Marketing Management

• Definition & Meaning of Marketing

• Basic Concepts & Technical Terms

• Role of Marketing Manager

 Marketing Defined
• Marketing is a social & managerial
process by which individuals and groups
obtain what they need & want through
creating & exchanging products & value
with others- Philip Kotler
 Marketing Defined
• Marketing is a social & managerial
process by which individuals & groups
obtain what they need and want through
creating & exchanging value with others
• In a business setting, marketing involves
building & managing profitable exchange
relationships with customers
 Meaning of Marketing
• Marketing is seen as the task of creating,
promoting, & delivering goods & services
to consumers and businesses
• Marketers are skilled in stimulating
demand for a company’s products
• Also, influence the level, timing, &
composition of demand management
 Needs, Wants & Demands
• Needs: Needs are the basic human
requirements- food, air, water, clothing,
shelter
• People also have strong needs for
recreation, education & entertainment
• A Human need is a state of felt deprivation
of some basic satisfaction
 Wants
• Wants: These needs become wants when
they are directed to specific objects that
may satisfy the needs
• Wants are desires for specific satisfiers of
these deeper needs
• Wants are shaped by one’s society
 Demands
• Demands: Demands are wants for specific
products backed by an ability to pay &
willingness to buy them
• Companies must measure not only how
many people want the product, but how
many would actually be willing & able to
buy them
 Core Concepts- Learn all
• Needs, Wants & Demands
• Products & Services
• Value, Cost & Satisfaction
• Exchange & Transaction
• Markets
• Marketers & Prospects
• Marketing
 Products & Services
• A Product can be defined as anything that
can be offered to satisfy a need or want.
• A Car would be bought for transportation
• A product satisfies a benefit/use
 Services
• Airlines, Hotels, Car Rentals, Dog kennels,
Haircuts
• Professionals- Accountants, Lawyers,
Doctors, Management Consultants
 10 Types of entities
• Physical Goods
• Services
• Experiences
• Events
• Persons
• Places
 10 Types of entities (cont’d)
• Properties
• Organizations
• Information
• Ideas
 Physical Goods
Tea
 Physical goods
• These constitute the bulk of most
countries’ production & marketing efforts
• Include cars, televisions, machines, etc
• Can be classified as non-durable &
durable products
 Services
• Services are intangible , inseparable,
variable & perishable products.
• As a result require more quality control,
supplier credibility, and adaptability
Services- Haircuts, Repairs, Hotels
Services
Services- Haircuts, Repairs, Hotels
• Car repairs
 Services- Hotels
• Comfort & Rest is the benefit
 Services- Airlines
• Flying
 Experiences
• By orchestrating several services & goods
a firm can create, stage and market
experiences
• Walt Disney’s- Disneyland, Old Appu
Ghar, Worlds of Wonder
 Experiences
• Bungee Jumping
 Events
• Marketers promote time-based events ,
such as Olympics, company
anniversaries, major trade shows, sports
events and artistic performances
Events- Award Functions, Concerts
• IIFA
 Cricket & Other Games
• T20 Cricket
 Persons
• Celebrity marketing is major business
• Every film star has an agent , personal
manager & ties to a public relations
agency
• Artists, musicians, CEOs, physicians,
high-profile lawyers, & financiers, are also
getting celebrity marketers
 Persons
• Shahrukh Khan
 Places
• Cities, states, regions, & whole nations
compete actively to attract tourists,
factories, company headquarters, & new
residents
• Place marketers include economic
development specialists, real estate
agents, commercial banks, local business
associations, ad & PR agencies
 Tourist Places
Red Fort
 Properties
• Properties are intangible rights to
ownership of either real property( real
estate) or financial property ( stocks &
bonds)
• Properties are bought & sold – these
require marketing
 Properties
• Buildings
 Organizations
• Organizations work actively to build a
strong , favourable image in the minds of
its target publics
• Corporate identity ads, logos etc
 Organizations
• Corporate Identity
• Tag Line
 Corporate Entity- Logo
• GSB Logo- Aspire, Act, Accomplish
 Information
• Information can be produced & marketed
as a product
• These include encyclopedias, magazines,
software & CDs, internet information
• The production, packaging, & distribution
of information is one of the major
industries
 Information
• Encyclopedias, Magazines & Websites
 Websites
• World wide web
 Ideas
• Every marketing offering includes a basic
idea
• Products & Services are a platform for
delivering some idea or benefit
