Professional Documents
Culture Documents
Ch-1 (Introduction To Marketing Management)
Ch-1 (Introduction To Marketing Management)
MARKETING MANAGEMENT:
M
A (6)
NEED/ WANT/ DEMAND CUSTOMER M
R
PRODUCT (GOODS/ SERVICES) A
K
VALUE/ COST/ SATISFACTION R
E
BUSINESS EXCHANGE/ TRANSACTION CUSTOMER K
T
ENTITY RELATIONSHIP/ NETWORK E
I
N T
CUSTOMER
G
7. MARKETERS/ PROSPECTS
Marketers cannot create needs. Needs pre exists. Marketers can influence wants. This is done
in combination with societal influencers.
• Decision for purchase made based on value/ cost satisfaction delivered by product/
offering.
• Product fulfills/ satisfies Need/ Want.
• Value is products capacity to satisfy needs/ wants as per consumer’s perception or
estimation.
• Each product would have a cost/ price elements attached to it.
a) Barter transaction.
b) Monetary Transaction.
Relationship marketing:- It’s a pattern of building long term satisfying relationship with
customers, suppliers, distributors in order to retain their long term performances and
business.
Competition is between whole network for market share and NOT between companies alone.
A market consists of all potential customers sharing particular need/ want who may be
willing and able to engage in exchange to satisfy need/ want.
Market Size = Fn (Number of people who have need/ want; have resources that interest
others, willing or able to offer these resources in exchange for what
they want).
Types of Markets:
i) Resource Market,
ii) Manufacturing Market,
iii) Intermediary Market,
iv) Consumer Market,
v) Government market.
Working with markets to actualize potential exchanges for the purpose of satisfying needs
and wants.
One party seeks the exchange more actively, called as “ Marketer”, and the other party is
called “Prospect”.
Prospect is someone whom marketer identifies as potentially willing and able to engage in
exchange.
Marketing Management takes place when at least one party to a potential exchange thinks
about the means of achieving desired responses from other parties.
It defines marketing management as the process of planning & executing the conception of
pricing, promotion, distribution of goods, services, ideas to create exchanges that satisfy
individual and organizational goals.
Can be practiced in any market.
Task of marketing management is to influence the level, timing, composition
of demand in a way that will help the organization to achieve its objective.
Hence, marketing management is essentially demand management.
i) Production concept: Consumers will favour those products that are widely available
and low in cost. Hence, focus is on efficiency and wide
distribution.
100 unit/ day: total cost = 10000 + 2000 = 12000/= unit cost= 120/=.
1000 unit/ day: total cost = 10000 + 20000 = 30000/= unit cost= 30/=.
iii) Selling concept: Consumers, if left alone, will ordinarily not buy enough of the
organization product. Hence, focus is on aggressive selling &
promotion effort.
Assumptions – Customer shows buying inertia.
- Company has effective selling & promotion tools to stimulate buying.
In some situation, companies have to sell what they make rather than make what they sell.
In current world, many markets are buyer markets. Hence, producers need to sell
aggressively. This gives rise to a feeling that selling is all or most important part of
marketing. In reality, selling is just one part of marketing.
iv) Marketing concept: Integrate marketing activities towards determining & satisfying
needs/ wants of target market more effectively than competition.
This is the key to achieving organization goals.
(a) TARGET MARKET: Normally, any company may not be able to operate in every
market to satisfy every need.
- Needs/ Wants are/ can be quite special/ different for
different conditions
- Hence, a company needs to identify specific target
market which it can address or whose specific needs
it can fulfill.
(b) CUSTOMER NEEDS: Customers needs need to be fully understood. This may
involve,
- going deeper into needs
- understanding possible trade- off.
Customer needs could be a range of attributes of product features at low price. This may not
be possible. Hence, trade off need to be understood. Company need to understand customer
need/ tradeoff and meet them better than competition.
(d) PROFITABILITY:
Ultimate Purpose: - Achieve organizational goals(profit).
Key : - Do job well and achieve profits as a by-product.
Doing job well: - Satisfying customer needs better than competition.