Introduction to Marketing Management Unit-I (MBA, BBA, BBS, BIM Course) TU,PU, RJU - Marketing Management and its Natures, Role of Marketing Manager in the current scenario, Evolution of Marketing Philosophies, 9Ps of Marketing Mix

Marketing Management and Its Nature

1. What is a Market?

A market is a place or concept where buyers and sellers interact to exchange goods, services, or information, usually for money.

Example: The automobile market includes manufacturers like Toyota, Ford, and Hyundai (sellers) and customers seeking cars (buyers). This market can exist physically (car dealerships) or digitally (online platforms).

2. What is Marketing Management?

Marketing management is the process of planning, organizing, directing, and controlling marketing resources and activities to achieve organizational goals by satisfying customer needs effectively and efficiently.

Example: Apple’s marketing management involves identifying customer needs (e.g., desire for sleek, powerful phones), developing products (like the iPhone), pricing them competitively, promoting them globally, and distributing them through physical and digital stores.

3. Nature/Features of Marketing Management

1.      Customer-Centric:
Focuses on identifying and fulfilling customer needs.
Example: Amazon uses customer data to suggest personalized product recommendations.

2.      Goal-Oriented:
Aims to achieve business objectives like market share, sales growth, and profitability.
Example: Coca-Cola constantly innovates flavors to boost sales and retain customers.

3.      Continuous Process:
Marketing is an ongoing activity adapting to market trends and customer behavior.
Example: Netflix frequently updates its content based on viewer preferences.

4.      Integrated Function:
Involves coordination with other departments like R&D, production, and finance.
Example: A new Samsung phone requires coordination between engineering, design, and marketing teams.

5.      Dynamic in Nature:
Changes with technology, competition, and consumer trends.
Example: Social media marketing strategies have replaced traditional ads for many brands.

6.      Analytical Approach:
Uses data and market research to guide decisions.
Example: Spotify uses data analytics to curate playlists and target ads.

7.      Value Creation:
Adds value to the product or service to attract customers.
Example: Starbucks offers not just coffee but a premium “café experience.”

8.      Universal Application:
Applies to all types of organizations—profit, non-profit, and government.
Example: NGOs use marketing to promote campaigns and attract donations.

v  Role of a Marketing Manager in the Current Scenario

1.      Market Research & Analysis:
Understand customer needs, market trends, and competitor strategies.
Example: Nike conducts youth trend analysis to design trendy sportswear.

2.      Digital Marketing Strategy:
Utilizes digital platforms to reach and engage customers.
Example: McDonald’s uses mobile apps for promotions and loyalty programs.

3.      Brand Building:
Develops brand identity and positioning.
Example: Dove’s campaigns focus on “real beauty” to resonate with its audience.

4.      Product Innovation Support:
Guides product development based on market feedback.
Example: Tesla incorporates user feedback to update car features.

5.      Pricing Strategy:
Determines pricing to match perceived value and market demand.
Example: Netflix uses tiered pricing for different customer segments.

6.      Sales & Promotion Planning:
Designs campaigns to boost awareness and drive sales.
Example: Pepsi launches celebrity-backed ad campaigns during sports events.

7.      Customer Relationship Management (CRM):
Enhances customer satisfaction and loyalty.
Example: Zappos offers 24/7 customer service to ensure loyalty.

8.      Sustainability and Ethics:
Incorporates sustainable and socially responsible practices.
Example: Patagonia markets eco-friendly clothing and donates a portion of profits.

v  Evolution of Marketing Philosophies

A. Production Concept

The Production Concept is one of the oldest marketing philosophies. Focuses on high production efficiency, low cost, and mass distribution.  It assumes that customers prefer products that are affordable and easily available, so businesses should focus on mass production and wide distribution.

When Was It Popular?

Late 19th century to early 20th century

·         Especially popular during the Industrial Revolution and into the 1920s–1930s, when demand exceeded supply.

·         Still relevant in some developing markets where affordability and availability are major concerns.

Features:

Characteristic   1. Mass Production Emphasis on producing goods in large volumes to reduce per-unit cost.   2. Standardized Products Products are uniform with little or no variation to simplify manufacturing and reduce costs.   3. Low Production Costs Businesses aim to minimize production expenses to offer products at lower prices.   4. Wide Distribution Goods are made easily available to as many customers as possible through broad distribution networks.   5. Minimal Customization Limited or no tailoring to individual customer needs; one-size-fits-all approach.   6. High Operational Efficiency Streamlined operations using machines, automation, and process optimization.   7. Limited Concern for Customer Feedback Focus is more on production output than consumer desires or satisfaction.

