MM Session1

PAN African e Network
Project
Diploma in Business Management
Marketing Management
Semester - I
Ashok Kaka
10 11 20101 1
Copyright Amity University

1
Section: Diploma in Business Management
Faculty: Ashok Kaka

Amity University
Ashok Kaka
B.S., B.Tech (Chem.Tech), M.S., MBA, DMM, PGDCA, Dip. German

Regional Marketing Director South Asia in German MNC
PROFILE:
Over 30 years of experience in Sales/Marketing/ Business

Management/Business Development in the Corporate sector in group
companies of BASF. Three years in BASF Aktiengesellschaft,
Ludwigshafen, Germany as Country Manager Taiwan, Thailand, India
and Nepal.
Visiting faculty at IIT Delhi and Member IRD Board of IIT Delhi. Visiting
faculty in Western International University Phoenix India campus, Amity
university, IIPM, Times Business School
Areas of expertise: Strategic Management, Business Management, Business
Development, Sales & Marketing Management, Key Account
Management, MIS
Held several positions right from Marketing Executive, Sales Manager,
Marketing Manager, General Manager Marketing, Vice President Sales &
Marketing and now Regional Marketing Director South Asia in German
MNC
Course Contents
Chapter 1
MARKETING IN A CHANGING
WORLD: SATISFYING
HUMAN NEEDS
The Concept, Nature Scope and importance
of Marketing, Marketing Management and its
evolution
4
Books
Refer Course Module
Marketing Management: Philip Kotler
Sales Management: Coundiff & Still
6
Chapter 1 Define
Marketing for the 21st
century
The importance
of Marketing
The scope of Marketing

Core Marketing Concepts
Company Orientation towards the
Market place
Breakthrough Marketing
Marketing management tasks
7
Marketing an Overview
(1)
Marketing is everywhere.
Formally or informally, people
and organizations engage in a
vast number of activities that
we could call marketing.
8
(2)
Good marketing has become
necessary vital ingredient for
business success. And
marketing profoundly affects
our day-to-date
9
(3)
It is embedded in everything
we do - from the clothes we
wear, to the websites we click
on, to the ads we see.
10
The importance of
Marketing (1)
Financial
success depends on
marketing ability. Finance,
operations, accounting, and other
business functions will not really
matter if there isnt sufficient
demand for products and services
so the company can make profit
11
The importance of
Marketing (2)
In
stating their business

priorities , CEOs acknowledge
importance of Marketing. Top
10 challenges acc to CEOs
survey revealed
12
The importance of
Marketing (3)
1. sustained and steady top line growth and
customer loyalty and/retention
2. CEOs also recognize the importance of
marketing to building brands, and loyal
customer base, intangible assets that make
up large percentage of the value of the firm.
13
The importance of
Marketing (4)
Contd..
Marketing is tricky, however, and it has been the

Achilles heel of many formerly prosperous
companies;
Sears, Levis, General Motors, Kodak, Sony, and
Xerox have all confirmed newly empowered
customers and new competitors and have to rethink
their business models.
Even market leaders such as Intel, Microsoft, and
Wal-Mart recognize that they cannot afford to relax as
their leadership is challenge.
14
The importance of
Marketing (5)
Contd...
Jack Welch of GE repeatedly warned his

company:' Change or die
XEROX: High end printing systems, Shift to
digital technology. World is no longer black
and whiteemergence of
canon..
Nirma Washing powder case: Value for
money concept vs. HUL
15
The scope of Marketing
You need to understand what marketing

is, how it works, what is marketed and
who does the marketing.
What is marketing?
Marketing is about identifying and meeting

human and social needmeeting needs
profitably
E-bay online auction
IKEA created knockdown furniture
16
What is Marketing??
Selling?
Advertising?
Promotions?
Making products available in stores?
Maintaining inventories?
All of the above, plus much more!
17
Marketing = ?
Marketing is the human activity directed at
satisfying needs and wants through an exchange
process Philip Kotler (1980)
His modified definition:
Marketing is a social and managerial process by

which individuals and groups obtain what they
need and want through creating and exchanging of
products and value with others
18
Marketing = ?
Marketing is the process of planning
and executing the conception, pricing,
promotion, and distribution of ideas,
goods, services to create exchanges
that satisfy individual and
organizational goals
American Marketing Association
19
Marketing = ?
Professor Glasser says:
Marketing in a free economy is the skill of selecting and fulfilling

consumer desires so as to maximize the profitability per unit of the
capital employed in the enterprise.
Professor Theodore Levitt says
Marketing is getting and keeping the customer

