Marketing

Management

MEANING

The word market is derived form the Latin

word Marcatus meaning goods or trade or

a place where business is conducted. The
term marketing can be described as a
business activity planned at satisfying to
a reasonable extent, consumer or customer
needs and wants, generally through an
exchange process.

Marketing = Meeting needs Profitably

DEFINITION

The American Marketing Association defines marketing As an organizational

function and a set of processes for creating , communicating and

delivering value to customer and for managing customer relationships in
ways that benefit the organization and its stakeholders.
Marketing Management can be defined as : The art and science of choosing

target markets and getting , keeping , and growing customers through

creating, delivering, and communicating superior customer value.

DEFINITION OF MARKETING MANAGEMENT

Philip Kotler : Marketing is a societal process by which individuals and

groups obtain what they need and want through creating , offering , and
freely exchanging products and services of value with others .

MARKETING AND SELLING

NEEDS, WANTS & DEMANDS

Marketing starts with human needs & wants

A human need is a state of deprivation of some basic satisfaction
Wants are desires for specific satisfiers of needs
Demands are wants for specific products that are backed by an ability &
willingness to buy them
These distinctions shed light on the frequent criticism that marketers create
needs or marketers get people to buy things they dont want

WHAT IS MARKETED

1. Goods : Constitutes Bulk of most

countries production & Marketing Efforts
eg. Refrigerators, Washing Machines,
Mobile Phones
2. Services : Eg. Airlines , Hotels,
Beauticians, Barbers, Lawyers, Doctors,
Management Consultants.
3. Events : Time Based Events E.g Arijit
Singh Live Concert, Global Sporting
Events Such as World Cup, Olympic.
4. Experiences : It is majorly a mix of
Service & Products for E.g Walt Disney,
Scary House Etc.

5. Persons : Celebrity Marketing

6.Places : Cities , States Regions
7. Properties :Real Estate, Shares Etc.
8. Organizations : They tend to actively
work to build a unique image in the
minds of their target publics, Companies
Spend money on corporate identity to
boost their image and get audience.
9. Information: Encyclopedia,
10. Ideas : Social Marketing

CONCEPTS

Marketer is someone who seeks a response (Attention, a Purchase, a Vote , a

donation ) from another party called Prospect

If two parties are seeking to sell something to each other, we call them both

marketers.
Marketing managers are also concerned with demand management.

DEMAND STATES
Eight Demand States :
1. Negative Demand : Consumers Dislike the product and even pay a price to avoid it
Eg Vaccination , Dentist Visit.
Marketing tasks:
i. Analyse why the market dislike the product.
ii. Analyse whether the marketing program consist of program redesign, lower price and more
positive promotion
2. No demand:
Feature : Target consumers may be unaware and un interested about the product.
Example: I. Farmers may be not interested in new farming method.
ii. College students may not be interested in foreign language course.

Marketing tasks: Find ways to connect the products benefits of products with the peoples natural need
and interest

3. Latent demand:
Feature: Consumers may share a strong need that cannot be satisfied by any
existing product.
Example: Harmless cigarette, more fuel efficient car.
Marketing tasks:
I. Measure the size of the potential market.
ii. Develop goods and services to satisfy the demand.
4. Declining demand:
Feature: When the demand of the product or service becomes lower.
Example: Private colleges have seen application falls.
Marketing tasks:
i. Reverse the declining demand through creative remarketing.
ii. Analyse the cause of decline and determine whether the demand can be
stimulated by new target market.
5. Irregular demand:
Feature: Demand varies on a seasonal, daily and hourly basis.
Examples: Museums are under visited in week days and over crowded on week days.
Marketing tasks: Find ways to alter the pattern of demand through flexible pricing, promotion
and other incentives.

6. Full demand:
Feature: When the organization is pleased with their volume of business.

Marketing tasks:
I. Maintain the current level of demand in the face of changing consumer preference.

ii. Maintain and improve the products quality and continuously measure consumer
satisfaction.
7. Overfull demand:
Feature: Demand level is higher that the organization can and want to handle.

Example: National park is terribly overcrowded in the summer.

Marketing Tasks:
I. Finding ways to reduce the demand of the products.
ii. Raising price.
iii. Reducing promotion and service.
8. Unwholesome demand:
Feature: Those kinds of demands, not acceptable by the society.
Example: Cigarettes, hard drinks, alcohol.
Marketing tasks:
i. Fear message
ii. Price hikes.

MARKETS
Market : A Place where Buyers & Sellers gathered to buy and sell goods. Economist
describes market as a collection Of Buyers & Sellers who transact over a particular product
or product class.

Structure of
flows in a
Modern
Exchange
Economy

KEY CUSTOMER MARKET

Consumer Markets
Business Markets
Global Markets
Non Profit and Governmental Markets

Marketers view sellers as constituting the industry and buyers as constituting the market.

MARKETPLACE, MARKET SPACE & MET MARKETS

Market place : Physical such as store

Market Space : Digital
Meta market : A cluster of complementary products and services that are closely related in

the minds of customers.

