Getting Started:
Introduction and MM- I
Review
By
Dr . Nitika Sharma
Marketing – Definition
+ According to American Marketing Association, “ Marketing is
an organizational function and a set of process for creating,
communicating & delivering the value to customer and for
managing customer relationships in a way that benefits the
organization & its stakeholders.”
What is Marketing Management
+ 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.
Readings
+ [Link]
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Market
+ A market consist 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.
+ Consumer markets
+ Business markets
+ Global markets
+ Nonprofit/Government markets
Nature of Marketing
+ Marketing is Consumer-Oriented
+ Marketing starts and ends with consumer
+ Modern marketing precedes and succeeds production.
+ Modern marketing is the guiding element of business
+ Marketing is an art as well as a science
+ Marketing is a system
+ Exchange process is the essence of marketing
+ Marketing is goal oriented
+ Marketing is a process
Scope ( Functions) of Marketing
Functions of Facilitating
Function of Functions
Exchange Physical Supply
Buying &
Transportation Financing
Assembling
Selling & Storage or
Risk- taking
Diving Warehousing
Grading
Market
Information
Company Orientations/ Concepts
+ Production
+ Product
+ Selling
+ Marketing
+ Societal
Company Orientations Towards
the Marketplace
Consumers prefer products that are
Production
Production Concept
Concept widely available and inexpensive
Consumers favor products that
Product
Product Concept
Concept offer the most quality, performance,
or innovative features
Consumers will buy products only if
Selling
Selling Concept
Concept the company aggressively
promotes/sells these products
Focuses on needs/ wants of target
Marketing
Marketing Concept
Concept markets & delivering value
better than competitors
Concept Focus Means Ends
Achieve profits or
Quality product,
objectives by products
1. Product Products reasonable price, little
generating consumer
marketing effort
demand
Achieve profits or
Aggressive advertising
2. Selling Products objectives by generating
and selling efforts
sales volume
Achieve profits or
3. Marketing Customer needs Integrated marketing objectives through
customer satisfaction
Satisfy organizational
Customer satisfaction Constant search for
goals and
4. Societal-Marketing and long run public better products in terms
responsibilities for
welfare of appeal and benefit
society
Marketing vs Selling
Selling Marketing
1 Emphasis is on the product 1 Emphasis on consumer needs wants
2 Company Manufactures the product 2 Company first determines customers needs and wants and
first then decides out how to deliver a product to satisfy these
3 Management is sales volume wants
oriented 3 Management is profit oriented
4 Planning is short-run-oriented in 4 Planning is long-run-oriented in today’s products and terms
terms of today’s products and markets of new products, tomorrow’s markets and future growth
5 Stresses needs of seller 5 Stresses needs and wants of buyers
6 Views business as a good producing 6 Views business as consumer producing process satisfying
process process
7 Emphasis on staying with existing 7 Emphasis on innovation on every existing technology and
technology and reducing costs reducing every sphere, on providing better costs value to
8 Different departments work as in a the customer by adopting a superior technology
highly separate water tight 8 All departments of the business integrated manner, the sole
compartments purpose being generation of consumer satisfaction
9 Cost determines Price 9. Consumer determine price, price determines cost
10 Selling views customer as a last 10. Marketing views the customer last link in business as the
link in business very purpose of the business
Marketing Mix
+ Marketing Mix
may be defined as
the set of
controllable
marketing
variables/activities
that the firm
blends to produce
the response it
wants in the target
markets.
Marketing Environment
• The market environment is a marketing term and refers
to factors and forces that affect a firm’s ability to build
and maintain successful relationships with customers.
• Three levels of the environment are:
• Internal environment - forces within the company that affect its ability to
serve its customers.
• Micro environment – the industry in which a company operates and the
industry’s market(s).
• Macro environment - larger societal forces that affect the
microenvironment
Significance of Marketing
Environment
+ First Mover Advantages
+ Early Warning Signal
+ Customer Focus
+ Strategy Formulation
+ Change Agent
+ Public Image
+ Continuous Learning
Marketing ENVIRONMENT
Macro Environment
Micro Environment
Internal Environment
Financiers Mission / Objectives
Suppliers Management Structure Economic
Customers Internal Power Relationship Technological
Competitors Physical Assets & facilities Global
Public
Busine Demographic
Mktg Intermediaries ss Socio-Cultural
Political
Decisi
on image
Company
Human resources
Financial Capabilities
Technological Capabilities
Marketing Capabilities
Techniques of Environmental
Scanning
+ Environmental Threat and Opportunity Profile Analysis (ETOP)
+ Quick Environnemental Scanning Technique Analysis (QUEST)
+ SWOT Analysis
+ PEST Analysis
+ PESTLE Analysis
+ Marketing Research
5 C’s of Marketing Analysis
+ 5C Analysis is a marketing framework to analyze the
environment in which a company operates. It can provide
insight into the key drivers of success, as well as the risk
exposure to various environmental factors.
5Cs
Company Collaborators Customers Competitors Context
Customers
Total Available
Market (TAM)
Serviceable
Available
Market (SAM)
Serviceable
Obtainable
Market (SOM)
Porter’s Five Forces
Thank You
