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Marketing Management-I

Introduction

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A market is...

...a set of actual and potentialbuyers of a product

Marketing satisfies the needs ofmarkets by facilitating the exchange

process

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Marketing Defined

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.is an organisational function and aset of processes for creating, capturing,communicating, and delivering value to

customers and for managing customerrelationships in ways that benefit theorganisation and its stakeholders.

Marketing

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Marketing is the activity, conducted byorganizations and individuals, that operatesthrough a set of institutions and processes forcreating, communicating, delivering, andexchanging market offerings that have value forcustomers, clients, marketers, and society atlarge.

-American Marketing Association Definition of Marketing (2004)

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Marketing is a societal process by whichindividuals and groups obtain what they needand want through creating, offering, and freelyexchanging products and services of value withothers.

-Philip Kotler

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ValueValue reflects the relationship ofbenefits to costs, or

what you getfor what you give.

Customers seek a fair return in goods

and/or services for their hard earnedmoney and scarce time.

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Marketing Management

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Marketing Management.

.is the art and science of choosingtarget markets and building profitablerelationships with them.

Creating, delivering and communicatingsuperior customer value is key.

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Simple Marketing

System

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Simple Marketing System

Industry

(a collection

of sellers)

Market

(a collection

of Buyers)

Goods/services

Money

Information

Communication

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Target Market

Group of people toward whom thefirm decides to direct its marketing

efforts.

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What Can Be Marketed?

Goods

Services

ExperiencesEvents

Persons

Places

Properties

Organizations

Information

Ideas

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Marketing is Everywherein

Your Life

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Core Marketing Concepts

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ProductsandServ

ices

Value,

satisfa

ction,

and

qu

ality

Needs,w

ants,

anddema

nds

Exchange,transactions,

andrelationships

M

arkets

Core

MarketingConcepts

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Needs

...a state of felt deprivation

Wants

specific satisfiers...shaped by culture and

individual personalityDemands

wants ...backed by purchasing power andwillingness to pay

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A Product is...

...anything that can be offered toa market for attention,

acquisition, use or consumptionand that may satisfy a need orwant

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Product includes:

Goods

Services

Experiences

Events

Persons

Places

Properties

Organizations

Information

Ideas

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Exchange is...

...the act of obtaining a desiredobject from someone by offering

something in return

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Five conditions for exchange totake place:1. Two parties

2. Something of value to offer each other

3. Willing to deal

4. Free to accept or reject offer

5. Able to communicate and deliver

A t ti i

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A transaction is...

...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

may be monetary orbarter

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Transfer

A transfer is a one way exchangewithout receiving anything inreturn.

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Marketing Philosophies

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HOLISTIC

MARKETING

CONCEPT

PRODUCTION

CONCEPT

PRODUCTCONCEPT

MARKETING

CONCEPT

MARKETING

CONCEPT

KEYMARKETING

PHILOSOPHIES

SELLING

CONCEPT

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The Production Concept

....Holds that consumers will favorproducts that are available and

affordable.Implies work towards mass productionand low cost

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The Product Concept

Assumes customers favorproducts that offer the most quality,performance, and features.

Implies firm should strive to continuallyupgrade product and product features.

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The idea that customers will notbuy enough of the organizations

products unless the organizationundertake a large scale selling andpromotion efforts.

The Selling Concept

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The Marketing Concept

Holds that achieving organizationalgoals depends upon determining the needsand wants of target markets and delivering

the desired satisfactions more effectivelyand efficiently than do competitors.

Th M k ti C t

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The Marketing Concept

ConsumerOrientation

GoalOrientation

MarketingConcept

Market-DrivenApproach

Value-BasedPhilosophy

IntegratedMarketing

Focus

Th H li ti M k ti C t

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The Holistic Marketing Concept

It is based on the development, design, and implementationof marketing programs, processes, activities that recognisestheir breadth and interdependencies.

Recognises that Everything matters with marketing

Four components:Relationship marketing

Integrated marketing

Internal marketing

Social responsibility marketing

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Marketing vs. Selling

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Focus of Marketing Philosophy

Consumer

Need

Evaluation

Integrated

Marketing

Effort

Achievement ofOrganizational

Goals

Consumer

Satisfaction

Feedback

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Selling Philosophy

Output Sold to ConsumersLooks at Individual, Single Consumer

Seeks Sales Rather than Profit

Short-Term Goal Orientation

Concerned with Current Inventory Reduction

Narrower View of Consumer Needs

Little Adaptation to Environment

Informal Planning and Feedback

Marketing Philosophy

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Marketing Philosophy

Consumer-OrientedStresses Research andConsumer Analysis

Looks at Groups of

ConsumersProfit-Oriented

Directed to Long-RangeGoals

Two-Way InteractiveProcess

Appropriate Adaptation toMarketing Environment

Broad View of ConsumerNeeds

Integrated Planning and

Feedback

Marketing and Sales Concepts Contrasted

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Marketing and Sales Concepts Contrasted

M k ti M i

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Marketing Myopia

Narrow-minded approach to a marketing situation

where only short-range goals are considered or

where the marketing focuses on only one aspect out

of many possible marketing attributes. Because of its

shortsightedness, marketing myopia is an inefficient

marketing approach.

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Thank You!