What is your understanding of

Marketing Management
 Understanding Marketing Management

 Critical role of Marketing in Organizations and Society

 Core concepts of marketing

 Company orientation towards market place

 Marketing Plan -4P's / 4A's of Marketing

 Marketing Management Tasks

Critical role of Marketing in Organizations
and Society

 Value of Marketing -there must be a top line for there to be a bottom

line.
 Eg. Unilever "Crafting brands for life" to reduce ecological footprints to
half in 10 years. Focusing on D&E Markets (Developing & Emerging)
and recession-hit developed markets like Spain and Greece. Unilever is
owner of Brands like Dove, Lifebuoy, Knorr.
 CMO on equal footing as CFO/COO/CIO/CTO
 Changing times require businesses to adapt. Eg. American Express
Small Business Saturday, BMW Web-only campaign (article)
 " For any business enterprise, there are two - and only two -basic
functions: marketing and innovation…These two produce results; all the
rest are costs."- Peter Drucker

 Assignment: https://hbr.org/2012/06/captain-planet# (Unilever CEO Paul

Polman interview)
 What is Marketing &
Marketing Management
 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.

 Marketing is "meeting needs profitably".

 Eg.Google- need to more effectively and efficiently access

information on the internet, it created a powerful search engine
that organized and prioritized queries

 Marketing management is 'the art and science of choosing target

markets and getting, keeping, and growing customers through
creating, delivering, and communicating superior customer value'

 Customer-Consumer-Client-Partner
Customer / Consumer / Client / Partner
Customer Consumer
Definition
Customer is the one who is purchasing Consumer is the one who is the end user of
the goods. any goods or services.
Ability to resell
Customer can purchase the good and Consumers are unable to resell any product or
is able to resell service.
Need for purchase
Customers need to purchase a product For a consumer purchasing a product or
or service in order to use it. service is not essential.
Motive of buying
The motive of buying is either for The motive of buying is only for consumption
resale or for consumption
Is payment necessary
Must be paid by customer May or may not be paid by the consumer
Target group
Individual or Company Individual, family or group

Client : Clients is similar to Consumer. Businesses that provide

Services rather than products call their customers as Clients.
Partner : Partner works together with Marketer for mutual
benefits. Eg. Dealers / Distributors etc. The customer / client pay
for a Product / Service.
 What is Marketing

 A Marketer is someone who seeks a response from another

party called the Prospect.

 Marketers market ten main types of entities - goods, services,

events, experiences, persons, places, properties, organizations,
information & ideas.

Market definition

 Traditionally -physical place where buyer & seller gathered to

buy & sell goods

 In Marketing terms - market is customer groups or target market

(need market, demographic market, geographic market etc)

 Is Marketing the art of selling products! - Discuss

Five Basic Markets
 A Simple Marketing System

 Marketers view sellers as industry and use the term market to

describe customer groups

 Inner loop shows an exchange of money for goods / services and

outer loop shows an exchange of information
 Core Concepts of Marketing

Needs, Wants & Demands

 Needs - Basic human requirements - Air, Food, Water, Clothing,

Shelter, Recreation, Education & Entertainment

 Wants - Needs become wants when directed to specific objects that

might satisfy the need

 Demands -are Wants for specific products backed by an ability to

pay.

 Many people want a Mercedes, but only a few can buy.

 Eg. Food -Chinese food - Mainland China

 Needs, Wants and Demand

 "Marketers get people to buy things they don't want!"-Discuss

 Core Concepts of Marketing
Needs, Wants & Demands

• Some customers have needs of which they are not fully conscious -
Five types of needs -stated, real, unstated, delight, secret needs

 Example:
1. Stated needs - A customer wants an inexpensive car
2. Real needs - The customer wants a car whose operating cost is low,
not initial price
3. Unstated needs - The customer expects good service from the
dealer
4. Delight needs - The customer would like the dealer to include a
GPS / Additional accessories at no additional cost
5. Secret needs - The customers wants to be seen by his friends /
relatives as a savvy customer

• Only responding to stated need is not being fair to the customer

MASLOW'S HIERARCHY OF NEEDS
MASLOW'S HIERARCHY OF NEEDS &
MARKETING APPLICATIONS
 Core Concepts of Marketing

Segmentation, Target Markets & Positioning (STP)

• Segmentation- Not everyone likes the same food, movie, clothing,

vacation, university (demographic, psychographic and behavioral
differences) hence segmentation

• Target market - segment(s) presenting greatest opportunities

• Positioning - For each of the above target markets, the firm develops
a market offering that it positions in buyers' minds as delivering some
key benefits.

