SlideShare a Scribd company logo
1 of 46
MARKETING MANAGEMENT
         12MBA24



           By:
K. Lakshmi Narayana Reddy
           MBA, M.Phil, PGDFM, (Ph.D)
INTRODUCTION
           TO
  Marketing Management

           By:
K. Lakshmi Narayana Reddy
           MBA, M.Phil, PGDFM, (Ph.D)
MARKETING MANAGEMENT




        Module-1
        Module-1
  Introduction To Marketing
Content
Content
s:
s:
MODULE 1
• Introduction: Nature and scope of
  marketing,      Evolution,     Various
  marketing orientations, Marketing Vs
  Selling concepts, Consumer need,
  Want and demand concepts,
• Marketing Environment – Assessing
  the impact of micro and macro
  environment.
• Marketing challenges in the globalized
  economic scenario.
What is Marketing?
What is Marketing?

• Process by which individuals and
  groups obtain what they need and want
  through creating and exchanging
  products and value with others.

• More simply: Marketing is the delivery
  of customer satisfaction at a profit.
•   Is the art and science of choosing target
  market and building profitable relationship
  with them this involves getting keeping, and
  growing customers through creating
  delivery and communicating superior
  customers, value marketing management is
  customer     management       and   demand
  management.
• Social definition
     A societal process by which individuals
  and groups obtain what they need and want
  through creating, offering and freely
  exchanging products and services of value
  with others.
Marketing Definition Cont….
 Marketing Definition Cont….
• Management definition
   It is the process of planning and executing
  the conception, pricing, promotion and
  distribution of ideas, goods and services to
  create exchanges that satisfy individual and
  organizational goals.
• Marketing management can be described
  as carrying out the tasks that achieve
  desired       exchanges,     between     the
  corporation, and its customers.
Understanding of some
Understanding of some
Terms
Terms
 • Market
 • Marketing
 • Selling
 • Customers
 • Marketing Management
 • Satisfaction
Nature and scope of
 Nature and scope of
•Marketing
 Marketing
 It is  managing profitable                 Customer
    Relationships.
•   Building CRM is based on customer value &
    Satisfaction.
•   The main goal is to attract new customers by
    promising & offering superior value & retain by
    delivering satisfaction.
•   Marketing playing important role in both Profit &
    Non Profit Making organizations.
•   Marketing deals with customers more than any
    other business functions.
•   Marketing is all about offering products, services
    & achieve full satisfaction.
EVALUTION OF MARKETING
Era            Prevailing attitude and approach
Production     • Consumers favor products that are available and
               highly affordable
               • Improve production and distribution
               • Availability and affordability is what the
                  customer wants’


PRODUCT        • Consumers favor products that offer the most
                  quality, performance and innovative features
               • ‘A good product will sell itself’
SALES          Only sales concept.

MARKETING      Focus on needs, wants etc,, Customer is a king.

RELATIONSHIP   CRM
MARKETING
Core Marketing
Core Marketing
Concepts
Concepts
                                                                 Offerings


                                            Products
               Needs, wants,                    and
               and demands                  Services

                             Core
                             Core
                           Marketing
                           Marketing
                           Concepts
                           Concepts
     Markets
                                          Value, satisfaction,
                                              and quality

                      Exchange, transactions,
                         and relationships
What Motivates a Consumer
 What Motivates a Consumer
to Take Action?
 to Take Action?
• Needs - state of felt deprivation for basic items such as
  food and clothing and complex needs such as for
  belonging. i.e. I am thirsty.
 Needs are basic human requirements
• Wants - form that a human need takes as shaped by
  culture and individual personality. i.e. I want a Coca-
  Cola. Wants are needs directed to specific objects/services
 that might satisfy the need
 Demands - human wants backed by buying power. i.e.
 I have money to buy a Coca-Cola.
  This is the wants for specific products backed by an ability to
 pay.
What Will Satisfy Consumer’s
What Will Satisfy Consumer’s
Needs and Wants?
Needs and Wants?

• Products - anything • Services - activities or
  that can be offered to     benefits offered for
  a market for attention,    sale       that      are
  acquisition, use or        essentially intangible
  consumption and that       and don’t result in the
  might satisfy a need or    ownership of anything.
  want.                    • Examples:       banking,
• Examples:       persons,   airlines, haircuts, and
  places, organizations,     hotels.
  activities, and ideas.
How Do Consumers Choose
How Do Consumers Choose
Choose Among Products and
Choose Among Products and

•Services? Value - benefit that the customer
 Services?
  Customer
  gains from owning and using a product
  compared to the cost of obtaining the product.

• Customer Satisfaction - depends on the
  product’s perceived performance in delivering
  value relative to a buyer’s expectations. Linked
  to Quality and Total Quality Management
  (TQM).
How do Consumers
 How do Consumers
 Obtain
 Obtain
 Products and Services?
 Products and Services?
• Exchanges - act of obtaining a desired object
  from someone by offering something in return.

• Transactions - trade of values between parties.
  Usually involves money and a response.

• Relationships - building long-term relationships
  with consumers, distributors, dealers, and
  suppliers.
VARIOUS MARKETING ORIENTATIONS /
          PHILOSOPHIES



                                   Marketing
                         Selling               Societal
  Product   Production                          Mktg
Marketing Management
Marketing Management
Philosophies
Philosophies
                             • Consumers favor products that are
  Production Concept
  Production Concept            available and highly affordable
                             •Improve production and distribution

                             •Consumers favor products that offer
   Product Concept
   Product Concept             the most quality, performance, and
                               innovative features

                             •Consumers will buy products only if
    Selling Concept
    Selling Concept            the company promotes/ sells these
                               product

                             •Focuses on needs/ wants of target
   Marketing Concept
   Marketing Concept            markets & delivering satisfaction
                                better than competitors

                             •Focuses on needs/ wants of target
Societal Marketing Concept     markets & delivering superior value
Societal Marketing Concept   •Society’s well-being
Marketing & Sales Differences
Marketing & Sales Differences
  SELLING                           MARKETING
  1. Starts with seller &           1. Starts with buyers &
     concerned with sellers            Concerned with buyer
     needs.                            needs.
  2. Core of business activity is   2. Core of business activity is
     seller.                           Buyer.
  3. Converts products into         3. Converts needs into
     Money.                            products.
  4. It’s a products-Producing      4. Its customer satisfying
     Process.                          process.
  5. Marketing Mix planned as       5. Customer dictates the plan
     per seller Needs.                 of MM.
  6. Cost determines price.         6. Market determines price.
  7. Selling & Promoting.           7. Integrating Marketing.
  8. Production is the central      8. Marketing is the central
     function of business.             function of business.
  9. Customer is the last link in   9. Customer is the primary
     business.                         link in business
Marketing & Sales
Marketing & Sales
Concepts
Concepts
Contrasted
Contrasted
  Starting  Focus        Means           Ends
   Point

