2023

MARKETING
MANAGEMENT

Prepared By –
Dr Mukesh SIngh Tomar,
Associate Professor, Department of Management
Teerthanker Mahaveer Institute of Management and Technology (TMIMT),
Teerthanker Mahaveer University,
N.H.-24, Delhi Road, Moradabad - 244001, Uttar Pradesh
Mail ID- mukesh.management@tmu.ac.in
Voice Call - +91 9575854003
 UNIT- 1

MARKETING MANAGEMENT
KEY CONCEPTS


1.1 MARKETING MANAGEMENT: INTRODUCTION……………………………………………………………………………………………..…..…1
1.2 OBJECTIVES, ……………………………………………………………………………………….……………………………………………………..…….. 2
1.3 SCOPE, IMPORTANCE, NATURE OF MARKETING …………………….………………….……………………….………………………..……..5
1.4 TYPES OF MARKET, …………………………………………………………………………..……………………………………………………….………8
1.5 CORE CONCEPTS OF MARKETING………………………………………………………………………………………………………………………10
1.6 FUNCTIONS OF MARKETING, ………………………………………………………….…………………………………………………………………11
1.7 MARKETING ORIENTATIONS……………………………………………………….…………………………………………………………………….12
1.8 MARKETING ENVIRONMENT: INTRODUCTION, ……………………………..……………………..………………………………………......13
1.9 ENVIRONMENTAL SCANNING, ……………………………………………………………………….…………………………………………………13
1.10 TECHNIQUES OF ENVIRONMENT SCANNING, ………………………………..……………………………………………………………….14
1.11 ANALYZING THE ORGANIZATION’S MICRO ENVIRONMENT, ……………………………………………………………………………16
1.12 COMPANY’S MACRO ENVIRONMENT, ……………………………………………………………………………………………………………...16
1.13 DIFFERENCES BETWEEN MICRO AND MACRO ENVIRONMENT, ……………………….…………………………………………..…20
1.14 MARKETING PLANNING AND IMPLEMENTATION (6HRS) ……………………………………………………………………………….20
ASSIGNMENT QUESTIONS…....…………………………………….…………………………………………………………………………………….…….22

1.1 MARKETING MANAGEMENT: INTRODUCTION,
Marketing has its own origin in the fact that man is a creature of needs and wants. The need and wants
creates a state of discomfort in persons and they tend to get products that satisfy these needs and wants.
Marketing deals with identifying and meeting human and social needs. One of the shortest definitions of
marketing is “meeting needs profitably.” Marketing is an ancient art that has existed in society since time
immemorial and has become an important management function today in any business starting from
small scale cottage industry to the big MNC’s .

What is Marketing? (Definition)

To Prof Philip Kotler (2011) - “ as “the science and art of exploring, creating, and delivering value to
satisfy the needs of a target market at a profit. Marketing identifies unfulfilled needs and desires. It
defines, measures and quantifies the size of the identified market and the profit potential.

To Peter F Drucker -”Marketing is a process which converts a source; distinct knowledge into a
contribution of economic value in the market place. The purpose of the business is to create customer”

To American Marketing Association (AMA 2013) – “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.” (Approved July 2013)

What is Market? (Concept of Market)
The word marketing has been derived form the word market and the word market is a
derived of the Latin word marcatus meaning thereby merchandise. A market is a set of arrangement
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where both buyer and seller come in close contact with each other directly or indirectly; to sell or buy
goods and services or for a predetermined transaction.

Traditionally, a “market” was a physical place where
buyers and sellers gathered to exchange goods. Now
marketers view the sellers as the industry and the
buyers as the market. The sellers send goods and
services and communications (ads, direct mail, e-mail
messages) to the market; in return they receive
money and information (attitudes, sales data).
Market may be visible or nonvisible. The visible
form of market is known as marketplace i.e. a store, retail outlet, a vendor the non-visible form of
market is known as marketspace it is purely digital i.e. shopping in internet, e-tailing, e-commerce. The
metamarket, a concept proposed by Mohan Sawhney, describes a cluster of complementary products
and services that are closely related in the minds of consumers but are spread across a diverse set of
industries.

What is Marketing? (Definition)
To Prof Philip Kotler - “Marketing is a social managerial function by which an individual or a organization
obtains what they need and want through creating, offering and exchange of products and services of
value with others”
To Peter F Drucker -”Marketing is a process which converts a source; distinct knowledge into a
contribution of economic value in the market place. The purpose of the business is to create customer”
To American Marketing Association (AMA) – “the process of planning and executing the conception,
pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy
individual and organizational objectives.”

What is Marketing Management?

Dr Philip Kotler defines marketing as “the science and art of exploring, creating, and delivering value to
satisfy the needs of a target market at a profit. Marketing identifies unfulfilled needs and desires. It
defines measures and quantifies the size of the identified market and the profit potential. It pinpoints
which segments the company is capable of serving the best, and it designs and promotes the appropriate
products and services.”
American Marketing Association(AMA) – “It is the process of planning & executing the conception,
pricing, promotion & distribution of ideas, goods & services to create exchange that satisfy individual &
organizational goals”

1.2 OBJECTIVES OF MARKETING

Marketing objectives are goals set by business houses to promote its goods and services to its
consumers within a specific timeframe. Marketing objectives are the strategy’s set to attain the overall
growth of the organisation.
When it comes to a particular product, a company’s marketing strategy may include increasing product
awareness, providing information about product features, and reducing consumer resistance.

A marketing audit is performed, which lets a business firm establish its strengths, weaknesses,
opportunities, and goals, after which the organisation may redefine its objectives.

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The marketing objectives are significant as they assist us in realizing how effective we are and they help
us stay focused. Objectives are useful only if they are grounded and realistic.

Marketing objectives are short-term achievements to help achieve long-term goals, which are mostly set
on a weekly or a monthly timeline. These objectives should help a business analyze what a business wants
to achieve from its marketing strategy. As Tony Robbins says “setting goals is the first step in turning the
invisible into visible” It is not about setting unrealistic marketing goals you will never meet. The goals
have to eventually walk the talk. The process of setting goals gives a clear picture of what needs to be
accomplished and setting positive results. Marketing goals properly planned and executed are the
stepping stones to financial achievement.

TYPES OF MARKETING OBJECTIVES

Evaluating and considering the marketing plan is essential while determining your marketing objectives.
There are various types of marketing objectives, but the four main types are profitability+ objective,
market share objective, promotional objective, and growth objective.

PROFITABILITY OBJECTIVE

A profitability objective is a marketing objective that regulates the amount of expected income based on
the promotional strategy. Profitability is a business’s ability to earn a profit as an objective in doing
business. Businesses that are not financially profitable are likely to struggle, fail and ultimately close their
doors. Profitability defines an organisations ability to sustain a business. There are four profitability
objectives:

1. Net profit Margin
A business net profit margin tells how much a retailer makes after the business has paid its expenses,
salaries and taxes. This is displayed in ratio to net sales and shows how much a retailer is making for
every dollar of merchandise sold.

