MARKETING MANAGEMENT

Key Takeaways

 Date: 6th August

 Marketing refers to activities a company undertakes

to promote the buying or selling of a product or service.
 Marketing includes advertising, selling, and delivering
products to consumers or other businesses.
 Marketing is the series of actions from market research to
post-delivery customer satisfaction.
 A brand is the image and personality of a product or service
that a business provides. A product’s features, such as logos
or slogans, make it unique and different.
 Date: 10th August

 3 Definitions of Marketing

 Marketing is an amalgamation of science and arts to create demand

for products.

 According to AMA(American Marketing Association) Marketing is

the activity, set of institutions, and processes for creating,

communicating, delivering, and exchanging offerings that have value

for customers, clients, partners, and society at large.

 According to Philip Kotler Marketing is a social and managerial

process by which individuals and groups obtain what they need and

want through creating and exchanging products and value with other”

 Define value

Value is the trade off between the benefit and cost.

 E.g The cost of local train ticket for a 50km journey is Rs10

Benefit: Time saving mode of transport.

 E.g Jimmy choo shoe or a rado watch

Benefit: Psychological Benefit

 Profiles in Marketing

 Sales Manager

 Sales Executive

 Brand Manager

 Brand Analyst

 Customer Relationship Manager

 Advertising Manager

 Digital Marketing Manager

 Regional Market Head

 Research Manager

 Need, want and demand help understand why a particular product or

service is needed.

 Sales is an important aspect of marketing and on-field experiences are

essential to understand the consumer.

 Date: 13th August

 Difference between marketing and selling is that marketing is

consumer centric and selling is product centric.

 Selling is the subset of marketing.

 Selling is an action which converts products into cash, but marketing

is the process of meeting and satisfying the customer needs.

 Factors affecting Marketing Enviornment

 Volatility

Rapid and unexpected challenges.

E.g Mobile Portability without change of number

 Uncertainty

Unclear about the present.

E.g club membership

 Complexity

Multiple key decision factors

 Ambiguity

Lack of clarity, lot of unknown

E.g Banning of chinese brands

 VUCA for VUCA

 Date: 17th August

 The micro marketing environment consists of certain forces that are

part of an organization marketing process, but remain external to the

organization.

 The Micro Environment consists of 4 different forces

public,suppliers,competitors,customers

 Macro Environment consists of 6 different forces.

Demographic, Economic, Political, Ecological, Socio-Cultural,

and Technological forces.

 PESTLE model deals with the external environment.

 Political Factors

 These are all about how and to what degree a government intervenes

in the economy. This can include government policy, political

stability or instability in overseas markets, foreign trade policy, tax

policy, labour law, environmental law, trade restrictions.

 Economic Factors

Economic factors have a significant impact on how an organisation does

business and also how profitable they are. Factors include economic
growth, interest rates, exchange rates, inflation, disposable income of

consumers and businesses

 Social Factors

Social factors include population trends such as the population growth

rate, age distribution, career attitudes, safety emphasis, health

consciousness, lifestyle attitudes and cultural barriers.

 Date: 20th August

 Environmental Factors

Environmental factors include ecological and environmental aspects such

as weather, climate, environmental offsets and climate change which may

especially affect industries such as tourism, farming, agriculture and

insurance.

 Technological Factors

Technological factors pertain to innovations in

technology that may affect the operations of the industry and the market

positively or negatively.

 Legal Factors

Legal factors include discrimination laws, antitrust laws,employment law

employment laws,consumer protection,copyright and patent laws.

Doblin’s 10 Types of Innovation

Doblin’s 10 Types of Innovation is a framework that can be used to

identify elements in business that can be innovated to remain or become

competitive in the business industry.

 CONFIGURATION : This category is all about what goes inside a

business and the systems which make the foundation of the business.
1. PROFIT : How is your business going to make money,is a question

that holds most importance for most business models.

