TM 303 : Industrial Management

Lecture 5

Md. Nurun Nabi

Lecturer
Textile Engineering Management Dept.
Bangladesh University of Textiles(BUTEX)
 Introduction to

“Marketing”
 What is Marketing?

• Many people think of marketing as only selling and

advertising. We are attacked every day with TV commercials,
catalogs, sales calls, and e-mail pitches. However, selling
and advertising are only the tip of the marketing iceberg.

• Broadly defined, marketing is a social and managerial

process by which individuals and organizations obtain what
they need and want through creating and exchanging value
with others. In a narrower business context, marketing
involves building profitable, value laden exchange
relationships with customers. Hence, we define marketing as
the process by which companies create value for customers
and build strong customer relationships in order to capture
value from customers in return.
Definition of Marketing:

• According to Philip Kotler, "Marketing Management is the analysis,

planning, implementation and control of programs designed to bring
about desired exchanges with target audiences for the purpose of
personal and of mutual gain. It relies heavily on the adoption and
coordination of product, price, promotion and place for achieving
responses.“

• According to American Marketing Association (2004) - "Marketing is an

organizational function and set of processes for creating, communicating
and delivering value to customers and for managing relationships in a
way that benefits both the organization and the stakeholder.“

• According to Eldridge (1970) - "Marketing is the combination of activities

designed to produce profit through ascertaining, creating, stimulating, and
satisfying the needs and/or wants of a selected segment of the market."
 Marketing Defined

• Marketing is the activity, set of instructions, and

processes for creating, communicating,
delivering, and exchanging offerings that have
value for customers, clients, partners, and
society at large.

OLD view of NEW view of

marketing: marketing:
Making a sale Satisfying
—“telling and customer needs
selling”
 Marketing Defined
Shifting Business Focus

Buyers’ markets

Sellers’ markets
 Exchange as the focus
The following conditions must exist for a marketing
exchange to take place:

 Two or more people or organizations must be involved,

and each must have needs or wants to be satisfied. If
you are totally self-sufficient, there is no need for an
exchange.

 The parties to the exchange must be involved voluntarily.

 Exchange as the focus (cont.)

 Each party must have something of value to contribute in

the exchange, and each must be believe that it will
benefit from the exchange.

 The party must communicate with each other. The

communication can take many forms and may even be
through a third party, but without awareness and
information there can be no exchange.
 Inventor & INNOVATOR

Inventor Innovator
is a person creates is a person who
brings something
new thing.
new in business
 Nature of Marketing
• 1. Marketing is an Economic Function
Marketing embraces all the business activities involved in
getting goods and services , from the hands of producers
into the hands of final consumers. The business steps
through which goods progress on their way to final
consumers is the concern of marketing.

• 2. Marketing is a Legal Process by which Ownership

Transfers 
In the process of marketing the ownership of goods transfers
from seller to the purchaser or from producer to the end user.
 
• 3. Marketing is a System of Interacting Business
Activities 
Marketing is that process through which a business
enterprise, institution, or organization interacts with the
customers and stakeholders with the objective to earn profit,
satisfy customers, and manage relationship. It is the
performance of business activities that direct the flow of
goods and services from producer to consumer or user.
Nature of Marketing (Cont.)
• 4. Marketing is a Managerial function 
According to managerial or systems approach - "Marketing
is the combination of activities designed to produce profit
through ascertaining, creating, stimulating, and satisfying
the needs and/or wants of a selected segment of the
market." 
According to this approach the emphasis is on how the
individual organization processes marketing and develops
the strategic dimensions of marketing activities. 

• 5. Marketing is a social process 

Marketing is the delivery of a standard of living to society.
According to  Cunningham (1981) societal marketing
performs three essential functions:-
• Knowing and understanding the consumer's changing needs and
wants;
• Efficiently and effectively managing the supply and demand of
products and services; and
• Efficient provision of distribution and payment processing systems.
 Nature of Marketing (Cont.)
 

• 6. Marketing is a philosophy based on consumer

orientation and satisfaction

• 7. Marketing had dual objectives - profit making and

consumer satisfaction
 Scope of Marketing
• 1. Study of Consumer Wants and Needs
Goods are produced to satisfy consumer wants.
Therefore study is done to identify consumer needs
and wants. These needs and wants motivates
consumer to purchase.

• 2. Study of Consumer behavior

Marketers performs study of consumer behavior.
Analysis of buyer behavior helps marketer in market
segmentation and targeting.

• 3. Production planning and development

Product planning and development starts with the
generation of product idea and ends with the product
development and commercialization. Product planning
includes everything from branding and packaging to
product line expansion and contraction.
 Scope of Marketing (Cont.)
• 4. Pricing Policies
Marketer has to determine pricing policies for their products. Pricing
policies differs form product to product. It depends on the level of
competition, product life cycle, marketing goals and objectives, etc.

• 5. Distribution
Study of distribution channel is important in marketing. For maximum
sales and profit goods are required to be distributed to the maximum
consumers at minimum cost.

• 6. Promotion
Promotion includes personal selling, sales promotion, and advertising.
Right promotion mix is crucial in accomplishment of marketing goals.

• 7. Consumer Satisfaction
The product or service offered must satisfy consumer. Consumer
satisfaction is the major objective of marketing.

• 8. Marketing Control
Marketing audit is done to control the marketing activities.
 Marketing Management

The art and science of choosing target markets and

building profitable relationships with them.

• Requires that consumers and the marketplace be fully

understood.

• Aim is to find, attract, keep, and grow customers by

creating, delivering, and communicating superior
value.
 Marketing Management

Marketing managers must consider the following, to

ensure a successful marketing strategy:

1. What customers will we serve?

— What is our target market?

2. How can we best serve these

customers?
— What is our value proposition?
Basic Functions of Marketing

Marketing Price
management planning
Environmental
analysis

Total
Broadening the Marketing
Promotion
scope of Effort
planning
marketing

Product
Consumer planning Distribution
analysis planning
Needs, Wants, and Demands
Need: State of felt deprivation including
physical, social, and individual needs.

• Physical needs: Food, clothing, shelter, safety

• Social needs: Belonging, affection
• Individual needs: Learning, knowledge, self-
expression

Want: Form that a human need takes, as

shaped by culture and individual
personality.
• Wants + Buying Power = Demand
 Types of Demand
1. Negative Demand
2. No Demand
3. Latent Demand
4. Declining Demand
5. Irregular Demand
6. Full Demand
7. Overfull Demand
8. Unwholesome Demand
Thanks For your attention