MARKETING MANAGEMENT

14TH EDITION
1
Defining Marketing
for the 21st Century

Kotler, Keller, Koshy, Jha

CHAPTER QUESTIONS
 Why is marketing important?
 What is the scope of marketing?
 What are some of the fundamental
marketing concepts?
 How has marketing management changed?
 What are the tasks necessary for
successful marketing management?

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WHAT IS MARKETING?

Marketing is an organizational function

and a set of processes for creating,
communicating, and delivering value
to customers and for managing
customer relationships
in ways that benefit the
organization and its stakeholders.

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DISSECTION OF “MARKETING”
 “Marketing is managing profitable customer
relationships” – The simplest Definition.
 Goals:

1) Attract new customers by promising superior value.

2) To keep & grow current customers by delivering

satisfaction.
 Copyright © 2009 Dorling
Kindersley (India) Pvt. Ltd.

SELLING IS ONLY THE TIP OF THE ICEBERG

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“There will always be a need for

some selling. But the aim of marketing
is to make selling superfluous. The aim
of marketing is to know and understand
the customer so well that the product or
service fits him and sells itself. Ideally,
marketing should result in a customer
who is ready to buy. All that should be
needed is to make the product or
service available.”
Peter Drucker
DEFINITIONS
 A social and Managerial process whereby individuals and groups obtain
what they need and want through creating and exchanging products
and value with others. – Kotler & Armstrong

 Marketing consists of those activities involved in the flow of goods and

services from the point of production to the point of consumption
(1938, American Marketing Association).

 Marketing is the process of planning and executing the conception,

pricing, promotion and distribution of ideas, goods and services to
create exchange and satisfy individual and organizational objectives
(1985, American Marketing Association).

 Marketing is the management process which identifies, anticipates and

supplies customer requirements efficiently and profitably. (UK
Chartered Institute of Marketing, 1999).
WHAT IS MARKETING MANAGEMENT?

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.

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WHAT IS MARKETING MANAGEMENT?
SIMPLIFIED

 Marketing Management is a business

discipline which is focused on the practical
application of marketing techniques and the
management of a firm's marketing resources
and activities.

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WHAT IS MARKETED?
 Goods (Physical Goods)  Places (Tajmahal, Sundarban)

 Services (sheba.xyz)  Properties (Real Property:Real

Estate or Financial Property:
 Events (Trade Shows, World Cup) Stocks)

 Experiences (Fantasy Kingdom)  Organizations (Unicef)

 Persons (Artists, Musicians,  Information (Encyclopedia,

Messi, Ronaldo, Sachin, Sakib Al Computer World Magazine)
Hasan)
 Ideas (AIDS or TB Awareness,
ANTI Smoking)

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DEMAND STATES

Marketing Managers seek to influence

the level, timing, and composition of
demand to meet the organization’s
objective. 8 (Eight) Demand States are
possible.

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 8 DEMAND STATES
1. Negative demand: consumers dislike the product and may even pay a price
to avoid it.
2. Nonexistent demand: consumers may be unaware or uninterested in the
product.
3. Latent demand: consumers may share a strong need that cannot be
satisfied by an existing product.
4. Declining demand: consumers begin to buy the product less frequently or
not at all.
5. Irregular demand: consumer purchases vary on a seasonal, monthly,
weekly, daily, or even hourly basis.
6. Full demand: consumers are adequately buying all products put into the
marketplace.
7. Overfull demand: more consumers would like to buy the product than can
be satisfied.
8. Unwholesome demand: consumers may be attracted to products that have
undesirable social consequences.
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KEY CUSTOMER MARKETS
Global Markets

Consumer Market

Business Markets Government Market

CONSUMER MARKETS
 Mass consumer goods.
 Ex: soft drinks, cosmetics etc.

 Great deal of time spend by companies to

establish a superior brand image.
 Brand’s strength depends on developing
superior product and packaging, ensuring
availability, backed up by communication and
service
 Always challenging because of Changing
Consumer Market.
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BUSINESS MARKETS

 Business goods/services.
 Well trained & informed professional buyers who
are skilled in evaluating competitive offerings.
 Business buyer buy goods to make or resell.
 Marketers must demonstrate how the
product/service will help the buyers.
 Sales force, reputation for quality/reliability, price
plays vital roles than Advertising.

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GLOBAL MARKETS

 Selling goods/services in global marketplace

require additional decision and challenges.
 Which country to enter, how to enter
(exporter, licenser, joint venture, FDI).
 Adaptation of service feature, communication

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NONPROFIT/GOVERNMENT MARKETS
 Churches, Universities, Charitable
organization.
 Marketers need to price carefully as the
buyers have limited buying capacity.
 Bidding is popular; Party with the lower price
get selected.

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MARKETS

Marketplaces Marketspaces

Metamarkets (Automobile + Mechanic + Bank + Insurance)

CORE MARKETING CONCEPTS
Needs, Wants, and Demands Target Markets, Positioning,
and Segmentation

Offerings and Brands

(Value proposition)

Value and
Satisfaction
CORE MARKETING CONCEPTS
Marketing
Channels
• Communication
Channel
• Distribution
Channel
• Service Channel Supply Chain
Start to End (Value Chain)

Marketing Environment
Competition
I WANT IT, I NEED IT…..
5 Types of Needs

 1. Stated needs (the customer wants an inexpensive car).

 2. Real needs (the customer wants a car who operating cost,
not its initial price, is low).
 3. Unstated needs (the customer expects good service from
the dealer).
 4. Delight needs (the customer would like the dealer to
include an onboard navigation system).
 5. Secret needs (the customer wants to be seen by friends as
a savvy consumer).