2. Asset turnover
Asset turnover is an equation that explains what a retailer can make annually for each dollar it invests in
the business assets. It involves taking retailers total sales and dividing it by total assets.

3. Return on assets
Return on assets is the equation formed when you divide a retailer’s net profit by his total assets.

4. Financial Leverage
Financial Leverage explains its use of debt in its overall capital structure. To determine this, divide total
assets by net worth.

PROFITABILITY GOALS
1. A common business goal is to run a profitable organisation, which typically means increasing
revenue limiting expenses.
2. The goal of a profitability objective could consist of increasing annual sales by 15 percent or
gaining five new accounts each month.
3. Return on assets shows the percentage of profits a company makes relative to its resources.

EXAMPLES OF PROFITABILITY
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1. An expense objective could involve finding a new operating facility that decreases the rent by
$2000 a month or cutting monthly phone and utility bills by 10 percent.
2. If a business has a net profit margin of 40 percent, they are making 40 cents for each dollar of
sales generated.
3. A retailer who has an asset turnover rate of 6.0 is earning $6 in sales for each dollar it invests in
assets.
4. A retailer with $20,000 in assets and a $3,500 in net income would have a return on assets of
1.75 percent.
5. At the end of 2016, Marcy had $15.53 billion in debt and $4.32 in equity, leaving it with a 3.59
score in financial leverage.

MARKET SHARE OBJECTIVE
A market share objective determines the percentage of market share an organisation aims to capture.
Increasing market share is one of the most important objectives of the business. The main advantage of
using market share as a measure of business performance is that it is less dependent on macro
environmental variables like the state of the economy or changes in tax policy.

GOALS OF MARKET SHARE OBJECTIVES
1. Increasing market share is the ultimate goal of any business. Market share growth is an
unavoidable objective of a comprehensive marketing plan.
2. Tracking the company’s rate of new customer acquisition is an effective way to gauge a
marketing plans contribution to growing market share.
EXAMPLES OF MARKET SHARE OBJECTIVE
1. A market share objective can be to achieve a market share of 25 percent for product ‘A’ within
three years of launch.
2. The objective could also be to increase the percentage of customers who rate services as
excellent from 75%to 80% within two years.

PROMOTIONAL OBJECTIVE
A promotional objective aims at promoting its goods and services. It is the desired level of awareness of
the product. The promotional objective is a part of the overarching strategy. Creating a brand identity
with imagery and punchlines is the first stage of a marketing campaign, followed by expanded messaging,
either through email or social media.
Promotional objectives need to be defined and planned. You should first decide what you want to
accomplish and then decide what you want to offer as incentives.

GOALS OF PROMOTIONAL OBJECTIVE
Increase business- The primary objective of business is to attract new customers. This can be done
through a variety of promotional actions like running targeted advertising campaigns, holding special
events, launching a social media blitz, etc. The objective is to reach potential new customers and give
them an incentive to encourage business.
Increase sales- Once the organisation has its set of clients, the next promotional activity is to increase
their spending, which means that the objective is to get customers to buy additional products or more
expensive products than the ones that initially brought them to business.
Encourage repeat business- This objective aims at converting one-time customers into regular
customers by providing special offers, notice of sales, special perks, and two for one offers designed to
keep them coming back.
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Brand awareness- Brand awareness is also one of the significant goals of marketing. This can be
accomplished in part by being consistent in all marketing messages and using inexpensive promotional
products.
New product Introduction- The objective of promoting a new product launch is to expand a company’s
reach into new markets, while still retaining its existing customer base.



EXAMPLES OF PROMOTIONAL OBJECTIVE
1. Using customer rewards cards that track what the customer purchases and generate coupons for
similar products.
2. Collecting customer contact information and putting the one-time buyers on a mail advertising
list.
3. Give away items such as fridge magnets, pens, cups with a company logo or image.
4. A cleaning company might introduce home repairs; the objective is to attract new customers
seeking home repair services while cross-selling existing customers who already use the
company for their cleaning needs.

GROWTH OBJECTIVE
A growth objective analyses the current business size and determines or plans the growth strategies to
achieve the desired amount of growth. Growth is an essential objective that contributes to increased
revenue. By developing business strategies focused on growth, companies can increase their market
share, realise sales efficiencies, and increase brand awareness, all of which translate to greater profits.

GOALS OF GROWTH OBJECTIVE
1. The goal of any enterprise is to grow your business operation. Goals which include decision
making in a firm so that it can narrow the gap between the present and projected earnings.
2. Competitive landscape- Some organisations aim at growth to react to changes in the
competitive landscape. Growth is a strategic objective that helps a company to position itself
better against its competitors.
3. Customer preferences and attitudes- Customers preferences and attitudes change regularly.
The goal of a growth objective of a company may be to react to those changes.

EXAMPLES OF GROWTH OBJECTIVE
1. If you own a franchise unit. The goal might be to open five more units within a five year period.
In such a case the objective includes exploring a new city every quarter or reducing your
franchise fees by fifteen percent for the next six months.
2. Providing better products or service than its competitors.
3. Maintaining or developing a strong market position for a specific product or in a particular
market where competition is high.
4. Companies seek to provide better services through economies of scale.
Marketing goals are not the same as marketing objectives. Marketing goals can be long-term and short-
term goals. Marketing goals should fit into your company’s financial objectives which can be expressed
in units sold, dollars, market share, sales, ROI on advertising expenditures, awareness, sales conversion
rates etc. Marketing goals are long-term achievements. Objectives are smaller steps within the marketing
goals. Marketing goals are about being realistic considering what can be achieved, how motivated you
are, the resources you have at your disposal. Motivation and capability are the keys to set realistic,
achievable goals.

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1.3 SCOPE OF MARKETING,

1.Product Design
2. Implementation of product
3. Pricing of product
4. Selection of Layout
5. Publicity of a Product
6. Distribution channel
7. selling of Product
8. Collecting the feedback

To know the scope of marketing we must understand what marketing is?, How it works? What
is marketed? Who does marketing?

