Chapter -I

Introduction to Marketing

105- Basics of Marketing

By. Sachin Wankhede
What is Market?
• A Market consists of all the potential customers sharing a
particular need or want who might be willing and able to
engage in exchange to satisfy that need or want

Communication

Industry Market
Goods/Services
(a collection of sellers) (a collection of buyers)
Money
Information
Introduction to Marketing
• The term ‘market’ originates from the latin noun
‘marcatus’ means “a place where business is
conducted”
• William J. Stanton has defined marketing as a “total
system of interacting business activity designed to
plan, promote and distribute want satisfying products
& services to present & potential customers”
Definition of Marketing

Marketing is the process of planning &

executing the conception, pricing, promotion,
and distribution of ideas, goods and services
to create exchanges that satisfy individual and
organizational goal’s.
‘The right product, in the right place, at
the right time, and at the right price’
Adcock et al
Implications of marketing
• Who are our existing / potential customers?

• What are their current / future needs?

• How can we satisfy these needs?

• Can we offer a product/ service that the customer would value?

• Can we communicate with our customers?

• Can we deliver a competitive product of service?

• Why should customers buy from us?

Functions of Marketing
Environmental
analysis &
research
Broadening
Marketing
the scope of
management
marketing

Functions
Price of Consumer
Planning analysis
Marketing

Promotion
Planning Product
planning
Distribution
planning
Functions of Marketing
Environmental analysis and marketing research:
Monitoring and adapting to external factors that affect
success or failure, such as the economy and competition; and
collecting data to resolve specific marketing issues.
Broadening the Scope of Marketing:
Deciding on the emphasis to place, as well as the approach to
take, on societal issues, global marketing, and the Web.
Consumer analysis:
Examining and evaluating consumer characteristics, needs and
purchase processes; and selecting the group(s) of consumers
at which to aim marketing efforts.
Functions of Marketing
Product planning (including goods, services, organizations, people, places,
ideas):
Developing and maintaining products, product assortments, product
images, brands, packaging, and optional features, and deleting faltering
products.
Distribution planning:
Forming logistical relationships with intermediaries, physical distribution,
inventory management, warehousing, transportation, allocating goods
and services, wholesaling, and retailing.
Promotion planning:
Communicating with customers, the general public, and others through
some type of advertising, public relations, personal selling, and/or sales
promotion.
Functions of Marketing
Price planning:
Determining price levels and ranges, pricing techniques,
terms of purchase, price adjustments, and the use of
price as an active or passive factor.
Marketing management:
Planning, implementing, and controlling the marketing
program (strategy) and individual marketing functions;
appraising the risks and benefits in decision making; and
focusing on total quality.
Scope of Marketing

• Marketing research

• Product planning

• Sales organization

• Physical distribution

• Advertising
Scope of Marketing

• Marketing research
1. Pricing

2. Storage

3. Transport

4. Packaging

5. Branding
Scope of Marketing

• Product planning
1. Selection, training & motivation of sales force

2. Territory allocation & product quota

3. Control of sales

4. Control of expenses

5. Sales forecast
Scope of Marketing
• Sales organization
1. New markets
2. Market segmentation
3. Marketing program
4. Computation
5. Substitutes
6. Sales dept coordination
7. Credit & collection
Scope of Marketing

• Physical distribution
1. Channels : wholesaler, retailers

2. Transportation mode mix

3. Packaging mode
Scope of Marketing

• Advertising
1. Displays

2. Sales campaigns
Evolution of Marketing

• Production Era

• Sales Era

• Marketing Concept Era

• Societal Era
Evolution of Marketing

Customer
Sales
Orientation
Orientation
Philosophy
Philosophy

Production Social
Orientation Orientation
Philosophy Philosophy
Production Orientation Philosophy:
• Manufacturers sell consumers what they can
manufacture, not necessarily what consumer want!
• Till 1930s, there prevailed a strong feeling that
whenever a firm has a good product, it results in
automatic consumer response and that needed little or
no promotional efforts.
• This production-oriented marketing concept was built
on “Good wine needs no push.” That is, if the product
is really good and the price is reasonable, there is no
need for special marketing efforts.
Production Orientation Philosophy:
• The assumptions of this concept are:
– (i) Anything that can be produced can be sold,
– (ii) The most important task of management is to
keep the cost of production down.
– (iii) A firm should produce only certain basic
products.
– Under this concept, production is the starting
point. The product acceptability occurs after the
product is produced.
Sales Orientation Philosophy:
• The failures of the production orientation
philosophy of 1930s paved the way for change
in the outlook that was possible during 1940s.
• This reshaped philosophy was sales-
orientation that holds good to a certain extent
even today.
• It states that mere making available the best
product is not enough; it is futile unless the
firm resorts to aggressive salesmanship.
Sales Orientation Philosophy:
• Effective sales-promotion, advertising and
public- relations are of top importance. High
pressure salesmanship and heavy doses of
advertising are a must to move the products
of the firm.
• The essence of sales orientation philosophy is
“Goods are not bought but sold.” The maker
of product must say that his product is best
and he fails if he keeps mum.
Sales Orientation Philosophy:
• The assumptions of this philosophy are:
– (i) Producing the best possible product.
– (ii) Finding the buyer for the product,
– (iii) The management’s main task is to convince
the buyers through high pressure tactics, if
necessary.
The philosophy has been prevailing since 1940. It is more prevalent in
selling all kinds of insurance policies, consumer non-durables and
consumer durable products, particularly the status-symbols.
Customer Orientation Philosophy:
• This philosophy was brought into play during 1950s and
points out that the fundamental task of business
undertaking is to study and understand the needs, wants,
desires and values of potential consumers and produce
the goods in the light of these findings so that consumer
specifications are met totally.
• The enterprise is to commence with the consumer and
end with the requisite product.
• It emphasizes the role of marketing research well before
the product is made available in the market place.
Customer Orientation Philosophy:
• The assumptions are:
– (i) The firm should produce only that product as
desired by the consumer.
– (ii)The management is to integrate all its activities
in order to develop programmes to satisfy the
consumer wants.
– (iii)The management is to be guided by ‘long-
range profit goals’ rather than ‘quick sales.’
– (iv)Here, the starting point is the customer rather
than the product.
Customer Orientation Philosophy:
• This means a radical change in the
philosophy.
– (i) Move from production to market-orientation,
– (ii) Gradual shift from age old “Caveat emptor” to
“Caveat vendor”.

