MARKETING MANAGEMENT Unit - 1

DEFINITION OF MARKETING

It is the total system of interacting business activities

designed to plan, promote and distribute need satisfying

products and services to existing and potential consumers.

Ramaswamy and Namakumari

PHILIP KOTLER’S DEFINITION OF
MARKETING
❑It is a social and managerial process by which individuals and groups

obtain what they need and want through creating, offering and exchanging

products of value with others.

❑This is the most widely accepted definition of marketing.

❑Marketing is the process of identifying the needs of the target audience and

providing the products accordingly in exchange of some value.

Is Marketing an Art or a
Science?
SIMPLE MARKETING SYSTEM
❑Marketing highlights the
satisfaction of consumers
needs and wants.

❑ Knowing consumer needs and

desires is a road to success for
the marketers
DO MARKETERS CREATE NEEDS? IF YES,

CAN YOU THINK SOME OF THE EXAMPLES?

IF NO, JUSTIFY YOUR ANSWER.

 What can be Marketed?
● Products
● Services
● Events - World cup, Olympics,
trade fairs, book fairs
● Experiences - Disney World’s
Magic Kingdom, Treks
● Persons - Cricketers, Movie stars
● Places - Cities, States, Nations
● Properties - Real estate, Stocks,
bonds
● Organizations - Museums, NGOs
● Information - News
● Ideas
ORIENTATIONS TO MARKETING

⮚The concept of marketing has evolved through different stages from

production orientation to societal orientation.

⮚The modern concept of marketing highlights satisfaction of consumer

needs and wants whereas the societal concept cares for the well being of the

consumer as well as that of society.

 PRODUCTION CONCEPT
⮚This concept views that consumers will prefer those
products that are widely available and cheaper in cost.
⮚The organizations are production-oriented in nature and
try to achieve high production efficiency and emphasize on
wider supply of goods and services.
⮚This concept began in the mid of 19th century.
⮚In those days, primary motive of the organizations was to
make the product available to consumers and to kept the
price low.
⮚Henry Ford was the pioneer in the 1900s to expand the
automobile market on the basis of production concept by
providing his consumers only a single version of car i.e. T-
model in black colour.
 PRODUCT CONCEPT
● It assumes that consumers will buy the ●This particular situation is described as

product that offers them the highest ‘marketing myopia’ by the great philosopher of
quality, the best performance, and the marketing Professor Theodore Levitt.
most features.
●Marketing myopia means a wrong and crooked
● A product orientation leads a company to
try constantly to improve the quality of its perception of marketing and a short-sightedness

product. about business.

● The managers of these organizations spend
●It is in form of excessive attention to the quality
considerable energy, time and money on
of the product thereby leaving other aspects
research and development to introduce
quality and variations in products. without any due care.
EXAMPLE OF MARKETING MYOPIA
Kodak improved each and every attribute in its
camera but that was a total failure because at
that time, that was not required by the
consumers. Sony designed a beautiful small-
sized camera.

The marketers can add any kind of attribute to

their products but if the consumers are not
aware of regarding the availability, how can
they go for purchasing that particular product.
This phenomenon gave birth to another
concept i.e. selling concept.
SELLING CONCEPT

The selling concept is based on the assumption that consumers are unlikely
to buy a product unless and until they are actively and aggressively convinced
to do so.

An organization can not expect its products to get picked up automatically by

the customers. The organization has to put certain amount of efforts
consciously to push its products.

In this concept, the firm makes the product first and then spells out how to
sell it and make profit. Aggressive advertising, personal selling, large-scale
promotional instruments like discounts and free gifts etc. are normally
employed by the organizations to rely on this concept.
MARKETING CONCEPT
In the 1950s, some marketers started realizing that they could sell more products with more
ease and comfort, if they produced only those products which already had a place in the minds
of the consumers.

Instead of trying to sell them the products that had already produced, marketing-oriented firms
strived to produce only those products which have been produced according to the needs of the
consumers.

Satisfying the customer should be the major focus of all the organizational activities. Here
instead of focusing on quality or sale, consumer’s need and desired satisfaction become the
premise which is a must delivered phenomenon to be successful in the era of competition. To
identify unsatisfied consumer needs, organizations had to go for extensive marketing research.
Selling vs Marketing

Selling Concept

Marketing Concept
SOCIETAL MARKETING CONCEPT
In this philosophy, emphasis is being placed on how certain marketing activities and

efforts affect society as a whole in the era of limited resources, environmental

degradation and global competition.