What is Marketed?
Marketing people are involved in marketing 10 types of entities: goods, services, experiences,
events, persons, places, properties, organizations, information, and ideas.
Goods. Physical goods constitute the bulk of most countries’ production and marketing effort.
Services. As economies advance, a growing proportion of their activities are focused on the
production of services. Services include airlines, hotels, and maintenance and repair people, as
well as professionals such as accountants, lawyers, engineers, and doctors. Many market
offerings consist of a variable mix of goods and services.
Experiences. By orchestrating several services and goods, one can create, stage, and market
experiences.
Events. Marketers promote time-based events, such as the Olympics, trade shows, sports events,
and artistic performances.
Persons. Celebrity marketing has become a major business. Artists, musicians, CEOs, physicians,
high-profile lawyers and financiers, and other professionals draw help from celebrity marketers.
Places. Cities, states, regions, and nations compete to attract tourists, factories, company
headquarters, and new residents. Place marketers include economic development specialists,
real estate agents, commercial banks, local business associations, and advertising and public
relations agencies.
Properties are intangible rights of ownership of either real property (real estate) or financial
property (stocks and bonds). Properties are bought and sold, and this occasions a marketing
effort by real estate agents (for real estate) and investment companies and banks (for securities).
Organizations. Organizations actively work to build a strong, favourable image in the mind of
their publics. Philips, the Dutch electronics company, advertises with the tag line, “Let’s Make
Things Better.” Universities, museums, and performing arts organizations boost their public
images to compete more successfully for audiences and funds.
Information. The production, packaging, and distribution of information is one of society’s major
industries. Among the marketers of information are schools and universities; publishers of
encyclopedias, nonfiction books, and specialized magazines; makers of CDs; and Internet Web
sites.
Ideas. Every market offering has a basic idea at its core. In essence, products and services are
platforms for delivering some idea or benefit to satisfy a core need.

Who Markets?
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A marketer is someone who seeks a response as attention, purchase, a vote, a donation for
another party called prospect. If two parties are seeking to sell something to each other we call
both them as marketers.
Marketers are skilled in stimulating demand for a company’s products. Marketing management
has the task of influencing the level, timings and composition of demand in a way that will help
the organization to achieve its objectives.

1.3.2 IMPORTANCE OF MARKETING

o Marketing Is Helpful In Raising And Maintaining The Standard Of Living Of The
Community.
o Marketing as a Source of Income and Revenue.
o Marketing Helps in Transfer, Exchange and Movement of Goods.
o Marketing Is Helpful In Development Of An Economy.
o Marketing Acts as a Basis for Making Decisions.
o Marketing Acts as a Source of New Ideas.

Marketing is not only important for the producer, but also for the distributors and consumers. The
importance of marketing are as follows:
1. Marketing helps in distribution of products to the consumers in urban and rural areas. Proper
distribution ensures the food availability to the people. By ensuring smooth distribution of products,
marketing sector serves the dual purpose of satisfying both the producers’ and the consumers’ interests.
2. An efficient marketing system helps in preventing or minimizing the harvest and post-harvest losses
especially in case of perishable products like milk, fish etc. As the time gap between production and
consumption increases, the chances of spoilage also increase which may result in physical and
economic losses.
3. The production of commodities tends to increase along with the increase with demand in the market.
Thus, it supports a large production industry by tapping the opportunities in the market.
4. Effective marketing ensures revenue generation and provides reasonable profit to producers,
distributors, merchants etc. to make their livelihood.
5. Huge infrastructure has been created to meet the rising demand of consumers both at domestic as
well as international markets. Competitiveness has led to modernization of industries leading to large-
scale development in infrastructure. New facilities including buildings, machineries, equipments,
laboratories etc. were created with huge capital investment leading to industrial development.
6. Growth of production and distribution of goods has resulted in creation of large-scale employment
opportunities, which stimulate economic activity.
7. Marketing helps in creation of high quality products as a result of competitiveness in both domestic
and international markets. In modern marketing, consumers play a very dominant role. Many experts
have concluded that the ultimate objective of marketing is to attain consumer satisfaction. The producer
has to take into account consumer preference and incorporate suitable modifications in his/her
products. The increasing demand of goods also will be a temptation for producers to enhance
production.
8. Consumer awareness of quality has completely changed the marketing scenario and has made
products more competitive. The emphasis on quality and variety of products by consumers has led to
product diversification. Technological advancements and its application have resulted in introduction
of new products, especially value-added products in agriculture and fisheries sectors.
9. Marketing has led to substantial growth in exports and foreign exchange revenue. Due to the
development of international marketing, our country was able to achieve a high rate of export growth
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in terms of quantity and value. Due to technology development and adoption of modern marketing
strategies, we are now in a position to compete with any other country in the international market. India
is now exporting annually around 4 lakh tonnes of marine products fetching more than 8000 crores of
rupees.
10. Promotes substantial growth of National income. The creation of huge employment opportunities,
higher rate of production, increased revenue generation and foreign exchange earnings etc. have
substantially contributed to growth of national income. The total GDP contribution from the fisheries
sector amounts to about 1.5 per cent.
11. Vibrant marketing system enhances demand of goods and services and in turn results in high rate of
production.

1.3.3 NATURE OF MARKETING
1. Marketing is customer focused: marketing aims to satisfy the customer; thus, activities of marketing
must be directed and focused at the customer
2. Marketing must deliver to customer: marketers have to know customer needs and deliver the products
as per the requirements of customer. The business strategy must be aimed at developing and delivering
customer value than competitors. The customer value can be determined as follows
Customer Value = Benefits perceived and offered / Cost incurred
Benefit = Functional benefit + Emotional benefit
Cost = Monetary cost + Energy cost + Energy cost + Psychic cost
Value can be seen as primarily a combination of quality, service and price called the customer value triad
Customer Value = f (Price, Quality, Satisfaction)
3. Marketing is an interdisciplinary science: marketing as a social science has its origin from various
disciplines namely Economics, Law, Sociology, Psychology, and Anthropology. For this reason this also
termed as Cocktail science.
4. Marketing is customer need specific: marketing starts with identification of customer needs, wants and
requirements. These are turned into probable features that might satisfy the basic needs. Then the
portable form of the product is made out and presented before the customer for acceptance. The
customer suggests for changes or improvements in that and the final product is brought before the
customer.
5. Marketing is a key business: in marketing customer provides business and business seeks customer
the whole business revolves round the customer.
6. Marketing sub-systems affect company strategy: marketing has its own sub-system which interacts
with each other to form complete marketing system that is responsive to company marketing strategy.
7. Marketing is a part of total environment: the total environment of all resources and intuition which are
directly related to the production and distribution of goods, services, ideas, place and persons for the
satisfaction of human needs. It is important to look at external and internal environment of any marketing
organization.
8. Marketing results in mutually beneficial relationship: now-a-days marketing is everything that results
in the mutually beneficial relationships with the customer.

