Marketing Management 1

Session 1
9/8/2021

Dr Archana Sharma
Faculty Brief Profile
Educational Qualification:
•BBA & MBA Bhopal University
•PhD-Indian Institute of Technology
Delhi

Professional Affiliation:
•IKEA India Private Limited
•Indian Institute of Management
Bangalore
Dr. Archana Sharma
•Standard Chartered Bank
2
Learning Objectives

• Define marketing and outline the steps in the marketing process.

• Understand the scope of Marketing
• Explain the importance of understanding the marketplace and customers and
identify the five core marketplace concepts.
• What are different types of Companies orientation towards the Marketplace
• What Is Marketing Myopia
What is Marketing?
 Define: What is Marketing

Marketing the activity, set of

institutions, and processes for
creating, capturing, communicating,
delivering, and exchanging offerings
that have value for customers, clients,
partners, and society at large.
American Marketing Association
Marketing is identifying and satisfying Human needs

The aim of marketing is to know the customer so well that the product or
service fits him and sells itself- Peter Drucker
Marketing Helps Create Value Marketing is a process
by which companies
create value for
Production customers
and build strong
customer relationships
in order to capture
value from customers
1.

Sales in return.

2.

3.

Marketing

4.

5.

Value based marketing

Marketing is about relationship building with Key stakeholders

Customers Society

Employees Collaborators

Competition Government

Marketing is a process by which companies create value for customers

and build strong customer relationships in order to capture value from customers in return.
Marketing Vs Selling?
Marketing is a Science and Art
Marketing management is the art and science of choosing target markets
and building profitable relationships with them.
• What customers will we serve (target market)?
• How can we best serve these customers (value proposition)?
Marketing as a Function
Marketing is a Process
Five Core Marketing Concepts
Understanding the Marketplace and
Customer Needs
Who Markets it?
A marketer is someone who seeks a response – attention, purchase, a vote , from another
party who is called prospect.
Market Offerings

• Goods - Cars, Electronic Appliances

• Services- Bankers, Doctors
• Events- Trade shows, World Cup
• Experiences- Amusement Parks, Theme Restaurants
• Persons-Amitabh Bachchan, Sachin Tendulkar
• Places- Kerala, Goa
• Organization- University, Museums
• Information- Impact of smoking on health
• Ideas -Promoting Awareness aboutAIDS
Understanding the Marketplace and Customer Needs

Needs are states of felt deprivation of some basic satisfaction.

Wants are the form human needs take as they are shaped by culture and
individual personality
(specific satisfier these deeper needs )
Demands are human wants that are backed by buying power
Maslow Hierarchy Theory
Types of Needs
Stated Needs
(Sleek Laptop)

Real Needs
(High Performance )

Unstated Needs
(Good Service )

Delight Needs
(Mouse and Mouse Pad)

Secret Needs
(Smart and Savvy
10
Customers)
Demand

Desire

Demand

Ability To
Pay

11
Eight Demand States
NEGATIVE DEMAND
(Insurance)

NON -EXISTENCE DEMAND

(Home Automation)

LATENT DEMAND
(Smart Phones, Automobiles )

DECLINING DEMAND
(Old Mechanical Phone)

IRREGULAR DEMAND
(Umbrella)

FULL DEMAND
(Medicines)

OVERFULL DEMAND
(Gold) 1
2

UNWHLOESOME
DEMAND
(Cigarette)
What is a Market?
A market is set of actual and potential buyers.
Consumers market when they:
• search for products
• interact with companies to obtain information
• make purchases
Markets Relationship

Retailer
(Sells PCs & Consumer B
monitors)

B2C
B2B C2C
Manufacturer
Consumer A
(Makes monitors)
Key Customer Markets
Consumer Market Business Market

Global Market Non Profit and Government Market

6
Marketing Entails an Exchange
Company Orientation

Societal Holistic
Production Product Selling Marketing
Marketing Marketing
concept concept concept concept
concept Concept

Societal Marketing Concepts focuses on marketing Strategy should deliver to customers in a way that maintains
and improves the well being of society and consumer.
Production Concept

• Consumers will prefer products that are widely available and inexpensive.
• Managers of production-oriented business concentrate on achieving high
production , low cost and mass distribution

• Eg Lenovo in China
• Eg: Henry Ford
Product Concept
• Consumer will favor those products that offer the most quality, performance,
and innovative features.
• “Better Moustrap Fallacy”
Selling concept

• Consumers if left alone will ordinarily not buy enough of the organizations
product and therefore they should take aggressive selling and promotion
effort.

• Eg: Insurance
Marketing Concept
• Emerged in 1950’s
• Custom centric Marketing, is to find right product for your customers.
• The organization goal is to create , deliver and communicate superior
value to the customers.
Eg: Dell Computers
Designing a Customer Value-Driven Marketing
Strategy

Societal marketing:
The company’s marketing
decisions should consider
consumers’ wants, the
company’s requirements,
consumers’ long-run
interests, and society’s
long-run interests.
Eg: Body Shop
Holistic Marketing Dimensions
 Marketing Task
• Develop Marketing Plans
• Capture Marketing Insights
• Connect with customers
• Create Value for the Customers
• Communicate Value to the
customers
• Deliver value to the customer
• Create long term profit
• Customer satisfaction and
Loyalty
• Build strong Brands
•
Marketing Myopia-Theodore Levitt(1960)

Short sightedness
Business will do better if the concentrate on meeting customers needs rather on selling products.