Marketing Management

Dr. Syed Azher Ali

Unit I - Comprehending Marketing
Management:
Marketing Management - Introduction, Evolution of Marketing,
Customer Value & Satisfaction, Introduction to basic concepts:
Marketing Mix; The buyer decision process - The marketing
environment – Analyzing Customers and Competition. Introduction
to Marketing Research.
Unit II - Segmentation, Targeting, &
Positioning:
Market Segmentation: Levels and patterns of market
segmentation, Bases for segmenting consumer and business
markets. Targeting: Importance of market targeting, Targeting
approaches. Positioning: Significance, Positioning variables and
approaches. Differentiation: Importance, dimensions of
differentiation and strategies. Recent trends in marketing.
Unit III - Marketing Mix Elements:
Product Concepts: Levels of Product, Classification of Products,
Product Life Cycle, Product Mix, New Product Development,
Branding, Labeling and Packaging. Price: Importance of Pricing –
Setting the Price, Initiating Price Change Pricing Techniques and
Strategies. Place: The role and functions of marketing
intermediaries, Channels for industrial and consumer products,
Channel Decisions in designing and managing channels. Promotion:
Managing integrated marketing communications, Promotion Mix.
Suggested Readings
1. Etzel, M. J., Walker, B.J., Stanton, W.J., & Pandit, A. (2020),
“Marketing – Concepts and Cases”, Tata McGraw Hill, New Delhi.

2. Kotler, P., Keller, K.L., Koshy, A., and Jha, M. (2019), “Marketing
Management – A South Asian Perspective”, Dorling Kindersley
(India) Pvt. Ltd., New Delhi.

3. Kotler, Philip (2020), "Marketing Management - Analysis, Planning,

Implementation and Control", Prentice Hall, Delhi.

4. Lamb, C.W., Hair, J. F., Mc Daniel C., "Marketing", Thomson Asia

Pte Ltd, Bangalore, 2016.
Marketing?
Introduction

“ Marketing deals with identifying and meeting human and social

needs”

“ Marketing is to identify consumer needs and wants, creating

products and satisfying them profitably.”

“ The process by which companies create value for customers

and build strong customer relationship in order to capture
value from customers in return”
“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.”

The American Marketing Association

Evolution of Marketing

 The Production Era: Products should be inexpensive and available

everywhere

 The Product Era: Quality, performance and innovative product

features.

 The Selling Era: Aggressive promotion as the key to success

 The Marketing Era: focus on making products that customers

wanted to buy.

 The Holistic Era: Kotler says, "everything matters."

What Is Marketed?

 Goods
 Services
 Events
 Experiences
 Persons
 Places
 Properties
 Organizations
 Information
 Ideas
Value and Satisfaction

 Value: The sum of the tangible and intangible benefits and costs.

 Value: A central marketing concept, is primarily a combination of

quality, service, and price (qsp)
 Satisfaction reflects a person’s judgment of a product’s perceived
performance in relationship to expectations.

 If performance falls short of expectations, the customer is

disappointed. If it matches expectations, the customer is satisfied.

 If it exceeds them, the customer is delighted.

Need, Want and Demand

 Needs are the basic human requirements such as for air, food,
water, clothing, and shelter.

 These needs become wants when directed to specific objects that

might satisfy the need.

 Demands are wants for specific product backed by an ability to pay.

1. Stated needs (The customer wants an inexpensive car.)

2. Real needs (The customer wants a car whose operating cost, not initial
price, is low.)

3. Unstated needs (The customer expects good service from the dealer.)

4. Delight needs (The customer would like the dealer to include an

onboard GPS system.)

5. Secret needs (The customer wants friends to see him or her as a savvy
consumer.)
Demand

1. Negative demand—Consumers dislike the product and may even

pay to avoid it.

2. Nonexistent demand—Consumers may be unaware of or

uninterested in the product.

