Chapter 1

MARKETING IN A CHANGING
WORLD
MARKETING
MANGEMENT

Dr.K.Sathayanarayan
 Course Objective
• Developing Passion for Marketing
• Understanding Marketing and its Impact on
EveryDay Life
• Enquiring the brands and its impact on Marketing.
• Analysing the Market and its relationship with
overall performance of the companies
• Understanding and Learning to develop strategies
to maintain successful brands for Indian Market.
MARKETING IN A CHANGING
WORLD
 Marketing Defined

• 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.
 Core Marketing concepts
•Need, wants, and demands
•Products and services
•Value, Satisfaction, and Quality
•Exchanges, Transactions and relationships
•Markets
 NEEDS
• A state of felt deprivation.
WANTS
• The form taken by as shaped by culture and individual
personality.
DEMANDS
• Human wants that are backed by buying powers.
 PRODUCT
Anything that can be offered to a market for attention,
acquisition, use, or consumption that might satisfy a want
or need. It includes physical objects, services, persons,
places, organization, and ideas.
SERVICES
Any activity or benefit that one party can offer to another
that is essentially intangible and does not result in the
ownership of anything.
 Customer value
The difference between the valued the customer gains
from owning and using a product and the costs of obtaining
the product.
Satisfaction
The extent to which a product’s perceived
performance matches a buyer’s expectations.
Total quality management
Programs designed to constantly improve the
quality of products, services, and marketing processes.
 Exchange
The act of obtaining a desired object from someone by offering
something in return.
Transaction
A trade between two parties that involves, at least two things of value,
agreed upon conditions, a time of agreement and a place of
agreement.
Relationship
The process of creating, maintaining, and enhancing strong, value-laden
relationship with customers and other stakeholders.
Market
The set of all actual and potential buyers and of a
product or services.
Main actors and forces in a
modern marketing system
 Marketing Management
The analysis, planning, implementation, and control of
programs designed to create, build, and maintain beneficial
exchanges with target buyers for the purpose of achieving
organizational objectives.
 De marketing
Marketing to reduce demand temporarily or permanently-
the aim is not to destroy demand but only to reduce or shift
it.
 Marketing Management Philosophies

•The Production Concept

•The Product Concept
•The Selling Concept
•The Marketing Concept
The production concept
The philosophy that consumer will favor products that are
available and highly affordable and that management
should therefore focus on improving production and
distribution efficiency.
The product concept
The idea that consumers will favor products that offer the
most quality, performance, and features and that the
organization should therefore devote its energy to making
continuous product improvements.
The 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.
The Marketing concepts
The marketing management philosophy that holds that
achieving organizational goals depends on determining the
needs and wants of target markets and delivering the
desired satisfactions more effectively and efficiently than
competitors do.
 The societal marketing concept

The ideas that the organization should determine the

needs, wants, and interests of target markets and deliver
the desired satisfaction more effectively and efficiently than
do competitors in a way that maintains or improves the
consumer’s and society’s well-being.
Three considerations underlying
the societal marketing concept
 Marketing Defined

Marketing

 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.
 Core Marketing concepts
• Need, wants, and demands
• Products and services
• Value, Satisfaction, and Quality
• Exchanges, Transactions and
relationships
• Markets
 NEEDS
 A state of felt deprivation.

WANTS
 The form taken by as shaped by culture and individual
personality.

DEMANDS
 Human wants that are backed by buying powers.
 PRODUCT

Anything that can be offered to a market for

attention, acquisition, use, or consumption that might
satisfy a want or need. It includes physical objects,
services, persons, places, organization, and ideas.

SERVICES
Any activity or benefit that one party can offer to
another that is essentially intangible and does not result
in the ownership of anything.
 Customer value
The difference between the valued the customer gains
from owning and using a product and the costs of obtaining
the product.

Satisfaction
The extent to which a product’s perceived performance
matches a buyer’s expectations.

Total quality management

Programs designed to constantly improve the quality of
products, services, and marketing processes.
 Exchange

The act of obtaining a desired object from someone by offering

something in return.
Transaction
A trade between two parties that involves, at least two things of
value, agreed upon conditions, a time of agreement and a place of
agreement.
Relationship
The process of creating, maintaining, and enhancing strong,
value-laden relationship with customers and other stakeholders.
• Market

The set of all actual and potential buyers and of a

product or services.
 Main actors and forces in a
modern marketing system

Company
(Marketer)

Suppliers End-user
Marketing
market
intermediaries
Competitors

Environment
 Marketing Management
The analysis, planning, implementation, and control
of programs designed to create, build, and maintain
beneficial exchanges with target buyers for the purpose of
achieving organizational objectives.
 De marketing
Marketing to reduce demand temporarily or permanently-
the aim is not to destroy demand but only to reduce or
shift it.
 Marketing Management
Philosophies
• The Production Concept
• The Product Concept
• The Selling Concept
• The Marketing Concept
The production concept
The philosophy that consumer will favor products
that are available and highly affordable and that
management should therefore focus on improving
production and distribution efficiency.

The product concept

The idea that consumers will favor products that
offer the most quality, performance, and features and
that the organization should therefore devote its energy
to making continuous product improvements.
The 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.

Starting Focus Means Ends

Point

Factory Existing Selling Profits through

Products and Sales Volume
Promoting
The Marketing concepts
The marketing management philosophy that holds
that achieving organizational goals depends on
determining the needs and wants of target markets and
delivering the desired satisfactions more effectively and
efficiently than competitors do.

Starting Focus Means Ends

Point

Market Customer Integrated Profits through

Needs Marketing Customer
Satisfaction
 The societal marketing concept

The ides that the organization should determine the

needs, wants, and interests of target markets and deliver
the desired satisfaction more effectively and efficiently than
do competitors in a way that maintains or improves the
consumer’s and society’s well-being.
Three considerations underlying
the societal marketing concept
Society
(Human
welfare)

Societal
Marketing
concept

Consumers Company
(Want (Profits)
satisfaction)