Marketing Marketing 1O1

The Definition:

As a safe starting point, let’s take a look at what The Bible (of marketing) has to say.

Philip Kotler (Marketing Management): Marketing is a societal process/ by which individuals and groups/ obtain what they need and want/ through creating, offering, and exchanging/ products and services/ of value/ freely with others.

1. Marketing is a societal process/

The existence and involvement of a society, where a group of people share a common economic, social and industrial infrastructure is crucial to marketing.

2014: Crowd of supporters at BJP PM Candidate(then), Narendra Modi's rally. Marketing is indeed a societal process.

2018: Nike customers burning Nike products as a form of protest. Nike had announced NFL player, Colin Kaepernick as their brand ambassador. Colin was the first NFL player to kneel during the USA National Anthem as a protest against racism.

2. /by which individuals and groups/

Individuals and groups are the soul of the market to whom, by whom and for whom marketing is done.

Individuals and groups: Customers(buyers), Consumers(buyers), Companies(sellers)

How many ways are there to buy a Coke? Company: The Coca-Cola Company. Customer: Shop. Consumer: You, I.

Seriously, how many ways are there to buy a Coke? Company: The Coca-Cola Company. Customer: McDonald's. Coca-Cola has an entire division dedicated to manage its biggest restaurant customer, McDonald's.

“When you’d ask Coca-Cola in what countries it had the biggest sales, it would say something like the United States, Japan, Germany and McDonald’s — and in that order.” – Dick Starmann, VP of Communications, McDonald’s Corp. The relationship and understanding between these two companies is nothing short of a marketing miracle. As McDonald’s expanded globally, they used the offices of Coca-Cola as a base of operations in the initial stages. Coca-Cola usually supplies the Coke syrup to their customers in plastic bags, but for McDonald’s they have special stainless-steel cans made to ensure top quality.

The reason why you crave for a Burger-Fries-Coke is because there are millions of marketing dollars spent to ensure that you do.

3. /obtain what they need and want/

Marketing enables companies to identify and serve already existing needs by influencing wants of the consumer.

I need food. I want a Dominos pizza.

I need food. I want a Dosa from the street vendor.

I need food. I want “X”.

Almost every company/individual/entity selling food has the aim of being that “X”.

You need food? You want Snickers.

4. /through creating, offering, and exchanging/

Creating (research, identify, create), offering (make consumer aware, make product available), exchange (sell).

Creating: Research, Identify

Offering 1: Create identified solution and offer to consumer

Offering 2.1: Make consumer aware

Offering 2.2: Make product available

Exchanging: Selling the product

5. /of value/

Value = Perceived Benefits / Costs

Water in a desert at $10 vs Sweater in a desert at $1

Value = Perceived Benefits / Cost. How much will you pay? Rs. 10 for Balaji (45 gms), Rs. 20 for Lays (52 gms) or Rs. 100 for Pringles (110 gms)

Benefits perceived differ from person to person. For me, it is the quantity of chips, for you it may be the taste or quality.

6. /freely with others.

Voluntary economic activity (buying and selling) with limited control of authorities (government).

I can open a shop to sell chips to you but I can’t sell drugs to you.

A paan vendor (tapri) with a Government license, selling cigarettes

The same Government mandating cigarette manufacturers to print a warning on the cigarette packs

There are hundreds of versions and probably millions of interpretations of the marketing definition. What you read is just one of them, it may be naive and academic, owing to the experience of its author. It definitely isn’t an exhaustive account and a full stop to the discussion. At its best, it’s a start to a healthy conversation.

I would love to hear from you, what your views are about the same. Please feel free to pitch in and comment about your understanding of marketing and how marketing is defined in your organization.