 

Other Features

1.      Assumes customers prefer widely available and affordable products.

2.      Emphasis on economies of scale.

3.      Suitable when demand > supply.

4.      Internal efficiency focus.

5.      Product standardization.

6.      Minimal customer focus.

7.      Works in developing markets.

 

Theme of the Production Concept

Starting	Originated during the Industrial Revolution, when factories began producing goods on a large scale.
Focus	Focuses on production efficiency, mass manufacturing, and cost reduction.
Means	Uses economies of scale, assembly lines, and standardization to produce large quantities at low cost. (Low Price, Mass Distribution, No competition)
Ends	The end goal is high product availability and affordability, assuming that customers will choose low-cost, easily available products. (Focus on profit maximization)

 

Finding: The Production Concept works best when:

·         Demand exceeds supply

·         Customers prioritize price and availability over features

·         Markets are still developing or infrastructure is limited

Example:
BG Noodles adopts a Production Concept by focusing on mass-producing a standardized, low-cost noodle product and ensuring widespread availability, especially in price-sensitive markets where customers prioritize affordability over variety.

B. Product Concept

Definition:
The Product Concept is a marketing philosophy that assumes customers will prefer products that offer the best quality, performance, or innovative features. Product concept assumes customers prefer products with the best quality, performance, and features.

Therefore, businesses focus on making superior products and continuously improving them.

When Was It Popular?

·         Gained popularity during the mid-20th century, especially in technology-driven and competitive consumer goods markets.

·         Still relevant today in innovation-focused industries like smartphones, electronics, and food products with added health/nutritional value.

Feature / Characteristic Description BG Noodles Example 1. Product Quality Focus Emphasis on best ingredients or processes. BG Noodles may promote high-quality wheat or premium seasoning. 2. Continuous Improvement Regularly improving product taste, packaging, or nutrition. Launching an improved version with added vitamins or flavors. 3. Innovation Oriented Focus on new features or health benefits. BG introduces a “healthy oats variant” or “spicy fusion flavor.” 4. Performance Emphasis Product must outperform competitors. BG Noodles claim to cook faster or taste better than rivals. 5. Assumes Customers Know Quality Belief that customers can recognize and choose quality. BG advertises premium quality to attract informed buyers. 6. R&D Driven Strong focus on research and product development. BG invests in food technology labs for recipe development. 7. Limited Promotion Needed Belief that a great product sells itself. BG relies more on packaging and product value than heavy advertising. 8. Premium Pricing Possible Can charge higher due to superior quality. BG may price “Gold Edition” noodles higher than regular ones.

 

Other Features:

1.      Innovation-driven.

2.      Continuous product improvement.

3.      Ignores market needs sometimes.

4.      Focus on R&D.

5.      High investment in design.

6.      Limited promotion required.

7.      Assumes customers recognize quality.

Theme of the Product Concept

Element	Explanation
Starting Point	Product
Focus	Quality and Performance
Means	Product Innovation, R&D
End	Customer Satisfaction through Superior Product

 

Finding: The Product Concept Works Best When…

·         Customers are quality-conscious and informed.

·         The market is competitive, requiring product differentiation.

·         Products are complex or technology-driven, where features matter.

·         Customers can see or experience the superiority of the product.

·         There’s room for innovation and continuous improvement.

·         Business is ready to invest in R&D and quality control.

·         Price sensitivity is lower than performance sensitivity.

C. Selling Concept

The Selling Concept is a marketing philosophy that assumes consumers will not buy enough of a company’s products unless it undertakes aggressive promotional and selling efforts. Focuses on aggressive promotion and selling, often for unsought goods.

 It focuses on pushing the product to customers, regardless of their actual need or interest.

When Was It Popular?

·         Gained popularity in the 1930s–1950s, particularly after the Great Depression.

·         Still used today in industries with unsought goods or high competition (e.g., insurance, real estate, fast-moving consumer goods).

