Marketing Management.

MBS First Semester.

Chapter 1: Introduction.

Syllabus:

Definition of marketing and core marketing concept.

Company orientation toward market place.

Customer value, satisfaction and creating long term loyalty relationship.

Concept of marketing management.

Marketing management process.

Definition of marketing and core marketing
Concept and definition of marketing:

Marketing is the process of exploring, creating, and delivering value to

meet the needs of a target market in terms of goods and services;
potentially including selection of a target audience.

Marketing refers to activities a company undertakes to promote the

buying or selling of a product or service. Marketing includes advertising,
selling, and delivering products to consumers or other businesses. Some
marketing is done by affiliates on behalf of a company.

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. AMA (2017).

According to American Marketing Association, “Marketing is the

performance of business activities that direct the flow of goods and
services from producer to consumer or user”.

According to Philip Kotler, “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 other”.

Marketing is a business activity that focuses on providing value and

benefits to customers not only by selling products/ services. It also uses
different means to communicate, distribute and determine relevant
pricing strategies to customers and other stakeholders like employees,
suppliers, partners, shareholders, distributors, etc., with products /
services, ideas, values and benefits whenever and
wherever they desire. This customer-oriented process that involves
interaction with multiple stakeholders to create awareness and boost
business revenues is called marketing management.

Characteristics of marketing.

Marketing is the process of identifying, anticipating, and satisfying

customer needs and wants through the creation, promotion, and
distribution of products and services.

Here are some of the key characteristics of marketing:

a. Customer-focused: Marketing is all about meeting the needs and

wants of customers. It starts with understanding the customer's needs
and preferences and tailoring products and services to meet those
needs.

b. Strategic: Marketing is a strategic function that involves analyzing

market trends, identifying target markets, and developing plans to
reach and engage with those markets.

c. Creative: Marketing requires creativity in designing promotional

campaigns and developing new products and services that meet the
changing needs of customers.

d. Data-driven: Marketing relies heavily on data to inform decisions and

measure results. This includes analyzing market research, customer
feedback, and sales data to continually improve marketing strategies.

e. Integrated: Marketing involves coordination across different areas of

the organization, including product development, sales, and customer
service. It requires collaboration and communication to ensure a
consistent brand message is communicated to customers.
f. Dynamic: Marketing is constantly evolving as consumer preferences
and market trends change. Marketers need to be flexible and adaptable
to keep up with these changes and stay ahead of the competition.

g. Profit-oriented: Marketing is ultimately about generating revenue and

driving business growth. Successful marketing campaigns should lead to
increased sales and profits for the organization.

Core marketing concept.

here's how each of the points relate to the core marketing concept:

a. Need, wants and demand: The core marketing concept emphasizes

understanding the needs and wants of customers and creating products
and services that meet those needs. This requires an understanding of
consumer demand and the ability to create offerings that customers are
willing to pay for.

b. Target market, positioning and segmentation: The core marketing

concept emphasizes the importance of targeting specific customer
segments and positioning the organization's offerings in a way that
resonates with those customers. This requires an understanding of
customer needs and preferences, as well as the ability to differentiate
the organization's offerings from those of competitors.

c. Offerings and brands: The core marketing concept emphasizes

creating offerings that provide value to customers and differentiate the
organization from competitors. This requires a focus on product design,
quality, and branding, as well as an understanding of customer needs
and preferences.
d. Value and satisfaction: The core marketing concept emphasizes
creating value for customers by providing high-quality offerings that
meet their needs and preferences. This requires a focus on customer
satisfaction, as well as an understanding of customer needs and
preferences.

e. Exchange and transaction: The core marketing concept emphasizes

the importance of exchange and transactions in marketing. This involves
creating offerings that customers are willing to exchange money or
other resources for, as well as providing a positive transaction
experience that encourages customer loyalty and repeat business.

f. Marketing channel: The core marketing concept emphasizes the

importance of delivering offerings to customers through effective
marketing channels. This involves selecting the appropriate channels to
reach the target market and optimizing the distribution process to
ensure that offerings are available where and when customers want
them.

g. Supply chain: The core marketing concept emphasizes the

importance of managing the supply chain to ensure that offerings are
produced and delivered efficiently and effectively. This involves
managing relationships with suppliers and other partners to optimize
the production and distribution process.

h. Competition: The core marketing concept emphasizes the

importance of understanding the competitive landscape and
differentiating the organization's offerings from those of competitors.
This requires a focus on product design, quality, and branding, as well as
an understanding of customer needs and preferences.
i. Market, marketer, and marketing environment: The core marketing
concept emphasizes the importance of understanding the market, the
marketer, and the marketing environment in which the organization
operates. This requires an understanding of consumer behavior, market
trends, and the competitive landscape, as well as an ability to adapt to
changes in the marketing environment.

j. Marketing mix: The core marketing concept emphasizes the

importance of creating a marketing mix that includes product, price,
promotion, and place. This involves selecting the right combination of
elements to meet customer needs and preferences, and creating a
cohesive marketing strategy that integrates all elements of the
marketing mix.

