1Mkt'g mgmt

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MARKETING

� ³THE PROCESS OF PLANNING &

EXECUTING THE CONCEPTION,

PRICING , PROMOTION, ANDDISTRIBUTION OF GOODS &

SERVICES TO CREATE EXCHANGE

THAT SATISFY INDIVIDUAL &

ORGANIZATIONAL GOALS´



Mkt¶g mgmt

� Process involves:-

Planning, analysis, implementation, & control

� M.M can occur in an org. in connection with any

market:-

� Eg:- Automobile industry

V.P of personal deals in Labour market

V.P. of purchasing deals in RM Market

V.P. of Finance deals in Money market



Mkt¶g works in customer market

� Carried out by:-

� Sales manager

� Advertising & prom. Manager

� Mkt¶g researcher � Customer service manager

� Product & brand manager

� Market & industry manager

� Mkt¶g V.PNb:- each job ( well defined tasks &

responsibilities)



Popular image of M.M

� Is to stimulate demand for co¶s product

� Influencing the:-

1) Level2) Timing

3) Composition of demand

In a way to helps co¶s objective



Other issues

� Many critical changes have taken place in

consumer & business market

� Aging pop¶n� An increasing no. of working women

� Later marriage

� More divorce & smaller families� Emergence of distinct ethnic consumer

group & needs



Evolution of mkt¶g

� Production Era ( Industrial revolution till

1920)

� Sales Era (1920 ± mid 1950)� Mkt¶g Era ( 1950 onwards)



Marketing as a demandmanagement



Mkt¶g is demand mgmt

� Marketer have ot influence 3 level of demand

Nature of demand

Level of demand

Time of demand

Latent demand

Unwholesome demand

-ive demandno demandFull demand

Over full demand

Regular demand

Irregular demand



Latent demand

³many consumer may share a strong need that

CANNOT be satisfied with EXISTING product´

Eg:- Harmless cigaretteMore fuel-efficient car

ROLE:-

Measure the size of potential market & developeffective goods that satisfy demand



Unwholesome demand

� ³Attrack organized effort to discourage

their consumption´

Eg:- un-selling campaign against:-Cigarettes

Alcohol

X-rated moviesLarge families



No demand

� ³Tgt consumer may be UNINTERESTED

or INDIFFERENT to product´

� Eg:Farmer¶s may not be interested in newfarming method

� College students««««.foreign method

ROLE:-Find way to connect benefit of product with

person¶s natural NEED



Over full demand

� ³org faces a demand level that is higher than they canor want to handle´

� Eg:- Al. collapsible tubes Prod¶n capacity

� Eg:-govt. hospital, MBA Programme ,Doctor¶s , cinema hall etc«

� Marketing Role:-

� De-marketing

� Find way to REDUCE DEMAND temporally /permanent

� Raising prices / reducing promotion / services



Coping with full demand

� Tactical alternative are:-

1. Prior reservation / appointment

2. Computer aided processing3. Assistance of capable person

4. Facilities of waiting without boredom



Regular of demand

� ³there may be even, steady , regular demandof product´

� Eg:- Toiletries , cosmetics

� Market share rise or decline due tocompetitive factor

� Mkt¶g role:-

1. Adopt aggressive strategies2. Heavy promotions

3. Intensive dist¶n

4. Product development



Irregular demand

� ³Org faces demand that varies´

� Seasonal , daily, hourly basis

� Ideal capacity or overcrowded capacity� Eg:- museum / hotels / cinema / world cup

� Mkt¶g Role:-

� ««.sychromarketing� To alter the same pattern of demand THRU

«flexible pricing / promotion / other incentive



Core concept of marketing



Core concept of mkt¶g

³ mkt¶g is a social & managerial process by whichindividual & groups obtain what they need &

want THRU creating ,offering, & exchanging

product of value with other´1) Need , want & demand

2) Products

3) Value, cost & satisfaction4) Markets

5) Mkt¶g & marketers



Need, want & demand

� Human need

³Is a state of felt deprivation of some basic

satisfaction´

People need ( food, air, water, F,C,S,

Strong desire ( Recreation, edu, etc.)

