Marketing (Balaji) PDF

MARKETING
MANAGEMENT
July-August 2005
DILIP M. SARWATE Ph. D. CMC
July- August 2005 Dilip M. Sarwate Ph.D. 1

Section One
Understanding
Marketing Management

WHAT IS HAPPENING ON
MARKETING FRONT ?
n MARKETING IS BECOMING ALL PERVASIVE
n ENVIRONMENTS AT GLOBAL, MACRO &
MICRO LEVEL CHANGING
n CUSTOMERS ARE BECOMING DEMANDING
n COMPETITION IS BECOMING FIERCER
n TECHNOLOGY IS RAPIDLY CHANGING
n MARKETING COSTS ARE ON THE RISE

WHAT IS MARKETING ?
n MARKETING IS A PROCESS OF
EXCHANGES TO SATISFY NEEDS &
WANTS TO GENERATE CUSTOMER
SATISFACTION AND FULFILLING THE
ORGANISATIONAL OBJECTIVES

Type of Exchanges
n B2B
n B2C
n C2C
n C2B

WHAT IS MARKETING
MANAGEMENT ?
n ANALYSING MARKETING OPPORTUNITIES
n RESEARCHING AND SELECTING TARGET MARKETS
n UNDERSTANDING CUSTOMER EXPECTATIONS
n COMPETITIVE POSITIONING
n DESIGNING MARKETING STRATEGIES
n PLANNING MARKETING PROGRAMMES
n ORGANISING, IMPLEMENTING AND CONTROLLING
MARKETING EFFORTS

MARKETING AS A
FUNCTION
n MARKETING RESEARCH/INTELLIGENCE
n MARKETING COMMUNICATION
n SALES MANAGEMENT
n MARKET LOGISTICS
n SERVICE
n MARKETING ADMINISTRATION
n MARKETING FINANCE
n MARKETING INNOVATION
MARKETING AS A
CONCEPT
MANAGEMENT ORIENTATION
n PRODUCTION CONCEPT- CONSUMERS WILL
FAVOUR AVAILABILTY AND LOW COST.
CONCENTRATION ON PRODUCTION EFFICIENCY
AND WIDE DISTRIBUTION
n PRODUCT CONCEPT- CONSUMERS WILL
FAVOUR QUALITY, PERFORMANCE AND INNOVATIVE
FEATURES. CONCENTRATION ON MAKING
SUPERIOR PRODUCTS AND IMPROVEMENTS
REGULARLY

MARKETING AS A
CONCEPT (CONTINUED)
n SELLING CONCEPT- AGGRESSIVE SELLING
AND PROMOTIONAL EFFORTS ARE REQUIRED TO
CONVINCE CUSTOMERS
n MARKETING CONCEPT- THE KEY TO
FULFILLING THE ORGANISATIONAL OBJECTIVES
CONSISTS OF SUPERIORITY OVER COMPETITORS IN
INTEGRATING MARKETING ACTIVITIES TOWARDS
DETERMINING AND SATISFYING THE NEEDS AND
WANTS OF TARGET MARKETS

LANDMARKS IN THE DEVELOPMENT
OF MARKETING CONCEPTS
n 1950’s CUSTOMER ORIENTATION DRUCKER
n 1960’s MARKETING MYOPIA LEVITT
n 1970’s POSITIONING RIES & TROUT
n 1980’s SERVICE NICHE KOTLER
MARKETING WARFARE RIES & TROUT
n 1990’s GLOBAL MARKETING LEVITT
n 2000’s RELATIONSHIP MARKETING (CRM)
COMPETITIVE INTELLIGENCE
KNOWLEDGE MANAGEMENT

EVOLVING ROLE OF
MARKETING
n
tio
Production Finance
uc
od
Pr
Marketing H.R.D Marketing R.
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Finance
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PRODUCTION DOMINANT ALL FUNCTIONS EQUAL