This philosophy puts a question mark whether satisfying consumers’ need serve the

long-term intervals of the society or not. Hence, the new concept emerged as the societal

marketing concept where it is emphasized that besides satisfying consumer needs, long

run societal welfare has to be considered by the marketers.

SOCIAL MARKETING VS. SOCIETAL
MARKETING
Social Marketing Societal Marketing
⮚ Social good is the primary aim. ⮚Profit generation is the primary aim.
⮚It aims to bring a social change. ⮚Social good is the secondary aim.
⮚Example: Polio drops, Safe driving etc. ⮚It aims to build goodwill among
customers.
⮚Example: Surf Excel (save 1 bucket of
water), Ariel (Re. 1 goes to CRY for
every purchase)
Holistic Marketing
● Holistic marketing - It offers an integrated approach to marketing strategy.

● Relationship marketing : To build mutually satisfying long-term relationships with key constituents. -

Marketing Network

● Integrated marketing : Co-ordinates all marketing activities to create, communicate and deliver value. -

Integrated channel

● Internal Marketing : Horizontal alignment (with other departments) and vertical alignment (with senior

management) - Engaged Management

● Performance Marketing : Going beyond sales revenue to examine marketing scorecard.

New Marketing Realities
The three major market forces, two key market
outcomes, and four fundamental pillars of holistic
marketing that help to capture the new marketing
realities.
The set of tasks necessary for successful marketing
management and marketing leadership includes:
● developing marketing strategies and plans
● capturing marketing insights
● connecting with customers
● building strong brands
● creating, delivering and communicating value and
● creating long-term growth
Quiz time!
● Identify and explain the marketing management philosophy which implies that products and services
are bought not merely because of their quality or brand name, but because they satisfy a specific
need of a customer.
● Nisha, a school bag manufacturer, decided to improve the product for profit maximisation and thus,
added a water bottle holder to the existing design. Identify the marketing management philosophy
adopted by Nisha.
● Mansi, a shoe manufacturer for school students, decided to maximise her profit by producing and
distributing at large scale and thereby reducing the Average Cost of production. Identify the
marketing management philosophy adopted by Mansi.
● ’Bending the customer according to the product’ and ‘development of the product according to
customer needs’ are two important concepts of marketing management’. Identify the concepts and
differentiate between the two.
NATURE OF MARKETING
⮚Marketing is customer oriented
⮚Marketing is the delivery of value
⮚Marketing is a network of relationships
⮚Marketing is business

SCOPE OF MARKETING
⮚Market research
⮚ Product Planning and development
⮚ Pricing
⮚ Advertising
IMPORTANT TERMS
Needs: It refers to the state of felt deprivation. How individuals go about satisfying a
particular need is conditioned by the cultural values of that society which he/she
belongs to.
Wants: Wants are the specific satisfiers to satisfy a particular need. For example,
transportation is a need and a car is a satisfier.
Value: Value is represented by the ratio of perceived benefits to the price paid. Value
can be added by better specifying a product offer in accordance with consumer’s
expectations.
Market: Market consists of potential buyers and sellers where they interact for an
exchange process. Earlier people used to describe it as a place only.
Marketing myopia: It means a wrong perception about marketing where excessive
attention is given to the quality without taking care of the actual needs of the
consumers.
Read the caselet
Zeus Inc. (name disguised) operates in several industries, including chemicals,
cameras, and film. The company is organized into SBUs. Corporate management is
considering what to do with its Atlas camera division, which produces a range of
professional quality 35mm and consumer-friendly digital cameras.

Although Zeus has a sizable share and is producing revenue, the 35mm market is
rapidly declining at an accelerating rate. In the much faster-growing digital camera
segment, Zeus faces strong competition and has been slow to gain sales. Zeus’s
corporate management wants Atlas’s marketing group to produce a strong
turnaround plan for the division.
● Capture Marketing Insights

● Connect with Customers

● Build Strong Brands

● Create Value

● Capture Value

● Deliver Value

● Communicate Value

● Conduct marketing responsibly for long-term success

Links
For: https://www.youtube.com/watch?v=MLMS_QtKamg
Road Safety: https://www.youtube.com/watch?v=XbbQnr3k79w
Surf Excel: https://www.youtube.com/watch?v=Zq7mN8oi8ds
LEGO: https://youtu.be/QkH13mO0uog
Inspired by Iceland: https://www.youtube.com/watch?v=c8sCTukYwcg
Patagonia : https://www.youtube.com/watch?v=waUYdw9wVts