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Marketing Management

P.Sivarajadhanavel
Lecturer, School of Management
Kongu Engineering College, Perundurai
What is Marketing?
• Needs, Wants, and Demands
• Products (Goods, Services and Ideas)
» A Product is anything that can be offered to satisfy a need or
want
» It’s offering or solution to the needs of the customers
» It can be of any form – Physical, services, Ideas
• Value, Cost and Satisfaction
• Exchange and Transaction
• Relationships and Networks

• Markets – A Market consists of all the potential customers


sharing a particular need or want who might be willing and
able to engage in exchange to satisfy that need or want
Core Concept Marketing
Needs, Wants and Demands

Products (goods, Services, and Ideas

Value, Cost and Satisfaction

Exchange, and transaction

Relationships and networks

Markets

Marketers and prospects


What is Marketing?
• An Art
• A Business Function
• A Process
• A Science
• A Practice
• A Relationship
• A System
• A Philosophy
Marketing Definition
– Marketing is an organizational function and a set of
processes for creating, communicating, and delivering value
to customers and for managing customer relationships in
ways that benefit the organization and its stakeholders. -
AMA
– The Chartered Institute of Marketing defines Marketing as -
“Marketing is the management process for identifying,
anticipating & satisfying customer requirements profitably.”
– 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 Definition
– One of the shortest definitions of marketing is “meeting
need profitably”.
– Marketing is the economic process by which goods and
services are exchanged between the producer and the
consumer and their values determined in terms of money
prices.
– 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” - Philip Kotler.
– American Marketing Association – “It is the process of
planning & executing the conception, pricing, promotion &
distribution of ideas, goods & services to create exchange
that satisfy individual & organizational goals”
Simple Marketing System
Communication

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

Information
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What is Marketed?
– Goods
– Services
– Events
– Experience
– Persons
– Places
– Properties
– Organizations
– Information
– Ideas
Core Concepts of Marketing

Based on :
 Needs, Wants, Desires / demand

 Products, Utility, Value & Satisfaction


 Exchange, Transactions & Relationships
 Markets, Marketing & Marketers.
Core Concepts of Marketing

Needs, wants Utility, Value &


Products
demands Satisfaction

Marketing & Xchange, Transaction


Markets
Marketers Relationships
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
Who is a Customer ?
 CUSTOMER IS . . . . .
Anyone who is in the market looking at a product / service for
attention, acquisition, use or consumption that satisfies a
want or a need
CUSTOMER has needs, wants, demands and desires

Understanding these needs is starting point of the entire marketing

These needs, wants … arise within a framework or an ecosystem

Understanding both the needs and the ecosystem is the starting


point of a long term relationship
How Do Consumers Choose Among
Products & Services?

Value - the value or benefits the customers gain from using


the product versus the cost of obtaining the product.
Satisfaction - Based on a comparison of performance and
expectations.
– Performance > Expectations => Satisfaction
– Performance < Expectations => Dissatisfaction
Customers - Problem Solution

As a priority , we must bring to our customers “WHAT THEY


NEED”
We must be in a position to UNDERSTAND their problems
Or in a new situation to give them a chance to AVOID the
problems
Customer looks for Value

Value = Benefit / Cost


Benefit = Functional Benefit + Emotional Benefit
Cost = Monetary Cost + Time Cost + Energy Cost + Psychic
Cost
Demand States
– Negative
dislike
– Non Existent
unaware/uninterested
– Latent
not satisfied by existing product
– Declining
– Irregular
– Full
buying all products put into market place
– Overfull
More consumer like to buy
– Unwholesome
5 Basis of Marketing
Key Customer Markets
• Consumer markets
• Business markets
• Global markets
• Non-profit and governmental markets
– Market place: Physical
– Marketspace:digital
Business/Marketing: Changing
– Changing technology
– Globalization
– Deregulation
– Privatization
– Customer empowerment
– Customization
– Heightened competition
– Industry convergence
– Retail transformation
– Disintermediation
Company orientations towards the market place

