Program: MBA- II Semester- First Year

MBA 201: Marketing Management

Introduction 2

(Jan – Jun 2024)

Dr. Preeti Singh

Department of Management
preeti.singh@itmgoi.in

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Outlines

Prerequisite

Student Effective Learning Outcomes (SELO)

Marketing and It’s aim

The steps in the marketing process

The major trends and forces that are changing the marketing landscape in
this age of relationships

Customer

Assignment

Reading Material

2
 Prerequisites
• The students should come prepared with provided videos
and subject matter on LMS (Tattva).

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Marketing Management 201
 Student Effective Learning Outcomes (SELO)
After this session students will be able to
1. To understand marketing and It’s aim
2. To understand the steps in the marketing process
3. To understand the major trends and forces that are changing the
marketing landscape in this age of relationships
4. To understand customer

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Marketing Management 201
 What is marketing

“Managing profitable customer relationship”

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Marketing Management 201 SELO 1 Ref 2,3
 ???

Can you develop a relationship with a detergent brand,

toothpaste , hand wash ?

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Marketing Management 201 SELO 1 Ref 2,3
 Tell and Sell ……………to…………Satisfying Customer
Need

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Marketing Management 201 SELO 1 Ref 2,3
 Customers

Current Past New

Internal
External

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Marketing Management 201 SELO 1 Ref 2,3
 How you will do that?
• You must continuously be attracting (profitable) new customers in
the industry sectors that you have identified in your strategic plan.
• You must actively retain your (profitable) current customers and re-
establish relationships with past customers.
• You must customize your product and service offerings to better
meet your customer’s expectations and needs.
• Your employees must be continuously trained and rewarded for
delivering exceptional customer service.

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Marketing Management 201 SELO 1 Ref 2,3
 Aim

“Create “Capture
value for value from
Customer” Customer”

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Marketing Management 201 SELO 1 Ref 2,3
 Customer Value & Customer Cost
• Customer Value Customer Cost

“Is the bundle

of costs
“Is the bundle
customers
of benefits
expect to incur
customer
in evaluating,
expect from a
obtaining, and
given product
using the
or service”
product or
service”

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Marketing Management 201 SELO 1 Ref 2,3
 Customer Satisfaction
• “Is a person’s feelings of pleasure or disappointment
resulting from comparing a product’s perceived
performance in relation to his or her expectations”

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Marketing Management 201 SELO 1 Ref 2,3
 • Building the right relationships with the right customers
• Customer Equity- The total combined customer lifetime value (CLV
represents the total net profit a company makes from any given
customer)of all of the company’s customers.
• CLV=(Average Order Value) x (Number of Repeat Sales) x
(Average Retention Time)

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Marketing Management 201 SELO 1 Ref 2,3
 Customer Relationship Group
based on profitability and loyalty

Butterflies: are
profitable but not True friends: are
loyal example is both profitable
stock market and loyal
investors

Barnacles: are
highly loyal but not
Strangers: have
very profitable
low profitability
example are
and are not loyal
smaller bank
customers.

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Marketing Management 201 SELO 1 Ref 2,3
 Strangers – Low profitability, Short term loyalty
• "Strangers" show low potential profitability and little
projected loyalty. There is little fit between the company's
offerings and their needs. The relationship management
for these customers is simple: Do not invest anything in
them.

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Marketing Management 201 SELO 2 Ref 2,3
 Butterflies – High profitability, Short term loyalty
• "Butterflies" are potentially profitable but not loyal.
There is a good fit between the company's offerings and
their needs. However, like real butterflies, we can enjoy
them for only a short while and then they are gone.
• A person who likes Android in general but buys Apple
IPhone because it’s on sale.

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Marketing Management 201 SELO 2 Ref 2,3
 Barnacles – Low profitability, Long term loyalty
• "Barnacles" are customers who are loyal but give little
profit to the company. E.g. a customer who buys a packet
of sweets a few times a week from the convenience but
nothing else much. Or the bank customer who keeps a
bank account that is a few hundred dollars only or even
lesser.
• The company shouldn’t be hesitant about dropping them.