This philosophy is in vogue and will

continue so long as consumer is the
King of the market.
Social Orientation Philosophy:
• There has been a further refinement in the
marketing concept particularly during 1970s and
1980s. Accordingly, the new concept goes beyond
understanding the consumer needs and matching
the products accordingly.
• This philosophy cares for not only consumer
satisfaction but for consumer welfare or social
welfare. Such social welfare speaks of pollution-
free environment and quality of human life.
Social Orientation Philosophy:
• Thus, a firm manufacturing a pack of
cigarettes for consumer must not only
produce the best cigarettes but pollution-free
cigarettes; an automobile not only fuel
efficient but less pollutant one.
• In other words, the firm is to discharge its
social responsibilities. Thus, social welfare
becomes the added dimension.
Social Orientation Philosophy:
• The assumptions of social-orientation
philosophy are:
– (i) The firm is to produce only those products as are
wanted by the consumers,
– (ii) The firm is to be guided by long-term profit goals
rather than quick sales.
– (iii) The firm should discharge its social
responsibilities,
– (iv) The management is to integrate the firm’s
resources and activities to develop programme to
meet these individual consumer and social needs.
Social Orientation Philosophy:
– This social oriented philosophy is the latest and is
considered as an integrated concept. This
philosophy, as it covers earlier long-standing
concepts, is bound to rule the marketing world for
pretty long time.
– However, we are to wait and see as to what
changes are likely in the coming years and
decades that will shape the new marketing
concept.
Core concepts of marketing
Core concepts of marketing
• Need, Want, Demand:
– A need is a state of felt deprivation. It is a part of the
human makeup. Humans have many needs, viz., physical
needs, social needs, spiritual needs and so on.
– Wants are the form taken by needs as they are shaped by
the one’s culture and personality. Wants are thus shaped
by both the internal and external factors. Wants are
described in terms of objects that will satisfy needs.
– Demand is the want for specific products that are backed
by the ability and willingness (may be readiness) to buy
them. It is always expressed in relation to time. All wants
are not transmitted in demand. Such wants which are
supported by ability and willingness to buy can turn as
demand.
Wants + Buying Power = Demand
Core concepts of marketing
• Product (Goods/Services):
– Product can also be referred as a bundle of
satisfaction, physical and psychological both.
– Product includes core product (basic contents or
utility), product-related features (colour, branding,
packaging, labeling, varieties, etc.), and product-
related services (after-sales services, guarantee and
warrantee, free home delivery, free repairing, and so
on).
– So, tangible product is a package of services or
benefits. Marketer should consider product benefits
and services, instead of product itself.
Core concepts of marketing

• Utility (value), Cost, and Satisfaction:

– Utility means overall capacity of product to satisfy
need and want. It is a guiding concept to choose
the product. Every product has varying degree of
utility. As per level of utility, products can be
ranked from the most need-satisfying to the least
need-satisfying.
Core concepts of marketing
• Utility (value), Cost, and Satisfaction:
• Cost means the price of product. It is an economic value of
product.
• The charges a customer has to pay to avail certain services can
be said as cost.
• The utility of product is compared with cost that he has to pay.
He will select such a product that can offer more utility (value)
for certain price. He tries to maximize value, that is, the utility of
product per rupee.
Core concepts of marketing
• Utility (value), Cost, and Satisfaction:
– Satisfaction means fulfillment of needs.
– Satisfaction is possible when buyer perceives that
product has more value compared to the cost paid
for.
– Satisfaction closely concerns with fulfillment of all
the expectations of buyer.
– Satisfaction releases the tension that has aroused
due to unmet need(s). In short, more utility/value
with less cost results into more satisfaction.
Core concepts of marketing
• Exchange, TransactioN:
– Exchange is in the center of marketing.
– Marketing management tries to arrive at the
desired exchange.
– Marketing occurs when people decide to satisfy
needs and wants through exchange.
– Exchange is the act of obtaining a desired object
from someone by offering something in return.
Core concepts of marketing
• Exchange is possible when following five
conditions are satisfied:
i. There should be at least two parties
ii. Each party has something that might be of value to
the other party
iii. Each party is capable of communication and delivery
iv. Each party is free to accept or reject the exchange
offer
v. Each party believes it is desirable to deal with the
other party
Core concepts of marketing
• Exchange, Transaction:
– Transaction differs from exchange.
– Exchange is a process, not event. It implies that
people are negotiating and moving toward the
agreement. When an agreement is reached, it is
transaction. Transaction is the decision arrived or
commitment made.
– There are various types of transactions, such as;
• barter transactions, monetary transactions, commercial
transactions, employment transactions, civic transactions,
religious or charity transactions.
Core concepts of marketing

• Transaction involves following conditions:

i. At least two things of value

ii. Agreed upon conditions

iii. A time of agreement

iv. A place of agreement

v. A law (legal system) of contract to avoid distrust

Core concepts of marketing
• Relationships and Network:
– Today’s marketing practice gives more importance
to relation building.
– Marketing practice based on relation building can
be said as relationship marketing.
– Relationship marketing is the practice of building
long-term profitable or satisfying relations with
key parties like customers, suppliers, distributors,
and others in order to retain their long-term
preference in business.
Core concepts of marketing

• Relationships and Network:

– A smart marketer tries to build up long-term,
trusting, and ‘win-win’ relations with valued
customers, distributors, and suppliers.
Relationship marketing needs trust, commitment,
cooperation, and high degree of understanding
Core concepts of marketing
• Relationships and Network:
– Network is the ultimate outcome of relationship
marketing. A marketing network consists of the
company and its supporting stakeholders –
customers, employees, suppliers, distributors,
advertising agencies, colleges and universities, and
others – whose role is considered to be essential
for success of business.
Core concepts of marketing
• Market, Marketing, Marketer, and Prospect
– A market consists of all potential customers
sharing a particular need or want who might be
willing and able to engage in exchange to satisfy
this need or want.
– Marketing is social and managerial process by
which individuals and groups obtain what they
need and want through creating and exchanging
product and value with others.
Core concepts of marketing
– Marketer is one who seeks one or more prospects
(buyers) to engage in an exchange. Here, seller can
be marketer as he wants other to engage in an
exchange. Normally, company or business unit can
be said as marketer.
– Prospect is someone to whom the marketer
identifies as potentially willing and able to engage
in the exchange. (In case of exchange between
two companies, both can be said as prospects as
well as marketers).
Customer Satisfaction
• Business always starts and closes with
customers and hence the customers must be
treated as the King of the market.
• All the business enhancements, profit, status,
image etc of the organization depends on
customers.
• Hence it is important for all the organizations
to meet all the customers’ expectations and
identify that they are satisfied customer.
Customer Satisfaction
• The most important asset of any
organization is its customers
• Satisfied customers pay their bills
promptly which greatly improves
cash flow – the lifeblood of any
organization
Organizational Hierarchial Diagram

