MBA, Sem-2, Marketing Managment, Unit-1, Introduction to Marketing Management, 07.05.2021

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MBA 2 All right are reserved with CU-IDOL Marketing Management Marketing Management  Course Code: MBA 609  Semester: Second  e-Lesson: 1  SLM Unit: 1 www.cuidol.in Unit 1(MBA 609)

Marketing Management 33 OBJECTIVES INTRODUCTION  To make students aware of the basic concepts of  In this unit we are going to learn about the marketing. market and various concepts of marketing management.  To develop an understanding of market concepts  Under this you will learn and understand the and its relevance for Managers. nature and scope of marketing.  To make students understand the functions and  In this unit you will learn the implications of importance of marketing marketing in today’s scenario. www.cuidol.in Unit 1(MBAA660099)) INSTITUTE OF DAISllTArNigChEt AaNreDrOesNeLrIvNeEdLwEAitRhNCINUG-IDOL

TOPICS TO BE COVERED 4 > Market and Marketing Marketing Management > Core Concepts of Marketing > Importance of Marketing > Functions of Marketing www.cuidol.in Unit 1(MBA 609) All right are reserved with CU-IDOL

Market 5 • Market is a place where buyers and seller meet to buy or sell products , as In the case of a fish market, vegetable market or grain market. • Such buyers or customers share a particular need or want that can be satisfied through exchange relationship. • The size of the market will depend on the number of people who exhibit the need, have buying power, and are willing to exchange their resources for what want. • Definition: “It is a place or area of potential exchange” ---- Phillip Kotler https://in.images.search.yahoo.com/yhs/searc h;_ylt=AwrxhZUbPvpdFX0A7p4O9olQ;_ylu=X 3oDMTBsZ29xY3ZzBHNlYwNzZWFyY2gEc2x rA2J1dHRvbg- www.cuidol.in Unit 1(MBA 609) All right are reserved with CU-IDOL

Needs, Wants, and Demands 6 Needs: • The most basic concept underlying marketing is that of human needs. • Human needs are states of felt deprivation. • Human have many complex needs: • Physical needs for food, clothing, warmth, and safety • Social needs or belonging and affection • Individual needs for knowledge and self – expression Wants: • Desire for a specific product leading to satisfaction • People have almost unlimited wants but limited resources. • They want to choose products that provide the most value and satisfaction for their money. Demands: • When backed by buying power, wants become demands. • Consumers view products as bundles of benefits and choose products that give them the best bundle for their money. www.cuidol.in Unit 1(MBA 609) 6All right are reserved with CU-IDOL

Marketing and Customer 7 Value Value and Satisfaction  Value = Benefits/Costs  Benefits = Functional Benefits + Emotional benefits  Costs = Monetary costs + Time + Energy + Psychic costs Offer should contain value for the product. https://www.cleantelligent.com/blog/2019/03/12/value-customer-sa tisfaction / www.cuidol.in Unit 1(MBA 609) All right are reserved with CU-IDOL

What is Marketing 8  Marketing is an organizational function and set of processes for creating, communicating & delivering value to customers and for managing customer relationships in ways that benefit the organization & its stakeholders (American Marketing Association).  A social and managerial process whereby individuals and groups obtain what they need and want through creating and exchanging products and value with others (Philip Kotler). www.cuidol.in Unit 1(MBA 609) All right are reserved with CU-IDOL

Marketing 9  In other words, Marketing is managing profitable customer relationships  Attract new customers by providing them superior value and retain existing customers by delivering satisfaction.  A process by which individuals/groups satisfy their needs and want by creating offering and exchanging goods of value with others. Unit 1(MBA 609) https://in.images.search.yahoo.com/yhs/search;_ylt=Awr xhWhHPfpdgAYAHwTnHgx.;_ylu=X3oDMTB0N2poMXR www.cuidol.in wBGNvbG8Dc2czBHBvcwMxBHZ0aWQDBHNlYwNwaX Zz?p All right are reserved with CU-IDOL

Marketing Management 10  Marketing is defined as a social and managerial process by which Individuals and groups obtain what they need and want through creating and exchanging products and value with others.  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. www.cuidol.in Unit 1(MBA 609) https://www.indiamart.com/proddetail/marketing-mana gement- service-19878341388.html All right are reserved with CU-IDOL

CONCEPTS OF MARKETING 11 MANAGEMENT The marketing functions or activities are conducted by various companies based on six alternative concepts or orientations. They are:  Production concept  Product concept  Selling concept  Marketing concept  Societal marketing concepts https://in.images.search.yahoo.com/yhs/search;_ylt=AwrxhWhHPfpdgAYAHwTnHgx.;_ylu=X3o DMTB0N2poMXRwBGNvbG8Dc2czBHBvcwMxBHZ0aWQDBHNlYwNwaXZz?p www.cuidol.in Unit 1(MBA 609) All right are reserved with CU-IDOL

Marketing Management 12 Concepts Quality Create, deliver, and Innovation communicate value Production Product Selling Marketing Holistic Mass production Unsought goods Build Social and Ethical Mass distribution Overcapacity Considerations http://bankofinfo.com/wp-content/uploads/2014/04/conce pts_of_marketing_management.jpg www.cuidol.in Unit 1(MBA 609) All right are reserved with CU-IDOL

