MARKETING

MANAGAEMENT
By: Prof. Dipti Purohit
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 product or service available.’
 Selling vs.
Marketing
• Selling is “push”,
Marketing is “pull”.
Selling vs. Marketing
Selling Marketing
• 1.Emphasis on the needs of • 1.Emphasis on the needs of the
seller buyer
• 2. First a product is made, then • 2. First, target market and its
wants are identified. The product
efforts are taken to sell it
is made to satisfy these wants.
• 3.The company’s goal is to • 3. The company’s goal is to satisfy
convert the product into cash the needs and wants of customer
by selling a large volume. by means of the product.
• 4. Short-term results are Profitable sales volumes is
expected from planning. Only incidental
current products and markets • 4. Long-term strategic planning
and new markets are considered.
are considered.
Future growth is an ultimate aim.
 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 ,wants and demands
• Needs are basic human requirements
people need food , air, water clothing and
shelter.
• Marketing do not create the needs.
• In fact they influence the demand by
making the product appropriate , attractive,
affordable.
Importance of
Marketing

• Have you seen this girl before?

Do you remember the NIRMA
jingle?
Importance of Marketing
• Marketing Promotes Product
Awareness to the Public
• Marketing Helps Boost Product Sales
• Marketing Builds Company Reputation
This is a Need
• Needs - state of felt
deprivation including
physical, social, and
individual needs
 Wants
• Needs become wants they are
directed to specific objects that
might satisfy their needs.
 This is a Want
Wants – Needs become
wants when they are
directed to specific
objects that might
satisfy the need.
 Demands
• Demands are wants for products that are
bagged by an ability and willingness to buy
them.
 This is Demand

Wants Buying Power

“Demand”
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.
Assignment
• With an example explain the
need concept.
• Take a product relate it to all the
types of need explained.
 NEEDS, WANTS AND
DEMANDS

Needs are basically like food,

water, cloth and shelter, without which
a human cannot live and survive.
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.
WHAT IS MARKETED?
• GOODS
• SERVICES
• EVENTS
• EXPERIENCES
• PERSONS
• PLACES
• PROPERTIES
• ORGANIZATIONS
• INFORMATION
• IDEAS
Scope of Marketing
ideas goods

information services

organisations experiances

properties events
places persons
WHO MARKETS?
WHO MARKETS?
Key customer markets: consumer,
business,
global, and nonprofit.
● Marketplace: physical
● Marketspace; digital
● Metamarket: a cluster of complementary
closely related in the minds of consumers,
spread across a diverse set of industries
WHO MARKETS?
• Marketers market to Prospects
• Marketers do Demand
management: seek to
influence the level, timing &
composition of Demand
• 8 Demand states are possible.
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.,
 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.,
 Company
orientations
towards the
marketplace
.
• Production concept
• Product concept
• Selling concept
• Marketing concept
• Holistic marketing concept
• Relationship marketing
• Integrated marketing
• Internal marketing
• Socially responsible
marketing
 Production Concept
• Consumers favor products that are
available and highly affordable
• Improve production and distribution
• Focus On Manufacturing (D>S)
• Goal: Produce All That Is Possible
 Product Concept
• Assumption: Consumers favor products that
offer the most quality, performance, and
innovative features
• Focus on Manufacturing (D>S)
• Means: Make quality products
• “You can have any color you want as long as
it’s black.”
• “Make the best product you can and people
will buy it.”
• “Build a better mousetrap”
 Selling Concept
• Mid-1920s–early 1950s: weakened demand
required that products would have to be “sold.”
(personal selling, advertising, and distribution
was the focus)
• Focus on selling existing products (D=S)
• Means: Aggressive Sales & promotion
• Goal: Maximize Sales
• “Sell this inventory no matter what it takes.”
• “You don’t like black? I’ll throw a set of
glassware.”
Marketing Concept
• Early 1950s–2000s: adopting a
customer focus means a
commitment to researching and
responding to customer needs.
• Long-Run View
• Consumer want focus
• Integrated planning and feedback
• Adapt to the environment
 Selling versus Marketing
Selling
Starting
point Focus Means Ends

Factory
Factory Product
Product Selling
Selling &
& Profits
Profits through
through
promoting
promoting sales
sales volume
volume

Marketing
Target
Target Customer
Customer Integrated
Integrated Profits
Profits through
through
market
market needs
needs marketing
marketing customer
customer satisfa
satisf

Marketing is not synonymous with “sales” or “advertising”.

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.
 Holistic Marketing
Concept 1
• Relationship Marketing
• Developing Marketing Networks
• Using CRM
• is “the overall process of building & maintaining
profitable customer relationships by delivering
superior customer value and satisfaction.” (Kotler,
13ed 2006)
• Using information to create marketing strategies that
develop and sustain desirable customer relationships
• Establishing long-term, mutually satisfying buyer-
seller relationships allowing for mutual dependency
 Holistic Marketing
Concept 2
• Integrated Marketing
• is a comprehensive plan that communicates
and delivers the intended value to chosen
customers
• a set of coordinated cross functional activities
(a unity of purpose)
• traditional approach- McCarthy 4P’s
• Robert Lauterborn- 4C’s
Holistic Marketing Concept 3
Marketing Strategy
• Internal Marketing
• External
Marketing Implementation
Customers
• Internal Customers
Internal Marketing External Marketing
Program Program

Marketing Mix Marketing Mix

Target Groups Within Customer Groups or

the Organization Target Markets
Holistic Marketing Concept 4
• Social responsibility Marketing
• Act socially responsibly; consider
• the ethical consequences of one’s actions;
• Focus on satisfying customer needs and
wants while enhancing individual and
societal well-being
• Consider the collective needs of society as
well as customer desires and the
organization’s profits. (Bell& Emory,1971 JM)
• Society..…… #1 (Human welfare)
• Consumers ..#2 (Want satisfaction)
• Company ….#3 (Profits)
Activity A
• Give at least two examples of
companies following these concepts
with justifications:
• 1. Production Concept:
• 2. Product Concept:
• 3. Selling Concept:
• 4. Marketing Concept:
• 5. Customer Concept:
• 6. Holistic Marketing Concept:
 Activity B
With the example of Nokia
mobile handset, note down
the factors involved in the
4Ps of marketing mix:
•Product
•Price:
•Place:
•Promotion
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
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”.
Product as an idea
• Products do not have
to be physical objects.
Here the “product” is an
idea—protecting
animals.
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: Insteadof 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