•
Customer Satisfaction
• Customers Experience Of A
Product Or A Service Is
Multifaceted So Hard To Determine

• It Needs To Be Measured
Individually To Get An Accurate
Total Picture Of Customer
Satisfaction
Customer Satisfaction
• Customer satisfaction should not be
viewed in a vacuum.
• For example, a customer may be
satisfied with a product or service
and therefore rate the product or
service highly in a survey and yet
same customer may buy another
product.
Customer Satisfaction
• Similarly customer’s view about a
product or service are useless if
customer’s view about competitors
products are not understood.
Customer Satisfaction
• The value customers places on the
product compared to another may be
a better indication of customer
loyalty.
TYPES OF CUSTOMER

External Customer

Internal Customer
Customer Perception Of Quality

Survey Shows That Important Factors

That Influence Purchasing Are
1. Performance
2. Features
3. Service
4. Warranty
5. Price
6. Reputation
Feedback

• Comment Card.
• Customer Questionnaire.
• Focus Groups.
• Toll Free Telephone No.
• Customer Visits.
• Report Card.
• Internet & Computer.
• Employee Feedback.
• Customer complaints
Comment Card
• Comment card can be attached to
the warranty card & included with
the product at the time of the
purchase

• Intent of this card is to get simple

information such as name , age,
address, occupation & what made
the customer buy that product
Comment Card
• For customer there is little or no
incentive to comment
• Customers do respond when there is
something very good or very bad
• Used in hospitality industry(hotels,
restaurants)
Customer Questionnaire

• Popular tool for obtaining opinion &

perceptions about an org./product/svs

• Costly & time consuming

• Most surveys ask the customer to grade

the question on a 1-5 or 1-10 likert
scale
Customer Questionnaire
HIGHLY HIGHLY
PARAMETER NEUTRAL
SATISFIED DISSATIS

• COMMUNICATION SKILLS 5 4 3 2 1

• GRIP ON THE SUBJECT 5 4 3 2 1

• ANSWER TO THE QUESTIONS 5 4 3 2 1

• WHOLE CLASS PARTICIPATION 5 4 3 2 1

• DO U FEEL ANY VALUE ADDITION 5 4 3 2 1

AFTER HIS CLASS

• DO U GO HOME SATISFIED AFTER 5 4 3 2 1

ATTENDING HIS LECTURE
Customer Questionnaire
• Does not tell about the importance of
individual question relative to others
• Nor does it tell what customers expect from
organization
• Results are not representative of the normal
population
• those who feel very good or very bad respond
only
To Make Survey More Useful
Remember

1. Clients & customers are not same

2. Survey raise customer expectation

3. How u ask a question will determine how

the question is answered

4. The more specific the question, the

better the answer
TO MAKE SURVEY MORE USEFUL REMEMBER

5. You have only one chance & 15 min.( max. time

a customer will give to respond a survey)

6. More time u spend in survey development, less

time u get in data analysis & interpretation

7. Whom u ask is as important as what u ask

8. Before data are collected , u should know how u

want to analyze & use the data
Focus Groups

• Popular way to obtain feedback

• Surveying a focus group is a research method
used to find out what customers are really
expecting
• Group of customers is assembled in the
meeting room to collect information
• Carefully prepared answers are asked by
skilled moderator
• Who probes into participants ideas, thoughts
perceptions & comments
• People selected have the same profile as the
expected customer
• Focus groups r sometimes used within the
organization to address internal issues
Focus Groups( Imprint Analysis)

• Imprint analysis is an emerging technique

used in the focus groups
• Good way to obtain intrinsic feeling about
the product/service
• Feeling r not easily obtained from the
customers
• Customers often holdback information's on
survey
Focus Groups (Imprint Analysis)

• Word association, discussions &

relaxation techniques can identify a
customers emerging needs
• Imprint analysis helps to understand
the human emotions involved in the
purchase decision
Toll Free Phone No.
• Effective technique for complaint
feedback
• Organization can respond faster &
cheaply to the complaints
Customer Visits
• Visit to a customers place of business
is an effective way to gather
information
• Accurate information obtained –
people can see first hand how the
product is performing
REPORT CARD

THE INTERNET & THE

COMPUTER
Employees Feedback
• Employees r untapped source of
information's
• Conventionally companies listen
more to the external customers &
less to the internal customer
• Employees usually provide deeper
insight into conditions
Employees feedback
• Customers research reveals what is
happening
• Employees research reveals why it is
happening
• It should be regularly solicited rather
than checking the wooden box
annually
Using Customer Complaints
• The feedback obtained in all above cases
is proactive
• Customer complaint is reactive but very
useful
• Asq Survey Reveals That About
1. 1.5% Complaints Reach Top Management
2. 20% To Front Line Personnel
3. 80% Don’t Report
• It indicates that it is easy for the top
management to perceive that every
thing is ok

• When satisfied customers r included in

the data, no. of complaints to
management is lower than 1.5%

• Frequently dissatisfied customers don’t

say anything & quietly switch over to
competitor
• Those who dont complain r the one
who should worry the organization
most

• By taking the positive approach to

the complaints it is possible to
improve the products/services

• In fact complaints give the

organization a second chance
ONCE U HAVE IDENTIFIED THE
COMPLAINTS/ PROBLEMS

NOW TURN TO ELIMINATION.

INCORPORATE CUSTOMER VOICE
INTO PRODUCT/ SERVICE
Mass Customization
• Give customer exactly what
customer wants
Customer Delight
• Customer delight differs from customer
satisfaction in one very crucial way: it's about
exceeding a customer's expectations, or going
above and beyond, rather than just simply
providing a satisfactory experience that met
expectations.
• Business exists because of customers. Delivering
delightful experience creates loyal customers and
keeps them coming back.
Customer Delight
• Customer delight can result in good things for
businesses. Why? Because businesses benefit from
their good works toward customers in numerous ways:
increased revenue, greater brand loyalty, and being
separated from the pack of competitors.
• https://www.youtube.com/watch?v=779KwjAYTeQ
• https://www.youtube.com/watch?v=UgwaO8JkXYU
• https://www.youtube.com/watch?v=ZFb01yTR9bA
• https://www.youtube.com/watch?v=7GaUReEdHeM
Key Customer Markets
• Consumer Markets: Consumer goods and
services such as soft drinks and cosmetics, spend
a great deal of time trying to establish a superior
brand image; focus is on quality, features,
distribution network, promotion.
• Business Markets: Companies selling business
goods and services often face well-trained and
well-informed professional buyers who are skilled
in evaluating competitive offerings. Focus is on
sales force, pricing, product and service reliability
Business Markets versus Consumer
Markets

An elastic demand is one in which the change in quantity demanded due to a change in price is large.

