Marketing Management

Formal Definition of Marketing:- Marketing is an

organizational function and a set of processes for creating,
communicating and delivering values to customers and for
managing customer relationships in ways that benefit the
organization and its stakeholders.

Thus we see Marketing management as the art and science

of choosing target markets and getting, keeping and
growing customers through creating, delivering and
communicating superior customer value.
Social Definition of Marketing:- 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.

Managers sometimes think of marketing as

“ the art of selling product” but selling is only
the tip of the Marketing iceberg.
Peter Drucker, a leading management
theorist puts it as:-
There will always, one can assume, be
need for some selling. But the aim of
marketing is to make selling superfluous.
The aim of Marketing is to know and
understand the customer so well that the
product or service fits him and sells itself.
Ideally, marketing should result in a
customer who is ready to buy. All that should
be needed then is to make the product or
service available.
What is Marketed?
Marketing people market 10 types of entities:-

Goods:- cars, televisions etc.

Services:- Work of airlines, hotels, car rental firms,

etc.

Events:- Time based events. Ex:- Major Trade

shows, Artistic Performances, etc.

Experiences:- An amusement Park or a Water

Park, Theme Restaurant that creates the ambience
of a village of a state, etc.
Person:- Celebrity Marketing is a major business.
Ex:- Artistes, Musicians, CEOs, Sportspersons etc.

Places:- Cities, States, Regions and even whole

nations compete actively to attract tourists,
factories, Company Head Quarters, etc. Ex:-
Bangaluru:- Silicon Valley of India. Tourism
industry:- Kerela- Marketed as ‘God’s own country.
Govt. of India – Incredible India.

Properties:- Properties are Intangible rights of

ownership of either real property (Real Estate) or
Financial property (Stocks & Bonds)
Organizations:- Organizations also market
themselves to build their image in the market. Ex:-
Philips:- ‘Sense the Simplicity’ campaign after
research among the customers world – wide.

Information:- Information can be about anything

and everything. Ex:- Schools, Colleges, Hospitals,
Packaging.

Ideas:- Every market offering includes a basic idea.

Ex:- Charles Revson of Revlon once observed– ‘ In
the factory, we make cosmetics; in the store we sell
hope’. Even social marketers are now busy
promoting such idea by creating awareness about
AIDS, encouraging family planning and
• Good Marketing is no accident, but a result of Careful
Planning & Execution. It is both Art & Science. – there
is constant tension between its formulated side and
creative side.

• Importance :- Financial success often depends upon

marketing ability. Other business functions will not really
matter if there isn’t sufficient demand for product &
services. Hence now marketing has been given equal wait
age.
Example:- Xerox
Nirma Washing Powder.
The Scope of Marketing :- Marketing is about
identifying and meeting human and social needs.
Shortest definition of marketing can be “ Meeting
Needs Profitably.
Example :- eBay – Online auction clearing house.
Evolution of Marketing

Development of marketing is dependent on the

development of society and economy. In purely agrarian
economy the people were largely self- sufficient because
they grew their own food, made their own cloths, and
built their own shelter and tools.

There was neither surplus nor deficit; so the need for

exchange or marketing was not felt up to a large extent,
as time passed, people tried to concentrate on producing
more and more.

The result was excess of production than the individual

need.
I. Production Orientation:
During the first fifty years of operation other it’s
founding in the 1860s, the principal goal of the Pillsbury
Company was production. ‘We manufacture flour’ was
the philosophy and the self-image of the company.

II. Sales Orientation:

During the 1930s, the emphasis at Pillsbury shifted from
production to sales. In addition to seeing themselves as
manufacturers of flour, management began, to realise
that ‘we sell flour’. The company created first time, a
research department for the study of consumer’s needs
habits and motivations.
III. Marketing Orientation:
After Second World War, Pillsbury realizes that the wheel
of production keeps on moving by the belt of marketing.
Instead of trying to sell whatever products the Pillsbury
focused on determining what products consumer really
wanted.

When it was learned that housewives wanted more finished

products, such as readymade desserts and biscuits,
entirely new divisions were developed to meet consumers’
needs. The customer orientation of marketing was viewed
as essential for business success.
Marketing management philosophies
Marketing philosophy is the thought process of the top level
management [TLM], according to which goals of an
organization can be best achieved through identification and
satisfaction of the stated and unstated needs and wants of the
customer.

1. Production Philosophy:
Production philosophy, which is based on the fact that
consumers favour products that are available and affordable.
Concentration on production efficiency and effective
distribution networks outweigh the customer’s actual needs
and wants. This is used primarily when demand exceeds supply
and the focus is on finding production methods that can bring
the price down to attract more customers.
2. Product Philosophy:
Product philosophy, which is based on ways to improve the
quality, performance, and features, packaging, schemes
etc., to attract buyers. This philosophy tends to spend too
much time adding features to their products, rather than
thinking about what people actually need and want.

3. Selling Philosophy:
Selling philosophy, which places the focus on sales rather
than what people actually need or want. Most of the time
the product is misrepresented which results in high
customer dissatisfaction. This is, invariably for the short run
success and quick profits.
4. Marketing Philosophy:
Marketing philosophy, this focuses on what people need
and want more than the needs of the seller. This concept is
about the importance of satisfying the customer’s needs to
achieve company success. Products are developed around
those needs and wants.

5. Societal Marketing Philosophy:

Societal marketing philosophy, which not only uses the
same philosophy as the marketing concept, but also
focuses around the products benefit to the betterment of
society as a whole. Greater emphasis is put on
environmental impacts, population growth, resource
shortages, and social services.
Relationship Marketing

Relationship Marketing is a strategy of Customer Relationship

Management (CRM) that emphasizes customer retention,
satisfaction, and lifetime customer value. Its purpose is to market to
current customers versus new customer acquisition through sales and
advertising.

Relationship Marketing is also defined as “the ongoing process

of engaging in cooperative and collaborative programmes with
immediate and end-user customers in order to create and
enhance mutual economic value at reduced cost.” RM is a
strategy designed to foster customer loyalty, interaction and
long term engagement. This customer relationship definition
emphasizes on CRM and customer retention than customer
acquisition. Relationships are the categorized as the most
valuable things.
A company maintains its relationships—with customers,
employees, suppliers, distributors, dealers, and retailers.
The company’s relationship capital is the sum of the
knowledge, experience, and trust a company has with its
customers, employees, suppliers, and distribution
partners. These relationships are often worth more than
the physical assets of a company. Relationships
determine the future value of the firm according to Kotler
(2009).

RM comprises of 4 types of R’s, i.e.

Reward: customer purchase and sharing of information;
Response: to generate high response and faith;
Respect: consumer privacy and respect; and
Relevant: Use of information for relevant communication
offers
Relationship marketing (RM) marks a significant paradigm shift
in marketing, a movement from thinking solely in terms of
competition and conflict toward thinking in terms of mutual
interdependence and cooperation.

It acknowledges the significance of various parties—suppliers,

employees, distributors, dealers, retailers—cooperating to
deliver the best value to the target customers. Here are the
main characteristics of relationship marketing:
 It focuses on partners and customers rather than on the
company’s products.
 It lays more significance on customer retention and growth
than on customer acquisition.
 It relies on cross-functional teams rather than on
departmental-level work.
 It relies more on listening and learning than on talking.
. Four P’s of Relationship Marketing

Product
Price
Distribution
Communication

Purpose of Strategic Marketing Planning

Strategy is the way in which an organisation achieves its goals

Principle focus Marketing Planning:

• Identification and creation of a competitive advantage
• Identify and capitalise on opportunities