Introduction to Marketing Management

Chapter - 1

Definitions of marketing

‘Marketing is the management process that identifies, anticipates and satisfies customer

requirements profitably’

The Chartered Institute of Marketing

What is Marketing?

• Social definition

A societal process by which individuals and groups obtain what they need and want through creating, offering and freely exchanging products and services of value with others

What is Marketing?

• Management definition

It is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational goals.

‘Marketing is the human activity directed at satisfying human needs

and wants through an exchange process’

Kotler 1980

‘The right product, in the right place, at the right time, and at the

right price’ Adcock et al

‘Marketing is a social and managerial process by which individuals and groups obtain

what they want and need through creating, offering and exchanging

products of value with others’Kotler 1991

Competition

• Potential and rival substitutes and offerings a buyer might consider.

• Competition can be viewed in various perspectives – brand, industry, form, generic

Marketing Environment

• Competition• Customers• Govt. policies• Suppliers• Trade

• Product• Import tariffs• Trends• Technology• Politics

Marketing Mix

• It is the tools that an organization employs to pursue its marketing objectives in the target market

• Product, Price, Place, Promotion

• 4 C’s – Customer solution, Cost, Convenience, Communication

Needs and Wants

• Needs are basic human requirements

• Wants are needs directed to specific objects/services that might satisfy the need

Product

• A product is any offering catered to satisfy needs and wants.

• A brand is when the product is from a known source.

Demand

• This is the wants for specific products backed by an ability to pay.

Implications of marketing

• Who are our existing / potential customers?

• What are their current / future needs?

• How can we satisfy these needs?• Can we offer a product/ service that the customer

would value?

• Can we communicate with our customers?

• Can we deliver a competitive product of service?

• Why should customers buy from us?

The marketing concept

• choosing and targeting appropriate customers

• positioning your offering

• interacting with those customers

• controlling the marketing effort

• continuity of performance

Competition

• Potential and rival substitutes and offerings a buyer might consider.

• Competition can be viewed in various perspectives – brand, industry, form, generic

Marketing Environment

• Competition• Customers• Govt. policies• Suppliers• Trade

• Product• Import tariffs• Trends• Technology• Politics

Marketing Mix

• It is the tools that an organization employs to pursue its marketing objectives in the target market

• Product, Price, Place, Promotion

• 4 C’s – Customer solution, Cost, Convenience, Communication

Successful marketing requires:

• Profitable

• Offensive (rather than defensive)

• Integrated

• Strategic (is future orientated)

• Effective (gets results) Hugh Davidson 1972

Marketing management process

• Analysis/Audit - where are we now?

• Objectives - where do we want to be?

• Strategies - which way is best?

• Tactics - how do we get there?

• (Implementation - Getting there!)

• Control - Ensuring arrival

Why is marketing planning necessary?

• Systematic futuristic thinking by management

• better co-ordination of a company’s efforts

• development of performance standards for control

• sharpening of objectives and policies

• better prepare for sudden developments