The document provides an overview of the key concepts to be covered in the Marketing Management course. It discusses the evolution of marketing from production to sales to marketing-oriented eras. The objectives are to understand marketing concepts, evolution of marketing management, and the nature and scope of marketing management. It also defines key terms like market, exchange, needs and wants, utility, marketing mix, and marketing environment. The marketing mix consists of product, price, place, and promotion. Environmental scanning techniques are also discussed.

1. Marketing Management -I
(Course Code:KMB 106)
UNIT: I- Marketing Management
Objectives:
• To understand the concepts of Marketing.
• To discuss the evolution of Marketing Mgt.
• To explain the nature and scope of Marketing Mgt.

4. • Term ‘market’ originates from the Latin noun
‘Marcatus’ which means ‘a place where business
is conducted’.
• A layman perceives ‘market’ as a place where
buyers and sellers personally interact and finalise
deals.
• Philip Kotler has defined the market as “an arena
for potential exchanges”

15. • Origin of Marketing
• The Evolution of Marketing:
• Nature of Marketing
 Both consumer and competition oriented
 Starts with consumers and ends at customers by
satisfying their needs
PRODUCTION
ERA
SALES ERA MARKETING
ERA

17.  Most important function of management
 Long-term objective of marketing is profit
maximization through customer satisfaction
 Integrated process which is based on strategies
and models
 Must deliver goods and services in exchange of
money

18. Definition Of Marketing
SOCIAL DEFINITION
The American Marketing Association (AMA)
defines marketing as, “ A social 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.”

19. AMA. ALSO DEFINES MARKETING AS:
“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”

20. PETER DRUCKER, a leading mgmt. theorist puts it this
way:
“There will always, one can assume, be need for some
selling . But the aim of marketing is to make selling
SUPERFLUOUS .The aim of marketing is to know and
understand the customer so well that the product or
service fits him and sells itself. Ideally, marketing
should result in a customer who is ready to buy. All
that should be needed then is to make the product
or service available.”

21. Marketing deals with products and the marketing people
are involved in marketing 10 TYPES OF ENTITIES:
GOODS, SERVICES , EXPERIENCES , EVENTS , PERSON ,
PLACES , PROPERTIES, ORGANISATIONS,INFORMATION
AND IDEAS
Marketing can be summed up as consisting of:
 Sales in a planned way
 Creation of customers
 Creation of demand and satisfying it.

22. CONCEPT OF EXCHANGE
• One of major functions of marketing is to create
an environment of EXCHANGE
• One person gives something of value, in return for
something of value from another person
• For e.g. BARTER SYSTEM in olden days and
exchange products with money in today's world.

23. NEEDS AND WANTS
• NEEDS – basic requirements for the existence of
LIFE , such as FOOD, CLOTHING , SHELTER , and
belongings
• WANTS – arises when the basic needs are satisfied
• A product , may be perceived by one customer as a
want and as need by another

24. ECONOMIC UTILITY
• “The extent to which a product satisfies customer
needs and wants is called UTILITY”
• Amount of satisfaction a customer derives after
consuming the product
4 TYPES OF UTILITY TO THE TGT.CUSTOMERS
• FORM UTILITY
• TIME UTILITY
• PLACE UTILITY
• POSSESSION UTILITY

25. • SCOPE OF MARKETING:
-- Scope of marketing is very wide
Marketing
Functions
Function of
Exchange
Function of
Physical
Distribution
Function of
Facilities
1. Buying
Function
2. Assembling
Function
3. Selling
Function
1. Transportation
2. Inventory Mgt.
3. Warehousing
4. Material
Handling
1. Financing
2. Risk Taking
3. Standarisation
4. After-Sales
Service

28. What Are the
Marketing Functions?
• Interrelated activities working
together to get products from
producers to customers
 Product/Service
management
 Marketing-information
management
 Pricing

29. What Are the
Marketing Functions?
• Interrelated activities working
together to get products from
producers to customers
 Channel management
 Promotion
 Selling

30. • The Marketing Concept Rests on 4 Pillars:
 Target Market
 Customer Needs
 Integrated Marketing
 Profitability