                         Selling         Profits
            Existing
  Factory                 and           through
            Products
                       Promoting        Volume

                The Selling Concept
                The Selling Concept



                                         Profits
            Customer   Integrated
   Market                               through
             Needs     Marketing
                                      Satisfaction

               The Marketing Concept
               The Marketing Concept
Functions of
Functions of
Marketing functions
Marketing
 • A. Exchange
 1. Buying
 2. Selling


 • B. Physical distribution functions
 3. Transporting
 4. Storing

 •C. Facilitating functions
 5. Standardizing and grading
 6. Financing
 7. Risk taking
 8. Securing marketing information
Assessing Marketing
 Assessing Marketing
 Environment
 Environment
• Includes:
   – Microenvironment: Factors close to the
     company that affect its ability to serve its
     customers.
   – Macro environment: larger societal forces that
     affect the microenvironment.
      » Considered to be beyond the control of the
        organization.
Factors in the
Factors in the
Microenvironment
Microenvironment
The Company’s
The Company’s
Microenvironment
Microenvironment

 • Suppliers:
   – Provide resources
     needed to produce
     goods and services.
   – Important link in the
     “value delivery
     system.”
   – Most marketers treat
     suppliers like
     partners.
The Company’s
The Company’s
Microenvironment
Microenvironment
• Marketing Intermediaries:
   – Help the company to promote, sell, and distribute
     its goods to final buyers
      » Resellers
      » Physical distribution firms
      » Marketing services agencies
      » Financial intermediaries
Partnering With
Partnering With
Intermediaries
Intermediaries
5 Types of
5 Types of
Customers
Customers
 •   Consumer markets
 •   Business markets (B to B)
 •   Reseller markets
 •   Government markets
 •   International markets
Competitor
Competitor
s
s
• Must         understand
  competitor’s strengths
• Must differentiate firm’s
  products and offerings
  from       those       of
  competitors
• Competitive strategies
  should        emphasize
  firm’s        distinctive
  competitive advantage
  in marketplace
Types of
Types of
Publics
Publics
The Macro
       The Macro
      environment
      environment
• The company and all of the other actors operate in a larger
  macro environment of forces that shape opportunities and
  pose threats to the company.
The Company’s Macro
The Company’s Macro
environment
environment
Economic
       Economic
       Environment
       Environment
       Consists of factors that affect consumer
      purchasing power and spending patterns.

• Changes in Income          • Income Distribution
Global Economic
 Global Economic
  Development
   Development



                        Key
                         Key
Changes in Income
Changes in Income     Economic
                      Economic
                     Concerns for
                     Concerns for
                      Marketers
                      Marketers

Changing Consumer
Changing Consumer
 Spending Patterns
 Spending Patterns
Natural
           Natural
         Environment
         Environment
• Involves the natural resources
  that are needed as inputs by
  marketers or that are affected
  by marketing activities.
Natural
  Natural
  Environment
  Environment
Conservation
Conservation
Of Resources
Of Resources



                Factors Affecting
                Factors Affecting
 Ecotourism
 Ecotourism           the
                       the
                     Natural
                     Natural
                  Environment
                  Environment


 Recycle and
 Recycle and
Reduce Waste
Reduce Waste
Technological
Technological
 Environment
 Environment
      • Most dramatic force now
        shaping our destiny.
      • Robots and machines
      • Computerized         video
        checkout services
      • Electronic guest room
        locking systems
      • Locking fax machines
        receive     orders      at
        restaurants
      • The development of the
        Internet
Cultural
        Cultural
      Environment
      Environment

• The institutions and other
  forces that affect a
  society’s basic values,
  perceptions, preference,
  and behaviors.
Political
  Political
Environment
Environment




                              Increased
                               Increased
               Changing
               Changing     Emphasis on
                            Emphasis on
Increasing
 Increasing   Government
              Government      Ethics &
                               Ethics &
Legislation
Legislation     Agency
                Agency         Socially
                                Socially
              Enforcement
              Enforcement   Responsible
                             Responsible
                                Actions
                                Actions
New Challenges
New Challenges
             New
           M arketing
        Landscape &
         Information          Nonprofit
         Technology           Marketing

                Emerging
                 Emerging
   Ethical
  Concerns
                Challenges
                Challenges          Globalizatio
                                         n
                   Changing
                    World
                   Economy
Marketing Mix
 Marketing Mix

• It is the tools that an organization
  employs to pursue its marketing
  objectives in the target market
• Product, Price, Place, Promotion
• 4 C’s – Customer solution, Cost,
  Convenience, Communication
• Product

 –   Physical good features
 –   Quality level
 –   Accessories
 –   Packaging
 –   Warranties
 –   Product lines
 –   Branding
• Price

 –   Flexibility
 –   Price level
 –   Terms
 –   Differentiation
 –   Discounts
 –   Allowances
• Place

 –   Channel type
 –   Exposure
 –   Intermediaries
 –   Outlet locations
 –   Transportation
 –   Storage
 –   Managing Channels
• Promotion

 – Promotion blend
 – Salespeople
   » Number, selection, training, incentives
 – Advertising

   » Targets, media types, types of ads, copy
     thrust
 – Sales promotion
 – Publicity
Who Purchases Products
Who Purchases Products
and Services?
and Services?

