Marketing Definitions and Evolution

Marketing Definition

• Marketing involves business activities that direct the flow of goods and services from producers to consumers
• The American Marketing Association (AMA) defined marketing in 1935 as focusing on moving goods and services from manufacturers to consumers
• A more comprehensive marketing definition involves planning and executing the conception, pricing, promotion, and distribution of goods, ideas, and services to create exchanges that satisfy organizational demands

Marketing Evolution (AMA Definitions)

• 1985 broadened the definition to include planning and executing all elements of the marketing mix to satisfy individual and organizational goals
• 2004 stated that marketing includes creating, communicating, and delivering value to customers and managing customer relationships
• 2007 and 2017 versions state that marketing involves creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society

Dr. Philip Kotler's Definition

• Dr. Philip Kotler defines marketing as the science and art of exploring, creating, and delivering value to satisfy target market needs at a profit
• This definition includes exploring the market, quantifying its potential, and designing appropriate products and services

Marketing Research

• This function links the consumer, customer, and public to the marketer, using information for identifying opportunities, generating marketing actions, and monitoring performance
• It involves specifying information needs, designing collection methods, analyzing results, and communicating findings

Brand

• A brand is a name, term, design, or symbol that distinguishes a seller's goods or services from others

Core Marketing Concepts

• Needs are basic human requirements like food and shelter
• Wants are specific satisfiers of needs, like wanting a curry when hungry
• Demands are wants for specific products, backed by the ability to pay
• A product is viewed as a bundle of benefits, which consumers buy based on perceived value
• Value proposition refers to the set of benefits a company offers to satisfy customer needs

Intangible to Tangible value

• An intangible value proposition is made tangible by an offering that combines products, services, information, and experiences
• Value reflects the sum of perceived tangible and intangible benefits and costs to customers

Customer Value Triad ("QSP")

• Combination of Quality, service, and price
• Marketing is creating, delivering, and monitoring customer value
• Satisfaction is a person's judgment of a product's performance in relation to their expectations

What Can Be Marketed?

• Goods, physical items constituting most countries' production and marketing effort
• Services, activities that focus on the economy's production of services
• Events, time-based events like major trade shows and company anniversaries

Experience

• Orchestrating several services and goods like theme parks

Marketing People

• Celebrity marketing involving artists, musicians, and professionals

Physical Properties

• Cities, states, and regions compete to attract tourists

Properties

• Intangible rights of ownership like real estate or stocks

Organizations

• Efforts to build a strong image, where the
• Tata Group promotes its ethical quality

Information

• What books, schools and universities produce and sell

Ideas

• Basic idea or benefit included in every market offering

Marketing Environment

• Divided into external and internal factors
• External concerned with events outside the organization
• Internal concerned with factors inside the organization
• Both environments are of great importance

Marketing environment management approches

• A reactive manager adjusts marketing plans to fit environmental changes
• A proactive manager seeks to influence the environment to control or shape it

4 P's of Marketing

• Product represents any mix of tangible and intangible features, functions, benefits, and uses
• Price represents the amount a customer must pay to acquire a product or service

More P's

• Place involves marketing and carrying products to consumers, representing market coverage
• Promotion includes tactics like coupons to encourage short-term purchase and influence quantity

7 P's of Marketing

• People encompass all service-related individuals, and their demeanor impacts the customer experience
• Process includes by the service is delivered, which is, again, part of what the consumer is paying for

Physical Evidence

• Almost all services contain some physical elements

Holistic Marketing Management

• The holistic marketing concept is based on development, design, and implementation of interdependent marketing activities and programs
• It recognizes that "everything matters" and a broad, integrated perspective is necessary

Relationship marketing

• Builds mutually satisfying long-term relationships with key constituents to earn and retain their business

Internal Marketing

• Ensures everyone in the organization embraces the most appropriate marketing principles
• Internal marketing involves hiring, training, and employee motivation

Integrated Marketing

• Integrated marketing creates activities that communicate and deliver value for consumers
• Key themes: (1) marketing activities create value, and (2) marketers should design each activity with all activities in mind

Holistic Marketing Orientation

• Encompasses value exploration, value creation, and value delivery

Value Chain

• Michael Porter of Harvard proposed the value chain to enhance customer creation
• Every stage design, produce, marketing and delivery affect value creation

Value Chain Activities Categories

• Primary Activities which are inbound logistics, operations, outbound logistics
• Supports include procurement, technology development, human resource management and firm infrastructure

