Marketing Management

UNIT_ ONE
 UNIT OUTLINE
• Unit 1: Introduction to marketing concepts.
• Understanding core marketing concepts.
• Needs, wants, demands, value, satisfaction and exchange.
• 4P’s of marketing.
• Evolution of marketing paradigms— production, product,
selling, marketing and societal marketing concept.
“Marketing must be customer-defined and customer-driven. You
need to state who you want your customers to be and the need
you’re trying to satisfy better than anyone else,” he says.
“Secondly, use the marketing tools – product, price, place and
promotion – in an integrated way. If you have a high-class
product you can’t use low-class media. That hasn’t changed. That
was in my first edition.”
 Marketing.. Difficult but Easy.
• If you work in a marketing role, it's probably difficult
for you to define marketing even though you see and
use it every day -- the term marketing is a bit all-
encompassing and variable for a straightforward
definition.
• But upon digging deeper, seeing that actually,
marketing does overlap heavily with advertising and
sales.
• Marketing is present in all stages of the business,
beginning to end
 What is marketing?

• Marketing refers to any actions a company takes

to attract an audience to the company's product
or services through high-quality messaging.
• Marketing aims to deliver standalone value for
prospects and consumers through content, with
the long-term goal of demonstrating product
value, strengthening brand loyalty, and ultimately
increasing sales.
 Definition of Marketing

• Marketing is the activity, set of institutions, and

processes for creating, communicating, delivering, and
exchanging offerings that have value for customers,
clients, partners, and society at large.
• Dictionary.com defines marketing as, "the action or
business of promoting and selling products or services,
including market research and advertising."
• According to Philip Kotler “Marketing is a social and
managerial process by which individuals and groups obtain
what they need and want through creating and exchanging
products and value with others.”
• According to the American Marketing Association
(1988), “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
(customer) and organizational objectives.”
• Peter Drucker defines, “Marketing is not only much broader
than selling; it is not a specialized activity at all. It encompasses
the entire business. It is the whole business seen from the
point of view of the final result, that is, from the customer’s
point of view. Concern and responsibility for marketing must
therefore permeate all areas of the enterprise.”
• In the words of Philip Kotler and Kevin Lane, “Marketing
management is the art and science of choosing target markets
and getting, keeping and growing customers through creating,
delivering and communicating superior customer values of
management.”
• Stanton (1964) defines, “Marketing is a total system of
business activities designed to plan, price, promote and
distribute want-satisfying goods and services to present and
potential customers.”
• Johnson (1982) states, “Marketing is the function that
assesses consumer needs and then satisfies them by
creating an effective demand for, and providing, the goods
and services at a profit.”
• Mark Burgess defines, “Marketing is the process by which a
firm profitably translates customer needs into revenue.”
 Selling Vs. Marketing.
• What is Sales?
• Sales refer to the exchange of goods and services in return for the
money.
• It is a process to transfer goods from manufacturer to distributor,
distributor to wholesaler, wholesaler to retailer and from retailer to
the consumer.
1. The primary object of sales is to increase revenue.
2. Demonstration of the product
3. Establishing tie-up with various companies
4. Customers satisfaction
5. Building contacts
 Are Sales and Marketing Different

• The answer to that question would be a Yes for sure.

