The document discusses several core concepts in marketing management including needs, wants and demands of consumers, marketing offers to satisfy consumer wants, the importance of customer value and satisfaction, and the difference between consumers and customers. It also defines marketing as a process of creating and exchanging value with others to satisfy human needs and wants. The goal of marketing is to attract new customers by promising superior value and retaining existing customers through satisfaction.

1. MARKETING MANAGEMENT

2. Basic of Marketing management (need, want, value,
demand, market, exchange, process).
LECTURE: 1

3. Definition :
“Marketing is defined as a social and managerial process
by which individuals and group obtain what they need
and want through creating and exchanging products and
value with others.” (Philip Kotler)

4. The basic objective of marketing is to attract new
customers by promising and offering superior value and to
retain and grow current customers by delivering
satisfaction. Marketing deals with customers more than
any otherfunction of business.
Building customer relationship based on customer value
and satisfaction is at the very core of Modern marketing.
Highly successful companies realized that if they take care
of their customers then market share and profits will
follow.
We see marketing in the advertisement that flash very
frequently on our TV, spice up our magazines newspapers,
decorate the sides of highways, and now a days reach you
even through cell phones and e-mails.

5. Need, Want
and demand
Marketing
offers ( Prod,
services and
experances
Value and
satisfaction
Exchanges,
Transactions
,Relationship
Markets
Core
Marketing
Concepts

6. The concept of human need is the fundamental
concept underlying all marketing activities, Human
needs are states of deprivation. They are biogenic in
origin and include psychological needs for food,
clothing, shelter and safety. Social needs arecarving
for belonging and affection. Knowledge and self-
expression are the other individual need of human
beings. All these needs are basic requirements of any
individual, and are not a creation by marketing
people.

7. Wants are the forms human needs take as they are
shaped by culture and individual personality
characteristics. When an American needs food, he
may want a McDonald burger, or steak, French fries
and a coke. Whereas if an Indian needs food he may
want dosa, chapattis, or rice and coffee or tea. Wants
are shaped by the society in which one lives and are
described in terms of products that will satisfy needs.
The only difference between needs and wants is that
while human needs are limited, wants are unlimited.

8. When a human wants are backed by purchasing
power and wiliness to buy, they become demand.
Based on their needs, wants and buying capacity,
consumers ask for or demand products which they feel
give them maximum value and satisfaction. Most of
the marketing companies take pains to study and
understand their consumer’s need, want and demand,
based on which they plan their strategies for products
and promotions. Consumer behavior studies and
consumer research are primarily for identifying and
analyzing consumer needs, wants, and related buying
behavior.

9. Marketing offers are combinations of products ,
services and experiences offered to a market to satisfy a
need or want. It is also called value proposition, which
is set of benefits that marketing people promise to the
consumers to satisfy their needs.
The largest share of marketing offer consists of
include nonphysical (tangible) products which
durable goods (fast moving consumer goods or
FMCG) and consumer durable .
Non- Durable
Durables

10. offers are not only limited to physicalMarketing
products only. In addition to tangible products ,
marketing offers include services, activities or benefits
offered for sale that are essentially intangible
not result in the ownership of anything,
and do
Banking
,airline , hotel, transportation, tourism and travel,
consultancy, etc. are example of such services. In
addition, marketing offer also include other entities,
such as persons, places, organizations, information
and ideas.

11. Consumers have a wide choice of products and services
which promise satisfaction of a particular need. They
normally decide on their choices on their perception on the
value and satisfaction that different products and services
deliver, or offer Customer value is the difference between the
value of the product gains from buying and using a product
and the cost of buying the product. They normally from
expectations about the value of different marketing offers
and buy accordingly. This involves the customers mental
process of judging the value of the product and is called
customer perceived value . Customer expectations are
based on past buying experiences and the opinion of
friends and family.
The promises offered by marketers and the information
about similar product offer of competitors also influnce.

12. Exchange is another core concept of marketing. It is
the act of obtaining an object which one needs from
another by offering some other things in return. In the
exchange processes, towor more individuals are
involved each side possessing something that is
considered to be of value to the other. Both will have
the ability to discuss and disagree.

13. Customer satisfaction with a purchase depends on how
well the product's performance lives up to the
customer expectations. Customer satisfaction is a key
influence on the future buying behavior ofpeople.
Satisfied customers will buy the product again and tell
the others about their good buying experience.
Dissatisfied customer on the other hand, switch to the
competitors products and also discourage others form
buying the products. Marketers must be careful to set
the light level of expectations. If they set expectations
too low they may satisfy them but fails to attract more
customers. And viseversa.

