Introduction to Market
Introduction to Marketing
Dr. Shazia Khan, Associate Professor, PGDM (Retail Management), Weschool, Mumbai
Topics to be Covered
Evolution of Marketing
Marketing Concepts
Introduction to Marketing basics:
Need
Want
Desire
Demand & their relevance
Sub-topics
What is marketed and who markets
Reactive/Proactive Marketing
Needs, Wants, and Demands
Demand States
Marketplace, market space, and meta-markets
Production/Product/Selling & Marketing Concept
Holistic Marketing
The Market
Definition: All people sharing similar needs and wants with the ability to purchase a product.
Marketers should target individuals who:
Have an interest or need for the product
Have the financial capacity to pay for the product
Standardization of Marketing
Marketing cannot be standardized due to:
Cross-cultural differences in styles, habits, and tastes
Marketers understand that products cannot appeal to everyone.
Key factors affecting marketing:
4Ps (Product, Price, Place, Promotion)
Marketing Environment
Buyer Characteristics
Buyer Decision Process
What is Marketed?
Types of offerings:
Physical products
People
Places
Properties
Services
Events
Experiences
Organizations
Ideas
Information
Roots of Marketing
Exchange and Transaction:
Marketing involves activities that generate and facilitate exchanges to satisfy human needs or wants.
Understanding Needs
Definition: An imbalance between a consumer’s actual and desired states.
Types of Needs:
Physical Needs (food, shelter, safety)
Social Needs (belonging, affection, family)
Individual Needs (knowledge, self-expression, promotions)
Wants and Demand
Wants: Forms of need shaped by culture and individual personality.
Demand: Wants backed by buying power.
Marketers typically have a deeper understanding of consumer needs and wants than consumers themselves.
Types of Demand States
Categories of Demand:
Negative
Non-existent
Latent
Declining
Irregular
Full
Overfull
Unwholesome
Detailed Demand States
Negative demand: Consumers dislike the product, may pay to avoid it.
Non-existent demand: Unawareness or lack of interest in the product.
Latent demand: Strong need not satisfied by existing products.
Declining demand: Decrease in product purchases.
Irregular demand: Variability in purchases based on seasonality.
Full demand: Sufficient purchase to meet supply.
Overfull demand: Desire exceeds supply capacity.
Unwholesome demand: Attraction to products with negative consequences (e.g., alcohol, pirated movies).
Evolution of Marketing
Production-orientation Stage:
Late 1800s-1930s
Sales-orientation Stage:
Early 1930s-1950s
Marketing-orientation Stage:
Mid 1950-1990s
Societal Marketing Concept:
1990s onwards
Importance of Marketing
Marketing ensures customers receive what they want while creating value and profit.
Focus on customer satisfaction and identification of consumer needs over mere product offerings.
Marketing is integral to organizational success; it’s a collective focus from all levels of the organization.
Evolution of the Marketing Concept
Emphasis on long-term relationships for success - "The consumer is king!"
Production Orientation Stage
Concept: "Production creates its own demand."
Focus on manufacturing efficiencies, output increase over customer views
Marketing was mainly selling-focused without consumer satisfaction consideration.
Characteristics of Production-oriented Companies
Companies prioritize product superiority.
They believe in the ability to sell any product provided quality remains high.
Initially successful with novel inventions but may struggle against market-savvy competitors.
Product Orientation Concept
Focused on product quality, performance, and innovative features.
An obsession with product improvement and proper marketing strategy execution is essential.
Sales Orientation Stage
Reflects heavy reliance on promotion in a saturated market.
Emphasis on aggressive selling tactics and techniques like “hard selling.”
The Marketing Concept
Centers on customer orientation and integrated marketing strategies to drive satisfaction and repeat business.
Refinements of the Marketing Concepts
Highlights:
Quality
Relationship Marketing
Mass Customization
Value Creation
Return on Marketing Investment
Societal Marketing Concept
Marketing Orientation Stage
Resulted from societal changes post-war.
Increased consumer awareness and choice.
Companies’ strategies evolved focusing on customer needs and finding balance with supply.
Difference between Selling and Marketing
Selling:
Prioritizes seller's needs, emphasizing short-term sales.
Focused on market share.
Marketing:
Prioritizes buyers' needs, emphasizing long-term relationships.
Focused on profitable sales.
Evolution of Marketing Concepts (continued)
Consumers are drawn to affordable, widely available products.
Organizations must adapt to consumer preferences and implement effective selling strategies.
Proactive vs Reactive Marketing
Proactive Marketing:
Utilized in new industries with little competition.
Involves strategic marketing initiatives.
Reactive Marketing:
Responds to industry changes (e.g., price shifts, technological advancements).
Combines both approaches.
Societal Marketing Concept
Emerged in 1972 advocating for moral business practices.
Advocated by Philip Kotler, emphasizing a company's social responsibility.
Societal Marketing Definition
Focuses on balancing consumers' demands, company's needs, and society's long-term welfare.
Trends towards empowerment, equality, and global issues affecting consumer purchasing decisions.
Holistic Marketing
Emphasizes marketing communications’ role in unifying messages across customer touchpoints.
Maintains consistency enhancing brand confidence and reputation.
Key Concepts in Holistic Marketing
Performance Marketing: Maximizing sales and reducing costs.
Internal Marketing: Collaboration between departments.
Relationship Marketing: Building connections with all stakeholders.
Integrated Marketing: Ensuring all marketing efforts align and work towards organizational growth.