MODULE 1

Introduction to marketing management--Concept, nature and

importance of marketing; Evolution of marketing concept; Marketing
environment- micro environment of marketing and macro environment
of marketing - domestic marketing and international marketing.

Dr. Bushra
Assistant Professor
Lead college of Management
MARKETING?
MARKETING?
Digital Marketing
E-Marketing

E-Commerce

Social Media Marketing

Direct Marketing
 What is Marketing ?

Marketing refers to the activities of a company associated with buying,

advertising, distributing, or selling a product or service.

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.
AMERICAN MARKETING
ASSOCIATION
 MARKETING

Clients and
Customers Solution
Process

Product and
Value Services Clients
 COMPONENTS OF MARKETING
CONCEPT

a. Satisfaction of Customers: In the modern era, the customer is the focus of the
organization. The organization should aim at producing those goods and services, which
will lead to satisfaction of customers.

b. Integrated marketing: The functions of production, finance and marketing should be

integrated to satisfy the needs and expectations of customers

c. Profitable sales volume: Marketing is successful only when it is capable of maximizing profitable
sales and achieves long-run customer satisfaction
 Traditional Marketing

2 Major types of Marketing:

Modern Marketing
Traditional Marketing
Traditional Marketing Concept:

• Traditional marketing concept focuses on products only and it aims at

production and marketing of products and gaining more profit.

• Traditional marketing is profit-oriented.

• It is one dimensional as the only target of it is to sell the product and get a
profit
Advantages and Disadvantages
Advantages : Disadvantages :
•Opportunity for powerful creative efforts •Little interaction
•Easy to understand •Targeted customer is
•Easier reach to local target audience minimal
The most commonly used traditional marketing
strategies Traditional Marketing

Radio AD
Tv AD

AD Billboard
Traditional Marketing
Traditional Marketing
Modern Marketing
Modern Marketing Concept:

• Modern marketing concept focuses on customers’ needs and wants and it

aims to meet the customer’s satisfaction.
• Modern marketing is customer-oriented.
• It is multidimensional as along with selling products and making profit it also
emphasizes customer satisfaction, planning, after-sales service, and many
other variables.
• Most commonly used modern marketing strategies are:
1. Internet ads
2. E-mail marketing
3. E-commerce website
4. Use of social media
5. Marketing automation
Advantages and Disadvantages of Modern Marketing Concept:

Advantages :
•Higher ROI
•Deeper levels of customer engagement and targeting
•Cost effective
•Opened to larger and bigger markets

Disadvantages :
•Requires technical skill to be active in digital marketing and use of internet
•More costly to implement.
 INFLUENCER
Influencer marketing is a form
MARKETING: IS
of marketing where brands
collaborate with individuals INFLUENCER
who have a significant
following and influence on MARKETING AN
EFFECTIVE STRATEGY
social media platforms to
promote their products or
services. These individuals,
known as influencers, typically
have a dedicated and engaged
FOR REACHING
audience that trusts their
recommendations and
CONSUMERS, OR DOES
opinions.
IT ERODE TRUST AND
AUTHENTICITY?
 WHAT CAN BE MARKETED?
Ideas

Services
Goods Experiences

Events
Places
Persons

Organizations
Properties
Information
 GOODS

Physical goods which are

tangible in nature.

We can have so many

examples:

❖ Furniture
❖ Apparels
❖ Electronics
❖ Cosmetics
 SERVICES

Anything that is intangible in

nature and does not give
customer ownership of
anything.

Examples- Airlines, Banking,

Insurance, Doctors, Lawyers,
Teachers,

However there can be cases

where there are both goods
and services involved – Fast
food.
 EVENTS

Marketers promote time

based events

Examples-

❖ A musical show by a
famous singer
❖ World cup
❖ Olympics
❖ Auto Expo
 EXPERIENCES

❖ There are few

services which cant
be explained as it is
more of an
experience

❖ Examples-
▪ Amusement park
▪ Water park
▪ Zoo
▪ Theme Park
 PERSONS

❖ Celebrities

❖ Artists

❖ High profile persons

❖ They are brand in

themselves
 PLACES

❖ There are so many places and

countries who try to attract
more and more tourist.
❖ Infact tourism is their major
source of income
❖ Bihar-promoted Guru Gobind
Singh Ji, enlightenment place
❖ Madhya Pradesh – For wild life
and national parks
 PROPERTIES

❖ One of the common examples is

real estate land, houses,
apartments.