• There is no doubt that marketing and sales help in the generation
of leads and also assist in the increase in revenue.
• But then these functions are different because they use different
tools and processes in order to achieve the one common goal
that they share.
• Sales can be used in order to promote activities such as selling
services and marketing goods.
• Marketing can be used in order to increase the interest in the
company in the minds of the users.
• So, in a way these two are pretty different.
 Marketing and its Importance
• In this section, we’ll discuss the importance of marketing for
businesses along with the reasons.
• Effective consumer engagement:
• Building and maintaining reputation:
• Building relationships between customers and business:
• Boosting sales:
• Staying relevant:
• Making informed decisions:
 Further
• Marketing identifies customers, their needs, and how much value
they place on getting those needs addressed.
• Marketing informs the design of the product to ensure it meets
customer needs and provides value proportional to what it costs.
• Marketing is responsible for communicating with customers
about products, explaining who is offering them and why they are
desirable.
• Marketing is also responsible for listening to customers and
communicating back to the provider about how well they are
satisfying customer needs and opportunities for improvement.
• Marketing shapes the location and terms of the transaction, as
well as the experience customers have after the product is
delivered.
 The Scope of Marketing
• According to the American Marketing Association “Marketing is the
activity, set of institutions, and processes for creating,
communicating, delivering, and exchanging offerings that have
value for customers, clients, partners, and society at large.
• Thus, the scope of marketing defines all the possible things
marketing can do.
• In other words, the scope of marketing describes the tasks,
responsibilities, marketing strategies, etc., that marketing
professionals in a company have to shoulder.
• For example, customer satisfaction plays a huge part in the scope of
marketing.
• Therefore, all things pertaining to customer satisfaction comes
under the scope of marketing.
• Create Awareness
• Studies Customer’s Wants
• Product Planning
• Advertising
• Pricing Policies
• Distribution
• Selling
• Packaging
• After-Sales Services
• Collects The Feedback
• Customer relationship management
• Responsibility towards the Society
 Types of Marketing
• The different types of marketing strategies that you should be aware of are:
• B2B Marketing
• The term B2B marketing means business-to-business transactions. B2B marketing
strategies are used when a company is selling goods or services to some other
company.
• B2C Marketing
• B2C marketing means business-to-consumer marketing. This refers to a company
selling its products or services to consumers and the business promotion is done
through ads.
• C2B Marketing
• This is the opposite of B2C and means consumer-to-business marketing. In this type
of marketing, the consumer gives goods or services to the company.
• C2C Marketing
• C2C Marketing refers to consumer-to-consumer marketing. In this, consumers
interact with co-consumers when they share a common product or service. An
 Marketing Concepts: 8 Core Marketing Concepts

