1. Marketing Management Lecture 1 Introduction to Marketing Management
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2. What is Marketing? 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
organization and its stakeholders.
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3. 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.
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4. Definition of Marketing
Philip Kotler - “Marketing is Social & Managerial process by which Individuals & Groups obtain what they Need and Want through Creating, Offering and Exchanging products of the Value other”
Peter Drucker - Marketing is a social 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. For a managerial definition, marketing has often been described as “the art of selling products”
The American Marketing Association (AMA) - Marketing is the process of planning and executing the conception, pricing, promotion, & distribution of ideas, goods, & services to create exchanges that satisfy individual and organizational goals.
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5. Three Stages of Marketing Evolution in the United States.
Product Orientation
Some industries & organizations remain at the product-orientation stage
Product Orientation
Sales Orientation
Other industries & organizations have progressed only to the sales-orientation stage
Product Orientation
Sales Orientation
Market Orientation
Many industries & organizations have progressed to the market-orientation stage
Late 1800s Early 1930s Mid – 1950s s
Module 1
Introduction to Marketing Management

6. Product – Orientation Stage
Manufacturers in the product-orientation stage typically focused on the quality & quantity of output while assuming that customers would seek out & buy reasonably priced, well-made products.
In an era when the demand for goods generally exceeded the supply, the primary focus in business was to efficiently produce large quantities of product.
Finding customers was viewed as a relatively minor function.
Module 1
Introduction to Marketing Management

7. Sales – Orientation Stage
The world economic crisis of the late 1920’s (referred to as the Great Depression) changed the perception
Finds that the economic problem no longer was how to manufacture efficiently, but rather it was how to sell the resulting output
Just offering a quality product was no assurance of success
Managers realize to sell their products to consumers having limited resources & numerous options required substantial post production effort
The Sales-orientation stage was characterized by a heavy reliance on promotional activity to sell the products the firm wanted to make.
Module 1
Introduction to Marketing Management

8. Market – Orientation Stage
At the end of world war II there was strong pent-up demand for consumer goods created by wartime shortage
In an attempt to stimulate sales, firms reverted to the aggressive promotional & sales activities of the sales-orientation era
Sellers discovered that the war years had also changed consumers
In addition, the war efforts brought many women out of the home & into the work force for the first time
In addition the consumers had more choices
The technology that was developed during the war made it possible to produce much greater variety of goods
At this stage companies identify what customers want & tailor all the activities of the firm to satisfy those needs as efficiently as possible
Module 1
Introduction to Marketing Management

9. What is Marketed? Goods Services Events & Experiences Persons
Places & Properties
Organizations
Information
Ideas
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10. Figure 1.1 Structure of Flows in a Modern Exchange Economy
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11. Figure 1.2 A Simple Marketing System A.K.A. The Exchange Process
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12. For an exchange to occur….
There are at least two parties.
Each party has something that might be of value to the other party.
Each party is capable of communication and delivery.
Each party is free to reject the exchange offer.
Each party believes it is appropriate or desirable to deal with the other party.
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13. Core Marketing Concepts
Needs, wants, and demands
Target markets, positioning, segmentation
Offerings and brands
Value and satisfaction
Marketing channels
Supply chain
Competition
Marketing environment
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14. Needs - states of felt deprivation including physical needs for food, social needs for belonging and individual needs for self-expression. i.e. I am thirsty.
Wants - form that a human need takes as shaped by culture and individual personality. i.e. I want a Coca-Cola.
Demands - human wants backed by buying power. i.e. I have money to buy a Coca-Cola.
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15. New Consumer Capabilities
A substantial increase in buying power
A greater variety of available goods and services
A great amount of information about practically anything
Greater ease in interacting and placing and receiving orders
An ability to compare notes on products and services
An amplified voice to influence public opinion
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16. Figure 1.4 Holistic Marketing Dimensions
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17. Figure 1.5 The Four P’s
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18. Internal Marketing
Internal marketing is the task of hiring, training, and motivating able employees who want to serve customers well.
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19. Performance Marketing
Financial Accountability
Social Responsibility Marketing
Social Initiatives
Corporate social marketing
Cause marketing
Corporate philanthropy
Corporate community involvement
Socially responsible business practices
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20. Marketing Management Tasks
Develop market strategies and plans
Capture marketing insights
Connect with customers
Build strong brands
Shape market offerings
Deliver value
Communicate value
Create long-term growth
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21. Marketing Debate: Take a Position!
Does marketing shape consumer needs? or
Does marketing merely reflect the needs and wants of consumers?
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