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1st chapter
1. 1st Chapter Marketing Management
Introduction to Marketing
By
Asst Prof. Venkatesh.N
Koshys Institute of Management Studies
2. Meaning of Marketing
Meaning The word market is derived form the Latin
word “Marcatus” meaning goods or trade or a place
where business is conducted. The term marketing is
defined as a „business activity planned at satisfying to a
reasonable extent, consumer or customer needs and
wants, generally through an exchange process‟.
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3. Definition of Marketing
• Marketing has been defined in various ways –
the definition that serves our purpose best is as
follows; Marketing is a social &
managerial process by which individuals
& groups obtain what they need & want
through
creating,
offering,
&
exchanging products of value with
others.
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4. Marketing Management
The American Marketing Association (AMA) –
Marketing management is the process of planning and
executing the conception, pricing, promotion, &
distribution of ideas, goods, & services to create
exchanges that satisfy individual and organizational
goals.
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5. The Goal of Marketing is:
To attract new customer by promising superior
value, and to keep current customers by
delivering satisfaction.
• To satisfy the customer
• To increase profits for the growth of the
business:-the marketing department is the only
department which generates revenue for the
business.
• To increase the quality of life of people.
• To create good image.
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6. Contd…
• Marketing, more than any other business
function, deals with customers.
• To generate customer base for the business:the marketing manager must attract more
and more customers to buy the firms
products and services this will also result in
to increased sales.
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7. Marketing Defined
• Many people think of marketing only as
selling and advertising.
• Selling and advertising are only the tip of the
marketing ice-berg.
• Marketing is one of three key core functions
that are central to all organizations.
• Marketers act as the customers‟ voice within
the firm and marketers are responsible for
many more decisions than just advertising or
sales:
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8. Contd…
To explain marketing definition, we examine
the following important terms :
– Needs, wants, and demands
– Products and services
– Value, satisfaction and quality
– Exchange, transactions, and relationships
– Markets
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10. Needs, Wants, and Demands
Needs:
– The most basic concept underlying marketing is
that of human needs.
– Human needs are states of felt deficiency.
– Human have many complex needs:
– Physical needs for food, clothing, and safety
– Social needs or belonging and affection
– Individual needs for knowledge and self –
expression
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11. Contd…
Wants:
• Want are the form taken by human needs as they are
shaped by culture and individual personality.
• People have almost unlimited wants but limited
resources.
• They want to choose products that provide the most
value and satisfaction for their money.
Demands:
• When backed by buying power, wants become
demands.
• Consumers view products as bundles of benefits and
choose products that give them the best bundle for their
money
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12. Products and Services
Product:
• Anything that can be offered to a market to satisfy a
need or want.
• The concept of anything capable of satisfying a need
can be called a product.
Services:
• product is not limited to physical objects –In addition
to tangible goods, products also include services,
which are activities or benefits offered for sale that
are essentially intangible and do not result in the
ownership of anything.
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13. Values, Satisfaction, and Quality
Values:
• Customer value is the difference between the values
the customer gains from owning and using a product
and the costs of obtaining the products.
• Customers frequently do not judge product value and
costs accurately or objectively. They act on perceived
value.
Satisfaction:
• Customer satisfaction depends on a product‟s
perceived performance in delivering value relative to
a buyer‟s expectation.
• If the product‟s performance falls short of the
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customer‟s expectations, the buyer is dissatisfied. 13
Venkatesh.N
14. Contd….
Quality:
• Customer satisfaction is closely linked to
quality.
• Quality has a direct impact on product
performance.
• Quality can be defined as “freedom from
defects”.
• TQM programs designed to constantly
improve the quality of products, services, and
marketing processes.
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15. Exchange, Transactions, and
Relationships
Exchange :
• The act of obtaining a desired(most wanted)
object from someone by offering something in
return
Transaction :
• A trade between two parties that involves at
least two things of value, agreed – upon
conditions a time of agreement, and a place of
agreement.
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16. Contd…
Relationship marketing :
• The process of creating, maintaining, and
enhancing strong, value – loaded relationships
with customers and other stakeholders
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17. Markets
The set of all actual and potential buyers of a product
or service
Communication
Industry
(a collection of
sellers)
Products / Services
Money
Market (a
collection of
buyers)
Information
A simple marketing system
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18. Push and Pull Strategies
Push
Sales force and trade
promotion
Pull
Advertising and
promotion
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19. Scope of Marketing
• It creates employment opportunities because sales
and marketing is a people oriented activity.
