MARKETING MAN

M.Com (P
(PAPER - CC.201)

MODULE – I

LECTURE - 1

By
SKP
 UNIT 1

INTRODUCTION TO
MARKETING
HAT IS MARKETIN
MARKET

MARKETING

MARKETING MANAGEMENT
 MARKET
In Economics however, the term “Market” does not refer to a
particular place as such but it refers to a market for a commodity
or commodities. It refers to an arrangement whereby buyers and
sellers come in close contact with each other directly or indirectly
to sell and buy goods.
Further, it follows that for the existence of a market, buyers and
sellers need not personally meet each other at a particular place.
They may contact each other by any means such as a telephone
or telex. Thus, the term “Market” is used in economics in a typical
and specialized sense. It does not refer only to a fixed location.
It refers to the whole area of operation of demand and supply.
Further, it refers to the conditions and commercial relationships
facilitating transactions between buyers and sellers. Therefore, a
market signifies any arrangement in which the sale and purchase
of goods take place.
 MARKET
A market can be called the 'available market' - that of all the
people in the area. Within the available market, there is the
'market minimum'- or the market size, which will buy goods
without any marketing effort. This is the lowest sale that a
company could get without any action on its part. In today's
world, this level is sinking ever lower.

There is also the 'market potential', which is the maximum market

size that will buy goods when subjected to the greatest marketing
action that a company can do. Beyond this market potential, the
costs outweigh the gains. The market potential is therefore the
upper limit for a marketplace and sales.

MAY OR MAY NOT BE A

MARKET PHYSICAL PLACE
RATHER THE RELATIONSHIP
FORMS THE MARKET
 MARKETING

Dr. Philip Kotler

ience and art of exploring, creating, and

ing value to satisfy the needs of a target
t at a profit.  Marketing identifies
lled needs and desires. It defines,
res and quantifies the size of the identified
t and the profit potential. It pinpoints
segments the company is capable of
We can start with a very relevant time
tested definition of marketing given by

best and it designs and promotes the

riate products and services.”
 attract new customer by
g superior value, and to keep
customers by delivering
on.
The Goal of Mar
rketing, more than any other busine
n, deals with customers.
ating customer value and satisfaction are
ry heart of modern marketing thinking a
e.
e people believe that only large busine
zations operating in highly develop
KEY NO
mies use marketing, but sound marketing
l to the success of every organization
er large or small, for profit or non – prof
tic or global.
 people think of marketing only as selling and advertising.
g and advertising are only the tip of the marketing ice-berg.
eting is one of three key core functions that are central to
ions.
eters act as the customers’ voice within the firm and marketers are
le for many more decisions than just advertising or sales:
yse industries to identify emerging trends.
rmine which national and international markets to enter
Marketing- key
duct research to understand consumer behavior.
gn integrated marketing mixes – products, prices, channel
ution, and promotion programs.
rketing is a social and managerial process by which individuals and
tain what they need and want through creating and exchanging
and value with others.
 explain marketing definition,
ine the following important ter
, w a n t s , a n d d e m a n d s

c t s a n d s e r v i c e s

, s a t i s f a c t i o n a n d q u a l i t y

n g e , t r a n s a c t i o n s , a n d r e l a t i o n s h i p s

t s
TEST I
 :
ost basic concept underlying marketing is that of human needs.
n needs are states of felt deprivation.
n have many complex needs:
ical needs for food, clothing, warmth, and safety
l needs or belonging and affection
idual needs for knowledge and self – expression
:
are the form taken by human needs as they are shaped by culture
ersonality.
Needs, Wants, an
e have almost unlimited wants but limited resources.
want to choose products that provide the most value and satisfaction for t

nds:
backed by buying power, wants become demands.
mers view products as bundles of benefits and choose products that
est bundle for their money.
duct:
thing that can be offered to a market to satisfy
r want.
concept of product is not limited to physi
– anything capable of satisfying a need can
product.
vices: Products and Ser
addition to tangible goods, products also inclu
s, which are activities or benefits offered for s
e essentially intangible and do not result in t
hip of anything.
s:
mer value is the difference between the values the customer gains fr
d using a product and the costs of obtaining the products.
mers often do not judge product value and costs accurately or objectively.
n perceived value.
action:
mer satisfaction depends on a product’s perceived performance in delive
ive to a buyer’s expectation.
product’s performance falls short of the customer’s expectations, the buye
. Values, Satisfaction
y:
mer satisfaction is closely linked to quality.
ty has a direct impact on product performance.
ty can be defined as “freedom from defects”.
programs designed to constantly improve the quality of products, services,
processes.
 ange :
act of obtaining a desired object from someone b
something in return
saction :
ade between two parties that involves at least tw
of value, agreed – upon conditions a time of
Exchange, Trans
ent, and a place of agreement.
tionship marketing :Relations
process of creating, maintaining, and enhancing
value – laden relationships with customers and
takeholders
 ood marketing make
company look smart
reat marketing makes
customer feel smart.
A new dimension of the concept of Marketing
he set of all actual and potential buyers of

