This document discusses key concepts in marketing and marketing management. It defines marketing, explores various marketing orientations including production, product, selling, marketing, societal marketing, and holistic concepts. It also covers core marketing concepts like customer value and satisfaction, target markets and segmentation. The document discusses implementing marketing management concepts to address challenges from customers and markets. It provides high-level overviews of marketing mix, relationship marketing, integrated marketing, internal marketing and performance marketing.

1. By: Bhanu Bhakta Sharma NCC
MARKETING
MANAGEMENT
MKT - 511
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Bhanu Sharma@NCC

2. INTRODUCTION OF MARKETING
1
CHAPTER
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 Concept of Marketing and Marketing Management;
 Customer Value and Satisfaction in Marketing;
 Management Orientation Concept in Marketing;
 Implementation of Marketing Management
Orientation Concepts;
 Process of Marketing Management – Situation
Analysis, Formulation of Marketing Plan and
Program, Program Implementation, and Marketing
Control;
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3. How would you
define
marketing ?
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4. What is Marketing
 Marketing is commonly misunderstood as an affected terms of
advertising and promotion; in reality it is far more than that. This
perception isn’t many ways unreasonable, advertising and promotion
are the major way in which most people are exposed to marketing.
 However, the term Marketing actually covers everything from
company culture and positioning, through the market research, new
business/product development, advertising and promotion, public
relation, and possibly all of the sales and customer service function
as well. Hence Marketing is;
 Systematic attempt to fulfil human desires by producing goods and
services that people are buy.
 where the cutting edge of human nature meets the versatility of
technology.
 Companies help us discover desires we never knew we had, and ways of
fulfilling them we never imagined could be invented
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5. What is Marketing
 Simple Definition: Marketing is managing
profitable customer relationships.
Goals:
 Attract new customers by promising superior
value.
 Keep and grow current customers by delivering
satisfaction.
 Create long term and mutually beneficial
exchange relationships between an entity and the
publics (individuals & organizations) in which it
interacts”
 Create, sustain, maintain or add VALUE!
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6. Marketing Definition
The AMA managerial definition:
“Marketing is the process of planning and executing the
conception, pricing, promotion, and distribution of ideas,
goods, and services to create exchanges that satisfy individual
and organizational objectives.”
 Kotler’s social definition:
“Marketing is 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.”
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7. Core Marketing Concepts
 Needs, wants,
demands
 Target markets and
market
segmentation
 Marketers &
prospects
•Product offering and brand
•Value and satisfaction
•Exchange and transactions
•Relationship and networks
•Market
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8. Products
and
Services
offering
Value, satisfaction,
and quality
Needs, wants,
and demands
Exchange, transactions,
and relationships
Target
Markets
Core
Marketing
Concepts
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9. This is a Need
 Needs - states of felt deprivation including physical
needs for food, social needs for belonging and
individual needs for self-expression. i.e. I am
thirsty.
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10. This is a Want
Wants – Needs
become wants
when they are
directed to
specific objects
that might satisfy
the need.
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11. This is Demand
Wants
Wants Buying Power
“Demand”
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12. Need / Want Fulfillment
 Needs and Wants Fulfilled through a
Marketing Offer :
Some combination of products, services,
information, or experiences offered to a
market to satisfy a need or want.
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13. Target markets &
segmentation
Differences in needs, behavior,
demographics or psychographics are
used to identify segments.
The segment served by the firm is
called the target market.
The market offering is customized to
the needs of the target market.
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14. Marketplace, Market space, Meta markets
The Marketplace is physical, as when one goes for
shopping in a store.
Market space is digital, as when one goes
shopping on the internet.
Meta market is described as a cluster of
complementary products and services that are
closely related in the minds of consumers but
are spread across a diverse set of industries.
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15. Exchange & Transactions
 Exchange involves obtaining a desired product from
someone by offering something in return. Five
conditions must be satisfied for exchange to occur. It is
value-creating process.
 There must be at least two participants in the process.
 Each party must offer something of value to the other.
 Both parties must want to deal with each other.
 Both participants have the right to accept or to reject the
offer.
 Both groups must have the ability to communicate and
deliver on the mutual agreement.
