Marketing – Session #1 (05/24/2008)

Attendees : – 195

Course :- POM (Principles of Marketing Management)

Professor :- Prof.Venugopal

Coverage :- Definition of Marketing, Marketing Vs Sales, Types (Product vs Customer), Definition of Need, Hierarchy of Needs, Maslow Needs, Needs Vs Market/Value.

Summary :-

Definition of Marketing – According to Wikipedia, Marketing is an ongoing process of planning and executing of the marketing mix (Product, Price, Place, Promotion) of products, services or ideas to create exchange between individuals and organizations.

In a way it is driven by the needs of the Customer/Market. Good Marketing needs to create a value proposition for the customer. 

One of the key differences between Marketing and Sales is Marketing is focussed on long term goals, and creation of a broader base (Branding, Loyalty, Repeat business), while Sales is purely an execution of a short term goal and transaction specific.

Marketing can be categorized as Product Centric and Customer Centric.

Product Centric – Product is given/developed and then marketed to the customer. Examples of these would be Marketing of Ideas (Env Protection). Product-Market FIT.

Customer Centric – Need based, Analyze and Establish Market and then design/develop/Market Product. e.g. Tata Nano, Two Wheelers in India. Market – Product FIT.

Satisfying the need is the core concept of Marketing. According to Maslow, there is a hierarchy of Needs. More of a psychology concept than a marketing concept, though.

The third level may be classified as Individual as well as Social needs. Individual needs are characterized by Convenience, Comforts and Relaxation, while Social needs have a couple of levels (Social Acceptance – Basic to Social Esteem – Ego/Envy).

Social Needs may conflict with Individual needs and based on the context a Social need may supercede Individual Need (e.g. Need to wear a Tie/Suit in Indian Context, not comfortable but a Social Acceptance/Ego need)

Rebel Needs help marketing Individual needs as social needs. These are needs typically considered unacceptable in the society (social need) at the point in time/context. e.g. Liquor, Cigarettes, Fashion Products.