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MARKETING MANAGEMENT :SCOPE AND NATURE
MARKETING : CORE CONCEPTS• Marketing is a social and managerial process by which
individuals and groups obtain what they need and want through creating, offering and exchanging products of value with others
(Philip Kotler )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(Kotler Keller)• Demand ?• Services and Ideas ?
MARKETING : CORE CONCEPTS
• Needs : State of deprivation of some basic satisfaction. Not created by society / marketers. Exist in very texture of human biology and condition
• Wants : Desires for specific satisfiers of need. Continuously shaped/reshaped by social forces and institutions..
• Demands : Want for specific products products that are backed by the ability and willingness to buy them. Wants become demands when supported by purchasing power
MARKETING : CORE CONCEPTS
• Needs are few / wants are many• Needs preexist marketers• Marketers along with social influences
influence wants• Marketers influence demand by making the
products appropriate, attractive, affordable, and easily available to target customers
MARKETING : CORE CONCEPTS
• Product : Anything that can satisfy a need or want• Product : also called offering or solution• Product can have three components : physical
goods , services and ideas• Product owning vs. obtaining the service they
render• Marketing myopia• Physical object : means of packaging a service
What is Marketed?Goods
Services
Events & Experiences
Persons
Places & Properties
Organizations
Information
Ideas
MARKETING : CORE CONCEPTS
• Product choice set• Need set• Value :consumer’s estimate of the products’
overall capacity to satisfy needs• Value is the satisfaction of customers’
requirements at the lowest possible cost of acquisition, ownership and use
• Opportunity Cost
Structure of Flows in a Modern Exchange Economy
Demand States
Nonexistent Latent
Declining Irregular
Full UnwholesomeOverfull
Negative
MARKETING : CORE CONCEPTS
• How people can obtain products :1. Self – production 2. Coercion3. Begging4. Exchange : act of obtaining a desired product
from someone by offering something in return
MARKETING : CORE CONCEPTS
• Conditions that must be satisfied for exchange potential to exist :
1. At least two parties2. Each party has something that might be of value to the
other party3. Each party is capable of communication and delivery4. Each party is free to accept or reject the exchange offer5. Each party believes it is appropriate or desirable to
deal with the other party
MARKETING : CORE CONCEPTS
• Exchange is a process rather than an event• Transaction is a trade of values between two or more
parties• Monetary transaction vs. barter transaction• Transfer : One party gives something of value to the
other party but does not receive anything in return• Marketers seek to elicit a behavioral response from the
other party• Negotiation : Process of trying to reach agreeable terms
MARKETING : CORE CONCEPTS
• Market : Consists of all the potential customers sharing a particular need or want who may be willing and able to engage in exchange to satisfy that need or want
• Traditionally : Market is a place here buyers and sellers gather to exchange their goods
• Economists : Collection of buyers and sellers who transact over particular product (class)
• Marketers : Sellers = industry , buyers = market
MARKETING : CORE CONCEPTS
• Market types : Need / Product / Demographic / Geographic /Voter / Labor etc-.
Industry ( Collection of
sellers )
Market ( Collection of
buyers)
Goods / Services
Money
Communication
information
MARKETING : CORE CONCEPTS• Marketing (Management) : Process of planning and
executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals.
• 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
• Marketing Management has the task of influencing the level, timing and composition of demand in a way that will help the organization achieve its objective
MARKETING : CORE CONCEPTS
• Production Concept : The consumers will favor those products that are widely available and low in cost. Managers of production oriented organizations concentrate on achieving high production efficiency and wide distribution.
• This holds true in two situations :1. Demand for a product exceeds supply2. Product’s cost is high and has to be decreased
to expand the market
MARKETING : CORE CONCEPTS
• Product Concept : Customers will favor those products that offer the most quality, performance, or innovative feature. Concentration is on making superior products and improving them all the time.
