MARKETING

MANAGEMENT
MODULE-1
 Module I: Introduction to
Marketing
Outline:-
1. Meaning of marketing
2. Core concepts of marketing
3. Evolution and its role in the changing business
environment
4. Various marketing management philosophies,
viz., the production concept, the product
concept, selling concept and the marketing
concept
5. The newer definitions of marketing- societal
marketing and relationship marketing.
1.Meaning of marketing

• Market: Concept & Cases, Types

• Marketing: Concept, system, Scope
• Marketing management: Meaning,
Market place & space,Structure of
flow
 MARKET
• Traditionally a place where buyers &
sellers meet.
• Transactions occurs

“Market means that customers who have

purchased or want to purchase a
certain product or service.”

Market = Population+ Purchasing Power +

Purchasing Need
UNDERSTANDING OF MARKET BY
KODAK
 THE NOKIA CASE
• Cannibalize own product /crash concept
• Extending a branded product’s life span
• Consumer as per Nokia –
They don’t like common colors ,same shapes No
matter how renowned the brand
Skim the mkt 1st ,then kill the product & play
with volumes ultimately killing the product (56
models in 2006)
Nokia spent 9.5% of revenues in R&D in 2006.
Have lot many models for different types of
customers
 MTR-Mavalli Tiffin rooms
MTR
• South,North,snacks,main course,icecream etc. Be it an
Instant mix or a Ready to Eat dish, pickles or soups, all MTR
products are known for their "home-cooked" taste.
• Namma MTR-Restaurant in bang lore allows customers to
experience the wide MTR range. Split into three sections.
 Entire range of products.
 Section is a novel concept kitchen where customers can
interact with specialist chefs to learn about MTR products
and watch live demonstrations. This concept kitchen also
works as an ideal platform for feedback, allowing them to
understand and address consumer needs.
 The third section offers a variety of fast-food either eat
there or get a quick take-away from the express counter.
 PIZZA HUT INDIA
• Entered in 1996
• Created Indian toppings & vegetarian
pizzas too.
 Market
Consumer Market
Business Market
Global Market
Nonprofit and Government Markets
Consumer Market -The aim of buying is to
consume for their own or somebody who has
something to do with in consumer market.

Business market-Business buyers buy goods

for their utility in enabling them to make or
resell a product to others for the purpose
of making profits.
 Global Market -Companies selling
their goods and services in the
global marketplace face additional
decisions and challenges.

Nonprofit and Government Markets

Companies selling their goods to
nonprofit organizations such as
churches, universities, charitable
organizations, or government
agencies
 MARKETING
As an exchange process-
MARKETING is an organizational function
& a set of process for creating,
communicating,& delivering value to
customers & for managing customer
relationships in ways that benefit the
organization & its stake holders.
As a societal process-
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.
 Case in Point

 CREATING
 COMMUNICATING
 DELIVERING
 MANAGING RELATIONS
 Simple Marketing
System
Communication

Goods/services
Industry Market
(a collection (a collection
of sellers) Money of Buyers)

Information
WHAT IS MARKETED
PRODUCT
OR
SERVICE
OR
SOLUTION
OR
BRAND
OR
VALUE
 Scope of Marketing

Goods Services
Experience Events
Persons Places
Properties Organizations
Information Ideas
 MARKETING
MANAGEMENT
MARKETING MANAGEMENT -The analysis, planning,
implementation, and control of programs designed to
create, build, and maintain beneficial exchanges with
target buyers for the purpose of achieving organization
objectives.

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.

•
 Marketplace and
Market space
•Marketplace is physical, as when one goes
shopping in a store,
•Market space is digital, as when someone
shopping on the internet.
 Structure of Flows
Resources Resources
Money Resource Money
markets
Services, Taxes,
money goods
Services, Taxes
money
Manufacturer Government Consume
markets markets markets
Taxes,
goods Services
Services, Taxes,
money goods
Money Money
Intermediary
Goods, services markets Goods, services
2.CORE CONCEPTS
OF MARKETING
Core Concepts of Marketing
Needs, Wants, and Demands
Segmentation, targeting & positioning
Product or Offering
Value and Satisfaction
Exchange and Transactions
Relationships and Networks
Marketing Channels
Supply Chain
Competition
Marketing Environment
Needs, Want, and
Demands
• Needs describe basic human
requirements. state of felt
deprivation including physical,
social, and individual needs.

• Want are shaped by one’s

society, culture and
individual personality.

• Demands are wants for

specific products backed by
ability to pay.
 Segmentation Target
market & positioning
• Segmenting-Breaking down the diverse
markets into manageable segments.
• Targeting-Choosing specific segments as
the focal point for marketing efforts .
• Positioning- Aligning the marketing mix
to yield distinctive appeal for a brand .
 Product/Offerings
• Address needs by putting forth a
value proposition, set of benefits
they offer to customers to satisfy
their needs.
• A brand is an offering from a known
source.
 Value and satisfaction
Value –Perceived tangible & intangible Benefits & costs to
customers
Benefits
•functional benefits
•emotional benefits
Costs
•Monetary costs
•Time costs
•Energy costs
•Psychic costs
VALUE=QUALITY+SERVICE+PRICE(QSP)
Value and satisfaction
benefits
Value = -----------------
costs
Exchange and transaction

• “Exchange” is the act of obtaining a

desired object from someone by
offering something in return.
• “Transaction” is a trade between two
parties that involves at least two things
of value, agreed-upon conditions a time
of agreement, and a place of agreement.
Relationship marketing

The process of creating, maintaining,

and enhancing strong, value-laden
relationships with customers and
other stakeholders.
 Marketing channels
1. Communication
channels(Ads,telephone..)
2. Distribution
channels(wholesellers,retailers..)
3. Service
channels(warehouses,banks..)
 SUPPLY CHAIN
• Describes a longer channel stretching
from raw materials to components to
final products that are carried to
final buyers.