1.4 TYPES OF MARKET,
Markets are of various types and can be divided on various bases. Some of the basis on which, agricultural
markets can be classified are given below:
● Demographically
● Geographically
● Behavioural
● Psychological

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1.4.1 On the Basis of Location
On the basis of the place or location or operation, markets are of the following types:
a) Village markets: A market which is located in a small village, where major transactions take
place among the buyers and sellers of a village, is called a village market.
b) Primary wholesale markets: These markets are located in big towns near the centres of
production of agricultural commodities. In these markets, amajor part of the produce is brought for sale
by the producers-farmers themselves. Transactions in these markets usually take place between the
farmers and traders.
c) Secondary wholesale markets: These markets are located generally in district headquarters
or important trade centres or near railway junctions. The major transactions of commodities take place
between the village traders and wholesalers. The bulk of arrival in this market is from other markets.
d) Terminal markets: The terminal markets are those in which goods produced are finally either
sold to the consumers/processors or assembled for export. Such markets are located either in cities or
near sea ports.
e) Seaboard markets: These markets are located near seashore. These are mainly for
exports/imports. Such markets are Mumbai, Kolkata and Chennai.
1.4.2 On the Basis of Area
Area Covered On the basis of the area from which buyers and sellers usually come for transactions,
markets may be classified into the following four classes:
a) Local or village markets: This covers a village/local area. In this type of market the buying
and selling activities are confined among the buyers and sellers drawn from the same village or nearby
villages. The village markets exist mostly for perishable commodities in small lots, e.g., egg market, local
milk market or vegetable market.
b) Regional markets: Regional market is one in which buyers and sellers for a commodity are
drawn from a larger area than the local markets. Regional markets in India usually exist for food grains
such as Moga market for wheat.
c) National markets: A market in which buyers and sellers are at the. National level. National
markets are found for durable goods like spices, jute and tea.
d) World market: The buyers and sellers are drawn from the whole world. These are the biggest
markets from the area point of view. These markets exist in the commodities which have a worldwide
demand and/or supply, such as coffee, machinery, gold, silver, etc.
1.4.3 On the Basis of Time Span
The markets can be classified on the basis of the duration for which they work.
a) Short-period markets: The markets which are held only for a few hours are called short-
period markets. The highly perishable commodity/ products assemble at a place near village or city to
market the produce like fish, vegetables and in these markets, the prices of commodities are governed
mainly by the extent of demand for, rather than by the supply of, the commodity.
There are weekly markets in many places where all commodities including agricultural commodities are
sold at a particular day in a week.
b) Long-period markets: These markets are held for a longer period than the short-period
markets. The commodities traded in these markets are less perishable and can be stored for longer time.
These are food grains and oi1seeds. The prices are governed both by the supply and demand forces.
c) Secular markets: These markets are of a permanent nature. The commodities traded in these
markets are durable in nature and can be stored for many years. Examples are markets for machinery,
manufactured goods.
1.4.4 On the Basis of Volume of Transactions
The markets on the basis of volume of transactions at a time can be divided into two.

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a) Wholesale markets: A wholesale market is one in which commodities are bought and sold in
large quantities or in bulk. The farm produce from far off places is normally sold to wholesaler here.
However, transactions take place between traders also.
b) Retail markets: Transactions in these markets take place between retailers and final
consumers. The retailer purchase in wholesale market and sell in small lots to the consumers as per their
requirements. These markets are very near to the consumers.
1.4.5 On the Basis of Nature of Transactions
The markets can also be classified on the basis of nature of transaction. These markets are of two types
a) Spot or cash markets: A market in which goods are exchanged for money on the spot is called
the spot or cash market.
b) Forward markets: A market in which the purchase and sale of a commodity takes place at
time ‘t’ but the exchange of the commodity takes place on some specified date in future i.e., time t + 1.
Sometimes even on the specified date in the future (t + 1), there may not be any exchange of the
commodity. Instead, the difference in the purchase and sale prices are paid or taken.
1.4.6 On the Basis of Degree of Competition
The market can be classified on the basis of competition of exchange of commodity between buyers and
sellers. On the basis of competition, markets may be classified into the following categories:
Perfect Markets: A perfect market is one in which the following conditions are satisfied:
1) Large number of buyers and sellers exist.
2) All the buyers and sellers in the market have perfect knowledge of prices.
3) Prices of homogeneous goods at any time are uniform over a geographical area, plus or minus the cost
of getting supplies from surplus to deficit areas.
4) The prices are uniform at any place over periods of time, plus or minus the cost of storage from one
period to another.
5) The prices of different forms of a product are uniform, plus or minus the cost of converting the product
from one form to another.
6) There is free entry and exit of the buyers and sellers. Imperfect Markets: The markets in which perfect
competition conditions lack are characterized as imperfect markets. The following situations, each based
onthe degree of imperfection, are normally identified:
a) Monopoly market: Pure Monopoly is a market situation in which there is only one seller of a
commodity. He exercises sole control over the quantity or price of the commodity. In this market, the
price of a commodity is generally higher than in other markets. But when there is only one buyer of a
product, the market is termed as a Monopsony market.
b) Duopoly market: A duopoly market is one which has only two sellers of a commodity. They
mutually agree to charge a common price which is higher than the hypothetical price in a perfect market.
The market situation in which there are only two buyers of a commodity is known as the
duopsony market.
c) Oligopoly market: A market in which there are more than two but still a few sellers of a
commodity is termed as an oligopoly market. A market having a few (more than two) buyers is known as
oligopsony market.
d) Monopolistic competition: When a large number of sellers deal in heterogeneous or
differentiated form of a commodity, the situation is called monopolistic competition. The difference is
made conspicuous by different trade marks on the product. Different prices prevail for the same basic
product. Examples of monopolistic competition faced by farmers may be drawn from the input markets.
For example, they have to choose between various makes of insecticides, pump sets, fertilizers and
equipment.
1.4.7 Classification of the Market
on the Basis of Public Intervention Based on the extent of public intervention, markets may be placed in
anyone of the following two classes:
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a) Regulated markets: Markets in which business is done in accordance with the rules and
regulations framed by the statutory market organization. Standards, grades and charges in such markets
are fixed.
b) Unregulated markets: There are no official rules, regulation and public controls. The market
rules etc. are made by the private parties only, in these markets.

