MM Unit I

Marketing -Definition
Market - “a place where buyers and sellers gather to buy and sell the products”.
Marketing is identifying and meeting human and social needs. One of the shortest
good definitions of marketing is “meeting needs profitably.”
“Marketing is an organizational function and a set of processes for creating,

capturing, communicating, and delivering value to customers and for managing
customer relationships in ways that benefit the organization and its stakeholders.”
- The American Marketing Association
Marketing Management-Marketing Management is the art and science of

choosing target markets and getting, keeping, and growing customers through
creating, delivering, Communicating superior customer value.
What Is Customer Value?
Customer value determines whether the customer feels like they
received enough value for the price they paid for the product/service.
The customer perceives as being superior and relevant to him and
hence he is willing to pay for purchase of the products or services
CV=TCBs-TCCs
(Customer Value=Total Customer Benefits - Total Customer Costs)
What is Marketed?
Physical goods
Services
Events
Persons
Places
Properties
 Ideas
Products(Goods) Vs Services
Goods
Goods are tangible in nature that they can touch, smell grip, etc. before buying them.
Services
Philip Kotler defined “The service as an activity or benefit, which one party can offer to another
party that is essentially intangible and does not result in the ownership of anything. The production
of the service may or may not be linked to a physical product.”
The services are of an intangible nature and cannot be seen, touched, grabbed, smelled, tasted, etc.
Characteristics of Services
 Intangibility
 Perishability
 Inseparability
 Variability
Key Differences between Goods and Services
Nature Goods are tangible and homogeneous in Services are intangible and
nature. heterogeneous in nature.
Ownership In case of goods, transfer of ownership In case of services, transfer of

is possible. ownership of title is not possible.
Consumption Production and distribution can be In case of services production,

separated from consumption in case of distribution and consumption occur at
goods. the same time.
Inventory nventory of goods is possible. It can be Inventory of services is not possible

kept in stocks for future sales. because of it intangible nature services
cannot be kept in stocks
Quality In case of goods, the quality of can be In case of services the quality cannot be
measured and compared with other measured.
goods.
Objectives of Marketing
 Fulfills customer satisfaction
 Increases sales volume
 Ensure Profitability
 Build organizational Goodwill
 Create Demand
 Enhance Product Quality
 Create Time and place utility
Nature of Marketing
Science as well as an Art
Managerial function
Economic function
Customer oriented
Social process
Exchange Process
System of interacting business activities
Network of Relationships
Dynamic Process
Importance of marketing
Helps in Transfer, Exchange and Movement of Goods
Helpful in raising and maintaining the standard of Living
Creates Employment Opportunities
Source of Income and Revenue
Acts as a basis for Making Decisions
Acts as a source of new Ideas
Helpful In Development of an Economy
Scope of Marketing
 Study the consumer needs and wants
 Study the consumer behavior
 Product planning and development
 Marketing Research
 Framing Pricing Policies
 Determination of Distribution Channel
 Promotional Decisions
 Aftersales Service
 Packaging and Labelling
 Customer Support Services
Core Concepts -Need, Want, Desire, Demand, Value &Exchange
Needs
“Needs” are basic human requirements like shelter, clothes, food, water, etc. which are essential for
human beings to survive.
According to Abraham Maslow’s Need hierarchy theory, needs are classified in to
1.Physiological Needs
2.Safety Needs
3.Social Needs
4.Esteem Needs
5.Self-actualization needs
Abraham Maslow’s Need Hierarchy Theory
Wants
A want is a desired by a customer that is not required for survive. As time passes,
people and location change, wants are changes accordingly.
Human wants can be varied depending on everyone's perception, environment,

culture, and society.
Key Differences
Needs are something that you must have, in order to live. On the contrary, wants are
something that you wish to have and add comforts in your life.
Needs represents the necessities while wants indicate desires.

Demands
Wants turn to be Demands when a customer is willing and having the ability
to buy that needs or wants. In other words, Demand means, if a customer is
willing and able to buy a need or a want.
Desire
The basic difference between wants and demands is desire. A customer may
desire something, but he may not be able to fulfill his desire.
Exchange
The exchange process is the act of obtaining a desired object from someone by
offering something of value in return.
Production Concept
Product Concept
Selling Concept
Marketing Concept
Societal Marketing Concept
Relationship Marketing
Production Concept
This concept is based on the efficient production process of a company.
 company can choose the production concept where it will utilize the economies
of scale. It will produce huge quantities of goods at lower costs and sell them in
all markets and inexpensive rates.
 The profits will come from the number of goods sold.
 Managers of production-oriented businesses concentrate on achieving

High production efficiency
Low costs, and
Mass distribution
Product Concept
The product concept recommends that shoppers will favor items that
have better quality, performance and attributes instead of an ordinary
product.
This concept places its emphasis on quality and innovation rather

than price and availability
The company will make sure their goods are of the best quality.
Company will look to maximise profit by promising quality products

