GD-PI Material

Department of Management
Studies, IIT Delhi
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What Is Marketing?
Marketing is the process by which companies create value
for customers and build strong customer relationships in
order to capture value from customers in return.
Perhaps the simplest definition : Marketing is managing
profitable customer relationships
Goals:
Attract new customers by promising superior value.
Keep and grow current customers by delivering satisfaction.
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Marketing Defined
Marketing is the activity, set of instructions, and
processes for creating, communicating, delivering,
and exchanging offerings that have value for
customers, clients, partners, and society at large.

OLD view of
marketing:

NEW view of
marketing:

Making a sale
telling and selling

Satisfying
customer needs
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The Marketing Process

A simple
model of the
marketing
process:

Understand
the
marketplace
and customer
needs and
wants

Design a
customerdriven
marketing
strategy

Construct an
integrated
marketing
program that
delivers
superior
value

Build
profitable
relationships
and create
customer
delight

Capture
value from
customers to
create profits
and customer
quality

Needs, Wants, and Demands

Need: State of felt deprivation including physical, social, and
individual needs.
Physical needs: Food, clothing, shelter, safety
Social needs: Belonging, affection
Individual needs: Learning, knowledge, self-expression

Want: Form that a human need takes, as shaped by culture

and individual personality.
Wants + Buying Power = Demand
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Need/ Want Fulfillment

Needs & wants are fulfilled through a Marketing Offering:

Products:
Persons, places, organizations, information, ideas.

Services:
Activity or benefit offered for sale that is essentially intangible and does
not result in ownership.

Experiences:
Consumers live the offering.
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The Marketing Concept

A marketing management
philosophy that holds that
achieving organizational goals
depends on knowing the needs
and wants of target markets
and delivering the desired
satisfaction better than
competitors.
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The Marketing Mix

The set of controllable, tactical marketing tools that the firm
blends to produce the response it wants in the target market.

Product

Variety, features, brand name, quality,

design, packaging, and services

Price

List price, discounts, allowances, payment

period, and credit terms

Place

Distribution channels, coverage, logistics,

locations, transportation, assortments, and
inventory

Promotion

Advertising, sales promotion, public

relations, and personal selling

Customer-Driven Marketing Strategy

To be successful, firms must engage in:

Segmentation

Targeting

Differentiation

Positioning

Market Segmentation and Targeting

The process of dividing a market into distinct
groups of buyers with different needs,
characteristics, or behavior who might require
Segmentation:
separate products of marketing programs.

Targeting:

Involves evaluating each market segments

attractiveness and selecting one or more
segments to enter.

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Differentiation and Positioning

Differentiation:

Positioning:

Creating superior customer value by actually

differentiating the market offering.

Arranging for a product to occupy a clear,

distinctive, and desirable place relative to
competing products in the minds of target
consumers.

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admissions@dmsiitd.org

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