• It improves the standard of leaving of the people
• It satisfies the needs of the peoples by providing the
goods to the customers
• It improves the transport and communication
• It establishes a better relationship B/W the buyer
and the seller.
• It makes goods available to all geographic location
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20. Contd…
• It increases revenue to the govt.
• It enables to increase the profit.
• It helps the top management to manage
innovations and changes
• Maximize sales enables the firm to go for large
scale production.
• Mass production reduces the cost per unit of
the product.
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21. Marketing Concept
The marketing management philosophy that
holds that achieving organizational goals
depends on determining the needs and wants
of target markets and delivering the desired
satisfactions more effectively and efficiently
than competitors do.
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23. Concept of Marketing Management
Management
Orientations
Production
Concept
Selling
Concept
Product
Concept
Marketing
Concept
Societal
Marketing
Concept
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24. Traditional
Production Concept:-This concept holds that
consumers will favor products that are available and
highly affordable and that management should focus
on improving production and distribution efficiency.
This is one of the oldest concept. It is useful in two
situations when the demand for a product exceeds
the supply, management should look for ways to
increase production and when the product cost is too
high improved productivity is needed to bring down.
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25. Product Concept
This concept holds that consumers will favor
products that offer the most quality,
performance, and innovative features. Thus an
organization should dedicate energy in making
continuous product improvement.
A product will not sell unless the manufacturer
designs packages and prices it attractively. and
place it in convenient place.
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26. Selling Concept
This concept holds that consumers will not buy
enough of the organization‟s products unless the
organization undertakes a large – scale selling and
promotion effort.
Their aim is to sell what they make rather than to
make what the market wants. Such marketing
carries high risks.
It focus on creating sales transaction rather than on
building long-term, relationship with customer.
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27. Societal Marketing Concept
The idea that the organization should determine
the needs, wants, and interests of target
markets and deliver the desired satisfactions
more effectively and efficiently than
competitors in a way that maintains or
improves the consumer‟s and society‟s well –
being.
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28. The selling and Marketing Concepts Contrasted
Starting point Focus
Factory
Means
Ends
Selling
Existing
Profits through sales
and promoting
products
volume
The selling concept
Market
Customer
needs
Integrated
marketing
Profits through customer
satisfaction
The marketing concept
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29. Three Considerations Underlying The Societal Marketing
Society
(Human welfare)
Societal
marketing
concept
Consumers
(Want satisfaction)
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Company
(Profits)
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31. Modern Concept
• The market concept is customer orientation
backed by integrated marketing aimed at
generating customer satisfaction as the key to
satisfy organizational goals.
• The marketing concepts holds that the key to
achieve its organizational goals consists of the
company being more effective than competitors
in creating delivering and communicating
customer value to its chosen target market
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32. Contd….
• The marketing concept has been expressed as
follows.
• Meeting needs profitability
• Find wants and fill them
• Love the customer not the product
• You are the boss
• Partners for profit
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33. Components of modern concepts
• Customer orientation:- in modern concept the
marketer will give first preference to the
customer need and satisfaction according to
his taste and preference the marketer will
change or modify the product and give.
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34. Integrated Marketing
aimed at unifying(merged)
different marketing methods such as mass
marketing, one-to-one marketing, and direct
marketing. Its objective is to complement and
reinforce the market impact of each method, and
to employ the market data generated by these
efforts in product development,
pricing, distribution, customer service, etc
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35. Profitable sales through customers
satisfaction
• The main aim of every business is earning and
maximizing its profits. Manufacturer cannot
ignore the wants and expectations of customers.
• Customer is the supreme and he determines the
products to be produced by the manufacturer.
• Marketing starts with the generating of a product
idea and continues until the customers wants are
completely satisfied.
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36. Customer welfare
Consumer welfare refers to the individual
benefits derived from the consumption of
goods and services. In theory, individual
welfare is defined by an individual's own
assessment of his/her satisfaction, given prices
and income. Exact measurement of consumer
welfare therefore requires information about
individual preferences.
