INTRODUCTION TO MARKETING MANAGEMENT

2. Introduction to Marketing
Market Research
Market Segmentation
Product Management
Distribution Management and Sales Promotion
Distribution Management and Sales Promotion
Retail Management
Case Study

3. Introduction to Marketing
I UNIT
Needs, Wants, Demands, Products, Exchange,
Transactions, Market, Marketing, Production Concept,
Product Concept, Sales Concept, Marketing Concept,
Societal Marketing Concept, Indian Marketing
Environment. Role and functions of marketing
department.

4. Need , Wants and Demand:
A human need is a state of felt deprivation of some basic
satisfaction. People require foods, clothing, shelter, safety,
belonging, esteem etc. these needs exist in the very nature of
human beings.
Human wants are desires for specific satisfiers of these needs.
For example, cloth is a needs but Raymonds suiting may be
want. Whilepeople’s needs are few, their wants are many.
Demands are wants for specific products that are backed up by
an ability and willingness to buy them. Wants become demands
when backed up by purchasing power

5. Need , Wants and Demand:

6. Products, Value, Satisfaction, Exchange and Transactions:
Products are defined as anything that can be offered to some
one to satisfy a need or want.
Consumers choose among the products, a particular product
that give them maximum value and satisfaction. Value is the
consumer’s estimate of the product’s capacity to satisfy their
requirements
Exchange is the act of obtaining a desired product from
someone by offering something in return. A transaction
involves at least two thing of value, conditions that are agreed
to, a time of agreement and a place of agreement

7. Market
Market is a place where buyers and seller together and exchange
their goods and services for money and money worth.
A public place where buyers and sellers make transactions,
directly or via intermediaries.
A market consist of all the existing and potential consumers
sharing a particular need or want who might be willing and able
toengage in exchange to satisfy that need or want
Definition:
“It is a place or area of potential exchange”
---- Phillip Kotler

8. Market

9. Importance of Marketing
Marketing process brings goods and services to satisfy the needs
and wants of the people.
It helps to bring new varieties and quality goods to consumers.
By making goods available at all places, it brings equipment
Distribution.
Marketing converts latent demand into effective demand.
It gives wide employment opportunities
It creates time, place and possession utilities to the products.
Efficient marketing results in lower cost of marketing
andultimately lower prices to consumers.
It is vital link between production and consumption and
Primarily responsible to keep the wheel of production and
consumption constantly moving.
It creates to keep the standard of living of the society

10. Production Concept
Product Concept
Selling Concept
Marketing Concept / Customer Orientation Concept
Societal Marketing Concept
Production Concept:
This is a old marketing concept till 1930’s. The main aim of the
concept is utilisation of complete orgasnasation capacity. In this
stage the management thinks that the sales department will sell
whatever the production department produces. No need of special
marketing efforts.
This is suitable in two situations
1. Where demand for a product is more than supply
2. Where the cost of the production is high
Examples is hindustan motors and premier automobiles

11. Product Concept:
This concept prevailed in between 1930-1940. the customers offers
best quality products always. So the management should improve
the product continuously.
Where the product have quality customer response is more. Here
no need of promotion activites. The main concept involved in this
is “GOOD WINE NEEDS NO BUSH”.
If the product is good and price is reasonable there is no need for
special maketing efforts. If manufacturere adopted product
concept it is like a Blind Love.
This concept called “Marketing Myopia”(Prof. T. Levitt)

12. Selling Concept:
Selling or sales concept. This is after 1940.
This concept said that available the best product is not enough.
Higher pressure salesmanship and heavy doses of
advertisement are essentail to move the products in the market.
Even the best product cannot be sold out in the market with
out the help of sales promotion and aggressive salesmanship.
The essence of this concept is “Goods are not bought but
sold”.
This concept states that goods aare not bought but they have to
be sold with the help of salesmanship, advertisment and service.

13. Maketing / Customer orientation:
It was started in 1950’s in USA. The main aim is to satisfy the
needs, wants, desires of potentail customers.
Here the starting point is customer than product
Finding wants and needs of customer and filling them is the
main aim of this concept.
Market research provides information relating to wants, needs,
desires, wants, aspirations etc of the consumers.
Theme is “Organisation likes cutomer not the product”
All business operations are revolve around customer
satisfaction & services under it.

14. Societal Oriented Concept:
It is a broadest marketing concept.
It takes into considerattion not only copnsuer satisfaction but
alsosocial welfare.
Social welfare speaks of polution free environemtn and quality
of human life.
Every organisation should adopt socially responsible marketing
polices and plans inorder to assure social welfare in addition to
consumer welfare.

