MARKETING MANAGEMENT

MODULE 1
 An Introduction
• Most of the people define marketing as selling or advertising. It is true
that these are parts of the marketing. But marketing is much more than
advertising and selling. In fact marketing comprises of a number of
activities which are interlinked and the decision in one area affects the
decision in other areas.
• Marketing management is ‘the art and science of choosing target
markets and getting, keeping, and growing customers through creating,
delivering, and communicating superior customer value’. It relies
heavily on designing the organizations offering in terms of the target
markets needs and desires and using effective pricing, communication
and distribution to inform, motivate and service the market.
• Marketing management is concerned with the chalking out of a definite
programme, after careful analysis and forecasting of the market
situations and the ultimate execution of these plans to achieve the
objectives of the organisation.
 Evolution of Marketing
• Once upon a time, when the needs and wants were satisfied by the barter
trade, there was no need for marketing.
• Two parties interested in each other’s poducts simply negotiate with each
other regarding the quantities of each product that must be exchanged.
• Even at the time of industrial revolution when the demand for different
products was far greater than the supply, even in that scenario there was no
need for marketing.
• In fact producers were focussed on production aspects. With the
advancement of production technology and the increase in competition, the
focus shifted through various functional areas towards marketing. The
evolution of marketing can be easily understood by understanding the
company orientations toward the market place.
Various stages of evolution of Marketing
 Various stages of evolution of Marketing
• Production Era: ‘Cut costs. Profits will take care of
themselves’.
• Product Era: ‘A good product will sell itself’.
• Sales Era: ‘Selling is laying the bait for the customer’.
• Marketing Era: ‘The customer is King!’.
• Relationship Marketing Era: ‘Relationship with customers
determine our firm’s future’.
 What is Marketing
• According to American management association: “Marketing
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 objectives”.
• Thus marketing may be defined as those as those business
functions which are most directly and primarily concerned with
three activities
 The recognition of the demand,
 The stimulation of demand
 The satisfaction of demand
 What is Marketing
 Marketing is the process that seeks to influence voluntary exchange transactions
between a customer and a marketer. —William G. Zikmund and Michael d’Amico
 Marketing is the process of discovering and translating consumer needs and wants
into products and services, creating demand for these products and services and then
in turn expanding this demand. —H.L. Hansen.
 Marketing is the business process by which products are matched with markets and
through which transfer of ownership are affected. —Edward W. Cundiff
 Marketing consists of the performance of business activities that direct the flow of
goods and services from producers or suppliers to consumers or end-users. —
American Marketing Association
 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. —Philip Kotler
 What is Market
The term “market” originates from the Latin word “Marcatus” which means
“a place where business is conducted.” A layman regards market as a
place where buyers and sellers personally interact and finalize deals.
According to Perreault and McCarthy, market is defined as a group of
potential customers with similar needs or wants who are willing to
exchange something of value with sellers offering various goods and/or
services to satisfy those needs or wants. Of course, some negotiation will
be needed. This can be done face-to-face at some physical location (for
example, a farmer’s market). Or it can be done indirectly through a
complex network that links middlemen, buyers and sellers living far
apart.
 What is Market
Definition: A market is defined as the sum total of all the
buyers and sellers in the area or region under consideration.
The area may be the earth, or countries, regions, states, or
cities.
The term “Market” does not refer to a particular place as such
but it refers to a market for a commodity or commodities. It
refers to an arrangement whereby buyers and sellers come in
close contact with each other directly or indirectly to sell and
buy goods.
 What is Market
Definition: A market is defined as the sum total of all the
buyers and sellers in the area or region under consideration.
The area may be the earth, or countries, regions, states, or
cities.
The term “Market” does not refer to a particular place as such
but it refers to a market for a commodity or commodities. It
refers to an arrangement whereby buyers and sellers come in
close contact with each other directly or indirectly to sell and
buy goods.
What is Market
 Nature of Marketing
1. Marketing is both consumer oriented and competitor
oriented.

