Marketing Management: Introduction

1 Chapter Marketing Management
st
Introduction to Marketing
By
Asst Prof. Venkatesh.N
Koshys Institute of Management Studies
Meaning of Marketing
Meaning The word market is derived form the Latin
word Marcatus meaning goods or trade or a place
where business is conducted. The term marketing is
defined as a business activity planned at satisfying to a
reasonable extent, consumer or customer needs and
wants, generally through an exchange process.
6/12/15
Koshys Institute of Management

Studies by Venkatesh.N
Definition of Marketing
Marketing has been defined in various ways
the definition that serves our purpose best is as
follows; Marketing is a social &
managerial process by which individuals

& groups obtain what they need & want
through
creating,
offering,
&
exchanging products of value with
others.
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Marketing Management
The American Marketing Association (AMA)
Marketing management is the process of planning
and executing the conception, pricing, promotion, &
distribution of ideas, goods, & services to create
exchanges that satisfy individual and organizational
goals.
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The Goal of Marketing is:
To attract new customer by promising superior

value, and to keep current customers by delivering
satisfaction.
To satisfy the customer
To increase profits for the growth of the business:the marketing department is the only department
which generates revenue for the business.
To increase the quality of life of people.
To create good image.
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Contd
Marketing, more than any other business
function, deals with customers.
To generate customer base for the business:the marketing manager must attract more
and more customers to buy the firms
products and services this will also result in
to increased sales.
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Marketing Defined
Many people think of marketing only as
selling and advertising.
Selling and advertising are only the tip of the
marketing ice-berg.
Marketing is one of three key core functions
that are central to all organizations.
Marketers act as the customers voice within
the firm and marketers are responsible for
many more decisions than just advertising or
sales:
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Contd
To explain marketing definition, we examine
the following important terms :
Needs, wants, and demands
Products and services
Value, satisfaction and quality
Exchange, transactions, and relationships
Markets
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Core Marketing Concepts
Needs, Wants, and Demands

Needs:
The most basic concept underlying marketing is
that of human needs.
Human have many complex needs:
Physical needs for food, clothing, and safety
Social needs or belonging and affection
Individual needs for knowledge and self
expression
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10
Contd
Wants:
Want are the form taken by human needs as they are
shaped by culture and individual personality.
People have almost unlimited wants but limited resources.
They want to choose products that provide the most value
and satisfaction for their money.
Demands:
When backed by buying power, wants become demands.
Consumers view products as bundles of benefits and
choose products that give them the best bundle for their
money
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11
Products and Services

Product:
Anything that can be offered to a market to satisfy a
need or want.
The concept of anything capable of satisfying a need
can be called a product.
Services:
product is not limited to physical objects In addition
to tangible goods, products also include services,
which are activities or benefits offered for sale that
are essentially intangible and do not result in the
ownership of anything.
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12
Values, Satisfaction, and Quality

Values:
Customer value is the difference between the values
the customer gains from owning and using a product
and the costs of obtaining the products.
Customers frequently do not judge product value and
costs accurately or objectively. They act on perceived
value.
Satisfaction:
Customer satisfaction depends on a products
perceived performance in delivering value relative to
a buyers expectation.
If the products performance falls short of the
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customers expectations,
buyer is dissatisfied. 13
Studies by the
Venkatesh.N
Contd.
Quality:
Customer satisfaction is closely linked to quality.
Quality has a direct impact on product
performance.
Quality can be defined as freedom from
defects.
TQM programs designed to constantly improve
the quality of products, services, and marketing
processes.
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14
Exchange, Transactions, and Relationships

Exchange :
The act of obtaining a desired(most wanted)
object from someone by offering something in
return
Transaction :
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.
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15
Contd
Relationship marketing :
The process of creating, maintaining, and
enhancing strong, value loaded relationships
with customers and other stakeholders
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16
Markets
The set of all actual and potential buyers of a product
or service
Communication
Industry
(a collection of
sellers)
Products / Services
Market (a collection
of buyers)
Money
Information
A simple marketing system
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17
Push and Pull Strategies

Push
Sales force and
trade promotion
Pull
Advertising and
promotion
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18
Scope of Marketing
It creates employment opportunities because sales
and marketing is a people oriented activity.
It improves the standard of leaving of the people
It satisfies the needs of the peoples by providing
the goods to the customers
It improves the transport and communication
It establishes a better relationship B/W the buyer
and the seller.
It makes goods available to all geographic location
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19
Contd
It increases revenue to the govt.
It enables to increase the profit.
It helps the top management to manage
innovations and changes
Maximize sales enables the firm to go for large
scale production.
Mass production reduces the cost per unit of
the product.
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20
Marketing Concept
The marketing management philosophy that
holds that achieving organizational goals
depends on determining the needs and wants
of target markets and delivering the desired
satisfactions more effectively and efficiently
than competitors do.
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21
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22
Concept of Marketing Management

