MARKETING
MANAGEMENT
Manish Kumar

IN THIS UNIT YOU WILL STUDY
ABOUT
• Marketing- Definition, Nature, scope and importance, Marketing management, core
concept of marketing, selling concept, production concept, modern marketing
concept, societal marketing

MEANING AND DEFINITION
• Generally marketing is understood to mean the sale and purchase of goods and services, but it is
too narrow view to understand it so.
• Marketing is a total system of interacting business activities designed to plan, price, promote and
distribute want-satisfying products and services to the present and potential customers.
William J. Stanton
• Marketing is an organizational function and a set of processes for creating , communicating and
delivering value to customers and for managing customer relationships in ways that benefit the
organisation and its stakeholders.
American Marketing Association

NATURE OF MARKETING
Specialized
business
function
Integrative
function
Adaption to
environment
variables
Social
desirable
function
Reflects the
business
function
Universal
function

SCOPE OF MARKETING
• Goods
• Services
• Experiences
• Events
• Persons
• Places
• Properties
• Organization
• Information
• Ideas

IMPORTANCE OF MARKETING
Importance of
marketing to the
society
Importance of marketing
to the firm

IMPORTANCE OF MARKETING TO THE
SOCIETY
Increase in
national
income
Protection
against
business
recession
Increase in
employment
opportunities
Decrease in
distribution
cost
Delivery of
standard of
living to the
society

IMPORTANCE OF MARKETING TO THE
FIRM
Helpful in business planning
and decision making
Helpful in communication
between firm and society
Helpful in
increasing profit

CORE CONCEPTS OF MARKETING
marketers
Relationship
and
networks
Cost and
satisfaction
ProductsMarket
Exchange
and
transaction
Value
Needs,
wants and
demands

MARKET
• The term market has traditionally been used to describe a place where buyers and sellers
gather to exchange goods and services, e.g., a fruit and vegetable market or stock market.
• A market consists of all the potential customers sharing a particular need or wants who
might be willing and able to engage in exchange to satisfy that need or want.
Philip Kotler

CLASSIFICATION OF MARKET

CLASSIFICATION ACCORDING TO
GEOGRAPHICAL AREAS
National
market
International
market
Regional
market
Local market

ON THE BASIS OF NATURE OF
TRANSACTION
Spot
Market
Future
Market

CLASSIFICATION ACCORDING TO
POSITION OF SELLERS
Secondary
Market

CLASSIFICATION ACCORDING TO
COMMODITIES AND GOODS
Stock MarketBullion Market
Manufactured
Goods market
Product
exchange
market

CLASSIFICATION ACCORDING TO
NATURE AND DEGREE OF COMPETITION
Perfect market
Imperfect market

ON THE BASIS OF BUSINESS
TRANSACTED
Retail market
Wholesale
market
Industrial
market

MARKETING FUNCTION
Function of exchange
• Buying
• Assembling
• Selling
Function of physical supply
• Transportation
• Storage and warehousing
• Choosing & motivating Channel
of distribution
Facilitating Function
• Financing
• Pricing
• Risk-Bearing
• Standardization
• Marketing information
• Managing Products
Other Function
Identifying opportunities
Promoting products and
services
Planning marketing activity

RELEVANCE OF MARKETING IN
DEVELOPING ECONOMY
• Marketing impact in people
• Improved quality of product
• Acceleration of economic growth
• Provide job opportunities
• Development of managers and entrepreneurs
• Improved quality of life
• Contribute to grows national product
• Economic resuscitation and business turnaround
• Industrial development
• Development of small scale industries
• Large scale consumption

PROBLEMS OF MARKETING IN
DEVELOPING ECONOMIES
• Low marketing education
• Preference for foreign products
• Low patronage for non essential products and services
• High cost of production
• Inadequate infrastructure
• Few competitive opportunities
• Over regulation of business by government
• Political instability and civil unrest

DIFFERENCE BETWEEN SALES AND
MARKETING
Basis of Difference Selling Marketing
Emphasis Emphasis on product Emphasis on consumer needs and wants
Approach
Company manufactures the product first and
then decides to sell it
Company firest determines customers needs
and wants and then decides on how to
deleiver a product to satisfy these wants
Orientation Management is sales volume oriented Management is Profit Oriented
Planning
Planning is short term oriented in terms of
todays products and markets
Planning is long term oriented in terms of new
products, tommorrows markets and future
growth
Need priority Stresses needs of a seller Stresses needs and wants of buyers
Philosophy Views business as a goods producing process
views business as a consumer satisfying
process
Technology
Emphasiis on staying with existing technology
and reducing cost
emphasis on innovation in every sphere, on
providing between value to the customer by
adopting a superior technology