An inelastic demand is one in which the change in quantity demanded due to a change in price is small.
Key Customer Markets
• International Markets/Global Markets: Companies face
challenges and decisions –which countries to enter, how to
enter the country, how to adapt their products/services to
the country, how to price their products and how to modify
their communications to suit the new culture.
– McDonalds and Coca Cola.
– https://www.youtube.com/watch?v=pMLrVP_E-jA
– https://www.youtube.com/results?search_query=McDonald%E2%80%99s+India+retu
rns+to+core+%E2%80%98family%E2%80%99+positioning+with+new+ads
– https://www.youtube.com/watch?v=zcDgiTVyt-Q
• Nonprofit/Government Markets: Companies selling to
these markets have to price carefully because these
organizations have limited purchasing power.
– NGO’s, Government offices, ordnance factories, army, navy and other government
departments.)
What is Marketed?

Goods Places
Services Properties
Events Organizations
Experiences Information
Persons Ideas

https://www.youtube.com/watch?v=W5VZqEnWK5E
Ten entities of marketing:
• Marketing people are involved in marketing ten
types of entities: goods, services, events,
experiences, persons, places, properties,
organizations, information, and ideas.
A) Goods: Physical goods constitute the bulk
of production and marketing efforts.
B) Services: A growing portion of business
activities are focused on the production of
services. The U.S. economy today consists of a
70–30 services to goods mix.
Ten entities of marketing:
C)Events: Marketers promote time-based events
such as trade shows, artistic performances, and the
Olympics.

D)Experiences: By orchestrating several services

and goods, a firm can create and market
experiences such as Walt Disney World’s Magic
Kingdom, Imagica etc.

E)Persons: Celebrity marketing is a major business.

Ten entities of marketing:
D)Places: Cities, states, regions, and whole
nations compete actively to attract tourists,
factories, and new residents.

E)Properties: Are intangible rights of ownership

of either real property (real estate) or financial
property (stocks and bonds).

H)Organizations: Actively work to build a strong,

favorable, and unique image in the minds of their
target publics
Ten entities of marketing:
I)Information: Can be produced and marketed
as a product. Schools, universities, and others
produce information and then market it.
J)Ideas: Every market offering includes a basic
idea. Products and services are platforms for
delivering some idea or benefit.
Marketplaces, Marketspaces, and
Metamarkets

• The marketplace is physical,

• The marketspace is digital,
• The metamarket is a cluster of complementary
products and services that are closely related
in the consumer’s mind but spread across a
diverse set of industries.
Marketplaces, Marketspaces, and
Metamarkets
• Marketplaces are physical markets or shops or
stores while Marketspaces are Digital Shops or
Shopping websites.
• Metamarkets are closely related markets from
the customer point of view but are different set
of industries.
– For example, in the automobile meta market different
industries are Automobile Manufacturers, Insurance
Providers, Service Centers, Spares, Driving Academy,
Finance Companies etc.
Marketplaces, Marketspaces, and
Metamarkets
• The reason why metamarkets are important is
because they possess a common synergy.
Industry can look into which metamarkets
they can get into.
– For example, Maruti had got into Auto Driving
School Business, while Mahindra and Tata Motors
have their own Motor Finance companies.
Videocon got into DTH Services, from being a TV
manufacturer.
Digital Markets
• Digital marketing encompasses all marketing
efforts that use an electronic device or the
internet. Businesses leverage digital channels
such as search engines, social media, email,
and other websites to connect with current
and prospective customers.
Bricks and Clicks Model
• A common example of the bricks and clicks
model is when a chain of stores allows the
customer to order products both online and
physically in one of their stores, also allowing
them to either pick-up their order directly at a
local branch of the store or get it delivered to
their home.
• https://www.youtube.com/watch?v=PmIUu4a
-N-I
Bricks and Clicks: New Trend &
Business Model
• The retail model will evolve from
single/multiple channel model to an
integrated hybrid cross channel model.
Bricks (Pre 2000) + Advent of Clicks ( Post 2000)
Departmental/Super Markets/ Online Mobile Payment Apps
Hyper Markets Stores
The Future: Bricks and Clicks
2015 and Beyond
Virtual Stores • https://www.indiatoday.i
n/india/north/story/wal-
mart-launches-virtual-
wholesale-stores-in-
hyderabad-lucknow-
199019-2014-07-02
• https://www.fibre2fashi
on.com/News/apparel-
news/newsdetails.aspx?
news_id=146535&amp=t
rue
The Future: Bricks and Clicks
2015 and Beyond
Integrated Stores • https://retail.economictimes.i
ndiatimes.com/news/apparel-
fashion/accessories/titan-
launches-integrated-format-
store-in-hyderabad/63741269

• http://www.retail4growth.com
Online Market /news/hindware-launches-
digitally-integrated-stores-to-
open-400-brand-stores-in-
next-20-months-2747
What is Globalization?
• Globalization a process where people, companies, and
governments from different nations interact and
integrate through international trade and investments
has effects on the environment, culture, political
systems, economic development and on the human
physical well-being in societies around the world.