ORIENTATION TOWARDS THE MARKET

Producti Emphasis On
PLACE
on
Producing
Concept

Goods

Product
Concept

Evolution of
Marketing
Concept

Producing
Quality Goods
Aggressive
Selling
Selling &
Concept
Promotion
Marketin
g
Concept

Right products
for Customers

Holistic
Do
Marketin
everything
g
possible
Concept

PRODUCTION CONCEPT
Oldest Concept

Believed That Consumers Prefer Available Goods

Focus Is On Efficient Production And Mass Distribution

This Orientation Makes Sense In Developing Countries

Efforts On Reducing Costs To Provide Inexpensive Goods

PRODUCT CONCEPT
Focus Is On Making Superior Goods

Believed That Consumers Prefer Goods With Best Quality

& Innovative Features

Importance Is Given To Improvising The Product

Less Focus On Consumers Need

Goods Sell Themselves

SELLING CONCEPT
Aggressive Selling And Promotion Effort
Sell More Stuff To More People And More Often

Used With Goods Which Buyers Usually Dont Think Of

Buying (Unsought Goods) Such As Insurance
Sell What Is Made Not What Market Wants

Carries High Risk As Can Result Into Negative Word Of

Mouth

MARKETING CONCEPT
Emerged In Mid 1950s

Find Right Product For The Customers

Focus Is On Creating, Communicating And Delivering
Superior Customer Value
Build Profit Through Customer Satisfaction And Loyalty

Begins With Well Defined Market And Ends With Long Term
Relationship

HOLISTIC MARKETING CONCEPT

Acknowledges That Everything Matters In Marketing

Relationship
Marketing

Performance
Marketing

Components

Internal
marketing

Integrated
Marketing

Relationship
Marketing

Build Mutually Satisfying Long Term Relationship

Key Parties Being Customers, Suppliers, Distributors

And Marketing Partners
Focus Is On Developing A Market Network Of
Customers, Employees, Suppliers, Retailers, Ad
Agencies, Etc.
Objective Is To Built Mutually Profitable Business
Relationship Which Will Make Profits To Follow

Integrated
Marketing

Marketing Activities Are

Employed To Communicate &
Deliver Value In A Co-ordinated Manner
Use of Marketing Mix The 4 Ps
Influence Trade Channels As Well Final Consumers Using
Offering Mix and Communication Mix
Offering Mix Product, Price and Services
Communication Mix Advertising, Sales Promotion, PR,
Events & Experiences, Direct Marketing and Personal
Selling

Internal
Marketing
Ensuring that everyone in the organisation embraces
appropriate marketing principles
Task of hiring, training and motivating employees who want to
serve customers well
No sense in promising excellent services unless the employees are
ready for it
Works at two levels Marketing Research and Marketing functions
like advertising, customer service, and product management
Marketing functions must be co-ordinated from the point of view of
the customer

Performance
Marketing
Financial Accountability : Justify investments in senior
management in financial and profitability terms.

Social Responsibility Marketing : Effects of marketing clearly

extend beyond the company and the customer to society as
whole, Marketers must carefully consider their role in
broader terms, and the ethical, environmental, legal, and
social context of their activities.
Societal marketing Concept : It holds that the task of the
organization is to determine the needs, wants, and
interests, of target markets and to deliver the desired
satisfaction more effectively and efficiently than
competitors in a way that preserves or enhances the
customers and society's long term well being.

MARKETING ENVIRONMENT ( TASK ENVIRONMENT)

The marketing Environment consists of

Environment :
Task Environment

Task Environment

and the

Broad

: Includes the actors engaged in producing, distributing, and

promoting the offering. These are the company, suppliers, distributors, dealers, and the
target customers. In the supplier group there are material suppliers and service suppliers,
such as marketing research agencies, advertising agencies, banking and insurance
companies, transportation and telecommunication agencies.. Distributor and dealers
include agents, brokers, manufacturer representatives, and other who facilitate finding and
selling to customers.

MARKETING ENVIRONMENT ( BROAD ENVIRONMENT)

Consists of 6 components :
1. Demographic environment
2. Economic Environment
3. Physical Environment
4. Technological Environment
5. Political Legal Environment
6. Social Cultural Environment

VALUE AND SATISFACTION

Value reflects the sum of the perceived tangible and intangible benefits and the

cost to customers.
Its primarily a combination of quality , service, and price (qsp) also called as Customer

Value Triad
Value Increases with quality and service and decreases with price, although other factors

can also play an important role in our perceptions of value.

Satisfaction reflects a persons judgement of a products ( Performance or outcome) in

relation to expectations.

MARKETING RESEARCH
It can be defined as the systematic design , collection, analysis and reporting of

data and findings relevant to specific marketing situation facing the company.
Companies normally budget marketing research at 1 -2 % of company sales.

Marketing Research firms falls into 3 categories :

1. Syndicated Service Research Firms : These firms gather consumer and trade

information, which they sell for a fee e.g Nielsen Media Research, SAMI/Burke
2. Custom Marketing Research firms : These firms are hired to carry out specific projects

they design the study and report the findings.

3. Specialty Line Marketing Research Firms : These firms provides specialized research

services, the best example is the field service firm, which sells field interviewing services
to other firms.

MARKETING RESEARCH PROCESS

Define the Problem and the Research
Objectives

Develop the Research Plan

Collect the Information

Analyze the Information

Present the findings

Make the decision