• Social marketers promote ideas to quit
smoking, use paper bags, global warming,
say no to drugs etc
 Ideas
• Save the environment
 Value, Cost & Satisfaction
• Customers choose among many product
options to satisfy a given need
• To travel they may choose from a bicycle,
scooter, motor-cycle, car, bus etc
• These alternatives are the Product Choice
Set
 Value, Cost & Satisfaction
• Several additional needs like speed, safety,
ease would be the Need Set
• Keeping these in mind the customer would
take a decision
• Customer Value is the guiding concept
• Value is the customer’s estimate of the
product’s over all capacity to satisfy his needs
 Value, Cost & Satisfaction
• Thus, the value of the actual product
would depend upon how close it comes to
the ideal product
• Value can be seen as a combination of
Quality, Service & Price (QSP) called the
Customer Value Triad
 What is a Market?
• Exchange is the act of obtaining a desired
product by offering something in return
• Transactions are the unit of exchange
• A market consists of all potential
customers sharing a particular need or
want who might be willing & able to
engage in exchange to satisfy the need or
want
 Marketing & Marketers
• If any party actively seeks an exchange
from the other party, then we call the first
party as marketer, and the second as
prospect
 Marketers & Prospects
• Marketers are someone seeking a
response from another party- attention,
purchase, vote, donation
• The party from whom the response is
sought is called the prospect
 Marketing management
• Marketing management is the process of
planning & executing the conception,
pricing, promotion, and distribution of
goods, services, & ideas to create
exchanges with the target segments that
satisfy customer & organization objectives.
 Types of Markets
• Consumer Markets- sell mass consumer
goods
• Business Markets- business buyers
• Global Markets- handle international
markets
• Non-profit & Government Markets
 Core Marketing Concepts
• Target Markets & Segmentation
• Identify & profile distinct groups of buyers
• Market segments can be identified by looking at
demographic, psychographic & behavioral
differences among buyers
• Marketer then decides on greater opportunity-
Target segment
 Types of demand
• Negative demand
• No demand
• Latent demand
• Declining demand
• Irregular demand
• Full demand
• Overall demand
• Unwholesome demand
 Demand Management
• Negative Demand- when the market
dislikes the product, like dentists
 Negative Demand- Dentists
• dentists
 Demand Management
• No Demand- market is indifferent or
uninterested in the product, like new courses,
smoke alarms etc
• Latent Demand- when customers share a
strong need that has not been fulfilled by the
existing product, like fuel efficient cars,
alternate for petrol etc
 Demand Management
• Declining Demand- when the firm faces decline
in demand for one or more of its products
• The marketer must analyse the causes &
develop strategies to revive demand by finding
new markets, uses of product, making the
product more attractive with new features, or
communicating strongly with the customer
.
 Demand Management
• Irregular Demand- demand varies by
season, daily or hourly. These include
mass transit equipment, museums
Synchromarketing is to find ways to alter
the same pattern of demand through
flexible pricing, promotion
 Irregular Demand
• Irregular Demand- Season
 Demand Management
• Full Demand- Organizations face full
demand when they are pleased with their
volumes of business.
• Maintain demand in such a case at the
same level in a rapidly changing
environment relating to consumer
preferences, increasing competition, &
changing regulations
 Demand Management
• Overfull Demand- Some organizations
face a demand more than they can handle
• The marketing task is Demarketing to
reduce /shift demand temporarily or
permanently and not to destroy demand
• This includes scarce resources like water,
electricity, fuel etc
 Demand Management
• Unwholesome demand- like cigarettes ,
alcohol etc attract organized effort to
discourage consumption
• The marketing task is to help people give
up the use by hiking prices, fear
communication, & reducing availability
 Stages of marketing
• Entrepreneurial marketing- individuals
start companies
• Formulated marketing- formal marketing
activity
• Intrepreneurial marketing- establish
entrepreneurial spirit within the company
 Goals of Marketing
• Attracting new customers by promising
superior value
• Retaining old customers by delivering
satisfaction
 Company Orientation towards
market place
• Production orientation
• Product orientation
• Selling orientation
• Marketing orientation
• Societal marketing orientation
 Production orientation

