1. Marketing Management

2. The scope of Marketing
 What is Marketing?
1. “…meeting needs profitably!”
2. “Marketing is an organizational function and a set
of processes for creating, communicating and
delivering value to customers and managing
customer relationships in ways that benefits
organization and its stake holders.”
3. “Marketing is a societal process by which
individuals and groups obtain what they need and
want through creating offering and freely
exchanging products and services of value with
others.”
4. “Marketing deals with identifying and meeting
human and social needs”

3. The scope of Marketing
 Exchange and transaction
 A person can obtain a product in one
of four ways
• Self-produce
• Use force
• Beg
• Exchange

4. The scope of Marketing
 Exchange and transactions
 Exchange: The process of obtaining a desired product
from someone by offering something in return.
 Transaction: A trade of values between two or more
parties. When an agreement is reached we say
transaction has happened.
 For exchange potential five conditions must be
satisfied
1. There are at least two parties
2. Each party has something that might be of value to the other
party
3. Each party is capable of communication and delivery
4. Each party is free to accept or reject the exchange offer
5. Each party believes it is appropriate or desirable to deal with
the other party

5. The scope of Marketing
 A transaction involves
• At least two things of value
• Agreed upon conditions
• A time of agreement
• A place of agreement
A legal system supports and enforces
compliance

6. Transfer
 In transfer A gives X to B but does
not receive any thing tangible in
return
• Gifts, subsidies, charity
• Transfer expects something like
gratitude, changed behaviour, Thank-
you notes, invitations, a business firm
wants a purchase, a politician wants
vote,

7. What each party expects
 Mahindra and Mahindra sales a tracter
• Farmer wants:
 High quality equipment
 A fair price
 Timely delivery
 Good financial terms
 Reliable parts and service
• Mahindra and Mahindra wants
 Good price for the tracter
 On-time payment
 Positive word of mouth

8. The scope of Marketing
What is Marketed?
2. Goods Cars, Trucks, Televisions, Machine Tools,
3. Services Machines, Industrial rental, barbers, beauticians,
Airlines, Hotels, Car chemicals, watches,
4. Events cosmetics …….
maintenance and repair, accountants, lawyers,
Trades shows, Artistic performances,
5. Experiences doctors, consultants, service providers ……
Sporting events (Olympics, World Cup),
Amusement park, water park, Multiplexes
6. Persons
Celebrity marketing, Stars selling
7. Places themselves through agents, PR agencies
State ads like tourist or business destinations
8. Properties etc.
Real Estate or financial property like stocks
9. Organisations and bonds Corporate, Universities …..
Companies,
10. Information News channels, Encyclopedias ….
11. Ideas Awareness about AIDS, Family planning,
Discouraging smoking ….

9. The scope of Marketing
Who Markets?
A marketer is someone who seeks response from another party called
prospect,
Eight demand states:
5. Negative Demand
6. Nonexistent Demand
7. Latent Demand
8. Declining Demand
9. Irregular Demand
10. Full Demand
11. Overfull Demand
12. Unwholesome Demand

10. Markets
 Collection of buyers and sellers who
transact over a particular product or
product class (e.g. the housing
market or grain market)
 Sellers: Constituting industry
Market
 Buyers: Constituting markets

11. Markets
Resources
Resources
Resource
Money Markets Money
Taxes, Services
Goods Money
Services
Money Taxes
Manufacturer Government Consumer
Markets Markets Markets
Taxes, Services
Goods
Services Taxes,
Money Goods
Money
Money
Intermediary
Goods & Services
Goods & Services Markets

12. Key customer markets
 Consumer markets
 Business markets
 Global markets
 Non-profit and Govt Markets
Communication
Goods/ Services
Market
Industry
(collection of buyers)
(Collection of sellers)
Money
Information

13. Marketplaces, Marketspaces and Metamarkets
•Marketplace: is physical
as you shop a store
•Marketspace: is digital
as you shop on Internet
•Metamarket: is a cluster of complementory
productsand services that are closely related in the
minds of consumers but are spread across a diverse
set of Industries
Automobile metamarket:
Automobile Manufactures Insurance companies Auto magazines
New car Dealers Mechanics Classified Auto ads in
Used car Dealers Spare part dealers newspapers
Internet sites on Auto
Financing Companies Service shops

14. The scope of Marketing
How business and Marketing are
changing?
Changing Technology
Globalization
Deregulations
Privatization
Customer empowerment
Customization
Heighten competition
Industry convergence
Retail transformation
Disintermediation