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 THE NEW MARKETING REALITIES….

 Changing technology: JIT Production, More targeted communication.

 Globalization: Technological advancement in transportation, shipping and

communications has made the life easier for marketers and buyers.

 Deregulation: Many countries have deregulated industries to create greater

competition. Ex: Deer firm, Domestic Flight, TV/Radio Channels

 Heightened Competition: Saturated Market, rising promotion cost and shrinking

profit margins; powerful retailers.

 Industry Convergence: Square (Pharmaceuticals, Food Products), Samsung (Home

Appliances, Consumer Products).

 Retail Transformation: Asian Sky Shop, Agora

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 THE NEW MARKETING REALITIES…. (CONTINUES)

 Disintermediation: Amazon.com, Ebay.com, Dell.com

 Consumer Buying Power: Buy from anywhere…even from office, During Journey

 Consumer Information: Wikipedia, Facebook, gsmarena.com, You Tube

 Consumer Participation: Selfie with the product, Slogan making competition

 Consumer Resistance: Avoid over marketed products

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“NEW COMPANY CAPABILITIES”

 Marketers can use internet as a powerful information and

sales channel (Worldwide reach)
 Marketers can collect information about markets,
customers, prospects and competitors (Research)
 Marketers can tap into social media to amplify brand message
(Facebook page, Twitter)
 Marketers can facilitate and speed external communication (buzz
through brand advocates & user communities)
 Marketers can send ads, coupons, information
(personalized message)

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“NEW COMPANY CAPABILITIES” - CONTINUES

 Marketers can reach consumers on the move

with mobile marketing (GPS tracking)
 Companies can make and sell individually
differentiated goods (Berger color bank,
customized tee shirt, mug etc)
 Companies can improve purchasing,
recruiting, training and internal/external
communications (McDonald’s Recruitment)
 Companies can facilitate and speed up internal
communication among their employees by using intranet
(IUB MySB)
 Companies can improve their cost efficiency by skillful use of
internet (comparing prices, auctions)

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 MARKETING MANAGEMENT ORIENTATION

 Production: focus on producing more, selling high volumes;

controlling costs and production efficiency. (Ford 1920s — Model T,
Econo Ball pen)
 Product: focus on improving quality; assumes that customers want
a better quality version of the same product (I Phone 6s to I Phone
7) . BUT it can lead to Marketing Myopia (KODAK).
 Selling: focus on aggressive sales and promotion to sell whatever
the organization wants to make; sellers needs come first.
Companies following selling concept profits through sales volume.
(Insurance, New Market street Vendors).
 Marketing: focus on defining customer needs and then developing
offerings that deliver what the customer wants; customer needs
come first (Pick any company).
HOLISTIC MARKETING CONCEPT
 The holistic marketing concept is based on the
development, design, and implementation of marketing
programs, process, and activities that recognize their
breadth and interdependencies. Holistic marketing
recognizes that “every thing” matters.

 The main components of Holistic Marketing are: -

 Integrated Marketing
 Internal Marketing
 Relationship marketing
 Performance Marketing

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HOLISTIC MARKETING DIMENSIONS
 RELATIONSHIP MARKETING
 The ultimate goal of relationship marketing building marketing network,
which consists of the company & its supporting stakeholders (Customers,
Employees, Marketing Partners : Channels, Suppliers, Distributors, Dealers,
Retailers, Agencies, Financial Community : Shareholders, Stakeholders,
Financiers, Investors, Analysts, Society : well-wishers, scientists, professors,
environmentalists) with whom it has built manual profit relationships.
Whoever has a better network wins.

 The development & building of a strong relationship requires a deep

understanding of the capabilities & resources of different groups as well as
their needs, goals & desires.

 Relationship marketing involves the right kind of relationships with right

constituent groups, like Customer Relationship Management (CRM) with
customers, Partner Relationship Management (PRM) with other partners.

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INTEGRATED MARKETING

 One of the major tasks of marketers is to

“integrate” all the marketing activities &
programs like “creating”, “communicating” &
“delivering” value to the customers.
 Decisions about the Marketing Mix.
 Product
 Price
 Place
 Promotion

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INTERNAL MARKETING

 Internal marketing is the task of hiring,

training, and motivating able employees who
want to serve customers well.
 Internal marketing requires that everyone in
the organization buy into the concepts & goals
of marketing, and engage themselves in
selecting, creating, communicating &
delivering customer value.

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PERFORMANCE MARKETING:

Social Responsibility Marketing

 Holistic marketing incorporates social
responsibility marketing. This involves broader
concerns of the society at large,
 Ex: McDonald’s including healthy meal (Salad),
Toothpaste in disposable tube.

Financial Accountability
 Justify investment in financial and profitability
terms, as well as building brands and increasing
customer base.
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THE END

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