MARKETING

MANAGEMENT
MODULE 1

MARKETING
MANAGEMENT
chap 1
Understanding
Marketing Management
2

 Marketing

is everywhere. Formally or
informally, people and organizations
engage in a vast number of activities
that could be called marketing. Good
marketing has become an increasingly
vital component for business success.
And marketing profoundly affects our
day-to-day lives. Good marketing is no
accident, but a result of careful
planning and execution. It is both an
art and a science
3

What is Marketing?
Marketing

is the creation and delivery

of standard of living to the society.
Prof.
Malcolm
McNair

Marketing

is the business process by

which products are matched with the
market and through which the
transfers of ownership are affected.
- Cundiff and Still

Objectives of marketing?

Intelligent
application
of
modern
marketing policies.
To develop marketing field.
For
guiding
policies
and
their
implementation for a good result.
For
suggest solutions by studying the
problems relating to marketing.
To
find
out
sources
for
further
information related to marketing.
To revive existing marketing function, if
shortcomings are found.
To take appropriate actions in the course
of action.
5

Marketing environment
(A)Task environment includes the actors
engaged in producing, distributing, and
promoting the offering. These are the
company
suppliers,distributors,dealers,and
the
target customers.

(B) Broad environment

Demographic
Economic
Physical
Technological
Political-Legal
Social-cultural

Nature of Marketing
Specialized

business function.
Socially desirable function
Integrative function
Reflects the business mission
Adaption to environment variables
Universal function
Management function

Scope of Marketing
Goods

Physical goods constitute the bulk of

production and marketing efforts.
Services
A growing portion of business activities
are focused on the production of
services. The U.S. economy today
consists of a 7030 services to goods
mix.
9

Events

Marketers promote time-based

events such as trade shows, artistic
performances, and the Olympics.
Experiences

By several services and goods, a

firm
can
create
and
market
experiences such as Walt Disney
Worlds Magic Kingdom.
10

Persons

Celebrity marketing is a major business.

Places

Cities, states, regions, and whole nations compete

actively to attract tourists, factories, and new residents.

Properties

Are intangible rights of ownership of either real property

(real estate) or financial property (stocks and bonds).

Organizations
Actively work to build a strong, favorable, and unique
image in the minds of their target publics.

11

 Information

Can be produced and marketed as a

product. Schools, universities, and
others produce information and then
market it.
Ideas

Every market offering includes a

basic idea. Products and services are
platforms for delivering some idea or
benefit.
12

Marketing Function

Buying
Assemblin
g
Selling

Transportati
on
Storage
Warehousin
g

Financing
Pricing
Risk-Bearing
Standardizati
on
Marketing
Information

13

Importance of Marketing

Importanc
e of
Marketing

14

Importance of Marketing Contd.

Importance to the society

Delivery of standard of living to the society

Decreases in the distribution cost
Increase in employment opportunity
Protection against business slump
Increase in National Income

Importance of marketing to the firm

Helpful in business planning and decision making

Helpful in increasing profits
Helpful in communication between firm and society

Importance of marketing in developed economy

Importance of marketing in underdeveloped or
developing economy
Importance of marketing in a sellers or buyers
market
15

Different between marketing and

Basis of Diff
Marketingselling
Selling
Origin

New approach

Classical approach

Activities

Discovery & satisfaction of

need

Only physical distribution

of goods and services

Product oriented
vs. customer
oriented

Customer oriented

Product oriented

Target

Satisfy customer

Earn maximum profit

Approach to profit

more profit through

satisfaction

Only maximum profit

Nature

Long-term objectives

short term objective

Views business

Customer satisfaction
process

Good producing process

Product
determination

By the buyer

By the seller

Determination of
price

Consumer determines

Cost determines

View the customer

Marketing views are imp

16

Selling views are imp

Basic marketing concept

i.
ii.
iii.
iv.
v.
vi.

Needs, Wants and Demands

Products
Values
Exchange, Transaction and relationship
Market
Marketers

Detail explanation is as under

17

Basic marketing concept, cont..

i.

Needs, Wants and Demands

Needs

a)
b)
c)

Basic Physiological or Primary Needs

Socio-Psychological or secondary needs
General needs

Wants
Demands

ii.

