Vels Srinivasa College Of

Engineering and Technology

Master of Business
Administration
Marketing Management

Submitted to
Ms. Chitra

Jeyaseelan.B
 synopsis
Introduction

Concept Of Marketing

Problems Of Marketing

Market Assessment

Market Segmentation
Introduction: synopsis
According to American Marketing

Association,

“Marketing is concerned with the people

and the activities involved in the flow of goods

and services from producer to consumer.”

• Marketing management is “the art and

science of choosing target markets and

building profitable relationships with

them.”

• It deals with Production concept,

product concept, selling concept,

 synopsis
Concept Of Marketing:

The marketing concept is the philosophy

that firms should analyze the needs of
their customers and then make decisions
to satisfy those needs, better than the
competition. Today most firms have
adopted the marketing concept, but this
has not always been the case.

What is a Market?
A “market” was a physical place where
buyers and sellers gathered to exchange
their goods for money and vice versa. Now
marketers view the sellers as the
Industry and the buyers as the market.
Types of Marketing Concept:
synopsis
The marketing concepts are broadly classified into 2 categories.
1)Traditional Concept
2)Modern Concept
The concept of marketing has also altered from one point of time to
another.

Traditional Concept:
● The major function of this concept was to make the products
widely available to the customers at an affordable price.
● The traditional concept of marketing focuses on the needs
of the producers i.e., the sellers.
 synopsis
TRADITIONAL CONCEPT
OF MARKETING
FOCUS MEANS
OBJECTIVES
PRODUCT TO PROFIT
SELLING
BE SOLD TO THROUGH
AND
THE SALES
PROMOTION
CUSTOMERS VOLUME
Modern Concept: synopsis
The modern marketing traces its origin to the primitive forms of
trade. As people began to adopt the techniques of work
specialization, a need for individual and organization to facilitate the
process of exchanged emerged .
The customers were not ready to buy whatever was offered to them
•

by the producers.
• They started to buy the goods/services that were more beneficial to
them in terms of quality, price and satisfaction. It may be tangible or
FOCUS
intangible. MEANS
OBJECTIVES
PRODUCT
SATISFY
PROFIT
CUSTOMER INTEGRATED
THROUGH
NEEDS AND MARKETING
CUSTOMER
BOUGHT BY MIX
SATISFACTION
THE
CUSTOMER
 synopsis
Problems Of Marketing:
The problem is deeper though - it has to do with an often complete
communications gap between the marketing people and the people
who create the product/service being sold. 
The three major problems of marketing are:
1. Competition with Modern sector
2. Lack of Sales Promotion
3. Weak in Bargaining Power
 synopsis
Competition with Modern sector:
There was a huge competition of the small
enterprises with the modern and techniques
sector due to several factors over years.
Though the traditional concept of marketing
•

changing in SSI there assumption of poor quality

manufactured in SSI. The sector needs to
change the taste and preference of their
customers which they do fail.
Lack of Sales Promotion:
• Advertisement of the product in
Telecasting and Print media.
No sales representatives to
•

create an awareness about the

product.
 synopsis
Weak in Bargaining Power:
When there is more competitor and still the price of the product
increase, the customer switches to the competitive brands or
products.
If a competitor follow the pricing strategy, it should also follow by
•

them.
 synopsis
Market Assessment:
Growth and value are two things sought by all business-to-
business companies. Growth is necessary because it is the only way
forward; staying still is not an option as others will pass you by, while
decline is a sure movement towards extinction. Value enables you to
achieve higher contributions from your sales and more returns from
your resources.
The Market can be analyzed by the following ways:
Demand Forecasting or Market Demand
Survey Method
Statistical method
Leading Indicator Method
 synopsis
Demand Forecasting or Market Demand:
The willingness and ability of customers to buy
product or services.
According to PHILIP KOTLER, “MARKET DEMAND for a
product is the total volume that would be brought by a
defined customer group in a defined geographical area
in a defined time in a defining marketing environment
under a defined marketing programme”.

Survey Method:
This method is widely used for estimating future
•

demand of a product.
Based on collecting data/information from the potential
•

customers.
Statistical method:
Time series analysis
•

Regression analysis for calulating the estimation of demand for the

•

product.
By comparing consumer income and demand of the product.
Leading Indicator Method:
This based on the fact that some indicator move up or down.
Eg: Cloud formation followed by rain.
The govt., permission to increase the automobile production is a
leading indicator of increase in demand for automobiles
accessories and petrol.
 synopsis
Market Segmentation:
“It is the sub-dividing of a market into homogenous subsets of
customers where and subset may conceivably be selected on a
market target to be reached with a distinct marketing mix.”
-Philip Kotler.
In other words, “Grouping of buyers or segmenting the
market.”

Criteria of Market Segmentation:

1) Geographical Variables
2) Demographic Variables
3) Educational Variables
4) Income Variables
5) Psychological Variables
Geographical Variables:synopsis
Geographic segmentation is basically the use of spatial location to
divide the market. To advertise and promote your business to the global
market you must either have a specific advert for the different
geographical markets or one single ad that cuts across the entire
planet.
Region: by continent, country, state, or even neighborhood
Size of metropolitan area: segmented according to size of population
Population density: often classified as urban, suburban, or rural
Climate: according to weather patterns common to certain geographic
regions
Demographic Variables:
synopsis
Age
•

Gender
•

Family size
•

Family lifecycle
•

Generation: baby-boomers,
•

Generation X, etc.
Income
•

Occupation
•

Education
•

Nationality
•

Religion
•

Social class
•
 synopsis
Educational Variables:
It is confirmed that educational attainment and income are
highly correlated. Eg. The reading habits of college students differs
from the high school student. Variation in living styles of literate
and illiterate people are quite visible.
Psychological Variables :
Dividing the total potential market into smaller subgroups on
the basis characteristics of the individual, such as personality, 
buying motives, lifestyle, attitudes or interests.
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