Marketing Management

Safiullah Mengal IMS University

Safiullah Mengal
of Balochistan

IMS,UOB
 Safiullah Mengal IMS University of
Balochistan

RECOMMENDED BOOKS
• Marketing Management 14
• By
• PHILIP KOTLER
• KEVIN LANE KELLER
 Safiullah Mengal IMS University of
Balochistan

Defining Marketing for the 21st Century

• Formally or informally, people and organizations engage

in a vast number of activities we could call marketing.
• Good marketing has become increasingly vital for success. But
what constitutes good marketing is constantly evolving and
changing. The election of Barack
• Obama as the 44th President of the United States was attributed,
in part, to the adoption of new marketing practices.
 Safiullah Mengal IMS University of
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• The “Obama for America” presidential campaign combined a charismatic politician, a powerful message
of hope, and a thoroughly integrated modern marketing program. The marketing plan needed to
accomplish two very different goals: expand the electorate via broader messages while targeting very
specific audiences.
• Multimedia tactics combined offline and online media, as well as free and paid media. When research
showed that the more voters learned about Obama, the more they identified with him, the campaign
added long-form videos to traditional print, broadcast, and outdoor ads.
• The Obama team—aided by its agency GMMB—also put the Internet at the heart of the campaign,
letting it serve as the “central nervous system” for PR, advertising, advance work, fund-raising, and
organizing in all 50 states. Their guiding philosophy was to “build online tools to help people self
organize and then get out of their way.” Technology was a means to “empower people to do what they
were interested in doing in the first place.” Although social media like Facebook, Meetup, YouTube, and
Twitter were crucial, perhaps Obama’s most powerful digital tool was a massive 13.5 million–name e-
mail list. What were the results of these online efforts? About $500 million (most in sums of less than
$100) was raised online from 3 million donors; 35,000 groups organized through the Web site,
My.BarackObama.com; 1,800 videos posted to YouTube; the creation of Facebook’s most popular page;
and, of course, the election of the next President of the United States.
 Safiullah Mengal IMS University of
Balochistan

What is Marketing?
• Marketing is about identifying and meeting human and social
needs.
• One of the shortest good definitions of marketing is “meeting
needs profitably.”
• Marketing is a social process by which individuals and
groups obtain what they need and want through creating
and exchanging products and value with others…. PHILIP
KOTLER
 Safiullah Mengal IMS University of
Balochistan

• “When eBay recognized that people were unable to locate some of

the items they desired most, it created an online auction
clearinghouse.”
• When IKEA noticed that people wanted good furnishings at
substantially lower prices, it created knockdown furniture.
• These two firms demonstrated marketing know-how and turned a
private or social need into a profitable business opportunity.
 Safiullah Mengal IMS University of
Balochistan

• The American Marketing Association offers the following formal

definition:
• “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”
 Safiullah Mengal IMS University of
Balochistan

• Marketing management takes place when at least one party to a

potential exchange thinks about the means of achieving desired
responses from other parties.
• Thus we see marketing management as “the art and science of
choosing target markets and getting, keeping, and growing
customers through creating, delivering, and communicating
superior customer value”
 Safiullah Mengal IMS University of
Balochistan

What is Market?
• “A market consists of all the potential
customers sharing a particular need or
want who might be willing and able to
engage in exchange to satisfy that need
or want” (Philip Kotler).
 Safiullah Mengal IMS University of
Balochistan

Marketing……..
The essence of Marketing is a transaction - an exchange-
intended to satisfy human needs and wants. There are
three elements in the marketing process :
(A) MARKETERS
(B)WHAT IS BEING MARKETED
(C) TARGET MARKET
 Safiullah Mengal IMS University of

Marketing Concepts
Balochistan

Needs:
• The most basic concept underlying marketing is that of human
needs.
• Human needs are states of felt deprivation.
• Human have many complex needs:
• Physical needs for food, clothing, warmth, and safety
• Social needs or belonging and affection
• Individual needs for knowledge and self – expression
Wants:
• Want are the form taken by human needs as they are shaped by
culture and individual personality.
• People have almost unlimited wants but limited resources.
• They want to choose products that provide the most value and
satisfaction for their money.
Demands:
• When backed by buying power, wants become demands.
• Consumers view products as bundles of benefits and choose
products that give them the best bundle for their money.
 Safiullah Mengal IMS University of
Balochistan

Marketing Concepts…..
Product:
• Anything that can be offered to a market to satisfy a
need or want.
• The concept of product is not limited to physical objects
– anything capable of satisfying a need can be called a
product.
Services:
• In addition to tangible goods, products also include
services, which are activities or benefits offered for sale
that are essentially intangible and do not result in the
ownership of anything.
 Safiullah Mengal IMS University of
Balochistan

Marketing Concepts…..
Exchange :
• The act of obtaining a desired object from someone by offering something in
return .
• Exchange is the process of obtaining a desired product from someone by
offering something in return.
• For exchange potential to exist, five conditions must be satisfied:
• (1) there are at least 2 parties,
• (2) each party has something that might be of value to the other party,
• (3) each party is capable of communication and delivery,
• (4) each party is free to accept or reject the exchange, and
• (5) each party believes it is appropriate or desirable to deal with the other
party
 Safiullah Mengal IMS University of
Balochistan
Marketing Concepts…..