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37. Characteristics of modern marketing
concept
• According to this concept consumer is the king of
the market
• Marketing is the entire process of understanding
and satisfying the needs and wants.
• The main aim of marketing under the concept is
not maximization of profits alone but by
satisfying the consumer needs and wants.
• The concepts creates and delivers the standard of
living to the society.
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38. Functions of marketing
• Merchandising Functions:-the process of the
passing of goods to the customers hands is
called the function of exchange. this process
can be divided into
• Buying
• Assembling
• Selling
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39. Functions of marketing
• Physical distribution functions:-this function
related to the process of transporting the goods
from the place of seller to the place of buyer
and includes two main function.
• Transportation-a good system of
transportation increases the value of goods by
the creation of place of utility
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40. Contd..
• Storage and warehousing :- goods must be
stored for different reasons goods produced
seasonally may be used throughout the year
goods meant for use during the short period
may be produced over the longer period,
manufacturer store raw materials for ready
supply are also stored in the hope of getting a
higher price in future
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41. Facilitating functions
• These functions make the marketing process easy and include.
• Financing
• Risk bearing
• Standardization
• Pricing
• branding
• Advertising
• Salesmanship
• Sales promotion
• Packaging
• Market information
• Marketing researchKoshys Institute of Management Studies by
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• Marketing intelligence
42. Approaches to marketing
• The marketing expert came out with three
fundamental approaches to the study of marketing
namely.
• Commodity approach
• Institutional approach
• Functional approach
• Decision making approach
• System approach
• Social approach
• Holistic approach
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43. Commodity approach (product)
• This approach is studies marketing on commodity
basis.
• This approach is also called as descriptive approach.
• in this method the commodity serve as a focus around
which other aspects of marketing are studied and its
journey from the original producer right up to the final
consumer. In this we can locate the center of production
people engage in buying and selling of the product
mode of transportation and so on.
• Through such an approach we can find out the
difference in marketing product, service and problems.
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44. Institutional Approach
• In this method descriptive and analysis of the
different institutions engaged in marketing are
undertaken. Here we study not the product but
the producer, wholesaler's agents, retailers,
transporters, storing institutions etc. different
institutions serve as separate cells of the
marketing body.
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45. Institutional approach
• This approach splits down the field of
marketing into separate functions. These
specific functions are buying, selling,
transportation, storage, standardization,
grading, financing, risk-taking and marketing
research, etc…. We also concentrate our
attention on the specialized service or
functions or activates performed by marketer
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46. Management approach/decision
making approach
• In this approach the focus of marketing study is on the
decision making process involved in the performance
of marketing functions at the level of the firm.
• the study involves discussions of important concept
like devising alternative strategies, analyzing their
relative importance determining the strengths and
weakness of the company, techniques and methods of
problems solving.
• (in this method the manager is taking decision to
change the functional activities about the market like
planning, executing, co-ordinating & controlling)
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47. Societal approach/legal approach
• Social approach is the study that emphasizes
the fact that marketing is for society and
hence, functions as directed by social norms
set by the society. This method must bring
maximum social well being or welfare.
• That is not only to provide a car, but less
pollutant car, cigarette without smoke,
medicines without side effects, holding high
the social and cultural values and values
adding to the life-style and living
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48. System approach
• Systems approach is an approach that entails
analysis of problems and come up with a blend
of solutions. It is a generally approach that
involves tackling problems in an advanced
disciplined manner keeping priorities in mind.
It is a branch of systems thinking process.
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49. Holistic approach
• Holistic approach refers to the practice of
looking at the health of an individual in a
complete picture rather than isolating parts. It
uses natural treatments to attempt to maintain
balance.
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50. Distinction B/W Marketing and Selling
• Marketing
• Marketing focus on
customer needs
• Customer enjoys supreme
importance
• Integrated approach to
achieve ling term goals
• Converting customer
needs into products
• Profit through customer
satisfaction
• Let the seller beware
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• Selling
• Selling focus on the needs
of the seller.
• Product enjoys supreme
importance.
• Fragmented approaches to
achieve immediate goals
• Converting customer
needs into products.
• Profit through sales
volume
• Let the buyer beware.
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