1.5 CORE CONCEPTS OF MARKETING AND MARKET
The marketing concept emphasizes the determination of the requirements of present and
potential customers and supplying products to satisfy their requirements. Remember, here we are not
trying to say that any one concept is better or worse. What is important to know is that various concepts
are applicable in different circumstances.
1. The Production Concept: The production concept, one of the oldest in business, holds that consumers
prefer products that are widely available and inexpensive. Managers of production-oriented businesses
concentrate on achieving high production efficiency, low costs, and mass distribution. This orientation
makes sense in developing countries, where consumers are more interested in obtaining the product than
in its features. This orientation has also been a key strategy of many Japanese companies.
2. The Product Concept: Other businesses are guided by the product concept, which holds that
consumers favour those products that offer the most quality, performance, or innovative features.
Managers in these organizations focus on making superior products and improving them over time,
assuming that buyers can appraise quality and performance. Product-oriented companies often design
their products with little or no customer input, trusting that their engineers can design exceptional
products. The product concept leads to “Marketing Myopia” a term coined by Prof Theodore Levitt of
Haward Business School. It is the shortsighted policies and practices of marketers without considering
the customers need into concern.
3. The Selling Concept: The selling concept, another common business orientation, holds that
consumers and businesses, if left alone, will ordinarily not buy enough of the organization’s products. The
organization must, therefore, undertake an aggressive selling and promotion effort. This concept
assumes that consumers must be persuading into buying, so the company has a battery of selling and
promotion tools to stimulate buying. The selling concept is practiced most aggressively with Unsought
goods—goods that buyers normally do not think of buying, such as insurance and funeral plots. The
selling concept is also practiced in the nonprofit area by fund-raisers, college admissions offices, and
political parties. Most firms practice the selling concept when they have overcapacity. Their aim is to sell
what they make rather than make what the market wants.
4. Marketing Concept: this concept emphasizes the determination of the requirements of potential
customers and supplying products to satisfy their requirements. The marketing concept holds that the
key to achieving organizational goals consists of the company being more effective than its competitors
in creating, delivering, and communicating customer value to its chosen target markets. Theodore Levitt
of Harvard drew a perceptive contrast between the selling and marketing concepts: “Selling focuses on
the needs of the seller; marketing on the needs of the buyer. Selling is preoccupied with the seller’s need
to convert his product into cash; marketing with the idea of satisfying the needs of the customer by means
of the product and the whole cluster of things associated with creating, delivering and finally consuming
it.” The marketing concept rests on four pillars: target market, customer needs, integrated marketing, and
profitability. It starts with a well-defined market, focuses on customer needs, coordinates activities that
affect customers, and produces profits by satisfying customers.
5. Societal Marketing Concept: which holds that the organization’s task is to determine the needs,
wants, and interests of target markets and to deliver the desired satisfactions more effectively and
efficiently than competitors in a way that preserves or enhances the consumer’s and the society’s well-
being. The societal marketing concept calls upon marketers to build social and ethical considerations into
their marketing practices. They must balance and cope with the often conflicting criteria of company
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profits, consumer want satisfaction, and public interest. Some companies practice a form of the societal
marketing concept called Cause marketing it implies marketing skills to effect social changes which would
benefit the individual and the society.

1.6 FUNCTION OF MARKETING
In most of the business enterprise, marketing department is set up the supervision of the
marketing manager. The major purpose of this department is to generate revenue for the business by
selling want satisfying goods and services to the customers. In order to achieve this purpose, marketing
manager has to perform the following function.
1. Marketing Research
2. Product Planning and Development
3. Buying and Assembling
4. Selling
5. Standardisation, Grading and Branding
6. Packaging
7. Storage
8. Transportation
9. Salesmanship
10. Advertising
11. Pricing
12. Financing

1.7 MARKETING ORIENTATIONS (1990)
Marketing management orientations are different marketing concepts that focus on various techniques
to create, produce and market products to customers.
The management usually focuses on designing strategies that will build profitable relationships with
target consumers. Marketing strategies are guided by philosophy Organizations use marketing
orientations as a basis for their marketing campaigns.

There are five main marketing management orientations which are as follows

1. The production concept
This is one of the oldest concepts in business. The concept holds the belief that consumers desire, favours
and prefer products at low prices which are affordable and available.
The production management needs to create products focusing on achieving high production efficiency,
low costs, and mass distribution as a marketing strategy.
2. The marketing concept
The marketing concept emerged in the mid-1950s as a customer-centered, sense-and respond
philosophy. The marketing concept holds that the key to achieving organizational goals is being more
effective than competitors in creating, delivering, and communicating superior customer value to the
target markets.
The job is to find the right products for customers, thus the market strategy focus on buyer’s needs and
producing what a company can sell.
Implementation of marketing concept focus on three main basic elements of marketing which are
customer orientation, company commitment and goal orientation.
3. The selling concept
The selling concept is based on the belief that consumers and businesses will not purchase products from
companies or won’t buy enough of the organization’s products without aggressive selling and
promotional efforts.
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The purpose of this concept is focusing on selling what the company creates rather than focusing on
making what the consumer wants (what the market wants) during implementation.
Managers usually focus on creating a comprehensive advertisement campaign to coax consumers into
purchasing their products.
4. The product concept
The product concept proposes that consumers favour products offering the most quality performance, or
innovative features. Implementation of the product concept focuses on producing superior products with
innovative features that are normally improved over time to meet the customer expectation.
5. The societal marketing concept
The societal marketing concept focuses on delivering value to customers in way of maintaining or
improving consumers and society wellbeing. It looks on the interests and needs of the targeted consumer
market. So there are three considerations underlying this concept which are Consumers satisfaction,
society’s welfare and company’s profit.

Importance of marketing management orientations
1. To meet customer needs more effectively.
2. To avoid strategic mistakes.
3. To uncover opportunities before competitors.
4. To achieve higher customer satisfaction.
5. To implement emerging technologies in the concept of marketing orientation.

1.8 MARKETING ENVIRONMENT: INTRODUCTION,
Marketing functions are to be carried out in a given environment. Even the marketing opportunity has to
be scanned and identified by carefully observing the environment. The marketing mix is also decided in
the context of a given marketing environment. Though marketing managers cannot control the forces in
a marketing environment, they must take them into account when making marketing decisions. While
formulating the marketing strategies, the marketers must closely observe the environment in which they
are functioning. In this unit, you will study the factors that constitute the marketing environment, and the
marketing environment in India. You will also study bow various Acts and Statutes influence the
marketing decisions in India.

1.9 ENVIRONMENTAL SCANNING-
Internal & External analysis of environment:
Organizational environment consists of both external and internal factors. Environment must be scanned
so as to determine development and forecasts of factors that will influence organizational success.
Environmental scanning refers to possession and utilization of information about occasions, patterns,
trends, and relationships within an organization’s internal and external environment. It helps the
managers to decide the future path of the organization. Scanning must identify the threats and
opportunities existing in the environment. While strategy formulation, an organization must take
advantage of the opportunities and minimize the threats. A threat for one organization may be an
opportunity for another.
Internal analysis of the environment is the first step of environment scanning. Organizations should
observe the internal organizational environment. This includes employee interaction with other
employees, employee interaction with management, manager interaction with other managers, and
management interaction with shareholders, access to natural resources, brand awareness, organizational
structure, main staff, operational potential, etc. Also, discussions, interviews, and surveys can be used to
assess the internal environment. Analysis of internal environment helps in identifying strengths and
weaknesses of an organization.