• The production concept holds that

consumers will prefer products that are
widely available & inexpensive
• Managers concentrate on high production
efficiency, low costs, & mass distribution
• They assume that consumers are primarily
interested in product availability & low
prices- more so in developing economies
 Product orientation

• Product concept holds that consumers will

favour those products that offer the most
quality, performance, or innovative
features
• Managers in these companies focus on
making superior products & improving
them over time
 Selling orientation

• The selling concept holds that consumers

& businesses if left alone, will ordinarily
not buy enough of the company’s products
• The company must undertake an
aggressive selling & promotion effort
 Marketing orientation
• The marketing concept holds that the key
to achieving its organizational goals
consists of the company being more
effective than competitors in creating,
delivering, & communicating superior
customer value in its chosen target
markets.
 Sales & Marketing
• The Selling Concept:
• Starting Point: Factory
• Focus: Products
• Means: Selling & promoting
• Ends: Profits through sales volumes
 Sales & Marketing- cont’d
• The Marketing Concept:
• Starting point: Target Market
• Focus: Customer needs
• Means: Integrated Marketing
• Ends: Profits through customer
satisfaction
 Integrated Marketing
• When all the company’s departments work
together to serve the customer’s interests,
the result is integrated marketing
• This takes place at two levels:
• First, the marketing functions- sales force,
advertising, customer service, product
management, marketing research must
work together
 Integrated Marketing
• Second, the marketing must be embraced
by all the other departments; they must
also “ think customer”
 Societal marketing orientation

• The concept holds that the organization’s

task is to determine the needs, wants, of
the target markets & to deliver the desired
satisfaction more effectively than
competitor’s – preserving consumers &
society's well-being
 Product Offering & Brand
• Companies address needs with a value
proposition- a set of benefits they offer to
satisfy customer needs.
• This intangible value proposition is made
physical by an offering, which can be a
combination of products, services,
information & experiences
• Example: Restaurants, Hotels
 Role of a Marketing Manager
• Interpersonal-
• Figurehead, Leader, Liaison