Management
Orientations
Production
Concept
Selling
Concept
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1 - 23
Societal
Marketing
Concept
Product
Concept
Marketing
Concept

Traditional
Production Concept:-This concept holds that
consumers will favor products that are available and
highly affordable and that management should focus
on improving production and distribution efficiency.
This is one of the oldest concept. It is useful in two
situations when the demand for a product exceeds
the supply, management should look for ways to
increase production and when the product cost is too
high improved productivity is needed to bring down.
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24
Product Concept
This concept holds that consumers will favor
products that offer the most quality,
performance, and innovative features. Thus an
organization should dedicate energy in making
continuous product improvement.
A product will not sell unless the manufacturer
designs packages and prices it attractively. and
place it in convenient place.
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25
Selling Concept
This concept holds that consumers will not buy
enough of the organizations products unless the
organization undertakes a large scale selling
and promotion effort.
Their aim is to sell what they make rather than to
make what the market wants. Such marketing
carries high risks.
It focus on creating sales transaction rather than on
building long-term, relationship with customer.
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26
Societal Marketing Concept

The idea that the organization should determine
the needs, wants, and interests of target
markets and deliver the desired satisfactions
more effectively and efficiently than
competitors in a way that maintains or
improves the consumers and societys well
being.
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27
The selling and Marketing Concepts Contrasted
Starting point Focus

Factory
Means
Ends
Selling
Existing
Profits through sales
and
promoting
products
volume
The selling concept
Market
Customer
needs
Integrated
marketing
Profits through customer

satisfaction
The marketing concept
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Three Considerations Underlying The Societal Marketing

Society
(Human welfare)
Societal
marketing
concept
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Consumers
Company
(Want satisfaction)
(Profits)

29
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30
Modern Concept
The market concept is customer orientation
backed by integrated marketing aimed at
generating customer satisfaction as the key to
satisfy organizational goals.
The marketing concepts holds that the key to
achieve its organizational goals consists of the
company being more effective than competitors
in creating delivering and communicating
customer value to its chosen target market
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31
Contd.
The marketing concept has been expressed as
follows.
Meeting needs profitability
Find wants and fill them
Love the customer not the product
You are the boss
Partners for profit
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32
Components of modern concepts

Customer orientation:- in modern concept the
marketer will give first preference to the
customer need and satisfaction according to
his taste and preference the marketer will
change or modify the product and give.
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33
Integrated Marketing
An approach to achieving
theobjectivesof amarketing campaign,
through a well coordinated use of
different promotionalmethodsthat are
intended to reinforce each other.
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Profitable sales through customers

satisfaction
The main aim of every business is earning and
maximizing its profits. Manufacturer cannot ignore
the wants and expectations of customers.
Customer is the supreme and he determines the
products to be produced by the manufacturer.
Marketing starts with the generating of a product
idea and continues until the customers wants are
completely satisfied.
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Customer welfare
Consumer welfare refers to the individual
benefits derived from the consumption of
goods and services.
In theory, individual welfare is defined by an
individual's own assessment of his/her
satisfaction, given prices and income. Exact
measurement of consumer welfare therefore
requires
information
about
individual
preferences.
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Characteristics of modern marketing concept

According to this concept consumer is the king of
the market
Marketing is the entire process of understanding
and satisfying the needs and wants.
The main aim of marketing under the concept is
not maximization of profits alone but by
satisfying the consumer needs and wants.
The concepts creates and delivers the standard of
living to the society.
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Functions of marketing
Merchandising Functions:-the process of the
passing of goods to the customers hands is
called the function of exchange. this process
can be divided into
Buying
Assembling
Selling
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Functions of marketing
Physical distribution functions:-this function
related to the process of transporting the goods
from the place of seller to the place of buyer
and includes two main function.
Transportation-a good system of
transportation increases the value of goods by
the creation of place of utility
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Contd..
Storage and warehousing :- goods must be
stored for different reasons goods produced
seasonally may be used throughout the year
goods meant for use during the short period
may be produced over the longer period,
manufacturer store raw materials for ready
supply are also stored in the hope of getting a
higher price in future
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Facilitating functions
These functions make the marketing process easy and include.

