MARKETING MANAGEMENT

Dr. Prafulla Agnihotri,

Professor, Marketing Group, IIM Calcutta Office: NTB E 107; Ext. 529 pyagnihotri@gmail.com

Session 1
Evolution of Marketing Concept

MAIN POINTS
1.
2.

Stages in evolution of marketing concept.

Difference between selling and marketing concept. Marketing management - definition

3.

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Three Stages of Marketing Evolution

Production orientation Product orientation

Some industries and organizations remain at the product-orientation stage.

Production orientation Sales orientation

Other industries and organizations have progressed only to the sales-orientation stage. Production orientation Sales orientation Marketing orientation

Many industries and organizations have progressed to the marketing-orientation stage.

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Marketing Perspectives
Focus: Sell what its easy

Production Orientation

to produce

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Marketing Perspectives

Production Orientation

Focus: Sell what its easy

to produce
Focus: Push products to

Sales Orientation

beat competition

MK 101- Session 1

Marketing Perspectives

Production Orientation

Focus: Sell what its easy

to produce
Focus:

Sales Orientation

Push products to beat competition Coordinate all customer contacts

Marketing Department Orientation

Focus :

MK 101- Session 1

Marketing Perspectives
Production-orientation
Focus: Sell what its easy

to produce
Focus:

Sales-orientation

Push products to beat competition Coordinate all customer contacts Long-run customer satisfaction

Marketing Department Orientation Marketing Company Orientation

Focus :

Focus :

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The Marketing Concept

Customer Satisfaction Total Company Effort

The Marketing Concept

Profit
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The Societal Marketing Concept

Society (Human Welfare)

Societal Marketing Concept

Consumers (Want satisfaction)

Company (Profits)

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What is Marketing?
Marketing begins with potential customer needs It is more than just persuading customers It focuses on facilitating exchanges by offering a benefit(s) to customers need(s) It aims at managing profitable customer relationships.

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In short,
Marketing is so basic that it cannot be considered a separate function. It is the whole business seen from the point of view of its final results, that is, from the CUSTOMERS point of view- Peter Drucker

MARKETING CONCEPT Customer Orientation + Customer satisfaction

+
Organisations Performance objectives +

Coordinated marketing activities

Organisational success
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MK 101- Session 1

Difference Between Marketing and Selling Concepts

Selling Marketing
Emphasis is on the product Emphasis is on customers wants. Company first makes the product Company first determines customers and then figures out how to sell it. wants and then figures out how to make and deliver a product to satisfy those wants. Management is sales-volume Management is profit-oriented. oriented. Planning is short-run-oriented, in terms of todays products and Planning is long-run-oriented, in terms markets. of new products, tomorrows markets, and future growth. Stresses needs of seller. Stresses wants of buyers. Aims at selling more volumes. Builds profitable relationships.
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How Should a Business be Defined?

Company
Kodak Revelon

Product-Oriented Answer We make cameras and films We make cosmetics

Market-Oriented Answer We help preserve beautiful memories ?

Voltas AC

We make ACs
We make
photocopying machines
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?
?

Xerox

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A Need and a Benefit

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Marketing Defined
Marketing is the process by which companies create value for customers and build strong (and profitable) customer relationships in order to capture value from customers in return.

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The Goal : Satisfaction ? no no Customer DELIGHT !

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How does it happen?

Superior Customer Value

Total Company Effort to Satisfy Customers

Customer Acquisition

Profitable Relationship With Customer Customer Retention

Customer Satisfaction Delight

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The Customer Satisfaction / Loyalty Relationship

Loyalty 100 Apostle

Zone of Affection
80 60 Near Apostle

Zone of Indifference
40 Zone of Defection 20 0 Terrorist

1 V.D.S

2 D.S

3 --------MK 101- Session 1

4 S

5 V.S

Satisfaction

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The Marketing Management Process

Analyzing marketing opportunities Researching and selecting target markets Designing marketing strategies

Planning marketing programs

Organizing, implementing, and controlling marketing effort

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Marketing OffersProducts, Services and Experiences

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Marketing Offers - Products

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Marketing Offers - Services

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Marketing Offers - Experiences

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Marketing in Non-Profit Organisations

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Thank You

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