Introduction to

Marketing Management :
Defining Marketing for
the 21st Century
Tutored by : Prof. Sunil D’ Anto
 Session Agenda
• Importance of marketing
• Marketing Defined
• The scope of marketing
• Tasks of a successful marketing practice
• Fundamental Marketing Concepts & Tools of Marketing
• Marketplace Orientations
• How has marketing management changed?
• Marketing’s Responses to New Challenges
 Importance of marketing
(why are we learning it?)
• Press notes communicating marketing triumphs
• Profound articles on marketing strategies & tactics
• The creation of CMOs
• Marketing is required to build strong brands & a loyal customer base
which contribute majorly to the firm’s value & financial success
• Successful marketing builds demand for products, which, in turn, creates
jobs
• Marketing assists the firm :
– in deciding on the right product, price, promotion (communication) &
(delivery) place
– to redo business models, in the world of empowered customers &
highly competitive market place.

The case of : the brands Xerox & Nirma

 What is Marketing ?
• too often confused and identified with selling, advertising or
promotions only!
• Real marketing practices and theories are all too often
invisible to the average consumer & common man.

Therefore, let us understand & define marketing…

 Defining Marketing
Marketing is an organizational function and
a set of processes for
for creating, communicating, delivering, and
exchanging offerings that have value
for customers, clients, partners, and society at large
and
for managing customer relationships
in ways that benefit the organization and its
stakeholders.
- the AMA
 Good Marketing is No Accident

Case of Tata Ace:

The roaring success of four-
wheeler Tata Ace, in a
market earlier dominated
by three-wheeler load
carriers, was due to a deep
understanding of the
market needs and
customer requirements.
What Is Marketing Management?
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.
 Who Markets?

• A marketer is someone who seeks a

response—attention, a purchase, a
vote, a donation—from another
party, called the prospect

Copyright © 2016 Pearson Education Ltd. 1-11

 What is Marketed?
(the market offering / the product)
Goods Digital products

Services
Events & Experiences

Persons

Places & Properties

Organizations
Information
Ideas
Successful New Product launches require
careful Planning
 Re-defining Market
• Traditionally, market - a physical place.
• Economists describe a market as a collection of buyers and
sellers who transact over a particular product or product class.
• Contemporarily:
Marketers use the term “market” to cover various
groups of customers

– Marketplaces/ Marketspaces
– Metamarkets & metamediaries
 Simple Marketing System
Communication

Goods/services
Industry Market
(a collection (a collection
of sellers) Money of Buyers)

Information
 Structure of Flows in a
Modern Exchange Economy
 Key Customer Markets
Consumer Markets Global Markets

Business Markets Nonprofit/ Government Markets

 Rural Markets in South Asia

• Rural markets offer immense potential for market

expansion and growth:
– Consumption in rural markets predicted to grow at a CAGR
of 5% in the next two decades.
– Size and growth rate for many products and product
categories are very attractive.
– 48 percent of the rural population is below 20 years of age.
 Core Concepts of Marketing
Needs, Wants, and Demands *
Segmentation ,Target markets, Positioning
Product or Market Offering & Brands
Customer, Consumer, Client
Value and Satisfaction
Exchange and Transactions
Relationships and Networks
Marketing Channels
Supply Chain
Competition
Marketing Environment
* Assignment 1 (a)
 Understanding the Marketplace
and Customer Needs
Customer Needs, Wants, and Demands

• States of deprivation

Needs • Physical—food, clothing, warmth, safety

• Social—belonging and affection
• Individual—knowledge and self-expression

• The specific objects that might satisfy the need

Wants (the form that needs take) as they are shaped by
culture and individual personality

Demands • Wants backed by buying power (ability) &

willingness to pay.
 Types of Needs

Stated (an inexpensive car)

Real (low operating cost)

Unstated (good service from the dealer)

Delight (onboard GPS system)

Secret (to be seen as a savvy consumer)

 States of Demand
Eight demand states are possible:

