I will be using the book of Kotler and Armstrong for my lectures and I will be recording my lectures around this book. I'm using 17th edition which is actually a global edition but it doesn't matter if you have 18 you have say 16 or 15th or 14th edition. The only difference is that chapters are pretty much the same, the examples are different, which Kotler and Armstrong have used. And also if you are in some Asian country or South Asian country and you're using a book which is surrounding Asian context or South Asian context still again it doesn't matter these lectures apply to you and my objective is that we go step by step topic by topic and I'll give you my perspective on these topics the way I teach my students in my class so let's start with the chapter number one in your book also and in your slides it is called creating and capturing customer value the first topic in this chapter is the definition of marketing Now before we jump onto that and we look at what Kotler talks about in terms of marketing definition, I'll ask you a question here.
Have you ever heard this term, I work as a marketeer, or maybe your cousin or your friend, when you ask them, what do you do? They say, I work in the marketing world. What exactly does that mean?
Think about it for a second. When someone tells you that they work as a marketeer or they work in a marketing world, what is the first thing that comes into your mind? The general perception about when someone tells you that is that maybe they do direct mail offers.
You know, at times you receive these brochures, these pamphlets in your mail. That's actually called direct mail offers. So maybe the general perception of most of the people is that when someone tells you that I work in a marketing wind, they are making these direct mail offers, pamphlets, whole day, and they're making these direct mail offers.
mailing and disturbing people in your area or they do telesales calls they sit on their telephone whole day they call people they tell them that do you want to buy electricity packages or do you want to buy I don't know water packages do you want to buy a laptop on installments do you want to buy a car on installments or I've seen your credit history do you want to buy a credit card service from our bank and that's pretty much what the marketing people do Or maybe the third thing is that they sell via a small counter or a kiosk outside a big store. So they have this small area within a shopping mall on which they're standing and they're selling makeups maybe. That's what they mean when they tell you that I work in the marketing wing. Or they send you email offers.
Or they create brochures and they circulate brochures in the most busy downtown area. That's what they mean. That's what maybe marketing is.
And most of us, we actually say that selling and advertising is marketing. And if you're in selling or if you're doing some advertising job, that's what marketing is pretty much all about. To me as a professor, to me as a marketing professional, I say that selling and advertising is just one part or maybe in other words, it's just a tip of marketing. Just a tip of a big mountain, which I call marketing. So let's take for.
a second and let's look what Kotler talks about. So this is marketing to his point of view that it starts from understanding the marketplace and customer needs and wants. So if we go backwards, there are needs of customers and then there are wants. So need, I need this particular thing, I want this particular thing. And all of that is happening in a marketplace.
The marketplace is an area where customers, they meet the needs of the the suppliers or they meet those firms who are providing solution for their problems. And after that is happening, after you have understood the marketplace and customer needs and wants, the next step is that you develop a customer-driven, look at this word and remember this word, I will be talking about this word a lot in my future lectures, you design a customer-driven marketing strategy. The next thing is, this is the third step in Kotler's view.
Now, where you develop an integrated marketing program after the strategy you have an operational program which you have to develop and that's where the four piece comes into play we'll talk about this in the future chapters also and the last step to him is that once that is done it builds a professional relationship with your customer and customer is happy you are happy you've got your money you've got a relationship customer got a good product and customer is very happy with the product and that's how the whole marketing works As a student of principles of marketing I want you to stop right here this is good all of what Kotler is talking about this is very good but you will be taking another course of marketing management in the future and I want to leave this part out for that particular course otherwise you will be confused that what exactly is the difference between principles of marketing and marketing management according to Kotler the marketing is a process and again remember these words I will talk about it just in a while Marketing is a process by which companies, in other words, organizations or firms, Apple is a firm, Google is a firm. They create value for customers and build strong customer relationships to capture value from customers in return. Yeah, it's good. It's a good definition.
I won't say that's not a good definition. It's difficult. Well, it's not that difficult. But for those students who are not from English speaking countries. let's break it down so marketing what is it it is a process so something is going on it's like a system there are inputs there are outputs and there are throughputs so it's actually a process maybe it's a circular process but it is a process by which organizations or companies or firms they create value again simple thing same thing which was in kotler definition for customers and for themselves so it's a process first Firms, they create value for the customers and for themselves.
Let's break it down further. So it is a process. All of us, we are now agreeing to this very point. Through which or by which firms provide solutions.
Now, I have changed that value and I've broken it down to solutions. What do I mean by solutions here? Now, solution can be in a form of a mobile phone.