3. Latent demand—Consumers may share a strong need that cannot

be satisfied by an existing product.

4. Declining demand—Consumers begin to buy the product less

frequently or not at all.
5. Irregular demand—Consumer purchases vary on a seasonal,

monthly, weekly, daily, or even hourly basis.

6. Full demand—Consumers are adequately buying all products put

into the marketplace.

7. Overfull demand—More consumers would like to buy the product

than can be satisfied.

8. Unwholesome demand—Consumers may be attracted to products

that have undesirable social consequences.
Market

 At its most basic level, a market is a collection of buyers and sellers.

 Market as a group of individuals or institutions that have similar

needs that can be met by a particular product.
 Consumer Markets Companies selling mass consumer goods and
services such as juices, cosmetics, athletic shoes, and air travel
establish a strong brand image by developing a superior product or
service, ensuring its availability, and backing it with engaging
communications and reliable performance.
 Business Markets Companies selling business goods and services
often face well-informed professional buyers skilled at evaluating
competitive offerings. Advertising and Web sites can play a role,
but the sales force, the price, and the seller’s reputation may play a
greater one.
 Global Markets Companies in the global marketplace navigate
cultural, language, legal, and political differences while deciding
which countries to enter, how to enter each (as exporter, licenser,
joint venture partner, contract manufacturer, or solo
manufacturer), how to adapt product and service features to each
country, how to set prices, and how to communicate in different
cultures.
 Nonprofit and Governmental Markets Companies selling to
nonprofit organizations with limited purchasing power such as
churches, universities, charitable organizations, and government
agencies need to price carefully. Much government purchasing
requires bids; buyers often focus on practical solutions and favor
the lowest bid, other things equal.
Marketing Mix
Services Marketing Mix
The Buyer Decision Process
The Consumer Decision Process
Stimulus
 Stimulus The thought, action, or motivation that incites a person to
consider a purchase.
 Commercial cue An event or motivation that provides a stimulus to
the consumer and is a promotional effort on the part of the
company.
 Social cue An event or motivation that provides a stimulus to the
consumer, obtained from the individual’s peer group or from
significant others.
 Physical cue A motivation, such as thirst, hunger, or another
biological cue that provides a stimulus to the consumer.
Problem Awareness
 Problem awareness The second phase of the prepurchase stage, in
which the consumer determines whether a need exists for the
product.
 Shortage The need for a product or service due to the consumer’s
not having that particular product or service.
 Unfulfilled desire The need for a product or service due to a
consumer’s dissatisfaction with a current product or service.
Information Search
 Information search The phase in the pre-purchase stage in which
the consumer collects information pertaining to possible
alternatives.
 Awareness set The set of alternatives of which a consumer is
aware.
 Evoked set Alternatives that the consumer actually remembers at
the time of decision making.
 Consideration set of the brands in the evoked set, those
considered unfit (e.g., too expensive, too far away, etc.) are
eliminated right away. The remaining alternatives are termed the
consideration set.
 Internal search A passive approach to gathering information in
which the consumer’s own memory is the main source of
information about a product.
 External search A proactive approach to gathering information in
which the consumer collects new information from sources outside
the consumer’s own experience.
Evaluation of Alternatives
 Evaluation of alternatives The phase of the prepurchase stage in
which the consumer places a value or “rank” on each alternative.
 Nonsystematic evaluation Choosing among alternatives in a
random fashion or by a “gut-level feeling” approach.
 Systematic evaluation Choosing among alternatives by using a set
of formalized steps to arrive at a decision.
 Linear compensatory approach A systematic model that proposes
that the consumer creates a global score for each brand by
multiplying the rating of the brand on each attribute by the
importance attached to the attribute and adding the scores
together.
Multiattribute Choice Model
Lexicographic Approach
 Lexicographic approach A systematic model that proposes that the
consumer make a decision by examining each attribute, starting
with the most important, to rule out alternatives.
1. A list of alternatives that are included in the consideration set.
2. The lists of attributes that consumers consider when making
purchase decisions.
3. The importance weights attached to each attribute.
4. Performance beliefs, reflected by ratings, associated with a
particular firm.
5. Performance beliefs, reflective by ratings, associated with the
competition.
Purchase

 Consumption process The activities of buying, using, and

disposing of a product.
Perceived Risk

1. Functional risk—The product does not perform to

expectations.