15. INDIAN MARKETING ENVIRONMENT
“Surrounding which influence a particular activity” is called
Environment.
The market is also influenced by a number of forces which are
part of the marketing environment
Marketing Environment a force and actors thaat effect the ability
of a company to develop and maintain successful relationships
with its target customers
The organisation which are producing a number of products,
services are influenced by a group of factors which are operating
within and outside the organisation.
The different forces of environment provide a number of
opportunities and threats to the organisation. Hence a marketer
must develop marketing mix decisions as per the changes in the
marketing environment

16. NEED & TYPES OF MARKETING ENVIRONMENT
NEED:
Audit of environment
Assess nature of environment
Key envronment factors
Identify opportunities & Threats
Strategic Decision Making
The Marketing environment may be classified as under
Internal
External
It can be classified as
Micro
Macro
Further another classification is as under
Controllable
Uncontrollable

17. TYPES OF MARKETING ENVIRONMENT

18. TYPES OF MARKETING ENVIRONMENT

19. TYPES OF MARKETING ENVIRONMENT
Internal Factors
Decisins related to Product planning, branding, packing, pricing,
promotional budgets etc.,(Finance, HR, Production, technology)
Other factors
1. Suppliers
2.Intermediaries
3.Customers
4.Competitors
5.Other public organisation

20. TYPES OF MARKETING ENVIRONMENT
External Factors
The variables of Macro Environment may be classified as
Economic Environment:
It was divided into economic conditions prevailing in a country, industrial
conditions and availability of resources for production
Demographic Environment:
It was divided based on population, city size, nationality, age, sex, education,
martial status, family size, religion, family life style etc.
Indian Population 121.01 croces
Male 62.37% and Femal 58.5%
The heavy populated cities are Calcutta, Chennai, Mumai, Hyderabad, Delhi.
Chandigarh
Literacy rate 74.04%
Age wise, people belong to different age groups 0-4, 5-14, 15-59, 60 plus etc.
The division of population according to education is on the basis of primary,
secondary, college, post graduation and professional courses

21. TYPES OF MARKETING ENVIRONMENT
Socia Cultural Environment:
The social environment of a country influence the value system of the country
which effects the marketing the product.
Break up of the joint family system
Women employment
Changes in the attitude towards physical fitness
Increase in the attitude towards education
Change in life style of people
Growth of consumerism
Political & Legal Environment
Marketing Decisions are also affected by the forces of political and legel
environment. The political changes may take the following forms
1. Stability of tenure of government
2. Political parties and their philosophies

22. TYPES OF MARKETING ENVIRONMENT
Political & Legal Environment
Essentail commodities Act 1955
Consumer protection act 1986
Environment Protection act 1986
Monopolies & Restrictive Trade Practices Act 1969
Trade & Merchandise Markets Act 1958
Drugs & Cosmetics Act and Weights & Measures Act,
Essentail Commodities act 1955
Technological environment’
This environment provides on oppotunity and a threat for the
growth of the organisation. The factors to be considered in
1. Expenditure on research and development
2. Concentration on product improvements
3. Unlimited innovations in technology
4. Emphasis on regulaation of technological change

23. Importance of Environment Analysis
It helps to create a general understanding about changes in the
environment
It guides to better planning of strategies relating to government
and other departments
It also suggest necessary changes in allocation of scarce
resources
It also helps to identify various opportunities and threats which
are posed by environment
It provides a broad and general education for managers to
implement necessary strategies

24. Focus on the Customer.
Monitor the Competition.
Own the Brand
Create New Ideas(customer acquisition campaigns, keep-in-
touch programs, new product promotions, retention efforts)
Communicate Internally.
Manage a Budget.
Understand the ROI.
Set the Strategy, Plan the Attack, and Execute
Find & Direct Outside Vendors

25. S.N Selling Marketing
1 Selling starts with the seller. Marketing starts with the buyers.
2. Selling emphasizes on profit Marketing emphasizes on identification of
a market Opportunity.
3. Selling views business as a
“Goods producing processes”.
Marketing views business as a customer
satisfying process.
4. It over emphasizes the
‘exchange’ aspect
It concerns primarily with the ‘vale
satisfactions’
5. Seller’s convenience dominates
the formulation of the
‘marketing mix’.
Buyer determines the shape of the
‘marketing mix’.

26. S.N Selling Marketing
6. The firm makes the product
first the then decides how to
sell it and make profit.
The customer determines what is to be
offered as a ‘product’ and the firm makes a
‘total product offering’ that would match
the needs of the customers.
7. Seller’s motives dominate
marketing communications.
Marketing communications acts as the tool
for communicating the benefits/
satisfactions of the
product to the consumers
8. Costs determine price. Consumer determines price.
9. There is no coordination
among the different functions
of the total marketing task.
Emphasis is on integrated marketing
approach
10 ‘Selling’ views the customer as
the last link in the business.
‘Marketing’views the customer as
the very purpose of the business