Financing
Risk bearing
Standardization
Pricing
branding
Advertising
Sales promotion
Packaging
Market information
Marketing research
Marketing intelligence
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Approaches to marketing
The marketing expert came out with three fundamental
approaches to the study of marketing namely.
Commodity approach
Institutional approach
Functional approach
Decision making approach
System approach
Social approach
Holistic approach
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Commodity approach (product)

This approach is studies marketing on commodity basis.
This approach is also called as descriptive approach.
in this method the commodity serve as a focus around
which other aspects of marketing are studied and its
journey from the original producer right up to the final
consumer. In this we can locate the center of production
people engage in buying and selling of the product mode
of transportation and so on.
Through such an approach we can find out the
difference in marketing product, service and problems.
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Institutional Approach
In this method descriptive and analysis of the
different institutions engaged in marketing are
undertaken. Here we study not the product but
the producer, wholesaler's agents, retailers,
transporters, storing institutions etc. different
institutions serve as separate cells of the
marketing body.
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Institutional approach
This approach splits down the field of
marketing into separate functions. These
specific functions are buying, selling,
transportation, storage, standardization,
grading, financing, risk-taking and marketing
research, etc. We also concentrate our
attention on the specialized service or
functions or activates performed by marketer
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Management approach/decision making

approach
In this approach the focus of marketing study is on the
decision making process involved in the performance
of marketing functions at the level of the firm.
the study involves discussions of important concept
like devising alternative strategies, analyzing their
relative importance determining the strengths and
weakness of the company, techniques and methods of
problems solving.
(in this method the manager is taking decision to
change the functional activities about the market like
planning, executing, co-ordinating & controlling)
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Societal approach/legal approach

Social approach is the study that emphasizes the
fact that marketing is for society and hence,
functions as directed by social norms set by the
society. This method must bring maximum social
well being or welfare.
That is not only to provide a car, but less
pollutant car, cigarette without smoke, medicines
without side effects, holding high the social and
cultural values and values adding to the life-style
and living
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System approach
Systems approach is an approach that entails
analysis of problems and come up with a blend
of solutions. It is a generally approach that
involves tackling problems in an advanced
disciplined manner keeping priorities in mind.
It is a branch of systems thinking process.
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Holistic approach
Holistic approach refers to the practice of
looking at the health of an individual in a
complete picture rather than isolating parts. It
uses natural treatments to attempt to maintain
balance.
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Distinction B/W Marketing and Selling

Marketing
Marketing focus on customer
needs
Customer enjoys supreme
importance
Integrated approach to achieve
ling term goals
Converting customer needs
into products
Profit through customer
satisfaction
Let the seller beware
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Selling
Selling focus on the needs of
the seller.
Product enjoys supreme
importance.
Fragmented approaches to
achieve immediate goals
Converting customer needs
into products.
Profit through sales volume
Let the buyer beware.

50
Thank You

Marketing Management: Introduction

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1 Chapter Marketing Management

Koshys Institute of Management

managerial process by which individuals

Koshys Institute of Management

Koshys Institute of Management

The Goal of Marketing is:

To attract new customer by promising superior

Koshys Institute of Management

Koshys Institute of Management

Koshys Institute of Management

Koshys Institute of Management

Core Marketing Concepts

Needs, Wants, and Demands

Koshys Institute of Management

Koshys Institute of Management

Products and Services

Koshys Institute of Management

Values, Satisfaction, and Quality

Koshys Institute of Management

Exchange, Transactions, and Relationships

Koshys Institute of Management

Koshys Institute of Management

Koshys Institute of Management

Push and Pull Strategies

Koshys Institute of Management

Koshys Institute of Management

Koshys Institute of Management

Koshys Institute of Management

Koshys Institute of Management

Concept of Marketing Management

Koshys Institute of Management

Koshys Institute of Management

Koshys Institute of Management

Koshys Institute of Management

Societal Marketing Concept

Koshys Institute of Management

The selling and Marketing Concepts Contrasted

Starting point Focus

Profits through customer

The marketing concept

Koshys Institute of Management

Three Considerations Underlying The Societal Marketing

Koshys Institute of Management

Koshys Institute of Management

Koshys Institute of Management

Koshys Institute of Management

Components of modern concepts

Koshys Institute of Management

Koshys Institute of Management

Profitable sales through customers

Koshys Institute of Management

Koshys Institute of Management

Characteristics of modern marketing concept

Koshys Institute of Management

Koshys Institute of Management

Koshys Institute of Management

Koshys Institute of Management

These functions make the marketing process easy and include.

Koshys Institute of Management

Koshys Institute of Management

Commodity approach (product)

Koshys Institute of Management

Koshys Institute of Management