1.
Dr. Shahzad Ahmad Khan
Email: shahzad.ahmad@riphah.edu.pk
Riphah School of Leadership
Riphah International University
Islamabad
CHAPTER :1
Marketing Management:
Analysis, Planning, Implementation and Control

2.
Marketing: The process of Planning & Executing the conception,
pricing, promotion and distribution of ideas, goods and services to
create exchanges that satisfy individual and organizational
objectives.
Marketing management: Marketing Management is the art and
science of choosing target markets, getting customers, keeping
them, and growing the demand for an organizations ideas, products,
and services by creating, delivering, and communicating superior
customer value.
Chapter 1

3.
*IMPORTANCE OF MARKETING
1. Marketing helps to achieve, maintain and raise the standards of
living
- Marketing is means through which production and purchasing
power are converted into consumption.
- Better marketing  Mass production
- Mass production  Low cost
- Low cost  More buying power  Higher standard of living
*

4.
*IMPORTANCE OF MARKETING
2. Marketing Increases employment opportunities
- Marketing involves various functions / sub-functions (Buying,
Selling, Transport, Warehousing, Financing, Risk management
etc)
- These functions create need for different specializations
- About 30-40% population depends directly or indirectly on
marketing
*

5.
*IMPORTANCE OF MARKETING
3. Marketing increases national income
- More purchasing power  increase in national income
4. Helps maintain economic stability & development
- By maintaining demand supply balance
5. Link between producer & consumer
6. Removes imbalance of supply & demand by transferring
surpluses
7. Helps create utilities of time, place & possession

6.
*IMPORTANCE OF MARKETING – Business Firms
1. Marketing Generates Revenue, by generating sales & thereby
profits
2. Marketing helps decision making process (what, when & how
much to produce, store or transport)
3. Helps change management & innovations

7.
The Core Concepts of Marketing
Needs, wants,
& demands
Products
(goods,
Services, Ideas)
Value, cost,
&
satisfaction
Exchange &
transactions
Relationships
& networks
Markets
Marketers &
prospects

8.
Needs, Wants & Demands
 Marketing starts with human needs & wants
 A human need is a state of deprivation of some
basic satisfaction
 Wants are desires for specific satisfiers of needs
 Demands are wants for specific products that are
backed by an ability & willingness to buy them

9.
Products
(Goods, Services, & Ideas)
 A product is any thing that can be offered to
satisfy a need or want – product can be
also called as offering or solution
 A product or offering can consist of as
many as 3 components:
 Physical good(s),
 Service(s), &
 Idea(s)

10.
Value, Cost & Satisfaction
 Consumers to choose among the many products that satisfy a given
need
 Example: A customer needs to travel for a work – he could use
several products for his need:
A bicycle, motor cycle, a car, a taxicab or a bus – these
alternatives will constitute his product choice set
Assume he would like to satisfy several additional needs in
traveling to work; namely needs, safety, ease, & economy.
Each product has a different capacity to satisfy his need set.
A bicycle is slower, less safe, & requires more effort than a car,
but a bicycle is more economical.
The customer has to decide to which product will deliver the
most total satisfaction
 Cost plays a secondary role

11.
Exchange & Transactions
 People can obtain products in one of 4 ways:
 Self-production – hungry people can relieve through hunting,
fishing, or fruit gathering
 By coercion – hungry people can wrest or steal food from
others
 By begging – hungry people can approach others & beg for
food
 By exchange – hungry people can offer a resource in return
for food such as money, a good, or a service
 Exchange must be seen as a process rather than as an event. 2
parties are engaged in exchange if they are negotiating and moving
toward an agreement. When an agreement is reached, we say that
a transaction takes place.

12.
Relationships & Networks
 Transaction marketing is part of a larger idea called relationship
marketing
 Relationship marketing is a practice of building long-term, trusting,
“win-win” satisfying relations with key parties-customers, suppliers,
dealers, distributors – in order to retain their long-term preference &
business
 They accomplish this by promising & delivering high quality, good
service, & fair prices to the other parties over time.
 The ultimate out come of relationship marketing is the building of a
unique company asset called a marketing network. A Marketing
Network consists of the company & all of its supporting stakeholders:
customers, suppliers, employees, distributors, retailers, ad agencies,
university scientists, & other with whom it had built mutually profitable
business relationships.

13.
Markets
 A concept of exchange leads to the concept of a 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
 Traditionally, a “Market” was the place where buyers & sellers
gathered to exchange their goods, such as a village square.
 Marketers, however, see the sellers as constituting the
industry and the buyers as constituting the market

14.
Marketers & Prospects
 When one party is more actively seeking an
exchange than the other party, we call the first
party a marketer & the second party a prospect
 A marketer is someone seeking one or more
prospects who might engage in an exchange of
values.
 A prospect is someone whom the marketer
identifies as potentially willing & able to engage in
an exchange of values

15.
Relationships & Networks
Two party Exchange Map Showing Want Lists of Both Parties
Construction Co.
(Prospect)
Caterpillar
(Marketer)
Construction Co. Want List
1.High-quality, durable equipment
2.Fair Price
3.On-time delivery of equipment
4.Good financing terms
5.Good parts & service
Caterpillar Want List
Good price for Equipment
On-time payment
Good word of mouth

16.
Marketplace
Physical
Store
Marketspace
Digital
Internet
Metamarket
Cluster of
complementary
products
Spread across a
diverse set of
industries
Automobile

17.
1- Production Concept
- Production in large volume, at low cost will be
acceptable to customers
- Concentrates on production efficiency
- May do well in distribution
- Rarely appreciated by customers
Company Orientations toward the
Marketplace

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2- Product Concept
- Focuses on design and quality of products
- Believes that customers will automatically buy products of high
quality
- R&D is essential element
Company Orientations toward the
Marketplace

19.
3- Selling Concept
- Believes that customers need to be persuaded
to buy the products
- Involves advertising, large scale promotions, publicity, discounts,
public relations etc.
- Does not take care of the need of the customer
Company Orientations toward the
Marketplace

20.
4- Marketing Concept
- Starts with determination of consumer needs
- Ends with satisfaction of these needs
- Organizational activities revolve around customer
- Products & Services are designed to serve
customer needs
- Satisfied customer will only produce profits
Company Orientations toward the
Marketplace

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Features of Marketing Concept
1. Consumer Orientation
2. Integrated management action
3. Consumer Satisfaction
4. Realizing organizational goals including profits

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Benefits of Marketing Concept
1. Long Term success
2. Faster penetration
3. Better Products
4. Boosts creativity
5. Integrated functions
6. Mostly in profits
7. Better growth of employees
8. Contributes to overall growth of the society

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• 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 Production
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 Product Concept

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• 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 Selling 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 Marketing Concept

25.
The holistic marketing concept is based on the
development, design, and implementation of
marketing programs, processes, and activities that
recognize their breadth and interdependencies.
Holistic marketing acknowledges that everything
matters in marketing—and that a broad, integrated
perspective is often necessary. Figure 1.3 provides
a schematic overview of four broad components
characterizing holistic marketing: relationship
marketing, integrated marketing, internal marketing,
and performance marketing.

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*

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*
Four Cs of Marketing
 Customer solution (Product)
 Customer cost (Price)
 Convenience (Placement)
 Communication (Promotion)

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Developing Marketing Strategies & Plan
Capturing Marketing Insights
Connecting with Customers
Building strong brands
Shaping the market offering
Delivering Value
Communicating Value
Creating Long-Term Growth

29.
Thanks