Marketing Management

A South Asian Perspective

13th edition

Philip Kotler, Kevin Lane Keller,

Abraham Koshy, Mithileshwar Jha
Marketing Management

Chapter 1
Defining Marketing for the 21st Century
 What is Marketing?
‘Meeting needs profitably’

Marketing is an organizational function and a set

of processes for creating, communicating, and

delivering value to customers and for managing
customer relationships in ways that benefit the
organization and its stakeholders.
‘Choosing the right product for your customers’
 Marketing Management
Marketing management is the art and science of

choosing target markets and getting, keeping, and

growing customers through creating, delivering,
and communicating superior customer value.

‘Selling is only the tip of the marketing iceberg’

 What is marketed?
Goods – cars, computers, watches, cosmetics etc.
Services – airline, hotels, car rental, barbers, bankers,
lawyers, repair people etc.
Events – concerts, convocations, olympics, world cup
etc.
Experiences – amusement parks, cinemas, football &
cricket leagues, travel tales etc.
Persons – artists, musicians, high profile
professionals, politicians etc.
Places – cities, states, regions shopping malls etc.
Properties – real estate, financial property (stocks &
bonds) etc.
Organizations – universities, multinational
companies etc.
Information – education, product manuals, X-ray
etc.
Ideas – AIDS, dengue, polio, anti-smoking campaigns
etc.
 Demand States
Negative Nonexistent Latent

Declining Irregular

Full Overfull Unwholesome

TYPES
Negative Demand
Negative demand is a type of demand which is created if the product is
disliked in general. The productmight be beneficial but the customer does
not want it.

Example of negative demand is a) Dental work where people don’t want

problems with their teeth and use preventive measures to avoid the same.

b) Insurance, which people should have but they delay buying an insurance
policy.
TYPES
2) Unwholesome demand

Unwholesome demand is the other side of Negative demand. In negative type

of demands, customer does not want the product even though product might
be necessary for the customer. But in unwholesome demand, the customer
should not desire the product, yet the customer wants the product badly. Best
example of unwholesome demand are cigarettes, alcohol, pirated movies,
guns etc.
3) None existent demands
Certain products face the challenge of no demand. The best example
for the same can be education courses where there is very low demand
or no demand at all. Such cases are very hard to counter.
4) Latent Demand
Latent demand is, as the name suggests, a demand which the customer
realizes later. Thus, while buying the product, he might not desire some 
features. But later on, he might think about those features and buy the
product. The best example of latent demand are normal phones vs smart
phones.
5) Declining demand
Declining demand is when demand for a product is declining. For example,
when CD players were introduced and IPOD came in the market, the
demand for walkman went down. Although there was still a demand for
the product, the demand was a declining demand.
6) Irregular demand
Irregular demand can be demand which is not consistent. The best example of
irregular demand is seasonal products like umbrellas, air conditioners or resorts.
These products sell irregularly and sell more during peak season whereas their
demand is very low during non seasons. The best way to counter irregular demand
is to introduce incentives for the customer to buy the product.
7) Full demand
In an ideal environment, a company should always have full demand. Full demand
means that thedemand is meeting the supply potential of the company. It also
means that the markets are happy with the products of the company and that
people want to buy from the same company. The marketing challenge in this type of
demand is to maintain the same level of interest in the product and the company.
8) Overfull demands
Overfull demands happen when the companies manufacturing capacity is limited
but the demand is more than the supply. This can be observed in the cement
industry occasionally.
A Simple Marketing System
Key Customer Markets
Consumer Markets Global Markets

Business Markets Nonprofit/ Government Markets