❖ There are some other examples

as well like stocks, bonds and
gold
 INFORMATION

❖ The best examples of this is

course
❖ You are paying for information
and knowledge
❖ Just like universities do they
charge premium price from
parents and students for better
education.
 IDEAS

❖ Look at cosmetic companies they

manufacture products but they
sell hope in market

❖ Look at amazon they sell

convenience

❖ Awareness for Aids, Eye donation

or donating blood
 ORGANIZATION

❖ Organizations work very hard for

their unique image.
❖ Quite a few companies use
corporate social responsibility
activities related to health,
education, women empowerment
to build their brands.
CORE CONCEPT OF
MARKETING
The concept of Need and Want

❖Need is a basic human requirement such as air, food,

water, clothing, shelter, etc.
❖the need becomes want when it is directed towards a
specific object.
 Different types of Needs

Stated Needs Real Needs Unstated Needs

Delight Needs Secret Needs

 The Big Question

Do Marketer Create Needs?

 Demand
❖ Demand is the base of selling any products or services.
❖ Demand are wants for specific products backed by an ability to
pay.
❖ Everyone dream of Mercedes but not everyone has the ability
to buy that.
❖ Any one can have willingness but ability to pay matters the
most for marketers.
 Demand & Corresponding job of
Marketing Manager
Philip Kotler has quoted eight different states of demand:

Negative Demand Irregular Demand

No Demand Full Demand

Latent Demand Overfull Demand

Declining Unwholesome
Demand Demand
 NEGATIVE DEMAND

❖Consumer dislike the product and even

pay to avoid it.
❖Example – health insurance.
 NO DEMAND

❖ When the target consumers are either not

aware about the product or they are not
interested in the product.

❖ For example, Air purifier

 LATENT DEMAND

❖ Consumers may have strong need that

cannot be satisfied by an existing .

❖ For example: Electric Vehicles

 DECLINING DEMAND

❖ Consumer begin to buy the product less

frequently or not at all

❖ Examples - Desktop
 IRREGULAR DEMAND

❖ The demand for certain products varies on the basis of

seasonality.
❖ For example, zoos remain vacant during the examination
days of the students and overfull in the days of their
summer vacations. Hotels and resorts in certain hill
stations are found in great demand during summer but in
the off-season, it’s difficult to find out a single consumer.
 FULL DEMAND

❖ Consumer are adequately buying all products put into the

market place.

❖ Examples- Medicines
 OVERFULL DEMAND

❖ Companies are not able to meet the demand of the

consumers.

❖ Example – Railway tickets

 UNWHOLESOME DEMAND

❖ The consumer is attracted to the product and may have

undesirable social consequences.

❖ Examples- Alcohol, Cigarettes

1. Which brand coined the slogan "Just Do It"?
a) Adidas b) Nike c) Reebok d) Puma

2. In what year was Coca-Cola first introduced?

a) 1886 b) 1901 c) 1923 d) 1950

3. Which company introduced the "Think Different" campaign featuring iconic

figures like Albert Einstein and Mahatma Gandhi?
a) MicrosoftWhichb)
brand coinedc)
Apple the slogan
IBM d)"Just Do It"? a) Adidas b) Nike c) Reebok d) Puma
Google

4. Which fast-food chain famously asked customers to "Have It Your Way"?

a) McDonald's b) Burger King c) Wendy's d) KFC

5. What brand launched the "Share a Coke" campaign, featuring personalized

bottles with people's names?
a) Pepsi b) Coca-Cola c) Dr. Pepper d) Sprite
6. Which company ran the highly successful "Dude,You're Getting a Dell" ad
campaign in the early 2000s?
a) HP b) Dell c) Lenovo d) Acer