Innovative profit models often challenges an industry’s tired old

assumptions about what to offer, what to charge, or how to collect

revenues

a) HUL - Sachets and small packs today cost a lot less than their large

counter-packs across FMCG categories such as shampoos, detergents,

tea, coffee and yes, even chocolates.For instance, HUL had launched

a sachet blitz across such power brands as Close-Up, Pepsodent,

Sunsilk, Ponds, Vaseline, Brooke Bond Taj Mahal and Bru to

increase product penetration at the bottom of the pyramid.

b) The New York Times - The New York Times pivoted from its

traditional ad-driven media model to digital user subscription.In 2019,

the company added more than 1 million net new digital-only

subscribers, reached an all-time high of 5.2M total subscribers, and

met it’s $800M digital revenue target a year earlier than expected.

c) UBER-In one of the more disruptive innovations in the last

decade,Uber's innovations in bringing ridesharing to the masses have

been not only to make it flexible, but to adjust the cost of a ride in real

time, based on local supply and demand. The ability to increase the
 cost of a ride according to demand makes the Uber price model quite

interesting, as Uber receives a share of the cost of every ride.

2. NETWORK : How you connect with others to create value.Companies

collaborate together for mutual interests which many times include

enhancing both businesses.

a) Mc Donald and Coke - Mc Donald's is Coke's largest restaurant

customer, and the two companies maintain a unique relationship.

Overall success McDonald's and Coca-Cola partnership have been a

great success ever since both companies decided to work together.

b) Uber & Spotify - Soundtrack for Your Ride

Music-streaming app Spotify partnered with ride-hailing app Uber to

create soundtrack for your ride. This is a great example of a co-branding

partnership between two very different products with very similar goals

to earn more users

c) Nike & Apple - Athletic brand Nike and technology giant Apple have

been working together since the early 2000s, when the first line of iPods

was released.
The co-branding partnership started as a way to bring music from Apple

to Nike customers' workouts using the power of technology: Nike+iPod

created fitness trackers and sneakers and clothing that tracked activity

while connecting people to their tunes.

3. STRUCTRE - Alignment of your talent and assets.

According to the framework, companies should structure their assets to

assess how these can be of more value, including intangible assets.

a) Whole Foods - The salaries and bonuses of every employee at Whole

Foods are available to be "looked up" by other employees. Co-founder

John Mackey instituted the program very early in the life of the company,

taking a stand to eliminate office politics and personal agendas in favor of

making goals visible and attainable.

b) Godrej - 100 leaders programme in godrej.

In this innovative initiative, top 100 employees are identified across the

organization having the leadership potential in them. These employees

are differentiated, trained and their careers are tracked for their grooming

in the leadership roles in future.

c) Flipkart - Flipkart has disbursed a fresh set of employee stock

ownership plan (Esops) to its senior and middle-level staff, multiple

people privy to the development.Such programmes tie the growth of the

firm with employees contribution towards it.

4. PROCESS- Process innovations are about using processes to create

company’s final offering in a way that makes the business stand above its

competitors.

Process innovation improves your efficiency via the reduction of cost of

production, increases the quality of product and boosts your profitability.

a) Toyota - Toyota has adapted the incremental innovation technique

and got a few of the innovative break-through in terms of

manufacturing cars. It has manufactured the most efficient hybrid car,

The Prius, which is very energy efficient and healthy for the

environment.

b) Zara - Zara is one of the greatest process innovation examples,

especially in terms of examples of innovation in the workplace.

Zara developed a successful strategy that allows it to rapidly design,

produce and distribute fashionable clothing to customers worldwide. It

has developed in-house capabilities in design, low-cost production,

supply chain optimisation and effective feedback loops to ensure that it

continually delivers great products to its customers.

c) SpaceX - A reusable spacecraft to avoid the expensive building of a

new craft for each mission.

SpaceX developed a plan for sustaining the lower-cost business

model over many years. To build a business for the long haul, SpaceX

wisely recognized it must embark on the complicated and risky task of

developing an entirely new rocket engine.

Developing new products and cutting costs each require an innovation

mindset.

 OFFERING

This category of innovations are focused on a company’s core

product/service or a collection of them.

1. PRODUCT PERFORMANCE

Product performance is concerned with product- and process innovation.

Creating new products or improved version of exisiting products that

increase their uses.

a) The Jaipur Foot - The Jaipur Foot hand-made artificial foot, is another

example of a successful product innovation. There are more than 5.5

million amputees in India, and most of them live below the poverty

line, thus not affording health care. The most important issue for these

people is then to be able to go back to work, which is essential for

their survival.

