MODULE - I

INTRODUCTION TO MARKETING MANAGEMET

Introduction
 Marketing helps in inducing the demand and thus leading to financial success of a company.
 Marketing helps in introducing new services and products
 Marketing helps in creation of jobs in the society.
 Marketing applies to all aspects of the firm’s activities
 Marketing is about managing gainful customer relationships.

The aim of marketing is to generate value for customers and to capture value
from customers in return.
Marketing Definitions by Experts

Marketing is the activity, set of institutions, and processes for creating, communicating, delivering
and exchanging offerings that have value for customers, clients, partners and society at large -
American marketing Association
Marketing is the science and art of exploring, creating, and delivering value to satisfy the needs of a
target market at a profit. Philip Kotler
The marketing concept holds that the key to achieving organizational goals lies in determining the
needs and wants of target markets and delivering the desired satisfaction more efficiently and
effectively than the competition. Philip Kotler
Marketing includes research, targeting, communications (advertising and direct mail) and often
public relations. Marketing is to sales as plowing is to planting for a farmer—it prepares an
audience to receive a direct sales pitch. Renee Blodgett
Marketing is the process by which a firm profitably translates customer needs into revenue. Mark
Burgess
Marketing is meeting the needs and wants of a consumer. Andrew Cohen
Marketing is creating irresistible experiences that connect with people personally and create the
desire to share with others. Saul Colt
Marketing is branding, naming, pricing, and the bridge between paid and earned media. It is NOT
sales. Gini Dietrich
Marketing consists of individual and organizational activities that facilitate and expedite satisfying
exchange relationships in a dynamic environment through creation, distribution, promotion, and
pricing of goods, services, and ideas. Dibb, Simkin, Pride, and Ferrel
Marketing is so basic that it cannot be considered a separate function. It is the whole of business
seen from the point of view of its final result, that is, from the customer point of view. Business
success is not determined by the producer, but by the customer. Peter Drucker

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MARKETING
 Marketing is a process designed to plan, create, communicate, and deliver value to customers.
 Marketing helps in building active customer relationships benefitting both organization and
its stakeholders.
 The aim of marketing is to understand the consumer so well that product/service offerings
meet the customer needs and wants, and sells by itself via creation of market pull.
 Process by which individuals and groups obtain what they need and want through creating
and exchanging products and value with others.
 Marketing is the delivery of customer satisfaction at a profit.
 Marketing may be narrowly defined as a process by which goods and services are exchanged
and the values determined in terms of money prices.

 Marketing is a social and managerial process by which individuals and

groups obtain what they need and want through creating and exchanging
products and value with others
 Marketing is the management process for identifying, anticipating and
satisfying customer requirements profitably.
 Marketing is the social process by which individuals and organizations
obtain what they need and want through creating and exchanging value with
others.
 Marketing is the process by which companies create value for customers and
build strong customer relationships in order to capture value from customers
in return.
Importance of Marketing
1. Marketing plays a vital role in success of any organization.
2. Marketing helps an organization to achieve its core objectives.
3. Marketing is essential for the growth and survival of any organization.
4. Marketing raises the standard of living of a community.
5. Marketing guarantees better deals and services for the consumers.
6. Marketing eliminates resource wastage.
7. Marketing supports an organization in identifying the innovations to be adopted.
8. Marketing enables an organization to face competition in a better equipped manner.
9. Marketing helps in creation of demand for organizations products/services.
10. Marketing helps in achievement of maximum efficiency and productivity.
11. Marketing helps in economic growth of the country.
Benefits of Marketing
Marketing is beneficial to the organization as well as the society.
I. Benefits of marketing to the organization
a. Marketing helps an organization to earn profits
b. Marketing supports an organization by offering an opportunity to earn returns for the efforts
made in production of a good or service.
c. Marketing helps a producer in deciding how much, when, at what price and how a product
is to be produced.

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 d. Marketing provides up to date information to organization to help in creating of new
products or offering of new services, matching the changing needs of audience.

II. Benefits of marketing to the society

a. Marketing supports in improvement of standard of living.
b. Marketing support employment generation.
c. Marketing can prevent consumers from paying high prices.

CORE CONCEPTS
Marketing is the process of delivering value to everybody who is affected by a transaction.
A core concept is one which has a very clear cut, definite, widely acceptable, relevant, and
verifiable to understand the very process of marketing that directs the flow of goods and services
from producers to consumers.
A. Needs, Wants and demands
B. Marketing Offers
C. Value and Satisfaction
D. Exchange, transactions and relationships
E. Markets
F. Marketers are Prospects.
A. Needs, Wants and Demands
Need
Need is a state of felt deprivation of some basic requirement or satisfaction.
Need is a desire or wish that is physiological, psychological, security, esteem and
actualization.
 Needs are the natural default requirements of every human being.
 Human needs are unending
 Different types of needs with humans could be
 Physical needs: food, clothing and shelter etc.
 Safety needs: protection against physical harm or economic downstream.
 Social needs: belongingness, friendship and love
 Ego needs: self-esteem and status recognition
 Self-development needs: seeking knowledge and escalating creativity.
 A need is the difference between an actual and ideal state of a consumer with respect to some
sought satisfaction.
Wants
A want is the desire for products or services that are not necessary, but which consumers
wish for.
A want simply represents a desire for a specific product that a person is interested to use to
satisfy a need
 Wants are a step ahead of needs and represents something which may not be vital to the
survival of a human being.
 Wants of an individual are not permanent and keeps on regularly changing.
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 Marketers play an active role in creation of wants and influences wants by offering various
products.
 Wants with humans are unlimited but resources are limited.
 Customers want high value and satisfaction for money they are going on spend.
 A marketer can influence human wants by providing a variety of need-satisfying
products/services.
 Customer wants are shaped by cultural background and individual’s personality.