 Eg. Volvo - customer need safety - positioned as safest car

 Eg. Porsche - targets customers who need pleasure / excitement
C

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 Core Concepts of Marketing

Value Proposition, Offerings and Brands

• Value Proposition - intangible / promise by a brand - set of

features / benefits that satisfy customer needs.
 Eg. Nike's value proposition is innovation, customization and
brand/ status.
 McDonald's value proposition is food of consistent quality served
quickly across the globe

• Offering - intangible value proposition made physical / tangible by

an offering which can be combination of products / services /
information / experiences.

• Brand - A brand is an offering from a known source.

 Eg. Apple (image - creative, innovative, easy to use, cool)
 Core Concepts of Marketing

Marketing Channels

• Marketing channels to reach Target Market

• Mix of three types - Communication, Distribution, Service

• Communication channels - deliver and receive messages from

target buyers - Internet, Print, TV, Radio, Phone, Mail, Fliers, Billboard.

• Distribution channels - display, sell, deliver physical product to user -

Internet, Phone, Intermediaries (distributors, wholesalers, retailers)

• Service Channels - carry out transactions - Warehouse,

Transportation, Banks, Insurance
 Core Concepts of Marketing

Paid, Owned and Earned Media

• Traditional media and Digital media

• Paid media - TV / Magazine / Display ads / Paid search - Fee

• Owned media - Company brochure, website, blog, Social media

account / page

• Earned media - Earned media is any kind of outside attention that you
“earn” but don't directly pay for. Word of mouth (WOM), e-WOM, Buzz,
Viral marketing (customers, press etc. communicate voluntarily
regarding a brand)
 Core Concepts of Marketing

Impressions and Engagement

• Marketers now think of three screens (TV, Computer, Mobile) to

reach consumers. Nielsen study - 3 out of 5 people use 2 screens
simultaneously.

• Impressions occur when consumers see (viewing) a

communication. Does not provide any insight into the results.

• Engagement is the extent of a customer's attention and involvement

with the communication. Eg. Clicks, Likes. More active response
than a mere impression.
 Core Concepts of Marketing

Customer Value and Customer Satisfaction

• Customer value is the ratio between customer's perceived benefits

(economic, functional & psychological) and the resources they have
used to obtain those benefits (i.e.. monetary, time, effort, psychological).
Example: Customers know what to expect at an exclusive French
restaurant and a McDonalds.
• Customer Satisfaction - refers to customers perceptions of the
performance of the product or service in relation to their expectations.
• Falls short of expectations - Dissatisfied - Limited wine menu at
exclusive French restaurant / Cold fries at McDonalds
• Exceeds expectations - Delight - Samples of delicious food "from the
Chef" / well designed play area for children
• Customer Value is a combination of Quality, Service & Price (QSP)
called the customer value triad.
 Core Concepts of Marketing

Supply Chain

• A channel stretching from raw materials to finished goods carried to

final buyers. Eg. Supply chain for Coffee (next slide).

• Each company in the chain captures only a certain percentage of the

total value generated by the supply chain's value delivery system.
 Example - Nike supply chain

• When a company acquires competitors or expands upstream or

downstream, its aim is to capture a higher percentage of supply value
chain.
 Eg. Big Basket- Inventory based model (Assignment)
 Core Concepts of Marketing

Supply chain for Coffee

 Core Concepts of Marketing
Competition

• Competition includes all the actual and potential rivals & substitutes a
buyer might consider. An automobile manufacturer in the USA can buy
steel from a steel company, a mini-mill, import from Japan/Korea or it
can buy aluminum parts to reduce weight or engineered plastics.

• Who is competition for Coke?

• Carbonated drinks like Coke /Pepsi have competition from local brands
like Sosyo, bottled water, packaged juices, tea, coffee, sugar cane juice,
nimbu pani etc.

• Companies may hurt themselves by defining competition narrowly.

 Eg. In the wake of Covid 19, Amul introduced Turmeric Milk / Wagh
Bakri & Girnar introducing many teas with herbs as home-made kadha
became their competition..
 Core Concepts of Marketing

Marketing Environment

• Task environment - includes the actors engaged in producing,

distributing and promoting the offering (products / services). These
are the company, suppliers, distributers, dealers and target
customers.

• Broad environment - consists of demographic environment,

economic environment, social-cultural environment, natural
environment, and political-legal environment. (PESTEL Analysis -
Macro (external forces))

• Marketers must pay close attention to the trends and developments

in these and adjust their marketing strategies as needed.