Selling Concept
The selling concept holds the idea- “consumers will not buy enough of
the firm’s products unless it undertakes a large-scale selling and
promotion effort”.
Companies use promotion, advertising and publicity to convince the

consumer to buy their products.
Marketing Concept
The marketing concept holds that the key to achieving organizational goals is
being more effective than competitors in creating, delivering, and communicating
superior customer value to your target markets.
The marketing concept is a customer-centred philosophy. The job is not to find

the right customers for your product but to find the right products for your
customers.
Key differentiations between Selling and Marketing Concepts
Selling concept focuses on the needs of the seller
Marketing concept focuses on the needs of the buyer.
Selling is preoccupied with the seller’s need to convert his product into
cash
Marketing with the idea of satisfying the needs of the customer by

means of the product and the whole cluster of things associated with
creating, delivering,and finally consuming it.
Societal Marketing Concept
The societal marketing concept holds “marketing strategy should
deliver value to customers in a way that maintains or improves both
the consumer’s and society’s well-being”.
The Societal Marketing Concept puts human welfare on top before

profits and satisfying the wants.
Societal Marketing Concept
Relationship Marketing
The Relationship Marketing ensures the long-term retention of the customer. When
the company focuses on increasing the customer satisfaction by providing exactly
what the customer wants, then the customer is likely to stay longer with the brand.
Four key constituents for relationship marketing are

Customers
Employees
Marketing partners (channels, suppliers, distributors, dealers, agencies), and
Members of the financial community (shareholders, investors, analysts).

Benefits of Relationship Marketing
 Higher Customer Retention
 Increased Referrals
 Improved ROI
 Increased Competitive Advantage
 Enhanced Brand Reputation
Marketing Myopia
Theodore Levitt coined the term Marketing Myopia in 1960.
Levitt argues that companies are too focused on producing goods or services and
don’t spend enough time understanding what customers needs or wants. Therefore,
he “encouraged executives to switch from a production orientation to a consumer
orientation.”
Marketing myopia is a short-sighted and narrow-minded approach of marketing that

only focuses on specific attributes of the product or service while completely ignoring
the long-term goals such as product quality, customer needs, demand and
satisfaction.
Causes for Marketing Myopia
More focus on current sales
More focus on short term profits
Focus on short-term strategies
Not adopting the Technology
Lack of long term marketing vision
Failure to estimate the customer’s marketing pulse
How to overcome Marketing Myopia
Framing long-term goals
Include customers in companies marketing strategies
Conduct Extensive Research
Offer new and innovative products to customers
Fallow the updated technology
Review and refine companies Marketing Strategies
Recent Trends in Modern Marketing
1.Relationship Building and Customer Retention

2.Integrated Marketing Functions
3.Global Marketing
4.Services Marketing
5.Ethical Marketing Behaviour
6.Societal Marketing
7.Social Media Marketing
8.Digital marketing
Globalization means integrating the economy of a country with the Global/World
Economy.
Global Marketing is the process of conceptualizing and then conveying a final

product or service worldwide with the hopes of reaching the international
marketing community.
Service Marketing is simply defined as a phenomenon wherein a service or an

intangible commodity is promoted and marketed among the target audience.
Social Media Marketing
Social media marketing is the use of social media platforms to connect with your
audience to build your brand, increase sales, and drive website traffic.
The major social media platforms are

 Facebook
 Instagram
 Twitter
 LinkedIn
 YouTube
Benefits of social media marketing
Humanize our business
Generate new customers
Increase brand awareness
Build relationships
The essentials of a successful social media marketing strategy
Know the Knowledge of audience
Convey the message
Content Strategy
Regular activity
Digital Marketing
Digital Marketing is also called online marketing, is the promotion of
brands to connect with potential customers using the internet and
other forms of digital communication. This includes not only email,
social media, but also text and multi media messages as a marketing
channel.
Components of digital marketing
Search engine optimization (SEO).

Content marketing
Email marketing.
Mobile marketing.
Content Marketing is the strategy of creating and distributing valuable and relevant
content in order to attract ,gain and retain a clearly defined target audience with
the goal of generating profitable actions
Email marketing is marketing strategy that uses email as a tool to deliver

commercial messages and generate sales
Mobile marketing refers to the variety of ways that marketers can communicate
with consumers through channels they can access on their smartphones. This
includesText messages, In-app messaging, Mobile inbox

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Marketing -Definition

“Marketing is an organizational function and a set of processes for creating,

Marketing Management-Marketing Management is the art and science of

Ownership In case of goods, transfer of ownership In case of services, transfer of

Consumption Production and distribution can be In case of services production,

Inventory nventory of goods is possible. It can be Inventory of services is not possible

According to Abraham Maslow’s Need hierarchy theory, needs are classified in to

Human wants can be varied depending on everyone's perception, environment,

Needs represents the necessities while wants indicate desires.

Societal Marketing Concept

 The profits will come from the number of goods sold.

 Managers of production-oriented businesses concentrate on achieving

This concept places its emphasis on quality and innovation rather

Company will look to maximise profit by promising quality products

Companies use promotion, advertising and publicity to convince the

The marketing concept is a customer-centred philosophy. The job is not to find

Marketing concept focuses on the needs of the buyer.

Marketing with the idea of satisfying the needs of the customer by

The Societal Marketing Concept puts human welfare on top before

Four key constituents for relationship marketing are

Marketing partners (channels, suppliers, distributors, dealers, agencies), and

Members of the financial community (shareholders, investors, analysts).

Marketing myopia is a short-sighted and narrow-minded approach of marketing that

1.Relationship Building and Customer Retention

Global Marketing is the process of conceptualizing and then conveying a final

Service Marketing is simply defined as a phenomenon wherein a service or an

The major social media platforms are

Components of digital marketing

Search engine optimization (SEO).

Email marketing is marketing strategy that uses email as a tool to deliver

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