• Through the Internet, media, planes,

international business and embassies
we are now more connected to each
other than ever before.
Positive Impacts Of Globalization
• Gives Access to a Larger Market
– Through globalization countries and companies have
access to a bigger consumer base. Instead of only
selling products in their country a business can
expand to other regions boosting sales and in the
process making more money.
• Provides Cheaper Goods for Consumers
– Because of globalization a lot of companies are
moving to areas where their cost of production is low
they, in turn, offer cheaper products because they are
not expensive to make hence lower prices for
consumers.
Positive Impacts Of Globalization
• Globalization Wets Countries do what They do Best
– For example, a country can buy cheap steel from another
country instead of making its own steel. They can then
focus their efforts on making other things they are good at
like computers and export them to the countries they
import cheap steal from.
• Promotes World Peace and Unity
– Globalization brings governments together so that they
can tackle common goals together. For example, due to
globalization world leaders have seen the impact of
pollution and have resolved to tackle climate change
together. Also, it is unlikely that a country trading a lot of
products and services with another will attack it or want to
go to war with it.
Positive Impacts Of Globalization
• Leads to Better Economies
– With many multi nation’s heading to Africa to tap the
consumer base in this part of the world more jobs are
being created helping people in these countries get better
wages and improve their stands of living.
– This investments by these multinationals or foreign
countries also help strengthen the economies of these
countries with the foreign exchange they bring in.
– With an increased number of investors looking for
investments opportunities around the globe, country
economies will benefit wherever they invest.
– Through globalization economies of different countries are
becoming more connected to one another since they
depend on each other for trade.
Positive Impacts Of Globalization
• Innovation
– The desire to make a profit has always been
a spur to expanded trade, innovation, and the
communication of ideas. The great ideas from
leaders spread more easily.
• Better Quality and Variety
– Competition from different countries drives firms
to improve their products. Consumers have better
quality products and more variety as a result.
Negative Impacts Of Globalization
• Causes Environmental Damage
– Globalization has led to increased production for
businesses in order to meet global demand.
– Increased production means more natural resources are
used and this can be used up before they are regenerated
leading to a negative impact on the environment.
– Also in developing countries rules and regulations on
environmental protection are not as strict as in developed
countries.
– This has seen some multinationals leave their countries to
set up in developing countries to take advantage of this lax
regulation in the process they manufacture products that
are harmful to the environment.
Negative Impacts Of Globalization
• Causes Fluctuation of Prices
– Increased competition means that businesses with the
best prices win.
– Due to competition prices are always fluctuating, for
example, a country like the US has to reduce its prices
often to compete with prices for the same product
coming from China.
– China’s production costs are lower than the US hence
they can have ridiculously low prices.
– For the US companies reducing prices will have a
negative effect on their profits which in turn may led
to actions like laying off workers.
Negative Impacts Of Globalization
• Job Insecurity
– Globalization provides a double-edged sword when it
comes to jobs.
– It creates jobs for people in developing countries who
provide cheaper manufacturing jobs.
– For example, many companies are setting up in India and
China because wages and manufacturing jobs are cheaper
there this means less opportunities in developed worlds.
– In short, globalization takes jobs from one country and
provides them to another.
– This can be negative or positive depending on what part of
the world you are in.
The Impact of Technology on Marketing

• The development of technology is shaping the

world around us in numerous different ways.
• One of the business areas that is being
significantly affected is marketing.
• The change is primarily caused by the rising
popularity of mobile devices such as
smartphones and tablets.
• The change is greatly affecting traditional
marketing, as the number of TV consumers is
decreasing every day.
Some Marketing Approaches
• Email Marketing:
– Emails are practically the foundation of online
communication.
– Nowadays, people have to rely on their email addresses
for registering on social media networks and for making
accounts on many different platforms.
– Also, emails have now become linked to services and
devices (cloud services and smartphones)
– This marketing channel is going to remain open for a long
time in the future.
– Companies around the world will be able to reach people
directly on their mobile devices and advertise their
products.
Some Marketing Approaches
• Social Media Marketing:
– Social media networks are increasingly becoming more
popular.
– Advertisements on these platforms is becoming a much
better option as an increasing number of people are
spending their time on social media networks every single
day.
– It is easy to measure the performance of every marketing
campaign that is run on social media networks.
– Advertisers can follow statistics and find out which social
media networks are best for improving their marketing
efforts.
Some Marketing Approaches
• Ephemeral Marketing:
– Ephemeral” messaging means that the sent messages
disappear after a short period of time. Messages are
either text, images or video.
– For example, the Snapchat story & Whats app is great
for sharing images and videos which disappear after
24 hours.
– This time frame is perfect for notifying your followers
that you are offering a special discount for 24 hours.
– This is a great way to increase sales for a variety of
products.
Chatbots
• We have seen other trends enabled by technology popping up in
2017 more frequently, like AI, VR and Chatbots.
• Chatbots enable real-time conversations with consumers.
• Having concerns or queries answered on the spot is a great way to
instill confidence in a brand.
• Helping the brand to redefine the customer experience and making
it completely personal. Expect this to be explored further in
marketing strategies.
• Smart brands have started adapting to these trends and
strategically planning for 2019 and beyond.
• With the focus on building consumer experiences and connections
through digital means, a brand can have a good chance to be ahead
in the game, giving a competitive edge to their business.
The Impact of Social Responsibility on
Marketing
• Many companies are implementing a host of
social responsibility strategies through
sustainable product initiatives.
• Creating Sustainable Products
– A sustainable product is constantly environmental-
friendly during its entire life. That is, from the
moment the raw materials are extracted to the
moment the final product is disposed of, there
must be no permanent damage to the
environment.
A sustainable product focus may include:

 Use of organic raw materials

 Sustainably harvesting of raw materials
 Emphasizing human rights and labor conditions in
sourcing decisions
 Use of renewable energy in the production process
 Ensuring that use of the product creates a positive
impact on the community
 Creating product recycling and reuse options
 Improving the impact of the product’s use on human
and environmental health
New consumer capabilities
• The digital revolution has placed a whole new set of
capabilities in the hands of consumers and businesses.
Consider what consumers have today that they didn't
have yesterday.
– A substantial increase in buying power:
– A greater variety of available goods and services:
– A great amount of information about practically anything:
– A greater ease in interacting and placing and receiving
orders:
– An ability to compare notes on products and services:
– https://www.youtube.com/watch?v=lrNVLj070Ts
New consumer capabilities
• A substantial increase in buying power:
– Buyers today are only a click away from comparing competitor
prices and product attributes.
– They can get answers on the internet in a matter of seconds.
– They don't need to drive to stores, park, wait on line, and hold
discussions with salespeople.
– Consumers can even name the price they want to pay for a
hotel room, airline ticket, or mortgage, and see if there are any
willing suppliers.
– Business buyers can run a reverse auction where sellers
compete to capture the buyers business.
– Buyers can join with others to aggregate their purchases to
achieve deeper volume discounts.
New consumer capabilities
• A greater variety of available goods and services:
– Today a person can order almost anything over the
Internet —- furniture, washing machines, management
consulting, Medical advice.
– Amazon.com advertises itself as the worlds largest
bookstore, with over 3 million books; no physical
bookstore can match this.
– Furthermore, buyers can order these goods from
anywhere in the world, which helps people living in
countries with very limited local offerings to achieve great
savings.
– It also means that buyers in countries with high prices can
reduce their costs by ordering in countries with lower
prices.
New consumer capabilities
• A great amount of information about practically
anything:
– People can read almost any newspaper in any language
from anywhere in the world.
– They can access online encyclopedias, dictionaries,
medical information, movie ratings, consumer reports, and
countless other information sources.

