This document provides an overview of key marketing concepts and definitions. It begins by defining marketing and discussing the traditional and modern concepts of marketing. It then explains the differences between marketing and selling, and discusses the 4Ps of marketing - product, price, place, and promotion. The document also covers customer value and satisfaction, the evolution of marketing approaches over time, elements of the marketing concept like production and product concepts, and provides examples of companies that employ the marketing concept.

1. MODULE 1
MARKETING MANAGEMENT
BY
PRASANNA H N
ASST PROFESSOR
MBA, SVCE

2. MEANING AND DEFINITION
• Marketing is a form of communication between a
business house and its customers with the goal of
selling its products or services to them. Goods are not
complete products until they are in the hands of
customers.
• Marketing is that management process through which
goods and services move from concept to the
customer. Marketing has less to do with getting
customers to pay for a product as it does with
developing a demand for that product and fulfilling
the customer’s needs.

3. MEANING AND DEFINITION
According to the American Marketing Association
(AMA) Board of Directors, Marketing is the activity,
set of institutions, and processes for creating,
communicating, delivering, and exchanging offerings
that have value for customers, clients, partners, and
society at large.

4. MEANING AND DEFINITION
• Dr. Philip Kotler defines marketing as “the science and
art of exploring, creating and delivering value to
satisfy the needs of a target market at a profit.
Marketing identifies unfulfilled needs and desires. It
defines, measures and quantifies the size of the
identified market and the profit potential. It pinpoints
which segments the company is capable of serving
best and it designs and promotes the appropriate
products and services.”
• Thus, marketing refers to all the activities involved in
the creation of place, time, possession and awareness
utilities and beyond.

5. MARKETING CONCEPTS-
TRADITIONAL AND MODERN
• Concept is a philosophy, attitude, a line of
thinking, an idea or notion to relating any
aspects of divine and human creations. The
philosophy of an organization in the dynamic
creation of marketing is referred to as a
marketing concept. Thus, marketing concept is
a way of life in which the resources of an
organization are mobilized to create, stimulate
and satisfy the consumer at a profit

6. TRADITIONAL/ CLASSICAL CONCEPT
• According to this concept, marketing consists of those
activities which are concerned with the transfer of
ownership of goods from producers to consumers.
Here, the role of physical distribution and marketing
channels is over emphasized. It refers to marketing as
the process by
•
which goods are made available to ultimate consumers
from their place of origin. The emphasis of marketing is
on sale of goods and services. Consumer satisfaction is
overlooked.
•

7. MODERN CONCEPT
• According to this concept, marketing is concerned with
the creation of consumers. According to the modern
thinker Peter Drucker, Marketing is so basic that it
cannot be considered as a separate function. It is the
whole business seen from the customers’ point of
view…business success is not determined by the
producer but the customer.
• Thus, the modern concept lays greater emphasis on
customers and considers them as kings. Marketing is
not merely a physical process but is something beyond
that. It is the managerial philosophy which centres
around the wants and desires of customers.

8. TRADITIONAL CONCEPT vs. MODERN
CONCEPT
• Traditional marketing starts from production and ends with sale but
modern marketing includes planning, product, price, promotion, place,
people, after sale service etc.
• Traditional marketing concentrate on favorable products, but modern
marketing concentrates on customer needs, wants and satisfaction.
• In traditional marketing, only those products are sold which the
producer produces. No focus is laid on consumer preference. On the
other hand, modern marketing indulge in production only after
analyzing consumer demands.
• Traditional marketing is product and production oriented while modern
marketing is consumer oriented.
• The target of traditional marketers was to earn maximum profit by
maximizing sales. But, the main motive of modern marketers is to earn
profits through satisfaction of consumer needs.
• The principle of traditional market was “caveat emptor” i.e., “let the
buyer beware”. Whereas, the principle followed by modern market is
“caveat venditor” i.e., “let the vendor beware”.

9. SELLING vs. MARKETING
• It is a common error committed when people say they are going
for marketing when they actually go to the market to purchase
goods/ services. Well, it is simply buying from consumers’ end
and selling from the sellers’ end. Marketing is a wider term than
selling. Let us now see how selling differs from marketing.

10. MARKETING SELLING
1. It begins before sale and continues
aftersale.
2. It focuses on consumer needs.
3. It has long term perspective
aiming forgrowth and stability.
4. It is a philosophy of business.
5. Here, customer comes
first,thenproduct.
6. It has wider scope.
1. It begins after production and ends
withthe sale.
2. It focuses on seller’s needs.
3. It has short-term perspective.
4. It is a routine day to day physical
process.
5. Here, product comes
first,thencustomers.
6. Its scope is narrower as
compared tomarketing.