• Represents a value delivery systems.

 COMPETITION

All actual & potential rival offerings

& substitutes that a buyer might
consider.
 MARKETING
ENVIRONMENT
• Task environment- includes the immediate actors
like company, suppliers (material &
service) ,distributors, dealers & target
customers) involved in producing, distributing &
promoting the offering.

• BroadEnvironment-
Demographic,economic,physical,technologies,poilti
cal-legal,social-cultural
3.EVOLUTION OF
MARKETING &
ITS ROLE IN THE
CHANGING
BUSINESS
 Marketing -An Ancient Art, an Omnipresent
Entity, a Vital Function of Business.

 Business = Marketing
• Business has just two basic functions: marketing and
innovation’. – Peter Drucker
 Entrepreneurial part of business
• ‘Marketing is the logic of business’. - Peter Drucker
 Strategic part of business
• Represents the real strategic activity in a business
and the real strategic function of management.
 Intricate for practice
• ‘Marketing is fast-paced and dynamic; it is highly
visible; it is essential to the survival of
organizations; it is rewarding to its successful
practitioners’. - Stanton et al.
How business & mktg are
changing
• Changing technology
• Globalization
• Deregulation
• Privatization
• Customer empowerment
• Customization
• Heightened competition
• Industry convergence
• Retail transformation
• Disintermediation
1. Changing technology-
• Creation of information age
• Mass production & mass consumption, stores stuffed with
inventory,ads,rampant discounting is there.
• Electronic networks,extranets & internet & soft wares
are needed to manage all.
2. Globalization-
• Technological advances leads co.s to market in other
countries and it becomes easier for consumers as well.
3. Deregulation-
• Deregulations to create greater competition & growth
like airlines in India.
4. Privatization-
• To increase efficiency
5. Customer empowerment-
• Higher quality, service and some customization.
• Time & convenience
• Greater price sensitivity & information
6. Customization-
• Ordered by customer
• Enables interaction with customers personally ,to personalize
message, services & the relationships.
7. Heightened competition-
• Domestic & foreign brands
• Shelf space issue
8. Industry convergence-
• Companies are recognizing new opportunities lie at the
intersection of two or more industries.
9. Retail transformation-
• Entertainment in stores
• Growth in all terms.
10. Disintermediation-
• Online dotcoms-AOL, Amazon, Yahoo, EBay…
 4.MARKETING
PHILOSOPHIES
1. The production concept
2. The product concept
3. The selling concept
4. The marketing concept
 Company Orientations
Towards the
Marketplace
Consumers prefer products that are
Production Concept widely available and inexpensive

Consumers favor products that

Product Concept offer the most quality, performance,
or innovative features

Consumers will buy products only if

Selling Concept the company aggressively
promotes/sells these products

Focuses on needs/ wants of target

Marketing Concept markets & delivering value
better than competitors
Starting
point Focus Means Ends

Existing Selling and Profits through

Factory products promotion sales volume

(a) The selling concept

Customer Integrated Profits through

Market needs marketing customer
satisfaction

(b) The marketing concept

 MARKETING MIX
• It is the tools that an organization
employs to pursue its marketing
objectives in the target market
 The Four Ps
The Four Cs
Marketing
Mix
Place
Product

Convenience
Customer Price Promotion
Solution

Customer Communication
Cost
 Product and service
• Product---Anything that can be offered to a
market for attention, acquisition, use or
consumption that might satisfying a want or
need. It includes physical objectives, services,
persons, places, organizations and ideas.
• Service--- any activity or benefit that one
party can offer to another that is essentially
intangible and does not result in the ownership
of anything.
 Price
• Takes into account profit
margins and the probable
response of customers and
competitors.
 Place
• Where will product be sold and how
will it get there? (DISTRIBUTION)
 Promotion
• Advertising, publicity, public
relations…
Product Price Place Promotion
Functionality List price Channel Advertising
Appearance Discounts members Personal Selling
Quality Financing Market Public Relations
Packaging Leasing coverage Media
Brand Location Budget
Logistics
Warranty
Service
 5.Newer definitions of
marketing
• Societal marketing
• Relationship marketing
 Societal marketing-
Selling Positive Behavior
• An enlightened marketing concept that
holds that a company should make good
marketing decisions by considering
consumers' wants, the company's
requirements, and society's long-term
interests.
• Closely linked with the principles of
corporate social responsibility and of
sustainable development.
 Societal marketing

• Asks firms to consider the ethical

consequences of their actions and
the collective needs of society at the
same time they work to identify and
satisfy customer needs.
INCREDIBLE
INDIA

TATA TEA
JAAGO RE

IDEA(ALL ADS
NEW1)
• McDonalds have added healthier
items like salads to their menu & is
using recyclable packaging
• Ecological concern ,Cause related
mktg…
 RELATIONSHIP
MARKETING
• The 1990’s is an era of relationship marketing.
• Relationship marketing extends marketing
practice, and the philosophy of the marketing
concept.
• Building stronger, long-term relationships with
customers; and, building relationships with our
own business partners.
• Idea of extending marketing relationships to business
partners. 
• The implication is that developing strong relationships with our
business partners (suppliers and distributors) will lead to
better channel arrangements, higher levels of cooperation,
less conflict, and increased efficiency.
Includes the people that supply us with goods and services, and
the channel intermediaries that may buy goods and services
from us for resale to their own customers.

• can develop strategies that are in the best interest of

everyone in the entire channel of distribution. As a result,
everyone wins.
• Decisions are not made to optimize our own power and position
within the channel; rather, decisions are made to optimize
efficiency for the entire channel itself.