EVOLVING ROLE OF
MARKETING
Production
Production Finance
HRD
H
e
RD
anc
Marketing Fin
MARKETING IMPORTANT MARKETING MAJOR

EVOLVING ROLE OF
MARKETING
Fin Production
an
ce
n
tio
Marketing
uc
od
Pr
Customer Customer
HRD
M
ark
e
eti
nc
ng
na
RD
Fi
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CUSTOMER CONTROL CUSTOMER FOCUS/INTEGRATED MARKETING

Customer Value
n Total customer value: Product value,
services value, personnel value and image
value
n Total customer cost: Monetary cost,time
cost, energy cost and psychic cost
n Customer perceived value: Difference
between the prospective customer’s
evaluation of all the benefits and all the costs
of an offering and the perceived alternatives
Customer satisfaction
n Satisfaction is a person’s feeling of pleasure
or disappointment resulting from comparing a
product’s perceived performance in relation to
his or her expectations
n Measuring customer satisfaction
• Customer satisfaction surveys
• Complaint and suggestion system
• Ghost shopping
• Lost order analysis

Stakeholders as customers
n Consumers
n Customers
n Employees
n Suppliers
n Dealers
n Shareholders
n Financial institutions
n Government
n Society

Value chain
n Tool for identifying ways to create more customer
value
n Primary activities
• Inbound logistics * Operations
• Outbound logistics * Marketing and sales
• Service
§ Support activities
• Procurement
• Technology development
• Human resource management
• Firm infrastructure

Attracting and retaining
customers
n Three types of customers

• Firm’s customers
• Competitors’ customers
• Non-users
n Retention of customers
n Attracting the customers

Customer relationship
management (CRM)
n Establishing long term relationship with key
customers to produce high customer equity,
that is loyal customers
n Alternatives
• Basic marketing : Simply sell the product
• Reactive marketing: Encourage feedback
• Accountable marketing: Follow-up, suggestions on
improvements
• Proactive marketing: Anticipating future needs of customers
• Partnership (Back) marketing: Helps customer to succeed

WHY WE SHOULD SATISFY
THE CUSTOMER?
n BUYS AGAIN
n TALKS FAVOURABLY TO OTHERS
n REMAINS A LOYAL CUSTOMER
n BUYS NEW PRODUCTS OF THE COMPANY
n INCREASES PROFITABILITY
CUSTOMER RETENTION MORE CRITICAL
THAN CUSTOMER ATTRACTION.
FROM CUSTOMER SATISFACTION TO
DELIGHTING THE CUSTOMER.

HOW DO WE DO IT BETTER
THAN OUR COMPETITORS?
n CUSTOMER FEEDBACK
n CUSTOMER SATISFACTION
n RELATIONSHIP MARKETING
n CUSTOMER CARE AND SERVICE NICHE
n EFFICIENT COMPLAINT HANDLING
n BACK ( PARTNERSHIP) MARKETING

BACK MARKETING
n KNOW THE BUSINESS OF YOUR CLIENT
n USE INFORMATION IN SPOTTING
OPPORTUNITIES
n PROVIDE GUIDANCE ON ENTERPRISE
MANAGEMENT
n HELP THE CLIENT SUCCEED
n DEVELOP LOYAL CUSTOMERS
n INCREASE YOUR OWN BUSINESS

BEFORE SALES SERVICE
n MARKETING COMMUNICATION
n HELP IN SELCTION
n RELIABILITY
n TRAINING
n GUARANTEES
n FINANCING
n TESTING
n CHOICE
n PERIPHERAL
AFTER SALES SERVICE
n WARANTEES
n SUPPLY OF SPARES
n TROUBLE SHOOTING
n QUALITY AUDITS
n TRADE IN ALLOWANCE
n REPLACEMENTS
n PUBLIC RELATIONS
CHANGING PARADIGMS
n TURBO MARKETING
• FASTER INNOVATIONS
• MANUFACTURING EFFICIENCY
• EFFECTIVE LOGISTICS
§ RETAILING
v OTHERS
• USE OF COMPETITIVE INTELLIGENCE
• CUSTOMER PROFITABILITY
• TOTAL QUALITY MANAGEMENT (TQM)
• RETURN ON MARKETING (USE OF MARKETING RATIOS)

