According to Kotler, “Marketing is a societal process by which individuals and groups obtain what they need and want by creating, offering, and freely exchanging products and services of value with others.”
Marketing is the societal process of identifying and satisfying customers’ needs profitably.
Marketing is a societal process:
Pooja is a homemaker living in the suburbs with her husband and children. Being a devoted homemaker, she is well aware of all the needs, wants, likes, and dislikes of her family. Based on all this and the availability of fresh products, she decides to purchase only certain items on certain days.
On Mondays, she purchases fresh vegetables like onions and potatoes from the market, near her house. She also observes other vendors selling vegetables and fruits. On Wednesdays, she buys fresh fruits like apples, oranges, and grapes from the same store. On Fridays, she buys fresh greens like coriander, fenugreek, and spinach from the same store in that market. While doing so, she always interacts with the vegetable vendor and bargains with him to strike a good deal. Finally, she walks back home, content with her purchase.
Generally, vegetable vendors wake up early morning, around 5 a.m. or 6 a.m. to go to the wholesale market. The vendor decides what he wants to buy for the day. It probably depends upon a host of factors, such as the cost of vegetables, the seasonality, the usual and the unusual demand of his customers, etc. Then, he goes to his known vendors or farmers, negotiates and buys the items, loads them in his vehicle, and brings them to his store. Subsequently, he arranges the things in his store and waits for the customers.
Once the customer starts walking in, he needs to be attentive all the time. He needs to answer queries, provide the customers with the vegetables that they need, put the purchased items in the shopping bag, and receive the money. He also needs to maintain the cleanliness of his store, keep an eye on the stock, and replenish it as and when it finishes.
At the end of the day, he would check his cash register, gather his returns for the day, close the shop and retire for the day.
We saw the purchasing behavior of Puja, the offering by the vegetable vendor, and the interaction between them and this happens in every society, day in and day out. It includes many activities. Hence, it is a process, clearly, and it happens within society. Hence we say that marketing is a societal process where the marketer satisfies the consumption requirements of the consumers inside the society and hence the starting point, which is the societal process.
Marketing is Identifying NEEDS :
Let us say Your need is food: How hunger can be satisfied?:
Restaurant: You have a menu. There are different types of food: do these people order the same food? No! By the way, if you order your food without looking at the right-hand side of the menu you are truly RICH.
South Indian: masala dosa, idly sambhar, etc.
East Indian: rice with fish
North Indian: chapatti, paratha, rajma rice, chole rice, etc,
Western Indians: wada paw, dhokla, etc.
A child, a teenager, a middle age, and an old age person’s choices to satisfy their needs vary:
- According to the culture
- According to experience
- According to age
Need hierarchy:
Maslow’s hierarchy of needs is a theory in psychology proposed by Abraham Maslow in his 1943 paper “A Theory of Human Motivation” in Psychological Review. He wanted to understand what motivates people. He made the conclusion that some needs have precedence over others.
Which needs do you satisfy through your offerings?
Matthew 6:33 “But seek first the kingdom of God and his righteousness, and all these things will be added to you.” There is a criticism of these need hierarchies however one thing is sure, the needs do exist.