• Informational-
• Monitor, Disseminator, Spokesperson

• Decisional-
• Entrepreneur, Disturbance Handler,
Resource Allocation
 Role - Interpersonal
• Figurehead- Performs duties of a
ceremonial nature, like taking a client to
lunch
• Leader- Is responsible for work of
subordinates; motivates sales force
• Liaison- Makes contacts outside the
vertical chain command; meets with a
manager of a direct marketing firm
 Role- Informational
• Monitoring- Scans environment for
information; extracts competitor
information from a supplier
• Disseminator- Shares information with
subordinates; Feedback from clients
• Spokesperson- Sends out information like
making a speech for a favourable
legislative
 Role- Decisional
• Entrepreneur- Seeks improvements in
changing business scenario; assigns new
product idea to development team
• Disturbance Handler- Responds to high
pressure disturbances; addresses a
consumer boycott initiated by a special
interest group
• (Continued)
 Role- Decisional
• Resource Allocation: Decides on resource
allocation: determines the promotion
budget across brands
 Operating Areas
• Marketing Manager coordinates with
• Production- Orders, Shipments,
Revenues, Expenses,
• Research & Development- Ideas,
Development of products
• External Suppliers for production , as well
as R & D
 Operating Areas
• External Support Services- Advertising
Agencies, Direct Mail, Website
developers, PR Agencies, Sales
promotion firms
• Market Research Firms
• Products & Services- Dealers, Retailers,
Customers; provide information
 Responsibilities of Marketing
managers
• Marketing strategy development
• Customer analysis & segmentation
• Competitor analysis & positioning
• Market analysis & forecasting
• Product & Service development
• Pricing
• Distribution channel development
 Responsibilities of Marketing
managers
• Deployment & supervision of sales staff
• Direct marketing
• Advertising
• Sales promotion
• Preparing & implementation of marketing
plans
 Brand
• A brand is an offering from a known
source
• Eg, a brand name as Mc Donalds carries
many associations in the mind-
hamburgers, fun, children etc
• These associations make up the brand
image
 Market Offering
• For each chosen target market , the firm
develops a market offering
• To reach a target market, the marketer uses 3
kinds of marketing channels-
• Communication channels
• Distribution channels
• Service Channels
 Marketing Channels
• Communication channels: Newspapers, TV,
Magazines, internet
• Distribution channels: Distributors, Wholesalers,
Retailers, & Agents
• Service Channels: To carry out transactions with
potential buyers- warehouses, transportation
companies, logistics companies, banks, insurance
 Marketing Channels
• Marketers have to choose the best mix of
communication, distribution & service
channels in their offering
 Marketing Myopia
• Short sighted and inward looking approach to marketing
that focuses on the needs of the firm instead of defining
the firm and its products in terms of the customer' needs
and wants.
• Such self-centered firms fail to see and adjust to the
rapid changes in their markets and, despite their
previous eminence, falter, fall, and disappear.
• This concept was discussed in an article (titled
'Marketing Myopia,' in July-August 1960 issue of Harvard
Business Review) by Harvard Business Review emeritus
professor of marketing, Theodore C. Levitt (1925-), who
suggests that firms get trapped in this bind because they
omit to ask the vital question, "What business are we
in?"
 Relationships & Networks
• Relationship marketing has the aim of
building mutually satisfying long-term
relationships with key parties- customers,
suppliers, distributors- in order to earn &
retain their businesses
 Marketing Networks
• A marketing network consists of the
company & its supporting stake holders-
customers, employees, suppliers,
distributors, retailers, advertising & public
relation agencies, etc
• Build an effective network of relationships
with key stakeholders & profits will follow
 Supply Chain
• The supply chain describes a longer
channel stretching from raw material to
components, to final products, that are
carried to the final buyer.
 Competition
• Competition includes all the actual &
potential rival offerings and substitutes
that a consumer may consider
• Eg, different brands in washing machines,
cars, apartments, shampoos, hotels,
clothes etc
 Marketing Program or Plan
• Marketing Program or Plan consists of
numerous decisions on the marketing mix
tools to use
• The marketers task is to build a marketing
program or plan to achieve the company’s
desired objectives
 Marketing Mix
• Product
• Place
• Price
• Promotion
 Product
• Tangible
Place- Indian Market
 Product & Place
• Toys
 Shopping Mall
Malls
 Price
• Petrol Prices
 Promotion- TV Ads
• TV, Radio, Magazines
 Promotion- Out of Home
• Outdoor- OOH
 Promotion
• Display at Mother Dairy
 Assignment
• You are working for a company in the
marketing dept.
• Select the company you work for and the
products & services you market
• Prepare an assignment on the activities
involved in, for the products and services
that you market, using the terms learnt in
this lesson.
 Assignment
• This report should have a practical view
point based on your inferences from the
industry point of view.
• You can make this report of 500 words
illustrated with practical solutions to the
marketing of the company.
• Illustrate with examples from the
newspapers, magazines and internet