k. Marketing planning: The core marketing concept emphasizes the

importance of planning and executing marketing strategies that are
customer-focused, integrated, and profitable. This requires an
understanding of customer needs and preferences, market trends, and
the competitive landscape, as well as the ability to execute marketing
strategies that meet the organization's goals and objectives.
Company orientation toward marketplace.
Company orientation toward the marketplace refers to the
management orientation concept that are also called marketing
concept. They are the guideline principles of business operation and
organization. The marketing concept are the study of the philosophy of
the marketing and system of thought. Manufacturers, producers,
marketers and service organizations follow certain kinds of concept to
conduct their marketing operations. The concept guide their marketing
effort and activities. Marketing concepts are also called as business
concepts, business philosophies for practical marketing. The major
management orientation concepts are as follows:

a. The production concept.

b. The product concept.

c. The selling concept.

d. The modern marketing concept or customer concept.

e. The societal marketing concept.

f. The holistic marketing concept.

The production concept.
This concept is the oldest concepts in business. It 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. This orientation makes sense in developing countries, where
consumers are more interested in obtaining the product than in its
features.
The product concept.
This orientation 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. However, these
managers are sometimes caught up in a love affair with their product
and do not realize what the market needs. Management might commit
the “better-mousetrap” fallacy, believing that a better mousetrap will
lead people to beat a path to its door.
The selling concept.

This is another common business orientation. It 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 consumers typically show buying inertia or
resistance and must be coaxed into buying. It also
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.
The marketing concepts.
This is a business philosophy that challenges the above
three business orientations. Its central tenets crystallized
in the 1950s. It holds that the key to achieving its
organizational goals (goals of the selling company)
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:
a. Target market.
b. Customer orientation.
c. Integrated marketing.
d. Profitability.
The societal marketing concept.
This 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 (this is the original Marketing Concept).
Additionally, it holds that this all must be done in a way that
preserves or enhances the consumer’s and the society’s well-
being. This orientation arose as some questioned whether the
Marketing Concept is an appropriate philosophy in an age of
environmental deterioration, resource shortages, explosive
population growth, world hunger and poverty, and neglected
social services. Are companies that do an excellent job of
satisfying consumer wants necessarily acting in the best long-
run interests of consumers and society?
Holistic marketing concept.
According to the holistic marketing concept, every aspect of the
business comes under one single entity. Every activity is being done to
achieve a common goal. In this type of marketing, it is expected that
each department and resource work to achieve a single goal. The end
result for any business is to sell its products. Businesses have realized
that they can take lead ahead of their competitors by adopting a holistic
marketing approach. Unlike traditional marketing, it ensures that
synergy is created among departments within the organization. Once
each resource is being put to use to achieve a single goal, the results are
often better than the expectations. When an organization adopts this
approach, they start working on marketing strategy considering
everyone in the workflow. This includes stakeholders, customers,
employees, vendors, suppliers, etc. The holistic marketing concept
encourages becoming inclusive as it prevents unnecessary conflicts that
may prevent achieving the goal.
Components of holistic marketing concept.

Relationship marketing.
It is a marketing strategy that aims at building long term relationships
with customers. It focuses on developing brand loyalty among
customers by offering them satisfactory products and services.
Customer satisfaction is one of the most important factors for
successful relationship marketing. Businesses can achieve customer
satisfaction through:
a. Retention initiatives
b. Personalized services
c. Loyalty benefits
d. Valuable products
e. After-sales services
Brief Description
a. Retention initiatives: Retention initiatives are efforts to
keep customers coming back to the organization by providing
excellent customer service and personalized experiences.
Relationship marketing focuses on building long-term
relationships with customers, and retention initiatives are an
important part of this effort.
b. Personalized services: Personalized services are a way to
show customers that the organization values their individual
needs and preferences. Relationship marketing emphasizes the
importance of building strong, personal connections with
customers, and personalized services help to create a more
meaningful relationship.
c. Loyalty benefits: Loyalty benefits are rewards or perks that
are offered to customers who continue to do business with the
organization over time. Relationship marketing focuses on
building strong, long-term relationships with customers, and
loyalty benefits help to incentivize customers to stay loyal to the
organization.
d. Valuable products: Valuable products are offerings that
provide real benefits to customers and help to solve their
problems or meet their needs. Relationship marketing
emphasizes the importance of providing value to customers and
building trust through consistently delivering high-quality
products and services.
d. After-sales services: After-sales services are the services
provided to customers after they have made a purchase, such
as customer support, warranties, and repairs. Relationship
marketing focuses on building long-term relationships with
customers, and after-sales services help to build customer
loyalty and increase the likelihood that customers will continue
to do business with the organization in the future.