Strong preference for (Brands of basic goods &

services)



Human want

³ Are desire for specific satisfier of these deeper

needs´

� Person needs food & want a hamburger

� Person needs clothing WANTS RAYMOND

People¶s needs are few, but wants are many

� Human wants are shaped & reshaped by social

forces & inst.(church, school,families,&

business corp¶n



Human demand

³Are wants for specific products that are backedby an ability & willingness to buy them´

� Wants become demands when supported bypurchasing power

� Many people wants mercedes, only few areable to buy.

� Co¶s role:-

� measure1) how many people want &

2)how many would actually be willing & able to

buy.



Product

� P is anything that can satisfy N & W

� Importance of physical product lies:-

1) NOT so much in owning

2) As in obtaining the service they render

Eg:- Car , microwave oven, lipstick

M

arketer¶s role:-sell the benefits or service



Value , cost , satisfaction

� How consumer choose among many product?

� Guiding concept customer value

� Rank the product fm most need satisfying to theLEAST-need satisfying

� Eg:- Travel to destination



Exchange , transaction & relationship

� Mkt¶g emerge when people decide to satisfy N

& W thru exchange

� Exchange is one of 4 ways people can obtain

product:-

� 1)Self Prod¶n ( Hunting / fishing)

� 2)Coercin (steal food fm others)

� 3) begging (Hungry people) - gratitude

� 4) exchange ( Money)



Exchange map

� Want list of both the parties

Caterpillar

(marketer )Construction co.

(prospects)

�Good price for equipment�On time payment

�Good word of mouth

�High quality , durable equipment

�Fair price for value

�On time delivery of equipment

�Good financing term

�Good parts & services

Transaction involve:- 2 things of value

1) Agreed upon condition

2) A time of agreement & place of agreement



Markets

� ³The concept of exchange leads to the

concept of market´

� A market consists of all potential customer

sharing a particular NEED or WANT who

might be willing & able to engage in a

exchange to satisfy that need or want.



Structure of flow in a modern exchange

economy

Resource

market

Goverment.

market

Middlemen

market

Manufacture

Market

industry

Consumer

market

Money

Resources Resources

money

Taxesgoods

Service

money

Service moneyTaxes goods

serviceTaxes goods

Servicemoney

Taxes

goods

Goods & service Goods & service



� Outer loop shows an exchange of information

� Inner loop shows an exchange of money for goods

� Seller sells goods & service to market in return

receives money

� Manufacturer go to resource market (rm,labor,money) Buy resources & convert into goods &

service

� Govt: buys goods fm resources(mfg, middlemen)

pays them IT TAXES THIS MARKET



Marketing & marketer

� ³The concept of market brings us full

circle to the concept of marketing´

� Mktg means human activity taking placein relation to market.

� If one party is more actively seeking on

EXCHANGE than OTHER party

1. 1st party is marketer

2. 2nd party as prospect



Main element of modern mktg. system

ENVIROMENT

SUPPLIER

COMPANY

MARKETER

COMPETITOR

MARKETING

INTEMEDIARIES

END-USER

MARKET



Concept of marketing



COMPANY ORIENTATION

towards market place

� 5 competing concept under which org.

conduct their mkt¶g activities:-

1. The production concept2. The product concept

3. The selling concept

4. The marketing concept5. The societal marketing concept



Production concept

� ³consumer will favour those product that are

widely available & low in cost´

� Prod¶n manager achieving HIGH prod¶n

efficiency & wide dist¶n coverage

� Eg:-

� Nirma detergent



The product concept

� Holds that ³consumer will favour those product that

offer most QUALITY , PERFORMANCE, INNOVATIVE

features

� Manager making superior product & improving themover time

� Assumption:-

� Buyer admire well-made product

� Managers are caught in love affair with their product

� Eg:- Just for kids toothpaste

� Eg:- File mfg. (Assumption they are best in the world)

� Eg:- General motors (failed to ask customer)



The selling concept

� Holds that

� ³consumers if left alone will not buy enough of

org. products´� Org must take aggressive selling & promotion

efforts

� Eg:- Eureka forbes ( vaccum cleaners)



The marketing concept

� Holds that:-´ the key of achieving org.

goals consists in determining the needs &

wants of tgt market delivering the desired

satisfaction more effectively efficiently

than competitor´



Mktg concept rests on 4 main pillar

Factory

Target

market

ProductSelling

promoting

Profit thru

Sales

volume

Customer

needs

Co-ordinating

marketing

Profit Thru

Customer satisfaction

STARTING

POINTFOCUS MEANS ENDS

A) The Selling concept

B The marketin conce t



Target market

� No company can operate in every market &

satisfy every need

� Nor it can do good job in broad market

� Co¶s do best when they define their TGT market

carefully & prepare tailored made program



Marketing concept

1. Market focus:- who are our customer?seg. & tgt market

2. Consumer orientation:-

what are their needs?Consumer basedpractices

3. co-ordinated mktg: what must we do to wintheir preferences?

