Marketing Management

Meaning Definition marketing, scope of

marketing, core marketing concepts,
Delivering and Creating Customer Value.
Marketing Ecosystem- contemporary roles
and responsibilities of marketing managers
Defining Marketing
Marketing starts with customers and ends with customers.

The American Marketing Association defines marketing as:

“Marketing is an organisational function and a set of processes for creating,

communicating, and delivering value to customers and for managing customer
relationships in ways that benefit the organisation and its stakeholders.”

Marketing management is the art and science of choosing target markets and
getting, keeping, and growing customers through creating, delivering, and
communicating superior customer value.

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 Marketing?

◉ Marketing is 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 stakeholders
◉ Marketing is identifying and meeting human and social needs.
◉ Marketing is “meeting needs profitably”

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 What is marketing?

◉ Delivering Value
◉ For a firm to deliver value to its customers, they must consider
what is known as the "total market offering." This includes the
reputation of the organization, staff representation, product
benefits, and technological characteristics as compared to
competitors' market offerings and prices. Value can thus be
defined as the relationship of a firm's market offerings to those of
its competitors
◉ Customer Relationship The practice of building and
maintaining ongoing friendships with customers in an effort to
make them feel comfortable with an organization and its service
providers and to enhance customer loyalty.
◉ Marketing is the process of communicating the value of a
product or service to customers, for the purpose of selling that
product or service.
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The Concept of Exchange
The concept of exchange is the essence and central to marketing thinking.
Unless there is actual or potential exchange, there is no marketing.

Something of Value

(Goods, Service, Ideas, etc.)

Both Parties Freely Agree to the

Marketer Customer
Terms and
Conditions of Exchange

(Money, Credit, Goods, Labour)

Something of ValueMarketer

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 For an exchange to occur…..

◉ There are at least two parties.

◉ Each party has something that might be of value to the other
party.
◉ Each party is capable of communication and delivery.
◉ Each party is free to reject the exchange offer.
◉ Each party believes it is appropriate or desirable to deal with the
other party.

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 What is Marketed?

◉ Goods ◉ Places
◉ Services ◉ Properties
◉ Events ◉ Organizations
◉ Experiences ◉ Information
◉ Persons ◉ Ideas

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 Who markets?

◉ Marketers and Prospects- A marketer is someone

who seeks a response-attention, a purchase, a vote, a
donation-from another party, called the prospect. If
two parties are seeking to sell something to each
other, we call them both marketers.

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 Possible Eight Demand States

◉ Negative ◉ Irregular
◉ Nonexistent ◉ Unwholesome
◉ Latent ◉ Full
◉ Declining ◉ Overfull

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Marketing Tasks
1. Negative Demand: This situation is faced when a major part of the target market
dislikes the product and may even pay a price to avoid it. The marketing task is to unearth
and analyse the reasons for this state, and to learn if a product redesign or change in
marketing mix elements can help.

2. No Demand: The customers may be unaware or indifferent towards the product. The
remedy is to create product awareness and connect product benefits to customers’ needs
and wants.

3. Dormant Demand: This may occur when the currently available products fail to
satisfy the strong needs that customers feel. To meet the latent demand more effectively,
the marketing task is to develop product or service if the market size is favourable.

Cont…

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Marketing Tasks
4. Falling Demand: Sooner or later, companies face this situation with respect to their
products or services. The task is to reverse this trend, and marketing should find out the
reasons and take swift remedial action. New markets, product feature modification, or more
focused and effective promotion may hold the solution.

5. Fluctuating Demand: Many companies experience this pattern, the demand varying
according to the season, or festivals, etc. The task is to synchronise marketing efforts to
alter the demand pattern by adopting flexible pricing, and sales promotion techniques.

6. Full Demand: This is a situation all companies aspire and work for. The task is to
maintain the level of demand and keep pace with the changing customer preferences and
ever increasing competition and monitor customer satisfaction.

Cont…

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Marketing Tasks
7. Excess Demand: At this demand level, the company is unable to meet the demand
level. The only option usually available is to find ways to decrease demand temporarily or
permanently. Generally, marketing seeks to discourage overall demand through
demarketing, either by increasing prices or reducing promotion and services. Selective
demarketing involves reducing demand from those markets that are less profitable.

