Marketing Management

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 Marketing = ?

• Selling?

• Advertising?

• Promotions?

• Making products available in stores?

• Maintaining inventories?
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 Marketing is….

All of the above, plus much more!

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 Marketing = ?
Marketing is the process of planning and executing the
conception, pricing, promotion, and distribution of ideas, goods,
services to create exchanges that satisfy individual and
organizational goals.
American Marketing Association
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.
Marketing is “the science and art of exploring, creating, and
delivering value to satisfy the needs of a target market at a profit”.

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Core ingredients of various definitions indicate the key
functions and activities of marketing

• Customer is the center of all Marketing activities.

• Marketing focuses on the needs and wants of customers.
• Identifying favorable emerging market opportunities
• It is concerned about satisfying customers through supply of
goods and services
• Marketing is concerned about staying ahead with competition
and making profits
• Marketing has a heavy emphasis on relationships
• Creating value to both the customer and organization

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 Marketing Concepts
Definition
Marketing concepts can be defined as the marketing philosophies by
which a firm’s goal can be best achieved through identification and
satisfaction of the customers’ stated and unstated needs and wants.
Meaning
Companies adopt different philosophies in relation to marketing of
their products. Some claim that they are customer oriented and
others say that they offer value to their customers. Still others say
that they treat their customers as kings. These philosophies in
relation to marketing are known as marketing concepts.
Marketing concepts or marketing management philosophies are the
philosophies used by the businesses to guide their marketing
efforts.
Marketing Philosophies/Concepts
There are six marketing concepts. A company
should choose the right one according to their
and their customers’ needs.
1. Production Concept
2. Product Concept Traditional Concepts
3. Selling Concept
4. Marketing Concept
5. Social Marketing Concept& Modern Concepts
6. Holistic Marketing Concept

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 Production Concept

• “ Consumers will prefer products that are

widely available and inexpensive”

• Concentrates on – high production efficiency

low cost- mass distribution

• Heavy focus on the Price and Place in

Marketing Mix
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 Product Concept

• “ Consumers will favor those products that offer

most quality, performance or innovative
features”
• Just making superior products will make
customers seek and buy them
• More focus on “Product” in the Marketing Mix.
• Successful marketing requires continuous product
planning and development and improvement in
quality standards.

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 Selling Concept
• “If consumers are left along, will ordinarily not
buy enough of the organisation’s products.
Therefore the organisations must undertake
aggressive selling and promotional effort”
• Consumers have buying inertia and have to be
persuaded
• Practiced more on unsought goods
• Sell what is made or available rather than what
consumer wants.
• Heavy focus on Promotion on the M.Mix
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 Marketing Concept
• “Key to achieving organisational goals consists in
determining the needs and wants of target market and
delivering the desired satisfaction more effectively
than competitors”.
• The primary task of a business firm is to study the
needs, desires and the preferences of the potential
consumers and produce goods which are actually
needed by the consumers.
• Focus on all Ps of the Marketing mix.
• To apply marketing concept three conditions should be
met: Customer orientation, Integrated efforts, and
goal achievement

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Key Components of Marketing Concept

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 Societal Marketing Concept
• “Organisations task is to determine the needs, wants
and interest of consumers of target markets and to
deliver the desired satisfaction more effectively and
efficiently than competitors in a way that preserve or
enhances the customer’s and the societies well being”
• They must balance often conflicting position of
company profits, consumer wants and public interest
Societies well being is the public interest which
includes –
– Ecological (Green Marketing),
– Human ( Ethical Marketing) and
– The Intelligent Consumption

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Holistic Marketing Concept: Holistic marketing concept is a new marketing
concept. Holistic marketing recognizes that “everything matters” with
marketing- and that a broad, integrated perspective is often necessary.
There are four components of holistic marketing concept. They are:
• Relationship marketing
• Integrated marketing
• Internal marketing
• Social responsibility marketing
 What is Green Marketing?

• This stems from how marketer responds to the

environment. The marketers have been practicing
very environmental destructive activities.
• Resource depletion and degradation - Genetic
engineering- Pollution- Harmful emissions and
products- health hazards
• Barriers to Green M- Cost- Technological problems
,less innovation -less commitment and ignorance
considering world as bundle of raw materials for
the benefit of the current generation.

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 What is ethical Marketing?

• Ethical Marketing are the rules of conduct and moral

principals regulating marketing.
- The limit of Claims/Promises that can be made as to
product benefits
- Discriminating competing products
- Marketing of products like cigarettes, alcohol
- Limitations in Marketing products to children
- Religious/racially susceptible Brand names and images
- Unaccepted Promotional methods
- Using women in unaccepted manner

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 Relationship Marketing

• Customer retention has become a major problem in the competitive

world of business
• Relationship Marketing is the process of creating, building and
managing long term relationship with customers, distributors and
suppliers. Life Time Value of a customer is emphasized more than a
value of a single transaction
Benefits of relationship marketing
– Retaining existing customers is cheaper than getting new ones
– Repeat customers are costing less to service as they are familiar
with the company
– Reduce customer deflection and bad word of mouth
– Keep customer databases and service more effectively
– Small changes in retention rates have large effects on revenue

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 Marketing Oriented Approach:
Advantages
If an organisation can adopt a marketing oriented
approach it would be able to get
• Increased customer satisfaction
• Increased customer loyalty
• Increased reputation
• Increased motivation among staff
• Increased market share
• Reduction of waste
• Combat threats from competitors
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 Difficulties in Developing the
Marketing Orientation
• The main problem is with the differences of emphasis
of other branches of the organisation. Engineering,
production, Finance, R&D, HR etc.
• Lack of committed leadership and vision
• Failure of managers to understand the true concept
• Inability to adapt to change
• Difference in attitudes/culture
• Autocratic leadership
• Lack of customer knowledge
• Lack of infrastructure- required technology

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 The Marketing Mix
The conventional view of the marketing mix consisted
of four components (4 Ps): Product, Price, Place/
distribution and Promotion. ()
Generally acknowledged that this is too narrow today;
now includes , Processes, Productivity
[technology ]People [employees], Physical evidence
Marketers today are focused on virtually all aspects of
the firm’s operations that have the potential to
affect the relationship with customers.

