Introduction to marketing management

April 11, 2023 MARKETING MANAGEMENT 1

MARKETING MANAGEMENT

An Introduction


What’s Marketing?

• Only selling and advertising?• “Telling and selling”-old sense• “Satisfying customer needs”• If the company understands the consumer

needs, develops products and services, prices, distributes and promote effectively, these products will sell easily.

• The aim of marketing is to make selling unnecessary-Peter F Drucker.


Marketing Defined

• In a broader sense “It’s a social and managerial process by which individuals and organizations obtains what they need and want through creating and exchanging of values with others.” Philip Kotler.

• In a narrow sense, is the process by which companies create value for customers and build strong customer relationships in order to capture value from the customers


Marketing Process

Understand customer needs and

wants

Design customer

driven Marketing strategy

Construct a marketing

programme to deliver value

Build Profitable

relationships

Capture value from

customers to create profit

and customer equity


Customer needs, Wants and demands

• Needs: the most basic concept underlying marketing.

• These are states of felt deprivation• A lack of something in a living organism.• Need for food, shelter, friendship. Cloth, health,

enjoyments, education, travel etc.• No alternative but to satisfy.• They are not created by marketers ,but the basic

human makeup.


>>Customer needs, Wants and demands

• Wants: are different forms, human needs take or appear as they are influenced by culture and individual personality.

• Wants are shaped by one’s society and are described in terms of objects that satisfy needs.

• When backed by buying power, wants will become demands.

• Good companies collects infrn. About customer needs, wants and demands.


>>Customer needs, Wants and demands…

Market Offerings:Customers needs and wants are satisfied through a market offering.These are combinations of products, services, information, experiences that satisfy a need or want.Not limited to physical products alone. Other entities such as persons, places, information, organizations and ideas.


>>Customer needs, Wants and demands

Marketing myopia: Many sellers gives more attention to the specific product they offer, than the benefits and experiences produced by these products.They do not see the underlying need of the product, but focus on the product.


Products and services

• People satisfy their needs and wants with products and services

• A product is anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a need or want. Philip Kotler

• It includes physical objects, services, persons, places, organizations and ideas.


>>Products and services

• ServicesAny activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything.


Value, Satisfaction and Quality

Customer value• Broad array of products• How do they choose among these market offerings• Buys the brand with the highest perceived

customer value.• A customers evaluation of the difference

between all the benefits and all cost of a market offering relative to those of the competing offers.


Customer satisfaction

• It depends on the product’s perceived performance relative to a buyer’s expectations.

• If the products performance fall short of the expectations, the customer is dissatisfied.

• If the performance matches expectations, he will be satisfied.

• If it exceeds expectations, the customer will be delighted.


Marketing occurs when people decide to satisfy needs and wants through exchange relationships.

A market is the set of actual and potential buyers of a product.

Marketing means managing markets to bring about profitable customer relationships.

Marketing management is the art and science of choosing target market and building profitable relationships with them.

MARKET


Concepts of Marketing

A strategy is needed.What weight should be given to the interest of the customers, organization and society?There are five different concepts. Such as Production concept, Product concept, selling concept, marketing concept and societal marketing concept.


The Production Concept

• It is the oldest concept.• As per this concept, consumers will favour

those products that are available and highly affordable.

• Therefore, management should improve production and distribution efficiency.

• Though old, it is useful in certain situations.• Companies following this concept run a major

risk of focusing too narrowly on their own operations and losing sight of others and the real objective of satisfying customer needs.


The Product Concept

• The consumers favour those products that offer the most in quality, performance and innovative features.

• Strategy is to effect continuous product improvements

• Better mouse trap• A better product will not sell unless the

manufacturer designs, packages and prices it attractively and puts in a good distribution channel.


Selling Concept

• The concept is that the consumers will not buy enough of the firm’s products unless the firm undertakes a large scale selling and distribution efforts.

• Such aggressive selling is risky• It creates only sales transactions rather than

building long-term customer relations,• The concept is specifically followed in the case

of unsought goods.


Marketing Concept

• This concept holds that achieving organizational goals depends on knowing the needs and wants of the target customers and delivering the desired satisfaction better than competitors do.

• Here customer and value are the paths to sales and profits.

• Instead of ‘make and sell’, it is ‘sense and respond’ way.• It aims profit through customer satisfaction.• Not hunting but gardening• Not finding the suitable customers but to find the

products suitable for its customers


Societal Marketing Concept

• This concepts holds that a company should not overlook the long run consumer welfare for their short run wants and satisfaction.

• While satisfying the immediate needs, marketer should consider what's best for them in the long run.

• Long run interest of the company and the society must be protected.


Society (Human welfare)

Consumers(Want satisfaction)

Company(Profits)

Societal Marketing


Call back cases

http://www.apple.com/uk/support/ipodnano_replacement/http://www.guardian.co.uk/business/2012/oct/10/toyota-automotive-industryhttp://www.cbc.ca/news/canada/story/2012/10/08/xl-foods-beef-recall.html

http://www.apple.com/uk/support/ipodnano_replacement/

http://www.apple.com/uk/support/ipodnano_replacement/

http://www.guardian.co.uk/business/2012/oct/10/toyota-automotive-industry

http://www.guardian.co.uk/business/2012/oct/10/toyota-automotive-industry

http://www.cbc.ca/news/canada/story/2012/10/08/xl-foods-beef-recall.html

http://www.cbc.ca/news/canada/story/2012/10/08/xl-foods-beef-recall.html


FEATURES OF MODERN MARKETING

Modern marketing is customer oriented.Customer satisfaction is the core.

