Marketing Management

An Introduction
 What is Marketing?

 Social definition
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

 Managerial Definition
The art of selling products
 What is Marketing?

 The American Marketing Association

Marketing is an organizational function

and a set of processes for creating,
communicating, and delivering value to
customers and for managing customer
relationships in ways that benefit the
organization and its stake holders
 Core Concepts of Marketing
Needs, Wants,
Why
Demand

Product What

Value, Cost &

How
Satisfaction

Exchange,
Which Way Transaction,
Relationship

Where Markets

Who Marketers
 Needs, Wants, & Demands
 Needs:

A human need is a state of deprivation of

some basic satisfaction. People require
food, clothing, shelter, safety, belonging &
esteem. These are not created by society
or marketers. They exist in the very
texture of human biology & condition.
 Needs, Wants, & Demands
 Wants:

Desires for specific satisfiers of needs.

Although needs are few, wants are many
& are continually shaped & reshaped by
social forces & institutions.
 Needs, Wants, & Demands
 Demands :

Wants for specific products that are

backed by an ability & willingness to buy
them. Wants become demand when
supported by purchasing power.
 Products
 Goods
 Services
 Ideas
“A product is anything that can be offered
to satisfy a need or a want”

A marketer’s job is to sell the benefits or

services built into physical products.
 What is Marketed?
 Places  Goods
 Properties  Services
 Organizations  Experiences
 Information  Events
 Ideas  Persons
 Value, Cost and Satisfaction
 Value = Benefits/Costs

 Benefits = Functional Benefits + Emotional

benefits

 Costs = Monetary costs + Time + Energy +

Psychic costs
 Exchange
 Get something (product /service) by
offering something in return.
Eg. kind (barter) or money (value )

 Exchange is a value creating process

because it leaves both parties better off
(win – win situation)
 Transaction and Transfer
 A transaction is an exchange between two
things of value on agreed conditions and a
time and place of agreement.

 A transfer is a one way exchange without

receiving anything in return.
 Relationship
 Building long term mutually satisfying
relations with customers, suppliers,
distributors in order to retain their long
term preference and business
 Market
 Consist of all the potential customers sharing a
particular need or want who might be willing &
able to engage in exchange to satisfy the need
or want.
 KEY CUSTOMER MARKETS
 Consumer Markets
 Business Markets
 Global Markets
 Nonprofit and Governmental Markets
 Marketplace, Marketspace,
Metamarket

 The marketplace is physical, as when you

shop in a store;

 Marketspace is digital, as when you shop on

the 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.
 Marketer

 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.
 Marketer
 Eight demand states are possible:

1) Negative demand- Consumers dislike the product

and may 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.
 Marketer
 Eight demand states are possible:

5) Irregular demand - Consumer purchases vary 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 products that have undesirable social
consequences.
 Basic Marketing Tasks
S. No Demand State Marketing Task Formal Name
1 Negative Demand Disabuse Demand Conversional Marketing

2 Nonexistent Demand Create Demand Stimulational Marketing

3 Latent Demand Develop Demand Developmental Marketing

4 Declining Demand Revitalize Demand Remarketing

5 Irregular Demand Synchronize Demand Synchro Marketing

6 Full Demand Maintain Demand Maintenance Marketing

7 Overfull Demand Reduce Demand Demarketing

8 Unwholesome Destroy Demand Counter Marketing

Demand
Company orientations towards the
Marketplace

 Production Concept
 Product Concept
 Selling Concept
 Marketing Concept
 Holistic Marketing Concept
 Production Concept
 Products that are widely available and
inexpensive.

 Concentration on achieving
– high production efficiency,
– low costs, and
– mass distribution
 Product Concept
 Products that offer the most quality,
performance, or innovative features.

 Focus on making superior products and

improving them over time.
 Selling Concept
 The selling concept holds that consumers and
businesses, if left alone, will ordinarily not buy
enough of the organization's products.

 The organization must, therefore, undertake an

aggressive selling and promotion effort.

 The selling concept is practiced most

aggressively with unsought goods, goods that
buyers normally do not think of buying, such as
insurance, encyclopedias, and funeral plots.
 Marketing Concept

 Instead of a product-centered, "make-

and-sell" philosophy, business shifted to a
customer-centered, "sense-and-respond"
philosophy.

 The job is not to find the right customers

for your products, but the right products
for your customers.
Contrasts Between the Sales Concept and the
Marketing Concept
 Holistic Marketing Concept
 Holistic marketing recognizes that
"everything matters" with marketing— and
that a broad, integrated perspective is
often necessary.

 Four components of holistic marketing are

relationship marketing, integrated
marketing, internal marketing, and social
responsibility marketing.
Holistic Marketing Framework
 Relationship Marketing
 The practice of building long-term
satisfying relations with key parties –
customers, suppliers, distributors – in
order to retain their long-term preference
& business.
 Integrated Marketing

 The marketer's task is to devise marketing

activities and assemble fully integrated
marketing programs to create,
communicate, and deliver value for
consumers.
Integrated Marketing
Marketing Mix Strategy
4 P’s of Marketing
 4 P’s Vs 4 C’s

 Product Customer needs/wants

 Price Cost to customer

 Place Convenience

 Promotion Communication
 Internal Marketing
 It ensures that everyone in the organization embraces
appropriate marketing principles, especially senior
management.

 Internal marketing must take place on two levels. At one

level, the various marketing functions—sales force,
advertising, customer service, product management,
marketing research—must work together.

 At another level, marketing must be embraced by the

other departments; they must also "think customer."
 Social Responsible Marketing
 It is understanding broader concerns and the
ethical, environmental, legal, and social context
of marketing activities and programs.

 The societal marketing concept calls upon

marketers to build social and ethical
considerations into their marketing practices.
They must balance and juggle the often
conflicting criteria of company profits, consumer
want satisfaction, and public interest.