Therefore, the Jaipur Foot is a prosthesis that matches the active lifestyle

of the poor and allows squatting, sitting cross-legged, climb, working in

wet fields, and walking barefoot.

b ) Apple - Apple is a great example of innovation when it comes to

features, functionality, and design.An improvement of the performance of

the existing product, such as an increase in the digital camera

resolution,Water resistant of the iPhone 11 and apple watch

c ) Fitbit - In 2007 founders, Eric and James, realized that sensors and

wireless technology had advanced to a point where they could bring

amazing experiences to fitness and health.

Its products are activity trackers,smart watches,

wireless-enabled wearable technology devices that measure data such as

the number of steps walked, heart rate, quality of sleep, steps climbed,

and other personal metrics involved in fitness.

2. PRODUCT SYSTEM

How you create additional value by adding other firms’ products and

services to yours, or how you combine multiple products to create

significantly more value.

The goal of this element of the framework is to evaluate how products

and services can be combined.

a) Dell-Intel - A typical example of an International co- branding

exercise is when Dell computers or HPcomputers advertise with Intel .

Intel as a processor is known for its computing power and hence is

assumed to be far above the rest. Naturally, when Dell claims that it

has “Intel Inside” this benefits the brand tremendously.

On the other hand, Intel itself cannot keep advertising its processor

because the processor on its own does not serve any function.

It needs the whole computer to advertise. This is because Intel and

Dell when advertised alone, will have lesser advantages as compared

to when advertised together.

b) Sabyasachi and H&M - Designer Sabyasachi’s upcoming capsule

launch with H&M. With H&M, Sabyasachi found inroads into the

wardrobes of the young and aspirational consumer while H&M has

yet again partnered with an iconic designer, known for his dynamic

use of indigenous crafts and textiles, to bring something new for their

consumer and strengthen the bond with their fast-growing Indian

fanbase.

c) BMW I8 and Louis Vuitton - An excellent example of Brand equities

being developed due to Co branding was the recent tie up

between BMW I8 and Louis Vuitton. BMW I8 was a concept car by

BMW which was developed into a final product and was an ultra

premium luxury car. Because it was ultra premium, Louis vuitton

bags worth $20000 were given along with the BMW I8, thereby

building brand equity for both – BMW for its ultimate product and its

service of providing premium quality hand bags, Louis vuitton for the

excellent quality of hand bags it gave.

 EXPERIENCE

These innovations deal with the kind of experience the users have in

dealing with all the elements of the business that a customer interacts

with.

1. SERVICE

Service innovations ensure and enhance the utility, performance, and

apparent value of an offering. They make a product easier to try, use, and

enjoy; they reveal features and functionality customers might otherwise

overlook, and they fix problems and smooth rough patches in the

customer journey

a) Amazon - The world's largest internet retailer has mastered a

combination of value, satisfaction, and delivery efficiency that

consumers love.Infinite variety on one site without having to search

multiple brands and companies online.

Cash on delivery,return back policy are some of the service that amazon

provides to its customers for hassle free buying.

b) Ritz-Carlton - Ritz Carlton knows how to deliver outstanding customer

experience. In order to justify their premium prices, Ritz makes sure that

it’s customers receive painstakingly good and personalized service.

c)Apple-Apple has implemented a long term customer first strategy. The

aim is to build a genuine relationship with customers and

reduce customer churn.

For example, employees at an Apple store do not have sales targets.

Instead, they're trained to engage visitors and sell the A.P.P.L.E.

A: Approach customers with a personalized, warm welcome

P: Probe politely to understand the customer’s needs.

P: Present a solution for the customer to take home today.

L: Listen for and resolve issues or concerns

E: End with a fond farewell and an invitation to return

2. CHANNEL

Channel innovations encompass all the ways that you connect your

company’s offerings with your customers and users.

a ) Swiggy - The business model of Swiggy is based on a hyperlocal on

demand food delivery business operations.Working as a bridge between

restaurants and customers, swiggy utilizes an innovative technology that

works as a single point of contact.

b) BigBasket - BigBasket has effectively used unmatched customer

service with large variety of products using constant innovation using

technology.BigBasket has been implementing a Hyper-local strategy,

wherein, it has joined hands with more than 1,800 neighborhood grocery

stores across India to deliver goods within an hour.

c) Tesco - South Koreans have amongst the longest working hours in the

world, with young, upwardly mobile executives often too busy to go

shopping for grocery at a traditional store. The UK's giant retailer, Tesco,

sought to turn this disadvantage to its benefit. It introduced "virtual

stores", which are essentially a display of products on walls of metro

stations and bus stops. Commuters, especially the tech-savvy, ultra-busy

lot, could scan the QR codes of the products on display with their

smartphones, and place their orders even as they waited for their trains or

buses.
3. BRAND

Brand innovations help to ensure that customers and users recognize,

remember, and prefer your offerings to those of competitors or substitutes.