• A greater ease in interacting and placing and receiving

orders:
– Todays buyers can place orders from home, office, or
mobile phone 24 hours a day, 7 days a week, and the
orders will be delivered to their home or office quickly
New consumer capabilities
• An ability to compare notes on products and
services:
– Todays customers can enter a chat room centered
on some area of common interest and exchange
information and opinions.
New Company Capabilities
• Marketers can use the Internet as a powerful
information and sales channel. The Internet augments
marketers’ geographical reach to inform customers and
promote products worldwide. A Web site can list
products and services, history, business philosophy, job
opportunities, and other information of interest.
• Marketers can collect fuller and richer information
about markets, customers, prospects, and competitors.
• Marketers can tap into social media to amplify their
brand message.
New Company Capabilities
• Marketers can facilitate and speed external
communication among customers.
• Marketers can send ads, coupons, samples, and
information to customers who have requested
them or given the company permission to send
them.
• Marketers can reach consumers on the move
with mobile marketing.
• Companies can make and sell individually
differentiated goods
New Company Capabilities
• Companies can improve purchasing,
recruiting, training, and internal and external
communications.
• Companies can facilitate and speed up
internal communication among their
employees by using the Internet as a private
intranet.
• Companies can improve their cost efficiency
by skillful use of the Internet
Functions of Marketing Manager
• Marketing managers are focused mainly on the
practical application and management of an
organization’s marketing operations.
• For marketing managers to be efficient and effective in
performing their functions, they should have excellent
communication and analytical skills.
• In small organizations, the marketing manager is in
charge of the organization's entire marketing activities
and therefore handles formulating, directing and
coordinating marketing activities so as to influence
customers to choose the organization's products over
those of competitors.
Functions of Marketing Manager
• A Marketing Manager Conducts Market Research
– A marketing manager carries out market research to gain a
clear understanding of what an organization’s customers
really want.
– Marketing research enables these managers to identify
new market opportunities, helping the organization create
a market niche for its products or services.
– Market research also involves studying the organization's
competitors so as to develop superior products and
employ efficient marketing techniques.
– Companies conduct market research using questionnaires,
face-to-face interviews or analyzing the buying habits of
consumers.
Functions of Marketing Manager
• Developing the Marketing Strategy
– Marketing managers are responsible for
developing marketing strategies for their
organizations.
– These strategies outline clearly how an
organization will promote its products and
services to its target market with an aim of
increasing its sales volumes and maintaining a
competitive edge over its competitors.
Functions of Marketing Manager
• Customer Relationship Management
– The marketing manager performs the function of
championing customer relationship management in
the organization.
– The marketing manager collects this information from
the organization's customer database to help create a
customer satisfaction survey.
– Marketing managers then share this information with
other employees to ensure they offer excellent
customer service to their clients in order to build
lasting relationships.
Functions of Marketing Manager
• Employee Management
– Marketing managers are in charge of the
marketing department and therefore are
responsible for employees within their
department.
– They assign duties and set targets for
departmental staff.
– It is also the function of marketing managers to
perform periodic performance evaluations of the
staff working for them.
Functions of Marketing Manager
• Identifying New Business Opportunities
– Marketing managers analyze market trends with an
aim of identifying unexploited or new markets for the
organization's products and services.
– Through studying the purchasing patterns of
consumers, they can identify the peak and off-peak
demand periods for their products.
– By employing sales forecasting, they can estimate
future performance of the organization's products.
– Also through market analysis and forecasting, they can
develop strategies to ensure the organization remains
competitive.
Linkage of Marketing functions with all
functions in the organization
• The marketing function within any organization
does not exist in isolation.
• Marketing interacts with research and
development, production/operations/logistics,
human resources, IT and customer service.
• All functions within your organization are pointed
towards the customer.
– Example: Warehouseman that packs the order till the
customer service team member who answers any
queries you might have.
With Human resources
• Human Resource Management (HRM) is the
function within your organization which
overlooks recruitment and selection, training,
and the professional development of employees.
• Other related functional responsibilities include
well-being, employee motivation, health and
safety, performance management, and of course
the function holds knowledge regarding the legal
aspects of human resources.
Operational roles of HR in Marketing
• Recruitments.
– Helps in scoping out the job, a person profile, a
job description, and advertising the job openings.
– Help in scoring and assessing the application
forms, and organize the interviews.
– Assist at interview and support for job offer.
– Organise an induction for new employee.
– HR sometimes get tough with underperforming
employees.
Strategic role of HR in Marketing
• Sees people as a valuable asset for organization.
• Assist with a global approach for managing
people and help to develop a workplace culture
and environment which focuses on mission and
values.
• They play an important communications role.
– HR department may run a staff development
programme which needs a newsletter or a presence
on your intranet. This is part of internal marketing
effort.
With IT (websites, intranets and extranets)

• Websites are used by businesses for a number of

reasons such as to provide information to
customers.
• Through websites, customers can interact with
the product, buy a product, they begin to build a
long-term relationship with the marketing
company.
• Information Technology underpins and supports
the basis of Customer Relationship Management
(CRM)
With IT (websites, intranets and extranets)

• An intranet is an internal website.

• An intranet is an IT supported process which
supplies up-to-date information to employees
of the business and other key stakeholders.
With IT (websites, intranets and extranets)

• An extranet is an internal website which is

extended outside the organization, but it is not a
public website.
• An extranet takes one stage further and provides
information directly to customers / distributors /
clients.
• Customers are able to check availability of stock
and could check purchase prices for a particular
product.
– For example a car supermarket could check availability
of cars from a wholesaler
Customer service provision role in Marketing

• It is very much integrated into marketing.