• Philip Kotler, the eminent writer, defines modern marketing as,

“Marketing is social and managerial process by which
individuals and groups obtains what they needs and wants
through creating and exchanging product and value with
others.”
• Careful and detailed analysis of this definition necessarily
reveals some core concepts of marketing
• Which ARE-
• 1. Needs:
• Existence of unmet needs is precondition to undertake marketing
activities.
• Marketing tries to satisfy needs of consumers.
• Human needs are the state of felt deprivation of some basic satisfaction.
• A need is the state of mind that reflects the lack-ness and restlessness
situation.
• Needs are physiological in nature.
• People require food, shelter, clothing, esteem, belonging, and likewise.
• Note that needs are not created.
• They are pre-existed in human being.
• Needs create physiological tension that can be released by
consuming/using products.
• 2. Wants:
• Wants are the options to satisfy a specific need.
• They are desire for specific satisfiers to meet specific need.
• For example, food is a need that can be satisfied by variety of
ways, such as sweet, bread, rice, sapati, puff, etc.
• These options are known as wants.
• In fact, every need can be satisfied by using different options.
• Maximum satisfaction of consumer need depends upon
availability of better options.
• Needs are limited, but wants are many; for every need, there are
many wants.
• Marketer can influence wants, not needs. He concentrates on
creating and satisfying wants
• 3. Demand:
• Demand is the want for specific products that are backed by the
ability and willingness (may be readiness) to buy them.
• It is always expressed in relation to time.
• All wants are not transmitted in demand.
• Such wants which are supported by ability and willingness to buy
can turn as demand.
• Marketer tries to influence demand by making the product
attractive, affordable, and easily available.
• Marketing management concerns with managing quantum and
timing of demand.
• Marketing management is called as demand management.
• 4. Product:
• Product can also be referred as a bundle of satisfaction,
physical and psychological both.
• Product includes core product (basic contents or utility),
product-related features (colour, branding, packaging, labeling,
varieties, etc.), and product-related services (after-sales
services, guarantee and warrantee, free home delivery, free
repairing, and so on).
• So, tangible product is a package of services or benefits.
Marketer should consider product benefits and services,
instead of product itself.
 Utility (value), Cost, and Satisfaction:
• Utility means overall capacity of product to satisfy need and want.
• It is a guiding concept to choose the product.
• Every product has varying degree of utility.
• As per level of utility, products can be ranked from the most need-satisfying
to the least need-satisfying.
• Cost means the price of product.
• It is an economic value of product.
• The charges a customer has to pay to avail certain services can be said as
cost.
• The utility of product is compared with cost that he has to pay.
• Satisfaction means fulfillment of needs. Satisfaction is possible when buyer
perceives that product has more value compared to the cost paid for.
• Satisfaction closely concerns with fulfillment of all the expectations of buyer.
Satisfaction releases the tension that has aroused due to unmet need(s)
• Exchange, Transaction, and Transfer:
• Exchange is in the center of marketing.
• Marketing management tries to arrive at the desired exchange.
• Marketing emerges only when people want to satisfy their needs and
wants through exchange.
• Exchange is an act of obtaining a desired product from someone by
offering something in return.
• Obtaining sweet by paying money is the example an exchange.
• Exchange is a process, not event, it implies that people are
negotiating and moving toward the agreement.
• When an agreement is reached, it is transaction. Transaction is the
decision arrived or commitment made
• Relationships and Network:
• Today’s marketing practice gives more importance to relation
building. Marketing practice based on relation building can be said as
relationship marketing.
• In marketing management, frequently used words are markets,
marketing, marketer, and prospects.
• A market consists of all potential customers sharing a particular need
or want who might be willing and able to engage in exchange to
satisfy this need or want.
• A market is a place where all the actual and potential sellers & buyers
and products & services are made sale, purchase, and consume.
• In order words, the market is a combination component of product,
service, seller, and buyer.
• The market is the third of the essential elements of core concepts of
4Ps of Marketing
 Lets See..
• The four Ps are often referred to as the marketing mix.
• The four Ps are the four essential factors involved in marketing
a product or service to the public.
• The four Ps are product, price, place, and promotion.
• The concept of the four Ps has been around since the 1950s.
• As the marketing industry has evolved, other Ps have been
identified: people, process, and physical evidence.
 Understanding the 4 Ps of Marketing
• Neil Borden, an advertising professor at Harvard, popularized the
idea of the marketing mix—and the concepts that would later be
known primarily as the four Ps—in the 1950s.
• His 1964 article "The Concept of the Marketing Mix" demonstrated
the ways that companies could use advertising tactics to engage their
consumers
• Borden's ideas were developed and refined over a number of years
by other key players in the industry.
• E. Jerome McCarthy, a marketing professor at Michigan State
University, refined the concepts in Borden's article and named them
the "four Ps" of marketing.
• McCarthy co-wrote the book Basic Marketing: A Managerial
Approach, further popularizing the idea.
 What factors determine the marketing mix ?
• Internal Factors
• It includes the factors which lie within the organization or is concerned with
the inner atmosphere of the firm. The internal factors are primarily :
1. Nature of products
2. Product stages in its overall life cycle
3. Availability of funds
4. Company objectives
• External Factors
• External Factors concerned with the factors outside the organization. They
include the following aspects :
1. Degree of competition
2. Efficiency of channel
3. The buying behavior of a consumer
4. Control from the government side
 These Are the 4 Ps of Marketing
• 1. Product
• Creating a marketing campaign starts with an understanding of the
product itself.
• Who needs it, and why? What does it do that no competitor's product
can do? Perhaps it's a new thing altogether and is so compelling in its
design or function that consumers will have to have it when they see
it.
• The job of the marketer is to define the product and its qualities and
introduce it to the consumer.
• Defining the product also is key to its distribution.
• Marketers need to understand the life cycle of a product, and business
executives need to have a plan for dealing with products at every stage
of the life cycle.
• 2. Price
• Price is the amount that consumers will be willing to pay for a
product.
• Marketers must link the price to the product's real and perceived
value, while also considering supply costs, seasonal discounts,
competitors' prices, and retail markup.
• In some cases, business decision-makers may raise the price of a
product to give it the appearance of luxury or exclusivity.
• Or, they may lower the price so more consumers will try it.
• Marketers also need to determine when and if discounting is
appropriate.
• A discount can draw in more customers, but it can also give the
impression that the product is less desirable than it was.
• 3. Place
• Place is the consideration of where the product should be available—
in brick-and-mortar stores and online—and how it will be displayed.
• The decision is key:
• The makers of a luxury cosmetic product would want to be displayed
in Sephora and Neiman Marcus, not in Walmart or Family Dollar.
• The goal of business executives is always to get their products in front
of the consumers who are the most likely to buy them.
• That means placing a product only in certain stores and getting it
displayed to the best advantage.
• The term placement also refers to advertising the product in the right
media to get the attention of target consumers.
• 4. Promotion
• The goal of promotion is to communicate to consumers that they
need this product and that it is priced appropriately.
• Promotion encompasses advertising, public relations, and the
overall media strategy for introducing a product.
• Marketers tend to tie together promotion and placement
elements to reach their core audiences.
• For example, In the digital age, the "place" and "promotion"
factors are as much online as offline.
• Specifically, where a product appears on a company's web page
or social media, as well as which types of search functions will
trigger targeted ads for the product.
 How to Use the 4Ps of Marketing

