MARKETING

MANAGEMENT
BY
Dr N Farida Begum BCA, MBA, M.Phil, Ph.D
Assistant Professor
• The term Marketing is derived from the Latin word ‘Mercatus’
which refers to “a place where business is conducted”.
• Marketing is a form of communication between a business
house and its customers with the goal of selling its products or
services to them.
• Goods are not complete products until they are in the hands
of customers.
• Marketing is that management process through which goods
and services move from concept to the customer. Marketing
has less to do with getting customers to pay for a product as it
does with developing a demand for that product and fulfilling
the customer’s needs.
 Meaning of Marketing.
• The activity or business of promoting and selling products or
services, including market research and advertising.
Marketing is the process of exploring, creating, and delivering
value to meet the needs of a target market in terms of goods
and services;
 Fundamentals of Marketing
• The fundamentals of marketing encompass a
wide array of principles and strategies aimed at
promoting products or services, engaging with
customers, and ultimately driving sales and
revenue.

• Here are some key components:

• Understanding the Target Audience: This involves researching
and analyzing the demographics, behaviors, and needs of the
potential customers for a product or service.

• Product Development: Creating products or services that fulfill

the needs or desires of the target audience, and ensuring they
have unique selling points that differentiate them from
competitors.

• Market Research: Conducting research to gather insights into

market trends, consumer preferences, competitors, and other
relevant factors to inform marketing strategies.
• Positioning and Branding: Establishing a unique identity for a
product or service in the minds of consumers, and
communicating its value proposition effectively.
 EVOLUTION OF MARKET
• The concept of marketing is as old as other professions of the
world. Marketing is indeed an ancient art. It has been
practiced in one form or the other.
• The traditional objective of marketing had been to make the
goods available at places where they are needed. This idea
was later on changed by shifting the emphasis from
“exchange” to “satisfaction of human wants” which is known
as modern marketing. However in order enrich the views of
marketing it is better to trace out the evolution. The following
are the stages of evolution:-
• 1) The Barter System:- At this stage, human beings were in
nomadic hunter stage. In this primitive period, the human
beings were nothing more than hunters or food gathers. The
human beings with his surplus products approached and tried
to exchange his products by accepting the products he
needed- exchange of products for products.
• The New Stone Age:- This stage is known as Agrarian period.
In this stage human beings developed a sense of
belongingness and developed family units.
• As time passed, the division of labour began to play its role
and man started producing more than he needed and
specialized in activities like carpenters, weavers,
agriculturalist etc. To disposed of the excess producing,
people assembled in places called local markets and later, it
developed into shops, bazaars etc.
• The pre-industrial period:- The difficulties of barter system
were removed by adopting common mediums of exchange
like copper, iron etc and later this medium of exchange was
changed to silver, gold etc. At this stage, producers began to
produce the products in larger quantities, employed the
services of labourers in their factories; and middlemen,
through whom sales were conducted, appeared.
• The Industrial Period:- In this stage, home production was
replaced by factory system and hand operations were
replaced by machines. Because of the introduction of new
inventions along with the new machines, the production was
on large scale.
• Mass productions were followed by large-scale consumption.
In order that the products may reach the hands of the
ultimate user, new methods of marketing appeared.
 Todays topic
• 1. Role of Marketing
• 2. Relationship of Marketing with other
functional areas
• 3. Concept of Marketing Mix.
 Role of Marketing
• Understanding Customer Needs: Marketing involves
researching and understanding the needs, preferences, and
behaviors of target customers. This understanding forms the
basis for developing products or services that fulfill those
needs.

• Creating Awareness: Marketing is responsible for creating

awareness about a company's products or services among
potential customers. This includes advertising, public
relations, social media campaigns, and other promotional
activities.
• Building Brand Identity: Marketing helps in creating and
maintaining a strong brand identity that differentiates a
company from its competitors. Branding activities such as
logo design, brand messaging, and brand positioning are
crucial for establishing a unique identity in the minds of
consumers.