Demand
Demand is a situation where the person is willing to buy a product and has the ability to pay
for it.
 If somebody can afford a desired service or product, then, he/she is transforming his/her wants
into demands.
 When a person wants something and also carries the ability to buy it, then these wants are
converted to demands.
 Demand is want for a specific product.
 Demand is backed by ability and willingness to buy.
 Wants backed by money and willingness to use that money to meet the need become
demand.

B. Marketing Offers
‘Marketing offer’ is the offer that marketing organisation or marketer makes as per the
requirements of a consumer.
 This market offer stands for a product that satisfies the need of a consumer in terms of quality,
quantity, time, price, regularity, plane and so on.
 Each company has market offer consisting of a product or service, or product-line or service
line where customer is to choose from product line.
 Product lines make company’s product portfolio that whole company has in its basket to offer
to a consumer or class of consumers.
 The market offer has to meet the-consumer expectations a real value for money maximum
benefits at reasonably low price.

C. Consumer Value and Satisfaction

Value
Value as seen from the angle of customer, is the capacity of a product or service from which
consumer derives a certain level of satisfaction.
 A value is judged by the level of satisfaction. Thus, if satisfaction level is low, it means that
product is of low value to the consumer and vice versa.
Satisfaction
Satisfaction is a state of mind and cannot be measured as it cannot be quantified.
 Satisfaction is measured as per the fulfilment of consumers’ wishes, expectations, need or want
or demand.\

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D. Exchange, Transactions and Relationships
Exchange:
An act of giving one thing and receiving another (especially of the same kind) in return.
 Producers and manufactures are making available all sorts of goods needed by the society
giving weightage to quality, price, place, time, regularity and so on. Unless, these are
exchanged for money or money’s worth, there is no meaning. If exchange does not take place,
there will be inventory pile up badly affecting the whole mechanism of production and
distribution as it is not matched to consumption.
Transaction
Transaction is the deal that takes place between the parties of the exchange namely buyer and
the seller.
 Seller is ready with goods to part with and buyer ready with the money to pay for. These
dealings or transactions may be cash or credit.
Relationships
Relationships are the bonding and lasting business association based on mutual trust between
the marketing organisation and the customers particularly long-term.
 Once the customer understands the marketer that he has keen interest in him in all contexts, he
builds the goodwill for the company; tells his friends and relatives as a result of which
customers increase. In case a customer is dissatisfied, like a rotten mango, he makes other
goods mangoes also to rot. That is why relationship marketing has become a specialised aspect
of modern marketing which believes in building long-term partnership with, customers for
longer lasting loyalty.

E. Markets
Market is a place or an area where buyers meet with sellers or the two come into contact, to finalize
a deal.
 It is a mechanism that facilitates price fixation easily and quickly for the mutual benefit of
buyers and sellers, Physical presence of goods and people at a point is not market.
 Market’ is the starting point because marketing follows it. That is goods flow from the sellers to
the buyers and money or money’s worth follows from buyer to reach sellers to complete the
exchange.

MARKETING PHILOSOPHY
There are five marketing concepts. A company should choose the right one according to their and their
customers’ needs. Five orientations - philosophical concepts to the marketplace have guided and
continue to guide organizational activities:
 
1. Production Concept
2. Product Concept
3. Selling Concept
4. Marketing Concept
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5. Societal Marketing Concept

Production Concept
 Production concept holds that consumers will prefer products that are widely available
and inexpensive.  
 Managers focusing on this concept concentrate on achieving high production efficiency, low
costs, and mass distribution.  
 They assume that consumers are primarily interested in product availability and low prices.   

Product Concept
 Product concept holds that consumers will favor those products that offer the most
quality, performance, or innovative features.  
 Managers focusing on this concept concentrate on making superior products and improving
them over time.
 They assume that buyers admire well-made products and can appraise quality and performance 

Selling Concept
 Selling concept holds that consumers and businesses, if left alone, will ordinarily not buy
enough of the selling company’s products.  
 The organization must, therefore, undertake an aggressive selling and promotion effort.  
 This concept assumes that the company has a whole battery of effective selling and promotional
tools to stimulate more buying.
 Most firms practice the selling concept when they have overcapacity.  
 Their aim is to sell what they make rather than make what the market wants.

Marketing Concept
 Marketing concept holds that the key to achieving its organizational goals consists of the
company being more effective than competitors in creating, delivering, and
communicating customer value to its selected target customers.
 The marketing concept rests on four pillars:  target market, customer needs, integrated
marketing and profitability.

 Societal Marketing Concept

 Societal marketing concept holds that the organization’s task is to determine the needs,
wants, and interests of target markets and to deliver the desired satisfactions more
effectively and efficiently than competitors in a way that preserves or enhances the
consumer’s and the society’s well-being.

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