• It might be automated, it could be done solely
online, or you might speak to a real person
especially if you have a complex or technical
need.
• It is supported by IT to make the process of
customer support more efficient and effective.
• It capture and process data on particular
activities
• It provides speedy and timely information about
new or developing customer needs.
Customer service provision role in Marketing

• It revolves around a series of activities which are

designed to facilitate the exchange process by
making sure that customers are satisfied.
• Customers may call a software manufacturer for
some advice, assistance, billing enquiry or might
even wish to cancel a contract or make changes
to it.
– For example if we have a promotion which has just
been launched we can use the customer service
functions to help us check for early signs of success
Research and development role in
Marketing
• Research and development is the engine
within an organization which generates new
ideas, innovations and creative new products
and services.
– For example cell phone / mobile phone
manufacturers
• Research and development should be driven
by the marketing concept.
Research and development role in
Marketing
• The needs of consumers or potential consumers
should be central to any new research and
development in order to deliver products that
satisfy customer needs (or service of course).
• Marketers liaise with researchers in order to
make sure that customer needs are represented.
– For example logistics (place/distribution/channel)
could be researched in order to deliver products more
efficiently and effectively to customers.
Production/operations/logistics role in
Marketing
• The operations, production and logistics
functions within business need to work in
cooperation with the marketing department.
• Operations include many other activities such
as warehousing, packaging and distribution.
• To an extent, operations also includes
production and manufacturing, as well as
logistics.
Production/operations/logistics role in
Marketing
• Production is where goods and services are
generated and made.
– For example an aircraft is manufactured in a
factory which is in effect how it is produced i.e.
production.
• Logistics is concerned with getting the product
from production or warehousing, to retail or
the consumer in the most effective and
efficient way.
Production/operations/logistics role in
Marketing
• Today logistics would include warehousing,
trains, planes and lorries as well as technology
used for real-time tracking.
• Obviously marketers need to sell products and
services that are currently in stock or can be
made within a reasonable time limit.
• So demand and supply is important in real
scenario.
Finance department role in Marketing
• The marketing department will need to work
closely with the finance department to ensure
that:
– There is an adequate budget to meet the needs for
research, promotion and distribution.
• The finance department is also responsible for
management of the organization’s cashflow and
ensuring there are enough funds available to
meet the day-to-day payments (Salaries,
payments to suppliers, vendors etc).
Company orientation towards market place
Company orientation towards market place

• Product Concept – The product concept

says that customers will always buy
products which are better in terms of
quality performance and features.
• Production Concept – In this concept the
company mainly tries to increase
production irrespective of demands of
the customer. The production concept is
almost extinct now with companies
paying more and more attention to the
customer.
Company orientation towards market place

• Selling concept – The selling

concept believes that
customers will not buy
products unless persuaded to
do so. As we know, this is true
even today in case of certain
products such as insurance.
Although the customer should
use it, they rarely do.
Company orientation towards market place

• Marketing Concept – Just like

selling is a necessity, similarly
branding and marketing are a
necessity in some products.
The marketing concept
proposes that the success of a
firm depends on the marketing
efforts of the company in
delivering a value proposition.
Value Proposition.
• Typically a customer value proposition
consists of the following criteria’s.
• Product
– What is your product and what are the features of
your product.
– A customer can be impressed if you have a lot of
USP’s and if you highlight these USP’s.
– If you don’t show all the features of your product,
than the customer is most likely to lose interest.
Value Proposition.
• Segment
– Are you approaching the right segment for your
product?
– If you target a wrong segment, the customer value
proposition will probably be lost on your
customer.
– He will not at all be interested in the proposition
because he is not the target audience.
Value Proposition.
• Price
– Deals are made and broken on the basis of price.
– Is your price too high or too low as per your target
segment?
– Is your competitor giving a better price?
– A complete value proposition will understand the
dynamics of pricing and the proposition will be
made accordingly.
Value Proposition.
• Value –
– You may not be interested in a local toothpaste
brand, but you will definitely be interested in
Colgate.
– You may not show interest in a local made Cola,
but you will like it when offered a Coke or a Pepsi.
– The brand carries value.
– The best practice is to highlight your brand and its
heritage while preparing a customer value
proposition
Value Proposition.
• Competition –
– Whether you want to listen to this or not, but the truth
is your customers are equally interested in your
competition.
– They will choose you only if you have the right customer
value proposition which meets the customer’s
requirements.
• Successful companies understand that value proposition is
the most important part of business. And to stay ahead of
competition, you need to build value as per what the
customer wants, and not as per what the company can
provide.
Company orientation towards market place

• Societal Marketing Concept – The

societal marketing concept leads to a
company orientation which believes in
giving back to the society what it had
received from the society. This concept
believes that the company is profiting
because of society and hence it should
also take measures to make sure the
society also benefits from the
company.
• Iss Diwali, Thodi si Jagah Bana lo
• We’ll take care of you, wherever you are.
• Iss Diwali Dil Se Baatein Kartein Hain
Holistic Marketing Orientation
• Holistic marketing concept is a part of the series
on concepts of marketing and it can be defined as
a marketing strategy which considers the
business as a whole and not as an entity with
various different parts.
• According to holistic marketing concept, even if a
business is made of various departments, the
departments have to come together to project a
positive & united business image in the minds of
the customer.
Holistic Marketing Orientation
• Internal marketing – Marketing between all the
departments in an organization
• Integrated marketing – Products, services and
marketing should work hand in hand towards to
growth of the organization.
• Performance marketing – Driving the sales and revenue
growth of an organization holistically by reducing costs
and increasing sales.
• Relationship marketing – Building a better relationship
with your customers, internal as well as end customers
is beneficial for holistic marketing.
Example of Holistic marketing concept

• An organization will have different departments

like sales and marketing, accounting and finance,
R&D and product development and finally HR and
operations.
• Thus, if you want to implement a holistic
marketing concept in your organization, you need
to ensure that R&D and product development
take the feedback from marketing and sales to
launch the product which is most likely to attract
customers.
Example of Holistic marketing concept
• On the other hand they need to work closely with
accounting and finance to find out the exact
budget for the project.
• Sales and marketing need to communicate to the
HR the right kind of people that they need, and
finally, admin and operations need to devise a
plan to retain these people.
• Thus, in the above manner, you get the right
product at a right price with the right profits.
• Along with this you get the right people who will
market your product in the right manner.
Take away
• By doing all these things, you are sure to get
the right customer to your doorstep. This is
the complete essence of holistic marketing
concept.
• By doing the right things together as an
organization, your product and brand stands a
far better chance in being successful than
compared to these elements working
individually without any holistic vision.
Concept of Marketing Myopia
• Marketing Myopia, first expressed in an article by
Theodore Levitt in Harvard Business Review, is a short-
sighted and inward looking approach to marketing
which focuses on fulfillment of immediate needs of the
company rather than focusing on marketing from
consumers’ point of view.
• Marketing Myopia is a situation when a company has a
narrow-minded marketing approach and it focuses
mainly on only one aspect out of many possible
marketing attributes.
– E.g. focusing just on quality and not on the actual demand
of the customer.
– https://www.youtube.com/watch?v=Fy0KNwzyd74
When does marketing myopia strike in?