8. Unwholesome Demand: This concerns managing demand for harmful products.

The marketing task is to make the public aware about the dangers and harmful effects
caused through misuse or over use of such products by using appropriate degree of fear
appeals, price hike, or reduced availability.

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 Possible Eight Demand States

◉ Irregular Demand
◉ Negative Demand
◉ Consumers purchases vary on a
◉ Consumers dislike the product e.g. seasonal, monthly, weekly, daily or
Vaccination, Dental work hourly e.g. Museums on week days,
◉ Nonexistent Demand Travelling Peak Off Peak time
◉ Consumers may be unaware of the ◉ Unwholesome Demand
product e.g. Foreign Language ◉ Consumers attracted to products
course that have undesirable social
◉ Latent Demand consequences e.g. Cigarettes,
Alcohol, Drugs
◉ Consumers may share a strong
need that can’t be satisfied with ◉ Full Demand
existing product e.g. Harm less ◉ Consumers are adequately buying all
cigarettes, Fuel Efficient cars products.
◉ Declining Demand ◉ Overfull Demand
◉ Consumers begins to buy the ◉ More consumers would like to buy
product less frequently e.g. than can be satisfied.
churches, Govt. Schools
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 Markets

◉ Traditionally, a “market” was a physical place where buyers

and sellers gathered to buy and sell goods.

◉ Economists describe a market as a collection of buyers

and sellers who transact over a particular product or
product class.
◉ Marketers often use the term market to cover various
groupings of customers.
◉ They view sellers as constituting the industry and buyers as
constituting the market.

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 Key Customer Markets

◉ Consumer markets
◉ Business markets

◉ Global markets

◉ Nonprofit/Governmental

markets

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 The marketplace isn’t what it used to
be….
◉ Changing technology ◉ Empowerment
◉ Globalization ◉ Customization
◉ Deregulation ◉ Convergence
◉ Privatization ◉ Disintermediation

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Marketplaces, Marketspaces and Metamarkets

◉ Marketplace is
physical such as a
store you shop in

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 Marketplaces, Marketspaces and Metamarkets

◉ Marketspace is digital, as
when you shop on the
Internet.

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 Marketplaces, Marketspaces and Metamarkets

◉ A cluster of complementary
products and services that are
closely related in the mind of
consumers but spread across a
diverse set of industries.

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 Core Marketing Concepts

◉ Needs, wants, and demands

◉ Target markets, positioning, segmentation
◉ Offerings and brands-
Companies address needs by putting forth a value proposition a
set of benefits that they offer to customers to satisfy their needs.
◉ The intangible value proposition is made physical by an
offering which can be combination of products information
and experiences.
◉ Value and satisfaction
Value reflects the sum of the perceived tangible and intangible
benefits and costs to customers. It is a combination of quality
service and price.(“qsp”) called “customer value triad”
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 Core Marketing Concepts

◉ Marketing channels
Communication Channels e.g. Newspapers, Magazines
Radio., Television, Mail, Telephone, Billboards, Posters,
Fliers, CDs, Audio Tapes & Internet
◉ Distribution Channels e.g. Distributors, Wholesalers,
Retailers, & Agents
◉ Supply chain is a longer channel stretching from raw
materials to components to final products that are carried
to final buyers.
◉ Competition
◉ Marketing environment
◉ Task Environment e.g. Company, Suppliers,
Distributors, Dealers & Target Customers

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Needs, Wants, and Demand
A need can be defined as a felt state of deprivation of some basic
satisfaction.

The specific satisfier that an individual looks for defines the want.

When the want is backed by purchasing power, it is called the demand.

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 Needs

◉ Stated Needs(The customer wants an inexpensive car)

◉ Real Needs(The customer wants a car whose operating cost
not its initial price is low)
◉ Unstated needs(The customer expects good service from
the dealer)
◉ Delight Needs(customer would like the dealer to include an
onboard navigation system)
◉ Secret Needs(The customer want friends to see him as a
savvy consumer)

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 Marketing Mix

◉ In order to cater to the requirements of identified market

segment, an entrepreneur has to develop an appropriate
marketing mix. Marketing mix is a systematic and balanced
combination of the four inputs which constitute the core of
a company’s marketing system – the product, the price
structure, the promotional activities and the place or
distribution system”. These are popularly known as “Four
P’s” of marketing. An appropriate combination of these four
variables will help to influence demand. The problem facing
small firms is that they sometimes do not feel themselves
capable of controlling each of the four variables in order to
influence the demand.