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As business becomes more competitive, and there are rapid changes in the external environment,
information from external environment adds crucial elements to the effectiveness of long-term plans. As
environment is dynamic, it becomes essential to identify competitors’ moves and actions. Organizations
have also to update the core competencies and internal environment as per external environment.
Environmental factors are infinite, hence, organization should be agile and vigile to accept and adjust to
the environmental changes. For instance - Monitoring might indicate that an original forecast of the prices
of the raw materials that are involved in the product are no more credible, which could imply the
requirement for more focused scanning, forecasting and analysis to create a more trustworthy prediction
about the input costs. In a similar manner, there can be changes in factors such as competitor’s activities,
technology, market tastes and preferences.

While in external analysis, three correlated environment should be studied and analyzed —
1- Immediate / industry environment
2- National environment
3- Broader socio-economic environment / macro-environment
Examining the industry environment needs an appraisal of the competitive structure of the organization’s
industry, including the competitive position of a particular organization and it’s main rivals. Also, an
assessment of the nature, stage, dynamics and history of the industry is essential. It also implies
evaluating the effect of globalization on competition within the industry. Analyzing the national
environment needs an appraisal of whether the national framework helps in achieving competitive
advantage in the globalized environment. Analysis of macro-environment includes exploring macro-
economic, social, government, legal, technological and international factors that may influence the
environment. The analysis of organization’s external environment reveals opportunities and threats for
an organization.
Strategic managers must not only recognize the present state of the environment and their industry but
also be able to predict its future positions.

1.10 TECHNIQUES OF ENVIRONMENT SCANNING
The external environment in which an organization exists consists of a bewildering variety of factors.
These factors are events, trends, issues and expectations of different interested groups. Events are
important and specific occurrences taking place in different environmental sectors.
Trends are the general tendencies or the courses of action along which events take place. Issues are the
current concerns that arise in response to events and trends. Expectations are the demands made by
interested groups in the light of their concern for issues. By monitoring the environment through
environmental scanning, an organization can consider the impact of the different eve trends, issues and
expectations on its strategic management process. Similarly any organization-facing environment as a
complex the scanning is absolutely essential, and strategists have to deal cautiously with process
environmental scanning.
The effort has to be to deal with it is such a manner that unnecessary time and effort is not expended,
while important facts are not ignored. For this to take place, it is important to devise an approach or a
combination of different approaches, to environmental scanning.

Approaches to Environmental Scanning:
The experts have suggested three approaches, which could be adopted for, sort out information for
environmental scanning.
1. Systematic Approach:
Under this approach, information for environmental scanning is collected systematically. Information
related to markets and customers, changes in legislation and regulations that have a direct impact on an
organization’s activities, government policy statements pertaining the organization’s business and
MARKETING MANAGEMENT / 15

industry, etc, could be collected continuous updating such information is necessary not only for strategic
management but also for operational activities.
2. Ad hoc Approach:
Using this approach, an organization may conduct special surveys and studies to deal with specific
environmental issues from time to time. Such studies may be conducted, for instance, when organization
has to undertake special projects, evaluate existing strategy or devise new strategies. Changes and
unforeseen developments may be investigated with regard to their impact on the organization.
3. Processed-form Approach:
For adopting this approach, the organization uses information in a processed form available from
different sources both inside and outside the organization. When an organization uses information
supplied by government agencies or private institutions, it uses secondary sources of data and the
information is available in processed form.
Sources of Information:
A company can obtain information from different sources, but it should be ensured that the information
is correct. The correct source should be tapped for specific information for more accuracy. Information
received form secondary sources may sometimes even misguide strategy managers.
Hence it is important that information should be verified for correctness before it is processed and
decisions are taken based on it.

The various sources from where information can be gathered include:
1. An internal document viz, files, records, management information system, employees, standards,
drawings, charts, etc.
2. Trade directories, journals, magazines, newspapers, books, newsletters, government publications,
annual reports of companies, case studies, etc.
3. Internet, television, radio news etc.
4. External agencies like customers, suppliers, inspection agencies, marketing intermediaries, dealers,
advertisers, associations, unions, government agencies, share holders, competitors, etc.
5. Market research reports, consultants, educational institutions, testing laboratories etc.
6. Spying considered as a powerful way of extracting information from other companies.
It is found that chronological order of information is also quite important for strategy managers. Usually
information received from government agencies is quite complex since processing takes more time. The
information received from competitors is quite expensive but it is usually fresh and is quite useful.

TECHNIQUES USED FOR ENVIRONMENTAL SCANNING:
The techniques used for environmental scanning may be either very systematic to intuitive. Selection of
a technique depends on data required, source of data, timelines of information, relevance, cost of
information, quantity, quality and availability of information, etc.
Some of the methods widely used can be categorized as follows: Scenario Writing, Simulation, Single
Variable Extrapolation, Morphological Analysis, Cross Impact Analysis, Field Force Analysis, Game
Theory, etc. The techniques are either statistical or mathematical in nature. However, judgmental and
institutive techniques are also widely used.

The entire process consists of following steps:
1. Major events and trends in environment are studied.
2. A cause and effect relationship established with regard to events and trends for long and short term.
This is done through brain storming in a group.
3. Diagrams showing interrelationships amongst various factors are prepared and an attempt is made to
quantify the results.

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4. The study is reviewed by a group of experts who deliberate on each aspect and on the possible
strategies that may be decided.

The following BENEFITS of environment scanning have been suggested by various authors:
● It creates an increased general awareness of environmental changes on the part, I of management.
I I o It guides with greater effectiveness in matters relating to Government. If
● It helps in marketing analysis.
● It suggests improvements in diversification and resource allocations.
● It helps firms to identify and capitalize upon opportunities rather than losing out to competitors.
● It provides a base of 'objective qualitative information' about the business environment that can
subsequently be of value of designing the strategies. ,
● It provides a continuing broad-based education for executives in general, and the strategists in
particular

1.11 & 1.12 WHAT IS MARKETING ENVIRONMENT?
Marketing activities are influenced by several factors inside and outside a business. These factors or
forces influencing marketing decision making are collectively called marketing environment. It comprises
all those forces which have an impact on market and marketing efforts of the enterprise. According to
Philip Kotler, marketing environment refers to "external factors and forces that affect the company's
ability to develop and maintain successful transactions and relationships with its target customers." For
example, the relevant environment to a car tyre manufacturer may be the car manufacturers and buyers,
the tyre manufacturing technology, the tax structure, imports and export regulations, the distributors,
dealers, competitors, etc. In addition to these, the company may have to consider its internal environment
interims of Finance, Purchasing, Accounting, Manufacturing Technology, R&D. Top Management, etc.
However, this internal environment is controllable to a large extent. The external environment becomes
important due to the fact that it is changing and there is uncertainty. Most of these external environmental
factors are uncontrollable. There is both a threat and opportunity in these changes.

