MARKETING MANAGEMENT

2018 – 20 Batch

Term - I

02/16/22 1 Dr. HG
 Kotler on Marketing

Marketing is everywhere. Formally or

informally, people and organizations
engage in a vast number of activities that
could be called marketing. Good
marketing has become an increasingly
vital ingredient for business success. And
marketing profoundly affects our day-to-
day lives. It is embedded in every thing we
do – from the clothes we wear, to the
websites we click on, to the ads we see.

02/16/22 2 Dr. HG
 Marketing is the activity, set of institutions, and

processes for creating, communicating, delivering, and

exchanging offerings that have value for customers,

clients, partners, and society at large.

02/16/22 3 Dr. HG
 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.

02/16/22 4 Dr. HG
 PRODUCTION ORIENTATION

It is too much faith in mass production. 

 Mass production industries often feel impelled to produce all
they can.
 Actually, the declining unit cost and the rise in output is
irresistible.
 Here, mass production generates great pressure to move the
product -- with the result that selling becomes the focus and
not marketing.
 Hence, management focuses on production and distribution
efficiency.
02/16/22 5 Dr. HG
  So this concept hold that the consumer will favour those
products that are widely available and low in price.

 This may be true only under two circumstances i.e.

 Where demand for the product exceeds supply, and

 Where the product’s cost is very high and has to be

brought down through increased productivity.

02/16/22 6 Dr. HG
 PRODUCT ORIENTATION

 The management perceives that product quality holds the

key to the organisational success. 
 Interestingly, quality in most cases is as perceived by the top
management, and not by the customer. 
 Generally, the top management is often overwhelmed by the
profit possibilities of technical and R&D efforts. Hence, the
organisation denotes its energy to make continuous product
improvements.

02/16/22 7 Dr. HG
 SELLING ORIENTATION

 Here, the management, believes that success lies in

pushing the product from the production floor to the
customer.

 Hence, companies aggressively put effort in

promotion and selling rather than any other emphasis.

02/16/22 8 Dr. HG
 MARKETING ORIENTATION
 Here, the company believes if it has to attain
organisational goals.

 it needs to first identify the needs and wants of the

consumer.

 deliver the products much more efficiently and

effectively than the competitors.

 by creating, delivering, and communicating superior

customer value to its chosen target markets.

02/16/22 9 Dr. HG
 HOLISTIC MARKETING

 Holistic Marketing concept is based on the

development, design and implementation of marketing
programmes, processes, and activities that
recognizes their breadth and interdependencies. 

 The four components of holistic marketing are

relationship marketing, integrated marketing, internal
marketing and performance marketing.

02/16/22 10 Dr. HG
  Relationship marketing aims at building mutually
satisfying long-term relationships with key parties
customers, suppliers, distributors, and other
marketing partners in order to earn and retain
their business. 

 Market must create prosperity among all these

constituents and balance the returns.

02/16/22 11 Dr. HG
 Integrated Marketing – The marketer’s task is to devise
marketing activities and assemble fully integrated
marketing programmes to create, communicate, and
deliver value for consumers.
 Internal Marketing – Internal Marketing is the task of
hiring, training and motivating able employees who
want to serve customers well.
 Internal marketing requires vertical alignment with
senior management and horizontal alignment with other
departments, so everyone understands, appreciates, and
supports the marketing efforts.
02/16/22 12 Dr. HG
  Performance Marketing – Requires understanding the
financial and nonfinancial returns to business and society
from marketing activities. Eg. : market share, customer
loss rate, customer satisfaction, product quality etc.,
 Financial Accountability - Marketers are increasingly
asked to justify their investments in financial and
profitability returns.

 Recognizing that much of their firm’s market value comes

from intangible assets, particularly brands, customer base,
employee, distributor and supplier relations, and
intellectual capital.
02/16/22 13 Dr. HG
  Social Responsibility Marketing - The organization’s
task is to determine the needs, wants, and interests of
target markets and satisfy them more effectively and
efficiently than competitors while preserving or
enhancing consumers’ and society’s long-term well
being.

02/16/22 14 Dr. HG
 VALUE DELIVERY PROCESS

The value creation and delivery sequence process consists

of five parts :

1)Assessing market opportunities and customer value,

which involves environment scanning and developing
insights about customer needs, wants, and motives.

2)Choosing the value includes critical decisions pertaining

to segmenting, targeting, positioning, and branding, which
is the essence of strategic marketing.
02/16/22 15 Dr. HG
 3. Designing value relates to decision involving product /
service strategy, new offerings, and pricing.

4. Delivering value focuses on distribution and access

issues.

5. Communicating value through integrated marketing

communication, choosing among the various choices in
mass and personalized media.

02/16/22 16 Dr. HG
  Value Chain – Michael Porter proposed the value

chain as a tool for identifying ways to create more

customer value. 

 The value chain identifies nine strategically relevant

activities that create value and cost in a specific

business. These nine value creating activities consists

of five primary activities and four support activities.

02/16/22 17 Dr. HG
  Primary activities cover the sequence of bringing

materials into the business (inbound logistics)

converting them into final products (Operation)

shipping out final products (Outbound logistics)

marketing them (marketing and sales) and servicing

them (Service).

02/16/22 18 Dr. HG
  The support activities – procurement, technology
development, human resource management and
firm infrastructure are handled by specialized
departments.

 The firm’s task is to examine its costs and

performance in each value – creating activity & look
for ways to improve it.

02/16/22 19 Dr. HG
  The elements that contribute to customer value:

Product (features, brand name, design, packaging,

warranties, etc) services after the sale (Delivery,

training, maintenance) the personnel who assist in

purchase decision (helpful, knowledgeable, pleasant)

image of the brand sold (quality, strength of brand in

market place).

02/16/22 20 Dr. HG
  Costs incurred include the value of the money that

is exchanged for the product, the search time

(information establishing and comparison of

important criteria) effort cost (comparison shopping)

and psychic cost.

02/16/22 21 Dr. HG
 Core Competencies
 It refer to areas of special technical and production
expertise, distinctive capabilities to describe
excellence in broader business processes.

Competitive Advantage
 Is a company’s ability to perform in one or more
ways that competitors can not or will not match.

02/16/22 22 Dr. HG