1

UNDERSTANDING
MARKETING
MANAGEMENT
Dr. Vandana T Khanna
9/15/2014
NEW COMPANY CAPABILITIES
& CHALLENGES
Greater networking with all stake holders &
use of IT to increase the speed of
communication
Better managerial methods to improve
employee morale and productivity
Shortage of employable talent
Inadequate infrastructure development
Dr. Vandana T Khanna
9/15/2014
NEW COMPANY CAPABILITIES
& CHALLENGES
Growing competition from emerging
outsourcing destinations like Vietnam,
china, Philippines.
Collaborate in academic reforms
regarding curriculum development, better
teaching infrastructure
Focus on research & development either
own R & D set-up or collaboration with
universities as in the USA and other
developed world countries.
Dr. Vandana T Khanna
STRUCTURE OF FLOWS IN A
MODERN EXCHANGE ECONOMY
9/15/2014 Dr. Vandana T Khanna
Please Write a One Sentence
Definition for:
Marketing, Branding and
Positioning
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.
9/15/2014 Dr. Vandana T Khanna
2
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.
9/15/2014 Dr. Vandana T Khanna Dr. Vandana T Khanna
DEFINITIONS OF MARKETING
The right product, in the right place, at the
right time, and at the right price
Adcock et al
Marketing is the management process that
identifies, anticipates and satisfies customer
requirements profitably
The Chartered Institute of Marketing
9/15/2014
Dr. Vandana Khanna 9
DEFINITIONS OF MARKETING
Marketing in last few decades has widened to
include all the activities necessary to place
products in the consumer hands, excluding
such activities as involved in significant
change in the form of goods
Philip, Charles F &Richard, D Irwan
9/15/2014 Dr. Vandana T Khanna
The value-based definition of marketing
describes Marketing as a process of sensing,
designing, and delivering customer value for
fulfillment of desired organizational
objectives (An Indian perspective)
Dr. Vandana T Khanna
DEFINITIONS OF MARKETING
Marketing is the human activity directed at
satisfying human needs and wants through
an exchange process
Kotler 1980
Marketing is a social and managerial process
by which individuals and groups obtain
what they want and need through creating,
offering and exchanging products of value
with others
Kotler 1991
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OTHER DEFINITIONS
OF MARKETING
Marketing deals with identifying & meeting
human & social needs
Marketing implies meeting needs
profitably
Living close to the customer
Creating more satisfying needs for the
customer
The task of creating, promoting &
delivering goods & services to consumers
and businesses.
To deliver a better standard of living
Dr. Vandana T Khanna Dr. Vandana T Khanna
AMA DEFINITIONS
Marketing is the process of planning and
executing the conception, pricing,
promotion, and distribution of ideas, goods
& services to create exchange that satisfy
individual or organizational objectives
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
Revised Definition
9/15/2014
3
SELLING IS ONLY THE TIP OF
THE ICEBERG
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
9/15/2014 Dr. Vandana T Khanna Dr. Vandana T Khanna
IMPLICATIONS OF MARKETING
Who are our existing / potential
customers?
What are their current / future needs?
How can we satisfy these needs?
Can Can Can Can we we we we offer offer offer offer a aa a product/ product/ product/ product/ service service service service that that that that the the the the
customer customer customer customer would would would would value? value? value? value?
Can Can Can Can we we we we communicate communicate communicate communicate with with with with our our our our customers? customers? customers? customers?
Can Can Can Can we we we we deliver deliver deliver deliver a aa a competitive competitive competitive competitive product product product product of of of of
service? service? service? service?
Why should customers buy from us?
9/15/2014
Dr. Vandana T Khanna
SUCCESSFUL MARKETING
SHOULD BE:
Profitable
Offensive (rather than defensive)
Integrated
Strategic (is future orientated)
Effective (gets results)
Hugh Davidson 1972
9/15/2014
SIMPLE MARKETING SYSTEM
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GOOD MARKETING IS
NO ACCIDENT
The roaring success of
four-wheeler Tata
Ace, in a market
earlier dominated by
three-wheeler load
carriers, was due to a
deep understanding
of the market needs
and customer
requirements.
9/15/2014 Dr. Vandana T Khanna
WHAT IS MARKETED?