MEANING AND DEFINITION OF
MARKETING MANAGEMENT
• Marketing management is a compound word ‘Marketing plus management’.
Marketing is the total system of business activities while management is the art of
getting things done in a coordinated and harmonious way.
• Marketing management is the process if planning and executing the conception,
pricing and promotion and distribution of goods, services and ideas to create
exchanges with target groups that satisfy customer and organizational objectives.
Philip Kotler

OBJECTIVES OF MARKETING
MANAGEMENT
Creating new
customers
Raising the
standard of living
of the people
Satisfying the
needs of
customers
Determining the
marketing mix
Enhancing the
profitability of
the business

MARKETING MANAGEMENT
PROCESS

MARKETING CONCEPTS: MARKETING
,MANAGEMENT ORIENTATIONS
Product Concept

PRODUCTION CONCEPT
• Production concept is a concept where goods are produced without taking into
consideration the choices or tastes of the customers.
• The production concept is the management philosophy, which believes and
operates with the guiding force that the consumer will prefer those products which
are conveniently available in adequate quantity and are affordable
• There is fair amount of competition and competing products are sold with complete
knowledge of the products available in market.
• The manufacturers should maintain availability of sufficient quantity of products and
consistency in quality.

PRODUCT CONCEPT
• The product concept is management philosophy that consumers generally prefer
those products in the market which offer the best in terms of quality and price and
essentially all organisations in marketing business try to produce and provide
sustainable improved quality products.
• The product concept is somewhat different from production concept. Whereas the
production concept seeks to win markets and profits via high volume of production
and low unit costs of production, the product concept seeks to achieve the same
result via product excellence.

SELLING CONCEPT
• Many organisation follow the selling concept, which holds that consumers will not
buy enough of the organisation's products unless it undertakes a large scale selling
and promotion effort.
• The selling concept is a management philosophy based on the premises that
consumers generally do not buy products that are not essential or don not buy in
sufficient quantity unless the organisation itself puts efforts to create awareness and
interest of the consumer in its products and makes them inclined positively to buy
these products.

MODERN MARKETING CONCEPT
• The marketing concept as the management philosophy emerged in 1950s and early 1960s,
when the organisation started working out in different segments of the market and found
that market characterises and their needs are not similar, they are not static and changing
with time and place.
• The marketing concept is a management philosophy that focuses on the needs and wants of
the customers of the target markets and the organisation would need to find products and
services that will prove to be useful solution to solve the requirement of such needs and
wants and deriving the satisfaction of the customers.

FACTOR INFLUENCING MODERN
MARKETING CONCEPT
Population
growth
Increasing
households
Disposal
income
Surplus income
Technological
development
Mass
communication
media
Credit
purchase

LIMITATIONS OF MODERN
MARKETING CONCEPT

SOCIETAL MARKETING CONCEPT
• The societal marketing concept is an enlightened marketing concept that holds that
a company should make good marketing decisions by considering consumers
wants, the company’s requirements, and society’s long term interests. It is closely
linked with the principles of corporate social responsibility and of sustainable
developments.
• Societal marketing place emphasis on the long-term well being of society as a
whole, incorporating this goal into the overall marketing plan of a company.
• The societal marketing concepts calls on marketers to balance three considerations
in setting their marketing policies-company profits, consumer wants, and society’s
interests.

HOLISTIC MARKETING CONCEPT
• Holistic marketing concept is a part of the series on concepts of marketing and it
can be defined as a marketing strategy which considers the business as a whole and
not as an entity with various different parts.
• According to holistic marketing concept, even if a business is made of various
departments, the departments have to come together to project a positive &
united business image in the minds of the customer. Holistic marketing concept
involves interconnected marketing activities to ensure that the customer is likely to
purchase their product rather than competition.

KEY CONCEPT OF HOLISTIC
MARKETING CONCEPT
• Internal marketing – Marketing between all the departments in an organization
• Relationship marketing – Building a better relationship with your customers, internal
as well as end customers is beneficial for holistic marketing.
• Performance marketing – Driving the sales and revenue growth of an organization
holistically by reducing costs and increasing sales.
• Integrated marketing – Products, services and marketing should work hand in hand
towards to growth of the organization.