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16. Transaction
 Transaction is a trade of values
between two or more parties.
It involves at least two things of
value, agreed-upon conditions, a
time of agreement, and a place of
agreement.
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17. Marketing Management
 Marketing Management is the analysis, planning,
implementation and control of programs designed to
create, build and maintain beneficial exchanges and
relationships with target markets for the purpose of
achieving Organisational objectives.
 Marketing management is demand management or it
involves the task of influencing the level, timing and
composition of demand. At times the actual demand
level may be below, equal to, or above the desired
demand level and the major task of marketing
management is to regulate the level of demand.
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18. Marketing Management
 Marketing management is defined as the analysis,
planning, implementation and control of program
designed to create build and purpose of achieving
organizational objectives.
 Marketing manages have to carry marketing research,
marketing planning, marketing implementation and
marketing control. Within marketing planning, marketer
must make decisions on target markets, market
positioning product development, pricing channels of
distribution, physical distribution, communication and
promotion. Thus, the marketing managers must acquire
several skills to be effective in market place.
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19. Value and Satisfaction
 Value is the customers’ estimate of the
Product’s capacity to satisfy a set of
goals
 Value is the ratio between what the
customer gets and what he gives
(V=B/C)
 Customer gets benefits & assume
costs
 WHEN :Customer Expectance=Performance
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20. Management Orientation Concept in
Marketing and Its Implementation
Philosophy Key Ideas
Production
Product
Market
Focus on efficiency of internal operations
Focus on aggressive techniques for overcoming
customer resistance
Focus on quality, performance, or innovative features
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Societal Focus on satisfying customer needs and wants while enhancing
individual and societal well-being
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Holistic The development, design and implementation of
marketing programs, processes and activities
Focus on satisfying customer needs and wants
Sales
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21. Marketing Management Concepts
Production Concept
Product Concept
Selling Concept
Marketing Concept
Societal Marketing Concept
Holistic Marketing Concept
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22. Production Concept
 Consumers will favour those products that are widely available
and low in cost.
 Therefore increase production and cut down costs.
 And build profit through volume.
 Prior to 1920s
 Production orientation
 Business success often defined solely in terms of production victories
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A customer can have any colour he likes for his car so long as it's black’
Henry Ford
This orientation makes sense in developing countries such as China, where
the largest PC manufacturer, Legend (principal owner of Lenovo Group),
and domestic appliances giant Haier take advantage of the country’s huge
and inexpensive labor pool to dominate the market. Marketers also use the
production concept when they want to expand the market.
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23. Product Concept
 Consumers will favour those products that offer
the most quality, performance, or innovative
features.
 Therefore, improve quality, performance and
features.
 This would lead to increased sales and profits.
 A new or improved product will not necessarily be
successful unless it’s priced, distributed, advertised,
and sold properly.
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24. The Selling Concept
 Consumers , if left alone , will not buy enough of
company’s products.
 Therefore, promote sales aggressively.
 And, build profit through quick turnover.
 Prior to 1950s
 Customers resist nonessential goods and services
 Personal selling and advertising’s task is to convince them to
buy
 It assumes customers persuaded into buying a product
not only won’t return or bad-mouth it or complain to
consumer organizations but might even buy it again.
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25. The Marketing Concept
 The key to achieving organizational goals consist in determining
the needs and wants of target markets and delivering the desired
satisfactions more effectively and efficiently than competitors.
 And build profit through customer satisfaction and loyalty.
 Since 1950s Marketing Concept Emerges
 Shift from seller’s to buyer’s market
 Consumer orientation
 Dell doesn’t prepare a perfect computer for its target market.
Rather, it provides product platforms on which each person
customizes the features he or she desires in the computer.
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26. Marketing and Sales Concepts Contrasted
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27. The Societal Marketing Concept
 The societal marketing concept holds that the organization’s
task is to determine the needs, wants, and interests of target
markets and to deliver the desired satisfactions more effectively
and efficiently than competitors in a way that preserves or
enhances the consumer’s and the society’s well being.
 It addresses conflicts between consumer’s and firm’s short run
wants and long term welfare.
