Basics of Marketing

Prof.Harshall Gandhi
Lecture 1
INDEX
1. Evolution of Marketing,

2. Marketing Concepts,

3. Introduction to Marketing basics viz Need,

4. Want, Desire, Demand & their relevance.

Definition
• Marketing encompasses every part of a plan to turn a
prospective consumer into a happy and satisfied customer. It
includes everything from market research to advertising. The
goal of marketing is to convince a person that your product is
worth investing in, establish brand loyalty and increase overall
sales.

• According to the American Marketing Association (AMA), marketing is defined as 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.
Evolution of Marketing

Overview of the key phases:

1.Production Orientation Era:
• Focused on mass production.
• Companies believed that consumers would buy products that were
inexpensive and widely available.
• Marketing efforts were minimal, primarily aimed at promoting low prices.
Evolution of Marketing cont’d
2. Sales Orientation Era:
• Emphasis shifted to selling products.
• Companies used aggressive sales techniques and advertising to persuade
consumers to buy.
• Marketing was seen as a way to move products rather than meet consumer
needs.
Evolution of Marketing cont’d
3. Marketing Orientation Era:
1. Companies began to focus on identifying and meeting consumer needs.
2. The concept of the “marketing mix” (product, price, place, promotion)
emerged.
3. Marketing became more strategic, involving market research and
segmentation.
Evolution of Marketing cont’d
4. Societal Marketing Orientation:
1. Emphasis on social responsibility and ethical considerations.
2. Companies started to consider the long-term welfare of society in their
marketing strategies.
3. Environmental sustainability and corporate social responsibility became
important.
Evolution of Marketing cont’d
5. Digital Marketing Era:
1. The rise of the internet and digital technologies transformed marketing.
2. Social media, search engines, and online advertising became key tools.
3. Data analytics and personalized marketing strategies emerged, allowing for
more targeted and efficient marketing efforts.
Marketing continues to evolve with advancements in technology and changes in consumer behavior. It’s a
dynamic field that adapts to the needs and preferences of the market.
Marketing Concepts

1. Production Concept
• This concept focuses on mass production and cost efficiency. The idea is
that customers prefer products that are widely available and affordable.
• Example: Ford Motor Company in the early 20th century. By using
assembly line production, Ford was able to produce cars at a lower cost,
making them affordable for the average consumer.
2. Product Concept
• This concept emphasizes product quality, features, and innovation. The
belief is that customers will favor products that offer the most quality,
performance, or innovative features.
• Example: Apple Inc. Apple focuses on creating high-quality, innovative
products like the iPhone, which often sets trends in the tech industry.
Marketing Concepts cont’d
3. Selling Concept
• This concept is based on the idea that consumers will not buy enough of
the company’s products unless it undertakes a large-scale selling and
promotion effort.
• Example: Insurance companies often use aggressive sales tactics and
extensive advertising to convince customers to buy their policies.
4. Marketing Concept
• This concept focuses on identifying and meeting the needs and wants of
target markets more effectively and efficiently than competitors. It
emphasizes customer satisfaction.
• Example: Amazon. By focusing on customer experience, personalized
recommendations, and efficient delivery, Amazon has become a leader in
e-commerce.
Marketing Concepts cont’d
5. Societal Marketing Concept
• This concept considers not only the company’s needs but also the long-term
interests of society. It emphasizes sustainable and ethical practices.
• Example: The Body Shop. This company is known for its commitment to ethical
sourcing, cruelty-free products, and environmental sustainability.
6. Holistic Marketing Concept
• This concept integrates all aspects of marketing communication, ensuring that
the brand message is consistent across all channels and interactions.
• Example: Coca-Cola. Their marketing campaigns are consistent globally,
promoting happiness and togetherness, whether through TV ads, social media, or
in-store promotions.
These concepts provide a framework for businesses to develop their marketing
strategies and connect with their target audience effectively.
Marketing Mix
Marketing
Mix
2 more additional P’s.
Marketing Mix
Process/ Steps - Marketing
Steps -Sales
Maslows Hierarchy of Needs

Needs: Basic, Psychological, self-fulfillment

Need and Want

• To. differentiate between need and want, let us assume four individuals are hungry; their need is
food. Assuming they have the resources to get involved in acquiring food to satisfy hunger, they go to
McDonald’s. One orders a vegetable burger; the second orders a puff, the third asks for a chicken
burger, and the fourth buys a huge ice cream. All of them are eating some variation of food to satisfy
hunger. The specific satisfier that an individual looks for defines the want. Therefore, wants are
specific satisfiers of some need. Individual wants are shaped by culture, life style, and personality.
For example, an individual buys a Mercedes as a status symbol and a tribal chief in some remote
area of Amazon rain forests sticks an eagle feather in his headgear as status symbol.
Demand
• To satisfy any given need, different people may express a variety of
wants and the total number of wants for all sorts of needs is
apparently unlimited. Just because people have needs and wants
is not enough to affect exchanges. The resources to acquire the
products are limited for every individual and hence people want to
buy products that they believe will provide the maximum value
and satisfaction for their money. When the want is backed by
purchasing power, it is called the demand and marketers are
particularly interested in demand rather than just needs or wants.
Marketing aims at identifying human and social needs and
endeavours to satisfy them by creating, communicating, and
delivering products and services.
Demand
• People buy products only because these are seen as means to
satisfy certain needs or wants. The concept of product is broad in
its meaning and includes everything that is capable of satisfying a
need and can be a physical product, service, idea, person, place,
or organisation. Marketers make a sensible distinction between
goods and services to place them in right perspective. Physical
products are tangible and services are intangible. People acquire
products or buy the services not so much for the sake of being the
owner or consumer, but to derive the benefits they provide
CUSTOMER VALUE AND SATISFACTION

• The sources that build customer expectations include experience with products,
friends, family members, neighbours, associates, consumer reports, and marketing
communications. Customer value is the ratio of perceived benefits and costs that
the customer has to incur in acquiring that product or service. The emphasis here
is on customers’ perceptions and not the accurate, objective evaluation of value
and costs, as customers often do not judge values and costs accurately. Value
indicates that a certain product or service is perceived as having the kinds and
amounts of benefits (economic, functional, and emotional) that customers expect
from that product or service at a certain cost (monetary costs, time costs, psychic,
and energy costs). Thus, value is primarily determined by a combination of
quality, service, and cost. The value to the customer can be made favourable
either by increasing the total benefits at the same cost, maintaining the same
benefit level and decreasing the cost, or increasing both the benefits and the costs,
but the proportion of benefits is higher than the increase in costs.
CUSTOMER VALUE AND SATISFACTION

marketing is demand management and the demand for products and services often
requires different approaches for a variety of reasons.