2. Physical risk—The product poses a threat to the physical well-

being or health of the user or others.

3. Financial risk—The product is not worth the price paid.

4. Social risk—The product results in embarrassment in front of
others.

5. Psychological risk—The product affects the mental well-being

of the user.

6. Time risk—The failure of the product results in an opportunity

cost of finding another satisfactory product.
Postpurhase Evaluation

 Cognitive Dissonance Doubt in the consumer’s mind

regarding the correctness of the purchase decision.
1. Hotels—Location, cleanliness, atmosphere, price

2.Mouthwash—Color, effectiveness, germ-killing capacity,

taste/flavor, price

3. Tires—Safety, tread life, ride quality, price

Marketing Environment

 The Task Environment - the company, suppliers, distributors,

dealers, and target customers

 The Broad Environment - demographic environment,

economic environment, social- cultural environment, natural
environment technological environment, and political-legal
environment.
The Demographic Environment

Worldwide Population Growth

 on July 1, 2012, was at 7,027,349,193, forecasted to rise to

8.82 billion by 2040 and exceed 9 billion by 2045.22
Population Age Mix

 In 1950, there were only 131 million people 65 and older; in

1995, their number had almost tripled to 371 million. By
2050, one of 10 people worldwide will be 65 or older

 Mexico and Italy

Educational Groups

 Illiterates, high school dropouts, Jr. college, college degrees,

and professional degrees.

 More than two-thirds of the world’s 793 million illiterate

adults are found in only eight countries (Bangladesh, China,
Egypt, Ethiopia, India, Indonesia, Nigeria, and Pakistan)
The Economic Environment

 Consumer Psychology

Identifying the more likely long-term scenario—especially for

the coveted 18- to 34-year-old group—would help marketers
decide how to spend their money
 Income Distribution
(1) very low incomes

(2) mostly low incomes

(3) very low, very high incomes

(4) low, medium, high incomes

(5) mostly medium incomes

The Sociocultural Environment

Views of ourselves: Some “pleasure seekers” chase fun,

change, and escape; others seek “self-realization.” Some
adopt more conservative behaviors and ambitions.
Views of others. People are concerned about the homeless,
crime and victims, and other social problems. At the same
time, they seek those like themselves for long-lasting
relationships, suggesting a growing market for social-support
products and services such as health clubs, cruises, and
religious activity as well as “social surrogates” like television,
video games, and social networking sites.
Views of organizations: After a wave of layoffs organizational
loyalty has declined. Companies need new ways to win back
consumer and employee confidence. They need to ensure
they are good corporate citizens and that their consumer
messages are honest.
Views of society: Some people defend society (preservers),
some run it (makers), some take what they can from it
(takers), some want to change it (changers), some are looking
for something deeper (seekers), and still others want to leave
it (escapers).
Views of nature: Business has responded to increased
awareness of nature’s fragility and finiteness by making more
green products, seeking their own new energy sources, and
reducing their environmental footprint. Companies are also
literally tapping into nature more by producing wider varieties
of camping, hiking, boating, and fishing gear such as boots,
tents, backpacks, and accessories.
The Natural Environment

 Shortage of Raw material

 Increased energy costs
 Anti pollution pressures
 Changing role of govt.
The Technological Environment

 Accelerating pace of change

 Unlimited opportunities for innovation
 Varying R&D budgets
 Increased regulation of technological change
The Political-Legal Environment

 Increase in business legislation

 Growth of special-interest groups
Thank You