• Companies are more self obsessed• Customer input is vital• Looking into a mirror vs. looking outside the
window
MARKETING : CORE CONCEPTS• Selling Concept : Holds that the consumers, if left alone, will
not buy enough of the organisation’s products. The organisation must therefore undertake an aggressive selling and promotion effort
• Practice for goods that people do not normally think of buying / overcapacity
• Aim is to sell what they make rather than make what the markets want
• Aim of marketing is to make selling superfluous• Aim of marketing is to know the customer so well that the
product or service fits him and sells itself
MARKETING : CORE CONCEPTS• Marketing Concept :The key to achieve organisational goals
consists of being more effective than competitors in integrating marketing activities towards determining and satisfying the needs and wants of target markets
• 4 pillars of marketing concept : Target Market / Customer Needs / Integrated marketing / profitability
• Selling focuses on the needs of the seller, marketing on the needs of the buyer
• Selling is preoccupied with the seller’s need to convert his product into cash, marketing with the whole idea of satisfying the needs of the customer by means of the product
MARKETING : CORE CONCEPTS
• Customer Needs : Types of Need :1. Stated Needs2. Real Needs3. Unstated Needs4. Delight Needs5. Secret Needs
MARKETING : CORE CONCEPTS• Responsive Marketing : Find a stated need and fulfill it• Creative Marketing : Discovers and produces solutions that
the customer did not as for but to which they respond enthusiastically
• Integrated Marketing : When all the company’s departments work together to satisfy the customer’s interest, the result is integrated marketing
• External marketing : Marketing directed to people outside the company
• Internal marketing : Successful hiring / training and motivating employees who want to serve the customers well
MARKETING : CORE CONCEPTS
• Societal Marketing Concept : The organisation’s task is to determine the needs, wants and interests of target markets and to deliver the desired satisfactions more effectively and efficiently than competitors in a way that preserves or enhances the consumer’s and the society’s well being
• Calls for marketer to build social and ethical considerations into the marketing practices
• Green marketing : Marketing of products that are presumed to be environmentally safe
MARKETING : CORE CONCEPTS• Social marketing : Systematic application of marketing, along
with other concepts and techniques, to achieve specific behavioral goals for a social good.
• Social marketing can be applied to promote merit goods, or to make a society avoid demerit goods and thus to promote society's well being as a whole
• The primary aim of social marketing is "social good", while in "commercial marketing" the aim is primarily "financial”
• Social marketing is being described as having "two parents"—a "social parent" = social sciences and social policy, and a "marketing parent" = commercial and public sector marketing approaches
Functions of CMOs
• Strengthening the brands• Measuring marketing effectiveness• Driving new product development based on
customer needs• Gathering meaningful customer insights• Utilizing new marketing technology
Improving CMO Success
• Make the mission and responsibilities clear• Fit the role to the marketing culture and structure• Ensure the CMO is compatible with the CEO• Remember that show people don’t succeed• Match the personality with the CMO type• Make line managers marketing heroes• Infiltrate the line organization• Require right-brain and left-brain skills
Core Marketing Concepts
• Target markets, positioning, segmentation
• Offerings and brands
• Value and satisfaction
• Marketing channels• Supply chain• Competition• Marketing
environment
New Consumer Capabilities• A substantial increase in buying power• A greater variety of available goods and services• A great amount of information about practically
anything• Greater ease in interacting and placing and
receiving orders• An ability to compare notes on products and
services• An amplified voice to influence public opinion
Holistic Marketing Dimensions
The Four P’s
Performance Marketing
• Financial Accountability• Social Responsibility Marketing
Social Initiatives• Corporate social
marketing• Cause marketing• Corporate philanthropy• Corporate community
involvement• Socially responsible
business practices
Marketing Management Tasks
• Develop market strategies and plans• Capture marketing insights• Connect with customers• Build strong brands• Shape market offerings• Deliver value• Communicate value• Create long-term growth
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