Market
Communication

Products / Services
Industry Market (a
(a collection collection of
of sellers) buyers)
Money
ct or service

Information

A simple marketing system

 Main actors and forces in a modern marketing system

Competitors

Marketing Consumer
Suppliers intermediaries Market/End user
market
Company
(marketer)
1
9
 e analysis, planning, implementation,
ontrol of programs designed to creat
and maintain beneficial exchanges
arget buyers for the purpose of
ving organizational
Marketing
objectives. Man
mand Management : The organization has
level of demand for its products. At any point
There may be no demand, adequate dema
r demand, or too much demand, and marketi
ement must find ways to deal with these differ
d states.
lding Profitable Customer
Marketing Management
RelationshipsI
designing strategies to attract new customers a
transactions with them, companies now are strivi
in current customers and build lasting custo
ships.
 role that marketing plays within a company varie
ng to the overall strategy and philosophy of each

re are five alternative concepts under which

ations conduct their marketing activities:
duction concept
duct concept MARKETING MANAGEMEN
ling concept
rketing concept
ietal marketing concepts
The philosophy that consumers
r products that are available and high
able and that management shou
fore focus on improving production a
ution efficiency.
Production Conce
The philosophy that consumers
r products that offer the most qualit
rmance, and innovative features.

Product Concept
 e idea that consumers will not buy
h of the organization’s products
s the organization undertakes a large
selling and promotion effort.
Selling Concept
 e marketing management philosophy
olds that achieving organizational
depends on determining the needs
ants of target markets and delivering
esired satisfactions more effectively
Marketing Concep
fficiently than competitors do.
  
The selling and Marketing Concepts Contrasted

Starting
Focus Means Ends
point
Selling
Factory Existing and
Profits through
products sales volume
promoting

The selling concept

Profits through
Market Customer Integrated customer
needs marketing
satisfaction

The marketing concept

 wants.
The idea that the organization should deter
needs, wants, and interests of target markets a

puts Human welfare on top

desired satisfactions more effectively and efficie
Societal Marketing
The Societal Marketing Concept

before profits and satisfying the

competitors in a way that maintains or improve
consumer’s and society’s well – being.
 Societal Marketing Concept

The Societal Marketing Concept puts Human welfare

on top before profits and satisfying the wants.

Societal Marketing emphasizes on social responsibilities and

suggests that to sustain long-term success, the company
should develop a marketing strategy to provide value to the
customers to maintain and improve both the customers and
society’s well being better than the competitors.
Societal marketing concept holds that a company
should make good marketing decisions by
considering consumer’s wants, the company’s
requirements, and society’s long-term interests.
 Societal Marketing Concept

Societal Marketing creates a favorable image for the company

increases sales. It is not the same as the terms of social marketing
and social media marketing. It is a term closely related to CSR and
sustainable development.
It emphasizes social responsibilities and suggests that to sustain.
It calls for sustainable marketing, socially and environmentally
responsible marketing that meets the present needs of consumers and
businesses while also preserving or enhancing the ability of future
generations to meet their needs.
The global warming panic button is pushed and a revelation is
required in the way we use our resources. So companies are slowly
either fully or partially trying to implement the societal marketing
concept.

3
0
Objectives of Societal Marketing Concept

1. To maintain a long-term relationship with customers.

2. To create a better image in the society for the company
than it’s competitors.
3. To carry out its social responsibilities.
4. Developing community awareness towards its brands.
5. To carry out its social responsibilities.
6. To increase the consumer base and market share.
 Three Considerations Underlyin
Consumer and Societal orientation of Marketing

Marketing
Society
(Human welfare)

Societal
marketing
concept

Consumers Company
(Want satisfaction) (Profits)
OWTH OF NON-PROFIT MARKETING
E INFORMANTION TECHNOLOGY BOOM
PID GLOBALIZATION
E CHANGING WORLD ECONOMY
E CALL FOR MARKETING CHA
MORE ETHICS AND SOCIAL
NSIBILITY INTO THE NEW C
 The past decade taught business fir
here a humbling lesson. Domes
nies learned that they can no longer igno
markets and competitors. Successful fir
ture industries learned that they cann
ok emerging markets, technologies, a
THE NEW
ement approaches. MARKETING
Companies of every sL
d that they cannot remain inwardly focuse
g the needs of customers and th
nment.