So I want to make a YouTube video. my mobile phone is very good it records good videos but at the end of the day there's a new phone out there and it has a better camera so I want to have a solution to my problem that I want to record 4k videos I want a new phone and there is a company which comes up with a solution of having a 4k video capability you go out you buy that very phone and that is addressing the problem which you have and that is the next step so firms they provide solution to customer problems and those problems are in the form of need want or demand that's my next topic in which we will talk about these three things in a bit of detail so you have a solution of a customer problem and through which customer pays back it is in the form of financial benefits and relationships are built this is a very basic form of marketing definition it doesn't matter what the what corporate is talking about will make McCarthy is talking about at the moment and what the industry is talking about, this is the basic definition of marketing. You have a company, you provide solution to customer problems, the customer pays you back, you have financial benefits out of it and through which your relationship is being built with that very customer. So if you are an Apple user, you would find yourself in a situation that even though you know that at times Apple mobile phones are not as good.
Samsung phones for example but still at the end of the day you buy an Apple phone and spend a lot of money on it because you're loyal to that company so even though you're paying financial benefits to that organization but there's a relationship which you don't know but you have it with that company you're loyal even though they're not doing anything special for you they're just making a product and selling you at a very high price but still there's a relationship marketing tells company what they should do develop and that's one of the basic rule and basic task of marketing department they do certain things for example research they collect intelligence and they tell organization that they usually develop this very thing marketing people tell engineering department to develop the product based on what customer want or they need once the product developed the inform customers hey look we have developed this product for you what happens next Next after they tell customers, tell me, I'm waiting for your answer. Well customers they go ahead and buy, they stand in lines, they buy that product, Sony PlayStation 5, at the moment while I'm recording this video, this product is going to hit the market very soon. You will see that there will be a lot of people standing in lines to buy this product. Same thing goes for Apple, and then there are so many other brands. that when they launch a product there are customers who are standing in lines it doesn't matter if it's raining or if it's snowing out there there are standing and they go ahead and they buy the product and they spend money and that's this whole slide summarizes the the whole task of marketing department in an organization Now, if you remember these five core concepts, and they're onwards, I will ask you two more questions and we will finish up this topic very quickly.
If you remember these five concepts, you will know whole marketing. First of all, you need to know customer needs, customer wants and customer demands. And if you have a basic idea of what exactly these things are, you will become a good marketeer. Second thing is market offering. Now you can ask me this question that What exactly do you mean by market offerings?
It's a very fancy word. It just simply means solutions, simply means product or service. Airline companies, they have market offerings in a form of different tier of airline ticket. There's a business class, there's an economy class, there's a first class.
So that's actually called market offerings. So they have a product which they offer to the market. Value and satisfaction.
Value actually means... that the market offering of that particular company is providing solution to customer needs wants and demands and customer in turn is becoming satisfied and once customer satisfied what happens exchange take place in a marketplace now market so there are two people or two entities there's a firm and then there's a customer so firm has developed something which the customer likes what happens there's an exchange which is happening here and once exchanges have has happened customer satisfied then a relationship is being built so these are the five core concepts of marketing which everyone doesn't matter you are a student of marketing or not but you have to understand these five core concepts otherwise you will not be able to understand where marketing is and in the end of the day your business will suffer and i always say marketing is a heart of every business now it is a heart of everything which you do you have a you like doing makeups you have created a channel on Facebook or on YouTube what exactly you're going to do of course you're going to tell people that how to do makeup but in order to attract traffic towards the channel you need to come up you need to study these five things otherwise people will not come to your channel and will not listen to your video so I have a question for you everyone who is listening to me out there and listen very carefully so marketing is what is it same as advertising and sales of course I've told you in one of my slides that is the correct answer or the second one is it is not used by small corporations that is true it is only for the big corporations not certainly for small corporations why do they need marketing it's all that fancy verb which is restricted to big organizations because they've got a lot of money it's about satisfying customer needs okay maybe that's an answer and it is about making a profit of course it is only about making a profit so what exactly is the answer in your view it is about satisfying customer needs if you are satisfying customer needs all of these three things are happening second question and the last question we have to finish off my topic marketing marketing is part of manufacturing it's part of finance department well maybe traditionally was it part of finance department organizations it is about managing customer relationships or it is about sales promotion what is the answer in my view it is about managing customer relationships again you manage customer relationships and you will manage sales promotion in most of the organizations sales department is different marketing department is different