The external marketing environment may be broadly divided into two parts:
1) Micro environment
2) Macro environment
Micro Environment refers to the company's immediate environment, that is, those environmental factors
that are in its proximity. They include the company's own capabilities to produce and serve the consumer
needs, the dealers and distributors, the competitors, and the customers. These are also the groups of
people who affect the company's prospects directly.
Macro Environment refers to those factors which are external forces in the company's activities and do
not concern the immediate environment. Macro environment are uncontrollable factors which indirectly
affect the concern's ability to operate in the market effectively.
These include demographic, economic, natural, technological, political and culture forces. The influence
of these factors are indirect and often take time to reach the company. Look at Figure carefully which
presents these forces.
MARKETING MANAGEMENT / 17

Micro Environment
Micro environmental factors while influence the marketing decisions of the company
are: i) organisation's internal environment, ii) suppliers, iii) marketing intermediaries, iv)
competitors, and v) consumers.
Let us now study about each of these factors briefly.
Organisation's Internal Environment:
Organisation's financial, production and human resource capabilities influence its marketing decisions to
a large extent. For instance, while deciding about the sales targets, it is necessary to see whether title
existing production facilities are enough to produce the additional quantities or not. If the existing
facilities are not enough and expansion to plant and machinery is required, it is necessary to think about
financial capabilities.
Suppliers:
For production of goods or services, ‘you require a variety of inputs. The individuals or firms who supply
such inputs are called suppliers. Success of the marketing organisation depends upon the smooth and
continuous supply of inputs in required quantities on reasonable terms. Hence suppliers assume
importance. The timely supplies of specified quality and quantity makes the producer to keep up the
delivery schedule and the quality of the final product. The dependence on the supplier is laterally more
when the number of suppliers is more. During periods of shortages, sole suppliers may not supply
materials on favourable terms. Each supplier may negotiate his own terms and conditions, depending
upon the competitive position of his firm. Some suppliers, for example, expect payment in advance, and
goods are supplied on the basis of a waiting list, whereas others may be ready to supply on credit basis.
Intermediaries:
Normally, it is not possible for all the producers to sell their goods or services directly to the consumers.
Producers use the services of a number of intermediaries to move their products to the consumers. The
dealers and distributors, in other words the marketing intermediaries, may or may not be willing to
extend their cooperation. These persons normally prefer will established brands.
Newcomers may find it extremely difficult to find a willing dealer to stock his goods. From newcomers
they may demand favourable terms by way of discount, credit, etc., and the producer may find it difficult
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to satisfy them. There are also other intermediaries like transport organisations, warehousing agencies,
etc., who assist in physical distribution. Their cost of service, accessibility, safe and fast delivery, etc., often
influence the marketing activities.
Competitors:
Competitors pose competition. Competitors' strategies also affect the marketing decisions. Apart from
competition on the price factor, there are, other forms of competition like production differentiation.
There are also competitors who use brand name, dealer network, or close substitute products as the focal
point. Their advertising may present several real or false attributes of their product. If one advertises that
his product has an imported technology, the other may say that he is already exporting his product.
Competitor’s strategies sometimes may change an opportunity in the environment into a challenge.
Customers:
There are many types of customers. A firm may be selling directly to the ultimate users, the resellers, the
industries, the Government or international buyers. It may be selling to any one or all of these customers.
Each type of consumer market has certain unique characteristics and the marketer should be fully
acquainted with the art of persuading and selling to these consumers. The environment presented by
customer profile will have a direct influence on these marketing activities.
The population also certain the potential consumers of the company's product. It may not be easier to
identify the persons who are likely to become the customers of a company. The goodwill built-up by a
company sometimes influences the consumers to become the customers of a company. Companies
generally try to build good public relations and create a favourable attitude among the people or groups
of people. Government and consumer action groups are special categories with whom a negative attitude
is to be avoided. Thus, the public also constitute an element in the environment.

Macro Environment:
The macro environmental factors that exert influence on an organisation's marketing system are: I)
physical environment, 2) technological environment, 3) political and legal environment, 4) economic
environment, 5) demographic environment, and 6) social cultural environment.
Let us discuss about these factors in a little more detail.
Physical Environment
The earth's natural renewable resources (e.g. forest, food products from agriculture, etc.) and finite non-
renewable resources (e.g., oil, coal, minerals, etc.), weather (climatic) conditions, landscapes and water
resources are components of an environment which quite often change the level and type of resources
available to a marketer for his production. For example, India does not have enough petroleum resources,
and imports petrol and other products. Recently, the Gulf War drastically affected the supply of petrol
and diesel in the country. This had lot of implications for the companies consuming petro-products.
Technological Environment
Technology is shaping the destiny of the people. The revolution in computers, electronics and
communication in general may make one's production out of tune with the current products and services.
For example, new printing technology like Insel. printing and desk top publishing, has already made the
labour-intensive type-set printing uneconomical.
Political and Legal Environment
Political changes bring ill new policies and laws relevant to industry. Government regulation continues
wit11 different intensities and the law and the rules framed there under are becoming complex. Many
areas of business are brought under one law Marketing Environment or the other, and the marketer
cannot escape from the influence of these laws.

The tax laws for example, the sales tax. excise duty, income-tax, etc., have direct bearing on the costs and
prices of the products and services marketed. So also the policies relater to imports and exports. Since
MARKETING MANAGEMENT / 19

these factors affect all the units, (they do not affect a single marketer alone), these are considered as the
forces in the macro environment.
Economic Environment
Under economic environment, a marketing manager generally studies the following factors and trends:
i) Trends in gross national product and real income growth;
ii) Pattern of income distribution;
iii) Variations in geographical income distribution and its trends;
iv) Expenditure pattern and trends.
v) Trends of consumer savings and how consumers like to hold their savings, i.e., either in the form of
bank account, investments in bonds arid securities; purchase of real estate, insurance policies, or any
other assets;
vi) Borrowing pattern, trends and governmental and legal restrictions; and
vii) Major economic variables, e.g., cost of living, interest rates, repayment terms,
disposable income, etc.
These factors determine the purchasing power, along with savings and credit availability. Study and
knowledge of economic forces is essential for preparing effective marketing plans. No firm is immune to
economic forces alternative some are less variable than others. Anticipation of future economic
conditions will enable the firm to devise appropriate marketing strategies.
Marketing organisations are susceptible to economic conditions, both directly and through the medium
of market place. Economic conditions affect marketing directly because such organisations are
themselves a part of market place. For instance, the cost of inputs positively respond to upward swing of
economic condition. This will affect the output price and consequently affect the sales. The effect on
Market place (consumers) also influences the marketing through changes in consumer habits. 'This is an
indirect influence. For example, in the event of spiralling prices, consumers often curtail or postpone their
expenditures for luxury products. Conversely, during times of relative affluence, consumers are much
less conscious of small price differences and would buy luxury products.
Demographic Environment
Marketers are keenly interested in the demographic characteristics such as the size of the population, its
geographical distribution, density, mobility trends, age distribution, birth rate, death rate, the religious
composition, etc. The changing life styles, habits and tastes of the population, have potentials for the
marketer to explore. For example, when both husband and wife go for jobs, the demand for gadgets that
make louse keeping easier and the semi-cooked food products increase.
Socio-Cultural environment
There are core cultural values which are found stable and deep rooted, and hence change very little. There
are also secondary cultural values which are susceptible to fast changes. Some of them like hair styles,
clothing, etc. just fade. Even in a given culture, the entire population may not adopt the changes. There
are different degrees with which people adopt them. Religion is also an important co~nponent of culture
which has implications for the marketer. For example, Hindus worship the cow and do not eat beef. So
the products made out of beef meat do not have demand. Thus, the culture of the society influences the
consumption pattern to a certain extent. Culture also pervades other human activities by determining
their values and beliefs.