• 1. Align your product to serve specific customer needs

• 2. Find out where your target audience hangs out/shops
• 3. Determine a price for your product
• 4. Determine your messaging and channels
1. In this step, you determine the messages you’ll use to
communicate the benefits of your product to your potential
customers.
2. You also need to determine which marketing and distribution
channels you’ll use to reach your ideal customers.
3. For example, you might choose to use a combination of Facebook
advertising and working with affiliates.
• 5. Check all the pieces fit together
• The beauty of online advertising is it allows you to relatively cheaply
test your messaging with your target audience before you fully launch
and commit to a large advertising spend.
• Testing in this way can help you answer some important questions:
1. Is the price right?
2. Do customers want your product?
3. Have you selected the best channels?
4. Is your audience engaging with your ads and messaging?
5. This step is still important if you don’t plan to advertise online.
6. Review your 4Ps of Marketing to check that all the pieces fit together
and are pulling in the same direction.
• 6. Revisit your marketing mix over time
 Pros and Cons
• Advantages
1. It helps you to understand what your product can offer to your customers.
2. It provides a way to build a complete marketing plan that begins with focusing
on aligning your product to your customer’s desires.
3. It allows you to see the critical components of even the most complex marketing
plans on a single page.
• Disadvantages
1. It provides no mechanism to measure the success of your marketing efforts.
2. Price is fundamental to the model, but brand building isn’t.
3. This focus on price rather than brand can be corrosive to your ultimate
profitability.
4. The model is high-level and doesn’t go into detail.
5. While the model can help you put together a marketing plan, the quality of your
marketing plan will be determined by the quality of the people who put your
marketing plan together.
 When Did the 4 Ps Become the 7 Ps?

• The focus on the four Ps—product, price, place, and promotion—has

been a core tenet of marketing since the 1950s.
• Three newer Ps expand the marketing mix for the 21st century.
• People places the focus on the personalities who represent the
product. In the current era, that means not only sales and customer
service employees but social media influencers and viral media
campaigns.
• Process is logistics. Consumers increasingly demand fast and
efficient delivery of the things they want, when they want them.
• Physical evidence is perhaps the most thoroughly modern of the
seven Ps. If you're selling diamond jewelry on a website, it must be
immediately clear to the consumer that you are a legitimate
established business that will deliver as promised.
 What is Marketing Concept?

• Marketing concept is a set of strategies that the firms adopt where they
analyse the needs of their customers and implement strategies to fulfil
those needs which will result in an increase in sales, profit maximisation and
also beat the existing competition.
• The marketing concept has been widely used by companies all over the
world in the present age, but the situation was not the same earlier.
• As per this concept, it is said that for an organisation to satisfy the
objectives of the organisation, the needs and wants of the customer should
be satisfied.
• This theory was first mentioned in Adam Smith’s book “The Wealth of
Nations” in 1776 but came into widespread use only 200 years later.
• Therefore, marketing can be said as a process of acquiring customers and
maintaining relations with them and at the same time matching needs and
wants with the services or product offered by the organisation, which
ensures that the organisation will become profitable.
 Types of Marketing Concept

• Five types of marketing concepts are as follows:

• 1. Production Concept
• 2. Product Concept
• 3. Selling concept
• 4. Marketing concept
• 5. Societal marketing concet
• Production Concept
• This concept was based on the assumption that customers are primarily
interested in products which are accessible and affordable.
• This concept was introduced at a time when business was focused mainly on
production.
• It says that a business will be able to lower costs by producing more quantity or
mass production of goods.
• Solely focusing on producing goods may lead to the firm deviating from its
objective.
• Product Concept
• The product concept is based on the assumption that customers will be more
inclined towards products that are offering more quality, innovative features and
top-level performance.
• In this type of marketing concept, a business focuses on creating high-quality
products and refining it every time in order to develop a better and improved
• Selling Concept
• While the previous two concepts focused on production, the selling concept is focused
on selling.
• It believes that customers will be buying products only when the product is aggressively
marketed by the company.
• It does not focus on building relationships with customers, and ensuring customer
satisfaction is also not deemed necessary.
• Marketing Concept
• A marketing concept places the centre of focus on the customer.
• All the activities that are undertaken by an organisation are done keeping the customer in
mind.
• The organisations are more concerned about creating value propositions for the
customers, which will differentiate them from the competition.
• Societal Marketing Concept
• This is the fifth and most advanced form of the marketing concept. Here the focus is on
needs and wants of the customer as well as ensuring the safety of the customer and
society first.
• It believes in giving back to society and making the world a better place for all human
 Future Marketing Concepts
• Paradigm One: Product Marketing
• Paradigm Two: Emotional Marketing
• Paradigm Three: Data-Driven Marketing
• Paradigm Four: Digital & Social Marketing