11. Difference between Market and Marketing
Market Marketing
Definition
A place where buyers and sellers
meet to exchange goods and
services
Marketing is a method that
determines human nature, their
demand and a need to satisfy them
Type of Process
It is a process where the demand
and supply fix the price of a
commodity
It is a process of researching,
analyzing, creating and delivering
the best to the customer.
Scope of the concept
Market is a confined concept Marketing is a comparatively bigger
concept that includes a wide range
of activities
Variation
The market varies by product,
place, demand
Marketing remains same
irrespective of product
Target audience
Anyone Specific

12. What is Needs?
• Needs are basic or advanced urges or
demands that lead us to take an appropriate
action to fulfill them. In terms of marketing,
needs are the gaps which the companies try to
fulfill with their products and services. The entire
field of business and management is built around
fulfilling the needs and demands of the customer
hence making needs one of the most important
aspect.

13. 5 Types of Needs in Marketing
• Need, in terms of marketing can be divided into the following five types:
• 1. Stated
• Stated Needs are the ones which are specified clearly by the customer or
the market. They are also the expected needs for a particular product or
service. These needs are at the most basic level without which the need
cannot be qualified. e.g. I need food to eat and i feel like having a
sandwich.
• 2. Real
• Real needs are at one level above the stated needs and put a boundary
on the above. Real needs define the parameter which are immediate to
defining and fulfilling the need. e.g. I need a cheese sandwich at
affordable price.
• 3. Unstated
• Unstated needs are which are not obvious but are expected by the
customer. These are the needs which can be used to differentiate by the
companies while designing the products to fulfil the needs of the
customer. e.g. I need basic vegetables to be added as part of my
sandwich. It should not be just a single slice cheese plain sandwich.

14. 5 Types of Needs in Marketing
• 4. Delight
• Delight needs are the needs which provide the 'wow'
factor. These needs like unstated needs can make some
products more popular than the other if they meet these
needs. e.g. The quality of the cheese used to be the best
one with special sauce but still the price of the sandwich
would be below 2$.
• 5. Secret
• These are the needs which a customer might not state or
realize but can be one of the main reasons for choosing a
particular product to fulfil the basic stated need. e.g. i need
this sandwich to quickly eat my food and look cool.

15. Example of Needs
• For example a customer wants to buy a car.
• When consumer says he wants something, like an expensive car, that is
his stated need.
• When the consumer wants a car for rational, genuine need, like he wants
a car whose operating costs are low over a time, and not just a low initial
price, this is his real need.
• In buying this car, the consumer also expects a good service from the
dealer. This is the unstated need.
• When the consumer doesn’t explicitly express that he would want
something but would like to have it anyway, say for example he would
like the car dealer to include an onboard GPS navigation system too; this
becomes a delight for him.
• Lastly, there is a desire seldom shown, this may be a secondary benefit of
obtaining the product, yet equally important or might as well be the main
reason, but not expressed so readily. For example, here the consumer
wants a car for the status symbol so that he can show his friends that he
is a savvy consumer. This is when he has a secret need to appear to fit in.

16. The functions of marketing
• 1. Identify needs of the consumer
• 2. Planning
• 3. Product Development
• 4. Standardisation and Grading
• 5. Packing and Labelling
• 6. Branding
• 7. Customer Service
• 8. Pricing
• 9. Promotion
• 10. Distribution
• 11. Transportation
• 12. Warehousing

17. Evolution of Marketing
• The Production Era
(1800s to 1920s)
• • production creates demand
• • products will sell themselves
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18. Evolution of Marketing
• The Sales Era (1920s to 1960s)
• • production is greater than demand
• • hire salespeople to find new markets and
consumers
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19. Evolution of Marketing
• The Marketing Concept Era(1960s to
1980s)
• strive to achieve organization’s goals and
satisfy consumer needs
• marketing is integrated into each phase of
business starting before production

20. Evolution of Marketing
• The Marketing Orientation Era
(1980s to today)
• • continuously collect information about
consumers’ needs, competitors
• • share this information with other
departments and use it to create consumer
value

