Marketing Management

References

• Marketing Management – Phillip Kotler• Marketing Management – Rajan Saxena• Marketing & Branding – S Ramesh Kumar• Marketing Management – Michael Etzel, A.Pandit• Brand Equity – Economic Times• USP Age• 4 P’s

Introduction to Marketing

Definition

Some basic concepts

Evolution of Marketing

Marketing Orientations

Definitions of Marketing

There are various definitions . A few of them are:

• Managerial

• Social

• American Marketing Association

Managerial definition

Is the art & science of choosing target markets & getting keeping & growing customers through creating, delivering & communicating superior customer value.

Social definition

Is a societal process by which individuals & groups obtain what they need & want through creating, offering & exchanging products & services of value with one another.

Marketing

Acc. to AMA, marketing is an organizational function & set of process for creating, communicating & delivering value to customers & for managing customer relations in a way that benefits the organization & its stakeholders

Marketing definition revisited

• Begins with customer needs

• Is not just selling & advertising

• Is to deliver a higher standard of living

• Acc to Peter Drucker “ the aim of marketing is to make selling superfluous. The aim is to know & understand the customer so well that the product or service fits him & sells itself.

What do we market?Goods

Services

Events

Experiences

Persons

Places

Properties

Organizations

Information

Ideas

Relationship between the industry & the market

Industry(a collection of sellers)

Market(a collection of buyers)

communication

Goods & services

money

information

Flows in a modern exchange economy

Manufacturermarket

Governmentmarket

Intermediarymarket

Consumermarket

Resourcemarket

resources resources

Goods & services Goods & services

money money

moneymoney

Tax goods

Services,money

Tax goods

Services,money

Services,money

Tax goods

Services,money

taxes

The Marketing Process

Design a customer driven marketing strategy

Construct a marketing programme that delivers superior value

Build profitable relationships & create customer delight

Capture value from the customer to create profits & customer quality

Understand the marketplace & customer needs & wants

Needs

Are states of felt deprivation

Wants

Are the forms that human needs take as shaped by culture & individual personality

Demands

Human wants that are backed by buying power.

Various types of demand• Negative demand• No demand – young couple not interested in

adopting family planning• Latent demand – fuel efficient vehicles• Falling demand –• Irregular demand - holiday resorts

(synchromarketing)• Full demand• Overfull demand – Maruti Udyog – (selective

demarketing)• Unwholesome demand – cigarettes, alcohol, hard

drugs.

demarketing & demand marketing

exchange

Is the act of obtaining a desired object from someone by offering something in return

Market

is the set of actual & potential buyers of a product

Elements of modern marketing system

suppliers

company

competitors

Marketingintermediaries

End- user

Evolution of marketing

The simple trade era

The production era (1920s)

The sales era (1930s)

The marketing department era (1950s)

The marketing company era (1960s)

Why has marketing changed?

• Changing technology• Globalization• Deregulation• Privatization• Customer empowerment• Customization• Heightened competition• Industry convergence• Retail transformation• disintegration

Marketing Management Orientations

Are the philosophies that guide the marketing strategies:The production concept

The product concept

The selling concept

The marketing concept

The societal marketing concept

The Production Concept

Consumers will favor products that available & highly affordable

the product concept

Consumers will favor products that offer most in quality, performance & features & the organization should devote its energy in making continuous product improvement

example

Was the philosophy of Pillsbury company in the late 1800s.” blessed with the supply of the finest North American wheat , plenty of water power & excellent milling machinery , we produce flour of the finest quality. Our basic function is to mill high quality flour & of course we must hire salesmen to sell it just as we hire accountants to keep our books.

The selling concept

Consumers will not buy enough of the firms products unless it undertakes a large scale selling & promotion effort

The marketing concept

Achieving organizational goals depends on knowing the needs & wants of the target markets & delivering the desired satisfactions better than competitors do.

The marketing

concept

Customersatisfaction

Profit as anobjective

TotalCompany

effort

Implementation the marketing concept

• CRM• Mass customization (need experienced by

a large number of people)• Quality• Value creation• Consumer orientation• Integrated approach• Futuristic approach

Difference between the selling &

the marketing concepts

Starting focus means endpoint

factory Existingproducts

Selling &promotion

Profits throughSales volumes

market

Customerneeds

Integratedmarketing

Profits throughCustomer satisfaction

SELLING CONCEPT

MARKETING CONCEPT

The societal marketing concept

A principle of enlightened marketing that holds that a company should make good marketing decisions by considering consumers wants , the company's requirements , consumers long run interests & society’s long run interests

The societal marketing concept

Societal MarketingConcept

Society (human welfare)

Company (profits)Consumers (want satisfaction)

Importance of marketing

• Globally

• Domestically

• Personally

• Organizationally

Marketing orientation from HLL

• Strong branding

• Wide distribution network

• Technological innovations

• Quality consistency

• Ensuring relevance

• Market research

• Socially conscious

• E- commerce initiative

• An eye on the future

Asian Paints

Is ranked 5th among durable companies

Acc to A & M’s survey is the ‘ most admired marketing company’ in 1994