Professor Harry L. Hansen
Marketing is the process of discovering and translating consumer

needs and wants into product and service specifications, creating
demand for those products and services and then in turn,
expanding the demand
20
Marketing = ?
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.
21
Basic Characteristics of
marketing
It is operational: managers must think and act to

achieve results
It is customer oriented: focus on the needs of
customer
It is mutually beneficial: exchange in return for profits
It is value driven: values espoused communicated to
customers
It is proactive to the environment: external
environment
It covers both profit and non-profit making
organizations
22
Breakthrough marketing
Tata Ace creates new mini truck
segment (less than one ton load)
Sony.Play station 3 game system
Apple.iPod Nano digital music
player
Toyota. Pirius hybrid automobile
23
Scope What do we market or

What is Marketed?
Goods 10 types of entities:

Services
Events
Experiences
Personalities
Place
Organizations
Properties
Information
Ideas and concepts
25

What is Marketed?
10 types of entities:
Goods : Cars, TV, Machine tools, Industrial

chemicals
Services : airlines, hotels, car rental firms,
accountants
Events : Trade shows, IPL, Olympics, world cup.
Experiences : Water parks, amusement parks,
theme restaurant
Personalities : Celebrities, Sachin Tendulkar, David
Beckham
26

What is Marketed?
10 types of entities:
Place :Bangalore silicon valley, Kerala Gods

own country
Organizations : Philips Sense of simplicity
campaign
Properties : real estates
Information : Healthcare
Ideas and concepts : In the factory we make
cosmetics; in the store we sell hope.Charles
Ravson of Revlon
27
Simple Marketing System

Communication
Goods/services
Industry
Market
(a collection
of sellers)
(a collection
of Buyers)
Money
Information
28
Key Customer
Markets = ?
Consumer
Markets: soft drinks,

cosmetics, air travelbuilding brand
image
Business
Markets: often face welltrained and well-informed professional

buyers.generate profits
29
Key Customer
Markets = ?
Global
Markets: Global challenges
Non
profit and Governmental Markets:

Churches, universities, Charitable
organizations, government agencies.
Pricing should be carefully set.
30
Marketing = ?
Marketing is the sum of all activities that take you to a

sales outlet. After that sales takes over.
Marketing is all about creating a pull, sales is all about

push.
Marketing is all about managing the four Ps
product
price
place
promotion
31
The 4 Ps & 4Cs

Convenience
Marketing
Mix
Place
Product
Customer
Solution
32
Price
Promotion
Customer
Cost
Communication
Difference Between - Sales

& Marketing ?
Sales
trying to get the customer to want what the
company produces
Marketing
trying to get the company
produce what the customerants
33
Difference Between - Sales

& Marketing ?
Selling
Focuses on sellers needs, begins after production, comes to
end with sale, profits through sales volume, let the buyer be
aware, fragmented approach, Short-term perspective, product
first then customer
Marketing
Focuses on customer needs, begins before production,
continues after sales, profits through customer satisfaction, let
the seller be aware, integrated approach, long-term perspective,
customer first then product
34
Core Concepts of
Marketing
Based on :
Needs, Wants, Desires / demand
Products, Utility, Value & Satisfaction
Exchange, Transactions & Relationships
Markets, Marketing & Marketers.
35
Core Concepts of
Marketing
Needs: Basic human requirements. Air, food,

shelter to survive. Needs become wants when
they are directed to specific object that might
satisfy the need.
Wants: French fries, pizza, higher car model.
Desires / demand: are wants for specific
products backed by ability to pay.
36
Needs, Wants& Demand
Core Concepts of
Marketing
Needs, wants
demands
Markets
Products
Marketing &
Marketers
Utility, Value &