• Generating Leads and Sales: Marketing plays a crucial role in

generating leads and converting them into customers. This
involves various tactics such as lead generation campaigns,
sales promotions, and customer relationship management.
• Market Research and Analysis: Marketing conducts market
research to identify opportunities and threats in the market
environment. This involves analyzing market trends,
competitor strategies, and consumer behavior to make
informed decisions.

• Product Development and Innovation: Marketing provides

insights into customer needs and preferences that inform
product development and innovation. By understanding what
customers want, companies can develop products or services
that better meet their needs and stay ahead of the
competition.
• Customer Engagement and Retention: Marketing is
responsible for engaging with customers through various
channels such as social media, email marketing, and
customer service. Building strong relationships with
customers is essential for customer retention and long-term
success.

• Driving Business Growth: Ultimately, the role of marketing is

to contribute to the growth and profitability of a business. By
attracting new customers, retaining existing ones, and
increasing sales, marketing plays a crucial role in driving
business growth and success.
 Relationship of marketing with
other functional areas
• Sales: Marketing and sales departments
often work closely together. While
marketing focuses on generating leads
and creating awareness about products or
services, the sales team is responsible for
converting those leads into customers.
Marketing provides sales with qualified
leads and supports them with sales
materials, customer insights, and market
data.
• Product Development/Research & Development: Marketing
provides valuable insights into customer needs, preferences,
and market trends, which inform product development and
innovation initiatives. Marketing research helps product
development teams understand market demand and develop
products that better meet customer needs. Conversely,
product development teams may provide marketing with
information about new products or features to be promoted.
• Finance: Marketing and finance collaborate on budgeting,
financial forecasting, and ROI analysis. Marketing budgets
need to be aligned with overall financial goals and constraints,
so collaboration with the finance department is essential for
effective resource allocation. Finance also evaluates the
financial performance of marketing campaigns and initiatives
to ensure they contribute to the organization's bottom line.
• Operations/Supply Chain: Marketing
communicates customer demand and
preferences to the operations and supply
chain teams, helping them plan
production, manage inventory, and
optimize distribution channels. Close
coordination between marketing and
operations ensures that products are
delivered to customers efficiently and
effectively.
• Human Resources: Marketing and HR
collaborate on employer branding, recruitment,
and employee engagement initiatives. Marketing
helps HR attract top talent by promoting the
company's culture, values, and career
opportunities. Additionally, HR supports
marketing by providing training and development
programs to enhance the skills of marketing
personnel.
• Customer Service: Marketing and customer
service teams work together to ensure a positive
customer experience throughout the entire
customer journey. Marketing provides customer
service with insights into customer needs and
preferences, which helps improve the quality of
service and resolve customer issues effectively.
Customer service feedback also informs
marketing strategies and product improvements.
• Information Technology (IT): Marketing relies on IT
for technology infrastructure, data analytics, and
digital marketing tools. IT supports marketing by
maintaining customer databases, implementing
marketing automation systems, and providing
analytics tools for measuring campaign
performance. Close collaboration between
marketing and IT ensures that marketing initiatives
are supported by the necessary technology
infrastructure.
 Concept of Marketing Mix
• The marketing mix is a foundational concept in
marketing that refers to a set of tactical tools or
variables that a company can use to influence its
target market and achieve its marketing
objectives. It's often represented by the "4Ps"
framework, which includes Product, Price, Place,
and Promotion. Let's break down each
component:
• Product: This refers to the tangible goods
or intangible services that a company
offers to its customers. It includes aspects
such as product features, design, quality,
branding, packaging, and variety. Product
decisions also involve considerations
related to product development,
innovation, and lifecycle management.
• Price: Price refers to the amount of money that
customers are willing to pay for a product or
service. Pricing decisions involve determining
the right pricing strategy, setting the actual price,
and managing pricing tactics such as discounts,
promotions, and pricing structures. Pricing
strategies can vary widely, from premium pricing
to penetration pricing, depending on factors like
market competition, customer perceptions, and
