Marketing Management - Introduction

Mr. Padam Bhushan

ABS
 What is Marketing ?
A Societal process by which individuals &
groups obtain what they need and want through
creating, offering and freely exchanging product and
services of value with each other.
Individual
Marketing Social Activity
Group
Creating, Offering Group

Services
Exchanging Product

Fulfilling needs & wants

Management
Planning Providing Protecting
 What is Marketing

Meeting needs profitably

Acc to American Marketing Association :
Marketing is an organizational function and a set of
processes for creating, communicating, and
delivering value to consumers and for managing
customer relationships in ways that benefit the
organization and its stakeholders.
 Marketing Management

ART SCIENCE
(Practical application of knowledge) (research and experiment)

Marketing Management is the process of planning and

executing the conception, pricing, promotion and distribution
of ideas, goods & services to create exchanges that satisfy
individual and organizational goals.
 What is market ???
Market consists of buyers and sellers.
4 types of markets are there:
1. Consumers market
2. Business market
3. Government market
4. Institutional market
 Understanding marketing by
checking what does it do
Marketing is Meeting human needs

Meeting latent and Meeting needs at a

future needs profit
 What is marketed ?

What is mean by Market ?

Consumers market
Business market
Government market
Institutional market
Needs And Wants
Basic requirements of consumers
i.e. Food, shelter and clothing

Want desire
Demand Needs + Wants

when the want is backed by willingness

to pay and adequate purchasing power.

=> Market deals with the Demand.

 Economic Utility (the amount
of satisfaction a consumer gets by consuming
a product)

time utility possession utility

form utility place utility

 Satisfaction fulfillment of
demand

emotional monetary
benefit benefit

Value actual amount of benefit incurred as over the

actual cost of the product.
 Evolution of Marketing
The concept of marketing emerged after the
industrial revolution in 17th century. There have been
different stages in the evolution of marketing since
than.

Production Concept

Product concept

Sales concept

Marketing concept
Production concept

Product concept
 Sales era

Starting Point Focus Means Ends

Selling and Profit through

Factory Products promoting sales volume

The Selling Concept

 Marketing era

Starting Point Focus Means Ends

Target Customer Integrated Profits through

Market Needs Marketing customer satisfaction

The Marketing Concept

 Selling Marketing

Product specific Emphasis on Customer

wants
It starts with sellers. It starts with buyers
Company first makes the First determine customers
product and then figures wants and then figures out
out how to sell it. how to design and deliver a
product to satisfy those
wants.
It views business as a It views business as a
goods producing customer satisfying process
process
Its Push - Approach Its a Pull- Approach
 Its planning is short Its planning is long
run process. run oriented.
In this cost determine In this customer
the price. determine the price.
Sales- volume Customers satisfaction-
oriented. oriented.
It is a exchange It is a exchange activity
activity without caring with the value-
for the value satisfaction that should
satisfactions inherent flow to the customer
in the exchange. from the exchange.
 Framework for MM
Customer Competition Company
Analysis Analysis Analysis

Target Segment Selection

& Positioning

PRODUCT, PRICE, PLACE , PROMOTION

 Shift in Orientation
Production orientation Marketing orientation

Product orientation Customer orientation

Supply orientation Demand orientation

Sales orientation Satisfaction orientation

Internal orientation External orientation

Production Finance

Marketing Human
Resources
Marketing as an equal function

Human
Resources
Marketing
Marketing as a more important
function

Production

Marketing

Marketing as the major function

 Customer
Customer as the controlling
function

Customer

Customer as the controlling

function & marketing as the
integrative function

Evolving Views of Marketings Role in the Company

Societal Marketing Concept

Emphasizes social and ethical considerations in marketing
activities.
 Marketing Myopia

Societal Marketing

Relationship Marketing