7. Which car company used the slogan "The Ultimate Driving Machine"?
a) Ford b) Toyota c) BMW d) Mercedes-Benz

8. What brand's advertising famously stated, "Melts in your mouth, not in your
hands"? Which brand coined the slogan "Just Do It"? a) Adidas b) Nike c) Reebok d) Puma
a) Hershey's b) M&M's c) Cadbury d) Nestlé

9. Which company launched the "I'm Lovin' It" campaign, featuring catchy jingles
and golden arches?
a) Wendy's b) McDonald's c) Burger King d) Subway

10. Which tech giant's marketing slogan is "Think Different"?

a) Microsoft b) Apple c) Google d) IBM
Answers
b) Nike
a) 1886
b) Apple
b) Burger King
b) Coca-Cola
b) Dell
c) BMW
b) M&M's
b) McDonald's
b) Apple
MARKETING MANAGEMENT

• “Marketing management is the process of planning

and executing the concept, pricing, promotion, and
distribution of ideas, goods, and services to create
exchanges that satisfy individual and organizational
goods” (American Marketing Association)
• Marketing management has the task of influencing
the level, timing, and composition of demand in a
way that will help the organization achieve its
objectives.
MARKETING MANAGEMENT

• The marketing manager is someone who is perceived as

demand stimulator for the organization’s products. He has
to look into the level, timing and composition of demand in
such a way so that the organization’s objectives may be
achieved.
• Marketing managers can manage demand by carrying out
research in marketing and then planning the products
accordingly.
• They also decide about target markets, pricing, physical
distribution and promotion of the product.
SPECIFIC SET OF TASK THAT MAKE UP SUCCES S F UL MARK ET ING
MANAGEM E NT

Developing marketing strategies and plans

• A key task is to identify potential opportunities & core competencies. One have to
develop a concrete marketing plans that specify the marketing strategy and tactics going
forward.

Capturing marketing insights

• One need a reliable marketing information system to monitor their. marketing
environment so that they can continually assess market potential and forecast demand.

Connecting with customers

• As a marketer one have the task to consider how to best create value for its chosen
target markets and develop strong, profitable, long-term relationship with customers

Building strong brands

• One need a reliable marketing information system to monitor their marketing
environment so that they can continually assess market potential and forecast
demand

Source: Kotler, Keller and Opresnic, 2017)

SPECIFIC SET OF TASK THAT MAKE UP SUCCES S F UL MARK ET ING
MANAGEM E NT

Shaping the market offerings

• The product is at the hearts of the marketing program and includes the product quality,
design ,features , and packaging. A critical marketing decision related to the price.
Marketers must decide on wholesale and retail prices, discounts, allowances, and credit
terms.

Delivering value
• Marketers must determine how to deliver to the target market the value embodied in its
products and services. Marketers have to understand the various types of retailers,
wholesalers, etc, and how they make their decisions.

Communicating value
• As a marketer, one must also communicate to the target market the value of their
products and services.
Creating successful long-term growth
• Based on its product positioning, one must initiate new-product development, testing, and
launching. A company needs feedback and control to understand the efficiency and
effectiveness of its marketing activities.

Source: Kotler, Keller and Opresnic, 2017)

Evolution of
Marketing
Concept
 HOW IT ALL STARTED

Prod
Production Product
uct
Concept Concept
Con
cept

Selling
The Journey Concept

Societal
Marketing Marketing
Concept Concept
THE PRODUCTION
CONCEPT

• One of the oldest concepts

• It holds that consumers will prefer products that are
widely available and inexpensive.
• Companies focus on mass production, low cost, and
mass distribution.
• The concept was used by marketers for the
expansion of the market.
• The company tries to achieve economies of scale.
• Assume that consumers are primarily interested in
product availability and low prices.
THE PRODUCTION
CONCEPT

