MARKETING

MANAGEMENT I

1. INTRODUCTION
Dr. Shanthi Venkatesh,
 What is Marketing?
AMERICAN MARKETING ASSOCIATION

“Marketing is an organizational function,

a set of processes for creating,
communicating and delivering value to
customers and for managing customer
relationships in ways that benefit the
organisation and its stake holders”
 Other versions
• General definitions:
– Marketing deals with identifying and meeting human
and social needs
– Marketing is an art and science of choosing target
markets and getting, keeping and growing customers
through creating, delivering and communicating
superior customer value
• Social definition:
– 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.
 Core of Marketing
• Exchange
– Two parties
– Goods and services of value
– Capable of communicating & delivering
– Free to accept or reject an offer
– Belief or trust
– Transaction (exchange or trade of values)
 Types of Marketing Entities
• Goods
• Services
• Events
• Experiences
• People
• Places
• Properties
• Organizations
• Information
• Ideas
 Evolution of Marketing
• Production Concept: Efficient Production, Low
Costs, Cheap Products. Consumers are very
interested in the product and buy what is
available.
• Product Concept: Consumers buy products that
offers them greater value and high satisfaction.
New products and innovations, Technology
goods.
• Selling Concept: Selling what is produced
through persuasion. Not understanding the
needs.
• Marketing Concept: Analyzing and
understanding consumer needs, producing and
selling.
 Fundamentals of Marketing
• Need
– Basic requirements, necessary for a living,
widens in perspective as a person moves up
in social status
• Want
– Need directed towards specific objects, desire
to buy / use something, moving towards
satisfaction of a need
• Demand
– Want backed by ability to pay
 Markets and Demand
• Markets
– Consumer markets, Business Markets, Global
Markets and Non-profit and Governmental
markets
• Demand
– Negative Demand, Non-existent demand,
Latent demand, Declining demand, Irregular
demand, Full demand, Overfull demand and
Unwholesome demand
 Other concepts
• Value: Reflects the ratio between the perceived benefits and
costs to the customers.
• Satisfaction: Reflects the comparative judgments resulting from
product performance.
• Offerings: A value proposition or set of benefits that the
company promises to delivery through the basic product and its
accomplices.
• Brand: An offering from a known source. Associations or links
established to a particular product.
• Segmenting: Dividing the Market into distinct segments
• Targeting: Concentrating on that market which promises
greater opportunity
• Positioning: A market offering developed for each market has a
distinct position. Communicated based on the value
propositions.
 Marketing in 21 Century st

Holistic Marketing
– Relationship Marketing – Building mutually satisfying
relationship with stakeholders
– Integrated Marketing – Integrating all the activities for
increased benefits.
– Internal Marketing – Participation and contribution
from the entire organisation
– Social Responsibility Marketing – Understanding
moral, ethical and environmental concerns and
addressing them.
Shifts in Marketing Management
• Everyone does marketing
• Organizing by customer segments
• Buying goods and services from outside
• Fewer suppliers in a partnership
• Uncovering newer markets
• Technology based marketing
• Well-defined target markets
• Focusing on building customer share
• Being GLOCAL
• Focusing on Marketing scorecard
• Focusing on stakeholders