Satisfaction
Xchange, Transaction
Relationships
39
Pillars of sustainable growth

Domestic consumption
Key drivers for domestic consumption
Emergence of the Indian middle class
Urbanization
Favorable demographics
Rise in income levels
Growth of young population
Availability of credit
Source : McKinsey Global Institute, Reserve Bank of India, Cris Infac, Venture Infotek Research, India Brand Equity Foundation (IBEF), Economist Intelligence Unit, Accenture analysis
Core Concepts of
Marketing
Need food ( is a must )
Want Pizza, Burger, French fry's ( translation of

a need as per our experience )
Demand Burger ( translation of a want as per

our willingness and ability to buy )
Desire Have a Burger in a five star hotel
41
Types of Needs: 5 Types
1. Stated needs (The customer needs

inexpensive car)
2. Real needs (The customer wants a car

whose operating cost, and not its initial price, is
low)
3. Unstated needs (The customer expects good

service from the dealer)
42
Types of Needs: 5 Types
4. Delight needs (The customer would like the

dealer to include an onboard navigation system)
5. Secret needs (The customer wants friends

to see him as a savvy consumer)
43
Benefits of Marketing
A. Benefits to the society as a whole:
1.It is an Instrument to uplift the living standards of

teeming millions
2.It provides gainful employment opportunities
3. It stabilizes the economic conditions
44
Evolution of Marketing
concept:
Each philosophy and corresponding period.
1. Production oriented philosophy : Good

productgood sales. Under this concept,
production is the starting point.
2. Sales oriented philosophy : Goods are not bought

but sold
45
Evolution of Marketing concept:
3. Customer oriented philosophy : Starting point is

customer rather than the product. Focuses on the role of
market research
4. Social oriented philosophy : Under this concept,

focus goes beyond customer satisfaction and focuses on
consumer welfare or social welfare. Social welfare
becomes added dimension.
46
Each philosophy and corresponding period.
1. Production oriented philosophy : The oldest

concept in marketing. Under this concept, production is
the starting point. Managers focus on achieving high
production efficiency, low cost, and mass distribution.
47
Production This orientation makes sense in developing

countries such as China, where the largest PC
manufacturer, LENOVO, and domestic appliance joint
Haier take advantage of the countrys huge and
inexpensive labor pool to dominate the market. Marketers
also use the production concept when a co. wants to
expand the market
48

2.
The Product Concept :
The
product concept proposes that the

consumers will prefer products that offer
the most quality, performance or,
innovative features.
49

2.
The Product Concept :
Managers
in these organizations focus on

making superior products and improving them
over a time.
However,
these managers are sometimes

caught up in love affair with their products.
They might get caught up in better mousetrap
fallacy.?????
50
3. The
Selling Concept: Under this
concept, if consumers and businesses , if left

alone, wont buy enough of the organizations
products.
The organizations must therefore, undertake an

aggressive selling and promotion effort.
51
3. The
Selling Concept:.
The selling concept is expressed in the thinking

of Sergio Zymann Coca-Colas former VP
Marketing, who said: The purpose of marketing
is to sell more stuff to more people more often for
more money in order to make more profits. EX:
Encyclopedias, insurance. Coax hard selling
52
4.
The Marketing Concept: Emerged in
the mid 50s. instead of a product-centered ,

make -and sell philosophy, business shifted to
a customer-centered, sense-and-respond
philosophy.
The job is not to find the right customers for your

products, but to find the right products for your
customers.
53

The Marketing Concept:
4.
Dell Computers doesnt prepare a perfect computer for its

target market. Rather, it provides platforms on which each
person customizes the features he desires in the
computer.
The marketing concept holds that key to achieving

organizational goals is being more effective than
competitors in creating, delivering and communicating
superior value to your chosen target markets.
54
Functions of Marketing
Management
1.
Analysis of Market Study of

the market through Market
research. The MIS evolves in an
organization giving advantage of
effective planning , decision
making, planning and control
55
Management
2. Formulating Marketing Goals & Objectives

Long-term goals to earn suitable return on
resources employed in the business.
The short-term goal may be fixed in terms of

sales volume to be achieved in different market
segments or market share of the company in the
total industry sales
56
Management
3. Organizing the Marketing activities Organizing

functions include the following:
Determining the total marketing activities to be performed

in the light of the analysis of market conditions
Grouping of these activities
Assigning the grouped activities to individuals and

departments
Delegating the authority
Assigning responsibility for them

57
Management
4. Product management functions include the following:
Pricing
Packaging
Standardizing
Branding
Advertising media
Distribution channels
Inventory Control
58
Management
5. Controlling Marketing activities Control the various