21. CUSTOMER VALUE & SATISFACTION
• Customer value is the
difference between the total
benefits expected from a
product/service and the total
costs incurred to obtain that
product or service.
• Value refers to the perceived
worth or usefulness that a
person assigns to something,
such as a product or service.
This can be influenced by a
variety of factors, including the
quality, price, and features of
the product or service, as well
as the individual's personal
preferences, needs, and beliefs.
• On the other hand, customer
satisfaction refers to the
difference between the actual
performance experienced by a
customer and the expectation
of the customer.
• Satisfaction, on the other hand,
refers to the feeling of pleasure
or contentment that a person
experiences after using or
consuming a product or service.
It reflects the degree to which
the product or service meets
the individual's expectations
and needs, and it can be
influenced by factors such as
the product's performance,
reliability, and ease of use.

22. The 4 Ps of Marketing
• A marketing mix refers to a
framework that uses the four
Ps of product, price,
placement, and promotion.
• This concept traces back to
1960, when marketing
professor E. Jerome McCarthy
first published it in a book
entitled Basic Marketing: A
Managerial Approach.
• The different elements of a
marketing mix work in
conjunction with one another
with the ultimate purpose of
generating higher sales.
• In addition to the 4 Ps,
three approaches can
also be integrated that
include people, process,
and physical evidence to
reinforce a consumer-
centric type of marketing
strategy.
• This type of strategy
extends beyond a
product-focused
marketing approach.

23. What Is a Marketing Mix?
• A marketing mix includes multiple
areas of focus as part of a
comprehensive marketing plan. The
term often refers to a common
classification that began as the four
Ps: product, price, placement, and
promotion.
• Effective marketing touches on a
broad range of areas as opposed to
fixating on one message. Doing so
helps reach a wider audience, and
by keeping the four Ps in mind,
marketing professionals are better
able to maintain focus on the things
that really matter. Focusing on a
marketing mix helps organizations
make strategic decisions when
launching new products or revising
existing products.

24. Product
• This represents an item or
service designed to satisfy
customer needs and wants.
• To effectively market a
product or service, it's
important to identify what
differentiates it from
competing products or
services.
• It's also important to
determine if other products
or services can be marketed
in conjunction with it.

25. Price
• The sale price of the product
reflects what consumers are
willing to pay for it.
• Marketing professionals need
to consider costs related to
research and development,
manufacturing, marketing,
and distribution—otherwise
known as cost-based pricing.
• Pricing based primarily on
consumers' perceived quality
or value is known as value-
based pricing.

26. Place
• When determining areas of
distribution, it's important to
consider the type of product
sold.
• Basic consumer products,
such as paper goods, often
are readily available in many
stores.
• Premium consumer
products, however, typically
are available only in select
stores.

27. Promotion
• Joint marketing campaigns are
called a promotional mix. Activities
might include advertising, sales
promotion, personal selling, and
public relations. One key
consideration is the budget assigned
to the marketing mix.
• Marketing professionals carefully
construct a message that often
incorporates details from the other
three Ps when trying to reach
their target audience. Determination
of the best mediums to
communicate the message and
decisions about the frequency of the
communication also are important.

28. Elements of Marketing Concept
• 1. The Production Concept
• 2. The Product Concept
• 3. The Selling Concept
• 4. The Marketing Concept
• 5. The Societal Marketing

29. Production Concept
• Production Concept is a concept where
goods are produced without taking into
consideration the choices or tastes of the
customers.
• It is one of the earliest marketing concepts
where goods were just produced on the
belief that they will be sold because
consumers need them.
• Managers focusing on this concept
concentrate on achieving high production
efficiency, low costs, and mass distribution.
• They assume that consumers are primarily
interested in product availability and low
prices.
• This orientation makes sense in developing
countries, where consumers are more
interested in obtaining the product than in
its features.

30. Product Concept
• The product concept proposes that consumers
will prefer products that have better quality,
performance and features as opposed to a
normal product.
• A company should therefore focus on its
product development and invest in continuous
product improvements.
• The concept is truly applicable in some niches
such as electronics and mobile handsets.
• Managers focusing on this concept concentrate
on making superior products and improving
them over time.
• They assume that buyers admire well-made
products and can appraise quality and
performance.
• However, these managers are sometimes so
proud of their product that they do not realize
what the market needs.

