MARKETING MANAGEMENT

Ms. Kiran SharmaK.J.Somaiya Institute of Management Studies and Research

QUESTIONS TO BE ANSWERED….

Importance of marketing Scope of marketing Company orientations towards marketplace Fundamental marketing concepts Changes in Marketing Management

WHAT IS MARKETING?

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.

Marketing Defined: “Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging value with others”

•Marketing is about managing profitable customer relationships•Attracting new customers•Retaining and growing current customers

WHAT IS 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 iceberg

“There will always be need for some selling. But the aim of marketing is to make selling superfluous. The aim of marketing is to know and understand the customer so well that the product or service fits him and sells itself. Ideally, marketing should result in a customer who is ready to buy. All that should be

needed is to make the product or service available.”

Peter Drucker

What is Marketed?

GoodsGoods

ServicesServices

Events & ExperiencesEvents & Experiences

PersonsPersons

Places & PropertiesPlaces & Properties

OrganizationsOrganizations

InformationInformation

IdeasIdeas

DEMAND STATES

Negative Demand – dislike the product, may even pay a price to avoid it

Nonexistent Demand – Unaware or uninterested in the product

Latent Demand – Share a strong need cannot be satisfied by any existing product.

Declining demand – Buy the product less frequently or not at all.

Irregular demand – Purchases vary on a seasonal, weekly, daily or even hourly basis.

Full demand – Buy all products put into the marketplace Overfull demand – larger number of consumers would like

to buy the product than can be satisfied. Unwholesome demand – Attracted to products that have

undesirable social consequences

Structure of Flows in a Modern Exchange Economy

Key Customer Markets

• Consumer markets

• Business markets

• Global markets

• Nonprofit/Government markets

Simple Marketing System

Core Marketing Concepts

Understanding the Marketplace

• Needs, wants, and demands

• Marketing offers: including products, services and experiences

• Value and satisfaction • Exchange, transactions

and relationships• Markets

•Need– State of felt deprivation– Example: Need food

•Wants– The form of needs as

shaped by culture and the individual

– Example: Want a Big Mac

•Demands– Wants which are backed by

buying power

Core Concepts

Understanding the Marketplace

• Needs, wants, and demands

• Marketing offers: including products, services and experiences

• Value and satisfaction • Exchange, transactions

and relationships• Markets

Core Concepts •Marketing offer– Combination of

products, services, information or experiences that satisfy a need or want

– Offer may include services, activities, people, places, information or ideas

Understanding the Marketplace

• Needs, wants, and demands

• Marketing offers: including products, services and experiences

• Value and satisfaction • Exchange, transactions

and relationships• Markets

•Value– Customers form

expectations regarding value

– Marketers must deliver value to consumers

•Satisfaction– A satisfied customer will buy

again and tell others about their good experience

Core Concepts

Value and Satisfaction

•Perceived Value– The customer’s evaluation of the difference

between benefits and costs.– Customers often do not judge values and costs

accurately or objectively.

•Customer Satisfaction– Product’s perceived performance relative to

customer’s expectations.

Understanding the Marketplace

• Needs, wants, and demands

• Marketing offers: including products, services and experiences

• Value and satisfaction • Exchange, transactions

and relationships• Markets

•Exchange– The act of obtaining a

desired object from someone by offering something in return

– One exchange is not the goal, relationships with several exchanges are the goal

– Relationships are built through delivering value and satisfaction

Core Concepts

For an exchange to occur….

• There are at least two parties.

• Each party has something that might be of value to the other party.

• Each party is capable of communication and delivery.

• Each party is free to reject the exchange offer.

• Each party believes it is appropriate or desirable to deal with the other party.

Understanding the Marketplace

• Needs, wants, and demands

• Marketing offers: including products, services and experiences

• Value and satisfaction • Exchange, transactions

and relationships• Markets

•Market– Set of actual and potential

buyers of a product– Marketers seek buyers that

are profitable

Core Concepts

A MARKET

People or

Organizations

People or

Organizations

Moneyto

Spend

Moneyto

Spend

Willingnessto

Spend

Willingnessto

Spend

Needsto

Satisfy

Needsto

Satisfy

MarketMarket

I want it, I need it…..

5 Types of Needs

• Stated needs• Real needs• Unstated needs• Delight needs• Secret needs

The marketplace isn’t what it used to be…

Changing technologyChanging technology

GlobalizationGlobalization

DeregulationDeregulation

PrivatizationPrivatization

CustomizationCustomization

Consumer resistanceConsumer resistance

CompetitionCompetition

NEW CONSUMER CAPABILITIES

Substantial Increase in Buying power Greater variety of available goods and

services Greater amount of information about

practically anything Greater ease in interacting and placing and

receiving orders Ability to compare notes on products and

services A voice to influence peer and public opinions

Company Orientations

Production

Selling Marketing

Product

Production Concept

Product Concept

Selling Concept

Marketing Concept

Marketing Management Philosophies

•Widely available and expensive•High production efficiency•Low cost•Mass distribution

Best quality performanceInnovative featuresNew innovative products from time to time

‘Unsought goods’ – Buyers normally do not buy these products

‘Customer Centered’ – Focus not on finding the right customers for the products but finding the right products for the customers.

HOLISTIC MARKETING CONCEPT

Based on development, design and implementation of marketing programs, processes and activities.

Recognizes that “everything matters”.

Holistic Marketing Dimensions

The Selling and Marketing Concepts Contrasted

Marketing Mix and the Customer

Four Ps• Product• Price• Place• Promotion

Four Cs• Customer solution• Customer cost• Convenience• Communication

The Four P’s

The Four Ps

MarketingMix

Product

Price Promotion

Place

The Four CsThe Four Cs

CustomerSolution

CustomerCost

Communication

Conven-ience

Marketing-Mix Strategy

Marketing Management Tasks

• Developing marketing strategies

• Capturing marketing insights

• Connecting with customers

• Building strong brands

• Shaping market offerings

• Delivering value• Communicating

value• Creating long-term

growth