Transaction :
• A trade between two parties that involves at least two things of value, agreed –
upon conditions a time of agreement, and a place of agreement.
Relationship marketing :
• The process of creating, maintaining, and enhancing strong, value – laden
relationships with customers and other stakeholders.
Marketers and Prospects:- A Marketer is someone who seeks a response-attention ,a
purchase, a vote, a donation-from another party, called the prospect. If two parties
are seeking to sell something to each other, we call them both marketers
 Safiullah Mengal IMS University of
Balochistan

Marketing Concepts….
• Target Market: a particular group of consumers at which a
product or service is aimed.
• Positioning: A marketing strategy that aims to make a brand
occupy a distinct position, relative to competing brands, in the
mind of the customer
• Segmentation: is the process of dividing a market of potential
customers into groups, or segments, based on different
characteristics.
 Safiullah Mengal IMS University of
Balochistan

Marketing Concepts….
• Brand: is a set of perceptions and images that represent a
company, product or service.
• Offering: is the total offer to your customers, is more than the
product itself and includes elements that represent additional
value to your customers, such as availability, convenient delivery,
technical support or quality of service.
• Value: also known as customer-perceived value, is the difference
between a prospective customer's evaluation of the benefits and
costs of one product when compared with others.
 Safiullah Mengal IMS University of
Balochistan

• Marketing channel: is the people,

organizations, and activities necessary to
transfer the ownership of goods from the point
of production to the point of consumption.
• Supply chain: is longer channel stretching
from raw materials to components to final
products that are carried to final buyers.)
• Competition: is the rivalry between companies
selling similar products and services with the
goal of achieving revenue, profit.
• Marketing environment: refers to factors
and forces that affect a firm's ability to build and
maintain successful customer relationships
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Demand States
• Eight demand states possible:
• Negative demand - consumers dislike the product and may even
pay to avoid it. Dental Work Vaccination
• Nonexistent demand - consumers may be unaware of or
uninterested in the product. Foreign Language Courses
• Latent demand - consumers may share a strong need that cannot
be satisfied by an existing product. Harmless Cigarettes, Fuel-
Efficient Cars
• Declining demand - consumers begin to buy the product less
frequently or not at all. print media would be classified as a dying
industry, CD Players etc
 Demand States… Safiullah Mengal IMS University of
Balochistan

• Irregular demand - consumer purchases vary on a seasonal,

monthly, weekly, daily or even hourly basis. The best example of
irregular demand is seasonal products like umbrellas, air conditioners
or resorts.
• Full demand - consumers are adequately buying all products put into
the marketplace. Changing Preference, Increasing Competition.
• Overfull demand - more consumers would like to buy the product
than can be satisfied. Demarketing
• Unwholesome demand - consumers may be attracted to products
that have undesirable social consequences. Cigarettes
• Alcohol, Best example of unwholesome demand are cigarettes, alcohol,
pirated movies, guns etc.
 Types of Markets Safiullah Mengal IMS University of
Balochistan

• Consumer Markets: Companies selling mass consumer goods and services such as soft drinks,
cosmetics, air travels,
• Business Markets: is a marketing practice of individuals or organizations (including
commercial businesses, governments and institutions). It allows them to sell products or services to other
companies or organizations that resell them, use them in their products or services or use them to support
their works.
• Global Markets: The changes in the cost of transportation, government policies and the overall
need for expansion have given a push to globalization. The strategies of global market companies
may differ from each other but the core concept is the same.
• Most global marketing companies work on one fundamental. “Think local, act global”. The company
which comes at the top of my mind is McDonalds and Coca Cola. Both known for their global
presence as well as for the way they customize their message based on the country they are in.
• Government or non profit markets: The government market mainly involves Government
offices, army, navy and other government departments.
• The non profits on the other hand may involve groups based on different beliefs some of which really
have an excellent brand name and are recognized by several companies. Both of these entities have a
limited purchasing budget and hence the price of products is important. Accordingly the
purchase process is organized.
 GOODS PLACES

