Marketing Management Lecture 1

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Questions and Answers

What is the role of technology in delivering products?

It is changing the way products are delivered. (correct)

It only affects communication with customers.

It has no impact on product delivery.

It simplifies inventory management.

User-generated communication is becoming less important than company-originated communication.

False

What is exchanged in the marketing process?

Value between the seller and buyer.

What is a market space?

Both A and B. Signup and view all the answers

The buyer's perception of cost is irrelevant in the marketing exchange.

False Signup and view all the answers

What should the outcome of an exchange process ideally be?

At least two parties are better off or not worse than before. Signup and view all the answers

What system existed before monetary exchanges?

The barter system. Signup and view all the answers

What is the title of the course discussed?

Marketing Management – 1 Signup and view all the answers

Who are the instructors for this course?

Prof. Jayanta Chatterjee and Dr. Shashi Shekhar Mishra Signup and view all the answers

Marketing is defined as a social process by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with __________.

others Signup and view all the answers

Which of the following is NOT a condition for the exchange process to happen?

Both parties must be from the same country Signup and view all the answers

What is the function of value in marketing?

Value is a function of benefit and cost. Signup and view all the answers

Which type of benefits are included in the marketing context?

Both A and B Signup and view all the answers

What does perceived value refer to?

Perceived value refers to the customer's perception of the value rather than the actual value. Signup and view all the answers

Which of the following best describes the marketing function as stated by the American Marketing Association?

An organizational function for managing customer relationships Signup and view all the answers

What significant shift is occurring in marketing according to the discussion?

The focus is shifting towards co-creation and involving customers from the beginning of the marketing process. Signup and view all the answers

Study Notes

Introduction to Marketing

Marketing is often misunderstood as merely selling or advertising; it encompasses much more.
The session explores marketing's definitions, common myths, and two dominant perspectives: as a social exchange process and as an organizational function.

Marketing defined as a social process where individuals/groups fulfill needs through creating, offering, and exchanging value.
Key conditions for effective marketing exchange:
- Existence of two parties.
- Each party holds something valuable to the other.
- Capability for communication and delivery between parties.
- Freedom to accept or reject offers.
- Mutual belief in the desirability of the exchange.

Concept of Value

Value is central to marketing, represented as a function of benefits minus costs.
Perceived value is crucial, influencing consumer decisions over actual value.
Benefits can be functional (e.g., transportation from a car) or emotional (e.g., status symbol).
Costs can be categorized as:
- Monetary costs: Direct financial expenditures.
- Time costs: Time invested in acquiring a product.
- Energy costs: Physical effort involved in the process.
- Psychic costs: Emotional or mental toll associated with the purchase.

Marketing as an Organizational Function

Defined as a process for creating, communicating, and delivering value to customers while managing relationships.
Activities in this function are categorized into:
- Creating value by understanding customer needs and designing products.
- Communicating value by informing customers about offerings.
- Delivering value by ensuring products are accessible at convenient locations.

Shifts in Marketing Focus

Increasing emphasis on involving customers early in the product development process, also known as co-creation.
Notable companies succeed by innovating based on customer insights and latent needs.
Traditional views of marketing focusing heavily on communication and delivery are shifting toward deeper customer engagement and relationship building.

Changing Dynamics in Marketing

Marketing involves behavioral and psychological aspects, significantly impacted by technology and data analytics.
User-generated content and feedback are becoming prominent in shifting market communication.
Delivery processes are evolving, influenced by technological advancements and changing consumer behaviors.

Marketing System Overview

Basic marketing system consists of sellers (industry) and buyers (market) engaging in reciprocal exchanges.
Beyond physical goods and monetary transactions, there is significant communication and information flow between buyers and sellers, enriching the marketing system's dynamics.### Marketing and Exchange
Marketing is fundamentally a process involving the exchange of value between sellers and buyers.
The marketplace is defined as the location where buyers and sellers interact, which can be either physical (e.g., malls) or online (e.g., websites).
Online marketplaces are commonly referred to as market spaces.

Buyer Perspective

Buyers seek value in an exchange, which they perceive against a cost.
The willingness to exchange occurs when perceived benefits exceed cumulative costs.
Successful exchanges result in both parties feeling better off than before or at least not worse off.

Historical Context of Marketing

Marketing has evolved from traditional barter systems, where physical goods and services were exchanged directly for other goods and services, to current monetary systems.
This evolution illustrates the fundamental nature of marketing as a means to facilitate exchanges before the concept of money was introduced.

Acknowledgments

Contributions highlighted from the Ministry of Human Resource Development and the NPTEL Team, showcasing teamwork in educational production.

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Description

Explore the fundamentals of marketing in this introductory lecture from the Marketing Management course at IIT Kanpur. Prof. Jayanta Chatterjee and Dr. Shashi provide insights that set the stage for understanding marketing concepts and strategies. Ideal for students looking to enhance their knowledge in marketing.

Marketing Management Lecture 1

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Podcast

Questions and Answers

What is the role of technology in delivering products?

User-generated communication is becoming less important than company-originated communication.