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28. Societal Marketing Concept
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29. The Societal Marketing Concept
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30. The Holistic Marketing Concept
 The holistic marketing concept is based on the development, design,
and implementation of marketing programs, processes, and activities
that recognize their breadth and interdependencies. Holistic marketing
acknowledges that everything matters in marketing—and that a broad,
integrated perspective is often necessary.
 Holistic marketing thus recognizes and reconciles the scope and
complexities of marketing activities. It provides a schematic overview
of four broad components characterizing holistic marketing are:
 Relationship marketing
 Integrated marketing
 Internal marketing
 Performance marketing
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31. Holistic
Marketing
Integrated
marketing
Relationship
Marketing
Performance
Marketing
Internal
Marketing
Marketing
deptt
Senior
Mgt
Other
Deptt Communications Products &
Services
Channels
Financial
Accountability
Social Responsibility Customers Partners
Channels
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32. Relationship Marketing
 Relationship marketing aims to build long-
term mutually satisfying relations with key
parties, which ultimately results in marketing
network between the company and its
supporting stakeholders.
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33. Relationship Marketing
Four key constituents for marketing are:
 Customer
 Marketing Partners (channel, suppliers, distributors,
dealers and agencies)
 Employee
 Members of financial community (shareholders,
investors)
The development of strong relationships requires an
understanding of the capabilities and resources of
different groups, as well as their needs, goals and desires.
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34. Integrated Marketing
 Holistic marketing concepts believes that there must be a
full Integration of the marketing programs to create,
communicate and delivery superior value to customer.
 Integration should be at the level of marketing mix
marketing channels(4ps).
 Marketing communication mix (Advertising, personal selling,
sales promotion, public relations and direct marketing).
 Customer value (Customer solution, cost, convenience and
communication).
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35. Internal Marketing
Internal marketing concept is based on view that
every body within an organization is a marketer.
Marketing department level
Other departments’ level
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36. Performance Marketing
 Performance marketing emphasizes that marketing
activities should perform at two levels;
 Financial accountability: Revenue and profit for
the firm, build the firm’s products and brands, and
support the growth of the firm.
 Social responsibility: The holistic marketing
concept should take the legal, ethical,
environmental and social concern of people and
society.
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37. Marketing Mix Updating The
Four Ps
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38. 7 P’s in Services Marketing
3 additional P’s in services marketing
 People: Any person coming into contact with customers can
have an impact on overall satisfaction.
 Process: Process(es) involved in providing a service and the
behaviour of people, which can be crucial to customer
satisfaction.
 Physical evidence: The “environment” or atmosphere in which
the service is delivered
 Buildings
 Furnishings/décor
 Layout
 Goods associated with the service e.g. carrier bags, tickets, brochures
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39. Implementation of Marketing
Orientation
 Major challenges from today’s customers
 Expect higher quality: Consumers today expect a very high quality products
offered to them. Quality needs to be defined from the customers’ perspective.
 Expect better services: consumers demand a variety of services attached with
the core product.
 Decrease brand loyalty: consumers show greater brand switching behavior as a
result of the brand parity so retention has become the major challenges for the
marketing firm today.
 Internet based information: Consumer are increasingly using the internet as
their prime source of information on the product, it has decreased the power of
mass media advertising.
 Increased price sensitivity: Consumers have become more price sensitive and
search for price value. A slight price advantage makes today’s consumers switch
the brand.
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40. Implementation of Marketing
Orientation
 Major Challenges from the Market
 Intense competition from domestic and foreign sources: Franchises, licensing
and other forms of strategic alliances bring new forms of competition, it has
increased the level of competition in the marketplace.
 Increasing promotion costs and lowering profit margins: Advertising and
other communication tools have increased the cost, it has significantly decreased
their profit margins.
 Changes in retail business: Small store based retailers are being replaced by
departmental store and supermarkets.
 Direct Marketing: e-marketing and internet based marketing stored large
amount of goods.
 Areas of Change Required for Implementation
 Implementation of new concept requires a complete alteration of the
organization’s goal and structure, internet marketing, change in authority and
responsibility relationships and a careful planning of the marketing Mix. There is
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41. Implementation of Marketing
Orientation
 Marketing Management Response to the Challenges
 The past decade taught business firms everywhere a humbling
lesson.
