Marketing (Module 1)

• Marketing Management is essential for meeting the increased competition of the modern economy and helps in improving the methods of distribution, so as to decrease costs and increase profits.
• "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 Marketing Association)
• “Marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others”. (Philip Kotler)
• “Marketing is a total system of business activities designed to plan, price, promote, and distribute want-satisfying products to target markets to achieve organizational objectives”. (William J. Stanton, Michael J. Etzel, and Bruce J. Walker, Fundamentals of Marketing, McGraw-Hill, 1994.)
• “ Marketing is the whole business seen from the point of view of its final result, that is, from the customer's point of view”. (Peter F. Drucker, Practice of Management (1954).
• Bagozzi (1974) pioneered an approach to understanding marketing as an exchange process, where a customer exchanges something of value, for example, money, with a supplier who is able to meet that customer’s needs, for example, with goods or services that solve a problem.
• For an exchange to take place certain conditions must be met: ● There must be at least two parties.

  ● Each must have something that might be of value to the other.

  ● Each can communicate and deliver what they are offering.

  ● Each is free to accept or reject what is on offer.

  ● Each party trusts/respects the other sufficiently to take the exchange seriously.
• Need is a state of felt deprivation of some basic satisfaction.
• Wants are desires for specific satisfiers of these deeper needs.
• Demand is want for a specific product that are supported by the ability and willingness to buy them.
• Demand should have three conditions:

  1. The desire of getting the product or service; Ability to pay for the product or service; and
  2. The desire of getting the product or service; 2. Ability to pay for the product or service; and3. Intention to pay for the product or service.
• Philip Kotler and Sidney J. Levy identified eight major demand states
• Philip Kotler is the father of Marketing.
• 1. Negative Demand: This situation is faced when a major part of the target market dislikes the product and may even pay a price to avoid it.
• 2. No Demand: The customers may be unaware or indifferent towards the product.
• 3. Dormant Demand: This may occur when the currently available products fail to satisfy the strong needs that customers feel.
• 4. Falling Demand: Sooner or later, companies face this situation with respect to their products or services.
• 5. Fluctuating Demand: Many companies experience this pattern, the demand varying according to the season, or festivals, etc.
• 6. Full Demand: This is a situation all companies aspire and work for.
• 7. Excess Demand: At this demand level, the company is unable to meet the demand level.
• 8. Unwholesome Demand: This concerns managing demand for harmful products.
• Value is the consumer’s estimate of the product’s overall capacity to satisfy his or her needs.
• Value, a central marketing concept, is primarily a combination of quality, service, and price (qsp), called the customer value triad.
• Value perceptions increase with quality and service but decrease with price.
• Cost - an expenditure required to produce or sell a product or get an asset ready for normal use.
• Satisfaction - reflects a person’s judgment of a product’s perceived performance in relationship to expectations.
• Customer delight - it exceeded the customers expectations of the product or service.
• Market the place where buyers and sellers meet to exchange their goods, services and other relevant information. The market may be a physical or virtual.
• Physical Markets - Any physical market is a place where buyers and sellers physically meet that involve both parties in a transaction in exchange for money.
• Virtual Markets / Internet Markets - It is a place where the seller offers goods and services via online platform i.e. internet.
• Auction Market - is a place where sellers and buyers indicate the lowest and highest prices they are willing to exchange. This exchange takes place when both the sellers and buyers agree on a price.
• Consumer Markets - This market type means the marketing of consumer goods and services for personal and family consumption.
• Industrial Markets - involves business to business sales of goods and services.
• Black Market - Just like black money, it deals in illegal drugs and weapons.
• Market for Intermediate Goods -These markets deal in selling raw materials that need further processing to produce finished goods.
• Financial Market - This is a place for dealing with liquid assets for example shares, bonds etc.
• 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.
• According to Philip Kotler - Marketing Management is the analysis, planning, implementation and control of programs designed to bring about desired exchanges with target markets for the purpose of achieving organizational objectives.
• Marketing Management is the management of the marketing function.
• In other words, marketing management refers to planning, organizing, directing and control of the activities which facilitate exchange of goods and services between producers and consumers or users of products and services. Thus the focus of marketing management is on achieving desired exchange outcomes with the target markets.