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MARKETING MANAGEMENT
Dr. Prafulla Agnihotri,
Professor, Marketing Group,
IIM Calcutta
Office: NTB E 107; Ext. 529
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Session 1
Evolution of Marketing Concept
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MK 101- Session 1 3
MAIN POINTS
1. Stages in evolution of marketing concept.
2. Difference between selling and marketingconcept.
3. Marketing management - definition
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MK 101- Session 1 4
Three Stages of Marketing Evolution
Production
orientation
Product
orientation
Some industries and organizations remain at the product-orientation stage.
Sales
orientation
Other industries and organizations have progressed only to the sales-orientation
stage.
Production
orientation
Productionorientation
Salesorientation
Marketingorientation
Many industries and organizations have progressed to the marketing-orientation
stage.
?
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MK 101- Session 1 5
Production Orientation Focus:Sell what its easyto produce
Marketing Perspectives
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MK 101- Session 1 6
Sales OrientationFocus: Push products to
beat competition
Production OrientationFocus: Sell what its easy
to produce
Marketing Perspectives
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MK 101- Session 1 7
Marketing Department
Orientation
Focus:
Sales OrientationFocus: Push products to
beat competition
Production Orientation Focus: Sell what its easy
to produce
Coordinate all
customer contacts
Marketing Perspectives
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MK 101- Session 1 8
Marketing Company
Orientation
Focus :
Marketing Department
Orientation
Focus:
Sales-orientationFocus: Push products to
beat competition
Production-orientationFocus: Sell what its easy
to produce
Coordinate all
customer contacts
Long-run customer
satisfaction
Marketing Perspectives
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MK 101- Session 1 9
Profit
CustomerSatisfaction
Total CompanyEffort
TheMarketingConcept
The Marketing Concept
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The Societal Marketing Concept
MK 101- Session 1 10
Consumers
(Want satisfaction)
Company
(Profits)
Society(Human Welfare)
Societal
Marketing
Concept
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What is Marketing?
Marketing begins with potential customer needs
It is more thanjust persuading customers
It focuses onfacilitating exchangesby offering abenefit(s)to customers need(s)
It aims at managingprofitable customerrelationships.
MK 101- Session 1 11
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In short,
Marketing is so basic that it cannot be considered a
separate function. It is the whole business seen from thepoint of view of its final results, that is, from the
CUSTOMERSpoint of view- Peter Drucker
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MARKETING CONCEPT
CustomerOrientation
Organisations
Performance objectives
Coordinated
marketing
activities
+
+
+
Customer
satisfaction
Organisational
success
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Difference Between Marketing andSelling Concepts
Selling
Emphasis is on the product
Company first makes the productand then figures out how to sell it.
Management is sales-volume-oriented.
Planning is short-run-oriented, interms of todays products and
markets. Stresses needs of seller.
Aims at selling more volumes.
Marketing
Emphasis is oncustomers wants.
Companyfirst determines customerswants and then figures out how to make
and deliver a product to satisfy thosewants.
Management isprofit-oriented.
Planning islong-run-oriented, in terms
of new products, tomorrows markets,and future growth.
Stresseswants of buyers.
Buildsprofitable relationships.
MK 101- Session 1 13
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How Should a Business be Defined?
Company Product-OrientedAnswer
Market-OrientedAnswer
Kodak We make cameras
and films
We help preserve
beautiful memories
Revelon We make cosmetics ?
Voltas AC We make ACs ?
Xerox We makephotocopying machines
?
MK 101- Session 1 14
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A Need and a Benefit
MK 101- Session 1 15
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MK 101- Session 1 16
Marketing Defined
Marketing is the process by which companies createvaluefor customers and build strong (and profitable)customer relationshipsin order to capture value fromcustomers in return.
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MK 101- Session 1 17
The Goal :Satisfaction ?no no
Customer DELIGHT !
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How does it happen?
Customer
Acquisition
Total Company
Effort to
Satisfy Customers
MK 101- Session 1 18
Superior
Customer Value
Profitable
Relationship
With Customer
Customer
Satisfaction
Delight
Customer
Retention
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MK 101- Session 1 19
The Customer Satisfaction / Loyalty
Relationship
Zone of Defection
Zone of Indifference
Zone of Affection
Loyalty100
051 2 3 4
20
40
60
80
SatisfactionTerrorist
Apostle
Near Apostle
V.D.S D.S --------- S V.S
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The Marketing ManagementProcess
MK 101- Session 1 20
Analyzing
marketing
opportunities
Researching and
selecting target
markets
Designing
marketing
strategies
Planning marketing
programs
Organizing,
implementing, and
controlling
marketing effort
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Marketing Offers-Products, Services and Experiences
MK 101- Session 1 21
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Marketing Offers - Products
MK 101- Session 1 22
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Marketing Offers - Services
MK 101- Session 1 23
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Marketing Offers - Experiences
MK 101- Session 1 24
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Marketing in Non-ProfitOrganisations
MK 101- Session 1 25
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MK 101- Session 1 26
Thank You