MARKETING

MANAGAEMENT
by a. sandhya rani
asst. prof.
MARKETING DEFINITIONS
“Marketing is a social and
managerial process by which
individuals and groups obtain what
they need and want through
creating, offering and exchanging
products of value with others.”

By Philip Kotler
MARKETING DEFINITIONS
“Marketing is the application,
management and satisfaction of
demand through the exchange
process.”

By Evans and Burman

 MARKETING MANAGEMENT
DEFINITION
“Marketing (management) is the
process of planning and executing the
conception, pricing, promotion and
distribution of ideas, goods and
services to create exchanges that
satisfied individual and organizational
objectives.”
By American Marketing
Association
 MARKETING MANAGEMENT DEFINITION
Peter Drucker, a leading management
theorist, puts marketing in this way:
‘There will always, one can assume, be
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, the marketing should result in a
customer who is ready to buy. All that
should be needed then is to make the
 ELEMENTS OF MARKETING
The marketing thinking starts with
customer’s needs. Today the customer is
on the driver’s seat. Each marketer wants
to retain and satisfy each and every
customer because of intense competition.
Following are the marketing elements:

 Needs, wants and demands

 Products
 Value, cost and satisfaction
 Exchange, transactions and relationship
 Market
 Marketers
 NEEDS AND TYPES OF NEEDS
 A Need is something, which cannot be created
by Marketer but unspeakable and known part of
human biology. It is a state of feeling of some
basic satisfaction. Need is a compulsory
activity without which, human cannot live or
sustain.
 Generally a person will be in a need of Food,
Water, Shelter and clothes. These are basic
needs. In marketing a Need can be in different
nature. For a particular product, there can be
so many needs and those are mentioned below.
 TYPES OF NEEDS
 There are five types of Needs, which
differ from person to person and
place to place.

 Eg: Taking example in case of a CAR.

 I STATED NEEDS
 These needs are something can be
stated i.e., expressive in nature.

 A Customer can be in a position to

express his needs. He can express
his need of extra fittings in the car.
I.e. A/c, Music System, paintings on
his car etc.,
 II REAL NEEDS
 These needs are real needs,
which are compulsory.

 A customer needs low

maintenance of car. i.e.,
without repairs frequently
and low petrol consumption.
 III UNSTATED NEEDS
 These needs are not expressive as
these are some extra feelings of
customer which makes him happy
and satisfied apart from the benefits
of car.
A customer may require better & good
service from the company or showroom.
Such as he may feel happy, if company
or showroom management sends him
festival greetings or birthday greetings
and when ever customer goes to them,
he may be honored and well received by
them with welcome drinks etc.,
 IV DELIGHT NEEDS
 These needs are like fringe
benefits or windfall benefits to
the customer.
surprise gifts, discounts, lucky
draws or schemes given to
customer as offers that makes
him delight.
 v SECRET NEEDS
 These needs are which above the
unstated needs and very secret in
nature.

A customer can expect same honor

& respect from the company or
showroom management to his friend
or relative who is introduced by him.
NEEDS, WANTS AND DEMANDS

Needs are basically like food,

water, cloth and shelter, without
which a human cannot live and
survive.
 NEEDS, WANTS AND DEMANDS

Wants are desires, to have more

satisfaction and comfort than the basic
needs.
Instead of taking rice or chapatti to satisfy
hunger, a person will go for Chinese or
Italian food. Needs are few but Wants
are many. These wants are shaped and
reshaped continuously by the social
forces, institutions and marketers.
 NEEDS, WANTS AND DEMANDS
Demands are Wants for specific products
that are backed by the
a) ability to buy and
b) willingness to pay
Wants becomes demands when supported
by the purchasing power of the customers.

The marketers must not only know the

consumer’s taste and preference but also
the purchasing power of the consumer and
how many are willing to buy.
 DEMAND STATES AND MARKETING
TASKS

1 Negative Demand: Eg., vaccinations,

aids treatment, dental work,
vasectomies and employees such as
alcoholics, ex-convicts has negative
demand
2 No Demand: Eg., farmers not
interesting in new cultivating methods,
students not interested in new foreign
courses because of unaware or
ignorance.
 DEMAND STATES AND MARKETING
TASKS

3 Latent Demand: Eg., harmless

cigarettes, fuel efficient cars, fat-
free pizzas and burgers, excess
usage of cell phones etc.,

4 Declining Demand: Eg., at

present software jobs are facing
declining demand
 DEMAND STATES AND MARKETING
TASKS

5 Irregular Demand: Eg., seasonal

demand like raincoats, umbrellas, a/c’s,
theaters face demand only at weak
ends.