                         Actual
                         Actual
    Market -- buyers
     Market buyers       Buyers
      who share a        Buyers
      who share a
    particular need
     particular need
    or want that can
     or want that can
    be satisfied by a
    be satisfied by a
  company’s products
  company’s products     Potential
                         Potential
      or services.
       or services.       Buyers
                          Buyers
Marketing
Marketing
Management
Management
             Marketing Management
     Implementing programs to create exchanges
     with target buyers to achieve organizational
                         goals


               Demand Management
          Finding and increasing demand, also
             changing or reducing demand



        Profitable Customer Relationships
             Attracting new customers and
              retaining current customers
THANK YOU

More Related Content

What's hot

Marketing.chap01ppt
Marketing.chap01pptMarketing.chap01ppt
Marketing.chap01pptArooska
 
Introduction to marketing and marketing concepts
Introduction to marketing and marketing conceptsIntroduction to marketing and marketing concepts
Introduction to marketing and marketing conceptsRishabh Maity
 
Understanding marketing management 01
Understanding marketing management   01Understanding marketing management   01
Understanding marketing management 01skillfulyards
 
309545719 bsbmkg501-presentation-1
309545719 bsbmkg501-presentation-1309545719 bsbmkg501-presentation-1
309545719 bsbmkg501-presentation-1Jatins Anand
 
Guide 3 marketing concepts ppt
Guide 3  marketing concepts pptGuide 3  marketing concepts ppt
Guide 3 marketing concepts pptjominjohn
 
Marketing concepts
Marketing conceptsMarketing concepts
Marketing conceptstushar soni
 
Marketing concepts
Marketing conceptsMarketing concepts
Marketing conceptsSujan Oli
 
01 principles of marketing - introduction
01   principles of marketing - introduction01   principles of marketing - introduction
01 principles of marketing - introductionthe bank of khyber
 
Marketing management book @ bec doms bagalkot mba
Marketing management book @ bec doms bagalkot mbaMarketing management book @ bec doms bagalkot mba
Marketing management book @ bec doms bagalkot mbaBabasab Patil
 
Bus169 Kotler Chapter 07
Bus169 Kotler Chapter 07Bus169 Kotler Chapter 07
Bus169 Kotler Chapter 07Alwyn Lau
 
Marketing Quiz By M C Rashid Khan
Marketing Quiz By M C Rashid KhanMarketing Quiz By M C Rashid Khan
Marketing Quiz By M C Rashid Khanguestd8b6bc
 
Marketing Management
Marketing ManagementMarketing Management
Marketing ManagementNeşe Ciddi
 
Chapter 8 product, service, and brands (building customer value)
Chapter 8   product, service, and brands (building customer value)Chapter 8   product, service, and brands (building customer value)
Chapter 8 product, service, and brands (building customer value)Lance Üü
 
Marketing management book @ bec doms bagalkot mba
Marketing management book @ bec doms bagalkot mbaMarketing management book @ bec doms bagalkot mba
Marketing management book @ bec doms bagalkot mbaBabasab Patil
 
Unit 1(marketing in the changing world)
Unit 1(marketing in the changing world)Unit 1(marketing in the changing world)
Unit 1(marketing in the changing world)Bikash Neupane
 
Marketing : Concepts and Fundamentals
Marketing : Concepts and FundamentalsMarketing : Concepts and Fundamentals
Marketing : Concepts and Fundamentalsparag vyas
 

What's hot (20)

Basic concepts of marketing
Basic concepts of marketingBasic concepts of marketing
Basic concepts of marketing
 
Marketing.chap01ppt
Marketing.chap01pptMarketing.chap01ppt
Marketing.chap01ppt
 
Introduction to Marketing
Introduction to Marketing Introduction to Marketing
Introduction to Marketing
 
Introduction to marketing and marketing concepts
Introduction to marketing and marketing conceptsIntroduction to marketing and marketing concepts
Introduction to marketing and marketing concepts
 
Understanding marketing management 01
Understanding marketing management   01Understanding marketing management   01
Understanding marketing management 01
 
309545719 bsbmkg501-presentation-1
309545719 bsbmkg501-presentation-1309545719 bsbmkg501-presentation-1
309545719 bsbmkg501-presentation-1
 
Guide 3 marketing concepts ppt
Guide 3  marketing concepts pptGuide 3  marketing concepts ppt
Guide 3 marketing concepts ppt
 
Marketing concepts
Marketing conceptsMarketing concepts
Marketing concepts
 
Marketing concepts
Marketing conceptsMarketing concepts
Marketing concepts
 
01 principles of marketing - introduction
01   principles of marketing - introduction01   principles of marketing - introduction
01 principles of marketing - introduction
 
The Marketing concepts
The Marketing conceptsThe Marketing concepts
The Marketing concepts
 
Marketing management book @ bec doms bagalkot mba
Marketing management book @ bec doms bagalkot mbaMarketing management book @ bec doms bagalkot mba
Marketing management book @ bec doms bagalkot mba
 
Introduction to marketing
Introduction to marketingIntroduction to marketing
Introduction to marketing
 
Bus169 Kotler Chapter 07
Bus169 Kotler Chapter 07Bus169 Kotler Chapter 07
Bus169 Kotler Chapter 07
 
Marketing Quiz By M C Rashid Khan
Marketing Quiz By M C Rashid KhanMarketing Quiz By M C Rashid Khan
Marketing Quiz By M C Rashid Khan
 
Marketing Management
Marketing ManagementMarketing Management
Marketing Management
 
Chapter 8 product, service, and brands (building customer value)
Chapter 8   product, service, and brands (building customer value)Chapter 8   product, service, and brands (building customer value)
Chapter 8 product, service, and brands (building customer value)
 
Marketing management book @ bec doms bagalkot mba
Marketing management book @ bec doms bagalkot mbaMarketing management book @ bec doms bagalkot mba
Marketing management book @ bec doms bagalkot mba
 
Unit 1(marketing in the changing world)
Unit 1(marketing in the changing world)Unit 1(marketing in the changing world)
Unit 1(marketing in the changing world)
 
Marketing : Concepts and Fundamentals
Marketing : Concepts and FundamentalsMarketing : Concepts and Fundamentals
Marketing : Concepts and Fundamentals
 

Similar to VTU MM Module-1

Marketing module_1.pdf
Marketing module_1.pdfMarketing module_1.pdf
Marketing module_1.pdfShaik724049
 
NATURE AND SCOPE OF MARKETING
NATURE AND SCOPE OF MARKETINGNATURE AND SCOPE OF MARKETING
NATURE AND SCOPE OF MARKETINGSaumya Kumar
 
Chapter 1 DEFINING MARKETING FOR THE 21st CENTURY
Chapter 1  DEFINING MARKETING FOR THE 21st CENTURYChapter 1  DEFINING MARKETING FOR THE 21st CENTURY
Chapter 1 DEFINING MARKETING FOR THE 21st CENTURYNishant Agrawal
 
Presentation principles of marketing presentation
Presentation principles of marketing presentationPresentation principles of marketing presentation
Presentation principles of marketing presentationUniversity of Dhaka
 