PRODUCTION CONCEPT 13 • It is the oldest concept of marketing that believes that consumers will favor products that are readily available at reasonable prices. • Improvement in production and distribution efficiency will be the focus for managements under this concept. • Henry Ford believed that if cost is reduced, more people would buy it. Ford did not have any concern about customers’ preferences and joked that the customer can have any color for the car, provided it was black. www.cuidol.in Unit 1(MBA 609) https://www.google.com/search?q=images+on+production+co ncept&source=lnms&tbm=isch&sa=X&ved=2ahUKEwjd4uT00 L7mAhWVT30KHbf2BmEQ_AUoAXoECAwQAw&biw=1366& bih=608#imgrc=A66HfUwHOQnw3M : 1A3ll right are reserved with CU-IDOL

THE PRODUCT CONCEPT 14 • Consumers will favor those products that offer the most quality, performance, innovative features. • Continuous improvements in product and quality are essential for companies that follow this concept. • Since the main focus of the marketers is the product quality, they often lose or fail to appeal to customers whose demands are driven by other factors like price, availability, usability, etc. www.cuidol.in Unit 1(MBA 609) https://www.feedough.com/marketing-management-philosophies- five-marketing-concepts-with-infographics/ 1A4ll right are reserved with CU-IDOL

SELLING CONCEPT 15 • The selling concept believes that consumers will not buy enough of the organization’s products. The organization must therefore, undertake pressure selling and promotion effort. • The concept is especially used for unsought goods which buyers normally don’t think of buying, life insurance, cemetery plots, etc. • When companies face excess production, they follow this concept to sell what they make, without caring for customer’s needs or satisfaction. www.cuidol.in Unit 1(MBA 609) https://www.feedough.com/marketing-management-philosophies- five-marketing-concepts-with-infographics/ 1A5ll right are reserved with CU-IDOL

THE MARKETING CONCEPT 16 • The marketing concept believes that achieving the company’s objectives depends on understanding the needs and wants of target markets and delivering the desired satisfaction in a better way than what the competitors are doing. • Focus on customer and value is considered the path to successful sales and company profits in this concept. • The customer is considered THE KING, and the company produces and https://www.feedough.com/marketing-manag markets what the customer wants. ement-philosophies-five-marketing-concepts-w ith-infographics/ www.cuidol.in Unit 1(MBA 609) 1A6ll right are reserved with CU-IDOL

SOCIETAL MARKETING 17 CONCEPT • The idea that the organization should determine the needs, wants, and interests of target markets and deliver the desired satisfactions more effectively and efficiently than competitors in a way that maintains or improves the consumer’s and society’s well – being. • It is a broadest marketing concept. It takes into consideration not only consumer satisfaction but also social welfare. • The societal marketing concept calls on marketers to balance three considerations in setting their marketing policies: company profits, consumer wants, and society’s interests or human welfare. https://www.feedough.com/marketing- management-philosophies-five-marketi ng-concepts-with-infographics/ www.cuidol.in Unit 1(MBA 609) 1A7ll right are reserved with CU-IDOL

Three Considerations 18 Underlying The Societal Marketing Society (Human welfare) Societal marketing concept Consumers Company (Want satisfaction) (Profits) https://www.123rf.com/photo_6593691_image-describing-societal-marketing-concept-in-business.html www.cuidol.in Unit 1(MBA 609) 1A8ll right are reserved with CU-IDOL

Importance of Marketing 19  Marketing helps in transfer, exchange and movement of goods.  Marketing is helpful in raising and maintaining the standard of living of the community.  Marketing creates employment.  Marketing as a source of income and revenue.  Marketing acts a basis for making decisions.  Marketing acts a source of new ideas.  Marketing is helpful in development of an economy. www.cuidol.in Unit 1(MBA 609) All right are reserved with CU-IDOL

Functions of Marketing 20 www.cuidol.in https://www.qsstudy.com/marketing/functions-modern-marketing All right are reserved with CU-IDOL Unit 1(MBA 609)

Summary 21 • Core Marketing concepts consist of needs, wants and demands. • Various approaches to marketing are Production, Product, Selling, Marketing and Societal marketing. • Marketing acts as a basis of decision making. • Marketing is helpful in the development of economy. • Marketing is a source of income and revenue. www.cuidol.in Unit 1(MBA 609) All right are reserved with CU-IDOL

REFERENCES 22 1. Kotler,P., Keller, K.L. Koshy, A. and Jha, M. (2009). Marketing Management: A South Asian Perspective. New Delhi: Pearson Education. 2. Etzel, M., Walker, B., Stanton, W. and Pandit, A.(2007). Marketing Management. New Delhi: Tata McGrawHill. 3. Ramaswamy, V.S., Namakumari, S. (2009). Marketing Management: Global Perspective Indian Context. New Delhi: Macmillan Publishers India Ltd. 4. Saxena, Rajan. (2010). Marketing Management. New Delhi: Tata McGraw Hill Education Pvt. Ltd. www.cuidol.in Unit 1(MBA 609) 2A2ll right are reserved with CU-IDOL

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