Amity School of Business: Marketing Management - I

Amity School of Business

Marketing Management - I
Module - I
Ms. Manita Matharu Arora
1
What is Marketing…??
 Advertising?
 Selling?
 Promotions?
 Making products available in stores?
 Maintaining inventories?
 It surely is all of the above, plus much more!
2
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
American Association of Marketing

3
Selling V/s Marketing
Factory Products Selling & Profits through

Promoting Sales Volume
Target Customer Integrated Profits through

Market needs Marketing Customer
satisfaction
4
Concepts of Marketing
• Need
State of felt deprivation including physical, social,
and individual needs.
– 5 types of needs
• Stated Needs
• Real Needs
• Unstated Needs
• Delight Needs
• Secret Needs
• Want
Form that a human need takes, as shaped by
culture and individual personality.
• Demand
Wants + Buying Power+ Willingness to buy =
Demand
Simple Model of Marketing Process
• Understand the market place and

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

create customer delight
Capture value
• Capture value from customers to from customers in
create profits and customer equity return 6
Drivers of Customer Satisfaction

Many aspects of the firm’s value proposition contribute to customer satisfaction:
 The core product or service offered
 Support services and systems
 The technical performance of the firm
 Interaction with the firm and it employees
 The emotional connection with customers
Ability to add value and to differentiate as a firm focuses more on the top levels
7
Marketing Mix
Mc Carthy classified marketing tools into four broad groups that he

called the four P’s of marketing.
Product
Price
Place
Promotion
8
Marketing Mix
Product Place
Variety Channels
Design Price Promotion Coverage
List Price Sales Promotion Assortments

Feature
Discounts Advertising Locations
Brand
Payment Period Sales Force Inventory
Name
Packaging Credit Terms Public Relation Transportation
Size Direct Marketing
Service
9
Marketing orientations
•Production Concept
•Product Concept
•Selling Concept
•Marketing Concept
•Holistic Marketing Concept
10
Holistic Marketing Concept

• It is based on the development, design and
implementation of marketing programs, processes
and activities that recognizes their breadth and
interdependencies.
• Holistic marketing recognizes that “Everything
Matters”
• Four components of holistic marketing are: -
relationship marketing, integrated marketing, internal
marketing and social marketing.
11
Relationship Marketing
• Relationship marketing is the process of creating, maintaining
and enhancing strong, value-laden relationships with
customers and other stakeholders.
• Aims at building mutually satisfying relation with key

constituents in order to earn and retain business. Builds a
network with its key stakeholders.
• It aims at building mutually satisfying long term relations with

key parties – customers, suppliers, distributors – in order to
earn and retain their business.
12
Marketing and Customer Value

• Marketing involves satisfying consumer’s needs and wants
And the Task of any business is to deliver customer value
at a profit.
• A company can create a wining situation by providing and
communicating superior value
Value Delivery Process Amity School of Business
Make the Product Sell the product
Design
Product Procure Make Price Sell Promote Distribute Service
Traditional Physical process
Choose the value Provide the value Communicate
Strategic marketing
Tactical marketing
Contemporary value creation & Delivery Process 14
Value Chain
• Michael Porter has proposed the value chain as a tool for identifying ways
to create more customer value.
• According to this model every organization is a synthesis of activities

performed to design, produce, market, deliver and support it’s product.
• The Value Chain, or value plate, does is breakdown the functions of a

company into its activities to provide a way to assess the internal
capacities of the business.
• The Value Chain identifies Nine strategically relevant activities (5

primary and 4 support) that create value and cost in a specific
business.
15
Value Chain Amity School of Business
Firm Infrastructure
Support Activities
HRM
Technology Development
Procurement
Inbound Mkting Service

Logistics Operations Outbound
Logistics &
Sales
Relationship with Suppliers Relationship with Buyers
Primary Activities
16
The Value Chain
The primary activities cover the sequence of:
1) bringing materials into the business (inbound
logistics),
2) converting them into final products (operations),
3) shipping out final products (outbound logistics),
4) marketing them (marketing and sales), and
5) servicing them (service).
1-17
The Value Chain
The support activities:
1) technology development,
2) human resource management,
3) firm infrastructure—are handled in certain
specialized departments, as well as elsewhere.
4) procurement and hiring
1-18

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Amity School of Business

Amity School of Business

 It surely is all of the above, plus much more!

Marketing is an organizational function and a

American Association of Marketing

Selling V/s Marketing

Factory Products Selling & Profits through

Target Customer Integrated Profits through

• Understand the market place and

• Build profitable relationships and

Drivers of Customer Satisfaction

 The core product or service offered

 Support services and systems

 The technical performance of the firm

 Interaction with the firm and it employees

 The emotional connection with customers

Mc Carthy classified marketing tools into four broad groups that he

Design Price Promotion Coverage

List Price Sales Promotion Assortments

Size Direct Marketing

•Holistic Marketing Concept

Holistic Marketing Concept

• Aims at building mutually satisfying relation with key

• It aims at building mutually satisfying long term relations with

Marketing and Customer Value

Make the Product Sell the product

Traditional Physical process

Choose the value Provide the value Communicate

• According to this model every organization is a synthesis of activities

• The Value Chain, or value plate, does is breakdown the functions of a

• The Value Chain identifies Nine strategically relevant activities (5

Inbound Mkting Service

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