Marketing involves creating, offering, and exchanging products and services to satisfy needs and wants through a societal process. It is a function that helps organizations manage customer relationships to benefit both parties. A marketer seeks responses from prospects to generate demand for offerings. The key functions of marketing managers are strengthening brands, measuring effectiveness, driving new product development, gathering customer insights, and using new technologies. Marketing philosophies and concepts have evolved from a production focus to prioritizing customer satisfaction and building relationships.

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Social
Definition 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.
Scope of Marketing
A good marketer must be able to answer the following questions:
Understanding Marketing
Management
Chapter 1
What is Marketing?
Marketing Management
By Philip, Kevin Lane Keller, Abraham Koshy, Mithileshwar Jha
SUMMARY by
Marketing is an essential art and science that is engaged in a vast number of activities
by both persons and organizations. It has become an increasingly vital ingredient in the
success of a business. Good marketing is the result of careful planning and execution.
There are two sides to marketing – the formulated side and the creative side. It is
important to lay the foundation in marketing concepts, tools, frameworks and issues of
the formulated side while at the same time instil the real creativity and passion for
marketing, as we shall come to see in this chapter.
Marketing is increasingly becoming an important function in all organizations to ensure
that demand for a product or service persists along with customer retention.
The formal definition of marketing is, Marketing is an organizational function and a set
of processes for creating, communicating and delivering value to customers and for
managing customer relationship in ways that benefit the organization and its
stakeholders.
Some of the common entities that are marketed are goods, services, events,
experiences, persons, places, properties, organizations, information and ideas.
What is Marketed?

2. A marketer is someone who seeks a response, attention, purchase, vote, donation etc
from another party called the prospect. Marketing managers are responsible for demand
management.
Eight demand states are possible:
• Negative demand
• Nonexistent demand
• Latent demand
• Declining demand
• Irregular demand
• Full demand
• Overfull demand
• Unwholesome demand
The key customer markets are consumer markets, business markets, global markets,
non-profit and governmental markets.
Chapter 1 - Understanding Marketing Management
• Needs - state of felt deprivation for basic items such as food and clothing and
complex needs such as for belonging. i.e. I am hungry.
• Wants - form that a human need takes as shaped by culture and individual
personality i.e. I want a hamburger, French fries, and a soft drink.
• Demands - human wants backed by buying power. i.e. I have money to buy this
meal.
• Target Markets are the market segments identified by the marketer which
present the greatest opportunity.
• Value Proposition is a set of benefits that companies offer to customers to
satisfy their needs. The intangible value proposition is made physical by as
offering. A brand is an offering from a known source.
• Value reflects the sum of the perceived tangible intangible benefits and costs to
customers. Satisfaction reflects a person’s judgements of a product’s perceived
performance.
• To reach a target market a marketer uses different marketing channels like
communication channels, distribution channels and service channels.
• Supply chain is a longer channel stretching from raw materials to components
to final products that are carried to final buyers.
Who Markets?
Core Marketing Concepts:
The five key
functions of a
marketing
manager or
CMO are:
• Strengthening
the brand
• Measuring
marketing
effectiveness
• Driving new
product
development
based on
customer needs
• Gathering
meaningful
customer
insights
• Utilizing new
marketing
technology

3. New
Marketing
Realities:
Some of the major
societal forces that
marketers have to
deal with today are
network
information
technology,
globalization,
deregulation,
privatization,
heightened
competition,
industry
convergence,
consumer
resistance, retail
transformation and
disintermediation.
The major marketing philosophies are:
• The Production Concept
o Consumers favor products that are available and highly affordable.
o Improve production and distribution.
• Product Concept
o Consumers favor products that offer the most quality, performance, and
innovative features.
• Selling Concept
o Consumers will buy products only if the company promotes/ sells these
products.
• Marketing Concept
o Focuses on needs/ wants of target markets & delivering satisfaction better
than competitors.
• Societal Marketing Concept
o Focuses on needs/ wants of target markets & delivering superior value.
• Holistic Marketing Concept
o Based on the development, design and implementation of marketing
programs, processes and activities that recognize their breadth and
interdependencies.
• Relationship Marketing
o Aims to build mutually satisfying long-term relationships with key
constituents in order to earn and retain their business.
Chapter 1 - Understanding Marketing Management
Company orientation towards Marketplaces:
Marketing Management Tasks:
The following are the most important marketing management tasks:
• Developing Marketing Strategies and Plans
• Capturing Marketing Insights
• Connecting with Customers
• Building Strong Brands
• Shaping the Marketing Offerings
• Delivering Value
• Communicating Value
• Creating Long-Term Growth