6 Full Demand: Eg., any new product

with reasonable price and good quality
 DEMAND STATES AND MARKETING
TASKS

7 Overfull Demand: Eg., Because of

good advertising and promotion, a
product can have overfull demand
which is very difficult to handle.
8 Unwholesome Demand: Eg., Without
proper advertisements, marketing
products, attract consumers such as
cigarettes, alcohol, drugs, x-rated
movies, pirated cd’s etc.,
 PRODUCTS
According to Philip Kotler, “a
product is anything that can be
offered to satisfy a need or want”.
According to W.J. Stanton, “ a
product is a set of tangible and
intangible attributes, including
packaging, color, price,
manufacturer’s prestige, retailer’s
prestige and manufacturer’s and
retailer’s services”.
 EXCHANGE

Exchange is a process of, giving and

taking the goods and services in
return between two parties or
persons who are agreed to act upon
the certain terms and conditions for
the benefit of the both. The
‘Exchange’ is further called
“Transaction”.
 TRANSACTION
 Transactions are of two types

1] Monetary transaction: In return of

products and services the buyer
offers cash to the seller.

2] Barter system: Instead of cash

transaction, there will be
products and services exchange
in between the two parties.
 VALUE, COST & SASTISFACTION
The product will be successful only if it
delivers the satisfaction to the target
buyers. It is a ration between the
customers ‘gets’ and what he ‘gives’.
Value = Benefits / Costs

I.e., Functional Benefits + Emotional

Benefits
----------------------------------------------
Monetary costs + Time costs + Energy
costs + Psychic costs
 MARKET & MARKETERS
Market is place where
buying and selling takes place
and where buyers and sellers
exist to exchange the goods
and services for a value.
Marketers are those who
takes the products to the end
users through promotional
activities.
 TYPES OF MARKETS

 CONSUMER MARKETS
 BUSINESS MARKETS

 GLOBAL MARKETS

 NON-PROFIT AND GOVT.,

MARKETS
 CONSUMER MARKET
CONCENTRATES MORE ON
@ SELLING MASS CONSUMER
GOODS AND SERVICES
@ FEATURES OF THE PRODUCT
@ QUALITY OF THE PRODUCT
@ DISTRIBUTION COVERAGE
@ PROMOTION EXPENDITURES -
HELPS TO ACHIEVE BRAND
IMAGE
 BUSINESS MARKET
CONCENTRATES MORE ON
@ SELLING BUSINESS GOODS AND
SERVICES
@ RE-SELL THE PRODUCTS TO
OTHERS OR END USERS
@ FEATURES & QUALITY OF THE
PRODUCT
@ ADVT., PLAYS MAIN ROLE TO
ACHIEVE BUSINESS CUSTOMERS
@ STRONG ROLE BY SALES FORCE,
PRICE, COMPANY REPUTATION
 GLOBAL MARKET
CONCENTRATES MORE ON
@ HOW TO ENTER( AS AN EXPORTER, LICENSER,
JOINT VENTURE PARTNER, CONTRACT
MANUFACTURER OR SOLO MANUFACTURER
@ HOW TO ADOPT PRODUCT OR SERVICE
@ PRICING THE PRODUCT IN DIFFT.,
COUNTRIES
@ TO ADOPT DIFFT., LEGAL SYSTEMS
@ TO FOLLOW DIFFT., STYLES OF
NEGOTIATIONS
@ DIFFT., REQUIREMENTS FOR BUYING,
OWNING AND DISPOSING THE PROPERTY
@ DIFFT., CURRENCY IN DIFFT., COUNTRIES
WITH DIFFT., VALUES
@ CONDITIONS OF CORRUPTION OR POLITICAL
FAVORITISM AND ETC.,
NON-PROFIT AND GOVT., MARKETS
CONCENTRATES MORE ON
@ SELLING GOODS & SERICES TO
NON-PROFIT AND GOVT., ORG.
@ LIMITED PURCHASING POWER,
PRICING IS MOST IMPORTANT
@ LOWER PRICES EFFECT THE
QUALITY & FEATURES OF THE
PRODUCT
@ SELLING THROUGH BIDS,
TENDERS, AUCTIONS, ETC.,
 Scope of Marketing
ideas goods

information services

organisations experiances

properties events
places persons
 CONCEPTS
 PRODUCTION CONCEPT
 PRODUCT CONCEPT

 SALES CONCEPT

 MARKETING CONCEPT

 SOCIETAL MARKETING

CONCEPT
 PRODUCTION CONCET
THE PRODUCTION CONCEPT HOLDS
THAT CONSUMERS WILL PREFER
PRODUCTS THAT ARE WIDELY
AVAILABLE AND INEXPENSIVE.
THE PRODUCTION ORIENTED
BUSINESS CONCENTRATES ON
ACHIEVING HIGH PRODUCTION
EFFICIENCY AND LOW COSTS AND
MASS DISTRIBUTION. I.E., LESS
INPUTS AND MORE OUTPUTS.
 PRODUCT CONCEPT

