mm-session 1 -mktg concept

8/12/2019 MM-Session 1 -Mktg Concept

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MARKETING MANAGEMENT

Dr. Prafulla Agnihotri,

Professor, Marketing Group,

IIM Calcutta

Office: NTB E 107; Ext. 529

[email protected]


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Session 1

Evolution of Marketing Concept


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MK 101- Session 1 3

MAIN POINTS

1. Stages in evolution of marketing concept.

2. Difference between selling and marketingconcept.

3. Marketing management - definition


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MK 101- Session 1 4

Three Stages of Marketing Evolution

Production

orientation

Product

orientation

Some industries and organizations remain at the product-orientation stage.

Sales

orientation

Other industries and organizations have progressed only to the sales-orientation

stage.

Production

orientation

Productionorientation

Salesorientation

Marketingorientation

Many industries and organizations have progressed to the marketing-orientation

stage.

?


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MK 101- Session 1 5

Production Orientation Focus:Sell what its easyto produce

Marketing Perspectives


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MK 101- Session 1 6

Sales OrientationFocus: Push products to

beat competition

Production OrientationFocus: Sell what its easy

to produce



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MK 101- Session 1 7

Marketing Department

Orientation

Focus:

Sales OrientationFocus: Push products to

beat competition

Production Orientation Focus: Sell what its easy

to produce

Coordinate all

customer contacts



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MK 101- Session 1 8

Marketing Company

Orientation

Focus :

Marketing Department

Orientation

Focus:

Sales-orientationFocus: Push products to

beat competition

Production-orientationFocus: Sell what its easy

to produce

Coordinate all

customer contacts

Long-run customer

satisfaction



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MK 101- Session 1 9

Profit

CustomerSatisfaction

Total CompanyEffort

TheMarketingConcept

The Marketing Concept


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The Societal Marketing Concept

MK 101- Session 1 10

Consumers

(Want satisfaction)

Company

(Profits)

Society(Human Welfare)

Societal

Marketing

Concept


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What is Marketing?

Marketing begins with potential customer needs

It is more thanjust persuading customers

It focuses onfacilitating exchangesby offering abenefit(s)to customers need(s)

It aims at managingprofitable customerrelationships.



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In short,

Marketing is so basic that it cannot be considered a

separate function. It is the whole business seen from thepoint of view of its final results, that is, from the

CUSTOMERSpoint of view- Peter Drucker


MARKETING CONCEPT

CustomerOrientation

Organisations

Performance objectives

Coordinated

marketing

activities

+

+

+

Customer

satisfaction

Organisational

success


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Difference Between Marketing andSelling Concepts

Selling

Emphasis is on the product

Company first makes the productand then figures out how to sell it.

Management is sales-volume-oriented.

Planning is short-run-oriented, interms of todays products and

markets. Stresses needs of seller.

Aims at selling more volumes.

Marketing

Emphasis is oncustomers wants.

Companyfirst determines customerswants and then figures out how to make

and deliver a product to satisfy thosewants.

Management isprofit-oriented.

Planning islong-run-oriented, in terms

of new products, tomorrows markets,and future growth.

Stresseswants of buyers.

Buildsprofitable relationships.



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How Should a Business be Defined?

Company Product-OrientedAnswer

Market-OrientedAnswer

Kodak We make cameras

and films

We help preserve

beautiful memories

Revelon We make cosmetics ?

Voltas AC We make ACs ?

Xerox We makephotocopying machines

?



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A Need and a Benefit



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Marketing Defined

Marketing is the process by which companies createvaluefor customers and build strong (and profitable)customer relationshipsin order to capture value fromcustomers in return.


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The Goal :Satisfaction ?no no

Customer DELIGHT !


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How does it happen?

Customer

Acquisition

Total Company

Effort to

Satisfy Customers


Superior

Customer Value

Profitable

Relationship

With Customer

Customer

Satisfaction

Delight

Customer

Retention


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The Customer Satisfaction / Loyalty

Relationship

Zone of Defection

Zone of Indifference

Zone of Affection

Loyalty100

051 2 3 4

20

40

60

80

SatisfactionTerrorist

Apostle

Near Apostle

V.D.S D.S --------- S V.S


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The Marketing ManagementProcess


Analyzing

marketing

opportunities

Researching and

selecting target

markets

Designing

marketing

strategies

Planning marketing

programs

Organizing,

implementing, and

controlling

marketing effort


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Marketing Offers-Products, Services and Experiences



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Marketing Offers - Products



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Marketing Offers - Services



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Marketing Offers - Experiences



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Marketing in Non-ProfitOrganisations



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Thank You

mm-session 1 -mktg concept

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