Marketing Management
Mrs. ANANTHAVALLI S P
Assistant Professor, BBA
School of Management
KPRCAS, Coimbatore.
Unit – 1
Introduction to marketing
Contents:
Marketing- Introduction
Objectives
Scope and Importance
Types of Market
Core Concepts of Marketing
Functions of Marketing
Marketing Orientations
Marketing Environment
Marketing
• Marketing is the activity and processes for creating,
communicating, delivering, and exchanging offerings that
have value for customers, clients, partners, and society at
large.
• Marketing refers to activities a company undertakes
to promote the buying or selling of a product or service.
Marketing includes advertising, selling, and delivering
products to consumers or other businesses.
Marketing Management
• Marketing management is “planning, organizing, controlling
and implementing of marketing programs, policies, strategies
and tactics designed to create and satisfy the demand for the
firms’ product offerings or services as a means of generating
an acceptable profit.”
• According to Philip Kotler, “Marketing Management is the
art and science of choosing target markets and building
profitable relationship with them. Marketing management is a
process involving analysis, planning, implementing and
control and it covers goods, services, ideas and the goal is to
produce satisfaction to the parties involved”.
Nature of Marketing Management
• Human Activity
• Customer-Orientation
• Dynamic Process
• Marketing Planning
• Creation of Utilities (Time, Place and Form)
• Goal Oriented
• Starts and Ends with customer
• Marketing Management is an art as well as science
Objectives of Marketing Management
• Creation of Demand
• Customer Satisfaction
• Market Share
• Generation of Profits
• Creation of Goodwill and Public Image
• Creating Customers
• Satisfying Customers Needs
Scope of Marketing Management
• Setting Marketing Goals
• Selecting Target Market
• Formulating Suitable Marketing Organization
• Maintaining Healthy Relations with other Departments
• Establishing and Maintaining Profitable Relations with
Outside Parties
• Marketing Research Activities
• Sales Management
• Exercising Effective Control on Marketing Activities
Importance of Marketing
Marketing has acquired an important place for the
economic development of the whole country. It has
also become a necessity for attaining the object of
social welfare. As a result of it, marketing is
considered to be the most important activity in a
business enterprise while at the early stage of
development it was considered to be the last activity.
• Delivery of standard of living to the society
• Decrease in distribution cost
• Increasing employment opportunities
• Protection against business slump
Increase in national income
TYPES OF MARKETS
(1) Consumer markets,
(2) Industrial markets,
(3) Institutional markets, and
(4) Reseller markets
Functions of Marketing
1. Gathering and Analyzing Market Information
2. Marketing Planning
3. Product Designing and Development
4. Standardization and Grading
5. Packaging and Labeling
6. Branding
7. Customer Support Service
8. Pricing of Products
9. Promotion
10.Physical Distribution and Transportation.
11.Storage and Warehousing
Marketing Environment
Marketing activities are influenced by several factors inside
and outside a business firm. These factors or forces
influencing marketing decision-making are collectively
called marketing environment.
There are 2 kinds of Marketing Environments.
1. Micro Environment
2. Macro Environment
Micro Environment
Micro Environment: The micro environment consists of the forces
close to the company that affects its ability to serve its customers.
Company
Suppliers
Customers
Intermediaries
Competitors
Public
Macro Environment
• Macro Environment refers to those factors which are
external factors in the company’s activities and do not
concern the immediate environment. Macro Environment
are uncontrollable factors which indirectly affect the
concern’s ability to operate in the market effectively.
• Components are,
Demographic Forces
Economic Forces
Political and Legal Forces
Social and Cultural Forces
Physical Forces
Technological Forces
Marketing Orientations
Five orientations (philosophical concepts) to the
marketplace have guided and continue to guide
organizational activities:
• Production Concept
• Product Concept
• Selling Concept
• Marketing Concept
• Societal Marketing Concept
Production Concept
• The most operations-oriented
• This concept was founded during the production era of early
Capitalism in the mid-1950s.
• During that era, businesses concerned themselves primarily
with production, manufacturing, and efficiency issues.
• The basic idea of this concept is that businesses will want to
produce widely cheap products in maximum volumes to
maximize profitability and scale.
• Such an approach is probably most effective when a business
operates in very high growth markets or where the potential
for economies of scale is significant.
Cont.. Production Concept
• The problem with this concept is that businesses run the
danger of not creating quality products and might have
customer service problems with impersonal production.