INTRODUCTION OF MARKETING
INTRODUCTION OF  MARKETINGINTRODUCTION OF  MARKETING
INTRODUCTION OF MARKETINGfaizpis
 
Introduction to marketing- needs, wants and demads, production conceptt
Introduction to marketing- needs, wants and demads, production concepttIntroduction to marketing- needs, wants and demads, production conceptt
Introduction to marketing- needs, wants and demads, production concepttAmit Vohra
 
mba ist year course Marketing managemet.pptx
mba ist year course Marketing managemet.pptxmba ist year course Marketing managemet.pptx
mba ist year course Marketing managemet.pptxmbadepartment5
 
Marketing Management - Introduction
Marketing Management - IntroductionMarketing Management - Introduction
Marketing Management - IntroductionProf B N Sharma
 
Marketing concepts
Marketing conceptsMarketing concepts
Marketing conceptsRobin Gulati
 
Ppt1 converted
Ppt1 convertedPpt1 converted
Ppt1 convertedgr8ajay
 
Marketing Management
 Marketing  Management  Marketing  Management
Marketing Management SomRai5
 
Managing profitable customer relationships
Managing profitable customer relationshipsManaging profitable customer relationships
Managing profitable customer relationshipsUmair Aslam
 
MODULE 1 Marketing management subject ppt
MODULE 1 Marketing management subject pptMODULE 1 Marketing management subject ppt
MODULE 1 Marketing management subject pptprasannamurthy6
 
Marketing mix the 7 p's of marketing
Marketing mix  the 7 p's of marketingMarketing mix  the 7 p's of marketing
Marketing mix the 7 p's of marketingEli Santos
 
Enu consumer behaviour 260812
Enu consumer behaviour 260812Enu consumer behaviour 260812
Enu consumer behaviour 260812Stephen Ong
 

Similar to VTU MM Module-1 (20)

Marketing module_1.pdf
Marketing module_1.pdfMarketing module_1.pdf
Marketing module_1.pdf
 
NATURE AND SCOPE OF MARKETING
NATURE AND SCOPE OF MARKETINGNATURE AND SCOPE OF MARKETING
NATURE AND SCOPE OF MARKETING
 
Chapter 1 DEFINING MARKETING FOR THE 21st CENTURY
Chapter 1  DEFINING MARKETING FOR THE 21st CENTURYChapter 1  DEFINING MARKETING FOR THE 21st CENTURY
Chapter 1 DEFINING MARKETING FOR THE 21st CENTURY
 
Marketing management
Marketing managementMarketing management
Marketing management
 
Presentation principles of marketing presentation
Presentation principles of marketing presentationPresentation principles of marketing presentation
Presentation principles of marketing presentation
 
INTRODUCTION OF MARKETING
INTRODUCTION OF  MARKETINGINTRODUCTION OF  MARKETING
INTRODUCTION OF MARKETING
 
Introduction to marketing- needs, wants and demads, production conceptt
Introduction to marketing- needs, wants and demads, production concepttIntroduction to marketing- needs, wants and demads, production conceptt
Introduction to marketing- needs, wants and demads, production conceptt
 
mba ist year course Marketing managemet.pptx
mba ist year course Marketing managemet.pptxmba ist year course Marketing managemet.pptx
mba ist year course Marketing managemet.pptx
 
chapter-1.pdf
chapter-1.pdfchapter-1.pdf
chapter-1.pdf
 
Marketing management
Marketing managementMarketing management
Marketing management
 
Marketing Management - Introduction
Marketing Management - IntroductionMarketing Management - Introduction
Marketing Management - Introduction
 
Marketing concepts
Marketing conceptsMarketing concepts
Marketing concepts
 
Consumer Behavior
Consumer BehaviorConsumer Behavior
Consumer Behavior
 
Ppt1 converted
Ppt1 convertedPpt1 converted
Ppt1 converted
 
Marketing Management
 Marketing  Management  Marketing  Management
Marketing Management
 
Managing profitable customer relationships
Managing profitable customer relationshipsManaging profitable customer relationships
Managing profitable customer relationships
 
MODULE 1 Marketing management subject ppt
MODULE 1 Marketing management subject pptMODULE 1 Marketing management subject ppt
MODULE 1 Marketing management subject ppt
 
Marketing
MarketingMarketing
Marketing
 
Marketing mix the 7 p's of marketing
Marketing mix  the 7 p's of marketingMarketing mix  the 7 p's of marketing
Marketing mix the 7 p's of marketing
 
Enu consumer behaviour 260812
Enu consumer behaviour 260812Enu consumer behaviour 260812
Enu consumer behaviour 260812
 

Recently uploaded

Q4-PPT-Music9_Lesson-1-Romantic-Opera.pptx
Q4-PPT-Music9_Lesson-1-Romantic-Opera.pptxQ4-PPT-Music9_Lesson-1-Romantic-Opera.pptx
Q4-PPT-Music9_Lesson-1-Romantic-Opera.pptxlancelewisportillo
 
Indexing Structures in Database Management system.pdf
Indexing Structures in Database Management system.pdfIndexing Structures in Database Management system.pdf
Indexing Structures in Database Management system.pdfChristalin Nelson
 
4.11.24 Mass Incarceration and the New Jim Crow.pptx
4.11.24 Mass Incarceration and the New Jim Crow.pptx4.11.24 Mass Incarceration and the New Jim Crow.pptx
4.11.24 Mass Incarceration and the New Jim Crow.pptxmary850239
 
Active Learning Strategies (in short ALS).pdf
Active Learning Strategies (in short ALS).pdfActive Learning Strategies (in short ALS).pdf
Active Learning Strategies (in short ALS).pdfPatidar M
 
Concurrency Control in Database Management system
Concurrency Control in Database Management systemConcurrency Control in Database Management system
Concurrency Control in Database Management systemChristalin Nelson
 
Q-Factor General Quiz-7th April 2024, Quiz Club NITW
Q-Factor General Quiz-7th April 2024, Quiz Club NITWQ-Factor General Quiz-7th April 2024, Quiz Club NITW
Q-Factor General Quiz-7th April 2024, Quiz Club NITWQuiz Club NITW
 
Oppenheimer Film Discussion for Philosophy and Film
Oppenheimer Film Discussion for Philosophy and FilmOppenheimer Film Discussion for Philosophy and Film
Oppenheimer Film Discussion for Philosophy and FilmStan Meyer
 
Expanded definition: technical and operational
Expanded definition: technical and operationalExpanded definition: technical and operational
Expanded definition: technical and operationalssuser3e220a
 
Scientific Writing :Research Discourse
Scientific  Writing :Research  DiscourseScientific  Writing :Research  Discourse
Scientific Writing :Research DiscourseAnita GoswamiGiri
 