31. Selling Concept
• The Selling Concept proposes that
customers, be individual or organizations will
not buy enough of the organization‘s
products unless they are persuaded to do so
through selling effort.
• So organizations should undertake selling
and promotion of their products for
marketing success.
• The consumers typically are inert and they
need to be forced for buying by converting
their inert need in to a buying motive
through persuasion and selling action.
• The consumers typically show buying inertia
or resistance and must be coaxed into
buying.
• The aim is to sell what they make rather than
make what the markets wants.
• Such marketing carries high risks.
• It focuses on creating sales transactions
rather than on building long term, profitable
relationships with customers.

32. Marketing Concept
• It holds that the key to achieving its organizational
goals consists of the company being more effective
than competitors in creating, delivering, and
communicating customer value to its selected target
customers.
• Let‘s take an example of 2 eternal rivals – Pepsi and
Coke – Both of these companies have similar
products.
• However the value proposition presented by both is
different.
• These companies thrive on the marketing concept.
• Where Pepsi focuses on youngsters,
• Coke delivers on a holistic approach.
• Also the value proposition by Coke has been better
over ages as compared to Pepsi which shows that
coke especially thrives on the marketing concept, i.e.
it delivers a better value proposition as compared to
its competitor.

33. Examples of Marketing
Concept
• United Airlines
You‘re The Boss
• Burger King Have
It Your Way
• General Electric
We‘re Not
Satisfied Until
You Are

34. • The human concept,
• The intelligent consumption
concept,
• The ecological imperative
concept, &
• Cause- related marketing.
• The societal marketing concept calls
upon marketers to balance three
considerations in setting their
marketing policies, viz.
• company profits
• consumer satisfaction
• public interest
Societal Marketing concept focuses on:
• Less Toxic Products
• More Durable Products
• Products with Reusable or
Recyclable Material
The Societal Marketing

35. Real-life Examples of
Societal Marketing
• Adidas
• Adidas is one of the top
leading sportswear
companies in the world.
When it comes to the
environment, Adidas is
committed to
manufacture its products
that could be reused
over and over again.
• Coca Cola
• Coca Cola is the top soft drinks
company, and Coca-cola is also
committed to the social-environmental
responsibilities by providing products
across the world regardless of their
ethnicities.
• The company actively promotes
recycling programs, supports
educational and environmental
initiatives, and advocates for
responsible consumption. By aligning
its brand with social and ecological
values, Coca-Cola enhances its
reputation and resonates with socially
conscious consumers.
Marketing Environment

36. Marketing Environment

37. Meaning of Marketing Environment
Marketing environment consists
of all those internal and
external forces which affect
the marketing strategies.
Modern marketer realizes that
environmental scanning would
provide them with continuous
interaction between the
customers and the business
they are in.
According to Philip Kotler “
Marketing environment as the
external factors and forces
that affect a firm’s ability to
develop and maintain
successful transactions and
relationships with the target
customers.”

38. Nature of Marketing environment
The marketing environment of a business firm may be static or dynamic
when the environment forces do not show a significant change, it is
termed as stable or static environment. And when significant changes are
seen in the environment forces it is termed as dynamic environment. But
the degree and nature of change is predictable.
There are some other forces
in the environment which
have considerable influences
on the marketing strategies
of a firm are listed below;
1. Increased Competition
2. Labour unrest
3. Social changes
4. Technological changes
5. Change in fashion

39. Components Or factors affecting
marketing environment
These forces are either internal
or external to the firm. The
components of marketing
environment or the
forces/factors affecting the
marketing environment can
be grouped in two broad
categories:
I. Controllable or Internal
Marketing Environment
II. Uncontrollable or External
Marketing Environment

40. Controllable or Internal marketing
environment
Marketing environment includes all factors that
effect marketing policies, decisions and
operations of a company. The internal
environment of a firm include controllable
factors or variables such as product design,
branding packaging, pricing, advertising and
distribution policies of the firm. A firm or a
company can achieve its marketing objectives
by selecting a balanced Marketing Mix.
Marketing Mix The policies adopted by
manufacturers to attain success in the
marketing constitute the marketing mix.
Marketing Mix is considered as an important
part of marketing system of the company. It is
controllable factor of marketing environment.

41. Uncontrollable or External Marketing
environment.
The external forces or factors which constitute
uncontrollable environment are divided into two
parts for the study purpose:
(i) Micro factor such as: Suppliers, Intermediaries,
Competitors, Customers and General public
(ii) Macro Factors such as: demographic, economic,
political, Legal, Technological, Social and Cultural.
These factors or forces influencing marketing
decision making are collectively called as
Marketing Environment.