SERVICE
S
EXPERIENCES EVENT
S
PERSONS
PROPERTI
ES INFORMATION

ORGANIZATION
S IDEAS
 Safiullah Mengal IMS University of
Balochistan

What is Marketed
• 1.Goods: Physical good constitute the bulk of most countries’
production and marketing efforts. Each year companies market
cars, trucks, television sets, machine tools, industrial chemicals ,
watches , cosmetics, and various other mainstays of a modern
economy.
• 2.Services: Services include the work of airline, hotels, car rental
firms, barbers and beauticians, maintenance and repair people,
and accountants.
 Safiullah Mengal IMS University of
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What is Marketed……..
• 3.Events: Marketers Promise time-based events, such as major
trade shows, artistic performances. Marketers promote time-
based events, such as trade-shows, artistic performance, Asian
Games, Sport-events etc.
• 4.Experiences: An amusement park or a water park represents
experiential marketing.
• 5.Persons: Celebrity marketing is a major business. To-day,
every major film star has an agent, a personal manager and ties to
a public relations agency. For Examples, artists, musicians,
physician etc.
 Safiullah Mengal IMS University of
Balochistan

What is Marketed……..
• 6.Organisations: Organizations actively work to build a strong,
favourable and unique image in the minds of their target publics.
Universities, museums, performing arts organisations and non-
profits all use marketing to boost their public images and to
compete for audiences and funds.
• 7.idea:Every market offering includes a basic idea. “In the
factory, we make cosmetics; in the store we sell hope.” Social
marketers are busy in promoting such ideas
 Safiullah Mengal IMS University of
Balochistan

What is Marketed……..
• 8.Places:Cities, states, regions and whole nations compete
actively to attract tourists, factories, company headquarters and
new residents. Further examples: commercial banks, local
business associations, real estate agents, Economic development
specialists etc.
 Safiullah Mengal IMS University of
Balochistan

What is Marketed…….
• 9. Properties: Properties are intangible rights of ownership of
either real property (real estate) or financial property (stocks,
bonds etc.). Properties are bought and sold, and this requires
marketing.
• 10.Information:Information can be produced and marketed as
a product. This is essentially what schools and universities
produce and distribute at a price to parents, students and
communities. For examples, magazines, encyclopedias, news-
papers etc. supply information.
• Ideas
 Safiullah Mengal IMS University of
Balochistan

MARKETING PHILOSOPHIES
• The role that marketing plays within a company varies according to the
overall strategy and philosophy of each firm.
• There are five alternative concepts under which organizations conduct their
marketing activities:
▫ Production concept
▫ Product concept
▫ Selling concept
▫ Marketing concept
▫ Societal marketing concepts
 Safiullah Mengal IMS University of
Balochistan

Production Concept
• The philosophy that consumers will favor
products that are available and highly affordable
and that management should therefore focus on
improving production and distribution
efficiency.
 Safiullah Mengal IMS University of
Balochistan

Product Concept
The philosophy that consumers will favour products that offer the
most quality, performance, and innovative features.
 Safiullah Mengal IMS University of
Balochistan

Selling Concept
The idea that consumers will not buy enough of the organization’s
products unless the organization undertakes a large – scale selling
and promotion effort.
 Safiullah Mengal IMS University of
Balochistan

Marketing Concept
The marketing management philosophy that holds that achieving
organizational goals depends on determining the needs and wants
of target markets and delivering the desired satisfactions more
effectively and efficiently than competitors do.
 Safiullah Mengal IMS University of
Balochistan

Societal Marketing Concept

The idea that the organization should determine the needs, wants,
and interests of target markets and deliver the desired
satisfactions more effectively and efficiently than competitors in a
way that maintains or improves the consumer’s and society’s well
– being.
 The Production
Concept
• Oldest Concept
• Consumers will prefer products that are widely
available & Inexpensive
• Concentrate on achieving high production efficiency,
low costs and mass distribution
• Eg: - Lenovo and Haier in China

The Product Concept

• Consumers favor products that offer most quality,

performance and innovative features.
• Make superior products and improve them over time.
• Caught in a “love-affair” with their product.
 The Selling Concept
• Consumers, if left alone, wont buy enough of the
organization’s products.
• Must undertake an aggressive selling and promotion
effort.
• Practiced most aggressively with unsought goods.
• Eg:- Insurance & Encyclopedias.
• Aim is to sell what they make rather than make what
the market wants.

The Marketing Concept

• Customer Centered instead of Product Centered.

• Not to find right customers for your products, but to
find right products for your customers.
• Eg:- Dell
• Reactive Market Orientation – Understanding and
meeting customers’ expressed needs
• Proactive Market Orientation - Understanding and
meeting customers’ latent needs
• Total Market Orientation
The Societal Marketing
Concept

• Societal marketing
concept goes beyond the
marketing concept
because it is concerned
with the long-term
benefits of the consumers
and the well-being of
society.
• It involves the control of
pollution, inflation,
shortages and neglect of
social services.