activities of marketing department:
Determination of standards of performance
Measurement of actual performance
Comparison of actual performance with standards
Correcting deviations
59
Objectives of Marketing
Management
According to Cundiff & Still there are three main objectives of
marketing:
1.
Increase in sales Volume
2.
Increase in Net Profit
Growth
in Enterprise
60
Questions
1. What is marketing? How it is different from selling?
62
Questions
2. What are the various functions of marketing?
63
Questions
3. What are various concepts of marketing? Explain

how the modern concept of marketing has evolved
over time?
64
Multiple Choice
Questions
4. Charles Revson of Revlon observed: In the

factory, we make cosmetics; in the store, ________.
a. we make profits
b. we challenge competitors
c. we implement ads
d. we sell hope
e. we sell quality
65
Multiple Choice
Questions
5. According to Cundiff & Still there are three main
objectives of marketing:
a. Increase in sales Volume
b. Increase in Net Profit
c. Growth in Enterprise
d. Providing short term credit
Tick
off the wrong one a , b , c, d

66
Multiple Choice
Questions
6. Types of Needs: 5 Types
a. Stated needs
b. R needs
c. U.. needs
d. Delight needs
e. S.. needs
Fill
in the blanks
67
7.
Multiple Choice
Marketing management
is ________.
Questions
a. managing the marketing process
b. monitoring the profitability of the companies products and services

c. selecting target markets
d. developing marketing strategies to move the company forward
e. the art and science of choosing target markets and getting, keeping, and
growing customers through creating, delivering, and communicating superior
customer value
68
Multiple Choice
Questions
8. 4 P of marketing
are
a. ......................
b. ......................
c. ......................
d. ......................
Fill in the blanks
69
Multiple Choice
10. What is marketed?
(Ten entities)
Questions
Goods
S..
Events
E
Personalities
Place
O..
Properties
Information
I
70
Multiple Choice
Questions
10. Maslows hierarchy
of a needs are
a. ......................
b. ......................
c. .....................
d. ......................
e. ......................
Fill in the blanks
71
Answers
4. d
5. d
6. b..................
6. c....................
6. e....................
7. e
8. a Product
8. b Price
8. c Place
72
Answers
8. Promotion
9. Services
Experiences
Organizations
Ideas and concepts
10.
Self actualization needs
Esteem needs
Social needs
Safety needs
Physiological needs
73
Thank You
Please forward your query
To: kaka.ashokk@gmail.com
CC:
manoj.amity@panafnet.com
74

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PAN African e Network

Copyright Amity University

Faculty: Ashok Kaka

B.S., B.Tech (Chem.Tech), M.S., MBA, DMM, PGDCA, Dip. German

Over 30 years of experience in Sales/Marketing/ Business

Copyright Amity University

Copyright Amity University

The scope of Marketing

Copyright Amity University

Copyright Amity University

stating their business

Marketing is tricky, however, and it has been the

Jack Welch of GE repeatedly warned his

The scope of Marketing

You need to understand what marketing

Marketing is about identifying and meeting

Marketing is a social and managerial process by

Marketing in a free economy is the skill of selecting and fulfilling

Marketing is getting and keeping the customer

Marketing is the process of discovering and translating consumer

It is operational: managers must think and act to

Copyright Amity University

Copyright Amity University

Scope What do we market or

Goods 10 types of entities:

Scope What do we market or

Goods : Cars, TV, Machine tools, Industrial

Copyright Amity University

Scope What do we market or

Place :Bangalore silicon valley, Kerala Gods

Copyright Amity University

Simple Marketing System

Markets: soft drinks,

Markets: often face welltrained and well-informed professional

Copyright Amity University

Markets: Global challenges

profit and Governmental Markets:

Marketing is the sum of all activities that take you to a

Marketing is all about creating a pull, sales is all about

Marketing is all about managing the four Ps

The 4 Ps & 4Cs

Difference Between - Sales

Difference Between - Sales

Products, Utility, Value & Satisfaction

Exchange, Transactions & Relationships

Markets, Marketing & Marketers.

Needs: Basic human requirements. Air, food,

Copyright Amity University

Needs, Wants& Demand

Copyright Amity University

Copyright Amity University

Utility, Value &

Pillars of sustainable growth

Emergence of the Indian middle class

Rise in income levels

Growth of young population

Copyright Amity University

Need food ( is a must )

Want Pizza, Burger, French fry's ( translation of

Demand Burger ( translation of a want as per

Desire Have a Burger in a five star hotel

Types of Needs: 5 Types

1. Stated needs (The customer needs

2. Real needs (The customer wants a car