WHAT IS A CUSTOMER?
n A CUSTOMER IS THE MOST IMPORTANT PERSON IN
OUR BUSINESS, IN PERSON IN OUR OFFICE , SHOP,
ON TELEPHONE OR BY MAIL.
n A CUSTOMER IS NOT DEPENDENT ON US … WE ARE
DEPENDENT ON HIM/HER.
n A CUSTOMER IS NOT AN INTERRUPTION TO OUR
WORK … HE/SHE IS THE PURPOSE OF IT.
n WE ARE NOT DOING A FAVOUR BY SERVING
HIM/HER … HE/SHE IS DOING US AFAVOUR BY
GIVING US THE OPPORTUNITY TO DO SO.

WHAT IS A CUSTOMER ?
n A CUSTOMER IS RIGHT. HE/SHE IS ALWAYS RIGHT.
n NOBODY HAS EVER WON AN ARGUMENT WITH A
CUSTOMER.
n CUSTOMER BRINGS NEEDS AND WANTS. OUR JOB
IS TO FULFILL THEM. PROFITABLY FOR BOTH OF
US.
n A CUSTOMER IS THE KING(QUEEN )
-- MAHATMA GANDHI

Section Two
Analyzing Marketing
Opportunities

Scanning the marketing
environment
n Macro environments
• Economy
• Technology
• Polity
• Culture
§ Micro environments
• Market
• Task
§ SWOT analysis

Market information
n Marketing information system
• Internal record system
• Marketing intelligence system
• Marketing research system
• Analytical system
• Marketing decision support system
§ Market size estimation
• Present demand
• Forecasting

Major Schools
n Industrial Marketing
n Consumer Marketing
n Services Marketing

Understanding the
Markets
7 O’s of Markets
• Objects
• Objectives
• Organization
• Operations
• Occupants
• Occasions
• Outlets
4 P’s of Marketing Mix
• Product
• Price
• Place
• Promotion

Consumer markets and
buyer behavior
n Buyer’s characteristics: Cultural,
social,personal and psychological
n Social factors: Reference groups (family
members, neighbors, relatives, colleagues
and others)
n Buying roles: Initiators, influencers,
deciders, purchasers and users
n Personal factors: Age, occupation,
economic status, life style

Consumer markets and
buyer behavior (Cont.)
n Psychological factors: Motivational
theories of Moslow’s hierarchy of needs,
Freud’s, Pavlov, Herzberg’s
satisfiers/dissatisfiers)
n Post purchase behavior: Cognitive
dissonance
n Share of heart, share of mind and share
of market

Business markets and
behavior
n Producer’s market: Industrial goods,

consumer goods, original equipments,
finished goods, components
n Institutional markets
n Resellers market: For all types of goods
n Government market: For all types of goods

WHAT DOES THE
CUSTOMER WANT ?
n INDUSTRIAL CUSTOMERS
- TECHNICAL CAPABILITY
- DELIVERY
- QUALITY
- PRICE
- PERFORMANCE HISTORY
- PRODUCTION FACILITIES
- REPUTATION
- FINANCIAL POSITION
- PROGRESS COMMUNICATION
- MANAGEMENT AND ORGANIZATION

DIFFERENCE WITH
CONSUMER MARKETING
n NUMBER OF CUSTOMERS ARE SMALL, LARGE
BUYERS
n GEOGRAPHICAL CONCENTRATION
n NON-HOMOGENUITY
n DERIVED DEMAND
n BUYING OBJECTIVES
n BUYING OPERATIONS- CLOSE SUPPLIER
RELATIONSHIP
n DIFFERENCE IN MARKETING MIX
n COMPETITION