Integrated marketing.
Integrated marketing aims to deliver the same message to
customers through every marketing channel. This is an
important marketing strategy since customers must have a
single yet very strong idea about what the business does.
Multiple messages may confuse the customers about the
brand’s services. That is why integrated marketing is important.
Either through digital marketing or print media, customers
should paint the same idea about the brand image. Integrated
marketing work toward presenting a unified marketing front.
These marketing campaigns are quite effective due to the
following reasons:
a. Wider audience reach due to the use of different channels of
promotion.
b. Long-lasting impression and trust among customers due to
consistent message delivery.
c. Lesser investment on marketing campaigns since companies
can use the same approach for different platforms.
Internal marketing.
The aim of internal marketing is to increase employee
engagement by treating them as internal customers. The
human resource department executes these internal
marketing programs since they educate employees about
the company’s objectives. In such programs, the HR
department does the following:
a. Educating employees about their responsibilities and
expectations towards meeting company goals.
b. Ensuring that employees have knowledge about the
company’s products and services.
c. Reinforcing the idea that acquiring and retaining
customers is the end goal.
d. Informing employees about opportunities related to
professional development, appraisals and promotions.
Social responsibility marketing.
This is the component of holistic marketing that considers
the long-term interest of the business, its customers and
society. This is a holistic approach in the true sense. The
company focuses on providing services that satisfy
customers without causing any harm to society as a
whole. This is a part of corporate social
responsibility(CSR) and sustainable development. Ethical
marketing strategies are the main focus of this holistic
marketing concept. Following are the benefits of this
marketing approach:
a. Saving the environment by creating environmental-
friendly products.
b. Contributing to the responsibility of building a better
society.
c. Serving better and safe products to consumers while
ensuring their satisfaction.
Performance marketing.
As the name suggests, performance marketing is a
campaign in which marketers are only when the end
result is achieved. This may include getting leads, sales,
bookings and even downloads. This prevents
unnecessary expenditure on campaigns that otherwise
might not work. Unlike affiliate marketing, this marketing
process aims at improving the company’s performance.
Customer satisfaction.
“Satisfaction is a person’s feeling of pleasure or
disappointment resulting from comparing a product’s
perceived performance in relation to his/her
expectation.” Philip Kotler.
Method to access customer satisfaction:
a. Complaint and suggestion system.
b. Customer satisfaction surveys.
c. Ghost shopping.
d. Lost customer analysis.
Creating long term loyalty relationship.
Loyalty is willingness of the buyer to purchase from the
seller without an extensive evaluation of alternatives.
Repeated sales are often the result of loyalty. Loyalty
exist when a customer, because of past experience is
sufficiently satisfied with particular brand or retailer.
Loyalty is a devotion and faithfulness to a nation, cause,
philosophy, country, group, or person. Philosophers
disagree on what can be an object of loyalty, as some
argue that loyalty is strictly interpersonal and only
another human being can be the object of
loyalty. Loyalty are of two types.
a. Behavioral loyalty.
b. Attitudinal loyalty.
Building loyalty:
- Communicate your values
- Provide exceptional customer service
- Activate loyalists to help spread the word
- Show your appreciation with a loyalty program
- Connect in a deeper way
- Ask for feedback
- Continually improve
Customer relationship management.
Customer relationship management (CRM) is a
technology for managing all your company's relationships
and interactions with customers and potential customers.
The goal is simple: Improve business relationships to
grow your business.
When people talk about CRM, they are usually referring
to a CRM system, a tool that helps with contact
management, sales management, agent productivity, and
more. CRM tools can now be used to manage customer
relationships across the entire customer lifecycle,
spanning marketing, sales, digital commerce, and
customer service interactions. Customer relation
management involves three general areas of business.
They are as follows.
a. Marketing information system.
b. Sales force management system.
c. Customer service system.
Customer relationship development process.
1. Suspects.
2. Prospects and disqualified prospect.
3. First time customer.
4. Repeat customer.
5. Client.
6. Member.
7. Advocate.
8. Partners.
Marketing management.
Marketing management is the organizational discipline which
focuses on the practical application of marketing orientation,
techniques and methods inside enterprises and organizations
and on the management of a firm's marketing resources and
activities.
Marketing management is the process of planning and
executing the conception, pricing, promotion, and distribution
of ideas, goods, and services to create exchanges that satisfy
individual and organizational goals. Explaining the definition,
you can understand that marketing management is a process
that involves analysis, planning, implementation, and control of
goods, services, and ideas. The marketing management process
is based on the idea of
exchange.
What is the goal of such a process? The simple answer is to
provide satisfaction to everyone involved in the said process,
including company, customers, suppliers, and channel
members.
Elements of market management.
Marketing planning.
Setting objectives that includes standards of performance and
the strategies and tactics to implement the objectives.
Marketing controlling.
Measuring and comparing actual performance and marketing
corrective actions.
Marketing implementation.
Carrying out the plan through organizing, staffing, directing and
coordinating the organization’s human and other resources.
Marketing management process.
The marketing management process is a series of strategic
management actions by marketing leaders that help team
members optimize a marketing campaign for efficiency. The
marketing management process is not a one-and-done
instruction manual that you create and never touch again.
Following is the brief summary of marketing management
process.
a. Marketing objectives.
b. Planning.
c. Organization.
d. Coordination.
e. Direction.
f. Control.
g. Staffing.
h. Analysis and evaluation.