Amity School of Business: Marketing Management - I

Amity School of Business

Marketing Management - I
Module – I
Ruchi Khandelwal
1
What is Marketing?
• Marketing means “Meeting needs profitably”
• The process by which companies create

value for customers and build strong
customer relationships in order to capture
value from customers in return.
2
Simple Model of Marketing Process

• Understand the market place and
customer needs & wants
Create value for
• Design a customer-driven customers and build
marketing strategy customer
relationships
• Construct an integrated marketing
program that delivers superior value
• Build profitable relationships and

create customer delight
Capture value from
• Capture value from customers to customers in return
create profits and customer equity
3
Defining 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.
4
5
Understanding the Marketplace

and Customer Needs
• Customer Needs, Wants and Demand
– Needs are states of felt deprivation
– Wants are the form human needs take as shaped by
culture and individual personality
– Demands are human wants that are backed by
purchasing power
– Stated needs, real needs, unstated needs, delight
needs, secret needs
– Negative demand, non-existent demand, latent
demand, declining demand, irregular demand, full
demand, overfull demand, unwholesome demand
6
Class Activity
• Think of any three “needs”.

• List the product choices consumers have
to satisfy them. List the attributes and the
corresponding benefits of these products.
• Now, think of two innovative ways of
fulfilling those needs.
7

and Customer Needs
• Key customer markets- consumer markets,
business markets, global markets, nonprofit and
government markets
• Market places, market spaces and metamarkets
• Market Offerings-
– Some combination of products, services, information,
or experiences offered to a market to satisfy a need
or a want
– Goods, services, events, experiences, persons,
places, properties, organizations, information, ideas
8

and Customer Needs
• Customer Value & Satisfaction
– The difference between the values the customer
gains from owning and using a product and the costs
of obtaining the product.
– “QSP”, the Customer-value triad.
– Customer satisfaction depends on a product’s
perceived performance in delivering value relative to a
buyer’s expectations.
• Exchange, Transactions and Relationships
– Relationship marketing is the process of creating,
maintaining and enhancing strong, value-laden
relationships with customers and other stakeholders.
9
Designing a Customer-Driven
Marketing Strategy
• Selecting Customers to Serve
– Market Segmentation and Target Marketing
• Choosing a value proposition
– Define how a company chooses to
differentiate and position itself in the market
• Marketing Management Orientations
– Define how much weight company gives to
interests of the organization, the customers
and the society
10
Marketing Management
Orientations
• The “Production concept” holds that
consumers will favor products that are
widely available and highly affordable
– DD>SS
– Product’s cost is too high
• The “Product concept” holds that
consumers will favor products that offer
the most in quality, performance, and
innovative features.
– The concept of Marketing Myopia
11
Marketing Management
Orientations
• The “selling concept” holds that consumers, if
left alone, will ordinarily not buy enough of the
organization's products unless it undertakes an
aggressive selling and promotion effort.
• The “marketing concept” holds that the key to
achieving organizational goals consists of the
company being more effective than competitors
in creating, delivering and communicating
superior customer value to its chosen target
market.
– Reactive market orientation
– Proactive market orientation
12
Self- Learning Exercise
• Draw a contrast between

“marketing concept” and “selling
concept” .
13
Marketing Management Orientations

Senior Mgmt Products & Channels
Marketing Communication
Other Depts. services
Dept.
INTERNAL INTEGRATED
MARKETING MARKETING
HOLISTIC
MARKETIN
G
SOCIALLY
RESPONSIBLE RELATIONSHIP
MARKETING MARKETING
Ethics Environment Legal Community Customers Channel Partners

14
Holistic Marketing
• Internal Marketing is the task of hiring, training and
motivating able employees who want to serve customers
well.
• Relationship Marketing is to develop deep, enduring
relationships with all people or organizations that could
directly or indirectly affect the process of the firm’s
marketing activities.
• Integrated Marketing is to devise marketing activities
and assemble fully integrated marketing programs to
create, communicate, and deliver value for consumers.
• Socially Responsible Marketing is a philosophy that
holds that a company should make good marketing
decisions by considering consumer wants, the company’s
requirements, consumers’ long-run interests, and
society’s long-run interests.
15
Shifts in Marketing
Management
• From ‘Marketing does the marketing’ to
‘everyone does the marketing’
• From organizing by ‘product units’ to
organizing by ‘customer segments’
• From ‘Making everything’ to ‘outsourcing’
• From ‘emphasizing tangible assets’ to
‘emphasizing intangible assets’
• From focusing on ‘profitable transactions’
to focusing on ‘customer lifetime value’
16
Shifts in Marketing
Management
• From focusing on ‘gaining market share’ to
focusing on ‘building customer share’
• From focusing on just the ‘financial
scorecard’ to focusing also on the
‘marketing scorecard’
• From focusing on ‘shareholders’ to focusing
on ‘stakeholders’
• From building brands through ‘advertising’
to building brands through ‘performance’
• From focusing on ‘customer acquisition’ to
focusing on ‘customer retention’
17
Shifts in Marketing
Management
• From ‘no’ customer satisfaction
measurement to ‘in-depth’ customer
satisfaction measurement
• From ‘over-promise, under-deliver’ to
‘under-promise, over-deliver’
• From focusing on ‘brick-and-mortar’ stores
to focusing on the ‘brick-and-click’ and even
‘pure click’ stores.
• From ‘being local’ to ‘being glocal- both
global and local’
18

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Amity School of Business

Amity School of Business

• Marketing means “Meeting needs profitably”

• The process by which companies create

Simple Model of Marketing Process

• Build profitable relationships and

Defining Marketing Management

Marketing Management is the art and

Understanding the Marketplace

• Think of any three “needs”.

Understanding the Marketplace

Understanding the Marketplace

Self- Learning Exercise

• Draw a contrast between

Marketing Management Orientations

Ethics Environment Legal Community Customers Channel Partners

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