Introduction to
Marketing
Management
What is Marketing?
It is a process of exchange that
is designed to deliver customer
satisfaction in the long run by
fulfilling needs and wants of
individuals and groups.
Marketing is a continuous, sequential process
through which management plans,
researches, implements, controls, and
evaluates activities designed to satisfy both
customers’ needs and wants and their own
organization’s objectives.
• Marketing is the total system of
business activities designed to plan,
price, promote, and distribute wantsatisfying products, services, and
ideas to target markets in order to
achieve organizational objectives
• Marketing means adopting a
customer focus for the organization;
keeping the customer’s needs in mind
all the time. It may not always mean
making an immediate sale.
The Marketing Concept
• objective is to produce long-term
customer satisfaction and
organizational success
• all of the organization’s planning
and operations are customeroriented
• all of the marketing activities of the
organization should be consistently
designed and delivered
• all activities are intended to achieve
the firm’s organizational objectives
In the Socioeconomic
System:
•Marketing creates
utilities:
Image utility is the
emotional or
– Place utility makes a
psychological
product accessible to
value that the
potential customers
customer attaches
where they want it.
to a product or
brand.
– Time utility makes a
product available when• Possession utility
is created when
they want it.
ownership is
– Information utility is
transferred to the
created by informing
buyer.
prospective buyers that
a product exists.
•
What is Exchange?
At the heart of marketing is the concept of
exchange which exists when the following
criteria are met:
Minimum of two parties;
Each has something of value to the other;
There is communication between each other;
The two can act voluntarily.
A market is where the exchanges between the parties
take place i.e., where sellers sell and buyers buy!
Marketing revolves around the
following fundamental
concepts:
• Exchange
• Needs, Wants, and value
• Quality Products, Services,
• Markets and Demand
• Transactions
• Satisfaction, Loyalty, and
Relationships
Debatable Issue: Need Vs. Want
• Are they the same?
• If not, what is the difference
between the two concepts?
• Are marketers creating either one
or both?
• Are there ethical issues in
targeting the two?
Needs/Wants/Desires + Money = Demand
What can you market?
• Products
• Services
• Ideas, causes, and concepts
• People and their positions
• Places
• Profit and non-profit
organizations
The Marketing Management
Exchange Equation
$
≤
-Product
-Place
-Promotion
The Marketing Concept
• Customers are the Lifeblood of the
Organization
• “Customer is King”
Evolving Views of
Marketing’s Role
Production
Marketing
Customer
The customer as the controlling
function and marketing as the
integrative function
Traditional Organization
Chart
Top
Management
Middle Management
Front-line people
Customers
Customer-Oriented
Organization Chart
Customers
Front-line people
Middle management
Top
management
Customer Development
Suspects
First-time
Repeat
Prospects customers customers
Disqualified
prospects
Clients Advocates Partners
Inactive or
ex-customers
The Profit Triangle
Profit
Competitive advantage
Quality
•
#1
Quality is the
totality of features
and characteristics
of a product or
service that bear
on its ability to
satisfy stated or
implied needs.
Marketing Management
and the Economy
Structure of Flows
Resources
Money
Resources
Resource
markets
Services,
money
Services,
money
Manufacturer
markets
Goods, services
Taxes,
goods
Taxes
Government
markets
Taxes,
goods
Services,
money
Money
Money
Consumer
markets
Services
Taxes,
goods
Money
Intermediary
markets
Goods, services
Core Concepts of Marketing
Target Markets & Segmentation
Needs, Wants, and Demands
Product or Offering
Value and Satisfaction
Exchange and Transactions
Relationships and Networks
Marketing Channels
Supply Chain
Competition
Marketing Environment