– Negative demand : consumers dislike the product and may even pay a price to avoid it.
– Non-existent demand :consumers may be unaware or uninterested in the product.
– Latent demand: consumers may share a strong need that cannot be satisfied by an
existing product.
– Declining demand : consumers begin to buy the product less frequently or not at all.
– Irregular demand: consumer purchases vary on a seasonal, monthly, daily, or even an
hourly basis.
– Full demand: consumers are adequately buying all product put into the marketplace.
– Overfull demand: too many consumers would like to buy the product that can be
satisfied.
– Unwholesome demand: consumers may be attracted to products that have
undesirable social consequences.
 Exchange & Transactions
• Exchange defined
• Conditions for an exchange
• Up-gradation to a Transaction
Segmentation ,Target markets,
Positioning
 Offerings and Brands

• Value Proposition (the assurance/promise of a set of benefits that

satisfy the customer needs) through a brand (an offering from a known
source)…….
• The intangible VP is given a form through the offering ( which may be
a combination of any of the 10 types of product entities)
Caselet : Maruti Suzuki
 Value and Satisfaction
Value: a combination of quality, service, and price (qsp: the
customer value triad)

Quality
Service
Price

Satisfaction: a person’s judgment of a product’s perceived

performance in relationship to expectations
Marketing Channels

Communication

Distribution

Service
 Supply chain
• a channel stretching from raw materials > components >
finished products carried to final buyers
>> (The Supply Chain for Coffee)
 Competition
• all the actual and potential rival offerings
and substitutes a buyer might consider

Copyright © 2016 Pearson Education Ltd. 1-30

 Marketing Environment

Demo
Economic
graphic

Socio-
Political-
legal cultural

Technologi
cal Natural
 Major Societal Forces
• Network information • Consumer buying power
technology • Consumer information
• Globalization • Consumer participation
• Deregulation • Consumer resistance
• Heightened competition • New company capabilities
• Industry convergence • Retail transformation
• Social responsibility • Disintermediation
Company Orientation Towards the
Marketplace
Consumers prefer products that are
Production Concept widely available and inexpensive

Consumers favor products that

Product Concept offer the most quality, performance,
or innovative features

Consumers will buy products only if

Selling Concept the company aggressively
promotes/sells these products

Focuses on needs/ wants of target

Marketing Concept markets & delivering value
better than competitors
 Customer Delivered Value
Starting
point Focus Means Ends

Existing Selling and Profits through

Factory products promotion sales volume

(a) The selling concept

Customer Integrated Profits through

Market needs marketing customer
satisfaction

(b) The marketing concept

( Financial Accountability )
Holistic Marketing Dimensions

(Social Responsibility Marketing)

 Integrated
marketing
Devise marketing activities and
programs that create,
communicate, and deliver value
such that “the whole is greater
than the sum of its parts.”
Relationship Marketing

Customers

Employees

Marketing Partners

Financial Community
Marketing Mix Components (4 Ps)
The New Four Ps

People

Processes

Programs

Performance
 Marketing Management Tasks

• Develop market strategies and plans

• Assess market opportunities and customer value
• Shape market offerings
– Choose value
– Design / Create value
• Deliver value (total C. Benefits – total C. Costs)
• (Connect with customers) & Communicate value
• Sustain growth and value (Build strong brands)
 Functions of CMOs
• Strengthening the brands
• Measuring marketing effectiveness
• Driving new product development based on customer
needs
• Gathering meaningful customer insights
• Utilizing new marketing technology
 Improving CMO Success
• Make the mission and responsibilities clear
• Fit the role to the marketing culture and structure
• Ensure the CMO is compatible with the CEO
• Remember that show people don’t succeed
• Match the personality with the CMO type
• Make line managers marketing heroes
• Infiltrate the line organization
• Require right-brain and left-brain skills
 Evolving Views of
Marketing’s Role

Finance
Production
Production Finance
Human
resources
Marketing Human
resources Marketing

a. Marketing as an b. Marketing as a more

equal function important function
 Evolving Views of
Marketing’s Role (contd.)
Production

Marketing Customer

c. Marketing as the d. The customer as the

major function controlling factor
 Evolving Views of
Marketing’s Role (contd)
Production

Marketing

Customer

e. The customer as the controlling

function and marketing as the
integrative function
 Understanding Marketing..
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 fits him and sells itself.
Ideally, marketing should result in a customer who is ready to
buy. All that should be needed is to make the product or
service available.”
- Peter Drucker