Great ones distill a “promise” that attracts buyers and conveys a distinct

identity.

a) Intel - Intel is a powerful brand, making a computer component so

valuable that having the “Intel Inside” on the box elevates the value

of the overall product.

b) Jimmy Choo - Jimmy choo accessories are iconic, luxurious, and not

to mention, expensive, but they have a massive following of their own,

being one of the most sought after shoe and bag labels in the world

c) Ferrero Rocher - Ferrero Rocher is a true symbol of Ferrero quality and

excellence. It offers a unique taste experience of contrasting layers. And

thanks to its golden wrapper and elegant paper cup, Ferrero Rocher is

even more distinctive and special. First introduced in 1982, Ferrero

Rocher is today the world leader in its category and represents “the

golden experience”of premium chocolate confectionery.

4. CUSTOMER ENGAGEMENT

How you understand and then leverage the desires and needs of your

customers

Customer Engagement innovations are all about understanding the

deep-seated aspirations of customers and users, and using those insights

to develop meaningful connections between them and your company.

a )Blizzard Entertainment, who makes World of Warcraft, is an expert at

customer engagement - understanding what makes users play for

hundreds of hours, and what drives them to collaborate and connect with

other users.

b)Cisco- Cisco with a massive digital transformation, Cisco has evolved

its products to cloud-based and subscription models to better match

customers needs. Cisco recently created a customer experience group

with 27K of its employees. That’s a bold move in the direction of

customer experience.

c ) Sephora - Sephora. The beauty brand uses technology to create a

personalized experience with a comprehensive app, virtual try-on of

makeup products and a strong online community for a seamless customer

experience.
 Date: 24th August

 Value chain analysis is the method for determining the critical path to

enhance customer value while reducing costs.

 Value chain analysis allows businesses to examine their activities and

find competitive opportunities.

 Primary activities are directly involved in generating value for your

customer.

 Inbound logistics mainly deals with the raw materials.

 Operations involves conversion of input to output.

 Outbound logistics deals with the transport and delivery of finished.

 Marketing and Sales deals with pricing, promotion, etc. of the

product.

 Service deals with installation, customer service,repairs, etc.

 Firm infrastructure is the management, planning, finance, etc.

 Human Resource Management deals with personal relations, work

life balance, recruiting, appraisals, etc.

 Procurement is putting together all the other factors apart from raw

materials.
 Date: 27th August

 Market Potential is the entire size of the market for a product at a

specific time.

 Market potential is usually measured either by sales value or sales

volume.

 Entire size of the market is market potential.

 Sales potential deals with a particular brand or Company

 Trend Analysis is popular tool for forecasting demand.

 It understands the previous data and spots a pattern.

 Date: 31st August

 B2B Marketing refers to the marketing of products or services to other businesses

and organizations.

 Examples of B2B Marketing are Apple and Intel,Ceat and Honda

 Characteristics of organizational markets are

 Fewer Buyers
 Large Purchases
 Supplier Relationship
 Geographic Concentration
 Derived Demand
 Inelastic Demand
 Fluctuating Demand
 Professional Purchasing
 Multiple Influencers

 Buying Roles

1) Consumer Purchases
 Initiator
 Influencer
 Decider
 Buyer
 User

2) Industrial Purchases
 Initiator
 Influencer
 Specifier
 Approver
 Decider
 Buyer
 User
 Gatekeeper
 Date: 3rd September

 Organizational buying and procurement process

 Problem Recognition
 Determination of characteristics
 Description of characteristics
 Search for sources
 Request for and analysis of proposals
 Evaluation and selection
 Selection of an order
 Evaluation of procedure

 Influences on organizational buying behavior

 Environmental Factors
 Organizational Factors
 Interpersonal Factors
 Personal

(These factors are interlinked and influence each other)

 Date: 7th September

 Consumer behavior is the study of individuals, groups, or organizations and all

the activities associated with the purchase, use and disposal of goods and services,
and how the consumer's emotions, attitudes and preferences affect buying
behavior.