15. Company orientation/ Philosophies
•The Production Concept High production efficiency, Low cost and mass distribution
•The Product Concept Total focus on product and no focus on other needs
•The Selling concept Intention is to sell more and more
•The Marketing Concept No HUNTING but GARDENING,
Understanding EXPRESSED needs Reactive Market Orientation)
Understanding LATENT needs (Proactive Market Orientation)
And TOTAL Market Orientation
•The Holistic Marketing Concept
Relationship Marketing
Integrated Marketing
Internal Marketing
Social Responsibility Marketing

16. Marketing
Company orientation
Senior Other Communications Products & Services Channels
Department Management Departments
Internal Integrated
Marketing Marketing
Holistic
Marketing
Socially
Relationship
Responsible
Marketing
Marketing
Partners
Customers
Ethics Community
Channel
Environment Legal

17. Relationship Marketing
 Has a aim of building mutually satisfying long term
relationships with key parties- Customers, Suppliers,
Distributors and Other marketing partners- in order to earn
and retain their business.
 Marketing must not only do ‘customer relationship
management’ (CRM) but also ‘partner relationship
management’ (PRM)
 Key constituents are
• Customers
• Employees
• Marketing partners (channels, suppliers, distributors,
dealers, agencies)
• Members of financial community (shareholders,
investors, analysts)
 Ultimate outcome is a Marketing Network

18. Integrated Marketing
Marketing Mix
Marketing Mix
Products Place
Product variety Channels
Quality Coverage
Design Assortments
Features Locations
Brand name Inventory
Packaging Transport
Target Market
Sizes
Services
Warranties Promotion
Price
Returns Sales promotion
List price
Discounts Advertising
Allowances Sales force
Payment period Public relations
Credit terms Direct Marketing

19. Integrated Marketing
Marketing Mix
Four P’s Four C’s
Product Customer solution
Price Customer cost
Place Convenience
Promotion Communication

20. Internal Marketing
Marketing must be embraced by the other departments
Social Responsibility Marketing
Incorporates social responsibility and understands broader
concerns and the ethical, environmental, legal and social
context.

21. Fundamental Marketing Concepts:
Core concepts:
• Needs, wants and Demands
• Target Markets, Positioning and Segmentation
(STP) Marketing Environment:
• Offerings and Brands 1.2. Task market into segments
Divide Environment
Marketing Planning needs
1. Stated
2. Profile distinct groups using
• Value and satisfaction Company
Supplydemographic, psychographic
channel 2. Real needs
describes a longer channel
Analysing Marketing opportunities
1. Suppliers from channels
Communication
Competition target perceivedactual
Value reflects3. Unstated needs
Selecting includesdifferences
• Marketing channels and behavioral allathe tangible
the market
Distributors channels
A brand is an offering from Known source
and2. Distribution offerings costs to
3. DecideRawbenefits strategies
potential4. materialand and
Delight to
intangiblerival
Designingsegment with greatest
marketing needs
• Supply chain Dealers channels to
3. Service
Components seen
customers. Value can be mightas a
substitutes that a buyerprogrammes
Developing 5. Secret needs
opportunitymarketing
Target Customers
• Competition 4.8. BroadFinal products
combinationconsider market and
For chosen Quality, Service
of target
Managing marketing efforts
Environment
Supply chain offering
develop represents Value delivery
Price
• Marketing Environment Demographic
system
Economic
• Marketing planning
Physical
Technological
Political-legal
Social-cultural

22. Factors Influencing company Marketing Strategy
Demographic/ Technological/
economic physical
environment environment
Marketing
intermediaries
Mk
s
sy
tg sys
fo
in
pl
an
g
kt
ni
M Product
ng
Target
Price
Place
customers Publics
Suppliers
s
sy
n
ta g
Mk Promotion
tio
en o r
tg
em tg
c
s y o nt
pl Mk
s ro
l
im
&
Competitions
Political/ Social/
Legal Cultural
environment environment

23. Future of Marketing
 From Marketing does the marketing to everyone does the
Marketing
 From organizing by product units to organising by customer
segments
 From making everything to buying more goods and
services from outside
 From using many suppliers to working with fewer suppliers
in a ‘partnership’
 From relying on old market positions to uncovering new
ones
 From emphasizing tangible assets to emphasizing
intangible assets
 From building brands through advertising to building
brands through performance and integrated
communications

24. Future of Marketing
 From attracting customers through stores and salespeople
to making products available online
 From selling to everything to trying to be the best firm
serving well defined target markets
 From focusing on profitable transactions to focusing on
customer lifetime value
 From a focus on gaining market share to a focus on
building customer share
 From being local to being ‘glocal’- both local and local
 From focusing on the financial scorecard to focusing on the
marketing scorecard
 From focusing on shareholders to focusing on stakeholders