Type of marketing
n OE marketing
n Spares marketing
n Systems marketing
n Turnkey projects

Market segmentation
n Definition: Subdividing the total market on the
basis of certain common characteristics
n Segmentation variables
• Geography
• Demography
• End use basis
• Psychography
• Buyer behavior

Benefits of segmentation
n Identifies all types of markets

n Comparison of the relative benefits
n Identifying the competition in each segment
n Understanding the requirements of customers
n Defining the target markets
n Refining the marketing mix

Essentials for segmentation
n Substantiality
n Accessibility
n Measurability

Target marketing strategies
n Single segment concentration

n Product specialization
n Market specialization
n Selective specialization
n Full market coverage
n STP (Segmenting, targeting & positioning)

Section Three
Developing marketing
strategies

Product life cycle strategies
n Stages
• Introduction
• Growth
• Maturity
• Decline
§ Analyzing each stage: With respect to
sales volume, market share, marketing
expenses, competition, customer size
§ Strategies: With respect to 4 P’s

Developing new products
n Why new products?
• Changing customer tastes
• Product obsolescence
• Increased competition
• Resource limitations
• Governmental controls
§ Innovation versus imitation
§ Innovation: High cost of R & D, long gestation, high
marketing costs, risks
§ Imitation: Low R&D cost, low risk

Stages in new product
development
n Idea generation: Customers, dealers, suppliers, competitors,
R&D people, top management
n Screening: Present line, market opportunities, policies with
respect to investment, return on investment, pay back period. Go
error versus no-go error
n Concept testing
n Feasibility studies: Legal, marketing, technical, financial
n Product development
n Test marketing
n Commercialization

Competitive marketing
n Type of players
• Market leader
• Market challenger
• Market follower
• Market nicher
§ Competitive Intelligence
§ Competitor reconnaissance
§ Early warning system
§ Counter intelligence

Competitive strategies (cont)
n Alternatives
n Defending the market share
n Expanding the market share
n Marketing warfare
n Mergers & acquisitions
§ Developing the right amalgam of
customer and competition orientation

Strategies for global
markets
n Overseas market research
n Global environment scanning
n Evaluating competitive advantage (Porter’s
model
• Factor conditions ( Manufacturing capacity, productivity)
• Supporting industries (Ancillary, services- banking, insurance)
• Demand (Local and global, growth)
• Organization, structure, rivalry
• Government help
• Risk taking

Alternatives of entry
n Exports: Direct, indirect and deemed
n Joint venturing
• Licensing
• Subcontracting/outsourcing
• Management contracting
• Technology transfer
• Equity participation
§ Multi-national marketing
• Global manufacturing facilities
• Direct foreign investment
• Mergers& acquisitions

Section Four
Designing Marketing
Program

Product strategies
n Product levels
n Generic product
n Basic product
n Expected product
n Augmented product
§ Product hierarchy
• Need family
• Product line
• Product class
• Product type
• Brand

Brand decisions
n Six levels of meaning of brand
• Attributes
• Benefits
• Values
• Culture
• Personality
• User
§ Building brand equity
• Brand awareness: Through name, logo, colours
• Brand effectiveness: Through recall
• Brand loyalty: Through customer satisfaction

Brand naming
Alternatives
n Short, simple and easy to remember
n Giving product features, colours, design
n Giving product benefits
n Association with people, places, events
n Distinctly different
n Decisions
• Individual names
• Blanket/ separate family names
• Corporate names

Packaging decisions
n Purpose of packaging
• Protection
• Promotion
• Brand identity
• Economy
• Legal requirement
§ Alternatives
• Materials to be used
• Design
• Labeling

Services marketing

What is a Service?
n A service is any act or performance that

one party can offer to another that is
essentially intangible and does not
result in the ownership of anything. Its
production may or may not be tied to a
physical product.

