MARKETING
MANAGEMENT
Module-I
What is Marketing?
“Human activities directed at the
satisfaction of needs and wants
through exchange processes”
(Kotler, Northwestern
University)
Marketing Management
Philosophies
Societal
Societal Marketing
Marketing Concept
Concept
Marketing
Marketing Concept
Concept
Selling
Selling Concept
Concept
Product
Product Concept
Concept
Production
Production Concept
Concept
Production Concept
Consumer will buy goods that are
widely available and inexpensive;
focus is on improving efficiency in
production and distribution.
Motto is “ one size fits all”.
Standard products.
Economies of scale.
Mass distribution.
Example:
The Product concept:
Customer favour products that are
highly engineered.
Products of high quality.
Innovative products.
Stress on superior products and
improving them.
The Product Concept
Selling Concept
Consumer will not buy enough of your
product if you leave them alone; focus
on advertising and contact with
potential customers.
Buying inertia.
Coax and cajoled in buying products.
Invest heavily in aggressive selling
and promotion.
“Selling Mindset”
Marketing Myopia
Concept given by Theodore Levitt.
Symptoms:
Narrow definition of business
Levitt stated that “customer buy ¼”
holes and not “1/4 drill bits”.
Preoccupation with product or
technology.
Product is forever and has no
substitute.
Mass production.
Over optimism about growing
markets.
Marketing Concept
Consumers will buy your products
if you identifies their needs and
satisfy those needs better than the
competitors.
It is a pull function
5 Pillars of M.C
1. Target markets
2. Understanding customer needs
3. Creating products to satisfy those
needs
4. Integrated marketing
5. Profitability through customer
satisfaction
Differentiation b/w Selling &
Marketing concept:
Societal Marketing Concept
Focus on satisfying customer needs
and
wants while enhancing individual
and
societal well-being
Is the idea that a company should
make good marketing decisions by
considering consumers’ wants, the
company’s requirements,
consumers’ long-term interests,
and society’s long-run interests
Marketing that preserves or
enhances an individual’s and
society’s long-term
best interests
- Less toxic products
- More durable products
- Products with reusable
or recyclable materials
Holistic Concept
Based on the development, design
and implementation of marketing
programs, processes and activities.
“Everything matters” is the motto
here.
It lays emphasis on integration of all
the functions.
Integrated
Marketing
Socially
Internal Holistic
Responsible
Marketing Marketing
Marketing
Relationship
Marketing
Core concept of
marketing:
“NEED”
Basic human
requirement.
State of felt
deprivation
including physical,
social, and
individual needs.
“Want”
When need is
directed to specific
objects it becomes
want.
Here it has taken a
tangible form.
It has become very
evident.
Wants are shaped
by one's society.
“Demand”
Wants Buying Power
“Demand”
“Demand”
Are wants for specific products
backed by an ability to pay.
Market Offerings—
Products, Services, and
Experiences
Market offerings are some
combination of products, services,
information, or experiences offered
to a market to satisfy a need or want
Customer Value &
Satisfaction:
What is Value?
VALUE =BENEFITS (the customer
receives): COST (incur to acquire the benefits).
Value = Functional Benfits +
Emotional Benefits.
Cost = Monetary + Time+ Energy+
Psychic
Customer perceived value is the
difference between total customer
value and total customer cost
Customer satisfaction is the extent
to which a product’s perceived
performance matches a buyer’s
expectations
Understanding the Marketplace
and Customer Needs
Markets are the set of actual and
potential buyers of a product
Marketing system consists of all of
the actors (suppliers, company,
competitors, intermediaries, and end
users) in the system who are
affected by major environmental
forces
Economic
Physical
Technological
Political–legal
Demographic
Socio-cultural
Choosing a Value
Proposition
The value proposition is the set of
benefits or values a company
promises to deliver to customers to
satisfy their needs
Customer Relationship
Management
(CRM)
Customer relationship
management is the overall process
of building and maintaining
profitable customer relationships by
delivering superior value and
satisfaction
Customer Relationship
Levels and Tools
Basic relationship
Full relationships
Frequency marketing programs
Club marketing programs
The Changing Nature of
Customer Relationships
Relating with more carefully
selected customers uses selective
relationship management to target
fewer, more profitable customers
Relating directly uses direct
marketing tools (telephone, mail
order, kiosks, Internet) to make
direct connections with customers
Partner relationship management
refers to working closely with
partners in other company
departments and outside the
company to jointly bring greater
value to customers
Partners inside the company is every
function area interacting with customers
Electronically
Cross-functional teams
Partners outside the company is how
marketers connect with their suppliers,
channel partners, and competitors by
developing partnerships
Supply chain is a channel that
stretches from raw materials to
components to final products to final
buyers
Supply management
Strategic partners
Strategic alliances
Creating Customer Loyalty and
Retention
Customer lifetime value is the value
of the entire stream of purchases
that the customer would make over
a lifetime of patronage
Growing Share of Customer
Share of customer is the portion of
the customer’s purchasing that a
company gets in its product
categories
Building Customer Equity
Customer equity is the total
combined customer lifetime values
of all of the company’s customers
Building Customer Equity
Building the right relationships with
the right customers involves treating
customers as assets that need to be
managed and maximized
Different types of customers require different
relationship management strategies
• Build the right relationship with the right
customers