 Discussed the 4 W’s and 1H

 What - (Need,Want)
 When - (When the customer is going to b
 Where - (Physical store,retail outlet,online)
 Why - (What do you look in while buying)
 How - (How the customer is going to buy)

Five step model of Consumer Behavior

 Need recognition - Problem identification e.g For back pain you need to get
balm/spray/gel
 Informative search - What gel/spray/balm can be used
 Evaluate alternatives - Evaluate various alternatives for e.g Vicks, Moov,
Relispray, Volini
 Purchase decision - To buy the volini spray
 Post purchase behavior - Satisfied with volini spray,suggesting volini spray to
others
 Date: 10th September

 Factors affecting consumer behavior

1. Cultural/Social Factors

 Culture
 Social class

2. Situational Factors

 Physical and social surrounding

 Timing
 Type of purchase
 Prior experience

3. Psychological Factors

 Self concept
 Motivations
 Perceptions
 Knowledge
 Beliefs/Attitudes

 It is really important for marketers to understand what prompts a consumer to

purchase a particular product and what stops him from buying.

 There are ideally two different ways which enable marketers to understand their
consumers.
 Primary Research
 Secondary Research
 Date: 14th September

STP Model

Position your
Segment
offering
your market
Target your
customers

 Market Segmentation
 Identify basis for segmentation
 Determine important characteristics of each market segment

 Market Targeting
 Evaluate potential and commercial attractiveness of each segment.
 Select one or more segments.

 Product Positioning
 Develop detailed product positioning for selected segments.
 Develop a marketing mix for each selected segment.

 Basis of Segmentation
 Geographic - Divide markets into different nations,countries,regions,states
 Demographic - Age,gender,family size,occupation,education,religion,race
 Psychographic - Divides buyers into different groups based on social
class,lifestyle,personality traits.
 Behavioral - Occasion,benefit,loyalty
 Geo-demographic - Multivariable segmentation that divides groups into
consumer lifestyle patterns
 Date: 17th September

 Requirements for Effective Segmentation

To be useful, a market segment must be

 Measurable
 Accessible
 Substantial
 Differentiable
 Actionable

 Benefits of Segmentation

 It helps in focusing strategies more sharply on target groups.

 It helps to know the demand pattern of the segment.
 Customers are benefited as the products that serve their interests are provided.

 Market Targeting Strategies

 Concentrated Marketing
 Differentiated Marketing
 Undifferentiated Marketing

 Positioning Ways
 Attribute
 Advantage
 Application
 User
 Competitive
 Category
 Quality/Price
 Date: 21st September

 Discussed the 4 Ps of marketing namely

 Product
 Price
 Place
 Promotion

 These are the four P’s, the product (the good or service); the price (what the
consumer pays); the place (the location where a product is marketed); and
promotion (the advertising).
 It is also called as Marketing mix
 The 4 P’s are used by companies to identify some key factors for their business,
including what consumers want from them, how their product or service meets or
fails to meet those needs, how their product or service is perceived in the world,
how they stand out from their competitors, and how they interact with their
customers.
 Date: 24th September

 Discussed the articles sent in order to help us understand the marketing mix.

 Titan has launched its new series of watches that will have Titan Pay for
contactless payments.
 The next ad was of Dabur comparing themselves with parachute in terms of price
and quantity, claiming that they are more affordable than parachute
 Apple launches the Apple Store online in India.The new online store will provide
customers with the same premium experience found in Apple store locations
around the world, delivered by online team members who are ready to offer their
expertise.
 Date: 28th September

Red Ocean Strategy Blue Ocean Strategy

Competitive Advantage Value Innovation
Segment existing customers Attract non-customers
Exploit existing demand Create and capture new demand
Beat the competition Make the competition irrelevant
E.g Pepsi,Coco-cola E.g Apple, Uber, Airbnb

 Future of Marketing
 AR based manuals e.g Ikea Manuals
 VR and AR will both be used by advertisers and marketers for short-form
storytelling for brands and companies
 With AR technology, advertising will no doubt become more integrated into our
daily lives. Advertising and marketing will utilize more real-time data based on
user preference to dynamically affect messaging, colors, avatars, timing and
placement.
 VR and AR will allow consumers to have more immersive experiences when
exploring new products or services.
 Brands and even small local businesses are using drones to physically reach and
astonish their customers. Drones can be simply, the new physical medium to
advertise a product or a brand to the public.