14. Customer satisfaction is no longer good enough to
survive in today’s competitive market. What is needed
is customer delight.
When customer will be delighted?
When what is provided is more than what is promised
or expected.
It is a basic requirement for building customer
relationship .
The important reward form customers is they will be
loyal to the company or brand.

15. Consumer and customer are people who buy goods
and merchandise.
They are people who are constantly looking for good
deals and discounts in order to save money and make
the economybetter.
Despite their similarities, there is a difference between
consumer and customer.

16. This is a broad term for individuals who use products
and services that are generated in the economy. They
are the ones who consume the products or services
they have bought or were bought for them. They use
these products based on what they have heard or seen
and apply all the information when deciding whether
they need the product or not.

17. It is derived from the term, “custom,” meaning habit.
These are people or organizations who frequently visit
your store, they purchase from you and no one else.
The owner or storekeeper also makes sure that his/her
customers are satisfied. In this way, owner and
customer maintain their relationship, which means
expected buys in the future. With this term, another
slogan for customers was revealed “the customer is
always right.”

18. Consumers either buy or does not buy the products that
they necessarily use
while customers are people who buy goods and services,
but may not use the merchandise themselves.
Consumers have goals and purpose while buying items .
while customers buy these products and may not use
them personally, they either buy them to resell or buy
for those who want them.

19. Consumers pertain mostly to an individual or family.
while customers can be an individual, organization or
another seller.
Consumers play a role in the demand of products in
the economy while customers can simply decide if this
will go or not.
In conclusion, we can say, consumers and customers
are very important people in maintaining the balance
and profit of one’s company. They have their own
functions, but the thought of the two are almost the
same.

20. Consumer and customer are people who buy goods
and merchandise.
• Consumer is a broad term for individuals that use the
products and services that are generated in the
economy.
• Customer came from the term, “custom,” meaning
habit, and they may not consume the item they
purchased.

21. Customer Satisfaction
“I expected…I got it”
Customer Loyalty
“I got more than I expected”

22. Attracting theright customer.
Encouraging customers to buy, buy often, buy in higher
quantities and bring you even more customers.
Providing excellent customerservice.
You build customer loyalty by treating people how they
want to betreated.

23. Market is a collection of buyers and sellers. It is also
thought to be a set of individuals or institutions that have
similar needs that can be met by a particular product. For
example, the housing and automobile market .
Amarket is, therefore, the set of all actual and potential
buyers of a market offer.
Market also meant a physical location where buyers and
sellers met to conduct transactions.
These marketplaces, like the grocery stores, malls etc.
Most companies conduct research to find out the
credibility of their product in the market, its sales patterns,
buyer acceptance levels and most importantly, to forecast
future sales.

24. Marketing, on the other hand, is an organizational
function and a set of processes that work in tandem to
serve the market effectively, efficiently and profitably.
The American Marketing Association defined marketing in
2005 as –
Marketing is an organizational function and a set of
processes for creating, communicating, and delivering
value to customers and for managing customer
relationships in ways that benefit the organization and its
stakeholders.

25. A marketer, by adjusting and optimizing the 4P-s of
marketing, has to carry out different marketing tasks,
take care of the task or internal marketing
environment, and keep his eyes and ears open about
the happenings in the broad or external environment,
in order to compete successfully in the market.
Successful marketing companies will be those who can
provide appropriate solutions to customer needs
economically and conveniently and communicate
effectively with the targeted group of consumers.

26. Consumer Markets
Companies selling mass consumer goods and services such as
juices, cosmetics, athletic shoes, and air travel spend a great deal
of time establishing a strong brand image by developing a
superior product and packaging, ensuring its availability, and
backing it with engaging communications and reliable service.
Business Markets
Companies selling business goods and services often face well-
informed professional buyers skilled at evaluating competitive
offerings. Business buyers buy goods to make or resell a product
to others at a profit. Business marketers must demonstrate how
their products will help achieve higher revenue or lower costs.
Advertising can play a role, but the sales force, the price, and the
company’s reputation may play a greater one.

27. Global Markets
Companies in the global marketplace must decide which
countries to enter how to enter each (as an exporter,
licenser, joint venture partner, contract manufacturer, or
solo manufacturer)
How to adapt product and service features to each country
How to price products in different countries and how to
design communications for different cultures.
They face different requirements for buying and disposing
of property cultural, language, legal and political
differences and currencyfluctuations.