How to Manage Buy 3 Get 1 Free in Odoo 17
How to Manage Buy 3 Get 1 Free in Odoo 17How to Manage Buy 3 Get 1 Free in Odoo 17
How to Manage Buy 3 Get 1 Free in Odoo 17Celine George
 
4.9.24 School Desegregation in Boston.pptx
4.9.24 School Desegregation in Boston.pptx4.9.24 School Desegregation in Boston.pptx
4.9.24 School Desegregation in Boston.pptxmary850239
 
How to Fix XML SyntaxError in Odoo the 17
How to Fix XML SyntaxError in Odoo the 17How to Fix XML SyntaxError in Odoo the 17
How to Fix XML SyntaxError in Odoo the 17Celine George
 
Transaction Management in Database Management System
Transaction Management in Database Management SystemTransaction Management in Database Management System
Transaction Management in Database Management SystemChristalin Nelson
 
Narcotic and Non Narcotic Analgesic..pdf
Narcotic and Non Narcotic Analgesic..pdfNarcotic and Non Narcotic Analgesic..pdf
Narcotic and Non Narcotic Analgesic..pdfPrerana Jadhav
 
Sulphonamides, mechanisms and their uses
Sulphonamides, mechanisms and their usesSulphonamides, mechanisms and their uses
Sulphonamides, mechanisms and their usesVijayaLaxmi84
 
Team Lead Succeed – Helping you and your team achieve high-performance teamwo...
Team Lead Succeed – Helping you and your team achieve high-performance teamwo...Team Lead Succeed – Helping you and your team achieve high-performance teamwo...
Team Lead Succeed – Helping you and your team achieve high-performance teamwo...Association for Project Management
 
ARTERIAL BLOOD GAS ANALYSIS........pptx
ARTERIAL BLOOD  GAS ANALYSIS........pptxARTERIAL BLOOD  GAS ANALYSIS........pptx
ARTERIAL BLOOD GAS ANALYSIS........pptxAneriPatwari
 
CLASSIFICATION OF ANTI - CANCER DRUGS.pptx
CLASSIFICATION OF ANTI - CANCER DRUGS.pptxCLASSIFICATION OF ANTI - CANCER DRUGS.pptx
CLASSIFICATION OF ANTI - CANCER DRUGS.pptxAnupam32727
 
Q-Factor HISPOL Quiz-6th April 2024, Quiz Club NITW
Q-Factor HISPOL Quiz-6th April 2024, Quiz Club NITWQ-Factor HISPOL Quiz-6th April 2024, Quiz Club NITW
Q-Factor HISPOL Quiz-6th April 2024, Quiz Club NITWQuiz Club NITW
 

Recently uploaded (20)

Q4-PPT-Music9_Lesson-1-Romantic-Opera.pptx
Q4-PPT-Music9_Lesson-1-Romantic-Opera.pptxQ4-PPT-Music9_Lesson-1-Romantic-Opera.pptx
Q4-PPT-Music9_Lesson-1-Romantic-Opera.pptx
 
Indexing Structures in Database Management system.pdf
Indexing Structures in Database Management system.pdfIndexing Structures in Database Management system.pdf
Indexing Structures in Database Management system.pdf
 
4.11.24 Mass Incarceration and the New Jim Crow.pptx
4.11.24 Mass Incarceration and the New Jim Crow.pptx4.11.24 Mass Incarceration and the New Jim Crow.pptx
4.11.24 Mass Incarceration and the New Jim Crow.pptx
 
Active Learning Strategies (in short ALS).pdf
Active Learning Strategies (in short ALS).pdfActive Learning Strategies (in short ALS).pdf
Active Learning Strategies (in short ALS).pdf
 
Concurrency Control in Database Management system
Concurrency Control in Database Management systemConcurrency Control in Database Management system
Concurrency Control in Database Management system
 
Q-Factor General Quiz-7th April 2024, Quiz Club NITW
Q-Factor General Quiz-7th April 2024, Quiz Club NITWQ-Factor General Quiz-7th April 2024, Quiz Club NITW
Q-Factor General Quiz-7th April 2024, Quiz Club NITW
 
Oppenheimer Film Discussion for Philosophy and Film
Oppenheimer Film Discussion for Philosophy and FilmOppenheimer Film Discussion for Philosophy and Film
Oppenheimer Film Discussion for Philosophy and Film
 
Expanded definition: technical and operational
Expanded definition: technical and operationalExpanded definition: technical and operational
Expanded definition: technical and operational
 
Scientific Writing :Research Discourse
Scientific  Writing :Research  DiscourseScientific  Writing :Research  Discourse
Scientific Writing :Research Discourse
 
How to Manage Buy 3 Get 1 Free in Odoo 17
How to Manage Buy 3 Get 1 Free in Odoo 17How to Manage Buy 3 Get 1 Free in Odoo 17
How to Manage Buy 3 Get 1 Free in Odoo 17
 
4.9.24 School Desegregation in Boston.pptx
4.9.24 School Desegregation in Boston.pptx4.9.24 School Desegregation in Boston.pptx
4.9.24 School Desegregation in Boston.pptx
 
How to Fix XML SyntaxError in Odoo the 17
How to Fix XML SyntaxError in Odoo the 17How to Fix XML SyntaxError in Odoo the 17
How to Fix XML SyntaxError in Odoo the 17
 
Transaction Management in Database Management System
Transaction Management in Database Management SystemTransaction Management in Database Management System
Transaction Management in Database Management System
 
Narcotic and Non Narcotic Analgesic..pdf
Narcotic and Non Narcotic Analgesic..pdfNarcotic and Non Narcotic Analgesic..pdf
Narcotic and Non Narcotic Analgesic..pdf
 
Sulphonamides, mechanisms and their uses
Sulphonamides, mechanisms and their usesSulphonamides, mechanisms and their uses
Sulphonamides, mechanisms and their uses
 
Team Lead Succeed – Helping you and your team achieve high-performance teamwo...
Team Lead Succeed – Helping you and your team achieve high-performance teamwo...Team Lead Succeed – Helping you and your team achieve high-performance teamwo...
Team Lead Succeed – Helping you and your team achieve high-performance teamwo...
 