 Domestic companies learned that they can no longer ignore
global markets and competitors.
 Successful firms in mature industries learned that they cannot
overlook emerging markets, technologies, and management
approaches.
 Companies of every sort learned that they cannot remain
inwardly focused, ignoring the needs of customers and their
environment.
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42. Implementation of Marketing
Orientation
 Marketing Management Response to the Challenges
 Globalization (Global Marketing is growing rapidly. Organization think globally but
plan and act locally to adapt to local environmental forces.)
 Technological changes (Technological innovation is accelerating for
communication and electronics goods.)
 Direct marketing (E-commerce is getting popular and plays importance role for
distribution of products.)
 Service marketing
 Outsourcing
 Relationship marketing
 Growth of global Branding
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43. Task of Marketing
 Develop market strategies and plans
 SWOT analysis and create competitive advantage
 Capture marketing insights (Marketing information system)
 Internal record and Marketing research
 Customers Relationship (mutual satisfaction)
 Build strong brands (Brand positioning )
 Shape market offerings (changes in customer preferences)
 Deliver value (perceived benefit over costs, through physical distribution)
 Communicate value (through ad, public relation, sales promotion and
personal selling)
 Create long-term growth
 It develops tests and lunches new products with a long-term view.
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44. Customer Value and
Satisfaction
 Customer Value: Customers exercise their choice
with the objective of getting maximum value and
satisfaction from products and services they buy.
Brand attributes and Images
Delivery/use
Customer
Experience
Customer
Value
Reputation
Product quality, packaging,
design and price
Delivery through services and sales personnel’s expertise
experience and good behavior.
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45. Customer Value and
Satisfaction
 Customer Costs: It is the composite of all the costs
incurred by a customer in evaluating, using and
disposing product/ service offer.
 Monetary cost
 Time cost
 Energy cost
 Psychic cost (the cost of frustration/dissatisfaction)
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46. Customer Value and
Satisfaction
 Customer Satisfaction: After use or consume of a goods and
service consumer tends to develop a feelings of satisfaction/
dissatisfaction towards the product/service.
 Thus, satisfaction refers to the buyers state of being adequately rewarded by the
purchase decision
 Pre-purchase Expectations':
 Experiential
 Social
 Commercial
 Pre-purchase Expectations':
 Satisfaction
 Dissatisfaction
 Delightment
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47. Situation Analysis
 Marketing management function begins from the analysis of the
internal and external factors that determine the marketing planning
and implementation (SWOT analysis).
 Internal analysis: This analysis is focused around the functional areas of
the organization such as operation, infrastructure, human resources,
finance and marketing. This analysis (SW) provides the marketing firm an
idea about its strength and weaknesses, assets and competencies.
 External analysis: This analysis (OT) focuses and evaluating those forces
that lies outside the organization.
 Customer analysis: buying process, value, satisfaction, quality and relationship
 Competitor analysis: weakness of competitor, reaction pattern
 Market analysis: size, growth and long-term profit of market, cost and distribution
 Environmental analysis: dynamism of micro and macro environmental forces
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48. Formulation of Marketing Plan and
Program
 Marketing managers develop the different term plan such as departmental
manager develops the medium term strategic plan and other operating
level managers short term operational plan to solve day to day
operational problems.
 Determining the business missions and goals: want to achieve in market place
 Developing strategic alternatives: achieve the mission and goal of firm
 Specifying operational tasks: actions will be taken to implement strategies and
achieve the business goal
 Designing contingency strategies: if the plan to be modified due to
environmental factors alternative strategies can be implemented.
 The program includes areas of competitive advantages such as new
product development, market research, market development, advertising,
public relations, customer relations and service.
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49. Marketing Control
 Marketing department has to design an effective control system in
order to guide the implementation and take corrective action on
deviations from the plan.
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Goal Setting
What do
we want to
achieve?
Performanc
e
Measureme
nt
What is
happening?
Performanc
e Diagnosis
Corrective
Action
Why is it
happening?
What
should we
do about it?
Control based on annual targets of cost, profit, sales and market share
Control based on efficiency of the marketing units, tasks and personnel
Control based on overall achievement of marketing goal of customer
satisfaction

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