Importance of Services
Contribution to GDP
Sector India USA
Agriculture 27 4
Manufacturing 22 24
Service 51 72

Service Mix
n Pure tangible good: Soap, toothpaste,
shampoo and other FMCG products. No
services accompany the product
n Tangible good with accompanying
service: Automobiles, white goods,
computers, engineering goods and others.
Many types of services are attached to them
n Hybrid: Offering includes equal parts of good
and services. Restaurants, cinema and others
Service Mix (cont.)
n Major service with accompanying minor goods
and services: Airlines, Railways, Bus and others.
The service requires a capital intensive good but the
primary item is a service
n Pure service: Banking, Insurance, Baby sitting,
management consultancy, teaching and others.
Offer primarily consists of a service
n Clients presence required: Surgery, beauty
treatment and others require client’s presence. Car
repair, banking and others may not require client’s
presence.

Type of Services
n Equipment based: Vending machine,
automated car washing and others
n People based: They could be skilled,
unskilled or professional. Driving, welding,
painting are in the first category, newspaper
delivery, waiter, window cleaning in the
second category and legal, medical
accounting in the third category.

Types of Services (cont.)
n Needs differentiation: Whether the needs
are Personal like hair cutting, beauty
treatment, health care or Business like
recruitment, advertising and others. Some
like banking, insurance can satisfy both types
of needs.
n Objectives: They could be Profit like
airlines, banking and others or Non-Profit
like social work (Rotary, Lions), NGO’s others.
It can also differ on the basis of Ownership
which could be private or public.
Characteristics of Services
n Intangibility: Services cannot be heard,
seen, tasted, felt or smelled before they are
bought. Service provider’s task is to Manage
Evidence and Tangibilize the
Intangibles. Marketing tools,
§ Place
§ People
§ Equipments
§ Communication material
§ Symbols
§ Price
(cont.)
n Inseparability: Services are typically

produced and consumed simultaneously
unlike for physical goods.
n Variability: The requirements of customers
as well as service providers can vary in
nature. For example, you can fly economy,
business class or first class on airlines. The
hospitals can provide general wards, special
and deluxe suites.

(cont.)
n Perishability: Services cannot be stored.

Strategies emerge in relation to Demand and
Supply conditions as explained below:
Demand side
n Differential pricing Non peak demand
n Complimentary services Reservation system
Supply side
n Part time employees Peak time efficiency
n Increase consumer participation Shared services
n Facilities for future expansion

Marketing Strategies for
Service Firms
Traditional marketing mix
n Product
n Price
n Place
n Promotion
Additional mix for services
n People
n Physical evidence
n Process

Marketing in Service
Industries
n Internal marketing: Between the

company and its employees
n Interactive marketing: Between
employees and customers
n External marketing: Between the
company and the customers

Service Quality Model
( Parasuraman, Zeithmal and Berry)
Five gaps that cause unsuccessful delivery

n Gap between consumer expectations and
management perception
n Gap between management perception and service
quality specification
n Gap between service quality specification and service
delivery
n Gap between service delivery and external
communication
n Gap between perceived service and expected service
Refer to the Service Quality Model

Determinants of Service
Quality
n Reliability
n Responsiveness
n Assurance
n Empathy
n Tangibles

Monitoring System
n Customer feedback
n Customer satisfiers
n Customer dissatisfiers
n Complaint handling system
n Customer relation ship management
n Internal marketing

Managing Productivity
Objectives are to keep costs down
and increase productivity.
Alternatives are,
n Skilful workers through better selection and training
n Handling more volume by giving less time to consumers
n Increased efficiency through automation, technology
n Reduce or make obsolete the need for a service through
products like wash & wear
n Design a more effective service like Para-legal, Para-medical
n Offer incentives to customers

Pricing decisions

Setting pricing policy
n Pricing objectives
n Market entry
n Price wars
n Profit maximization
• Determining demand
• Target customer
• Market size
• Price sensitivity
• Price elasticity of demand