EXAMPLE

Henry Ford was the pioneer in the 1900s to expand

the automobile market on the basis of production
concept by providing his consumers only a single
version of car i.e. T-model in black colour. But the
marketers, after a certain period of time, could not get the
best of consumer patronage. The reason was that the
consumers were motivated to seek varieties while
purchasing. As a result, the production concept fails to serve
as the right marketing philosophy for the enterprises.
THE PRODUCT CONCEPT

• Consumers prefer high-quality products with innovative

features.
• Marketers focus is on doing a lot of research and
development on the product.
• Assume that a good product will definitely make its own
path.
• One of the major issues for this concept is falling in love
affair with their product and not realize what the market
needs.
• This particular situation is described as ‘marketing
myopia’
 MARKETING MYOPIA

Marketing myopia occurs when

sellers pay more attention to the
specific products they offer than
to the benefits and experiences
produced by the products.

They focus on the “wants” and

lose sight of the “needs.”
THE PRODUCT CONCEPT

EXAMPLE

General Motors designed a beautiful small-sized car with

each and every attribute in it but that was a total failure
because, at that time, that was not required by the
consumers. The marketers can add any kind of attribute to
their products but if the consumers are not aware of
regarding the availability, how can they go for purchasing that
particular product. This phenomenon gave birth to another
concept i.e. selling concept.
THE SELLING CONCEPT

• In this concept, companies already have product which

they want to sell
• Most of these products are unsought products
• The primary focus of marketer to put all efforts on
promotion and selling the product. ❖ aim is to sell what they
make rather than make
• The notion of the concept that the harder we sell the what the market wants.
most likely consumer will buy the product.
THE SELLING CONCEPT

• The problem with the selling orientation is that it

does not take consumer satisfaction into
account. In this situation, when consumers are
compelled to buy products that they don’t need
and consequently unhappiness is likely to be
communicated through negative word-of-mouth
that may dissuade other potential consumers from
making a similar purchase.
THE MARKETING
CONCEPT

• The idea is to find the right product for the customers

rather than the right customer for the product.
• identify the needs of the customer and develop the
product accordingly.
• In this concept, pull marketing will work rather than
push marketing.
 THE SOCIETAL
MARKETING CONCEPT

• As our society moves through the 1990s, the marketing

concept continues to take on new meanings. The old
and traditional concept of marketing has emphasised
and focused on the satisfaction of consumers’ needs
and wants to meet the objectives and goals of the
organisations.

• In this philosophy, emphasis is being placed on how

certain marketing activities and efforts affect society as
a whole in the era of limited resources, environmental
degradation, and global competition.
 THE SOCIETAL
MARKETING CONCEPT

• This philosophy puts a question mark whether

satisfying consumers’ need serve the long term
intervals of the society or not. Hence, the new concept
emerged as the societal marketing concept where it is
emphasised that besides satisfying consumer
needs, long run societal welfare has to be
considered by the marketers. The marketers
have to adopt social and ethical considerations
into their marketing practices.
 (I) MARKETING IS CUSTOMER ORIENTED

• Marketing begins and ends with the

customer.
• The job of marketing is not only to satisfy
the consumer but even to delight him/her.
All the activities of an organization must be
directed and focused toward the consumer.
 (II) MARKETING IS THE DELIVERY OF VALUE

• when a consumer derives satisfaction from a particular product on the

basis of the product’s overall capacity and performance is known as the
value in the consumer’s perception
• smartphone companies continuously innovate to deliver products with
advanced features and functionalities
• value is not just in the product itself but also in the convenience,
connectivity, and experience it provides to users
 (III) MARKETING IS A NETWORK OF
RELATIONSHIPS

• The customer is at the center stage and focus of all marketing

activities.
• Marketing entails building and managing relationships between
various stakeholders, including customers, suppliers, partners,
and the community. It emphasizes the interconnectedness and
interdependence of these relationships.
• Companies engage in CSR activities to demonstrate their
commitment to social and environmental causes.
• These initiatives strengthen relationships with customers,
employees, and communities, leading to positive brand
perception and long-term loyalty.
 (IV)MARKETING AS A SEPARATE
DISCIPLINE

