Marketing Management

Minor elective
MBMI -12
 Unit 1

Introduction to marketing
EVOLUTION OF MARKETING CONCEPT
NO MARKETING ACTIVITY - Self sufficiency stage

BARTER SYSTEM - Exchange Oriented stage

THE PRODUCTION CONCEPT- Production oriented stage (1869-1930)

THE PRODUCT CONCEPT

THE SELLING CONCEPT - Sales oriented Stage (1930-1950)

THE MARKETING CONCEPT Market oriented stage(1950-1960).

HOLISTIC MARKETING CONCEPT - Consumer Oriented stage

 Holistic Marketing concept

Relationship marketing
Integrated marketing
Internal marketing
Social Responsibility Marketing
 Company orientation towards the
Market place
THE PRODUCTION CONCEPT- Amma Water, Amma canteen
THE PRODUCT CONCEPT Tea shops, Bakery
THE SELLING CONCEPT - Vegetable cutter, juice maker, Coffee
maker

THE MARKETING CONCEPT FMCG, consumer durable goods

HOLISTIC MARKETING CONCEPT Automobiles, Banks
 Selling Vs. Marketing

Point of
difference Selling Marketing

Starting point Factory Marketplace

Focus Existing products Customer needs

Means Selling and promoting Integrated marketing

End Profits through volume Profits through satisfaction

 Core Marketing Concept
Need
Want
Demand
Product or Offering
Brand
Value
Satisfaction
 Types of Demand
Eight demand states are possible:
1. Negative demandconsumers dislike the product and may even pay a price to
avoid it.
2. Non-existent demandconsumers may be unaware or uninterested in the
product.
3. Latent demandconsumers may share a strong need that cannot be satisfied by
an existing product.
4. Declining demandconsumers begin to buy the product less frequently or not at
all.
5. Irregular demandconsumer purchases vary on a seasonal, monthly, daily, or
even an hourly basis.
6. Full demandconsumers are adequately buying all product put into the
marketplace.
7. Overfull demandtoo many consumers would like to buy the product than can
be satisfied.
8. Unwholesome demandconsumers may be attracted to products that have
undesirable social consequences.
 Product or Offerings
Goods
Service
Event
Experience
Person
Places
Properties
Organizations
Information
Idea
 DEFINITION OF MARKETING
Product Oriented Definition

In1985 AMA redefined marketing as Marketing is 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.

Customer- Oriented Definition

In the words of Philip Kotler Marketing is the human activity directed at satisfying
needs and wants through an exchange process.

Value Oriented Definition (Modern Definition)

In 2004 the American Marketing Association defined Marketing is an organizational

function and a set of processes for creating, communicating and delivering value to
customers and for managing customer relationships in ways that benefit the
organization and its stakeholders.
 THE SCOPE OF MARKETING
1. What Is Marketing?

Marketing deals with identifying and meeting human and social needs. One
of the shortest definitions of marketing is meeting needs profitably.

The American Marketing Association offers the following formal definition:

Marketing is 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.

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.

A social definition of marketing is that 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.
 THE SCOPE OF MARKETING
2. Exchange and Transactions

There are at least two parties.

Each party has something that might be of value to the other party.
Each party is capable of communication and delivery.
Each party is free to accept or reject the exchange offer.
Each party believes it is appropriate or desirable to deal with the
other party.
Exchange is a value-creating process because it normally leaves
both parties better off.
A transaction is a trade of values between two or more parties and
involves several dimensions
 THE SCOPE OF MARKETING
3. What Is Marketed?

Goods: Physical goods constitute the bulk of production and marketing efforts.
Services: Banking service, insurance service, IT service, event management service.
Events: Time-based events such as trade shows, artistic performances, and the
Olympics.
Experiences: Theme park, Fitness center, Yoga, Meditation
Persons: Celebrity marketing is a major business.
Places: Cities, states, regions, and whole nations compete actively to attract
tourists.
Properties: Are intangible rights of ownership (real property: real estate) or
(financial property: stocks and bonds).
Organizations: Actively work to build a strong, favorable, and unique image in the
minds.
Information: Can be produced and marketed as a product. (Schools, universities)
Ideas: Every market offering includes a basic idea.