Emphasis shifted from mere profit maximization to profit through customer satisfaction.

It begins and ends with customersIt precedes and succeeds productionIt is competition orientedIt focus on customer retention.”Once a customer,

always a customer”


>> FEATURES OF MODERN MARKETING

• It is technology based (for survey, analysis, generalization, product formulation, testing, test marketing, feed-backs, advts, after sale services, information dissemination, etc.)

• It is based on segmentation and targeting


Types of Marketing• Marketing• Demarketing-Influencing customers to

reduce demand(electricity/pds/PU’s.)• Remarketing- Finding new uses or users for

an existing product. Most car such as Maruti, Daimler etc use this to market the used cars.

• Over-marketing-An attempt to generate maximum sales even by neglecting quality and efficiency

• Counter-marketing-Killing the demand.


Types of mkting

• Mass-marketing-Mass production, mass distribution and mass promotion of one product for the buyers

• Meta-marketing—E.J.Kelly. Marketing of ideologies, beliefs, and faith…Meta marketing attempts to apply scientific,social,ethical and managerial experience in the field of marketing.

• Direct Marketing• International Marketing


Marketing and SellingSelling Marketing

Emphasis is on product Emphasis os on customer value

Emphasis is on sellers needs Emphasis is on buyers needs

Selling is profit oriented Marketing is customer oriented

Aims sales and Profit maximization Aims customer satisfaction

Selling begins after production It begins even before production

It create only possession utility It creates time, place and possession utility

Narrow in scope Wider in scope


Marketing Mix(Four P’s)

• It is one of the major concept in modern marketing,

• There are controllable and uncontrollable factors that influence the marketing programme.

• It is a set of controllable tactical marketing tools-product, price, place and promotion that the firm blends to produce the response it wants in the target market.


Marketing Mix

• Marketing mix is everything that the firm can do to influence the demand for its products

• Competitors behavior, govt.policy,fashion, trend etc. are uncontrollable.

• It consists of everything that the firm can do to influence the demand for its products

• Product means the goods and services combination the company offers to the target market.

• It is actually a product mix.


Marketing Mix

Target Customers

ProductVarietyQualityDesign

FeaturesBrand Name

PackagingServices

PriceList PriceDiscounts

AllowancesPayment Period

Credit terms

PlaceChannelsCoverage

AssortmentsLocation

InventoryTransportation

Logistics

PromotionAdvertising

Personal sellingSales PromotionPublic relations


Marketing Environment


Marketing EnvironmentThe actors and forces outside the company that affect marketing management’s ability to build and maintain successful relationships with target customers.

• There can be micro and macro environment.• Micro Environment • Actors close to the company that affect its

ability to serve its customers, intermediaries, customer markets, competitors and publics


Marketing Environment• Suppliers • ( Quality, delivery time, credit, warrantees and cost-

Treat suppliers as part of the partners)• Customer Markets

(Five types of customer market.1,Consumer Market 2, Business Market 3,Reseller Market 4,Government market and 5, International market)

• Competitors( satisfy the needs better than our competitors do-there can be some competing strategies)

• Intermediaries ( Wholesalers, retailers, warehouses, transporters,agents,insurers )

• General Public ( favourable reaction from the public; Public relation is certainly an important strategy)


Macro environmentDemographic evnt.( The study of human population, its size,

geographical distribution,density,birth rate,death rate,sex age,etc.)

Economic envt.(State of the conomy,natonal income, pattern of its distribution, business cycle, cost of living, interest rate etc.)

Natural(Physical) envt. (The marketing manager has to look in to the environmental consequences of product, production process ,packaging, residue,etc.)

Technological envt.-Creative destruction, it involves forces which affect new technology, product innovation and new business opportunities.

Political and legal envt.Social and cultural envt.International envt.


SERVICES• Any activity or benefit that one party can offer

to another that is essentially intangible and does not result in the ownership of anything.

• The volume of service has grown dramatically in recent years

• Services now account for nearly 80 per cent of the US economy.

• By 2014, it is estimated , every four out of five jobs will be from services.


SERVICES

• Governments, Not for Profit organisations and Private organisations offer various services.

• Features1.Service Intangibility: cannot be seen, touched,

felt, tasted, smelt or heard before they are bought.- To reduce the quality uncertainty, buyers look for signals of quality.(Place, people, price, equipments, and communications they receive)


SERVICES

2. Perishability3.Inseperability4.Heterogeneity5.Ownership6.Simultaneity7.Quality Measurement8.Nature of Demand

Introduction to marketing management

Business

market marketing

concepts of marketing

marketing programme

marketing myopia

marketing management11

aim of marketing

marketing management3

marketing management8