	Feature / Characteristic		BG Noodles Example
1	Sales-Oriented	Main goal is to increase sales volume, not necessarily to meet customer needs.	BG runs frequent discount schemes and "Buy 1 Get 1 Free" to drive purchases.
2	Aggressive Promotion	Heavy use of advertising, personal selling, or sales promotions.	TV, social media ads, and posters aggressively promote BG Noodles.
3	Short-Term Focus	Focuses on immediate sales rather than long-term customer relationships.	Flash sales and seasonal offers aim for quick market penetration.
4	Push Strategy	Pushes product to customers even if there is no strong demand.	BG offers promotional packs in school canteens or events to stimulate trial.
5	Customer Persuasion	Relies on convincing customers to buy, not satisfying an existing demand.	Uses celebrity endorsements or catchy slogans to influence buyer decisions.
6	Production Surplus	Often used when production exceeds demand.	BG may ramp up promotions when stock levels are high or nearing expiry.
7	Less Market Research	Products are marketed based on internal objectives, not deep customer insights.	BG may launch new flavors without extensive testing or feedback.
8	Applicable to Unsought or Low-Involvement Goods	Used for goods customers don’t actively seek out or think much about.	Instant noodles like BG may be low-involvement, hence need aggressive visibility.

Features:

1.      High emphasis on advertising.

2.      Short-term focus on sales volume.

3.      Push strategy.

4.      Assumes reluctance to buy.

5.      Neglects long-term customer relationships.

6.      Can be misleading.

7.      Common in insurance, real estate, etc.

8.       

Theme of The Selling Concept

Element	Explanation
Starting Point	The company starts with its existing product and a desire to boost sales.
Focus	The focus is on selling and promoting the product, not customer needs.
Means	Uses advertising, sales promotions, discounts, and personal selling.
End	The goal is maximum sales volume and revenue, not long-term satisfaction.

 

Findings: The Selling Concept Works Best When…

·         The company has excess inventory or needs to clear stock.

·         Products are unsought or impulse buys (e.g., insurance, encyclopedias, instant noodles).

·         There is intense market competition and low product differentiation.

·         Customer loyalty is not a priority (short purchase cycles).

·         Target customers are not brand-conscious and respond to price or promotion.

·         Products have short shelf life or are low-involvement items.

·         Businesses need to create demand artificially through visibility and pressure tactics.

 

D. Marketing Concept

The Marketing Concept is a business philosophy that focuses on identifying and satisfying customer needs and wants better than competitors to achieve organizational goals such as profitability and growth.

Success comes from understanding customer needs and delivering satisfaction better than competitors.

When Was It Popular?

·         Emerged and became popular in the 1950s, post-World War II.

·         As markets became more competitive and customers had more choices, businesses shifted from production/sales orientation to customer orientation.

Feature/Characteristic	Description	Example: BG Noodles
1. Customer Orientation	Business decisions start with understanding customer needs.	BG Noodles introduces regional flavors based on local taste preferences.
2. Market Research-Based	Decisions are based on insights from customer surveys, feedback, and data.	BG conducts surveys in schools and urban areas to learn what flavors are preferred.
3. Value Creation	Focus on delivering value that satisfies customers.	BG Noodles offers affordable combo packs with sachets of tastemaker/spice to enhance perceived value.
4. Integrated Marketing Effort	All departments work together to serve customer needs.	Marketing, production, and distribution teams coordinate to ensure product availability and freshness.
5. Profit through Customer Satisfaction	Long-term profits come from meeting customer expectations consistently.	BG Noodles builds brand loyalty among college students and families by offering consistent quality.
6. Focus on Long-Term Relationships	Retains customers by building loyalty rather than focusing only on sales.	BG launches loyalty schemes or kids' contests to build emotional connections.
7. Responsive to Feedback	Adapts products/services based on customer input.	BG Noodles adds “less spicy” versions after customer complaints about spice levels.
8. Sustainable Practices	Considers social and environmental responsibilities.	BG Noodles introduces recyclable packaging to appeal to eco-conscious customers.

 

Other Features:

1. Customer is king.
2. Long-term relationship building.
3. Market research-based.
4. Integrated marketing effort.
5. Profit through satisfaction.
6. Value delivery focus.
7. Adaptability to market change.

Example:
Apple designs products based on user experience and ecosystem compatibility.