– The Exchange concept


– The production concept
– The product concept – Marketing Myopia
• Professor Theodore Levitt – a shortsighted view of business
– The Sales or selling concept
– The marketing concept
– The holistic marketing concept
• Relationship marketing
• Societal marketing: Social responsibility marketing: humanistic
marketing: Ecological marketing
• Cause-related marketing- Pringle and Thompson
• Integrated marketing
• Internal marketing
Selling Vs Marketing
• Selling
• 1 Emphasis is on the product
2 Company Manufactures the product first
3 Management is sales volume oriented
4 Planning is short-run-oriented in terms of today’s products and
markets
5 Stresses needs of seller
6 Views business as a good producing process
7 Emphasis on staying with existing technology and reducing costs
8 Different departments work as in a highly separate water tight
compartments
9 Cost determines Price
10 Selling views customer as a last link in business
Selling Vs Marketing
• Marketing
• 1 Emphasis on consumer needs wants
2 Company first determines customers needs and wants and then decides out how
to deliver a product to   satisfy these wants
3 Management is profit oriented
4 Planning is long-run-oriented in today’s products and terms of new products,
tomorrow’s markets and   future growth
5 Stresses needs and wants of buyers
6 Views business as consumer producing process satisfying process
7 Emphasis on innovation on every existing technology and reducing every sphere,
on providing better   costs value to the customer by adopting a superior technology
8 All departments of the business integrated manner, the sole purpose being
generation of consumer    satisfaction
9. Consumer determine price, price determines cost
10. Marketing views the customer last link in business as the very purpose of the
business
Societal Marketing
• The societal marketing concept is an
enlightened marketing concept that holds that a company
should make good marketing decisions by considering
consumers' wants, the company's requirements, and society's
long-term interests. It is closely linked with the principles
of corporate social responsibility and of sustainable
development.
• The concept has an emphasis on social responsibility and
suggests that for a company to only focus on exchange
relationship with customers might not be suitable in order to
sustain long term success. Rather, marketing strategy should
deliver value to customers in a way that maintains or improves
both the consumer's and the society's well-being
Core Concepts
– Needs, wants, and demands
– Target markets, positioning, segmentation
– Offerings and brands
– Value and satisfaction
– Marketing channels
Communication, distribution and service channels
– Supply chain
– Competition
– Marketing environment
Task environment
Broad environment
– Marketing planning
Types of Needs
– Stated needs – the customer wants an inexpensive car
– Real needs – the customer wants car whose operating cost, not its initial
price, is low
– Unstated needs – the customer expects good service from the dealer
– Delight needs – the customer buys the car and receives a complimentary
products
– Secret needs – the customer wants to be seen by friends as a value-
oriented savvy consumer
Learning……….
• s

The concept of 4Ps of a marketing mix was introduced


by Jerome McCarthy- developed by Philip Kotler
Shifts in Marketing Management
– From marketing does the marketing to everyone does
the marketing
– From organizing by product units to organizing by
customer segments
– From managing everything to buying more goods and
services from outside
– From using many suppliers to working with fewer
suppliers in a partnership
– From relying on old market positions to uncovering new
ones
Continues…
– From emphasizing tangible assets to emphasizing
intangible assets
– From building brands through advertising to building
brands through performance and integrated
communication.
– From attracting customers through stores and sales
people to making products available online
– From selling to everyone to trying to be the best firm
serving well defined target market
– From focusing on profitable transactions to focusing
customer life time value
Continues…
– From a focus on gaining market share to a focus on
building customer share
– From being local to being “Glocal”- Both global and local
– From focusing on the financial scorecard to focusing on
the marketing scorecard
– From focusing on shareholders to focusing on
stakeholders
Marketing Management Tasks
– Developing marketing strategies
– Capturing marketing insights
– Connecting with customers
– Building strong brands
– Shaping market offerings
– Delivering value
– Communicating value
– Creating long-term growth
The 4 Ps & 4Cs

Marketing Convenience
Mix

Place
Product

Customer
Solution
Price Promotion

Customer Communication
Cost

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Marketing Mix (4p’s)

Product Price

Place Promotion

The marketing mix principles are controllable variables


which have to be carefully managed and must meet the
needs of the defined target group. All elements of the mix are
Linked and must support each other.
Marketing Mix (4p’s)

Product Decisions

Branding Quality Features

Benefits offered

We must remember that Marketing is fundamentally about providing the correct bundle of
benefits to the end user, hence the saying ‘Marketing is not about providing products or
services it is essentially about providing changing benefits to the changing needs and
demands of the customer’ (P.Tailor 7/00)
Marketing Mix (4p’s)

Penetration

Skimming

Pricing Strategies Competition

Product Line
Pricing is the only mix which generates a turnover
for the organisation. The remaining 3p’s are the
variable cost for the organisation. It costs to
produce and design a product, it costs to
Bundle
distribute a product and costs to promote it. Price
must support these elements of the mix. Pricing is
difficult and must reflect supply and demand Psychological
relationship.
Marketing Mix (4p’s)

Advertising

Public
Relations

Sales
Promotional Mix Promotion

Personal
Selling

A successful product or service means nothing Direct


unless the benefit of such a service can be Mail
communicated clearly to the target market. An
organisations promotional mix can consist of:
Internet/
E-commerce
Marketing Mix (4p’s)

Direct Distribution Indirect Distribution

Manufacturer

Manufacturer

Retailer

Consumer
Consumer
What is Marketing all about do you think?

Value Creation
Value Delivery

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