ARTERIAL BLOOD GAS ANALYSIS........pptx
ARTERIAL BLOOD  GAS ANALYSIS........pptxARTERIAL BLOOD  GAS ANALYSIS........pptx
ARTERIAL BLOOD GAS ANALYSIS........pptx
 
CLASSIFICATION OF ANTI - CANCER DRUGS.pptx
CLASSIFICATION OF ANTI - CANCER DRUGS.pptxCLASSIFICATION OF ANTI - CANCER DRUGS.pptx
CLASSIFICATION OF ANTI - CANCER DRUGS.pptx
 
Q-Factor HISPOL Quiz-6th April 2024, Quiz Club NITW
Q-Factor HISPOL Quiz-6th April 2024, Quiz Club NITWQ-Factor HISPOL Quiz-6th April 2024, Quiz Club NITW
Q-Factor HISPOL Quiz-6th April 2024, Quiz Club NITW
 
INCLUSIVE EDUCATION PRACTICES FOR TEACHERS AND TRAINERS.pptx
INCLUSIVE EDUCATION PRACTICES FOR TEACHERS AND TRAINERS.pptxINCLUSIVE EDUCATION PRACTICES FOR TEACHERS AND TRAINERS.pptx
INCLUSIVE EDUCATION PRACTICES FOR TEACHERS AND TRAINERS.pptx
 

VTU MM Module-1

  • 1. MARKETING MANAGEMENT 12MBA24 By: K. Lakshmi Narayana Reddy MBA, M.Phil, PGDFM, (Ph.D)
  • 2. INTRODUCTION TO Marketing Management By: K. Lakshmi Narayana Reddy MBA, M.Phil, PGDFM, (Ph.D)
  • 3. MARKETING MANAGEMENT Module-1 Module-1 Introduction To Marketing
  • 4. Content Content s: s: MODULE 1 • Introduction: Nature and scope of marketing, Evolution, Various marketing orientations, Marketing Vs Selling concepts, Consumer need, Want and demand concepts, • Marketing Environment – Assessing the impact of micro and macro environment. • Marketing challenges in the globalized economic scenario.
  • 5. What is Marketing? What is Marketing? • Process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others. • More simply: Marketing is the delivery of customer satisfaction at a profit.
  • 6. Is the art and science of choosing target market and building profitable relationship with them this involves getting keeping, and growing customers through creating delivery and communicating superior customers, value marketing management is customer management and demand management. • Social definition A societal process by which individuals and groups obtain what they need and want through creating, offering and freely exchanging products and services of value with others.
  • 7. Marketing Definition Cont…. Marketing Definition Cont…. • Management definition It is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational goals. • Marketing management can be described as carrying out the tasks that achieve desired exchanges, between the corporation, and its customers.
  • 8. Understanding of some Understanding of some Terms Terms • Market • Marketing • Selling • Customers • Marketing Management • Satisfaction
  • 9. Nature and scope of Nature and scope of •Marketing Marketing It is managing profitable Customer Relationships. • Building CRM is based on customer value & Satisfaction. • The main goal is to attract new customers by promising & offering superior value & retain by delivering satisfaction. • Marketing playing important role in both Profit & Non Profit Making organizations. • Marketing deals with customers more than any other business functions. • Marketing is all about offering products, services & achieve full satisfaction.
  • 10. EVALUTION OF MARKETING Era Prevailing attitude and approach Production • Consumers favor products that are available and highly affordable • Improve production and distribution • Availability and affordability is what the customer wants’ PRODUCT • Consumers favor products that offer the most quality, performance and innovative features • ‘A good product will sell itself’ SALES Only sales concept. MARKETING Focus on needs, wants etc,, Customer is a king. RELATIONSHIP CRM MARKETING
  • 11. Core Marketing Core Marketing Concepts Concepts Offerings Products Needs, wants, and and demands Services Core Core Marketing Marketing Concepts Concepts Markets Value, satisfaction, and quality Exchange, transactions, and relationships
  • 12. What Motivates a Consumer What Motivates a Consumer to Take Action? to Take Action? • Needs - state of felt deprivation for basic items such as food and clothing and complex needs such as for belonging. i.e. I am thirsty. Needs are basic human requirements • Wants - form that a human need takes as shaped by culture and individual personality. i.e. I want a Coca- Cola. Wants are needs directed to specific objects/services that might satisfy the need Demands - human wants backed by buying power. i.e. I have money to buy a Coca-Cola. This is the wants for specific products backed by an ability to pay.
  • 13. What Will Satisfy Consumer’s What Will Satisfy Consumer’s Needs and Wants? Needs and Wants? • Products - anything • Services - activities or that can be offered to benefits offered for a market for attention, sale that are acquisition, use or essentially intangible consumption and that and don’t result in the might satisfy a need or ownership of anything. want. • Examples: banking, • Examples: persons, airlines, haircuts, and places, organizations, hotels. activities, and ideas.
  • 14. How Do Consumers Choose How Do Consumers Choose Choose Among Products and Choose Among Products and •Services? Value - benefit that the customer Services? Customer gains from owning and using a product compared to the cost of obtaining the product. • Customer Satisfaction - depends on the product’s perceived performance in delivering value relative to a buyer’s expectations. Linked to Quality and Total Quality Management (TQM).
  • 15. How do Consumers How do Consumers Obtain Obtain Products and Services? Products and Services? • Exchanges - act of obtaining a desired object from someone by offering something in return. • Transactions - trade of values between parties. Usually involves money and a response. • Relationships - building long-term relationships with consumers, distributors, dealers, and suppliers.
  • 16. VARIOUS MARKETING ORIENTATIONS / PHILOSOPHIES Marketing Selling Societal Product Production Mktg
  • 17. Marketing Management Marketing Management Philosophies Philosophies • Consumers favor products that are Production Concept Production Concept available and highly affordable •Improve production and distribution •Consumers favor products that offer Product Concept Product Concept the most quality, performance, and innovative features •Consumers will buy products only if Selling Concept Selling Concept the company promotes/ sells these product •Focuses on needs/ wants of target Marketing Concept Marketing Concept markets & delivering satisfaction better than competitors •Focuses on needs/ wants of target Societal Marketing Concept markets & delivering superior value Societal Marketing Concept •Society’s well-being