• Marketing myopia strikes in when the short term

goals are given more importance than the long
term goals. Some examples being –
– More focus on selling rather than building
relationships with the customers
– Predicting growth without conducting proper
research.
– Mass production without knowing the demand.
– Giving importance to just one aspect of the marketing
attributes without focusing on what customer actually
wants
– Not changing with the dynamic consumer
environment
Examples of Marketing Myopia
• Kodak lost much of its share to Sony cameras
when digital cameras boomed and Kodak didn’t
plan for it.
• Nokia losing its marketing share to android and
IOS.
• Hollywood didn’t even tap the television market
as it was focused just on movies.
• Yahoo (worth $100 billion dollars in 2000) lost to
Google and was bought by Verizon at approx. $5
billion (2016).
Marketing Myopia in future
• Dry cleaners – New types of fibre and chemicals
will result in less demand for dry cleaners.
Synthetic fibres started gaining more popularity
and thereby dry cleaning business are suffering.
• Supermarkets - the consumer doesn’t mind
buying the product from a online shop as long as
it delivers as per their time and have the product
range that they are looking for.
Basis for
Selling Concept Marketing Concept
Comparison
Selling concept is a business
Marketing concept is a business
notion, which states that if
orientation which talks about
consumers and businesses
Meaning accomplishing organizational goals by
remain unattended, then there
becoming better than others in
will not be ample sale of
providing customer satisfaction.
organization's product.
Associated Compelling consumer's mind Directing goods and services towards
with towards goods and services. consumer's mind.
Starting point Factory Target Market
Focuses on Product Customer needs
Perspective Inside-out Outside-in
Essence Transfer of title and possession Satisfaction of consumers
Business
Short term Long term
Planning
Orientation Volume oriented Profit oriented
Means Heavy selling and promotion Integrated marketing
Price Cost of Production Market determined
Marketing Process
• The marketing process is a process of analyzing
the opportunities in the market, selection of the
target markets, and development of the
Marketing Mix and management of the
marketing efforts. Below are the 4 marketing
process steps that involved in targeting the right
audience in the market.
– Analysis of the opportunities in the market.
– Selection of the target market.
– Development of marketing mix.
– Management of marketing efforts.
Understanding Marketing as Creating,
Communicating, and Delivering
1. Creating: The process of collaborating with
suppliers and customers to create offerings that
have value.
2. Communicating: Broadly, describing those
offerings, as well as learning from customers.
3. Delivering: Getting those offerings to the
consumer in a way that optimizes value.
Analysis of the Opportunities in the Market

• The first component of the Marketing Process is to

analyze the market in order to find the opportunities
that should be availed.
• These opportunities are related to the needs and wants
of the customers that are not properly satisfied by the
competitors in the market.
• The company also conducts effective market research
that would tell him the value able information about
the customers, competitors, general trends, and any
extraordinary change occurred in the market that can
be useful for the company.
Analysis of the Opportunities in the Market

• Then company identifies the potential

opportunities from the collected information and
split the whole market into different segment.
• These segments are based on some factors like
age group, geographical location etc.
• The company evaluates each segment separately
to check the potential of the segment in the light
of its strengths and weaknesses.
• Finally, it selects the target market segment to
proceed further.
Selection of the Target Market
• This is the most important step of the marketing
process in which the target customers are
selected.
• For this purpose, the company conducts a careful
analysis of the target markets in order to choose
the final customers.
• As it is obvious that the company do not satisfy
the needs and wants of the whole market
therefore it must divide the whole market into
different segments and choose the segment that
will best meet its strengths and opportunities..
Selection of the Target Market
• In this regards, there are certain step you need
to follow;
– Market Segmentation
– Market Targeting
– Market Positioning
Development of Marketing Mix
• After setting of a complete marketing strategy of
a company, then it is ready to initiate the
planning of its marketing mix.
• Marketing Mix is composed of certain variables of
markets that are mixed by the company in order
to generate certain desired response in the
targeted segments.
• In fact the demand of the product is influenced
by the use of certain activities of the marketing
mix. The marketing mix is composed of the
following four P’s.
Development of Marketing Mix
• Product: means any offering (goods or services)
to the market by the company.
• Price: means the money paid by the customers
to obtain the product.
• Place: means the efforts which ensure the
availability of the product in the market to
customers.
• Promotion: means all the efforts by the company
that ensure the sale of products to customers
through better provision of information about the
advantages of the product.
Management of Marketing Efforts
• This is actually the action phase of the
development marketing program in which a
suitable marketing mix is set for a target market.
For the management of marketing efforts four
functions are adopted which are as follow.
– 01- Analysis of the Market in which the company
identifies the internal strengths and weaknesses along
with the external opportunities and threats.
– 02- Marketing Planning in which certain marketing
plans or strategies are developed so that the overall
objective of the marketing should be accomplished.
Management of Marketing Efforts
– 03- Marketing Implementation in which the
developed plans and strategies are practically
implemented in order to achieve the marketing
objectives.
– 04- Marketing Control in which the performance
results of the marketing plans and strategies are
evaluated and necessary steps are taken to ensure
the accomplishment of overall marketing
objectives of the company.
Creating
• Creating Offerings That Have Value
• Marketing creates those goods and services that the
company offers at a price to its customers or clients.
• That entire bundle consisting of the tangible good, the
intangible service, and the price is the company’s
offering.
• When you compare one car to another, for example,
you can evaluate each of these dimensions—the
tangible, the intangible, and the price—separately.
• However, you can’t buy one manufacturer’s car,
another manufacturer’s service, and a third
manufacturer’s price when you actually make a choice.
• Together, the three make up a single firm’s offer.
Communicating
• Communicating is a broad term in marketing that
means describing the offering and its value to
your potential and current customers, as well as
learning from customers what it is they want and
like.
• Sometimes communicating means educating
potential customers about the value of an
offering, and sometimes it means simply making
customers aware of where they can find a
product.
Delivering
• Marketing can’t just promise value, it also has to
deliver value.
• Delivering an offering that has value is much
more than simply getting the product into the
hands of the user; it is also making sure that the
user understands how to get the most out of the
product and is taken care of if he or she requires
service later.
– Amazon.com sells millions of products every day
through its internet site and delivering them at any
location in the country within a day or two.