Theme of the marketing concept:

Element	Description
Starting Point	Customer needs and wants
Focus	Customer satisfaction and relationship building
Means	Integrated marketing efforts, market research, innovation
End (Goal)	Profit through long-term customer loyalty and satisfaction

Findings: The Marketing Concept Works Best When…

o   The market is competitive, and customers have multiple choices.

o   Customers are well-informed and expect more than just availability or low price.

o   Customer loyalty and retention are crucial to long-term success.

o   Products can be differentiated based on value, taste, service, or brand.

o   Businesses aim to build a sustainable brand image and not just push sales.

o   Feedback and customization matter in product development.

o   Marketing is seen as a strategic function, not just a promotional tool.

E. Holistic Marketing Concept

Holistic marketing is a comprehensive and integrated approach to marketing that considers everything matters—brand, customers, employees, stakeholders, ethics, and society. It integrates all aspects of marketing to deliver consistent value across all touchpoints.

Recognizes that everything matters in marketing—a broad, integrated perspective is required.

When It Became Popular:

o   Gained popularity in the early 2000s as brands began emphasizing customer experience, social responsibility, internal marketing, and integration across digital and traditional channels.

o   Driven by technology, globalization, and the need for brand consistency.

 

Feature/Characteristic	Explanation	Example: BG Noodles
1. Integrated Marketing	Ensures consistency in message, design, and tone across all channels.	BG Noodles uses the same branding and packaging in TV ads, retail stores, and online promotions.
2. Relationship Marketing	Builds long-term relationships with customers, suppliers, and partners.	Partners with local distributors and retailers to maintain consistent availability and trust.
3. Internal Marketing	Aligns employees and internal culture with the brand promise.	Ensures that factory workers, delivery teams, and marketers understand the brand values like quality and hygiene.
4. Socially Responsible Marketing	Focuses on ethical practices and contributions to society.	Promotes healthy ingredients, hygiene, and sponsors school nutrition programs.
5. Value-Based Marketing	Delivers customer value while respecting environmental and social concerns.	Emphasizes affordability, quality, and nutritional value in its product.
6. Technology Integration	Leverages digital tools for marketing and feedback.	Uses mobile surveys and QR codes for customer feedback and engagement.
7. Customer-Centric Approach	Places the customer experience at the center of strategy.	Adapts pack sizes and price points for rural and urban customers based on their needs.
8. Stakeholder Orientation	Balances interests of all stakeholders (customers, employees, partners, society).	Works with local farmers, packaging partners, and retailers to build a sustainable ecosystem.

 

Other Features:

1.      Internal Marketing: Aligns company culture and employees.

2.      Integrated Marketing: Consistent brand messaging across channels.

3.      Relationship Marketing: Builds long-term customer and partner relationships.

4.      Social Responsibility Marketing: Focus on ethics and sustainability.

5.      System-wide planning.

6.      Multi-stakeholder focus.

7.      Technology integration.

Example:
Google’s marketing integrates user experience, employee engagement, corporate social responsibility, and consistent brand communication.

Theme of the Holistic Marketing Concept

Element	Description
Starting Point	Recognizes that marketing is not just about selling a product—it’s about building relationships, trust, and brand value.
Focus	Focuses on integrated marketing, internal alignment, customer experience, and social responsibility.
Means	Uses a combination of tools—advertising, CSR, CRM, internal communication, digital platforms, and stakeholder engagement.
End Goal	To create long-term customer loyalty, positive brand image, and sustainable business growth.

 

Finding: The Holistic Marketing Concept Works Best When...

o   The company wants to build a strong, trusted brand.

o   Customer expectations are high across multiple touchpoints (online, offline, in-store).

o   The market demands ethical, sustainable, and responsible business practices.

o   The business environment is complex, involving many stakeholders.

o   The company wants to create loyal customers, not just one-time buyers.

o   Consistency in brand communication and employee engagement is critical.

o   The organization wants to differentiate on experience and values, not just price.

o   It aims for long-term profitability through value creation, not just volume sales.

 

v  Marketing Mix

The marketing mix refers to the set of controllable marketing tools that a company uses to produce a desired response from its target market. It's the strategic combination of different marketing elements working together to influence consumers and achieve organizational goals.

The most traditional and well-known concept in marketing is the 4 Ps, introduced by E. Jerome McCarthy: Product, Price, Place (Distribution), and Promotion.