Setting pricing policy (cont.)
n Estimating costs
• Fixed costs
• Variable costs
• Marginal costing
• Break even pricing
• Analyzing competitors’ costs, prices and
offers
• Pricing decisions
• In theory
• In practice

Price setting
n In theory
n Market penetration pricing
n Market skimming pricing
n Multi brand pricing
n Multi level pricing
n In practice
n Cost plus (Mark up pricing)
n Target return pricing
n Competitive parity pricing
n Demand oriented pricing
n Sealed bid pricing

Selecting the final price
n Target customer: AU, OEM, Reseller,
Government
n Geographical locations
n Payment terms
n Price discounts and allowances
n Invitation and incentives
n Responding to price changes by the
competitors

Market logistics

Market Logistics decisions
n Physical distribution
n Alternatives in physical distribution
n Warehousing
n Modes of transportation
n Inventory management
n Order processing
n Supply chain management

Channel decisions
n Why channels?
n Wider market coverage
n Generation of volumes and benefit of economies of
scale
n After sales service
n Promotion
n Financial assistance

Channel decisions (cont.)
n Channel flows
n Physical flows * Title flows
n Payment flows * Information flows
n Promotion flows
n Channel design
n Product characteristics
n Customer characteristics
n Competitive characteristics
n Organizational characteristics
n Competitive characteristics
n Environmental characteristics

Channel decisions (cont.)
n Channel levels
n Zero level: Direct marketing
n Multi level
n Selection of channel members
n Location
n Present line of business
n Financial resources
n Manpower resources
n Reputation
n Professionalization

Marketing communication
decisions

Communication decisions
n Communication objectives
n Target definition
n Type of products and services
n Stage in product lifecycle
n Communication tools
n Communication budgets and allocation
n Measuring the communication effectiveness

Communication objectives
n Awareness building
n Comprehension building
n Legitimacy
n Lead generation
n Trade enquiries
n Informing the changes in the marketing mix
n Image building
n Social cause
Target audience
n Consumers
n Customers
n Dealers
n Suppliers
n Shareholders
n Employees
n Society
Types of products
n Industrial products: OE, Components
n Consumer durables
n Consumer no-durables
n Services: Industrial, consumer
Stage in product life cycle
• Introduction
• Growth
• Maturity
• Decline

Communication tools
n Advertising: Using different media, media
cost paid by the sponsors
n Public relations: Press conference, annual
reports, newsletters, lobbying, sponsorship
n Sales promotion: Point of purchase, samples,
gifts, exhibitions, demonstrations
n Personal selling: Sales presentations sales
meetings
n Direct marketing: Telemarketing, mail order,e-
mail

Communication budgets
n Affordable method
n Percentage of sales method
n Competitive parity method
n Objective and task method

Advertising decisions
The five M’s of advertising

§ Mission
§ Money
§ Message
§ Media
§ Measurement

Mission
n Marketing objectives
n Sales objectives
n Corporate objectives
n Social objectives
n Any others

Money
n Stage in PLC
n Market share
n Consumer base
n Competition and clutter
n Advertising frequency
n Product substantiality
Message
n Message generation
n Message evaluation and selection
n Message execution
n Social, ethical and legal issues

Media
Criterion
• Reach, frequency and impact
• Major media types
• Specific media vehicle
• Media timing
• Geographical media allocation
Alternatives
• Print
• Audio
• Audio-visual
• Post
• Outdoor
• Internet

Measurement
n Communication impact
n Sales impact
n Tools
• Pre testing: Opinion research, portfolio test,
laboratory tests
• Post testing: Recognition test, recall test
(Aided/Unaided)

Sales promotion
n Purpose
• Invitation
• Incentive
§ Decisions
• Establishing objectives
• Selecting consumer promotion tools
• Selecting trade promotion tools
• Developing the program
• Pre testing
• Implementation and control

Public relations
n Press publicity
n Product publicity
n Corporate communication
n Lobbying
n Counseling
n Use of PR agencies