  • 18. Marketing & Sales Differences Marketing & Sales Differences SELLING MARKETING 1. Starts with seller & 1. Starts with buyers & concerned with sellers Concerned with buyer needs. needs. 2. Core of business activity is 2. Core of business activity is seller. Buyer. 3. Converts products into 3. Converts needs into Money. products. 4. It’s a products-Producing 4. Its customer satisfying Process. process. 5. Marketing Mix planned as 5. Customer dictates the plan per seller Needs. of MM. 6. Cost determines price. 6. Market determines price. 7. Selling & Promoting. 7. Integrating Marketing. 8. Production is the central 8. Marketing is the central function of business. function of business. 9. Customer is the last link in 9. Customer is the primary business. link in business
  • 19. Marketing & Sales Marketing & Sales Concepts Concepts Contrasted Contrasted Starting Focus Means Ends Point Selling Profits Existing Factory and through Products Promoting Volume The Selling Concept The Selling Concept Profits Customer Integrated Market through Needs Marketing Satisfaction The Marketing Concept The Marketing Concept
  • 20. Functions of Functions of Marketing functions Marketing • A. Exchange 1. Buying 2. Selling • B. Physical distribution functions 3. Transporting 4. Storing •C. Facilitating functions 5. Standardizing and grading 6. Financing 7. Risk taking 8. Securing marketing information
  • 21. Assessing Marketing Assessing Marketing Environment Environment • Includes: – Microenvironment: Factors close to the company that affect its ability to serve its customers. – Macro environment: larger societal forces that affect the microenvironment. » Considered to be beyond the control of the organization.
  • 22. Factors in the Factors in the Microenvironment Microenvironment
  • 23. The Company’s The Company’s Microenvironment Microenvironment • Suppliers: – Provide resources needed to produce goods and services. – Important link in the “value delivery system.” – Most marketers treat suppliers like partners.
  • 24. The Company’s The Company’s Microenvironment Microenvironment • Marketing Intermediaries: – Help the company to promote, sell, and distribute its goods to final buyers » Resellers » Physical distribution firms » Marketing services agencies » Financial intermediaries
  • 26. 5 Types of 5 Types of Customers Customers • Consumer markets • Business markets (B to B) • Reseller markets • Government markets • International markets
  • 27. Competitor Competitor s s • Must understand competitor’s strengths • Must differentiate firm’s products and offerings from those of competitors • Competitive strategies should emphasize firm’s distinctive competitive advantage in marketplace
  • 29. The Macro The Macro environment environment • The company and all of the other actors operate in a larger macro environment of forces that shape opportunities and pose threats to the company.
  • 30. The Company’s Macro The Company’s Macro environment environment
  • 31. Economic Economic Environment Environment Consists of factors that affect consumer purchasing power and spending patterns. • Changes in Income • Income Distribution
  • 32. Global Economic Global Economic Development Development Key Key Changes in Income Changes in Income Economic Economic Concerns for Concerns for Marketers Marketers Changing Consumer Changing Consumer Spending Patterns Spending Patterns
  • 33. Natural Natural Environment Environment • Involves the natural resources that are needed as inputs by marketers or that are affected by marketing activities.
  • 34. Natural Natural Environment Environment Conservation Conservation Of Resources Of Resources Factors Affecting Factors Affecting Ecotourism Ecotourism the the Natural Natural Environment Environment Recycle and Recycle and Reduce Waste Reduce Waste
  • 35. Technological Technological Environment Environment • Most dramatic force now shaping our destiny. • Robots and machines • Computerized video checkout services • Electronic guest room locking systems • Locking fax machines receive orders at restaurants • The development of the Internet
  • 36. Cultural Cultural Environment Environment • The institutions and other forces that affect a society’s basic values, perceptions, preference, and behaviors.
  • 37. Political Political Environment Environment Increased Increased Changing Changing Emphasis on Emphasis on Increasing Increasing Government Government Ethics & Ethics & Legislation Legislation Agency Agency Socially Socially Enforcement Enforcement Responsible Responsible Actions Actions
  • 38. New Challenges New Challenges New M arketing Landscape & Information Nonprofit Technology Marketing Emerging Emerging Ethical Concerns Challenges Challenges Globalizatio n Changing World Economy
  • 39. Marketing Mix Marketing Mix • It is the tools that an organization employs to pursue its marketing objectives in the target market • Product, Price, Place, Promotion • 4 C’s – Customer solution, Cost, Convenience, Communication
  • 40. • Product – Physical good features – Quality level – Accessories – Packaging – Warranties – Product lines – Branding
  • 41. • Price – Flexibility – Price level – Terms – Differentiation – Discounts – Allowances
  • 42. • Place – Channel type – Exposure – Intermediaries – Outlet locations – Transportation – Storage – Managing Channels
  • 43. • Promotion – Promotion blend – Salespeople » Number, selection, training, incentives – Advertising » Targets, media types, types of ads, copy thrust – Sales promotion – Publicity
  • 44. Who Purchases Products Who Purchases Products and Services? and Services? Actual Actual Market -- buyers Market buyers Buyers who share a Buyers who share a particular need particular need or want that can or want that can be satisfied by a be satisfied by a company’s products company’s products Potential Potential or services. or services. Buyers Buyers
  • 45. Marketing Marketing Management Management Marketing Management Implementing programs to create exchanges with target buyers to achieve organizational goals Demand Management Finding and increasing demand, also changing or reducing demand Profitable Customer Relationships Attracting new customers and retaining current customers

