when launching new products or revising
existing products.

 Product: Anything that can be offered to a market to satisfy a want or need. It includes physical goods, services,
experiences, events, persons, places, properties, organizations, information, and ideas

Five Product Level: Customer Value Hierarchy

(1) Core Product / Core Benefit: The fundamental service or benefit. E.g., Rest & Sleep in Hotels

(2) Basic Product: At the same level, the marketer must turn the core benefit into a basic product. E.g., -bed,
towels, desks, bathroom

(3) Expected Product: A set of attributes and conditions buyers normally expect when they purchase this product.
Clean bed, clean bathroom, and fresh towels.

(4) Augmented Product: The marketer prepares an augmented product that exceeds customer expectations. Wi-Fi,
Breakfast, pick-up drop

(5) Potential Product: Encompasses all the possible augmentations and transformations the product might undergo in
the future. Robots serving customers.

 Price: This refers to how much the product or service sells for. Marketers must consider the product’s value, as well
as the general market situation as they price a product or service.
 Place: Where will this product be sold to reach its target audience?

 Promotion: How will marketers get the word out about their product or service? Which marketing channels will they
use