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MARKETING MANAGEMENT
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 THE SCOPE OF MARKETING
 What is Marketing?

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1. “…meeting needs profitably!”
2. American Marketing Association: “Marketing is an
organizational function and a set of processes for
creating, communicating and delivering value to
customers and managing customer relationships in ways
that benefits organization and its stake holders.”
3. Philip Kotler: Marketing management is the art and
science of choosing target markets and getting, keeping
and growing customers through creating, delivering and
communicating superior customer value.
4. Social definition: “Marketing is a societal process by
which individuals and groups obtain what they need and
want through creating offering and freely exchanging
products and services of value with others.”
5. Managerial definition: The art off selling products
6. “Marketing deals with identifying and meeting human
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and social needs”
THE SCOPE OF MARKETING

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 What is Marketing?
 Marketing management takes place when at
least one party to a potential exchange thinks
about the means of achieving desired responses
from other parties.
o t
n
 The most important part of marketing is selling
^
 The aim of marketing is making selling
superfluous.

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THE SCOPE OF MARKETING

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 Exchange and transaction
 A person can obtain a product in one of four
ways
 Self-produce- Hunt, Fish, Gather fruits
 Use force
 Beg
 Exchange

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 THE SCOPE OF MARKETING
 Exchange and transactions
 Exchange: The process of obtaining a desired product from

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someone by offering something in return.
 Transaction: A trade of values between two or more parties.
When an agreement is reached we say transaction has
happened.
 Exchange is a value creating process because it normally
leaves both parties better off.
 For exchange potential five conditions must be satisfied
1. There are at least two parties
2. Each party has something that might be of value to the other party
3. Each party is capable of communication and delivery
4. Each party is free to accept or reject the exchange offer
5. Each party believes it is appropriate or desirable to deal with the
other party 5
THE SCOPE OF MARKETING

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 A transaction involves
 At least two things of value
 Agreed upon conditions
 A time of agreement
 A place of agreement

A legal system supports and enforces compliance

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TRANSFER

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 Transaction differs from transfer.
 In transfer A gives X to B but does not
receive any thing tangible in return
 Gifts,subsidies, charity
 Transfer expects something like gratitude,
changed behaviour, Thank-you notes, invitations,
a business firm wants a purchase, a politician
wants vote,

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WHAT EACH PARTY EXPECTS

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 Mahindra and Mahindra sales a tracter
 Farmer wants:
 High quality equipment
 A fair price

 Timely delivery

 Good financial terms

 Reliable parts and service

 Mahindra and Mahindra wants

 Good price for the tracter
 On-time payment

 Positive word of mouth

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THE SCOPE OF MARKETING

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What is Marketed?
1. Goods Cars, Trucks, Televisions, Machine Tools,
2. Services Machines, Industrial
Airlines, Hotels, chemicals,
Car rental, watches,
barbers, beauticians,
cosmetics
maintenance …….and repair, accountants, lawyers,
3. Events Trades shows, Artistic performances,
doctors,
Sporting consultants,
events serviceWorld
(Olympics, providers
Cup),……
4. Experiences Amusement park, water park, Multiplexes,
5. Persons Theme restaurents
Celebrity marketing, Stars selling
6. Places themselves through
State ads like touristagents, PR agencies
or business destinations
etc.
7. Properties Real Estate or financial property like stocks
8. Organisations and bonds Corporate, Universities …..
Companies,
9. Information News channels, Encyclopedias ….
10. Ideas Awareness about AIDS, Family planning,
Discouraging smoking …. 9
 THE SCOPE OF MARKETING
Who Markets?
A marketer is someone who seeks response from another party called prospect,

Eight demand states:

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1. Negative Demand: consumer dislikes the product and even pay a
price to avoid it
2. Nonexistent Demand: consumers may be unaware or uninterested
in the product.
3. Latent Demand: consumers may share a strong need that cannot
be satisfied by an existing product.
4. Declining Demand: consumers begin to buy the product less
frequently or not at all.
5. Irregular Demand: consumer purchases very on a seasonal,
monthly, weekly, daily or even hourly basis.
6. Full Demand: consumers are adequately buying all products put
into the marketplace
7. Overfull Demand: more consumers would like to buy the product
than can be satisfied.
8. Unwholesome Demand: consumers may be attracted to products10
that have undesirable social consequences.
MARKETS

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 Collection of buyers and sellers who transact
over a particular product or product class
(e.g. the housing market or grain market)

 Sellers: Constituting industry

 Buyers: Constituting markets Market

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MARKETS
Resources
Resources

Resource
Markets

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Money Money

Taxes,
Services
Goods
Money
Services
Money Taxes

Manufacturer Government Consumer

Markets Markets Markets
Taxes, Services
Goods

Services Taxes,
Money Goods

Money
Money

Intermediary
Goods & Services Goods & Services 12
Markets
KEY CUSTOMER MARKETS

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 Consumer markets
 Business markets

 Global markets

 Non-profit and Govt Markets

Communication

Goods/ Services
Market
Industry
(collection of buyers)
(Collection of sellers)
Money 13

Information
 MARKETPLACES, MARKETSPACES AND
METAMARKETS

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•Marketplace: is physical as you shop a store

•Marketspace: is digital as you shop on Internet

•Metamarket: is a cluster of complementary

products and services that are closely related in the
minds of consumers but are spread across a diverse
set of Industries
Automobile metamarket:
Automobile Manufactures Insurance companies Auto magazines
New car Dealers Mechanics Classified Auto ads in
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Used car Dealers Spare part dealers newspapers
Internet sites on Auto
Financing Companies Service shops
THE SCOPE OF MARKETING
 How business and Marketing are changing?

