MARKETING MANAGEMENT I

CHAPTER 1
INTRODUCTION TO
MARKETING MANAGEMENT
CONTENT
MEANING AND SCOPE OF MARKETING
CORE MARKETING CONCEPTS
CREATING, COMMUNICATING AND DELIVERING VALUE
MARKETING MIX
EMERGING PARADIGMS IN MARKETING
MARKETING IN ORGANISATIONS
SALES VS MARKETING
CREATING, COMMUNICATING AND DELIVERING VALUE
 WELCOME TO THE COLOURFUL WORLD OF
MARKETING

“Good marketing is no accident, but a result of careful planning and execution using
state-of-the-art tools and techniques. It is both an art and a science as marketers strive
to find creative new solutions to often-complex challenges amid profound changes in
the 21st century marketing environment” – PHILIP KOTLER
MEANING & SCOPE
Marketing is about identifying and meeting human and social needs, creating
products that can satisfy them and communicating and delivering the same.
According to the American Marketing Association: “Marketing is the activity, set of
institutions and processes for creating, communicating, delivering, and exchanging
offerings that have value for customers, clients, partners, and society at large”.
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”.
EVOLUTION OF MARKETING
 WHAT IS MARKETED?
Goods
Services
Events
Experiences
Persons
Places
Properties
Organisations
Information
Ideas
A FEW FUNDAMENTALS…
MARKETER AND PROSPECT:
A marketer is someone who seeks a response—attention, a
purchase, a vote, a donation—from another party, called the
prospect. If two parties are seeking to sell something to each
other, we call them both marketers.
INDUSTRY AND MARKETS:
Marketers use the term market to cover various groupings of
customers.
They view sellers as constituting the industry and buyers as
constituting the market.
INDUSTRY AND MARKETS
CUSTOMER MARKETS
Consumer Markets (B2C)
Business Markets (B2B)
Global Markets
Non-profit and Governmental Markets
CORE MARKETING CONCEPTS
Needs and Demands
Segmenting, Targeting and Positioning
Value and Satisfaction
Offering and Brands
Marketing Channels
TYPES OF NEEDS
Stated Needs: I want an inexpensive car
Real Needs: I want a car whose maintenance cost is low and not the price
Unstated Needs: I expect a good service
Delight Needs: It will be nice if I get a music system free
Secret Needs: I want my friends to think that I am savvy
DEMAND STATES
Negative Demand: Consumers dislike the product
Non-existent Demand: Consumers are unaware and uninterested
Latent Demand: Consumers have a strong need that cannot be satisfied by
an existing product
Declining Demand: Consumers buy less frequently
Irregular Demand: Purchases are very seasonal
Full Demand: Purchase of all products that are there in the market
Overfull Demand: More consumers would like to buy
Unwholesome Demand: Purchase of products that have undesirable social
consequences
CREATING, COMMUNICATING AND DELIVERING
VALUE
CREATING VALUE
 CUSTOMER PERCEIVED VALUE AND COMPANY DELIVERED VALUE
 RIGHT PRODUCT AT THE RIGHT PRICE
COMMUNICATING VALUE
PROMOTION MIX: Advertising, Sales Promotion, PR, Direct Marketing, Personal Selling, Event Management
DELIVERING VALUE
Channels of Distribution
Direct and Online Marketing
Non-conventional Channels
MARKETING MIX
According to Philip Kotler “Marketing Mix is the set of controllable variables that the
firm can use to influence the buyer’s response”
A marketing manager concentrates on four major decision areas while planning the
marketing activities, namely,
(i) Product
(ii) Price
(iii) Place (distribution)
(iv) Promotion
These 4 ‘P’s are called as elements of marketing and together they constitute the
MARKETING MIX.
MARKETING MIX
TAKE HOME ASSIGNMENT QUESTION SET:1
1. Give at least 5 differences between sales and marketing
2. Explain the 4Cs of Marketing
3. What are the 4As of Marketing, what is its relevance in today’s context
4. What are the 7Ps of Marketing, what is the relevance of the additional 3Ps.
EMERGING PARADIGMS IN MARKETING
Information Technology
 Digital Marketing – Internet and Mobile
 Social Media Marketing
 Marketing Analytics

Globalisation
 Shrinking world
 Sharing of Ideas
 Multi cultural

Customer Centricity
 Voice of the customer
 WoM
 CRM – Customer Satisfaction and Loyalty
MARKETING AND ORGANISATION
SALES VS MARKETING
According to Peter Drucker,
“There will always, one can assume, be need for some selling. But the aim of marketing is
to make selling superfluous. The aim of marketing is to know and understand the
customer so well that the product or service fits him and sells itself. Ideally, marketing
should result in a customer who is ready to buy. All that should be needed then is to make
the product or service available”