Marketing

1. Understanding Marketing
Management
Dr. Gopal Thapa
Tribhuvan University

2. Marketing
 Telling and selling
or
 Satisfying needs profitably
or
 Relationship building
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3. What is marketing?
 The systematic planning, implementation and control of a
mix of business activities intended to bring together buyers
and sellers for the mutually advantageous exchange or
transfer of products. (Dictionary of Marketing)
 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. (Kotler and Keller)
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4. What is marketing?
 Marketing is the activity, set of institutions and
processes for creating, communicating, delivering
and exchanging offerings that have value for the
customers, clients, partners and society at large.
(American Marketing Association)
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5. Marketing Management
 Marketing management is the art and science of
choosing target markets and getting, keeping, and
growing customers through creating, delivering
and communicating superior customer value.
 Philip Kotler and Kevin Lane Keller

6. Importance of Marketing
 Financial success depends on marketing
 No demand - no business
 Marketing decisions tough
 – What to design
 – What prices to offer
 – Where to sell
 – How much to spend on advertising…
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7. What is marketed?
 Physical goods
 Services
 Events
 Experiences
 Persons
 Places
 Properties
 Organizations
 Information
 Ideas
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8. Who markets?
 Marketers and Prospects
 A marketer is someone who seeks a response –
attention, a purchase, a vote, a donation – from
another party called prospect
 If two parties are seeking to sell something to each
other, we call them both marketers.
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9. Core Marketing Concepts
 Needs, wants, demand
 Target market, positioning and segmentation
 Offerings and brand
 Value and satisfaction
 Market
 Exchange
 Product
 Marketing channels
 Supply chain
 Competition
 Marketing environment
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10. Needs, wants and demand
 Needs – states of felt deprivation
 Wants – specific satisfiers of needs shaped
by culture, economic condition as well as
individual personality
 Demand – human wants that are backed by
willingness, buying power and authority to
purchase.
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11. Segmentation, Targeting &
Positioning
 Market Segmentation: Dividing a market into distinct
groups with distinct needs characteristics or behaviors who
might require separate products or marketing mixes.
 Target Marketing: The Process of evaluating each market
segment’s attractiveness and selecting one or more
segments to enter.
 Positioning: Arranging for a product to occupy a clear,
distinctive and desirable place relative to competing
products in the minds of target customers.
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12. Marketing offer and brand
 Marketing offer: Some combination of products,
services, information or experiences offered to a
market to satisfy customer.
 Brand : Any word, sign, symbol etc. for
identification and differentiation of product. It
includes brand name, brand mark and trade mark.
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13. Value and Satisfaction
 Value – relationship between benefit and cost
 Satisfaction – Comparison between customer’s
expectation and product performance
 Expectation = performance
 Expectation < performance
 Expectation > Performance
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14. Market
 Is place a market?
 A market is the set of actual and potential buyers
of a product
 Marketers are keenly interesting in markets
 Marketer’s task is managing markets to bring
about profitable exchange relationship
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15. Exchange
 Exchange is the act of obtaining a desired product
from someone by offering something in return
 Transaction is marketer’s unit of measurement
 A transaction consists of a trade of values between
two parties.
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16. Product
 Anything offered by the marketer for customer’s
satisfaction
 There are five levels of products
 Core product
 Actual product
 Augmented product
 Expected product
 Potential product
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17. Marketing Channel
 Communication channel – Radio, TV, newspaper,
magazine etc
 Distribution channel – Agent, wholesaler, retailer
etc.
 Service channel – transport co., warehouse, bank
and insurance co. etc.
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18. Supply Chain
 Supply chain is a longer channel stretching
from raw materials to components to final
products that are carried to final buyers.

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19. Competition
 Competition includes all the actual and
potential rivals offerings and substitutes a
buyer might consider.
 Competition may be:
 price competition or non-price competition
 brand competition
Monopoly, monopolistic or perfect competition
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20. Marketing Environment
 The actors and forces outside marketing that affect
marketing management’s ability to build and
maintain successful relationships with target
customers.
 It includes: Micro environment and macro
environment
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21. The New Marketing Realities
 Technology
 Globalization
 Social Responsibility
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22. Company orientation towards
the market place
 Production concept
 Product concept
 Selling concept
 New marketing concept
 Customer concept
 Societal marketing concept
 Holistic concept
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23. Traditional Four Ps
 Product
 Place
 Price
 Promotion
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24. Modern Marketing Management
four Ps (The new four Ps)
 People
 Process
 Programs
 Performance
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25. Marketing Management
 Marketing management is the art and science of
choosing target markets and getting, keeping, and
growing customers through creating, delivering
and communicating superior customer value.
 Philip Kotler and Kevin Lane Keller

26. Marketing Management Task
 Developing marketing strategies and plans
 Capture marketing insights & performance
 Connect with customers
 Build strong brands
 Shape the market offering
 Deliver value
 Communicate value
 Create successful long-term growth
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27. Customer Perceived Value (CPV)
 CPV is the difference between the prospective
customer’s evaluation of all the benefits and costs
of an offering and the perceived alternatives.

29. Total Customer Benefits
 Total customer benefit is the perceived monetary
value of the bundle of economic, functional, and
psychological benefits customers expect from a
given market offering because of the product,
service, people or image.

30. Total Customer Cost
 Total customer cost is the perceived bundle of
costs customers expect to incur in evaluating,
obtaining, using, and disposing of the given
marketing offering, including monetary, time,
energy and psychological costs.