must read this before starting your career in marketing.

1. MARKETING MANAGEMENT

3. What is Marketing?
• Marketing, more than any other business function,
deals with customers.
• Creating customer value and satisfaction are at
the very heart of modern marketing thinking and
practice.
•Some people believe that only large business
organizations operating in highly developed
economies use marketing, but sound marketing
is critical to the success of every organization –
whether large or small, for profit or non – profit,
domestic or global.

4. Defining Marketing for the
Twenty-First Century

5. A Small Group Exercise to Understand the Nature and Scope
of Marketing
Unison Sports
Unison Sports have been offered a lucrative deal for
the acquisition of a shut down plant which is into
making tennis racquet. The machinery, automated
system and people involved in manufacturing of
this plant are at place. The deal is very economic
but people at Unison Sports are worried about the
marketing aspect of the product which the company
manufactures.
Unison Sports hired you as a marketing consultant.
Develop a framework of activities focusing on process
and set of activities that you would consider in
planning the marketing this product?

6. Key Components of Marketing
Definition
To explain marketing definition, we examine
the following important terms :
– Needs, wants, and demands
– Products and services
– Value and satisfaction
– Markets

7. Needs, Wants, and Demands
Needs:
• The most basic concept underlying marketing is that of human needs.
• Human needs are states of felt deprivation.
• Human have many complex needs:
– Physical needs for food, clothing, warmth, and safety
– Social needs or belonging and affection
– Individual needs for knowledge and self – expression
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.
Demands:
• When backed by buying power and willingness to spend wants become demands.

8. Products and Services
Product:
• Anything that can be offered to a market to satisfy a need or
want.
Services:
• 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.

9. 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 often do not judge product value and costs accurately or objectively.
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 customer’s expectations, the buyer is
dissatisfied.

10. Kotler’s social definition:
“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.”

11. The AMA managerial definition:
“Marketing is the process of planning
and executing the conception, pricing,
promotion, and distribution of ideas,
goods, and services to create exchanges
that satisfy individual and organizational
objectives.”

12. Marketing is creating and delivering
standard of living -Paul Mazur
Marketing is the management process
that identifies, anticipates and satisfies
customer requirements profitably’
--The Chartered Institute of Marketing

13. “MARKETING MANAGEMENT IS THE ART AND
SCIENCE OF CHOOSING TARGET MARKETS
AND GETTING, KEEPING AND GROWING
CUSTOMER THROUGH CREATING, DELIVERING
AND COMMUNICATING SUPERIOR CUSTOMER
VALUE”
Contemporary Definition

14. What can be marketed?
•Goods
•Services
•Events
•Persons
•Places
•Properties
•Organizations
•Information
•Ideas

15. Some New Concepts
•Marketplace
•Market Space
•Meta Market

16. MARKETING MANAGEMENT PHILOSOPHIES
• The role that marketing plays within a company varies
according to the overall strategy and philosophy of each firm.
• There are five alternative concepts under which
organizations conduct their marketing activities:
– Production concept
– Product concept
– Selling concept
– Marketing concept
– Societal marketing concepts

17. The Production Concept
States that Consumers will favor those
• products that are widely available and low in
cost
• Produce as much as possible
• Distribute widely
• Example, Henry Ford’s early cars

18. Production Concept Pioneer: Ford
Motors
He is credited with "Fordism", that is, mass
production of inexpensive goods coupled with
high wages for workers. Ford had a global vision,
with consumerism as the key to peace. His
intense commitment to systematically lowering
costs resulted in many technical and business
innovations, including a franchise system
• However, there were problems here, which were?
• No focus on quality and features, just price and
availability
• This gave way to the Product Concept

19. •Product Concept
Consumers will favour that product that offers the
• best quality/performance and most features
• • Hence, what do you do? Make the “best” possible product
• • Do R&D, come out with new features, improve, improve and improve
What are the problems here?
Product Concept – Myopia
• Theodore Levitt called it “Marketing Myopia”
• Focus on the product, rather than on the customer
• The rise of budget airlines, even in Asia
• Bajaj missed the motorcycle revolution

20. Selling Concept
The idea that consumers will not buy enough
of the organization’s products unless the
organization undertakes a large – scale selling
and promotion effort.

