MARKETING MANAGEMENT

Marketing is the management process responsible for identifying, anticipating and satisfying customer
requirements profitably.

Marketing is the whole process directed at satisfying the needs and wants of people through exchange.
Peter Drucker opines that the aim of marketing is to make selling superfluous.

Marketing people are involved in marketing 10 different types of entities namely goods, services,
experiences, events, persons, places properties, organizations, information and ideas.

Some Key Marketing Concepts

Exchange: The process of obtaining a desired product from someone by offering something in return.

Market: Set of actual and potential buyers of the product

Need: Basic human requirements

Wants: Needs directed at specific objects

Demand: wants backed by purchasing power

Scope of Marketing
The core concept marketing management is concerned with
 identifying needs, wants and demands
 identifying target markets and segments, and positioning the product
 scanning the environment
 analyzing the consumer/business markets
 dealing with competitors
 designing and maintaining the marketing mix
 managing the channels of distributions
 managing integrated marketing communications.

The set of tasks for successful marketing management includes developing marketing strategies and
plans, connecting with customers, building strong brands, shaping the market offering, creating
delivering and communicating superior value to customers, capturing marketing insights and
performance and creating successful long term growth.

Marketing vs. Selling

Selling Marketing

Selling focused on the needs of the seller Marketing focuses on the needs of the buyer
Selling focuses on existing products Marketing focuses on the customer needs
Selling focuses on getting profits Marketing aims at profits through
sales volume customer satisfaction

Marketing Mix

The term marketing mix refers to the primary elements that must be attended to in order to properly
market a product or service. Also known as The 4 Ps of Marketing, the marketing mix is a very useful
1
 guideline for understanding the fundamentals of what makes a good marketing campaign. The
standard elements of the Marketing Mix are:

a) Product: A product is anything that can be offered to a market to satisfy a want or a need. It includes
goods and services. Products can be classified into 5 levels based on the value added to the customer.
The various product levels according to the customer value hierarchy are:
 Core benefit – the service or benefit the customer is really buying
 Basic product – the core benefit converted to a functional product
 Expected product – set of attributes a customer expects while purchasing the product
 Augmented product – product that exceeds customer expectations.
 Potential product – all the possible enhancements and transformations that the product can
undergo in the future.
The scope of a product generally includes supporting elements such as packaging, warranties,
guarantees and support.

b) Pricing: Pricing is the only element of the marketing mix that generates revenues. All the other
elements result in costs. Price refers to the amount of money exchanged for the product. The steps
involved in setting the pricing are
 Selecting the pricing objective
 Determining demand
 Estimating costs
 Analyzing competitors costs, prices and offers
 Selecting a pricing method
 Selecting a final price

c) Promotion: They are the means by which customers are informed, persuaded and reminded about the
products that are available for sale. The promotions mix comprises of advertising, sales promotion,
events and experiences, public relations and publicity, direct marketing and public selling

d) Place (Distribution): This refers to the process of getting a product from the place it was
manufactured into the hands of consumers in the right location at the right time. It involves decisions
regarding the channels of distribution (number and types of intermediaries like distributor, dealer,
agent, wholesaler, retailer etc) and physical distribution (transportation, warehousing, inventory levels
etc.).

Apart from the standard 4 P’s services marketing adds 3 extra Ps in services marketing mix. They are
 People: any person representing an organization or business network that comes into contact
with customers and can have an impact on product offer delivery and overall satisfaction.
Examples include salesperson, customer service staff, support staff like clerk, nurse etc.
 Process: it refers to set of one or more linked procedures or activities which collectively help
attain a business objective of providing a service, which can be crucial to customer satisfaction.
Examples include billing, handling complaints, delivery etc.
 Physical evidence: it refers to the tangible and controllable aspects of a service, including
everything that can be touched, smelt and heard. Often a customer is present while the service is
delivered and hence the surrounding in which the customer is actually served becomes important
in a service situation. For example the appearance/decor and cleanliness of a restaurant influence a
customer’s perception of the service.

Managing the Marketing Mix is the crux of Marketing Management.