company objectives.
• Place: Place, also known as distribution, refers
to the channels and methods through which a
company delivers its products or services to
customers. This includes decisions related to
distribution channels (such as direct sales, retail,
e-commerce), logistics, warehousing, inventory
management, and channel partnerships. The
goal of place decisions is to ensure that
products are available to customers in the right
place, at the right time, and in the right quantity
• Promotion: Promotion encompasses all the
activities that a company uses to communicate
the value of its products or services to
customers and persuade them to make a
purchase. This includes advertising, sales
promotions, public relations, direct marketing,
personal selling, and digital marketing tactics.
Promotion decisions involve crafting messages,
selecting communication channels, creating
promotional materials, and measuring the
effectiveness of promotional campaigns.
• In addition to the traditional 4Ps, some
marketers also include additional elements in the
marketing mix, such as People, Process, and
Physical Evidence, particularly in service-based
industries. These additional elements emphasize
the importance of factors like customer service,
service delivery processes, and the physical
environment in shaping the overall customer
experience.
 APPROACHES OF
MARKETING
• The following are the most significant approaches of
marketing and are:-
• 1) Commodity Approach
• In this approach the focus of study is on specific commodity.
Under this approach the study focuses on the flow of a certain
commodity and its journey from the original producer right
upto the final customer and it includes conditions of supply,
nature and extent of demand, the distribution channels used
etc. Agricultural products like wheat, jute, cotton represent the
commodity approach.
• Institutional Approach
• Under this approach, the interest of marketer
centers around the marketing agencies i.e.
transport and service agencies viz., wholesalers,
retailers, banks, transport undertakings,
insurance companies etc., who participate in
discharging their marketing responsibilities
during the movement of distribution of goods .
• Functional Approach
• Under this approach, marketer
concentrates his attention on the
specialized functions or activities like
buying, selling, storage, risk bearing,
transport, finance etc. These functions are
also studies in relation to given
commodities and marketing institutions in
terms of their operational methods and
systems.
• Managerial Approach
• This approach is also known as Decision-
making approach. The focus of this
approach is on the decision-making
process. The study encompasses
discussion on planning, organizing,
controlling, directing etc. This approach is
considered the most useful way of
studying marketing activities.
• Societal Approach
• This approach focuses on the social
contributions and costs created by various
marketing activities and institutions. In this
approach the focus of study will be on the
interactions between the various
environmental factors and their impact on
the well-being of society.
• System Approach
• The approach recognizes the inter-
relations and inter-connections among the
components of a marketing system in
which products, services, money,
equipments and information flow from
marketers to consumers. The focus of this
approach will be on the analysis of
marketing flows and communication.
 MARKETING APPROACH
1. Product or Commodity Approach
2. Institutional Approach
3. Functional Approach
4. System Approach
5. Decision making approach
6. Social approach
7. Holistic approach
 Product or Commodity
Approach
• Under the commodity approach the focus is placed on the
product or it is an approach on the marketing on commodity
wise basis.
• In other words, the study relates to the flow of a certain
commodity and its movement from the original producer right
up to the ultimate customer The subject-matter, under this
study, is commodity
• commodity approach, one must begin to study and analyses
the problems relating to a commodity i.e., sources and
conditions of supply, nature and extent of demand, mode of
transporting, storage, standardization, packing etc. Again,
take an example of a commodity, say rice.
• One has to study the sources of rice, location,
people involved in buying and selling, means of
transport, problems of selling the product,
financing, storage, packing etc. Thus, we get a
full picture of the marketing from the original
producer to the ultimate consumer.
 2. Institutional Approach:
• In the institutional approach, the focus is on the study of
institutions- middlemen, wholesalers, retailers, importers,
exporters, agencies, warehousing etc., engaged in the
marketing during the movement of goods.
• The approach is also known as middlemen approach. Here,
emphasis is given to understand and analyses the functions
of institutions, who are discharging their marketing functions.
• In the process of moving the goods from the producer to the
final consumers, a large number of persons are engaged.
This system pays attention to the problems and functions of
marketing institutions-transporting, banks and other financial
institutions, warehousing, advertising, insurance etc. This