Value creators

• Businesses examine it's costs and benchmark against the best on the market

Industry Life Cycle

• Stages are Development, Growth, Shakeout, Maturity, and Decline

Product Life Cycle

• Stages: Introduction, Growth, Maturity, and Decline, each containing unique sales, profits and customer metrics

Steps in Market Segmentation

• A strategic process (STP) identifying ideal customers, choosing groups to serve to create unique product positions

Market Segmentation

• This is dividing a total group into segments with behaviors that may need separate market mixes

Types of Market Segmentation

• Geographical segmentation
• Demographic segmentation
• Psychographic segmentation
• Behavioral segmentation

Targeting

• This is a market consisting of buyers sharing needs or characteristics for the organization to serve
• Segment size and growth assess the value

Market Segments Attributes

• Competition strength
• Substitute Products availabilty
• Buyer Power
• Supplier Power
• Company resources and objectives

Selecting a Market

• Undifferentiated like Coca-cola
• Differentiated like Tata motors
• Concentrated like Rolex watches
• Micro-Marketing like big bazaars customizing for festivals

Targeting Strategy

• Company resources and life Cycle
• Variability across markets and competitors
• Do only socially responsible targeting

Product strategy and Selection

• The position which the products occupy
• Involves differentiating a product in the customers mind
• Position Maps are commonly used

Possible Advantages

• Be aware of what competitors may be doing
• Base differentiations on products or Services
• Promote Unique benefits
• A criteria of differences to promote;
  • Important
  • Distinctive
  • Superior
  • Communicable

Brand positioning

• A value position representing the brands value
  • possible, more for more ( Mercedes example )
  • Can be Samsung for same ( features of those of competitors)
  • Even less ( similar service, lower price like Jio )
  • Positions needing monitoring after launch

Brand Value Chain

• It is a journey from brand to the customers and final financial performance

Snapshots to understand value creation

• The company brand offers a structure
• Its important to indicate specific areas who needs improvement

Business model

• A outline of how a company intends to plan to make money

Elements Of business model

• What product will be available
• Market strategies, costs
• Profit and returns
• Its also include, key metrics, resources like intellectual property

Types of business models

• Subscription payment over period of time
• Bundling multiple products

Razor blades

• Making large margins on inexpensive addons

Freemium model

• Providing tool to access freely while user pays to access feature and subscribe

Types of business models

• Product to service like Zipcar, customers achieve results without having to own equipment to deliver it

Types of Leasing Models

• Use an asset for periodic Fee with manufacturing, medical equimpment companies

Crowd-sourcing Model

• Gain input and information like Wikipedia

One for One Model

• For every item made, one product gets made and donated

Franchise Model

• Purchasing estabilished business blueprint

Distribution Model

• Manufacture and supply goods into the market

Retailer Model

• Supply chain by purchasing good and then cover expenses with the revenue

Model

• Is how the product benefits the customer
• Can the company generate revenue successfully with the model

What is Design thinking?

• Way to design challenges and take on problems and applying empathy

Design tool kit to handle problems

• Foster exploration
• Suggest designers should do more than design
• Strategic tool in thinking

Way of human design

• Integrating needs of people in the way that designers do for product planning to achieve success in business.

Process flow for design thinking

• Learn the customers to generate solutions
• Prototyping

Linking design to Challenges

• Using growth techniques for strategy
• Storytelling for brand management

Value Innovation

• Actions favoralbly affect both cost and value
• Factors company eliminates and reduces
• ELIMINATE REDUCE RAISE CREATE
• Over time cost is reduced due to scale
• Sales volumes is what generates

Blue Ocean Strategy

• Is the simultaneous pursuit of differentiating at low cost to create new market
• It is creating incontested market space

Red Oceans Vs Blue Oceans

• Red oceans are known today

Blue Oceans

• The oceans that dont exist

Red Vs Oceans

• red oceans compete in existing market, where blue create completely new
• red beat vs blue make compettition irrelevant

Red Oceans Exploits for existing demand

• Blue oceans makes new
• The reds make values costs for tradfe off
• Blues break the trade off

Blue Ocean strategy rules

• Reach beyond new demand
• Build strategy
• Focus big icture
• Sequence right

Strategy canvas tool

• is the diagnostic strategy tool to compete and offer well abovfe the factor of industry

Cirque du Soleil's strategy

• eliminated animal, clowns and focus onto theatre elements

Four actions framework

• What is taken for granted - needs to be elimated