21. Marketing Concept
• Determine Consumer Needs/Wants and fill
them better than anyone else, at a profit
• The Consumer is thus the starting point
• Marketing starts with consumer needs
• Hence, marketers have to be consumer
focused always, consumer obsessed, in fact.

22. Factory Existing products
Selling
and promoting Profits through sales
volume
Starting point
Focus Means Ends
The selling concept
Market Customer needs Integrated
marketing
Profits through customer
satisfaction
The marketing concept
The selling and Marketing Concepts Contrasted

23. Societal Marketing Concept
You need to care about society as well
• Societal Marketing: Fill consumer needs, at the same time,
harm him/her & society as little as possible
• Thus, McDonalds faces lawsuits
Center for Science in the Public Interest (CSPI) served McDonald's
with a notice of its intent to sue if the fast food giant continues
to use toys to promote Happy Meals. (An "intent to sue" letter
is a prerequisite to filing a lawsuit in some states.) The basis for
the potential case is that using toys to market to small children
is unfair and deceptive under the consumer protection laws in
a number of states. According to CSPI's letter, McDonald's toy
promotions violate the laws of California, Massachusetts, New
Jersey, Texas, and the District of Columbia.

24. Three Considerations Underlying The Societal Marketing
Societal
marketing
concept
Society
(Human welfare)
Company
(Profits)
Consumers
(Want satisfaction)

25. The Debate
• The letter more specifically spells out the legal basis for
the case:
McDonald’s practices are predatory and wrong. They are
also illegal, because marketing to kids is
(1) inherently deceptive, because young kids are not
developmentally advanced enough to understand the
persuasive intent of marketing; and
(2) unfair to parents, because marketing to children
undermines parental authority and interferes with their
ability to raise healthy children.

26. The Debate
Parents’ say
McDonald's makes my job as a parent more difficult.
They market cheap toys that appeal to kids and it
works. My kids always want to go to McDonald's
because of the toys. I try my best to educate my
kids about healthy eating but it's hard when I am
competing against the allure of a new Shrek toy.

27. Functions of Marketing
Buying - people have the opportunity to buy products that they want.
Selling - producers function within a free market to sell products to consumers.
Financing - banks and other financial institutions provide money for the production
and marketing of products.
Storage - products must be stored and protected until they are needed. This function
is especially important for perishable products such as fruits and vegetables.
Transportation -products must be physically relocated to the locations where
consumers can buy them. This is a very important function. Transportation includes
rail road, ship, airplane, truck, and telecommunications for non-tangible products
such as market information.

28. Functions of Marketing
Processing - processing involves turning a raw product, like
wheat, into something the consumer can use -- for example,
bread.
Risk-Taking - insurance companies provide coverage to protect
producers and marketers from loss due to fire, theft, or natural
disasters.
Market Information - information from around the world about
market conditions, weather, price movements, and political
changes, can affect the marketing process. Market information is
provided by all forms of telecommunication, such as television,
the internet, and phone.
Grading and Standardizing - Many products are graded in order
to conform to previously determined standards of quality.

29. The Marketing Mix

30. The Marketing Mix
The tools available to a business to gain the reaction
it is seeking from its target market in relation to its
marketing objectives

31. Product

32. Product
• Methods used to improve/
differentiate
the product and increase sales or target
sales more effectively to gain
a competitive advantage e.g.
-Extension strategies
-Specialised versions
-New editions
-Improvements – real or otherwise!
-Changed packaging
-Technology, etc.

33. Price

34. Price
•Pricing Strategy
•Importance of:
-knowing the market
-elasticity
-keeping an eye
on rivals

35. Promotion

36. Promotion
Strategies
to make the consumer aware of
the existence of a product
or service
• NOT just advertising

37. Place

38. People

39. Process

40. Process
• How do people consume services?
• What processes do they have to go
through to acquire the services?
• Where do they find the availability
of the service?
-Contact
-Reminders
-Registration
-Subscription
-Form filling
-Degree of technology

41. Physical Environment