Goods
Services
Events & Experiences
Persons
Places & Properties
Organizations
Information
Ideas
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Dr. Vandana T Khanna
CORE CONCEPTS OF MARKETING
Products/
Services
Exchange &
Transactions
& Relationships
Markets
Marketers,
Marketing & Prospects
Needs, Wants &
Demands
Value, Cost,
Satisfaction
&
Quality
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Demands are wants for specific products
backed by an ability to pay
No No No No Demand Demand Demand Demand market market market market unaware unaware unaware unaware or or or or uninterested uninterested uninterested uninterested : :: :
foreign foreign foreign foreign languages, languages, languages, languages, new new new new courses courses courses courses
Latent Latent Latent Latent Demand Demand Demand Demand pollution pollution pollution pollution free free free free cars, cars, cars, cars, safe safe safe safe
neighborhoods neighborhoods neighborhoods neighborhoods
Rising Rising Rising Rising demand demand demand demand low low low low cal cal cal cal food, food, food, food, yoga, yoga, yoga, yoga, fitness fitness fitness fitness and and and and
slimming slimming slimming slimming classes, classes, classes, classes, personal personal personal personal trainers trainers trainers trainers
Declining Declining Declining Declining demand demand demand demand for for for for books, books, books, books, junk junk junk junk food food food food ? ?? ?
Irregular Irregular Irregular Irregular demand demand demand demand seasonal seasonal seasonal seasonal products products products products
Full Full Full Full demand demand demand demand commodities commodities commodities commodities
Overfull Overfull Overfull Overfull demand demand demand demand railways railways railways railways ( (( ( wait wait wait wait list list list list ) )) )
Unwholesome Unwholesome Unwholesome Unwholesome demand demand demand demand cigarettes, cigarettes, cigarettes, cigarettes, porn porn porn porn stuff stuff stuff stuff ? ?? ?
CORE CONCEPTS OF
MARKETING
Dr. Vandana T Khanna
9/15/2014
Brand : Offering from a known source
Product : offering to satisfy a need or want
Value & Satisfaction : ratio between what a
customer gets and what he wants.
Value = Benefits / Costs
Benefits = functional + emotional benefits
Costs = monetary + time + energy + psychic
costs
CORE CONCEPTS OF
MARKETING
Dr. Vandana T Khanna 9/15/2014
Exchange = is a process when two parties
are negotiating with each other to arrive at
mutually agreeable terms
Transaction = when an agreement is reached
( barter or cash )
Relationships = long term mutually
beneficial relationships with customers,
suppliers, distributors in order to earn and
retain their long term preference and
business
CORE CONCEPTS OF
MARKETING
Dr. Vandana T Khanna
9/15/2014
Marketing Channels three kinds :
Communication Communication Communication Communication channels channels channels channels
Distribution Distribution Distribution Distribution channels channels channels channels
Sales Sales Sales Sales channels channels channels channels
CORE CONCEPTS OF
MARKETING
Dr. Vandana T Khanna 9/15/2014
Supply Chain : Raw Materials to Final
Products
Competition : All actual & potential product
offerings
Marketing Environment : Demographic,
economic, political, legal, socio-cultural
CORE CONCEPTS OF
MARKETING
Dr. Vandana T Khanna
5
MARKETING PROCESS
ANALYSIS
PLANNING
IMPLEMENTATION
CONTROL
9/15/2014 Dr. Vandana T Khanna Dr. Vandana T Khanna
MARKETINGMANAGEMENT
PROCESS
Analysis/Audit - where are we now?
Objectives - where do we want to be?
Strategies - which way is best?
Tactics - how do we get there?
(Implementation - Getting there!)
Control - Ensuring arrival
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STRUCTURE OF ANY MARKET
People ( Demographic Structure )
Buying Power ( Disposable Income )
Buying Pattern (Consumer Preferences )
Markets Never Disappear They Only
Change Form
SBI Former MD & Chairman , M.S. Verma
Dr. Vandana T Khanna
KEY CUSTOMER MARKETS
Consumer Markets
Business Markets
Global Markets
Nonprofit/ Government Markets
9/15/2014 Dr. Vandana T Khanna