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Changing Technology
Globalization
Deregulations
Privatization
Customer empowerment
Customization
Heighten competition
Industry convergence
Retail transformation 15

Disintermediation
 COMPANY ORIENTATION/
PHILOSOPHIES
•The Production Concept High production efficiency, Low cost and mass distribution

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•The Product Concept Total focus on product and no focus on other needs

•The Selling concept Intention is to sell more and more

•The Marketing Concept No HUNTING but GARDENING,

Understanding EXPRESSED needs Reactive Market Orientation)
Understanding LATENT needs (Proactive Market Orientation)
And TOTAL Market Orientation
•The Holistic Marketing Concept
Relationship Marketing
Integrated Marketing
Internal Marketing
Social Responsibility Marketing

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 COMPANY ORIENTATION
Marketing Senior Other Communications Products & Services Channels
Department Management Departments

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Internal Integrated
Marketing Marketing

Holistic
Marketing

Socially
Relationship
Responsible
Marketing
Marketing

Partners
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Customers
Ethics Community
Channel
Environment Legal
RELATIONSHIP MARKETING

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 Has a aim of building mutually satisfying long term
relationships with key parties- Customers, Suppliers,
Distributors and Other marketing partners- in order to
earn and retain their business.
 Marketing must not only do ‘customer relationship
management’ (CRM) but also ‘partner relationship
management’ (PRM)
 Key constituents are
• Customers
• Employees
• Marketing partners (channels, suppliers,
distributors, dealers, agencies)
• Members of financial community (shareholders,
investors, analysts)
 Ultimate outcome is a Marketing Network
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 INTEGRATED MARKETING
MARKETING MIX

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Marketing Mix
Products Place
Product variety Channels
Quality Coverage
Design Assortments
Features Locations
Brand name Inventory
Packaging Transport
Target Market
Sizes
Services
Warranties Promotion
Price
Returns Sales promotion
List price
Discounts Advertising
Allowances Sales force
Public relations 19
Payment period
Credit terms Direct Marketing
INTEGRATED MARKETING
MARKETING MIX

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Four P’s Four C’s
Product Customer solution
Price Customer cost
Place Convenience
Promotion Communication

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INTERNAL MARKETING
MARKETING MUST BE EMBRACED BY THE OTHER

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DEPARTMENTS

SOCIAL RESPONSIBILITY MARKETING

INCORPORATES SOCIAL RESPONSIBILITY AND
UNDERSTANDS BROADER CONCERNS AND THE
ETHICAL, ENVIRONMENTAL, LEGAL AND SOCIAL
CONTEXT.
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FUNDAMENTAL MARKETING
CONCEPTS:

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Core concepts:
• Needs, wants and Demands
• Target Markets, Positioning and
Segmentation (STP) Marketing Environment:
• Offerings and Brands 1.1.Task
Divide market into segments
Environment
Marketing
2. Planning
1. Stated
Profile distinct groups needsusing
• Value and satisfactionSupply Company
channel describes a longer channel
Analysing Marketing
demographic,2. Real needs
opportunities
psychographic
Suppliers
1. reflects
Communication
Competition
Value
Selecting
• Marketing channelsA brand Distributors
and target
3.
behavioralfrom
includes
the all channels
perceived
Unstated
market theneeds
differencesactual
tangible
is
2. an offering
Distribution
Raw from a
channels
material Known
to source
and Decide segment with greatestto
intangible
potential
Designing
3.Dealers rival
benefits
marketing
4. offerings
Delight and costs
and
strategies
needs
• Supply chain 3. Service
customers.
substitutes
Developing 5.channels
Components
Value
that acan
buyer
marketing
Secret be tomight
seen as a
needs
programmes
opportunity
Target Customers
• Competition combination
Managing
4. Final
For chosen products
consider
of Quality,
marketing
target Service and
efforts
market
1.
SupplyBroad Environment
chain offering
represents Value delivery
develop Price
• Marketing Environment Demographic system
Economic
• Marketing planning Physical
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Technological
Political-legal
Social-cultural
FACTORS INFLUENCING COMPANY MARKETING
STRATEGY
Demographic/ Technological/
economic physical
environment environment
Marketing

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intermediaries

Mk
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sy

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in

pl
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kt

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M Product

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Target

Price
Place
customers Publics
Suppliers

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sy
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ta g
Mk Promotion

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tg

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&

Competitions
Political/ Social/ 23
Legal Cultural
environment environment
FUTURE OF MARKETING

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 From Marketing does the marketing to everyone does
the Marketing
 From organizing by product units to organising by
customer segments
 From making everything to buying more goods and
services from outside
 From using many suppliers to working with fewer
suppliers in a ‘partnership’
 From relying on old market positions to uncovering
new ones
 From emphasizing tangible assets to emphasizing
intangible assets
 From building brands through advertising to building
brands through performance and integrated
communications
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FUTURE OF MARKETING

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 From attracting customers through stores and
salespeople to making products available online
 From selling to everything to trying to be the best firm
serving well defined target markets
 From focusing on profitable transactions to focusing
on customer lifetime value
 From a focus on gaining market share to a focus on
building customer share
 From being local to being ‘glocal’- both local and local
 From focusing on the financial scorecard to focusing
on the marketing scorecard
 From focusing on shareholders to focusing on
stakeholders

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