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Marketing Management

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The Scope of Marketing* Marketing deals with identifying and meeting human and social

needs.* One of the shortest definitions of marketing is “Meeting needs

profitably” * Marketing can be define in two perspective as social and

managerial definitions *Role of marketing plays in the society.

“Deliver a higher standard of living”

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The American Marketing Association Releases New Definition for Marketing

The new definition reads:“Marketing is the activity, set of institutions, and processes for creating, communicating,delivering, and exchanging offerings that have value for customers, clients, partners, andsociety at large.”

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The previous definition stated:

“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.”

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• “Marketing is no longer a function – it is an educational process.”

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1935

• Marketing is] the performance• of business activities that• direct the flow of goods and• services from producers to• consumers

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1985

• [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• objectives.

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2004

• 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

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2007

• Marketing is the activity, set of• institutions, and processes for• creating, communicating,• delivering, and exchanging• offerings that have value for• customers, clients, partners,• and society at large.

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Marketing Management, Kotler and Keller - 2005

• Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, services to create exchanges that satisfy individual and organizational goals.

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• A customer is not dependent on us….we are dependent on him

• A customer is not an interruption of our work..he is the purpose of it. We are not doing a favor by serving him….he doing us a favor by giving us the opportunity to do so.

• A customer is not someone to argue or match wits. Nobody ever won an argument with a customer.

• A customer is a person who brings us his wants. It is our job to handle them profitably to him and to ourselves.

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Core Concepts of Marketing

Product or Offering ksIamdÈ;h fyda fokq,nk foa Product or Offering ksIamdÈ;h fyda fokq,nk foa

Value and Satisfaction jákdlu yd ;Dma;sh Value and Satisfaction jákdlu yd ;Dma;sh

Needs, Wants, and Demands Tskelñ wjYH;d yd b,a¨uNeeds, Wants, and Demands Tskelñ wjYH;d yd b,a¨u

Exchange and Transactions yqjudrej yd .kqfokqj Exchange and Transactions yqjudrej yd .kqfokqj

Relationships and Networks iñnkaO;djh yd cd,h Relationships and Networks iñnkaO;djh yd cd,h

Target Markets & Segmentation b,lal fj<|m, yd lKavkh Target Markets & Segmentation b,lal fj<|m, yd lKavkh

Marketing Channels wf,úlrk udOHhka Marketing Channels wf,úlrk udOHhka

Supply Chain iemhqñ oñje, Supply Chain iemhqñ oñje,

Competition ;r.h Competition ;r.h

Marketing Environment wf,úlrk mßirh Marketing Environment wf,úlrk mßirh

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What is Marketed?

• Goods• Services• Events • Experiences• Persons

• Places• Properties• Organizations• Information• Ideas

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Market

• A set of actual and potential buyers for the product

• Similar needs and wants • Purchasing power • Willingness to buy through exchange process

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Key Customer Markets

• Consumer markets• Business markets• Global markets• Nonprofit/Government markets

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Marketer and prospect

• Marketer is someone who seeks a response from another party.

• A responded party is called prospect.

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Simple Marketing System

Industry(a collection

of sellers)

Market(a collection

of Buyers)

Goods/services

Money

Communication

Information

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For an exchange to occur…..

• 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.

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Market orientations

• Production concept• Product concept• Selling concept• Marketing concept• Holistic marketing concept

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Production ConceptProduction Concept

Product ConceptProduct Concept

Selling ConceptSelling Concept

Marketing ConceptMarketing Concept

Consumers prefer products that are widely available and inexpensive

Consumers favor products that offer the most quality, performance,

or innovative features

Consumers will buy products only ifthe company aggressively

promotes/sells these products

Focuses on needs/ wants of target markets & delivering value

better than competitors

Company Orientations Towards the Marketplace

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Market Integratedmarketing

Profits throughcustomer

satisfactionCustomer

needs

(b) The marketing concept

Factory Existingproducts

Selling andpromotion

Profits throughsales volume

Startingpoint Focus Means Ends

(a) The selling concept

Customer Delivered Value

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The Holistic Marketing concept

• The holistic marketing concept is based on the development, design, and implementation of marketing programs, processes, and activities that recognizes their breadth and interdependencies.

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• Holistic marketing recognizes that “everything matters” with marketing and that a broad, integrated perspective is often necessary.

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The Four Ps

MarketingMix

Product

Price Promotion

Place

The Four CsThe Four Cs

CustomerSolution

CustomerCost

Communication

Conven-ience

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Customers

Front-line people

Middle Management

TopManagement

Traditional Organization Chart

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Customer-Oriented Organization Chart

Customers

Front-line people

Middle management

Topmanage-

ment

Customers Cus

tom

ers

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Evolving Views of Marketing’s Role

a. Marketing as anequal function

FinanceProduction

Marketing Humanresources

b. Marketing as a moreimportant function

Finance

Humanresources

Marketing

Production

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Evolving Views of Marketing’s Role

c. Marketing as themajor function

Marketing

Finance

Human

resources

Production

d. The customer as thecontrolling factor

Customer

Human

resource

s

FinanceProduction

Marketing

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Evolving Views of Marketing’s Role

e. The customer as the controllingfunction and marketing as the

integrative function

Customer

Marketing

Production

Human

resources

Finance

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Marketing Management Tasks

• Developing marketing strategies

• Capturing marketing insights

• Connecting with customers• Building strong brands

• Shaping market offerings• Delivering value• Communicating value• Creating long-term growth