28. Non-profit andGovernmental Markets
Companies selling to nonprofit organizations with
limited purchasing power such as churches,
universities, charitable organizations, and government
agencies need to price carefully. Lower selling prices
affect the features and quality the seller can build into
the offering. Much government purchasing calls for
bids, and buyers often focus on practical solutions and
favor the lowest bid in the absence of extenuating
factors

30.  Good quality products with low cost.
The Product Concept(1920-1940)
Performance, features and product quality.
The Selling Concept(1950’s):
Aggressive selling and promotion
The Marketing Concept (1970s)
Customer satisfaction:
 Target Market-1990’s

31. The idea that consumers will favor products that
are available and highly affordable. Useful in two
situations (1) when demand for a product exceeds
the supply e.g. energy (power) and (2) when the
products cost is too high and improved
productivity is needed to bring it down. e.g.
Henry Fords Model T cars (black) cars - to
perfect the production of model T cars.

32. The idea that consumers will favor products that
offer the most in quality, performance, and
(innovative) features and that the organization
should therefore devote its energy to making
continuous product improvements.
It can lead to ‘marketing myopia’.
The product concept seeks to achieve the same
results via product excellence, improved products,
new products and ideally designed and engineered
products.

33. The idea that consumers will not buy enough of
the firms products unless it undertakes a large-
scale selling and promotion effort .
This is typically practiced with unsought goods. eg
insurance, vaccines, polio- drops etc.
If firms face overcapacity then they practice
selling concept. Their aim is to sell what they
make rather than make what the market wants.

34. The marketing management philosophy that holds
that achieving organizational goals depends on
knowing the needs and wants of target markets and
delivering the desired satisfactions better than
competitors do.
The marketing concept holds the business is basically
a ‘need satisfying process’ and that business must be
managed keeping the consumer and his need as the
focus. The concept prescribes that all goals of
business, including profit, must be realized through
consumer orientation and generation of consumer
satisfaction.
e.g. British Airways, ICICI Bank

35. Holistic marketing concept is a part of the series on
concepts of marketing and it can be defined as a
marketing strategy which considers the business as a
whole and not as an entity with various different parts.
According to holistic marketing concept, even if a
business is made of various departments, the
departments have to come together to project a
positive & united business image in the minds of the
customer. Holistic marketing concept involves
interconnected marketing activities to ensure that the
customer is likely to purchase their product rather
than competition.

36. marketing recognizes “everythingHolistic
matters” with marketing
that
that a broad,
integrated perspective is
–and
often necessary. Four
components of integrated marketing are:
Relationship marketing
Integrated marketing
Internal marketing
Social responsibility marketing

37. Holistic
Marketing
Internal
Marketing
Integrated
Marketing
Socially
Responsible
Marketing
Relationship
Marketing
Marketing
Department
Senior
Management Other
Departments
Products &
Services
Communications Channels
Ethics
Environment
Community
Legal
Customers
Channel
Partners

38. Relationship Marketing: enduring relationships
with all people or organizations that could directly
or indirectly affect the success of the firm’s
marketing activities. Building mutually satisfying
long-term relationships with key parties-
customers, suppliers, distributors, and other
marketing partners in order to earn and retain
their business.
Integrated Marketing: (1) Many different
activities are employed to communicate and
deliver value.
& (2) All marketing activities are co-ordinated to
maximize their joint effects.

39. – The societal marketing concept leads to a company
orientation which believes in giving back to the society
what it had received from the society. This concept
believes that the company is profiting because of
society and hence it should also take measures to make
sure the society also benefits from the company. Read
more about the SocialMarketingConcept.

40. Examples 1.Ariel:
Ariel is a detergent manufactured by Procter and
Gamble (P&G). Ariel runs special fund raising
the worldcampaigns
specifically
for deprived classes of
the developing countries. It also
contributes part of its profits from every bag sold to
the development of the society.
Body Shop: Body Shop is a cosmetic company found by
Anita Roddick. The company uses only vegetable
based materials for its products. It is also against
Animal testing, supports community trade, activate
Self Esteem, Defend Human Rights, and overall
protection of the planet. Thus it is completely
following the concept of Societal Marketing.

41. It is a strategy that focuses on the increase of overall
sales and nothing else. Small businesses who engage in
transaction oriented marketing shift every possible
resource and marketing initiative away from things
like customer relations and onto creating more points
of sale, ways to buy and purchase rewards for the
customer.

42. The concept of marketing myopia was discussed in an
article (titled "Marketing Myopia," in July-August 1960
issue of the HarvardBusiness Review)by Harvard
Business School emeritus professor of marketing,
Theodore C. Levitt (1925-2006), who suggests
that companies get trapped in this situation because
they omit to ask the vital question,
"What business are we in?“
According to him companies should look at marketing
from the consumer's point of view.
Business will survive and perform better if it focuses
on satisfying customer needs rather than selling
specific products