• There used to be the days when marketing was treated as a part of economics.
But now it is recognised as a full-fledged separate discipline.
• When we talk of knowing consumer behaviour, it leads us to entirely a new
world of human behaviour and for that matter, a marketer must possess the
knowledge of psychology. Why a particular product is preferred by a consumer
and other declines it to use? The answer has in the study of culture. Therefore,
marketing has emerged as a separate discipline and got its strength from the
related areas like law, psychology, anthropology, sociology and statistics, etc.
others
 (V) MARKETING IS BUSINESS

• When it is said that marketing is business, the contention is that all

activities start from marketing i.e. through knowing consumers, and end
up on the consumers. It means the entire business revolves around the
marketing.
SCOPE OF MARKETING
 (I) MARKETING RESEARCH

• Without marketing research, no one can identify the needs and wants of the
consumers.
• For that purpose, research has to be carried out to analyse the consumer’s
needs, tastes, and preferences, the brand image of the product, and the
effectiveness of certain advertisements, etc. These are the major areas of
research where a marketing manager requires information to be successful in
the market because by knowing this information, he makes timely, accurate,
and better decision.
• The marketing research not only gathers information regarding certain
problem but also suggests corrective and action problems-oriented steps.
 (II)PRODUCT PLANNING AND
DEVELOPMENT

• A product is a bundle of utilities offered to

consumers to satisfy their needs.
• Through marketing research, a marketer is able to
know the needs of the consumers but what kind
of storage and transportation is required, it
depends upon the nature of the product.
• Product must be according to the requirement
and must also be according to the paying capacity
of the consumers. There are number of decisions
involved in this process like supplier of raw
material, packaging, storage, and distribution etc
 (III)PRICING

• The important function of a marketing manager is

to determine the price of a product.
• Price is always influenced by the cost, services
attached to it, government policy, competitors’
prices, and marketer’s requirement of profit
margin.
• A good pricing policy is a significant factor in
attracting consumers because price is the only ‘p’
of the marketing mix which generates revenue for
the organisations.
 (IV) FINANCING

• Financing of consumer purchasing has become an

important part of modern marketing. The
marketing manager plays an important role in the
finance department in this regard and
consequences thereto.
• In the era of global competition when there is
fierce competition and so many alternatives are
available to a customer, certain finance schemes
have become an important device to increase the
volume of sales.
 (V) INSURANCE

• When goods and services are exchanged from one hand to

another, from one place to another place, a large number of risk
factors are involved.
• Marketing has now spread its arms to cover these risks through
insurance activities.
• National calamities like floods and earthquakes or damage of
goods and services due to fire, theft, or accident, may cause big
losses and can hamper the entire business. The various
insurance companies provide protection against these risks by
getting a nominal amount of premium in return.
 (VI) ADVERTISING

• advertising has become an important instrument in the

hands of marketers.
• makes the consumers aware about the product, makes
them curious about the product, and then forces them
to action and thus promotes the sale.
• According to the American Marketing Association
“Advertising is a paid form of non-personal
presentation by an identified sponsor”.
• through advertising marketers can position their
products in the minds of the consumer through
various media like newspapers, magazines, television,
radio, hoardings, window displays, and internet, etc.
[Link]'s "Shot on iPhone" Campaign
(Ongoing): Showcasing user-generated content,
this campaign highlights the quality of iPhone
cameras, encouraging customers to share their
own experiences.
[Link]'s "Real Beauty" Campaign
(Ongoing): Dove's long-running campaign
challenges beauty stereotypes by celebrating real
women of all shapes, sizes, and ethnicities,
promoting self-confidence and inclusivity.
[Link]-Cola's "Share a Coke" Campaign
(Ongoing): Personalizing their bottles with
popular names, this campaign encouraged
consumers to share a Coke with friends and
family, driving engagement and sales.