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MM 1st & 2nd Week Lecture

The document provides an overview of marketing concepts including definitions of marketing, the marketing management process, understanding customer needs and demand states. It also discusses key aspects of developing marketing strategies like identifying target customer markets, creating value propositions and brands, developing integrated marketing communications and distribution channels, and focusing on building long-term customer relationships.

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innocent angel
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53 views29 pages

MM 1st & 2nd Week Lecture

The document provides an overview of marketing concepts including definitions of marketing, the marketing management process, understanding customer needs and demand states. It also discusses key aspects of developing marketing strategies like identifying target customer markets, creating value propositions and brands, developing integrated marketing communications and distribution channels, and focusing on building long-term customer relationships.

Uploaded by

innocent angel
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Marketing Management

A South Asian Perspective


13 edition
th

Philip Kotler, Kevin Lane Keller,


Abraham Koshy, Mithileshwar Jha
Marketing Management

Chapter 1
Defining Marketing for the 21st Century
What is Marketing?
‘Meeting needs profitably’

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.
‘Choosing the right product for your customers’
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.

‘Selling is only the tip of the marketing iceberg’


What is marketed?
Goods – cars, computers, watches, cosmetics etc.
Services – airline, hotels, car rental, barbers, bankers,
lawyers, repair people etc.
Events – concerts, convocations, olympics, world cup
etc.
Experiences – amusement parks, cinemas, football &
cricket leagues, travel tales etc.
Persons – artists, musicians, high profile
professionals, politicians etc.
Places – cities, states, regions shopping malls etc.
Properties – real estate, financial property (stocks &
bonds) etc.
Organizations – universities, multinational
companies etc.
Information – education, product manuals, X-ray
etc.
Ideas – AIDS, dengue, polio, anti-smoking campaigns
etc.
Demand States
Negative Nonexistent Latent

Declining Irregular

Full Overfull Unwholesome


TYPES
Negative Demand
Negative demand is a type of demand which is created if the product is
disliked in general. The productmight be beneficial but the customer does
not want it.

Example of negative demand is a) Dental work where people don’t want


problems with their teeth and use preventive measures to avoid the same.

b) Insurance, which people should have but they delay buying an insurance
policy.
TYPES
2) Unwholesome demand

Unwholesome demand is the other side of Negative demand. In negative type


of demands, customer does not want the product even though product might
be necessary for the customer. But in unwholesome demand, the customer
should not desire the product, yet the customer wants the product badly. Best
example of unwholesome demand are cigarettes, alcohol, pirated movies,
guns etc.
3) None existent demands
Certain products face the challenge of no demand. The best example
for the same can be education courses where there is very low demand
or no demand at all. Such cases are very hard to counter.
4) Latent Demand
Latent demand is, as the name suggests, a demand which the customer
realizes later. Thus, while buying the product, he might not desire some
features. But later on, he might think about those features and buy the
product. The best example of latent demand are normal phones vs smart
phones.
5) Declining demand
Declining demand is when demand for a product is declining. For example,
when CD players were introduced and IPOD came in the market, the
demand for walkman went down. Although there was still a demand for
the product, the demand was a declining demand.
6) Irregular demand
Irregular demand can be demand which is not consistent. The best example of
irregular demand is seasonal products like umbrellas, air conditioners or resorts.
These products sell irregularly and sell more during peak season whereas their
demand is very low during non seasons. The best way to counter irregular demand
is to introduce incentives for the customer to buy the product.
7) Full demand
In an ideal environment, a company should always have full demand. Full demand
means that thedemand is meeting the supply potential of the company. It also
means that the markets are happy with the products of the company and that
people want to buy from the same company. The marketing challenge in this type of
demand is to maintain the same level of interest in the product and the company.
8) Overfull demands
Overfull demands happen when the companies manufacturing capacity is limited
but the demand is more than the supply. This can be observed in the cement
industry occasionally.
A Simple Marketing System
Key Customer Markets
Consumer Markets Global Markets

Business Markets Nonprofit/ Government Markets


Customer Needs, Wants & Demands
• Basic human requirements

Needs
• Physical—food, clothing, warmth, safety
• Social—belonging and affection
• Individual—knowledge and self-expression

• Form that needs take as they are


Wants shaped by culture and individual
personality

Demands • Wants backed by buying power


Realization Direction
Deficiency Need Want

Backed by
buying power

Demand

• Examples
• I need food but want fish and chips
• I need a place to live but want a flat
• I need a vacation but want to go to Naran
• I need education but want to pursue BBA
• I need clothing but want designer clothes.
Product Utilities
Form
Place
Time
Information
Possession
Types of needs
Stated – inexpensive car, zinger

Real – What the stated need actually means

low operating cost, quench hunger


Unstated – good service

Delight – navigation system, free bottle/fries

Secret – Needs that the customer does not express,

often intangible in nature


Offerings & Brands
Value proposition – a set of benefits that are offered to

customers to satisfy their needs.


Offering – a combination of products, services, information &

experiences.
Brand – a brand is a “name, term, sign, symbol, or design,

or a combination of them, intended to identify the goods


and services of one seller or group of sellers and to
differentiate them from those of competition.”
Value & Satisfaction
Value is the sum of perceived benefits & costs to
customers.
It is a combination of quality, service and price (qsp).

Satisfaction reflects a person’s judgements of a


products performance in relationship to expectations.
Customer satisfaction
Performance < Expectation = Dissatisfied 

Performance = Expectation = Satisfied

Performance > Expectation = Delighted 


Marketing Channels
Communication Channels deliver & receive
messages from target buyers. e.g. TV, billboards,
internet, appearance of retail store & website etc.

Distribution Channels are used to display, sell or


deliver the product or service to the buyer. e.g.
distributors, wholesalers, retailers & agents.

Service Channels are used to carry out transactions


with potential buyers. e.g. warehouses, transportation,
banks etc.
Supply chain
It is a longer channel stretching from raw materials to
components to final products.
New Consumer Capabilities
A substantial increase in buying power

A greater variety of available goods and services

A great amount of information about practically anything

Greater ease in interacting and placing and receiving

orders
An ability to compare notes on products and services

An amplified voice to influence public opinion


Company orientations/History of Marketing
Production concept – consumers will prefer
products that are widely available & inexpensive.
Product concept – consumers will favour the
products that offer the most quality, performance or
innovative features.
Selling concept – organizations must undertake an
aggressive selling & promotion effort.
Marketing concept – find the right product for your
customers.
Relationship Concept – keep the customer for life
Holistic Marketing
Relationship Marketing aims to build mutually
satisfying long term relationships with key customers
to earn & retain their business.

Integrated Marketing entails devising marketing


activities & assemble fully integrated marketing
programs to create, communicate & deliver value for
consumers.

Internal marketing is the task of hiring, training,


and motivating able employees who want to serve
customers well.
Socially responsible marketing
is a marketing philosophy that a company should take
into consideration what is in the best interest
of society in the present and long term.

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