Direct marketing
n Suitability: No. of customers small, high unit
value, after sales service specialization
n Major channels
• Face to face selling
• Direct mail- post office
• Direct mail- Fax, e-mail, voice mail
§ Steps
• Creation of data base
• Creation of mail material

Sales force decisions

Designing the sales force
n Sales force objectives

n Sales force strategy
n Sales force structure
n Sales force size
n Sales force compensation

Managing the sales force
n Recruitment and selection

n Training
n Supervising
n Motivating
n Performance evaluation

Personal selling
n Characteristics of a successful sales

person
n Art of selling
n Communication skills
n Negotiation skills

Art of selling
n Use of SELL formula
S Salute
E Excite interest
L Let go
L Loop through

Marketing organization

Organizing the marketing
department
n Functional basis
n Territory basis
n Product basis
n End use basis
n Combination

INTERFACE OF MARKETING
WITH OTHER DEPARTMENTS
DEPARTMENT THEIR EMPHASIS MARKETING
EMPHASIS
R&D BASIC RESEARCH APPLIED RESEARCH

LONG LEAD TIME SHORT LEAD TIME
FEW MODELS MANY MODELS
INNOVATION IMMITATION
PRODUCTION LONG RUNS SHORT RUNS

STANDARD CUSTOM BUILT
AVG. QC STRICT QC

INTERFACE (CONTINUED)
PURCHASE FEW VENDORS SEVERAL
ECONOMIC LOT LARGE
STOCKING
PRICE FACTOR QUALITY
FACTOR
FINANCE STRICT BUDGETING FLEXIBLE

COST PLUS PRICING DEMAND
ORIENTED
STANDARD TERMS FLEXIBLE
TOUGH CREDIT EASY TERMS
TOUGH COLLECTION EASY
INTERFACE (CONTINUED)
n HRD
SELECTION BY HRD BY DEPT
STANDARD SALARY EXTRA
STANDARD PROMOTION EXTRA
LIMITED TARINING REGULAR
n LEGAL
WITHIN LAW SCANT
REGARD
ETHICAL NOT NECCESSARY

Section Five
Marketing control

Marketing control
n Annual plan control: Sales analysis, market share
analysis, marketing expense analysis, financial analysis
n Profitability control:Profitability by product, territory,
customer, segment, order size
n Efficiency control: Efficiency of sales force, advertising,
sales promotion, distribution
n Strategic control: Marketing effectiveness rating
instrument, marketing audit, marketing excellence
review, company ethical and social responsibility
review

Marketing audit
n Comprehensive, systematic, periodic,
independent review of,
n A company’s marketing environment,
planning, strategy, organization to,
n Identify the problem areas
n To improve the marketing performance
n And to improve the profitability

Components of a
marketing audit
n Marketing environment audit
n Marketing strategy audit
n Marketing organization audit
n Marketing systems audit
n Marketing productivity audit
n Marketing function audit

Use of marketing ratio
Marketing ratio = (Marketing expense/ Sales)x
100
APPLICATIONS
• Trend analysis
• Budgeting
• Comparison with major competitors
• Comparison with industry

Thank you

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MARKETING

DILIP M. SARWATE Ph. D. CMC

July- August 2005 Dilip M. Sarwate Ph.D. 1

July- August 2005 Dilip M. Sarwate Ph.D. 2

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July- August 2005 Dilip M. Sarwate Ph.D. 6

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July- August 2005 Dilip M. Sarwate Ph.D. 9

July- August 2005 Dilip M. Sarwate Ph.D. 10

PRODUCTION DOMINANT ALL FUNCTIONS EQUAL

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MARKETING IMPORTANT MARKETING MAJOR

July- August 2005 Dilip M. Sarwate Ph.D. 12

CUSTOMER CONTROL CUSTOMER FOCUS/INTEGRATED MARKETING

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n Three types of customers

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n Producer’s market: Industrial goods,

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n Identifies all types of markets

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n Single segment concentration

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n A service is any act or performance that