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 Marketing Mix: Four Ps

◉ The offer you make to your customer can be altered by

varying the mix elements.
◉ So for a high profile brand, increase the focus on promotion
and desensitize the weight given to price.

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Marketing Mix
4 Ps: Product, Price, Place (distribution) and Promotion

Product Price Place Promotion

Decisions Decisions Decisions Decisions

Brand name Pricing strategy Distribution

Functionality Suggested retail channels (push, pull, etc.)
price
Styling Wholesale price Market coverage Advertising
Quality Various discounts - intensive Sales promotion
Safety Seasonal pricing - selective Personal selling
Packaging Bundling - exclusive PR / publicity
Repairs & support Price flexibility Inventory Promotional budget
Warranty Price discrimination Warehousing
Accessories and Order processing
Services Transportation

Marketing Mix Elements (4Ps)

Product (Customer Benefit)
“A products anything that can be offered to a market for attention,
acquisition, use, or consumption that might satisfy a need or want.”
Promotion (Marketing Communications)
Promotion is a key element of marketing programme and is concerned
with effectively and efficiently communicating the decisions of marketing
strategy, to favourably influence target customers’ perceptions to
facilitate exchange between the marketer and the customer that may
satisfy the objectives of both customers and the company.
Distribution (Customer Convenience)
Decisions with respect to distribution channel focus on making the
product available in adequate quantities at places where customers are
normally expected to shop for them to satisfy their needs.
Price (Customer Cost)
Price variable such as dealer price, retail price, discounts, allowances,
credit terms, etc., directly influence the development of marketing
strategy, as price is a major factor that influences the assessment of
value obtained by customers.
 Total Offer To The Customer
◉ First, the firm chooses the product to meet the identified
need of the target segment
◉ Second, the right distribution channel is used to make the
product available
◉ Third, the firm undertakes eye catching promotion
◉ Fourth, the price platform is acceptable to the customer &
firm

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 4Ps & 4Cs

◉ Product- Customer /Consumer

◉ Price- Customer cost
◉ Place- Convenience
◉ Promotion- Communication

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 4Ps & 4Cs

◉ Four Cs
◉ The Four Ps is also being replaced by the Four Cs model,
consisting of consumer, cost, convenience, and
communication.
◉ The Four Cs model is more consumer-oriented and fits
better in the movement from mass marketing to niche
marketing.

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Extended Marketing Mix

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• The 7 Ps • The 7 Cs
7Ps & 7Cs
• Organisation • Customer Facing
Facing
• Product • =• Customer/
Consumer
• Price • =• Cost
• Place • =• Convenience
• Promotion • =• Communication
• People • =• Caring
• Processes • =• Co-ordinated
• Physical Evidence • =• Confirmation
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 The New Marketing Realities

◉ Major societal Forces

■ Network information Technology
■ Globalization
■ Deregulation
■ Privatization
■ Heightened Competition
■ Industry Convergence
■ Consumer resistance
■ Retail Transformation
■ Disintermediation
■ Consumer buying power
■ Consumer information
■ Consumer participation
■ Consumer resistance

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 The New Marketing Realities

■ New Consumer Capabilities

● A substantial increase in Buying Power
● A greater variety of available goods and services
● A great amount of information about practically any
thing
● Greater ease in interacting and placing and receiving
orders
● An ability to compare notes on product and services
● An amplified voice to influence peer and public
opinion

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 The New Marketing Realities

◉ New Company Capabilities:

◉ Marketers can use Internet as a powerful info and sales channel
◉ Marketers can collect full and richer info about markets, customers,
prospects and competitors
◉ Can tap social media to amplify brand image
◉ Can use mobile mktg
◉ Can speed up both internal and external communication
◉ Can send coupons, samples to facilitate sales
◉ Can customized product offerings

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Designing a Customer driven strategy
Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.
Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.
Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.
A value proposition is a promise of value to be delivered,
communicated, and acknowledged. It is also a belief from the
customer about how value (benefit) will be delivered, experienced
and acquired. A value proposition can apply to an entire
organization, or parts thereof, or customer accounts, or products
or services.

Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.
Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.
Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.
Evolution of Marketing Concept
❖ The Production Concept
❖ The product concept
❖ The Selling Concept
❖ The Marketing Concept

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 Orientation, Marketing Orientation, Consumer Orientation

◉ Orientation- the type of interests, activities, or aims that an organization,

business, or project has, or the act of giving attention to a particular thing:
◉ Marketing Orientation - is an organizational orientation that believes
success is most effectively achieved by satisfying consumer demands.
◉ Consumer Orientation - A service offered by companies that focuses on the
internal and external needs of a business's customers. Consumer
orientation establishes and monitors standards of customer satisfaction
and strives to meet the clientele's needs and expectations related to the
product or service sold by the business.

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Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.
Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.
Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.
 The Production Concept
◉ Those companies who believe in this philosophy think that if the
goods/services are cheap and they can be made available at many places,
there cannot be any problem regarding sale.
◉ Keeping in mind the same philosophy these companies put in all their
marketing efforts in reducing the cost of production and strengthening
their distribution system. In order to reduce the cost of production and to
bring it down to the minimum level, these companies indulge in large
scale production.
◉ This helps them in effecting the economics of the large scale production.
Consequently, the cost of production per unit is reduced.
◉ The utility of this philosophy is apparent only when demand exceeds
supply. Its greatest drawback is that it is not always necessary that the
customer every time purchases the cheap and easily available goods or
services

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 The Product Concept

◉ Those companies who believe in this philosophy are of the opinion that
if the quality of goods or services is of good standard, the customers
can be easily attracted. The basis of this thinking is that the customers
get attracted towards the products of good quality. On the basis of this
philosophy or idea these companies direct their marketing efforts to
increasing the quality of their product.
◉ It is a firm belief of the followers of the product concept that the
customers get attracted to the products of good quality. This is not the
absolute truth because it is not the only basis of buying goods.
◉ The customers do take care of the price of the products, its availability,
etc. A good quality product and high price can upset the budget of a
customer. Therefore, it can be said that only the quality of the product
is not the only way to the success of marketing.

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 The Selling Concept

◉ Those companies who believe in this concept think that leaving alone the
customers will not help. Instead there is a need to attract the customers towards
them. They think that goods are not bought but they have to be sold.
◉ The basis of this thinking is that the customers can be attracted. Keeping in view
this concept these companies concentrate their marketing efforts towards
educating and attracting the customers. In such a case their main thinking is
‘selling what you have’.
◉ This concept offers the idea that by repeated efforts one can sell-anything to the
customers. This may be right for some time, but you cannot do it for a long-time.
If you succeed in enticing the customer once, he cannot be won over every time.
◉ On the contrary, he will work for damaging your reputation. Therefore, it can be
asserted that this philosophy offers only a short-term advantage and is not for
long-term gains.

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 The Marketing Concept

◉ Those companies who believe in this concept are of the

opinion that success can be achieved only through consumer
satisfaction. The basis of this thinking is that only those
goods/service should be made available which the
consumers want or desire and not the things which you can
do.
◉ In other words, they do not sell what they can make but they
make what they can sell. Keeping in mind this idea, these
companies direct their marketing efforts to achieve
consumer satisfaction.
◉ In short, it can be said that it is a modern concept and by
adopting it profit can be earned on a long-term basis. The
drawback of this concept is that no attention is paid to social
welfare.

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 Societal Marketing Concept

◉ This concept stresses not only the customer satisfaction but also gives importance to
Consumer Welfare/Societal Welfare. This concept is almost a step further than the
marketing concept. Under this concept, it is believed that mere satisfaction of the
consumers would not help and the welfare of the whole society has to be kept in mind.
◉ For example, if a company produces a vehicle which consumes less petrol but spreads
pollution, it will result in only consumer satisfaction and not the social welfare.
◉ Primarily two elements are included under social welfare-high-level of human life and
pollution free atmosphere. Therefore, the companies believing in this concept direct all
their marketing efforts towards the achievement of consumer satisfaction and social
welfare.
◉ In short, it can be said that this is the latest concept of marketing. The companies adopting
this concept can achieve long-term profit

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Holistic Marketing Concept

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Delivering and Creating Customer
Value

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Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.
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Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.
Capturing value form Customers
Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.
Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.
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Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.
Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.
Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.
Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.
Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.
The changing Marketing
Landscape.
Copyright © 2013 Dorling Kindersley (India) Pvt Ltd. Authorized adaptation from
the United States edition of Marketing Management, 14e.
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