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4 P Components of Marketing Mix
Service Marketing Mix

Modern Marketing
Management P’s
• People
• Processes
•Physical Evidence
• Programs (eg
customer directed
activities)
• Performance
(financial &
nonfinancial
outcomes)
7 P’s 21
 The 4 Ps & 4Cs

Marketing Convenience
Mix

Product Place

Customer
Solution Price Promotion

Customer Communication
Cost
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 Types of Pricing
• Premium Pricing
• Skimming Pricing
• Penetration Pricing
• Economy Pricing
• Optional Pricing
• Bundling Pricing
• Promotional Pricing
• Geographical Pricing

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 Methods of fixing the Price
• Cost based pricing
• Competition based pricing (Coke & Pepsi)
• Demand based pricing (Airlines Industry)
Another example of demand-based pricing is the rollout of
iPhones (Each new model released by Apple is priced
disproportionately high, taking advantage of the initial buzz.)

• Objective based pricing

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 Simple Marketing System
Communication

Goods/services
Industry Market
(a collection (a collection
of sellers) of Buyers)
Money

Information
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Difference Between - Sales &
Marketing ?

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Comparison between Selling and
Marketing Concept
 Difference between Traditional and
Modern Concepts of Marketing
Traditional Concept Modern Concept

1. Focus is on product only 1. Focus is on customers’ needs

and wants
2. Objective is profit 2. Objective is customer
maximisation satisfaction and customer
delight
3. Short-term oriented 3. Long term oriented
4. Less promotional activities 4. Sustained promotional
activities
5. Narrow concept 5. Broader concept
The Scope of Marketing

1. What is Marketing?
2. What is Marketed?
3. Who Markets?

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 Scope – 2. What is
marketed?
 Goods
 Services
 Events
 Experiences
 Personalities
 Place
 Organizations
 Properties
 Information
 Ideas and concepts

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Scope – 3. Who markets?
1. Marketers and Prospects
2. Markets
3. Key Customer Markets
1) Consumer Markets
2) Business Markets
3) Global Markets
4) Nonprofit and Governmental Markets

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Figure: Structure of Flows in Modern
Exchange Economy
 Core Concepts of Marketing
Based on :
 Needs, Wants, Desires / demand

 Products, Utility, Value & Satisfaction

 Exchange, Transactions &
Relationships
 Markets, Marketing & Marketers.

Needs, wants Utility, Value &

Products
demands Satisfaction

Marketing & Exchange, Transaction

Markets
Marketers Relationships
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 Core Concepts of Marketing

 Need – food ( is a must )

 Want – Pizza, Burger, French fry's ( translation of a need
as per our experience )
 Demand – Burger ( translation of a want as per our
willingness and ability to buy )
 Desire – Have a Burger in a five star hotel

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 Figure :
A Simple Marketing System
The Marketing Process

Business
Mission
Statement

Objective
s

Situation
or SWOT
Analysis

Marketing Strategy
Target Market
Strategy

Marketing Mix
Product Place/Distribution

Promotion Price

Implementation
Evaluation,
Control 36
 Marketing Management
Process

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Step 1: Setting Marketing Objectives
– The process of marketing management starts with the
activity of setting objectives.
– The organizational mission provides the priorities for
scanning the environment and finding out the
opportunities.
– Marketing Objectives: Increase sales volume, increase
growth rate, increase market share, increase market
penetration, maximize return on investment, promote
positive company image, promote social responsibility etc.

Step 2: Analysing Marketing Opportunities:

→This involves analysis of opportunities in the light of company
strengths and weakness-both internal and external. The task
may be to analyse long-run opportunities or short-run
opportunities or even medium term.
→This helps the companies to know the needs and wants of their
customers, their locations, buying and social practices and so
on. 38
Step 3: Researching and Selecting Target Markets
→The select target market company needs to know how to measure and
attractiveness of any given market. This requires estimating the market’s
overall size and growth and profitability.
→The modern marketing divided into major segments, evaluate them,
selecting and targeting those market segments that the company can
best serve.
→Company must know techniques for measuring market potential and
forecasting future demand.

Step 4: Designing marketing strategies

→The marketing strategy spells out the game plan for attaining the
business’s objectives or product/ market objective.
→Marketing strategy defines the broad principles by which the business
unit expects to achieves its marketing objectives in the target marketing.
→It consists of basic decisions on total marketing expenditure , marketing
mix , and marketing locations.
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Step 5: Planning Marketing Programmes
→It is not enough to formulate only the board of strategies by
which the business expects to achieve its marketing objective
but also plan the supporting marketing mix programmes.
→Decisions have to be taken regarding the features , packaging,
branding ,servicing policies etc. of the product

Step 6 : Organizing , implementing and controlling

marketing efforts:
→The final stage in the marketing management process is
organizing the marketing resources and implanting and
controlling the marketing plan.
→Marketing organization is typically headed by marketing Vice
President
→The company requires to design a marketing organization that
will be able to degenerate the marketing plan up to work, i.e.,
implementing its effort. 40