MARKETING

MANAGEMENT
KMBN 105

Dr. Manu Priya

manupriyagaur@akgim.edu.in
gaurmanuypriya@gmail.com
Contact: 8373950686
 Marketing Management
Unit 1- (6 hours)
 Introduction: Nature and scope of marketing,
 Various marketing orientations,
 Need, Want, Demand,
 Elements of Marketing mix,
 Customer value and the value delivery process.
 Understanding Consumer Behavior:
 Buying motives,
 Factors influencing buying behavior,
 buying habits,
 Stages in consumer buying decision process,
 types of consumer buying decisions.
 WHAT IS MARKETING ?

• ANY INTERPERSONAL AND

INTERORGANISATIONAL
RELATIONSHIP INVOLVING AN
EXCHANGE IS MARKETING .
WILLIAM J.STANTON
WHAT IS MARKETING ?

The essence of Marketing is a transaction -

an exchange- intended to satisfy human
needs and wants.There are three elements in
the marketing process :
(A) MARKETERS
(B) WHAT IS BEING MARKETED
(C) TARGET MARKET
WHAT IS MARKETING ?

Marketing is a social process by which

individuals and groups obtain what they need
and want through creating and exchanging
products and value with others.
PHILIP KOTLER

This definition includes following core concepts : NEEDS ,WANTS and

DEMANDS --- PRODUCTS------VALUE & SATISFACTION---EXCHANGE &
TRANSACTION---MARKETS & MARKETERS
What is marketing?
As per American Marketing 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
goals”.
PRODUCTS / OFFERS / SATISFIERS /
RESOURCES
 Anything that can be offered to someone
to satisfy a need or want is a product .

 Product refers to physical object

 Services refer to intangible object

Customers Needs/
Wants/Demand
(Need/Want)
 “DEMAND” could be:
 Negative demand – Major market dislikes product,
hence try to avoid. eg.- injections.
 No Demand – Constant unaware and uninterested in
product. eg.- some educational courses, Insurance.
 Latent Demand – Need exists, not fulfilled by current
products. eg.- ATM, mobile.
 Declining demand – Demand decreases over period
of time. eg.- pagers, scooters.
 Irregular Demand – Seasonally. eg.- fans, raincoat.
 Full Demand – Good volume of business. eg.- tooth
paste, most of FMCG items.
 Overfull Demand – Demand greater than ability to
handle. eg.- VSNL sim card.
 Unwholesome Demand – Unwholesome product. eg.-
cigarettes, narcotic drugs.
 What all can be Marketed?
What can Marketed Example
 Goods  Car, TV sets, Machines, Packed food
 Services  Taxi, Airline, Hotel, Banking
 Event  Trade Fair, World cup, Reality Shows
 Experience  Walt Disney, Water Park, Tourism
 Person  Celebrity, Politicians, Authors, Magicians
 Place  State (Rajasthan) Monuments (Taj Mahal)
 Properties  Real Estate
 Organizations  WTO, UNESCO
 Information  News channel, Discovery Channel
 Idea  “Do not Drink & Drive”
Nature of Marketing
 Exchange is the essence of marketing.
 Marketing is customer/consumer oriented.
 Marketing starts and ends with
customer/consumers.
 Marketing is goal oriented and the goal being
profit maximization through satisfaction of human
needs.
 Marketing is science as well as art.
 Nature of Marketing ……….
 Marketing is a guiding element of business (it tells

what, when, how to produce).

 Marketing is system.

INPUT PROCESS OUTPUT

 Marketing is a process, i.e. series of interrelated
functions.
 Marketing is an Economic Function
 Marketing is a Legal Process by which Ownership
Transfers
 Marketing is a Managerial function
Scope OF Marketing
Roles of marketing
main roles:
• advertising (advertising and promotion managers)
• selling (sales representatives/sales force)

but also:
• product development
(brand and product managers)
• packaging
(packaging designers)
• pricing
(pricing specialists)
• distribution
(sales personnel)
MARKETING OBJECTIVES
 Market size and share - to increase market share or sales.
 Position in market - to focus on a particular section (segment) of the
market and note its characteristics.
 Product range and innovation - to introduce new products to the
range.
 Developing brand loyalty - to develop ways of gaining customer loyalty
and repeat purchases.
 Aiming to survive to build a customer base that is big enough to make
the business secure.
 Widening product appeal - to move into new sections (segments) of
existing markets or enter new markets.
 Corporate image - to use marketing to convey a certain corporate
image. For example, the firm may stress the ethical nature of the
business or a degree of environmental responsibility.
 Diversification - developing new products in new markets.
IMPORTANT FUNCTIONS OF MARKETING
 Gathering and Analyzing Market Information:
 In what quantity?
 At what price?
 When do they want (it)?
 What kind of advertisement do they like?
 Where do they want (it)?

 Marketing Planning:
In order to achieve the objectives of an organisation with regard to its marketing, the
marketers chalk out his marketing plan.

 Standardization and Grading:

Standardization refers to determining of standard regarding size, quality, design, weight,
colour, raw material to be used, etc., in respect of a particular product. By doing so, it is
ascertained that the given product will have some peculiarities.

 Packaging and Labelling:

Packaging aims at avoiding breakage, damage, destruction, etc., of the goods during transit
and storage. Packaging facilitates handling, lifting, conveying of the goods. Many a time,
customers demand goods in different quantities. It necessitates special packaging. Packing
material includes bottles, canister, plastic bags, tin or wooden boxes, jute bags etc.
 Product Designing and Development:
Product designing plays an important role in product selling. The company whose product
is better and attractively designed sells more than the product of a company whose design
happens to be weak and unattractive.

