MARKETING MANAGEMENT I

1. INTRODUCTION

What is Marketing?

Marketing is an organizational function, a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organisation and its stake holders Marketing deals with identifying and meeting human and social needs Marketing is an art and science of choosing target markets and getting, keeping and growing customers through creating, delivering and communicating superior customer value

Core of Marketing
Core of Marketing is Exchange:

Two parties Goods and services of value Capable of communicating & delivering Free to accept or reject an offer Belief or trust Transaction (exchange or trade of values)

Types of Marketing Entities

Goods Services Events Experiences People Places Properties Organizations Information Ideas

Evolution of Marketing

Production Concept: Efficient Production, Low Costs, Cheap Products. Consumers are very interested in the product and buy what is available. Product Concept: Consumers buy products that offers them greater value and high satisfaction. New products and innovations, Technology goods. Selling Concept: Selling what is produced through persuasion. Not understanding the needs. Marketing Concept: Analyzing and understanding consumer needs, producing and selling.

Fundamentals of Marketing

Need

Basic requirements, necessary for a living, widens in perspective as a person moves up in social status

Want

Need directed towards specific objects, desire to buy / use something, moving towards satisfaction of a need
Want backed by ability to pay

Demand

Needs, Wants & Demands

Need

Want

Basic requirements Necessary for a living Widens in perspective as a person moves up the ladder in social status
Need directed towards specific objects Desire to buy / use something Moving towards satisfaction of a need Want backed by ability to pay

Demand

Maslows Hierarchy of Needs

Types & States

Needs Real Needs Stated Needs Unstated Needs Delight Needs Secret Needs

Demands Negative Demand Non-existent Demand Latent Demand Declining Demand Irregular Demand Full Demand Overfull Demand Unwholesome Demand

Factors influencing Want

Stimuli: Something that is capable of invoking a response Cultural, Social, Individual and Psychological Factors A long unfulfilled need Gap between the Present status and Preferred state

Marketers role in need recognition

Marketing invokes stimuli Marketing helps consumers recognise an imbalance between the present status and preferred state Marketing promises to bridge the gap thereby enabling the need to take its shape

Markets and Demand

Markets

Consumer markets, Business Markets, Global Markets and Non-profit and Governmental markets Negative Demand, Non-existent demand, Latent demand, Declining demand, Irregular demand, Full demand, Overfull demand and Unwholesome demand

Demand

Other concepts

Value: Reflects the ratio between the perceived benefits and costs to the customers. Satisfaction: Reflects the comparative judgments resulting from product performance. Offerings: A value proposition or set of benefits that the company promises to delivery through the basic product and its accomplices. Brand: An offering from a known source. Associations or links established to a particular product. Segmenting: Dividing the Market into distinct segments Targeting: Concentrating on that market which promises greater opportunity Positioning: A market offering developed for each market has a distinct position. Communicated based on the value propositions.

Marketing in 21st Century

Holistic Marketing

Relationship Marketing Building mutually satisfying relationship with stakeholders Integrated Marketing Integrating all the activities for increased benefits. Internal Marketing Participation and contribution from the entire organisation Social Responsibility Marketing Understanding moral, ethical and environmental concerns and addressing them.