method does not give adequate knowledge of the entire
marketing functions and also’ fails to explain the interrelations
of different institutions.
 3. Functional Approach:
• In this approach, marketing splits into many
functions-buying, selling, pricing,
standardization, storage, transportation,
advertising, packing etc. This may be studied
one after another. Here each function is studied
in detail in order to understand it and analyses
the nature, need and importance of each
function.
• In this approach, marketing is regarded as
“business of buying and selling and as including
those business activities involved in the flow of
goods and services between producers and
customers.” This system gives too much
importance to various marketing functions and
fails to explain how such functions are applied to
the specific business operations
 4. System Approach:
• The system approach can be defined as “a set of objects
together with the relationships among them and their
attributes.” Systems focus on interrelations and
interconnections among the functions of marketing. The
system examines marketingconnections (linkage) inside as
well as outside the firm. Inside the firm there is a co-
ordination of business activities-engineering, production,
marketing, price etc
 5. Societal Approach:
• This approach has been originated recently. The marketing
process is regarded as a means by which society meets its
own consumption needs. This system gives no importance as
to how the business meets the consumer’s needs. Therefore,
attention is paid to ecological factors (sociological, cultural,
legal etc.) and marketing decisions and their impact on the
society’s well-being.
 6. Decision making approach:
• Various decisions are taken at every level of management.
• The marketing manager should be very expert and competent
in his job so that he takes proper decisions for marketing the
goods and services.
• The decision is based on two variables which can be
classified as ‘uncontrollable’ and ‘controllable’. Uncontrollable’
variables relate to economic, sociological, psychological and
political forces which are the basic causes of market changes.
On the other hand, ‘controllable’ variables are within the
control of the organization.
• These refer to individual firm’s adjustments in
prices, products, advertisement and selling
policies etc. Both these variables have marked
influence on decision making. These variables
should be properly interpreted by the marketing
manager before taking a decision.
 7. Holistic approach:
• A holistic approach means to provide
support that looks at the whole person, not
just their mental health needs. The support
should also consider their physical,
emotional, social and spiritual wellbeing. ...
A holistic approach focuses on a person's
wellness and not just their illness or
condition.
 MARKETING ENVIRONMENT
• A company's marketing environment includes every element
that may affect its ability to connect with its customers. This
can include internal elements such as resources, equipment
and a company's corporate structure. It can also include
external components like existing customers, delivery
platforms and top competitors. Both internal and external
conditions can affect how a customer responds to a business
and determine how a business might grow
• Types of Marketing Environment.
• Here are the three main types of
marketing environments:
• Internal marketing environment: Marketing
professionals work with the resources,
company values, systems and processes
that exist within a company. These
influence the tasks that a company's
marketing and advertising teams complete
and how effectively they can create
campaigns and content to be competitive
in a market
• External microenvironment: An external
microenvironment covers the relationships
outside of the company. A company's
external contacts may include customers,
suppliers or other outside agencies.
 7 elements of macro-marketing
environments
• Here are the seven key components of a macro-marketing
environment:
• 1. Demographic environment: Demography is the study of
populations. The demographic environment for a company
encompasses the people who are part of a specific market.
This environment includes the size and density of a particular
population and the common occupations people have. It also
covers the age, race and gender of prospective customers in
a demographic group
• Understanding the company's
demographic environment can help you
adjust marketing strategies, develop
products and target advertising effectively.
Some factorsthat companies might
monitor to determine their demographic
environment includepopulation growth,
population shifts and economic class
shifts.
• 2. Economic environment: A company's economic
environment refers to the factors that influence consumer
buying habits and the company's performance. A company's
economic environment may fluctuate based on government
funding, credit availability, market trends, interest rates and
shifts in the global economy. For example, an economic
recession could negatively affect a business's profits, but an
economic surplus might encourage customers to make larger
purchases
• 3. Natural environment: A natural
environment, or physical environment,