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Marketing Management 201 SELO 2 Ref 2,3
 True Friends – High profitability, Long term loyalty
• "True Friends" are customers who are highly profitable
and loyal.
• Apple loyalists who buys every product the company
releases just because it is from Apple.
• Businesses should treasure these customers. They should
constantly delight them, nurture them and retain their
loyalty by communicating with them in a regular manner.

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Marketing Management 201 SELO 2 Ref 2,3
 Maximizing Customer Lifetime Value

• The key to retaining customers is relationship marketing

• Losing profitable customers can dramatically affect a
firm’s profits. The cost of attracting a new customer is
estimated to be five times the cost of keeping a current
customer happy (5:1)
• Customer Relationship Management (CRM)

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Marketing Management 201 SELO 2 Ref 2,3
 Marketing Process

• Understand the market place and customer needs and wants

1

• Design a customer driven marketing strategy

2

• Construct an integrated marketing program that delivers superior value

3

• Build profitable relationships and create customer delight

4

• Capture value from customers to create profits and customer equity

5

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Marketing Management 201 SELO 3 Ref 2,3
 Need, Wants & Demand
• Need – States of felt deprivation

• Wants – The form of human needs take as shaped by culture and

individual personality

• Demands- Human wants that are backed by buying power

Southwest Airlines & P&G

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Marketing Management 201 SELO 3 Ref 2,3
 • Market Offering- Some combination of products, service,
information, or experiences offered to a market to satisfy a need or
want.

• Marketing Myopia- The mistake of paying more attention to

specific products that a company offers , than to the benefits and
experiences produced by these products.

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Marketing Management 201 SELO 3 Ref 2,3
 A Modern Marketing System

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Marketing Management 201 SELO 3 Ref 2,3
 What is Customer Value?
• For this task you need to identify how each of the following
consumers perceive value, based on their statements listed below.
You should note that the perception of value varies across most of
these consumers.
• For each consumer statement, n this activity, identify how each of
the following consumers perceives value. (For example, value = low
price, or value = good service, and so on.)
• ACTIVITY/TASK
• “I drive a BMW. Why? Because I always want the best, that’s
important to me. I usually buy high quality products.”
• “I also drive a BMW, but I don’t really care about the car – I just
want to show my family, friends and neighbours how well I’m
doing in life.”
• “I like going to McDonald’s – it’s such great value – sure, the food
isn’t that great, but you get a lot for your money.” 24
Marketing Management 201
 • “I’m happy to pay $200 for a pair of shoes – because they last for
years. I really can’t understand people who buy a $50 pair of shoes
every six months.”
• “I won’t shop at those stores; they are very cluttered and too busy. I
prefer to shop at specialist clothing stores. They are quieter, they are
much nicer to be in, and you can take your time and comfortably try
on clothes.”
• “I still shop at the local butchers, rather than going to the big
supermarkets. Sure, it’s a bit more expensive, but the butchers are
always friendly, you can have a laugh, and they even tell you how to
cook the meat if you’re not sure about it.”

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Marketing Management 201
 Assignment
• What does each person consider to be ‘value’?
• Are there any other ways of thinking about value to customers?
• Which of the views about do you think would be common?
• Given these range of views of what value is, what are some of the
implications for marketers?

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Marketing Management 201
 Reading Material
1. KK: Kotler & Keller ,Marketing Management,13th Edition,
Prentice Hall
2. VS: V. S. Ramaswamy , Marketing.
3. Station William J- Fundamentals of Marketing (MC 6raw Hill)
4. Kotler Philip Keller Kevind Lane, Koshy Abraham and .Jha
Mithileshwar - Marketing
5. Management: A South Asian perspective (Pearson Education 12th
Edition)

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Marketing Management 201
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