Over time, with the growth of the service industry, the marketing mix evolved to include the 7 Ps by adding: People, Process, and Physical Evidence.

Later, the concept was further expanded to the 9 Ps of Marketing with the addition of: Presentation (or Performance) and Partners, offering a more holistic view of modern marketing practices.

 

The 9 Ps of Marketing Mix – Full Explanation

1. Product

A product is anything that can be offered to satisfy a customer’s need or want. It can be a physical good, a service, or an idea. (Example: goldstar shoes, wai-wai noodles, paicho etc.)

The product lies at the core of the marketing mix. It must deliver value, fulfill customer expectations, and offer unique benefits.

Example: BG Noodles offers instant noodles with spicy and tangy flavors, targeting the taste preferences of young consumers.

Why It Matters: Without a good product, no amount of marketing will succeed. It is the foundation upon which all other Ps are built.

2. Price

Price refers to the amount of money customers must pay to obtain the product.

Pricing must reflect value perception, competitiveness, market demand, and cost structures. It also influences brand image.

Example: BG Noodles adopts a penetration pricing strategy to attract students and low-income consumers with affordable packs.

·         Why It Matters: Price affects profitability, sales volume, and consumer expectations. It can be used strategically to enter new markets or position the brand.

3. Place (Distribution)

Place refers to the channels, locations, and methods used to make the product available to customers.

To ensure that the product reaches the right customer at the right place and time, whether through retail, wholesale, or digital platforms.

Example: BG Noodles is distributed through local shops, supermarkets, and online platforms to ensure widespread availability.

Why It Matters: A great product can fail if customers cannot find it. Place determines convenience and reach.

4. Promotion

Promotion involves all the communication strategies used to inform, persuade, and remind customers about the product.

To build brand awareness, create interest, and stimulate demand.

Example: BG Noodles runs social media challenges, YouTube ads, and college sponsorships to engage young buyers.

Why It Matters: Promotion builds visibility, trust, and competitive advantage in a crowded market.

5. People

People are those involved in delivering the product/service, including employees, customer service reps, and sales personnel.

To ensure every human interaction positively reflects the brand and contributes to customer satisfaction.

Example: BG Noodles employs brand ambassadors and trained field marketers during college events to promote their brand.

Why It Matters: People create experiences, and in services or experiential products, people are a direct reflection of brand quality.

6. Process

Process refers to the systems, procedures, and flow of activities involved in delivering the product or service.

To deliver a consistent, efficient, and high-quality customer experience.

Example: BG Noodles ensures a consistent taste by using automated production lines and a fixed recipe across locations.

Why It Matters: Good processes lead to operational efficiency, customer satisfaction, and scalability.

7. Physical Evidence

Physical evidence includes tangible cues and materials that help customers evaluate a product or service before or after purchase.

To build trust and reassurance, especially in intangible service-based businesses.

Example: BG Noodles uses vibrant, hygienic, and eco-friendly packaging that highlights the flavor and health benefits.

Why It Matters: Enhances brand credibility and helps differentiate products in competitive markets.

8. Presentation (Added by Larry Steven Strode in 2007)

Definition: Presentation refers to how the overall brand experience is crafted and perceived, going beyond just advertising.

Purpose: To create meaningful, emotional, and memorable impressions of the brand.

Example: BG Noodles engages in CSR (Corporate Social Responsibility), sponsoring food donations and sustainability campaigns to connect emotionally with the public.

Why It Matters: Consumers buy experiences, not just products. Presentation influences emotions, loyalty, and brand affinity.

8.      Partners (Also added by Strode in 2007)

Partners include strategic alliances with other companies or stakeholders that help a business grow, innovate, or deliver more value.

To extend reach, improve efficiency, and access new markets or expertise.

Example: BG Noodles partners with delivery apps (like Swiggy, Zomato) and co-brands with local spice producers to create combo packs.

Why It Matters: Partnerships open new opportunities and resources a business may not have alone. They increase scalability and impact.