THE PRODUCT CONCEPT

HOLDS THAT CONSUMERS
WILL FAVOUR THOSE
PRODUCTS THAT OFFER THE
MOST QUALITY,
PERFORMANCE, OR
INNOVATIVE FEATURES.
 SELLING CONCEPT

THE SELLING CONCEPT HOLDS THAT

CONSUMERS AND BUSINESSES, IF
LEFT ALONE, WILL ORDINARILY NOT
BUY ENOUGH OF THE
ORGANIZATION’S PRODUCTS. THE
ORGANIZATION MUST, THEREFORE,
UNDERTAKE AN AGGRESSIVE
SELLING AND PROMOTION EFFORT.
 MARKETING CONCEPT
The marketing concept has 4 main features
1 A customer oriented: Management totally
focuses on customers needs, wants, tastes
and preferences and the product is made
based on customer’s choice.
2 A market oriented: Here the focus is on
market, that is
~ low level markets
~ middle level markets
~ high level markets,
the product is made according to the market
requirements and price, quality also depends
to satisfy that market customer.
 MARKETING CONCEPT
3 A support of various departments aimed to
company’s goals: Top management
Formulates different objectives to different
departments to achieve company’s main goals i.e.,
firm’s image, market share, brand image or profit
oriented.
4 An overall performance and operations of the
company: Management sets
~ Policies
~ Procedures
~ Organizational Structures
~ Programs
to achieve greater total results and applies all
functions of management i.e.,
planning, organizing, staffing, directing, coordinating
and controlling to entire operations to achieve single
set of objective applicable to total organization.
 SOCIETAL MARKETING
CONCEPT
THE SOCIETAL MARKETING CONCEPT
HOLDS THAT THE ORG., TASK IS TO
DETERMINE THE NEEDS, WANTS AND
INTERESTS OF TARGET MARKETS
AND TO DELIVER THE DESIRED
SATISFACTIONS MORE EFFECTIVELY
AND EFFICIENTLY THAN
COMPETITIORS IN A WAY THAT
PRESERVES OR ENHANCES THE
CONSUMER’S AND THE SOCIETY’S
WELL-BEING.
 ADVANTAGES OF MARKETING
CONCEPT
It satisfies the customer needs, wants
and desires
 It makes possible improvements in the
existing products
 It creates and innovates new products
and services
 It increases the comfort level of the
customers
 It makes optimum utilization of all
resources
 It creates more mediators and
intermediaries for effective marketing
 LIMITATIONS OF MARKETING
CONCEPT
 By too much concentration on the one sector
of consumers satisfaction , firms may loose
the other sector consumers
 By too much concentration on the one
segment market, the firm my cause harm to
other segment or to the society as a whole
 The firm cannot change its products as fast as
consumer’s taste and preferences change
 The comforts and desires of consumers may
not be good and healthy for the society and
organizations
 Objectives of Marketing
The basic objective of marketing is to satisfy
the needs and wants of the customers.
However, the overall objectives can be
summarized as:
 To plan and develop the product on the basis
of known customer demand
 To increase profits and goodwill of the
enterprise.
 To organize, direct and control all marketing
activities.
 To inform the customers and society about the
markets
 To enable the successful distribution
 To supply necessary information for marketing
decisions.
 IMPORTANCE OF MARKETING
>> Organizations fulfill their objectives
through marketing
>> Any organization, which is not doing
marketing, is not a business
>> The success and failure of any organization
depends on marketing
>> Marketers are forces to sell the products
according to the needs and wants of the
Customers
>> India is developing through marketing
concept
>> Global markets also depends upon the
marketing concept
INDIAN MARKETING ENVIRONMENT
THERE ARE TWO TYPES OF ENVIRONMENTS IN ANY
MARKET. THEY ARE
1. TASK ENVIRONMENT, INVOLVES
~~ PRODUCING
~~ DISTRIBUTING
~~ PROMOTING
~~ OFFERING
MAIN ACTORS ARE COMPANY, SUPPLIERS
(WHICH INCLUDES GOODS AS WELL AS
SERVICES), DISTRIBUTORS, DEALERS,
AND THE TARGET CUSTOMERS
INDIAN MARKETING ENVIRONMENT
(CONTD.,)
2. BROAD ENVIRONMENT, INVOLVES
SIX COMPONENTS

~~DEMOGRAPHIC ENVIRONMENT
~~ECONOMIC ENVIRONMENT
~~NATURAL ENVIRONMENT
~~TECHNOLOGICAL ENVIRONMENT
~~POLITICAL-LEGAL ENVIRONEMENT
~~SOCIO-CULTURAL ENVIRONMENT
 References

Marketing Management
by Philp kotler