Marketing Management – Lecture Notes

Lecture 1 – Thursday August 9, 2018

Marketing:

Marketing is “meeting needs profitably”

Definition by American Marketing Association: “Marketing is an organizational function and a set of processes for
creating, communicating, and delivering value to customers and for managing customer relationships in ways that
benefit the organization and its stakeholders.”

Marketing Management:

The art and science of choosing target markets and getting, keeping and growing customers through creating,
delivering, and communicating superior customer value.”

What can be marketed?

Goods: Physical goods constitute the bulk of most countries production and marketing efforts. E.g. shampoo,
sugar, tea etc.

Services: Services include the work of airlines, hotels, car rentals, lawyers, education institutes etc.

Events: Marketers promote time based events such as major trade shows, artistic performances and various
expos. A key example is Pakistan Wedding show, concerts.

Experiences: BY orchestrating several services and goods, a firm can create, stage and market experiences. An
amusement park and water park represents experiential marketing.

Persons: Celebrity marketing is a major business. Artists, musicians, sportsmen all get help from celebrity
marketers.

Places: Cities, States, region and whole nations compete actively to attract tourist, factories.

Properties: Properties are intangible rights of ownership. Investment companies market securities to both
institutions and individuals.

Organizations: Organizations actively work to build a strong favorable and unique image. Universities, museums,
preforming art organizations all market themselves.

Information: Information is essentially what books, schools, and universities produce, market and distribute at a
price.

Ideas: Ideas are marketed in order to generate business and also to create awareness.

Types of demand

 Negative demand: Consumer dislikes the product.

 Nonexistent demand: Consumer may be unaware of the product.
 Latent demand: Consumers may share a strong need that may not be satisfied by an existing product.
 Declining demand: Consumers begin to buy the product less frequently.
 Irregular demand: Consumers purchase vary on seasonal, monthly, weekly basis.
 Full demand: Consumers are adequately buying all products.
 Overfull demand: More consumers would like to buy the product than can be satisfied.
 Unwholesome demand: Consumers may be attracted to products that have undesirable social consequences.

Company Orientation Towards the Marketplace

The Production Concept

IT holds that consumers will prefer products that are widely available and inexpensive.
Approach: Achieving high production efficiency, Low costs, mass distribution.
Used: In developing countries, where companies want to expand.

The product Concept

This concept proposes that consumers favor products that offer more quality, performance or innovative features.
Approach: Marketing superior products, improving over time.

The selling concept

Consumers won’t buy if left alone, therefore undertake an aggressive selling and promotion effort.
Approach: promotion, advertisement
Used: unsought goods (Insurance etc.), when firms have over capacity.

The Marketing Concept

Instead of product-centered, “make and sell” philosophy, business shifted to a customer centered philosophy.
Find the right product for your customer instead of finding the right customer for your product.
Approach: Market research, know what the customer wants

The Holistic Marketing Concept

Based on the development, design, and implementation of marketing programs, processes, and activities.
Everything matters.