Components of Marketing Mix

9Ps	Definition	Purpose	BG Noodles Example
Product	What is being sold	Satisfy needs/wants	Spicy instant noodles for youth
Price	What customers pay	Influence value perception and demand	Low-cost packs for affordability (50 NPR)
Place	Where and how it's available	Ensure accessibility and convenience	Sold in shops and online
Promotion	How it’s advertised (Advertisement, Personal Selling, Sales Promotion, Publicity, Public Relation)	Build awareness and interest	Social media ads, college events
People	Who interacts with customers	Create positive brand experience	Trained field staff, promoters
Process	How it's delivered	Ensure consistency and quality	Standardized production and cooking
Physical Evidence	Tangible brand touchpoints	Build trust	Eye-catching, hygienic packaging
Presentation	Brand's emotional and strategic experience	Strengthen connection	CSR campaigns, brand storytelling
Partners	Strategic collaborations (Suppliers, Middleman, Agents etc.)	Expand reach and capability	Delivery app tie-ups, spice brand collaborations

 

The role of a marketing manager in today's scenario is highlighted, emphasizing market research, digital strategy, brand building, product innovation support, pricing, sales and promotion planning, CRM, and sustainability. The evolution of marketing philosophies is then explored, covering the Production Concept, Product Concept, Selling Concept, Marketing Concept, and Holistic Marketing Concept, each with its historical context, features, and application.

Effective marketing management is a dynamic and multifaceted process that has evolved significantly over time. The shift from a production-centric to a customer-centric and now a more holistic approach underscores the importance of understanding and satisfying customer needs while also considering broader organizational goals, ethical responsibilities, and strategic partnerships. The marketing mix, whether viewed through the lens of the 4Ps, 7Ps, or 9Ps, serves as a crucial framework for marketers to strategically manage various controllable elements to influence their target market and achieve success. The case of "BG Noodles" illustrates how these concepts and tools can be applied in a real-world business context.

Key Findings:

o   Customer-Centricity is Paramount: Modern marketing management increasingly emphasizes understanding and fulfilling customer needs as the core driver of success.

o   Marketing is a Continuous and Dynamic Process: Marketers must constantly adapt to evolving market trends, technological advancements, and changing consumer behavior.

o   The Marketing Mix is a Strategic Toolkit: The various "Ps" provide a framework for businesses to strategically manage their offerings, pricing, distribution, communication, people, processes, physical evidence, presentation, and partnerships.

o   Evolution of Marketing Philosophies Reflects Market Changes: The shift from production to selling to marketing and finally to a holistic approach demonstrates how businesses have adapted to increasing competition, more informed consumers, and a greater awareness of broader societal impacts.

o   Digital Marketing is a Critical Component: The role of a marketing manager now heavily involves leveraging digital platforms for reaching and engaging customers.

o   Beyond the Core Product: Modern marketing success involves more than just the product itself; it encompasses the entire customer experience, brand perception, and strategic alliances.

o   Sustainability and Ethics are Growing in Importance: The role of a marketing manager and the holistic marketing concept highlight the increasing need for businesses to adopt sustainable and socially responsible practices.

Recommendations:

o   Embrace a Customer-Centric Approach: Organizations should prioritize understanding their target audience through market research and feedback mechanisms to tailor their offerings effectively.

o   Adopt a Holistic Marketing Perspective: Consider all stakeholders, integrate marketing efforts across all channels, and ensure internal alignment to deliver a consistent brand experience.

o   Strategically Manage the Expanded Marketing Mix: Utilize the 9Ps framework to comprehensively plan and execute marketing strategies, paying attention to not just the core elements but also presentation and partnerships.

o   Invest in Digital Marketing Capabilities: Develop robust digital marketing strategies to reach and engage customers in the online environment.

o   Focus on Building Long-Term Customer Relationships: Implement CRM strategies and focus on creating value that fosters loyalty and repeat business.

o   Integrate Sustainability and Ethical Practices: Incorporate socially responsible and environmentally conscious practices into marketing activities and product development.

o   Foster Interdepartmental Collaboration: Ensure seamless coordination between marketing, R&D, production, sales, and other departments to deliver a unified customer experience.

o   Continuously Monitor and Adapt: Regularly analyze market trends, competitor activities, and customer feedback to adjust marketing strategies and the marketing mix as needed.

o   Leverage Strategic Partnerships: Explore and cultivate collaborations that can enhance reach, innovation, and value delivery.

o   Pay Attention to Brand Presentation: Recognize the importance of creating positive emotional and memorable brand experiences that go beyond traditional advertising.