Marketing involves creating, communicating, and delivering value to customers. It is a key function for ensuring demand and customer retention. The core concepts include understanding customer needs, wants, and demands to develop target markets and value propositions. Modern marketing realities include forces like technology, globalization, and increased competition. Key tasks for marketing managers are developing strategies, gathering customer insights, building brands, and delivering value to create long-term growth.

1. Marketing Management
By Philip, Kevin Lane Keller, Abraham Koshy, Mithileshwar Jha
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SUMMARY by
Chapter 1
Understanding Marketing
Management
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
Social marketing, as we shall come to see in this chapter.
Definition of
Marketing is increasingly becoming an important function in all organizations to ensure
Marketing that demand for a product or service persists along with customer retention.
Marketing is a
societal process by Scope of Marketing
which individuals A good marketer must be able to answer the following questions:
and groups obtain
what they need and What is Marketing?
want through The formal definition of marketing is, Marketing is an organizational function and a set
creating, offering of processes for creating, communicating and delivering value to customers and for
and freely managing customer relationship in ways that benefit the organization and its
stakeholders.
exchanging
products and What is Marketed?
services of value
with others. Some of the common entities that are marketed are goods, services, events,
experiences, persons, places, properties, organizations, information and ideas.

2. Chapter 1 - Understanding Marketing Management
Who Markets?
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
The five key management.
Eight demand states are possible:
functions of a • Negative demand
• Nonexistent demand
marketing • Latent demand
manager or •
•
Declining demand
Irregular demand
CMO are: • Full demand
• Overfull demand
• Unwholesome demand
• Strengthening
The key customer markets are consumer markets, business markets, global markets,
the brand
non-profit and governmental markets.
• Measuring
marketing
effectiveness
Core Marketing Concepts:
• Driving new
product • 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.
development
• Wants - form that a human need takes as shaped by culture and individual
based on personality i.e. I want a hamburger, French fries, and a soft drink.
customer needs • Demands - human wants backed by buying power. i.e. I have money to buy this
meal.
• Gathering
• Target Markets are the market segments identified by the marketer which
meaningful
present the greatest opportunity.
customer • Value Proposition is a set of benefits that companies offer to customers to
insights satisfy their needs. The intangible value proposition is made physical by as
offering. A brand is an offering from a known source.
• Utilizing new
• Value reflects the sum of the perceived tangible intangible benefits and costs to
marketing customers. Satisfaction reflects a person’s judgements of a product’s perceived
technology 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.

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