MARKETING MANAGEMENT
2013 – 15 Batch
Term - I
07/20/21 1 Dr. HG
Kotler on Marketing
Marketing is everywhere. Formally or
informally, people and organizations
engage in a vast number of activities that
could be called marketing. Good
marketing has become an increasingly
vital ingredient for business success. And
marketing profoundly affects our day-to-
day lives. It is embedded in every thing we
do – from the clothes we wear, to the
websites we click on, to the ads we see.
07/20/21 2 Dr. HG
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.
07/20/21 3 Dr. HG
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.
07/20/21 4 Dr. HG
PRODUCTION ORIENTATION
It is too much faith in mass production.
Mass production industries often feel impelled to produce all
they can.
Actually, the declining unit cost and the rise in output is
irresistible.
Here, mass production generates great pressure to move the
product with the result that selling becomes the focus and not
marketing.
Hence, management focuses on production and distribution
efficiency.
07/20/21 5 Dr. HG
So this concept hold that the consumer will favour those
products that are widely available and low in price.
This may be true only under two circumstances i.e.
Where demand for the product exceeds supply, and
Where the product’s cost is very high and has to be
brought down through increased productivity.
07/20/21 6 Dr. HG
PRODUCT ORIENTATION
The management perceives that product quality holds the
key to the organisational success.
Interestingly, quality in most cases is as perceived by the top
management, and not by the customer.
Generally, the top management is often overwhelmed by the
profit possibilities of technical and R&D efforts. Hence, the
organisation denotes its energy to make continuous product
improvements.
07/20/21 7 Dr. HG
SELLING ORIENTATION
Here, the management, believes that success lies in
pushing the product from the production floor to the
customer.
Hence, companies aggressively put effort in
promotion and selling rather than any other emphasis.
(They make a lot of noise in the market place).
07/20/21 8 Dr. HG
MARKETING ORIENTATION
Here, the company believes if it has to attain
organisational goals.
it needs to first identify the needs and wants of the
consumer.
deliver the products much more efficiently and
effectively than the competitors.
in creating, delivering, and communicating superior
customer value to its chosen target markets.
07/20/21 9 Dr. HG
HOLISTIC MARKETING
Holistic Marketing concept is based on the
development, design and implementation of marketing
programmes, processes, and activities that recognizes
their breadth and interdependencies.
The four components of holistic marketing are
relationship marketing, integrated marketing, internal
marketing and performance marketing.
07/20/21 10 Dr. HG
Relationship marketing aims at building mutually
satisfying long-term relationships with key parties
customers, suppliers, distributors, and other
marketing partners in order to earn and retain their
business.
Market must create prosperity among all these
constituents and balance the returns.
07/20/21 11 Dr. HG
Integrated Marketing – The marketer’s task is to devise
marketing activities and assemble fully integrated
marketing programmes to create, communicate, and
deliver value for consumers.
Internal Marketing – Internal Marketing is the task of
hiring, training and motivating able employees who
want to serve customers well.
Internal marketing requires vertical alignment with senior
management and horizontal alignment with other
departments, so everyone understands, appreciates, and
supports the marketing efforts.
07/20/21 12 Dr. HG
Performance Marketing – Requires understanding the
financial and nonfinancial returns to business and society
from marketing activities. Eg. : market share, customer
loss rate, customer satisfaction, product quality etc.,
Financial Accountability - Marketers are increasingly
asked to justify their investments in financial and
profitability returns.
Recognizing that much of their firm’s market value comes
from intangible assets, particularly brands, customer base,
employee, distributor and supplier relations, and
intellectual capital.
07/20/21 13 Dr. HG
Social Responsibility Marketing - The organization’s
task is to determine the needs, wants, and interests of
target markets and satisfy them more effectively and
efficiently than competitors while preserving or
enhancing consumers’ and society’s long-term well
being.
07/20/21 14 Dr. HG
VALUE DELIVERY PROCESS
The value creation and delivery sequence process consists
of five parts :
1)Assessing market opportunities and customer value,
which involves environment scanning and developing
insights about customer needs, wants, and motives.
2)Choosing the value includes critical decisions pertaining
to segmenting, targeting, positioning, and branding, which
is the essence of strategic marketing.
07/20/21 15 Dr. HG
3. Designing value relates to decision involving product /
service strategy, new offerings, and pricing.
4. Delivering value focuses on distribution and access
issues.
5. Communicating value through integrated marketing
communication, choosing among the various choices in
mass and personalized media.
07/20/21 16 Dr. HG
Value Chain – Michael Porter proposed the value
chain as a tool for identifying ways to create more
customer value.
The value chain identifies nine strategically relevant
activities that create value and cost in a specific
business. These nine value creating activities consists
of five primary activities and four support activities.
07/20/21 17 Dr. HG
Primary activities cover the sequence of bringing
materials into the business (inbound logistics)
converting them into final products (Operation)
shipping out final products (Outbound logistics)
marketing them (marketing and sales) and servicing
them (Service).
07/20/21 18 Dr. HG
The support activities – procurement, technology
development, human resource management and
firm infrastructure are handled by specialized
departments.
The firm’s task is to examine its costs and
performance in each value – creating activity & look
for ways to improve it.
07/20/21 19 Dr. HG
The elements that contribute to customer value:
Product (features, brand name, design, packaging,
warranties, etc) services after the sale (Delivery,
training, maintenance) the personnel who assist in
purchase decision (helpful, knowledgeable, pleasant)
image of the brand sold (quality, strength of brand in
market place).
07/20/21 20 Dr. HG
Costs incurred include the value of the money that
is exchanged for the product, the search time
(information establishing and comparison of
important criteria) effort cost (comparison shopping)
and psychic cost.
07/20/21 21 Dr. HG
Core Competencies
It refer to areas of special technical and production
expertise, distinctive capabilities to describe
excellence in broader business processes.
Competitive Advantage
Is a company’s ability to perform in one or more
ways that competitors can not or will not match.
07/20/21 22 Dr. HG