 Branding:
Every producer/seller wants that his product should have special identity in the market. In
order to realize his wish he has to give a name to his product which has to be distinct from
other competitors.

 Customer Support Service:

Customer is the king of market. Therefore, it is one of the chief functions of marketer to
offer every possible help to the customers. A marketer offers primarily the following
services to the customers:
(i) After-sales-services
(ii) Handling customers’ complaints
(iii) Technical services
(iv) Credit facilities
(v) Maintenance services
CORE CONCEPTS OF
MARKETING
EXCHANGE AND TRANSACTION

 Exchange is the act of obtaining a desired

product by offering something in return .
 Exchange takes place when 5 conditions are satisfied:
(a) Two parties should be there
(b) Each party must have something of value to the other

(c) Each party is capable of communication & delivery

(d) Each party is free to accept or reject the offer

(e) Each party believes that it is appropriate to deal with

the other party
EXCHANGE AND TRANSACTION

 Exchange is a process rather than event.

It is a value creating process because it
normally leaves both parties better off.
 A transaction is a trade of values between
two or more parties ( A BARTER
TRANSACTION OR A MONETARY
TRANSACTION ).
WHAT IS 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.
WHAT IS MARKETING ?

 Marketing is the management process

which identifies, anticipates, and
supplies customer requirements
efficiently and profitably.
 In other words, it is the process of
understanding, creating, and delivering
profitable value to targeted customers
better than the competition.
A SIMPLE MARKETING SYSTEM

Communication

Goods & Services

Industry Market
Money

Information/Feedback
MARKETING SYSTEM

 Marketing is concerned with the flow of

goods and services from the points of
production to the points of consumption.

 There is a systematic arrangement of

these functions of marketing to move the
goods and services to the needy persons.

 This system is essential to the creation of

time, place and possession utilities.
MARKETING SYSTEM
 A dynamic marketing system must be
willing to undertake the following specific
activities :
1. Define market area.
2. Research consumer wants
and needs.
3. Develop and redevelop product /
service.
4. Select, train, motivate and control
human
resources.

5. Develop sales approach and advertising

BUSINESS IS MARKETING

 Marketing can not be considered as a

separate function , it is the whole
business, seen from the point of view of
its final results.................that is
profit,through customer satisfaction

PETER DRUCKER
WHAT IS MARKETING MANAGEMENT
?
 Marketing Management is the analysis,
planning, implementation and control of
programs designed to create, build and
maintain beneficial exchanges and
relationships with target markets for the
purpose of achieving Organisational
objectives.
EVOLUTION OF MARKETING
MANAGEMENT
 Marketing management has evolved
through following stages :
 (1) Production Orientation Stage
 (2) Sales Orientation Stage
 (3) Marketing Orientation Stage
 (4) Social Responsibility & Human

Orientation Stage
COMPANY ORIENTATION FOR
MARKETING ACTIVITIES

 Marketing Management can be defined as the

effort to achieve desired EXCHANGE
outcomes with TARGET MARKETS.
 Now the question arises :
(1) What philosophy should guide the
marketing activities?
(2) What weights should be given to the
interests of the organisation,the customers
and the society?
MARKETING CONCEPTS

 There are FIVE competing concepts under

which organizations conduct their
marketing activities:
 The Production Concept
 The Product Concept
 The Selling Concept
 The Marketing Concept
 The Societal Marketing Concept
(1) THE PRODUCTION CONCEPT

Company

Produce more & more

Produce Consumers
Sell
Practically sells itself
THE PRODUCTION CONCEPT

 Consumers will favour those products

that are widely available and low in cost.

 Therefore increase production and cut

down costs.

 And build profit through volume.

(2) THE PRODUCT CONCEPT

Practically sells itself,if

Produce it gives most quality for
Quality money
Products
Consumers
Sell

Buyers admire well-made products and can

appraise product quality and performance.
THE PRODUCT CONCEPT

 Consumers will favour those products

that offer the most quality, performance,
or innovative features.
 Therefore, improve quality, performance
and features.
 This would lead to increased sales and
profits.
(3) SELLING CONCEPT

 Consumers have normal tendency to resist.

Aggressive selling &

Produce promotion efforts
Sell it Consumers

Making sales becomes primary function and

consumer satisfaction secondary .
THE SELLING CONCEPT

 Consumers , if left alone , will not buy

enough of company’s products.

 Therefore, promote sales aggressively.

 And,build profit through quick turnover.

(4) MARKETING CONCEPT

 “ LOVE THE CUSTOMER , NOT THE

PRODUCT ”

Learn what they

want(MR) Produce it
Consumers
Market it

Sell what they want(Satisfy

needs of customers)
THE MARKETING CONCEPT

 The key to achieving organizational goals

consist in determining the needs and
wants of target markets and delivering the
desired satisfactions more effectively and
efficiently than competitors.
 And build profit through customer
satisfaction and loyalty.
(5) THE SOCIETAL MARKETING
CONCEPT
 It is Marketing Concept (+) Society’s well
being.
 Balancing of following three considerations
while setting marketing policies :
-Customer’s want satisfaction
-Society’s well being
-Company’s profits
THE SOCIETAL MARKETING
CONCEPT

 The societal marketing concept holds that the

organization’s task is to determine the needs,
wants, and interests of target markets and to
deliver the desired satisfactions more
effectively and efficiently than competitors in
a way that preserves or enhances the
consumer’s and the society’s well being.
- It addresses conflicts between
consumer’s and firm’s short run wants and
long term welfare.