31. MARKETING MGT. PROCESS:
I. Product Policy or Planning
(A) Marketing Research:
a) Identifying the customer requirements
b) Collection of data
c) Analysis of data and
d) Findings/Conclusions
(B) Motivational Research
(C) Test Marketing
II. Distribution
(A) Channels of distribution
a) Manufacturer --- Distributor--- Wholesaler ---Retailer ---Consumer
b) Manf.--- Wholesaler --- Retailer --- Consumer
c) Manuf. --- Retailer --- Consumer
d) Manuf. --- Consumer

32. (B) Transportation
(C) Warehousing
III. Sales Planning
IV. Sales Mgt.
V.Miscellaneous Marketing Activities
The 4 P’s of marketing mix

33. • Marketing Philosophies:
-- Marketing can be seen at two levels:
i. As a fundamental, underlying philosophy
- A business philosophy, marketing puts customers
at the centre
- Understand and respond to customer needs and
search for new market opportunities

34. ii. As a set of applied techniques:
- Market research is seen as technique for finding
out about customer needs
- Advertising as a technique to communicate
benefits of a product (communication channel)
- Pricing
- Designing of channels of distribution and new
product development

37. Marketing Tasks:
- Radical Marketing
Marketing Environment:
- Task environment
- Broad environment
Three stages through which marketing practice
might pass:
1.Entrepreneurial marketing
2.Formulated marketing
3.Intrepreneurial marketing

39. • Company Orientations Towards the Market
Place:
 the Production Concept
 the Product Concept
 the Marketing Concept
 the Customer Concept
 the Societal Marketing Concept

49. How business and marketing are changing?
The major forces created new behaviour and
challenges:
 Customers
 Brand manufacturers
 Store-based retailers
MARKETING DYNAMICS:
Company responses and adjustments:
 Reengineering
 Outsourcing

50.  E-commerce
 Benchmarking
 Alliances
 Partner-suppliers
 Market-centered
 Global and local
 Decentralized
Marketers responses and adjustments:
 Customer relationship marketing
 Customer lifetime value
 Customer share

51.  Target marketing
 Customization
 Customer database
 Integrated marketing communications
 Channels as partners
 Every employee a marketer
 Model-based decision making

52. Concept of Marketing Mix

53. MARKETING MIX
Product
Product variety
Quality
Design
Features
Brand name
Packaging
Sizes
Services
Warranties
Returns
Price
List price
Discounts
Allowances
Payment
period
Credit
terms
Promotion
Sales
promotion
Advertising
Sales force
Public
relations
Direct
mktg.
Place
Channels
Coverage
Assortments
Locations
Inventory
Transport
Tgt.
market

54. • Marketing program consists of numerous decisions
on the mix of marketing tools
• Marketing Mix:
“ Set of marketing tools the firm uses to pursue its
marketing objectives in the target market.”
McCarthy classified these tools into 4 broad groups that he
called the 4 Ps of marketing:
product, price, place and promotion

55. • Marketing Mix Strategy:
Promotional Mix
Offering Mix
Company---
Products, Services,
Prices
 Sales
promotion
 Advertising
 Sales force
 Public
relations
 Direct mail,
telemarketing
Distribution
Channels
Target
Customers

56. • Robert Lauterborn suggested sellers 4P’s
correspond to the customer’s 4 C’s
• 4 P’s--- product 4C’s--- Customer solution
Price Customer cost
Place Convenience
Promotion Communication
Marketing Environment:

64. TECHNIQUES OF ENVIRONMENT SCANNING

78. 4 - 78
Key Environments
• Marketing Environment
– The actors and forces that affect a firm’s
ability to build and maintain successful
relationships with customers.

79. 4 - 79
Key Environments
• Aspects of the marketing environment:
– Microenvironment:
• Actors close to the company
– Macroenvironment
• Larger societal forces

80. • Business Environment of a Firm:
Firm
Internal
Environment
External
Environment
Human Resources
 Production
 R&D.
 Company Location
 Financial Capabilities
 Company Image
Micro
Environment
Macro
Environment
Suppliers
 Marketing
Intermediaries
 Customers
 Demographic
 Legal
 Political
 Technological
 Socio-cultural
Economic
 Natural

85. Figure 4-1:
Actors in the
Microenvironment

87. Figure 4-2:
Major Macroenvironmental
Forces

88. • COMPETITIVE FORCES:
• COMPETITION
• STRUCTURE OF INDUSTRY
• PLAYERS IN THE MARKET DECIDES THE MARKET
DYNAMICS