This document provides an overview and introduction to marketing concepts. It discusses the evolution of marketing from production and sales eras to the current marketing era. Key concepts covered include the marketing mix (4Ps), customer orientation, exchange and utility, needs and demand, and different company orientations towards marketing. The document also introduces marketing management processes, dynamics of marketing in modern business environments, and expands the traditional marketing mix (4Ps) to include related concepts like the 4Cs from a customer perspective.

1. MARKETING MANAGEMENT- 1
DR. SANJEEV TANDON

2. Marketing Management (MM1)
(Program: PGDM, Course Code:1.2)
UNIT: I- Introduction to Marketing
Objectives:
• To understand the concepts of Marketing.
• To discuss the Orientation of Marketing.
• To explain the concept of Marketing Mix (4P’s), 4C’s &
4 A’s.

3. OVER VIEW OF MARKETING

6. • Term ‘market’ originates from the Latin noun
‘Marcatus’ which means ‘a place where business
is conducted’.
• A layman perceives ‘market’ as a place where
buyers and sellers personally interact and finalise
deals.
• Philip Kotler has defined the market as “an arena
for potential exchanges”

9. • Origin of Marketing
• The Evolution of Marketing:
• Nature of Marketing
 Both consumer and competition oriented
 Starts with consumers and ends at customers by
satisfying their needs
PRODUCTION
ERA
SALES ERA MARKETING
ERA

10. Definition Of Marketing
SOCIAL DEFINITION
The American Marketing Association (AMA)
defines marketing as, “ A social 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.”

11. AMA. ALSO DEFINES MARKETING AS:
“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 goals”

12. PETER DRUCKER, a leading mgmt. theorist puts it this
way:
“There will always, one can assume, be need for some
selling . But the aim of marketing is to make selling
SUPERFLUOUS .The aim of marketing is to know and
understand the customer so well that the product or
service fits him and sells itself. Ideally, marketing
should result in a customer who is ready to buy. All
that should be needed then is to make the product
or service available.”

13. Marketing deals with products and the marketing people
are involved in marketing 10 TYPES OF ENTITIES:
GOODS, SERVICES , EXPERIENCES , EVENTS , PERSON ,
PLACES , PROPERTIES, ORGANISATIONS,INFORMATION
AND IDEAS
Marketing can be summed up as consisting of:
 Sales in a planned way
 Creation of customers
 Creation of demand and satisfying it.

14. CONCEPT OF EXCHANGE
• One of major functions of marketing is to create
an environment of EXCHANGE
• One person gives something of value, in return for
something of value from another person
• For e.g. BARTER SYSTEM in olden days and
exchange products with money in today's world.

15. NEEDS AND WANTS
• NEEDS – basic requirements for the existence of
LIFE , such as FOOD, CLOTHING , SHELTER , and
belongings
• WANTS – arises when the basic needs are satisfied
• A product , may be perceived by one customer as a
want and as need by another

16. Types of Needs
• Stated Needs
• Real Needs
• Unstated Needs
• Delight Needs
• Secret needs

17. Demand
• Demand in economics is the consumer's desire
and ability to purchase a good or service.
• Demand is the quantities of a commodity or
a service that people are willing and able to buy
at various prices, over a given period of time.
• It's the underlying force that drives economic
growth and expansion.

18. • Eight demand states are possible:
 Negative Demand
 Nonexistent Demand
 Latent Demand
 Declining Demand
 Irregular Demand
 Full Demand
 Overfull Demand
 Unwholesome Demand

19. ECONOMIC UTILITY
• “The extent to which a product satisfies customer
needs and wants is called UTILITY”
• Amount of satisfaction a customer derives after
consuming the product
4 TYPES OF UTILITY TO THE TGT.CUSTOMERS
• FORM UTILITY
• TIME UTILITY
• PLACE UTILITY
• POSSESSION UTILITY

20. • The Marketing Concept Rests on 4 Pillars:
 Target Market
 Customer Needs
 Integrated Marketing
 Profitability

21. • SCOPE OF MARKETING:
-- Scope of marketing is very wide
Marketing
Functions
Function of
Exchange
Function of
Physical
Distribution
Function of
Facilities
1. Buying
Function
2. Assembling
Function
3. Selling
Function
1. Transportation
2. Inventory Mgt.
3. Warehousing
4. Material
Handling
1. Financing
2. Risk Taking
3. Standarisation
4. After-Sales
Service

22. What Are the
Marketing Functions?
• Interrelated activities working
together to get products from
producers to customers
 Product/Service
management
 Marketing-information
management
 Pricing

23. What Are the
Marketing Functions?
• Interrelated activities working
together to get products from
producers to customers
 Channel management
 Promotion
 Selling

24. MARKETING MGT. PROCESS:
I. Product Policy or Planning
(A) Marketing Research:
a) Identifying the customer requirements
b) Collection of data
c) Analysis of data and
d) Findings/Conclusions
(B) Motivational Research
(C) Test Marketing
II. Distribution
(A) Channels of distribution
a) Manufacturer --- Distributor--- Wholesaler ---Retailer ---Consumer
b) Manf.--- Wholesaler --- Retailer --- Consumer
c) Manuf. --- Retailer --- Consumer
d) Manuf. --- Consumer

25. (B) Transportation
(C) Warehousing
III. Sales Planning
IV. Sales Mgt.
V.Miscellaneous Marketing Activities
The 4 P’s of marketing mix

26. Orientation to Marketing

28. Company Orientations Towards the Market Place:
 the Production Concept
 the Product Concept
 the Marketing Concept
 the Customer Concept
 the Societal Marketing Concept

38. MARKETING DYNAMICS
Company Responses and Adjustments
 Reengineering
 Outsourcing
E-commerce
 Benchmarking
 Alliances

39. Partner-Suppliers
 Market-Centered
 Global and Local
 Decentralized
Marketers Responses and Adjustments
 Customer Relationship Marketing
 Customer Lifetime Value
 Customer Share

40.  Target Marketing
 Customization
 Customer Database
 Integrated Marketing Communications
 Channels as Partners
 Every Employee a Marketer
 Model-Based Decision Making

41. Introduction to Marketing Mix

43. MARKETING MIX
Product
Product variety
Quality
Design
Features
Brand name
Packaging
Sizes
Services
Warranties
Returns
Price
List price
Discounts
Allowances
Payment
period
Credit
terms
Promotion
Sales
promotion
Advertising
Sales force
Public
relations
Direct
mktg.
Place
Channels
Coverage
Assortments
Locations
Inventory
Transport
Tgt.
market

44. Marketing Mix
“ Set of marketing tools the firm uses to pursue its
marketing objectives in the target market.”
McCarthy classified these tools into 4 broad groups that he
called the “4 Ps of Marketing”:
Product
Price
Place
Promotion

45. • Marketing Mix Strategy:
Promotional Mix
Offering Mix
Company---
Products, Services,
Prices
 Sales
promotion
 Advertising
 Sales force
 Public
relations
 Direct mail,
telemarketing
Distribution
Channels
Target
Customers

47. • Robert Lauterborn suggested sellers 4P’s
correspond to the customer’s 4 C’s
• 4 P’s--- product 4C’s--- Customer solution
Price Customer cost
Place Convenience
Promotion Communication

50. Introduction to Service Marketing

64. Service Marketing-Mix