MARKETING MANAGEMENT

Module I

Marketing – Nature and scope- Marketing as the central function of an organization-Evolution of Marketing- Marketing as Creating, Communicating and Delivering –Value-Value chain – Customer satisfaction as the end of the value chain- Marketing Environment – Internal and External environment- Marketing Research- Marketing Information System.

References

1. Kotler Philip & Keller Kevin, Marketing Management, Pearson Education, India2. Czinkota Micheal. R & Ronkainen IIkka. International Marketing, Cengage Learning.3. Ramaswamy V.S & Namakumari. S Marketing Management – Global Perspective, Indian Context, , MacMillan.4. Kotler Philip, Keller Kevin, Koshy Abraham & Jha Mithileshwar Marketing Management – A South Asian Perspective, Pearson Education.

Marketing

Meeting needs profitably

To deliver a high standard of living

Result in a customer who is ready to buy

• 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

What is marketed?• Goods.• Services.• Events.• Experiences.• Persons.• Places.• Properties.• Organizations.• Information.• Ideas.

Definition of 'Marketing'

• American Marketing Association: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 MANAGEMENT

• Art and science of choosing target markets and getting keeping and growing customer through creating, delivering and communicating superior customers value.

Nature of marketing• Process• Flow of ideas , goods and services• Exchange and transactions• Customer satisfaction• Goal oriented

Importance of marketing• Helps the organization in planning• Establish balance in demand and supply• Helps to establish a communication system between the

producer and the consumer• Ensuring maximum production at minimum cost• Makes goods available to buyers at competitive prices• Improve standard of living• Economic development of the country

Functions of marketing

• Exchange functions• Physical distribution or supply functions• Facilitating functions

Concepts in Marketing

Organisations conduct their marketing activity based on the competing concepts;

1. The Exchange concept

2. The Production concept

3. The Product concept

4. The Selling concept

5. The Marketing concept

6. The Customer concept

7. The Societal marketing concept

8. The Holistic marketing concept

1. The Exchange concept

holds that the exchange of a product between the seller and the buyer is the central idea of marketing.

Exchange covers the distribution aspect and the price mechanism

2. The Production concept Consumers prefer those products that are

widely available and low in cost. concentrate on achieving high production

efficiency and wide distribution coverage. consumer oriented markets

3. The Product concept

holds that consumers favour those products that offer the most quality, performance or innovative features.

focus on superior products and continuously improving them.

Leads to “marketing myopia”- focus on the product rather than on the customer’s need. (Prof. Theodore Lewitt)

4. The Selling (Sales)concept holds that consumers, if left alone, will not

buy enough of the products. aggressive selling and promotional effort.E.g. unsought goods- encyclopedia, insurance Inside-out perspective

Starting point Focus Means EndsProfits through

sales volume

Selling and

promotion

ProductsFactory

5. The Marketing Concept holds that the key to achieve organisational

goals consists in determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors.

customer centered (outside-in perspective) Starting point Focus Means Ends

Profits through custome

r satisfact

ion

Integrated

marketing

Customer

needs

Target market

4 pillars of marketing concept;

1. Target market: define it clearly

2. Customer needs: customer oriented thinking

3. Integrated marketing: Sales force, advertising, customer service, product management, marketing research (Internal and external marketing)

4. Profitability: achieve the organisation goals.

6. The Customer concept Provide separate offers, services and messages

to individual consumers. collect information on each customer’s past

transactions, demographics, psychographics, and media and distribution preferences.

achieve profit through capturing a large share of each customer’s expenditures.

building high customer loyalty and focusing on customer lifetime value.

Profitable growth through

capturing customer

share, loyalty, and

lifetime value

One-to-one marketing integration and value

chain

Customer needs and

values

Individual customer

The Customer Concept

Starting point Focus Means Ends

7. The Societal marketing concept (humanistic or ecological marketing)

holds that the organisation’s task is to determine the needs, wants and interests of target markets and to deliver the satisfactions more effectively and efficiently than competitors in a way that enhances the consumer’s and society’s well being.

focuses on; company profits consumer want satisfaction and Public interest Build social and ethical considerations

ADIDAS- community projectso Avoiding under age employeeso Sports events sponsorshipo Supporting the construction of sports groundso Support for local community sportso Better pay for local workers in UDC’s

Coca Cola’s community programs are;Local water supplyCommunity developments like sports

8. The Holistic marketing concept based on the development of design, and

implementation of marketing programs, processes and activities, that recognizes their breadth and interdependencies.

Four elements are; relationship marketing (Customers, channels, partners) integrated marketing (communications, products and

services, channels) internal marketing social responsibility marketing (ethics, environment,

legal, community)

Holistic marketing

Social responsibility

marketing

Internal marketingIntegrated marketing

Relationship marketing

Evolution of marketing

Stages in the history of marketing• The Trade Era• The Production Orientation Era• The Sales Orientation Era• The Marketing Orientation Era• The Relationship Marketing Era• The Social Marketing Era