2. Marketing is a dynamic activity because a number of

variables keep changing.
3. Long term objective of marketing is profit maximization
through customer satisfaction.
 Nature of Marketing
4. Marketing is an integrated function and all the marketing
decisions are linked with each other.
5. Marketing is the core functional area of modern day
organizations and is the driving force behind every
organization.
6. Marketing is interlinked with other functional areas of the
organization.
 Objectives of Marketing
 Customer Satisfaction: The primary motive of a company is to satisfy
the needs of customers.
 Ensure Profitability: Every business is run for profit, and so goes for
marketing.
 Building Organizational Goodwill: It portrays the product and the
company’s positive image in front of the customers.
 Create Demand: It works for generating the demand for products and
services among the customers.
 Increase Sales Volume: It is a rigorous process of increasing the sale of
product or service to generate revenue.
 Enhance Product Quality: Marketing initiates customer feedback and
reviews to implement them for product enhancement.
 Create Time and Place Utility: It makes sure that the product or service
is available to the consumer whenever and wherever they need it.
 Fundamentals of Marketing
• Need: It is state of deprivation of some basic satisfaction. eg.- food, clothing,
safety, shelter.
• Want: Desire for specific satisfier of need. eg.- Indians needs food – wants
paneer tikka/ tandoori chicken.
• Demand: Want for a specific product backed up by ability and willingness to buy.
• Products or Offerings: A product is anything that can he offered to a market to
satisfy a need or want. Usually, the word product suggests a physical object, such
as a car, a television set or a bar of soap. However, the concept of product is not
limited to physical objects - anything capable of satisfying a need can be called a
product.
• Value, Cost and Satisfaction: Value is the consumer’s estimate of the product’s
overall capacity to satisfy his or her needs. Satisfaction is the result of the
comparison of perceived (actual) performances and expectations.
• Exchange and Transaction: Exchange is the act of obtaining a desired object
from someone by offering something in return. A transaction consists of a
trading of values between two parties.
 IMPORTANCE OF MARKETING
• Marketing is important not only for organizations but for individuals, society and
economy as a whole. Financial success often depends on marketing ability. Finance,
operations, and other business functions will not really matter if there isn’t
sufficient demand for products and services so the company can make a profit.

IMPORTANCE OFMARKETING TO COMPANIES

Sound marketing is critical to the success of the organisation in the following
ways:
 Helps in income generation.
 Helps in planning and decision-making.
 Helps in distribution.
 Helps in exchanging information.
 Helps to adapt to changing environment.
 Expands global presence.
 Helps to earn goodwill.
 IMPORTANCE OF MARKETING
IMPORTANCE OFMARKETING TO CONSUMERS
 Provides quality products.
 Provides variety of products.
 Improves knowledge of consumers.
 Helps in selection.
 Consumer satisfaction.

IMPORTANCE OFMARKETING TO SOCIETY

Marketing bridges the gap between firm and society.
 Provides employment.
 Raises standard of living.
 Creates utilities.
 Reduces costs.
 Solves social problems.
 Makes life easier.
 Enriches society.
 IMPORTANCE OF MARKETING
IMPORTANCE OFMARKETING TO ECONOMY
It stimulates research and innovation
 Saves the economy from depression.
 Increase in national income.
 Economic growth.
 Ploughing back of resources
Fundamental Concept of Marketing
 Elements of Marketing Concept
1. Exchange Concept: The Exchange concept holds that the exchange of a
product between seller & buyer is the central idea of marketing Exchange
is an important part of marketing, but marketing is a much wider concept.
2. Production Concept: The production concept is one of the oldest concepts
in business. It holds that consumers will prefer products that are widely
available & expensive. Manager of production oriented business
concentrate on achieving high production efficiency low cost & mass
distribution.
3. Product Concept: This management orientation says that if you build a
quality product and set a reasonable price, very little marketing effort is
needed to sell it. The product generates the demand "build it, and they
will come"
4. Selling Concept: This management orientation says that consumers will not
normally buy enough of a product unless it is aggressively promoted to
them.
 Elements of Marketing Concept
5. Marketing Concept: This management orientation says the major purpose
of an organization is to identify consumer needs and then adapt the
organization in a way that will satisfy the customer's needs more
effectively and efficiently than the competition. (i.e. Chain restaurants may
alter their menu in different countries)
6. Societal Concept: This management orientation focuses on satisfying
consumer's needs and demonstrating long-running concern for societal
welfare in order to achieve company objectives and attend to its
responsibilities for society. The idea is to find a balance between social
welfare, consumer needs, and company profits.
Elements of Marketing Concept
 The Exchange Process
The exchange process refers to a function where two or more parties offer
something of value to each other for s
An exchange process occurs when a person or an organization decides of
satisfying a need or want by giving some money or services or goods in
exchange. It is a simple process and thus, you enter into an exchange
relationship always.
This process expands into relationship marketing. Marketers purposefully
view the long-term relationship with their target audience and aim to
grow their business with relationship marketing. They continuously
nurture the relationship with their customers by providing them with
value.atisfying their needs.
 The Exchange Process
Exchange is the process of obtaining a desired product from someone by
offering something in return.
For exchange potential to exist, five conditions must be satisfied:
(1) there are at least 2 parties,
(2) each party has something that might be of value to the other party,
(3) each party is capable of communication and delivery,
(4) each party is free to accept or reject the exchange, and
(5) each party believes it is appropriate or desirable to deal with the other
party.
 The Exchange Process
The exchange process refers to a function where two or more parties offer
something of value to each other for s
An exchange process occurs when a person or an organization decides of
satisfying a need or want by giving some money or services or goods in
exchange. It is a simple process and thus, you enter into an exchange
relationship always.
This process expands into relationship marketing. Marketers purposefully
view the long-term relationship with their target audience and aim to
grow their business with relationship marketing. They continuously
nurture the relationship with their customers by providing them with
value.atisfying their needs.
The Exchange Process