Marketing is satisfying customers’ needs:
There are three principles through which you satisfy customers’ needs:
- The Principle of value creation
- The Principle of differentiation
- The Principle of STP (segmentation Targeting and positioning)
The first Principle is the Principle of customer value creation:
पिता ने बेटे से कहा, “तुमने बहुत अच्छे नंबरों से ग्रेजुएशन पूरी की है। अब क्यूंकि तुम नौकरी पाने के लिए प्रयास कर रहे हो , मैं तुमको यह कार उपहार स्वरुप भेंट करना चाहता हूँ , यह कार मैंने कई साल पहले हासिल की थी, यह बहुत पुरानी है। इसे कार डीलर के पास ले जाओ और उन्हें बताओ कि तुम इसे बेचना चाहते हो। देखो वे तुम्हें कितना पैसा देने का प्रस्ताव रखते हैं।”
बेटा कार को डीलर के पास ले गया, पिता के पास लौटा और बोला, “उन्होंने 60,000 रूपए की पेशकश की है क्योंकि कार बहुत पुरानी है।” पिता ने कहा, “ठीक है, अब इसे कबाड़ी की दुकान पर ले जाओ।”
बेटा कबाड़ी की दुकान पर गया, पिता के पास लौटा और बोला, “कबाड़ी की दुकान वाले ने सिर्फ 6000 रूपए की पेशकश की, क्योंकि कार बहुत पुरानी है।”
पिता ने बेटे से कहा कि कार को एक क्लब ले जाए जहां विशिष्ट कारें रखी जाती हैं।
बेटा कार को एक क्लब ले गया, वापस लौटा और उत्साह के साथ बोला, “क्लब के कुछ लोगों ने इसके लिए 60 लाख रूपए तक की पेशकश की है! क्योंकि यह निसान स्काईलाइन आर34 है, एक प्रतिष्ठित कार, और कई लोग इसकी मांग करते हैं।”
Marketing creates value by identifying needs that are not yet satisfied or which are not adequately satisfied. What value could I provide to satisfy the need? If you want to provide something to a customer, to a buyer, and get them to buy from you rather than the competitors. You need to give them real, genuine customer value.
You get a mobile sim card at Rs 50 in the market, however, you get the same sim card from a numerologist for more than 5100 or more. The numerologists create a value of a sim card stating that the mobile number can change your destiny.
God gave a tree And he hid the chairs, table, bed, and many more things in it.
That is what we do with gold, silver, and water.
Bisley?
Can you think of selling water? Can you think of selling air and sunlight?
People buy things to solve pain or to gain pleasure. What solution do you provide your customers or what pleasure do you give them?
Dr. Robert Cialdini states 7 principles to create value:
- THE PRINCIPLE OF LIKING: People like those who like them
- THE PRINCIPLE OF RECIPROCITY: People repay in kind.
- THE PRINCIPLE OF SOCIAL PROOF: People follow the lead of similar others.
- THE PRINCIPLE OF CONSISTENCY: People fulfill written, public, and voluntary commitments.
- THE PRINCIPLE OF AUTHORITY: People defer to experts who provide shortcuts to decisions requiring specialized information.
- THE PRINCIPLE OF SCARCITY: People value what’s scarce.
- THE PRINCIPLE OF UNITY: People value what belongs to them
The second principle is the principle of differentiation:
You have to provide customer value to that customer, what the customer wants, but you have to do it better than the competitors. So you have to differentiate your offering. That is why brand plays an important role in marketing.
You and your offering must be unique:
You must become a person of value and they will pay for you. Make yourself valuable and people will pay for you. Make yourself like gold. The best in your field. How much you are worth to that person? Make yourself a person of value. If someone has to think about something that reminds them of you. What would it be? if they never think about you that means you never made yourself valuable. You become a jack of all trades and master of none.
How do you identify these people:
Saina mirza…..
Michael Jorden
Bill gates
Sachin Tendulkar
Bharat Parikh
Become so good in your area so people will not ignore you. The world is full of common people, go home and carve out a niche for yourself. When you think of these products, what name comes immediately to your mind:
Think of Mobile :
Think of computer :
Think of investment :
Think of cricket:
Think of life insurance agents:
How about you? what is your gift? Why people will remember You? If someone has to think about something that reminds them of you. What would it be?
The third principle is the principle of STP (Segmentation, Targeting, and Positioning):
Segmentation:
When you are in a customer focus market you can not deliver value to everybody and make money. It is just too difficult to do. So what you do is segment the market into different groups. Segmentation is identifying the possible group of people that exists.
Targeting:
Now you choose the group that can be served best. You target or choose a segment you want to focus on. i.e. you have 5 rabbits and you want to catch them all. you can not run after all the rabbits at a time. you need to choose one, then another, and so on to catch them all.
Positioning:
You position your brand to meet the needs of the chosen target segment. Positioning is how you would like these consumers to think about your product.
The tools of Marketing :
The tools you use to deliver are the 4 Ps of marketing. As you know exchange says, you have a buyer and a seller. What the seller puts into the exchange is the PRODUCT or SERVICE (brand). What the buyer puts into exchange is the PRICE. The way the seller cites the benefit of the product to the buyer is called PROMOTION and the way the seller, delivers the product to the customer is the PLACE decision.