Editor's Notes

  1. Core Concepts This CTR corresponds to Figure 1-1 on p. 4 and relates to the discussion on pp. 3-10. Also to the CTRs numbers 4 - 8 which follow. Core Concepts Needs. These emerge from a state of felt deprivation. Ask students to distinguish among physical, social, and individual needs. Wants . These are the form taken by human needs as they are shaped by culture and individual experience. Have students provide examples for different wants based upon geographical differences, gender, age, wealth. Link culture to socio-economic standing, education. Demands . These are wants backed by buying power. Discuss such popular items as dream vacations or favorite cars to illustrate the difference between wants and demands. You may want an Acura Legend but drive a Subaru Justy. Introduce the idea that demands are often for a bundle or group of benefits and may address a number of related needs and wants. Products . These are anything offered for sale to satisfy a need or want. Have students discuss an extended view of products to include services and ideas. Discuss the role of value in distinguishing products. Discussion Note: Ask students to identify their product choice set for cars, vacations, dating partners, or college professors. Exchanges . These are the act of obtaining desired objects by offering something in return. Link to barter economies and promises to pay (i.e., credit, checks). Transactions. These are an actual trade of value between at least two parties. Transaction marketing is part of the larger concept of relationship marketing in which parties build long-term, economic ties to enhance quality and customer-delivered value. Markets . These are the set of actual and potential buyers of a product. Markets may be decentralized or centralized. Markets exist wherever something of value is desired, such as in the labor market, the money market, even the donor market - for human “products” such as blood or organs.
  2. Five Marketing Philosophies This CTR relates to the material on pp. 12-17. Teaching Tip: You may find it useful to ask students to give their definitions of philosophy. How do they use philosophies for studying? dating? planning their time? Work from their examples to the idea that businesses too have philosophies about how to get things done. The Production Concept. One of the oldest concepts, it holds that consumers favor products that are available and affordable. Management emphasizes production and distribution efficiency. Examples from the text include Ford's Model T and Texas Instruments. The Product Concept . This concept focuses on the actual product in an effort to continuously improve quality, performance, and features. May lead to marketing myopia or the tendency to too narrowly define the scope of one's business. Consumers buy products for their benefits, not their features. The Selling Concept . This concept views consumers as unwillingly customers whose inherent opposition must be overcome to make a sale. It is most often used today for unsought goods. The selling concept tends to encourage sellers to misrepresent the true nature of their products or services and can lead to problems in maintaining high customer satisfaction. The Marketing Concept . This concept links the company's success with the consumer's continuing satisfaction. Its "outside-in" approach starts with a well defined target market, an analysis of their needs and wants, and then builds the company's offering around meeting those needs better than the competition (Note: the selling and marketing concepts are contrasted on the following CTR of Figure 1-4). The Societal Marketing Concept . This concept adds to the marketing concept the idea that the company should contribute to the betterment of society as a whole (Note: The societal marketing concept is developed in more detail on a following CTR of Figure 1-5 and the accompanying notes).
  3. Marketing and Sales Concept Contrasted This CTR corresponds to Figure 1-4 on p. 15 and to the material on pp. 14-16. Comparisons and Contrasts: The Selling Concept takes an inside-out perspective -- looking at the company’s needs and wants in terms of existing products and ways to find customers for them. The Marketing Concept takes an outside-in perspective - identifying the needs and wants of a clearly defined market and adjusting company efforts to make products that meet the needs. Discussion Note: Promotional tone may help indicate whether a company practices the selling or the marketing concept. Selling involves persuasion -- convincing the customer of their need to buy existing products. Marketing, at its best, involves information -- bringing the developed product to the awareness of a target market that recognizes need satisfying products. As the text notes, companies can let their own success lock them into a rigid selling structure. As times change, and they always do, those companies fail to see the need for meeting new and emerging consumer needs. The marketing concept helps companies focus on customer need satisfaction , leading to long-term success by customer retention .
  4. Microenvironment includes: the company itself, supplies, marketing channel firms, customer markets, competitors, and publics. Macroenvironment includes: demographic, economic, natural, technological, political, and cultural forces.
  5. Resellers are distribution channel firms that help the company find customers or make sales to them. These include wholesalers and retailers who buy and resell merchandise. Resellers often perform important functions more cheaply than the company can perform itself. However, seeking and working with resellers is not easy because of the power that some demand and use. Physical distribution firms help the company to stock and move goods from their points of origin to their destinations. Examples would be warehouses (that store and protect goods before they move to the next destination). Marketing services agencies (such as marketing research firms, advertising agencies, media firms, etc.) help the company target and promote its products to the right markets. Financial intermediaries (such as banks, credit companies, insurance companies, etc.) help finance transactions and insure against risks associated with buying and selling goods.
  6. Financial Public: influence the company’s ability to obtain funds. Banks, investment houses, and stockholders and the major financial publics. Media Publics: carry news, features, and editorial opinion. They include newspapers, magazines, and radio and television stations. Government Publics: Management must take government developments into account. Marketers must often consult the company’s lawyers on issues of product safety, truth in advertising, and other matters. Citizen-Action Publics: A company’s marketing decisions may be questioned by consumer organizations, environmental groups, minority groups, and others. Its public relations department can help it stay in touch with consumer and citizen groups. Local Publics: include neighborhood residents and community organizations. Large companies usually appoint a community relations office to deal with the community, attend meetings, answer questions, and contribute to worthwhile causes. General Public: A company needs to be concerned about the general public’s attitude toward its products and activities. The public’s image of the company affects its buying. Internal Publics: include workers, managers, volunteers, and the board of directors. Large companies use newsletters and other means to inform and motivate their internal publics. When employees feel good about their company , this positive attitude spills over to external publics.
  7. New Marketing Challenges This CTR relates to the material on pp. 17-24. Teaching Tip: Challenge students to see marketing as an exciting and creative field needing new ideas and new solutions to emerging business opportunities. Growth of Nonprofit Marketing. More and more charitable firms and businesses that hold nonprofit status, like colleges and hospitals, are adopting a marketing orientation toward serving their constituencies. Globalization. Technological and economic developments continue to shrink the distances between countries. Computer and communications technology make possible truly global businesses that buy, sell, manufacturer, market, and service customers easily across international borders. Rising affluence creates new markets. Similarly, more European and Asian companies now compete successfully in the US. market. Changing World Economy. Even as new markets open to rising affluence in such countries as the “newly industrialized” pacific rim, poverty in many areas and slowed economies in previously industrial nations has already changed the world economy. Americans increasingly maintain living standards only by having two incomes per household. Value is hunted for by penny-wise consumers. Ethics and Responsibility . The greed of the 1980s and other problems has spurred a new interest in ethical conduct in business. Many consumers feel business in general has more of an obligation to those who generate profits -- the consumer! New Landscape and Information Technology . The new marketing landscape is a dynamic, fast-paced, and evolving function of all these changes and opportunities. More than ever, there is no static formula for success. Only strategies that incorporate and implement constant improvement in product quality and higher delivered customer value stand any chance of long-term success. Information and the internet have created a technology boom.
  8. The Marketing Management Process The marketing concept suggests that businesses must actively manage an on-going relationship with customers. Key concepts of this perspective include: Marketing Management . The text defines marketing management as “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.” Discussion Note: You might point out to students the influential role played by Professor Kotler in the development of marketing management, in both business and academic settings. Demand Management . Matching supply and demand can be a difficult balancing act. Traditional views of marketing were simplistic: build demand. Now marketers recognize the need to manage demand so that infrastructure resources are not overburdened. Discussion Note: It might help to compare demand management with Just-in-Time Inventory or Supply management. JIT lowers costs by not requiring extra capacity to hold things -- supplies or inventory -- before they are needed. By matching consumer demand to the systems designed to meet needs and wants, overall costs of marketing, and hence, the price of products, is reduced. Building Customer Relationships . Growing markets traditionally mean a plentiful supply of new customers. But as consumers become more sophisticated and as market growth slows, maintaining existing customers is the key to long term marketing success. As pointed out in the text, a continuing customer relationship means years of revenues for a company, not one time only sales. Further, existing customers are less expensive to promote to as they have already processed a great deal of product-specific information. Marketing Management This CTR corresponds to the material on pp. 11 - 12.