Projects

iii.

Value
Customer perceived value=Benefits deriving from
product /
Cost of acquiring the products

18

Basic marketing concept, cont..

iv.

Exchange, transaction and relationship

Needs

Wants

Deman
d

Exchange

Offers
for
sale

Researche
s

Factors affecting the exchange process

i.Demand and Supply
ii.Price
iii.Market information with sellers and buyers
iv.Legal control and regulations to ensure fair price.

19

Basic marketing concept,

cont..
Markets

A market consists of all the potential customer sharing a

particular need or wants who might be willing and able to
engage in exchange to satisfy that need or want
- Philip Kotler

Marketers

A marketer is someone seeking a resource from

someone else and willing to offer something of value in
exchange. It is clear, that marketer is not a producer.
Marketer is one of the parties of exchange
- Philip Kotler

20

Company orientation towards the

Marketplace
i.
The
competing
concepts
under
which
organizations
have
conducted
marketing
activities include; the production concept,
product concept, selling concept, marketing
concept, and holistic marketing concept.

21

Parametres
Product of Different
Production
Selling
Marketing
Comparison
Marketing
Orientation
concept
concept
concept
concept
Company
policy

Company
believes in its
quality of
product offered
to customer

Company
feels that
customer
should be
satisfied and
feel happy
that value
products are
offered to
them.
Company
attempts to
cut costs and
bring out
better
products.

Company
feels that
with
persuasion
they would
be able to
sell their
products and
services.

Production
policy

Company sells
products of
reasonable
quality

Company sells Company

what it can
offers
produce.
products
which are
essentially
alright but

Try to
understand
customers
needs and
segment the
target
audience to
serve them
better.

Company
offers
products
which will
22
give
maximum

Comparison of Different Marketing Orientation

Parametres Product
concept

Production
concept

Selling
concept

Marketing
concept

Research
and
developme
nt policy

Tries to use
research to
get
customers
reasonable
quality.

To determine
customer
feelings to its
quality and
availability
but not
regularly.

Company
uses
research to
increase its
sales
without in
depth
analysis of
customer
needs

Company
tries to
understand
consumer
needs and
evolve
products to
satisfy them

Product
Quality
Policy

Focus on
quality
improvement

Focus on
reduction
and
improving
productivity

Focus on
Quality of
product and
its
availability

Focus on
Locating
new
opportunitie
s and new
application
23

Comparison of Different Marketing Orientation

Parametres Product
concept

Production
concept

Selling
concept

Marketing
concept

Profit
Policy

Computed
after all costs
are taken and
matter of
immediate
importance

Computed
after all costs
are taken
and matter
of immediate
importance

Computed
on the basis
of high
volume
sales
resulting in
higher
profit

Profit is not
immediate
short-term
objective
but longterm
sustained
objective.

Customer
Service
Policy

Not
appreciated
as a good
practice

Not
appreciated
as a good
practice

Not very
keen to
give this
service

Believed as
a customer
service for
long-term
association
24

Comparison of Different Marketing Orientation

Parametres Product
concept

Production
concept

Selling
concept

Examples

Defense
items,
railways,
postal
service,
hospital
government

Petrol and
Modi xerox,
diesel steel color tv,
and cement cars, mobile
phones
soap,
cosmetics
fashion
products,
insurance,
banks,
travels,
restaurant,
hotel

Textile,
furniture
office
equipment

Marketing
concept

25

Holistic marketing
Holistic

marketing sees itself as

integrating the value examination,
value creation, and value delivery
activities with the purpose of building
long-term,
mutually
satisfying
relationships and prosperity among
key stakeholders.

26

7. Holistic Marketing
dept,senior
ConceptMarketing
mgmt,other dept

Customers,
channel,partners

Ethics,Environment,l
egal,community

Product&service,com
munication,channels

27

Marketing
mix

The 4 ps of mktg.
Product
Variety,
quality,
design,
features,
Brand name,
packaging,
size,
services,
warranties,
returns.

Price
List price
Discounts
allownces
Payment
period Credit
terms

Promotion
Sales
promotion
Advertising
sales force
public
relation
direct
marketing

Place
channels
coverage
assortment
s
locations
inventory
transport
28