Chapter 1

Marketing: Definition &

Importance
All activities involved in creation of time,
place and possession utilities.
The process of Planning & Executing the
conception, pricing, promotion and
distribution of ideas, goods and services to
create exchanges that satisfy individual and
organizational objectives.
American Marketing Association

The management process responsible for

identifying, anticipating and satisfying
customer requirements profitably.
Chartered Institute of Marketing

Chapter 1
Marketing: Definition &
Importance

Chapter 1
Marketing: Definition &
Importance
IMPORTANCE OF MARKETING
1.Marketing helps to achieve, maintain
and raise the standards of living
-

Marketing is means through which

production and purchasing power are
converted into consumption.

Better marketing Mass production

Mass production Low cost

Low cost More buying power Higher

standard of living

Chapter 1
Marketing: Definition &
Importance
IMPORTANCE OF MARKETING
2.Marketing Increases employment
opportunities
-

Marketing involves various functions /

sub-functions (Buying, Selling, Transport,
Warehousing, Financing, Risk
management etc)

These functions create need for different

specializations

About 30-40% population depends

Chapter 1
Marketing: Definition &
Importance
IMPORTANCE OF MARKETING
3.Marketing increases national income
-

More purchasing power increase in

national income

4.Helps maintain economic stability &

development
-

By maintaining demand supply balance

Chapter 1
Marketing: Definition &
Importance
IMPORTANCE OF MARKETING
5.Link between producer & consumer
6.Removes imbalance of supply &
demand by transferring surpluses
7.Helps create utilities of time, place &
possession

Chapter 1
Marketing: Definition &
Importance
IMPORTANCE OF MARKETING Business
Firms
1.Marketing Generates Revenue, by
generating sales & thereby profits
2.Marketing helps decision making
process (what, when & how much to
produce, store or transport)
3.Helps change management &
innovations

Chapter 2
Marketing Concepts
1. Exchange Concept
-

Exchange is only a small part of the total

marketing process.

Other parts of marketing like customer

orientation, satisfaction, value creation,
creative selling etc are not covered

Chapter 2
Marketing Concepts
2. Production Concept
-

Production in large volume, at low cost

will be acceptable to customers

Concentrates on production efficiency

May do well in distribution

Rarely appreciated by customers

Chapter 2
Marketing Concepts
3. Product Concept
-

Focuses on design and quality of

products

Believes that customers will

automatically buy products of high
quality

R&D is essential element

Do not bother to study the market &

consumer in depth

Chapter 2
Marketing Concepts
4. Sales Concept
-

Believes that customers need to be

persuaded to buy the products

Involves advertising, large scale

promotions, publicity, discounts, public
relations etc.

Does not take care of the need of the

customer

Chapter 2
Marketing Concepts
Sales v/s Marketing

Marketing

Sales

determine future needs and has a

makes customer demand match the
Approach strategy in place to meet those needs for products the company currently
the long term relationship.
offers.
fulfill customer's wants and needs thru
Focus products and/or services the company fulfill sales volume objectives
can offer.
HorizonLonger term

Short term

Once a product has been created for a

Identifying customer needs (research),
customer need, persuade the
Scope creating products to meet those needs,
customer to purchase the product to
promotions to advertise said products.
fulfill her needs

Chapter 2
Marketing Concepts
Sales v/s Marketing

Marketing

Sales

Strategypull

push

ConceptMarketing is a wider concept

Sales is a narrower concept

Marketing shows how to reach to

Selling is the ultimate result of
Priority the Customers and build long lasting
marketing.
relationship
Sales is the strategy of meeting
needs in an opportunistic,
Marketing targets the construction individual method, driven by
of a brand identity so that it
human interaction. There's no
Identity
becomes easily associated with need premise of brand identity,
fulfillment.
longevity or continuity. It's simply
the ability to meet a need at the
right time.

Chapter 2
Marketing Concepts
5. Marketing Concept
-

Starts with determination of consumer

needs

Ends with satisfaction of these needs

Organizational activities revolve around

customer

Products & Services are designed to

serve customer needs

Satisfied customer will only produce

profits

Chapter 2
Marketing Concepts
Features of Marketing Concept
1. Consumer Orientation
2. Integrated management action
3. Consumer Satisfaction
4. Realizing organizational goals including
profits

Chapter 2
Marketing Concepts
Benefits of Marketing Concept
1. Long Term success
2. Faster penetration
3. Better Products
4. Boosts creativity
5. Integrated functions
6. Mostly in profits
7. Better growth of employees
8. Contributes to overall growth of the
society

Chapter 2
Marketing Concepts
Dilemma of Marketing Concept
1. Customer Orientation v/s Product
standardization
2. Customer Orientation v/s Profits
3. May ignore social welfare at times
4. Constrains innovation, at times

Chapter 3
Marketing Management
Tasks

Responsibilities of Marketing Management

1. Market analysis
2. Set Goals
3. Forecast sales & profits
4. Strategies, policies & procedures
5. Evolve appropriate marketing mix
6. Organize marketing activities
7. Organize resources
8. Participation in product planning
9. Managing Supply chain
10.After Sales activities

Chapter 3
Marketing Management
Tasks

Marketing Management Tasks

1. Conversional Marketing
-

Used during negative demand

Customer dislikes the product

May even pay to avoid the product

It is a rare condition

e.g. Waste Water

Chapter 3
Marketing Management
Tasks

Marketing Management Tasks

2. Stimulational Marketing
-

Used during No demand

Customer is indifferent to the product

Task of converting no-demand into positive

demand

Connect the product with existing need

Create environment where need is felt

e.g. Mushrooms

Chapter 3
Marketing Management
Tasks

Marketing Management Tasks

3. Developmental Marketing
-

Used during Latent demand

Consumers share need for something which

does not exist

Opportunity for Marketer to develop a

product

e.g. Electronic cigarette

Chapter 3
Marketing Management
Tasks

Marketing Management Tasks

4. Remarketing
-

Used during fading demand

Consumers find either no use for the product

or better alternatives in the market

Marketers recreate the demand

e.g. Cinema halls

Chapter 3
Marketing Management
Tasks

Marketing Management Tasks

5. Synchro Marketing
-

Used during irregular demand

Seasonal products

Results in wasteful underutilization of

production capacity

Marketers attempt to streamline the demand

to meet supply capacity

e.g. Hotels at hill stations, flight tickets

during peak season

Chapter 3
Marketing Management
Tasks

Marketing Management Tasks

6. Maintenance Marketing
-

Used during robust demand

Established products

Does not need efforts to push supplies

Keep a watch on competition

Keep sharpening the saw

Chapter 3
Marketing Management
Tasks

Marketing Management Tasks

7. Demarketing
-

Used during overfull demand

Or when you want to exit certain business

Supply falls short of demand

Marketers discourage customers in choosing

certain products

Chapter 3
Marketing Management
Tasks

Marketing Management Tasks

8. Counter Marketing
-

Used when demand is considered

unwholesome

Like alcohol, drugs

Marketers try to destroy demand

Om Shanti