1.

1 Marketing Definition

Marketing is defined by the American Marketing

Association as "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.
Philip Kotler defines marketing as Satisfying needs and wants
through an exchange process.
The Chartered Institute of Marketing defines marketing
as "the management process responsible for identifying,
anticipating and satisfying customer requirements profitably.

Marketing Management-218BAT09, Unit I, Dr K R Kumar Dept of MBA, Adhiyamaan College of Engg., (Autonomous) Hosur
1.2 Concept of Marketing
Production Concept
The idea of production concept – “Consumers will favor products that are available
and highly affordable”. This concept is one of the oldest Marketing management
orientations that guide sellers.
Product Concept
The product concept holds that the consumers will favor products that offer the most
in quality, performance and innovative features.
Selling Concept
The selling concept holds the idea- “consumers will not buy enough of the firm’s
products unless it undertakes a large-scale selling and promotion effort”.
Marketing Concept
The marketing concept holds- “achieving organizational goals depends on knowing
the needs and wants of target markets and delivering the desired satisfactions better
than competitors do”.
Societal marketing concept questions whether the pure marketing concept overlooks
possible conflicts between consumer short-run wants and consumer long-run
welfare.

Marketing Management-218BAT09, Unit I, Dr K R Kumar Dept of MBA, Adhiyamaan College of Engg., (Autonomous) Hosur
Marketing Management-218BAT09, Unit I, Dr K R Kumar Dept of MBA, Adhiyamaan College of Engg., (Autonomous) Hosur
 The Selling Concept
undertakes a large-scale selling and
promotion effort
The Selling Concept is suitable with
unsought goods—those that buyers do
not normally think of buying, such as
insurance or blood donations.
The Marketing Concept
undertakes activities such as; market
research,
The Marketing Concept is suitable for almost
any type of product and market.

Focus of the selling concept starts at the Focus of the marketing concept starts at
production level. understanding the market.
Any company following selling concept Companies that are following the marketing
undertakes a high-risk concept requires to bare less risk and
uncertainty.
The Selling Concept assumes – Instead of making an assumption, The
“customers who are coaxed into buying marketing concept finds out what really the
the product will like it. Or, if they don’t consumer requires and acts accordingly to
like it, they will possibly forget their them.
disappointment and buy it again later.”

The Selling Concept makes poor Marketing concept works on facts gathered
assumptions. by its “market and customer first” approach.

Marketing Management-218BAT09, Unit I, Dr K R Kumar Dept of MBA, Adhiyamaan College of Engg., (Autonomous) Hosur
1.3 The Marketing Environment

The marketing environment includes the actors

and forces outside marketing that affect marketing
management’s ability to build and maintain
successful relationships with customers.

Marketing Management-218BAT09, Unit I, Dr K R Kumar Dept of MBA, Adhiyamaan College of Engg., (Autonomous) Hosur
Marketing Environment

The microenvironment consists of the actors close to the company

that affect its ability to serve its customers, the company, suppliers,
marketing intermediaries, customer markets, competitors, and
publics.

Marketing Management-218BAT09, Unit I, Dr K R Kumar Dept of MBA, Adhiyamaan College of Engg., (Autonomous) Hosur
 The macro environment consists of the larger societal forces that affect the
microenvironment.
• Demographic
• Economic
• Natural
• Technological
• Political
• Cultural

Marketing Management-218BAT09, Unit I, Dr K R Kumar Dept of MBA, Adhiyamaan College of Engg., (Autonomous) Hosur
1.4 Marketing Interfaces with other functional areas
Research and development: Research and development is the engine within an organization which
generates new ideas, innovations and creative new products and services.
Production/operations/logistics: As with research and development, the operations, production and
logistics functions within business need to work in cooperation with the marketing department.
Operations include many other activities such as warehousing, packaging and distribution. To an
extent, operations also includes production and manufacturing, as well as logistics.
Human resources: It is the function within your organization which overlooks recruitment and
selection, training, and the professional development of employees. Other related functional
responsibilities include well-being, employee motivation, health and safety, performance
management, and of course the function holds knowledge regarding the legal aspects of human
resources.
Finance : There is an adequate budget to meet the needs for research, promotion and distribution.
The finance department has a whole organisation brief to ensure that all the business operates within
its financial capabilities. They will want all departments to work within their allocated budgets.
IT (websites, intranets and extranets) : To define it you need to consider elements such as
computer software, information systems, computer hardware (such as the screen you are looking at),
and programming languages.
Customer service provision: Customer service provision is very much integrated into marketing. As
with earlier lessons on what is marketing?, the exchange process, customer satisfaction and the
marketing concept, customer service takes the needs of the customer as the central driver. So our
customer service function revolves around a series of activities which are designed to facilitate the
exchange process by making sure that customers are satisfied.
Marketing Management-218BAT09, Unit I, Dr K R Kumar Dept of MBA, Adhiyamaan College of Engg., (Autonomous) Hosur
 1.5 Definition: The Marketing Information System refers to the
systematic collection, analysis, interpretation, storage and dissemination
of the market information, from both the internal and external sources, to
the marketers on a regular, continuous basis.

Marketing Management-218BAT09, Unit I, Dr K R Kumar Dept of MBA, Adhiyamaan College of Engg., (Autonomous) Hosur
Internal Records: The Company can collect information through
its internal records comprising of sales data, customer database,
product database, financial data, operations data, etc.
Marketing Intelligence System: The marketing intelligence
system provides the data about the happenings in the market, i.e.
data related to the marketing environment which is external to the
organization. It includes the information about the changing market
trends, competitor’s pricing strategy, change in the customer’s
tastes and preferences, new products launched in the market,
promotion strategy of the competitor, etc.

Marketing Management-218BAT09, Unit I, Dr K R Kumar Dept of MBA, Adhiyamaan College of Engg., (Autonomous) Hosur
Marketing Research: The Marketing Research is the systematic collection,
organization, analysis and interpretation of the primary or the secondary data to find
out the solutions to the marketing problems. Several Companies conduct marketing
research to analyze the marketing environment comprising of changes in the
customer’s tastes and preferences, competitor’s strategies, the scope of new product
launch, etc. by applying several statistical tools. In order to conduct the market
research, the data is to be collected that can be either primary data (the first-hand data)
or the secondary data (second-hand data, available in books, magazines, research
reports, journals, etc.)The secondary data are publicly available, but the primary data
is to be collected by the researcher through certain methods such as questionnaires,
personal interviews, surveys, seminars, etc. A marketing research contributes a lot in
the marketing information system as it provides the factual data that has been tested
several times by the researchers.
Marketing Decision Support System: It includes several software programs that can
be used by the marketers to analyze the data, collected so far, to take better marketing
decisions. With the use of computers, the marking managers can save the huge data in
a tabular form and can apply statistical programs to analyze the data and make the
decisions in line with the findings. Thus, the marketers need to keep a check on the
marketing environment, i.e. both the internal (within the organization) and the external
(outside the organization, so that marketing policies, procedures, strategies can be
designed accordingly.
Marketing Management-218BAT09, Unit I, Dr K R Kumar Dept of MBA, Adhiyamaan College of Engg., (Autonomous) Hosur
 1.6 The market research process is a systematic methodology
for informing business decisions.

Marketing Management-218BAT09, Unit I, Dr K R Kumar Dept of MBA, Adhiyamaan College of Engg., (Autonomous) Hosur