42. Micro Marketing Environment
Micro environment factors are closely related to
a specific company/firm and are included as
part of the firm’s total marketing system.
Hence, marketers must get adequate
information about Internal Environment.
Micro marketing Environment
Company Suppliers Intermediaries Customers
Competitors Publics

43. Macro marketing environment
It consists of all uncontrollable as far as business
is concerned. A brief explanation of macro
environment
Macro Marketing Environment
Demographic
Environment
Economic
Environment
Socio-Cultural
Environment
Political
Environment
Legal
Environment
Technological
Environment
Competitive
Forces
Consumer
Demand
Ecological
Environment

44. Scanning of Marketing Environment
Though, future is unpredictable, but marketer can obtain
appraisals of what is ‘most probable’. To monitor changes in
the marketing environment effectively, marketer must
engage himself in the scanning and analysis of marketing
environment.
Advantages of scanning of marketing environment
There are several benefits that accrue to a marketer by
scanning of marketing environment, such as;
(a) Trendy products can be brought out in the market.
(b) Competitor moves can be anticipated and countered.
(c) Marketing mix strategy can be properly formulated.
(d) Adapting to the uncontrollable environment become easy.

45. Marketing to the 21st
century customer.
• The American Marketing Association defines
marketing as “the activity, set of institutions,
and processes for creating, communicating,
delivering and exchanging offerings that
have value for customers, clients, partners
and society at large.”
• Marketing has evolved significantly during
the last few decades. The marketing era that
began in the 1950s evolved into the
relationship marketing era in the 1990s and
transformed into the digital marketing era in
the first decade of the 21st century.

46. Rise of Digital
Marketing
• Marketing in the 21st century combines both traditional and digital
channels to promote products and services. Before the 21st
century, organizations had no advertising options other than
conventional channels such as newspapers, television, flyers and
radio to reach their target customers. They focused on mass
marketing campaigns to create awareness in the target market and
influence potential customers to make purchasing decisions.
• The arrival of the internet transformed the concept of promotion
into inbound marketing from outbound marketing. Inbound
marketing facilitates two-way interactive communication between
organizations and customers through search engines and social
media platforms, emails and content strategies.

47. Social Media Marketing
• Organizations use social networking
platforms such as Facebook, Twitter,
LinkedIn and Instagram extensively to
engage target audiences in interaction
and influence their behavior. Social media
has become a platform for people to
share opinions and purchase experiences.
• With appropriate marketing efforts to
channel these opinions and purchase
experiences, organizations spread positive
word-of-mouth through social media
platforms and increase conversion rates.
The benefits of social media marketing for
organizations are low cost and high
response rate.

48. Personalized Email Marketing
• Marketing in the 21st century focuses on adding value to
customers by educating and entertaining them through
digital platforms. Email marketing is a widely used tool for
sending personalized messages to customers and
persuading them to make purchases.
• Organizations in the 21st century have created opt-in
email lists to execute an email marketing campaign. An
opt-in email list comprises email addresses of individuals
who have shown an interest in services or products
offered by an organization.
• As reported by the Data and Marketing Association in
2019, organizations earn an average of $42 on every $1
they spend on email marketing. The Content Marketing
Institute in 2019 reported that nearly 87 percent of
organizations use emails to disseminate a personalized
promotional message to clients.

49. Content Marketing Strategy
• Content is king when it comes to
marketing in the 21st century. Small
and medium-scale organizations
extensively use search engine
marketing techniques to reach target
customers online.
• High-quality, unique and value-
added content is essential for
websites to achieve high ranks on
search engines such as Google,
Yahoo and Bing. The Google search
engine, in particular, emphasizes
quality content when ranking
websites. The content marketing
strategy in the 21st century is to help
organizations achieve objectives
such as engaging customers,
persuading them to make purchase
decisions, and developing brand
identity.

50. Traditional Marketing in the 21st
Century
• Though organizations have shifted to digital marketing in the
21st century, traditional marketing is not dead. Large-scale
organizations are still highly dependent on television and print
advertising to attract customers. The marketers of large-scale
organizations integrate traditional and digital marketing
strategies to create a suitable brand image for their products.
Meanwhile, small-scale organizations with a lower marketing
budget leverage digital marketing tools to bring more clients on
board.
• Marketing in the 21st century is a mix of both traditional and
digital marketing. Depending on the type of products,
marketing budget, size of the target market, and spending
habits of potential customers, organizations alter their
marketing strategies accordingly.