Every business unit has an objective of its own. As E. Demock states, “The management is not a matter of pressing a button, pulling a lever, issuing orders, scanning P & L statement, promulgating rules and regulations. Rather it is the power to determine what shall happen to the personalities and happiness of entire people, the power to shape the destiny of a nation and of all the nations which make up the world”. Management is the process consisting of functions of planning, organizing, staffing, directing and controlling the operations to achieve specified objectives. To know more about Welingkar School’s Distance Learning Program and courses offered, visit: http://www.welingkaronline.org/distance-learning/online-mba.html This Slideshare is the sole Property of the Welingkar School of Distance Learning – Reproduction of this material , without prior consent, either wholly or partially will be treated as a violation of copyright.

1. Chapter 1
The Nature Of Marketing
Chapter-1 The Nature of Marketing

2. Learning Objectives
Define the term “marketing”
Describe four marketing management
philosophies
Discuss the differences between sales and
market orientations
Macro and Micro marketing defined
Describe the marketing process
Describe several reasons for studying
marketing
Marketing Management
Chapter-1 The Nature of Marketing

3. Marketing- What’s It all About?
More than Selling and Advertisement
All Those Bicycles
Marketing Management
Chapter-1 The Nature of Marketing

4. Why Marketing?
Products do not sell themselves!
Makes sure that the right goods and services
are produced
Form utility
Task utility
Time utility
Place utility
Marketing Management
Chapter-1 The Nature of Marketing

5. Definition of Marketing
“Marketing is the process of planning and
executing the concept of pricing, promotion,
and distribution of ideas, goods, and services
to create exchanges that satisfy individual
and organizational goals”
Marketing Management
Chapter-1 The Nature of Marketing

6. Concept of Exchange
People give up something in order to receive
something that they would rather have. The
usual medium of exchange is money.
Exchange can also be fostered through
barter or trade of items or services
Marketing Management
Chapter-1 The Nature of Marketing

7. Five conditions for an
exchange
There must be two parties
Each party must have something the other party
values
Each party must be able to communicate with the
other party and deliver the goods or services sought
by the other trading party
Each party must be free to accept or reject the
other’s offer
Each party must want to deal with the other party
Marketing Management
Chapter-1 The Nature of Marketing

8. Marketing Management-
Philosophy
Production
Focus on efficiency of internal operations
Sales
Focus on aggressive techniques for overcoming customer
resistance
Market
Focus on satisfying customer needs and wants
Societal
Focus on enhancing individual and societal well-being
Marketing Management
Chapter-1 The Nature of Marketing

9. Production Orientation
Focuses on internal capabilities of the firm
rather than on the desires and needs of the
marketplace
Most likely to work for firms producing
generic products
E.g. Fast food industry
Marketing Management
Chapter-1 The Nature of Marketing

10. Sales Orientation
Assumes that more goods and services will
be purchased if aggressive sales techniques
are used and that high sales result into profits
E.g. Insurance
The fundamental problem with this approach
is lack of understanding of the needs and
wants of the marketplace
Marketing Management
Chapter-1 The Nature of Marketing

11. Marketing Orientation
Focuses on customer wants and needs
Integrates all the organization’s activities
Achieves long-term goals for the organization
Assumes that sales depends on customer’s
desire to purchase a products
Marketing Management
Chapter-1 The Nature of Marketing

12. Societal Marketing Orientation
Organization exists not only to satisfy
customer wants and needs but also to
preserve individual’s and society’s long-term
best interests
This orientation serves three bodies
The organization itself
Society
customers
Marketing Management
Chapter-1 The Nature of Marketing

13. Marketing’s Role over the time
Era Focus
Simple trade Sell surplus
Production Increase supply
Sales Beat competition
Marketing Dept. Coordinate & control
Marketing Company Customer satisfaction
Marketing Management
Chapter-1 The Nature of Marketing

14. Customer Value
Customer value is the ratio of benefits to the
sacrifice necessary to obtain those benefits
Creating customer values is a core business
strategy of many success firms
Marketing Management
Chapter-1 The Nature of Marketing

15. Marketers interested in
customer value
Offer products that perform
Give consumers more than they expect
Avoid unrealistic pricing
Give the buyer facts
Offer organization wide commitment in
serves and after-sales support
Marketing Management
Chapter-1 The Nature of Marketing

16. The Marketing Concept &
Customer Value
Take customer’s point
of view
Customer may not
dwell on value
Where does
competition fit?
Cost Benefits Customer
Marketing Management
Chapter-1 The Nature of Marketing

17. The Marketing Concept
Customer
Satisfaction The company Effort
The
Marketing
Concept
Profit
Marketing Management
Chapter-1 The Nature of Marketing

18. Relationship Marketing
A sense of well-being occurs when one
establishes an on-going relationship with
provider
Depends on
Customer orientation
Effective training programme
Employees
Team work
Marketing Management
Chapter-1 The Nature of Marketing

19. Putting it all together
Superior
Customer Value
Total company effort to
satisfy Customer
Customer Acquisition
Profitable Customer
Relationships with Satisfaction
Customer
Customer
Retention
Marketing Management
Chapter-1 The Nature of Marketing

20. Micro-Marketing
Is the performance of activities that seek to
accomplish an organization's objectives, by
anticipating customers that will satisfy those
needs .
It is a set of activities performed by
organizations
Marketing Management
Chapter-1 The Nature of Marketing

21. Macro-marketing
It refers to the social process that directs
goods and services in an economy from
produced to consumers in a way that
accomplishes the objectives of society by
effectively matching supply and demand
Emphasis is on how the whole marketing
system works
Marketing Management
Chapter-1 The Nature of Marketing

22. Marketing Process
Organization’s mission and vision, and the role
marketing plays
Setting marketing objectives
Gathering , analyzing and interpreting information
Developing marketing strategy
Implementing the marketing strategy
Designing performance measure
Periodically evaluating marketing efforts and making
changes if necessary
Marketing Management
Chapter-1 The Nature of Marketing

23. Who performs marketing
activities ?
Consumers
Marketing specialists
Advertising agencies
Internet service providers
Transporting firms
Marketing Management
Chapter-1 The Nature of Marketing

24. Reasons for studying
Marketing
Important role in society
Important to businesses
Offers outstanding career opportunities
Affects your life everyday
Increasing importance of the global
marketplace
Marketing Management
Chapter-1 The Nature of Marketing

25. Summary
“Marketing is the process of planning and
executing the concept of pricing, promotion,
and distribution of ideas, goods, and
services to create exchanges that satisfy
individual and organizational goals”
There are four main marketing philosophies,
1. Production 2.Sales 3. Marketing 4. Societal
Customer value is the ratio of benefits to the
sacrifice necessary to obtain those benefits
Marketing Management
Chapter-1 The Nature of Marketing

26. Summary
Relationship marketing provides a sense of
well-being occurs when one establishes an
on-going relationship with provider
Micro-marketing is a set of activities
performed by organizations
Macro-marketing emphasizes on how the
whole marketing system works
Study of marketing is essential as it affects
our day to day life
Marketing Management
Chapter-1 The Nature of Marketing