• We can recall a historical example that Ford automobiles
manufactured a ton of cars through its assembly line but all
came out the same without customizations or user input.
Product Concept
• Focuses more on the customer
• Potential customers favor products, that offer quality,
performance, or innovative features.
• This marketing concept believes in potential customers and
how their brand loyalty is closely tied to options of products
and the quality of those products.
• This is seen most commonly with our obsession with Apple
products and looking forward to their new gadgets and
features upon launch.
• Businesses will concentrate on making superior products
and improving them over time.
Selling Concept
• The selling concept is the bread and butter of marketing
efforts as it believes that people will not buy enough of a
business’s product so businesses need to persuade them to
do so.
• In today’s marketing, we know that selling is not the way to
full marketing success.
•A lot of the time we also see this action used when a
business has to deal with overcapacity and needing to sell
what they make rather than what the market needs or wants.
• Businesses that choose to use this marketing concept must
be good at finding potential customers and emotionally sell
them on the benefits of their “not needed product.”
Marketing Concept
• The marketing concept is the concept of competition.
• It believes that the success of a business depends on the
marketing efforts that deliver a better value proposition than
its competitors.
• This concept focuses on the needs and wants of target
marketing as well as delivering value better than its
competition.
• Competitive advantage is key.
Example:
We also can look at modern-day competition between
Pepsi and Coke who sell similar items but their value
propositions are completely different.
Societal Marketing Concept
• The societal marketing concept is the most progressive and
modern-day applicable marketing mind set to have.
• It is a marketing concept that believes in giving back to
society by producing better products that help the world be
a better place.
CORE CONCEPTS OF MARKETING
• Needs
• Wants
• Demand
• Customer Value
• Exchange
• Customer and Consumer
• Customer Satisfaction
• Customer Delight
• Customer Loyalty
• Marketing V/s Market.
Needs
Needs are the basic requirements which human beings
require for existence.
Needs can be further classified into 5 Types.
Stated Needs (can state what is his need)
Real Needs (should identify the actual need from stated)
Unstated Needs (benefits that are not asked by customer)
Delight Needs (more than what he needs)
Secret Needs (does not want to disclose but should prove)
Wants
• The wants are a step ahead of needs and are largely dependent
on the human needs.
• Wants are designed according to the taste and preferences of
the society.
• Needs already exists in the market; however, wants may be
created by the marketers.
E.g. To have a food is a basic need of human beings but to
have biscuits for food is a want created by the marketers.
Demand
• A demand is generated when a customer is willing to buy a
particular product and has an ability to pay for it.
• A company should study not only how many people want
their product but also how many would actually afford to buy
the product.
E.g. Many people would be desirous to buy Audi car;
however, there is only a small segment which can afford to buy
it which reflects the demand for Audi car in the market.
• Demand = Willingness to pay + Ability to pay
Customer Value
• A product or services is successful when it delivers value and
satisfaction to the buyers. Value is usually a combination of quality,
service, and price.
• Value changes based on time, place, and people in relation to changing
environmental factors.
• Companies try to figure out the list of add-on benefits that they can
provide based on the taste and preferences of the customers.
• A high value product not only helps the company to generate new
customers but also helps to retain the older ones.
Eg. Online parcel tracking facility provided by the courier
companies without any additional cost can be one of the best examples of
customer value.
Exchange
• Marketing occurs when individuals decide to satisfy needs and
wants through exchange.
• Marketing helps to create a business environment where exchange
of value can take place.
For an exchange to happen:
(i) There should be at least two parties involved for any kind of
exchange.
(ii) Each party must have something or other that interests the other
party.
Difference between Marketing and Selling
Marketing Selling
• Concept: Target Market > Customer • Concept: Target Market >
Needs > Integrated Marketing > Customer Needs > Integrated
Profit through sales volume. Marketing > Profit through
• Focuses on customer’s needs. customer satisfaction.
• Customer enjoys supreme • Focuses on seller’s needs.
importance. • Product enjoys supreme
• Product Planning and Development importance.
to match products with markets.
• High pressure selling to sell goods
• Integrated approach to achieve long already produced.
– term goals.
• Fragmented approach to achieve
• Converting customer’s needs into immediate gains.
products.
• Converting products into cash.
• Profits through customer’s
satisfaction. • Profits through sales volume.
THANK YOU
