session 1 - introduction to marketing

Introduction to Marketing

Sriram D

1

Your thoughts

�What do you mean by Marketing?

�What comes to your mind?

�Narrate your experience as a customer (Good / Bad)

Sriram D 2

Definition of Marketing

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 - Approved July 2013]

�Who does & What is done – Set of institutions |

Activity, processes

�Purpose of activity – Creating, communicating,

delivering and exchanging offerings

�Expectation – Value for customers & society

Sriram D 3

Overview of Marketing

�Exchange Process & Specialized Roles

�Exchange enabling actions – Marketing Mix

� Setting the Mix

• Market Selection

• Market Segmentation

• Product Differentiation

� Implementing the Mix – 4Ps

�Marketing Process

� Situation & Environmental Analysis

� Formulating Strategy

� Executing Strategy & Assessing Performance

Sriram D 4

Marketing as Exchange

�Meaning of “exchange”

� An act of giving one thing and receiving another in

return.

� synonyms: trade, swap, switch, barter, change,

interchange

�Marketing exchanges exhibit three classes of

meanings:

� Utilitarian Exchange

� Symbolic Exchange

� Mixed Exchange

Sriram D 5

Marketing as Exchange

�Utilitarian Exchange

� Goods given in return for money / other goods

� Foundations of ‘Economic Man’

• Rational behavior

• Utility maximization (satisfaction)

• Complete information on alternatives available

• Exchanges are free from external influences

�Symbolic Exchange

� Mutual transfer of psychological / social / intangible entities between two or more parties

� People buy things not only for what they can do, but also for what they mean

Sriram D 6

Marketing as Exchange

�Mixed Exchange

� Marketing exchanges are mixed exchanges

� Involves both utilitarian and symbolic aspects

� Difficult to separate the two

� ‘Marketing (Wo)Man’ – Assumptions

� Sometimes rational, sometimes irrational

� Motivated by tangible, intangible rewards

� Engages in utilitarian & symbolic exchanges

� Even if faced with incomplete information, makes at least rudimentary calculations of cost and benefits associated with social and economic exchanges

� Exchanges occur under constraints – legal, ethical, societal, normative, coercive etc.

Sriram D 7

Exchange Process

�Exchanges involve a seller / provider and one or more buyer(s)

�Exchange of Goods [or/and] Services

�Common set of exchange conditions:

� Buyers outnumber sellers

� Any individual buyer is weaker than the seller

� Total economic power of buyers can assure business for sellers [or put them out of business]

� Sellers compete to sway the largest number of buyers

� Sellers modify their behaviors to sway the largest number of buyers and to counter competition

Sriram D 8

Exchange enabling actions – Marketing Mix

�Who are the customers?

�What products do we make?

�What price to fix?

�What do we do the get the product to customers?

�What do we do to make the customers aware of

the product?

Sriram D 9

Setting the Mix

�Market Selection – Process of choosing ‘A’ market

from the many available to appeal with goods /

services

�Market Segmentation – Identify potential

customers most accessible to the marketer

�Product Differentiation – Designing a product to

appeal to the target customers – in sync with

market selection & segmentation

Sriram D 10

Implementing the Mix – 4Ps

Sriram D 11

Products / Services

Place

Promotion

Price

Products / Services

• Design, Features, Variety, Brand, Sizes, Services, Quality, Packaging, Warranties, Returns

Place

• Channels, Coverage, Assortments, Locations, Inventory, Transport

Promotion

• Advertising, Sales Promotion, Digital Mktg ., Public Relations, Events, Direct Marketing

Pricing

• Pricing strategy, List price, COGS, Discounts, Allowances, Credit period, Credit terms

Push vs Pull Marketing

Sriram D 12

Marketing Process

Sriram D 13

Situation Analysis (SWOT)

� Strength

� Weakness

� Opportunities

� Threat

EnvironmentalAnalysis

� P.E.S.T.E.L. Analysis

� Porter’s FiveForces Model

Marketing Process

Sriram D 14

�Strategy Formulation

� Fundamental aim is to appeal to the target audience

and differentiate the product / service from

competition