refers to both the location a business
operates and the place it sources any
natural resources it needs. For example, a
lumber shortage is a natural marketing
environment that may affect a construction
business. Here are a few common factors
that impact the natural environment of a
business:
• A shortage or surplus of raw goods
•  A fluctuation in the cost of energy
•  A change in the quality of air
•  Natural disasters
•  Climate change
•  A change in government policies
• 4. Technological environment: A
technological environment includes a
specific market, technological equipment
and innovative practices and products.
Technology like laptops, automated
machines and social media can all
improve an organization's productivity and
reach. In this type of marketing
environment, it's important for companies
to understand customer behavior
• This can provide them with basic market
information and help them determine if
they need to develop additional technology
to follow market trends. Companies may
also gather information about customer
behavior to help them evaluate and update
their technology regularly
• 5. Political environment: Changes in a country's national or
local political situation can modify a company's external
marketing environment. Politics might determine tariffs,
regulations and other standards that affect the cost of
purchasing goods and conducting business operations.
Political nvironments may sometimes influence the global
economy, which can alter the behavior of a market.
• 6. Social environment: A social environment refers to the way
companies and consumers respond to social experiences. For
example, an organization might donate a portion of its
earnings to nonprofits or government agencies that help
communities in need.
• 7. Cultural environment: Similar to social environments, a
cultural environment refers to the way local communities
interact with each other and your brand. Depending on the
region, this type of marketing environment can vary widely.
Some factors that influence a cultural environment include
people's opinions about their community, other social groups
and the company.
 6 Elements of micro-marketing
environments
• Micro-marketing environments often have a direct impact on
business operations. Learning about the components of
microenvironments can help a company decide how to handle
conflicts and improve relationships with external partners and
consumers. Here are some elements that comprise a micro-
marketing environment:
• 1. Suppliers: Suppliers provide raw materials, services or
goods to a company. The prices, service availability and
product quality that a supplier offers can affect the cost and
condition of products that customers purchase. Companies
often consider their suppliers to be their partners and may
expect suppliers to commit to delivering quality goods to
customers. Researching a variety of suppliers an help the
company determine which one may provide the product
quality and prices your customers are seeking
• 2. Distributors and resellers: Distributors help companies
store and deliver their goods, often using warehouses. They
also assist organizations by delivering products safely and on
time. They may represent a specific brand, especially if they
deliver to different outlets.
• Resellers may also deliver goods, but they often purchase
them from a company first before selling them for a profit. For
example, most retailers are resellers. To select the right
reseller to work with, a company could consider which
retailers best represent its brand and how that retailer might
help it reach its target market. Companies often choose both
distributors and resellers that have similar company values.
• 3. Partners: Partners are organizations that a company
collaborates with to develop a product, deliver a service or
provide a promotion. Typically, the members of a partnership
include two or more companies that may operate in similar
industries. However, a company may sometimes partner with
a business from a different industry to expand its customer
base.
• 4. Customers: Customers exercise a major influence on a
company's marketing environment. Companies may collect
information about customer behaviors and opinions to help
inform future business decisions. To manage this aspect of its
marketing environment, a company may monitor the changes
in customer preference and behavior and adjust its offerings
as needed. For example, if a company receives negative
feedback about a product, it might alter its product
development practices.
• 5. Competitors: A company's competitors are part of its
microenvironment because they directly affect daily business
operations. A company can determine its position in the
market to decide on strategies that can help it outperform its
competition. Competing businesses often share customers,
so it's helpful to monitor how the competitors are succeeding
to understand ways that the company you work for might
improve
• 6. The public: The public includes any person who
might engage with the company. The public can also
include potential investors and people who refer new
customers to the business. Understanding the public
as a group of potential customers can help you target
new markets to increase brand awareness.