Integrated marketingwith other function



Eg:- HLL

� Successful marketer in India

� Oldest & largest soap in India why?

� Priced low «.within reach of common man

� Pkg. 150gm offer value for money

� Besides being hard working, long lasting

� ³Healthy´ positioning appeal since 60¶s

� ³tandurusti ki raksha´ catchy slogan

� Dream it sells of being winner



Customer need

� ³A company can define it tgt market BUTfail to understand it¶s need´

� Eg:- Chemical co. invented new substance

that hardened marble like material i.e tubbath

� Actually understanding customer need &

wants is not easy task� Customer seek in a code that require

some interpretation.



Eg:- customer who says he wants

³Inexpensive car´

� Distinguish among 5 types of need

1. Stated needs: customer wants inexpensive car

2. Real need:operating cost is low, not initial price

3. Unstated need:Expected good service fm dealer

4. Delight need: buys car & receive complimentary

5. Secret need: wants to be seen by friends as a value

oriented savvy customer



� Decide customer need fm customer point of

view1. What they want?

2. What they need?

3. What they really need?

³To meet the customer ³REAL NEED´ better than

any customer can

� Sales comes fm 2 group1. New customer

2. Repeat customer



A SATISFIED CUSTOMER

� Buys more & stay longer

� Buys additional product as co. introduces &

upgrades it¶s product

� Talks favorably about the company & it¶sproduct

� Pays less attention to competing brands &n

advt¶g� Offers product / service ideas to company

� Cost less than to serve new customer



Co. should measure customer

satisfaction

� How many are highly satisfied?

� Somewhat satisfied

� Somewhat dissatisfied

� Highly dissatisfied



Co-ordinated marketing

� NOT all the employees are trained & motivatedTO WORK for customer

� Eg:- production & sales dept.

� Eg:- Mkt¶g v.p wants to increase airline traffic

share

� STRATEGY:-Build up customer satisfaction

thru

1. Providing better food2. Cleaner cabins

3. Better trained cabin crew

HE HAS NO AUTHORITY IN THESE MATTER



� Catering dept :- orders food that keeps

cost down� Maintenance dept:- uses cleaning service

that keeps cost down

� Personal dept:-hires people whether theyare friendly & inclined to service other

people



� Marketing is a system of value exchange

� ³Is the process of planning & executing the

ideas, pricing, promotion & distribution of goods & services and ideas to create

exchange with tgt group that satisfy

customer & organization objective´.



Difference between sales & marketing

CRITERIA SELLING MARKETING

Orientation Production capability Product market

compatibility

Approach Promotion product &

services

Identifying & fullfilling

customers needs

Direction PUSH STRATEGY PULL STRATEGY

Emphasis Aggressive

salesmanship

Create a market niche

Time Frame Short to medium run Medium ± long run

Results Profit thru sales volume Profit thru customer

satisfaction



Goals of marketing

� Mktg is a integral part of an organization

� Therefore it should contribute to the goals of an

organization

� Goals of marketing manager is derived from

the goals of enterprise

G l f k ti



Goals of marketing1. Profitability:

� Sales revenue maximization

� Cost minimization2. Growth

� sales growth maximization

� Product development

� Market penetration

� Market development

� Diversification

3. Market standing

� Innovation

� Market leadership� Customer satisfaction

4. Image

� Brand Image

� Company Image



Goals of marketing

ENTERPRISE MARKETING

PROFITABILITY �Sales revenue maximization

�Cost minimization

GROWTH �Sales growth maximization

�Product development�Market penetration

�Market development

�diversification

MARKET STANDING�Innovation

�Market leadership

�Consumer satisfaction

IMAGE �Brand Image

�Company Image

1Mkt'g mgmt

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