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RAVIKEERTHI J.V. Associate Professor BE(Elect) RV College, Bangalore MBA :Canterbury Christ Church University

England DIM & DHRM: IGNOUMPhil: Vinaya Mission University Age 48 Years

What is Marketing?

Who’s responsibility is it?

Marketing is Everything

Noted marketing expert Regis McKenna expressed in his influential Harvard Business Review article "Marketing is Everything.” He writes, it must be part of everyone's job description, from the receptionists to the Board of Directors."

Marketing management is a business discipline focused on the practical application of marketing techniques and the management of a firm's marketing resources and activities.

Management guru Peter Drucker, write’s: "Because the purpose of business is to

create a customer, the business enterprise has two--and only these two--basic

functions: marketing and innovation. Marketing and innovation produce results;

all the rest are costs. Marketing is the distinguishing, unique function of the

business."

Different definitions of marketing“The all-embracing function that links the business with customer needs and wants in order to get the right

product to the right place at the right time”

“The achievement of corporate goals through meeting and exceeding customer needs better than the competition”

“The management process that identifies, anticipates and supplies customer requirements efficiently and profitably”

“Marketing may be defined as a set of human activities directed at facilitating and consummating exchanges”

Which definition is right?

They all are!!

In short,

Marketing is about meeting the needs and wants of customers Profitablly

Maslow's hierarchy of needs

Represented as a pyramid

What is marketedMarketers are involved in marketing 10 types of

entities. 1. Goods 2. Services 3. Events 4. Experiences 5. Persons 6. Places 7. Properties (real estate, financial) 8. Organisations 9. Information 10. Ideas

1. Goods : Physical goods like cars, trucks, televisions,machine tools, chemicals, cosmetics, refrigerators constitute a bulk of manufacturing and marketing activity in any economy. These are also marketed through internet channels these days.

2. Services: As economies advance, services marketing increases. Services include airlines, hotels, lawyers, consultants, rental firms, barbers, accountants, engineers, doctors, architects.

3. Events : Marketers promote time based events such as trade shows, artistic performances, sporting events. Olympic, World Cup are some of the events that are marketed.

4. Experiences: An amusement park, theme restaurant, water park, tourist tours are examples of items that are marketed

5. Persons: Celebrity marketing is a big business today. Managing advertisement contracts, managing PR for

celebrities, are examples.

6. Places: Cities, nations, regions are marketed. Government representatives make detailed presentations for investment purposes in that country.

7. Properties : Properties and real estate are marketed today.

Both residential and commercial space is marketed.

8. Organisations: Work to build a strong and favourable brand image in the public mind. Spend money on Corporate image building. TISCO, INFOSYS, COGNIZANT, ACCENTURE are some of the examples of organizational marketing.

9. Information: Information can be marketed . Universities, schools and colleges market information. Books andencyclopaedias are information marketing too. X Ray machines, MRI scanners are also a form of information marketing.

10. Ideas: Social messages, Health messages are ideas marketing. AIDS awareness, family planning and spacing, anti smoking campaigns are all examples of ideas marketing.

The core of any marketing effort is Exchange /transactions/ transferAny exchange or transfer is characterized by the

followingaspects:• There must be two parties• Each should offer value to the other• Communication and exchange of goods/ receivables• Desirability / appropriateness of dealing with the

other• Freedom to reject/ accept the offer

Key customer markets :There are four types of markets :1. Consumer2. Business3. Global4. Non profit / governmentalConsumer markets : These are markets that sell massconsumer goods and services such as soft drinks,

cosmetics, airtravel equipment etc. Much of the marketing effort goes

inbrand building, product packaging, availability andcommunications.

Business markets : Business buyers buy in order to resell it toothers. Advertising helps, but what helps more is sales forceattention, price discounts, company’s reputation.Global markets : Marketing is done globally, between

countries.Exporters, importers, licensers, joint ventures, contractmanufacturer are some of the ways one can enter a marketglobally. Marketers need to understand prices, cultures, societalissues pertaining to each country in question.Non Profit / Governmental markets : Companies sell goods

tocharitable organizations, churches, trusts, universities,government employees stores. Lower prices is the only way toattract this business.

Company’s orientation towards the marketplace :

The various concepts used by organizations can be classified as follows :

• Production concept• Product concept• Selling concept• Marketing concept• Holistic marketing concept

Production concept• Holds the view that mass distributed inexpensive

productsare required to expand the markete.g. Chinese products, take advantage of inexpensivelabour and low costs to dominate the marketProduct concept• Holds the view that products of good features and

qualitywill attract the market itself• It might , but not on a long standing basis• Unless the distribution, pricing, advertisements are

correctthe concept will not work

Selling concept• Holds the view that products should be aggressively sold

/promoted• Hard sell is the method• Used extensively by unsought goods– e.g. insurance, encyclopaedia• Will get people to buy, but cannot maintain a relationship• Assumes that consumers will buy a product andeventually like it and will not complain even if there is aproblem• Sell more, to make more money and more profit

Holistic marketing conceptThis concept is based on the development, design andimplementation of marketing programmes , processes andactivities that recognises their breadth and interdependencies.This concept assumes that everything matters in marketing.Four components of holistic marketing are :– Relationship– Integration– Internal– SocialFig .3 (ref . appendix 1) shows a relationship between theother functions and marketing and describes how to look atmarketing with a holistic perspective, that integrates with otherfunctions, members (both inside and outside).Let us understand each of the four component in detail and theimpact it has on marketing as a function.

Relationship MarketingRelationship marketing is the process of building a

mutuallyhealthy and beneficial relationship between the marketer

andthe prospect.Four key constituents for marketing are : customers,employees, marketing partners ( channel partners,

suppliers,distributors, dealers) and members of the financialcommunity(shareholders, investors, analysts).The outcome of this relationship is building of a strongmarketing network. The operating principle of this network

isthat,“build the network and profits will follow”