1.13 DIFFERENCES BETWEEN MICRO AND MACRO ENVIRONMENT –

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1.14 MARKETING PLANNING AND IMPLEMENTATION

Question : Define the term 'marketing planning'. Outline the steps involved in marketing planning
process.

Marketing is a process of developing and implementing plans to identify and satisfy customer needs and
wants with the objective of customer satisfaction and profits making. The main elements of marketing
planning are - market research to identify and anticipate customer needs and wants; and planning of
appropriate marketing mix to meet market requirements/demands.

Definition of Marketing Planning
"Marketing Planning is the process of developing marketing plan incorporating overall marketing
objectives, strategies, and programs of actions designed to achieve these objectives."

Marketing Planning involves setting objectives and targets, and communicating these targets to people
responsible to achieve them. It also involves careful examination of all strategic issues, including the
business environment, the market itself, the corporate mission statement, competitors, and
organisational capabilities.

Marketing Planning Process
Marketing planning process is a series of stages that are usually followed in a sequence. Organisations
can adapt their marketing plan to suit the circumstances and their requirements. Marketing planning
process involves both the development of objectives and specifications for how to achieve the objectives.
Following are the steps involved in a marketing plan.
1) Mission
Mission is the reason for which an organisation exists. Mission statement is a straightforward statement
that shows why an organisation is in business, provides basic guidelines for further planning, and
establishes broad parameters for the future. Many of the useful mission statements motivates staff and
customers.

2) Corporate Objectives
MARKETING MANAGEMENT / 21

Objectives are the set of goals to be achieved within a specified period of time. Corporate objectives are
most important goals the organisation as a whole wishes to achieve within a specified period of time, say
one or five years.
All the departments of an organisation including marketing department works in harmony to achieve the
corporate objectives of the organisation. Marketing department must appreciate the corporate objectives
and ensure its actions and decisions support the overall objectives of the organisation.
Mission statement and corporate objectives are determined by the top level management (including
Board of Directors) of the organisation. The rest of the steps of marketing planning process are performed
by marketing department. All the actions and decisions of the marketing department must be directed to
achieve organisation mission and its corporate objectives.
3) Marketing Audit
Marketing audit helps in analysing and evaluating the marketing strategies, activities, problems, goals,
and results. Marketing audit is done to check all the aspects of business directly related to marketing
department. It is done not only at the beginning of the marketing planning process but, also at a series of
points during the implementation of plan. The marketing audit clarifies opportunities and threats, so that
required alterations can be done to the plan if necessary.
4) SWOT Analysis
The information gathered through the marketing audit process is used in development of SWOT Analysis.
It is a look at organisation's marketing efforts, and its strengths, weaknesses, opportunities, and threats
related to marketing functions.
Strengths and Weaknesses are factors inside the organisation that can be controlled by the organisation.
USP of a product can be the example of strength, whereas lack of innovation can be the example of
weakness.
Opportunities and Threats are factors outside the organisation which are beyond the direct control of an
organisation. Festive season can be an example of opportunity to make maximum sales, whereas
increasing FDI in a nation can be the example of threat to domestic players of that nation.
5) Marketing Assumptions
A good marketing plan is based on deep customer understanding and knowledge, but it is not possible to
know everything about the customer, so lot of different things are assumed about customer.
For example :-Target Buyer Assumptions - assumptions about who the target buyers are.
Messaging/Offering Assumptions - assumptions about what customers think are the most important
features of product to be offered.
6) Marketing Objectives and Strategies
After identification of opportunities and challenges, the next step is to develop marketing objectives that
indicate the end state to achieve. Marketing objective reflects what an organisation can accomplish
through marketing in the coming years.
Objective identify the end point to achieve. Marketing strategies are formed to achieve the marketing
objectives. Marketing strategies are formed to determine how to achieve those end points. Strategies are
broad statements of activities to be performed to achieve those end points.
7) Forecast the Expected Results
Marketing managers have to forecast the expected results. They have to project the future numbers,
characteristics, and trends in the target market. Without proper forecasting, the marketing plan could
have unrealistic goals or fall short on what is promised to deliver.
Forecasting Customer Response - Marketing managers have to forecast the response that the average
customers will have to marketing efforts. Without some idea how the marketing will be received,
managers can't accurately plan the promotions.
Forecasting Marketing cost - To make the marketing plan stronger, accurate forecast of marketing cost
is required to be done.

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Forecasting the Market - To accurately forecast the market, marketing managers have to gain an
intimate understanding of customers, their buying behaviour, and tendencies.
Forecasting the Competition - Forecast of competition like - what they market, how they market, what
incentives they use in their marketing can help to counter what they are doing.
8) Create Alternative Plan
A alternate marketing plan is created and kept ready to be implement at the place of primary marketing
plan if the whole or some part of the primary marketing plan is dropped.
9) Marketing Budget
The marketing budget is the process of documenting the expected costs of the proposed marketing plan.
One common method to allocate marketing budgeting is based on a percentage of revenue. Other
methods are - comparative, all you can afford, and task method.
10) Implementation and Evaluation
At this stage the marketing team is ready to actually start putting their plans into action. This may involve
spending money on advertising, launching new products, interacting with potential new customers,
opening new retail outlets etc.

The marketing planning process is required to be evaluated and updated regular. Regular evaluation of
marketing efforts helps in achieving marketing goals.

1.15 ASSIGNMENT QUESTIONS

1. Define marketing and explain its implications. Explain how marketing is different from selling.
2. What are the marketing concepts? Explain the process of evolution of these concepts.
3. Describe the profile of an organization which has adopted the marketing concept.
4. Explain the importance and features of marketing in a developing economy.
5. What are the key dimensions of marketing? Discuss.
6. Knowledge of marketing makes you a more sophisticated customer. Discuss in the light of your
experience.
7. “Marketing has evolved through a period of time”. Discuss.
8. “Marketing improves the standard of living of the society”. Discuss.
9. “The aim of marketing is not to sell but to create a pool of lifetime profitable customers”. Discuss.
10. What suggestions can you give to modern marketers?