Marketing Management

Ram Mohan
 Marketing
• 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 result,that is,from the customer's
point of view.
• Business success is not determined by the producer but by
the customer.
• Marketing consists of all activities by which a company
adapts itself to its environment-creatively and profitably.
• Marketing's job is to convert societal needs into profitable
opportunities
 What is Marketing?
• Marketing has been defined in various ways.The definition
that best serves our purpose is ;
• Marketing is a social and managerial process by which
individuals and groups obtain what they need and want
through creating,offering,and exchanging products of value
with others.
• This definition of marketing rests on the following core
concepts:
• Needs,wants,and demands
• Products(goods,services,and ideas)
• Value,cost and satisfaction
• Exchange and transactions
• Relationships and networks
• Markets
• Marketers and prospects
 The Core Concepts in Marketing
1.Needs,Wants and Demands:
• Marketing starts with human needs and wants.
• People need food,air,water,clothing, and shelter to survive.
• Beyond this,people have a strong desire for
recreation,education and other services.
• It is important to distinguish among needs,wants and
demands.
• A human need is a state of deprivation of some basic
satisfaction.People require
food,clothing,shelter,safety,belonging and esteem.These
needs are not created by society or marketers.They exist in
the very texture of human biology and the human
condition.
 The Core Concepts in Marketing
• Wants are desires for specific satisfiers of needs.
• Although people's needs are few,their wants are many and
are continually shaped and reshaped by social forces and
institutions,including churches,schools,families,and
business corporations.
• Demands are wants for specific products that are backed
by an ability and willingness to buy them.
• Wants become demands when supported by purchasing
power.e.g.many people may want a Mercedes;only a few
are able and willing to buy one.
• Marketers do not create needs:Needs preexist marketers.
• Marketers influence demand by making the product
appropriate,attractive,affordable,and easily available to
target consumers.
 The Core Concepts in Marketing
2.Products(Goods,Services,and Ideas):
• People satisfy their needs and wants with products.
• A product is anything that can be offered to satisfy a need or
want.
• A product or offering can consist of as many as three
components:physical goods,services and ideas.Examples;
• A fast food restaurant is supplying goods(hamburgers,fries,soft
drinks),services(purchasing,cooking,seating) and an
idea("saves me time")
• A computer manufacturer is supplying
goods(computer,monitor,printer),services(delivery,installation,
training,maintenance,repair),and an idea("computation power")
 The Core Concepts in Marketing

• Physical products are really vehicles that deliver services

to us.
• Marketers emphasize on the benefits or services packaged
in the product ,to appeal to the target audience.
3.Value,Cost and Satisfaction:
• Value is the consumer's estimate of the product's overall
capacity to satisfy his or her needs.
• Value is "the satisfaction of customer requirements at the
lowest possible cost of acquisition,ownership, and use."
• Product's value and price is considered before making a
choice between alternatives-'Value for Money'
 The Core Concepts in Marketing
4.Exchange and Transactions:
• Marketing emerges when people decide to satisfy needs
and wants through exchange.
• Exchange is the act of obtaining a desired product from
someone by offering something in return.
• Exchange is frequently described as a value-creating
process because exchange normally leaves both parties
better off.
• When an agreement is reached ,transaction takes place.
• Transaction is a trade of values between two or more
parties.e.g.monetary transaction,barter transaction.
• To effect successful exchanges ,marketers analyze what
each party expects to give and get from the transaction.
 The Core Concepts in Marketing
5.Relationships and Networks:
• Relationship marketing is the practice of building long-term
satisfying relations with key parties-
customers,suppliers,distributors in order to build a long term
business relationship.
• Relationship marketing results in strong economic,technical,
and social ties among the parties.
• The ultimate outcome of relationship marketing is the building
of a unique company asset called a marketing network.
• A marketing network consists of the company and all of its
supporting
stakeholders:customers,employees,suppliers,distributors,
retailers,ad agencies and others with whom it has built mutually
profitable business relationships.
 The Core Concepts in Marketing
6.Markets:The concept of exchange leads to the concept of a
market.
• A Market consists of all the potential customers sharing a
particular need or want who might be willing and able to
engage in exchange to satisfy that need or want.
• Marketers refer to the Industry consisting of sellers and
market consisting of buyers.
• Markets are characterised by various grouping of
customers-need markets,product markets,demographic
markets,geographic markets.
 The Core Concepts in Marketing
• There are five basic markets among which flow of goods
and services happen;
• Resource markets:raw material markets,labor
markets,money markets etc.
• Manufacturer markets:buy resources from these markets
and turn them into goods and services.
• Intermediary markets:The finished products are sold by
the manufacturer to this market who sell them to consumers.
• Consumer markets:consumers sell their labor,for which
they receive money with which they pay for the goods and
services they buy.
• Government markets:The government uses tax revenues to
buy goods from resource,manufacturer, and intermediary
markets and uses these goods and services to provide public
services.
 The Core Concepts in Marketing
7.Marketers and Prospects:
• A marketer is someone seeking one or more prospects
who might engage in an exchange of values.
• A prospect is someone whom the marketer identifies as
potentially willing and able to engage in an exchange of
values.
• Marketing is a social and managerial process by which
individuals and groups obtain what they need and want
through creating,offering,and exchanging products of
value with others.
• Marketing Management is the process of planning and
executing the conception,pricing,promotion, and
distribution of ideas,goods, and services to create
exchanges that satisfy individual and organizational goals.
 The Core Concepts in Marketing
• Marketing management is a process involving
analysis,planning,implementation,and control of
programs aimed at producing a desired level and mix of
transactions with target markets.
• It has the task of influencing the level,timing,and
composition of demand in a way that will help the
organisation achieve its objectives.
• It is essentially demand management.
• Within market planning,marketers must make decisions
on target markets,market positioning,product
development,pricing,distribution channels,physical
distribution,communication and promotion.