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Marketing Management

Module I
Nature of Marketing ? Definition, meaning and
scope, core concepts of marketing .
Company orientation towards marketing.
Role of marketing in Indian economy,
emerging trends in Indian marketing
environment.
Nature of Marketing.
What is Marketing?
Marketing deals with identifying and meeting
human and social needs.
“Meeting needs profitably”.
American Marketing Association define as
“Marketing is an organizational function and a
set of processes for creating, communicating,
and delivering value to customers and for
managing customer relationships in ways that
benefit the organization and its stake holders”
Exchange and Transactions.
Exchange:
1.There are at lest two parties.
2.Each party has something that might be of value
to the other party.
3.Each party is capable of communication and
delivery.
4.Each party is free to accept or reject the
exchange offer.
5.Each party believes it is appropriate or desirable
to deal with the other party.
Transaction:
A transaction is a trade of values between
two or more parties.
Transfer of ownership.
Marketplaces, Marketspaces and
Metamarkets.

The marketplaces is physical as when you


shop in a store; Marketspaces is digital,
as when you shop on the internet.
Metamarkets is describe a cluster of
complementary products and services
that are closely related in the mind of
consumers but are spared across a
diverse set of industry.
Marketing System.
Communication

Goods/Services

Industry Market

Money

Information
How Business and Marketing are
Changing.

• Changing • Customization.
Technology.
• Heightened
• Globalization. competition
• Deregulation. • Industry
convergence.
• Privatization.
• Retail transformation.
• Customer
Empowerment. • Disintermediation.
Core Concepts of Marketing.
1. Needs, Wants and Demands.
Needs are the basic human requirements.
Wants ; needs become wants. When they
are directed to specific objectives that
might satisfy the need.
Demands are wants for specific products
backed by an ability to pay.
2. Target Markets, Positioning and
Segmentation;
Identify and profile distinct group of buyers
who might prefer or require varying
product and services mixes by examining
demographic, psychographic and
behavioral differences among buyers.
The marketer then decides which segments
present the greatest opportunity- Which
are its Target Markets. For each chosen
target market, the firm develops a market
offering . The offering is Positioned in the
minds of the target buyers as delivering.
3. Offering and Brands;
The intangible value proposition is made
physical by an offering which can be a
combination of Products, Services,
Information and Experiences.
A brand is an offering from a known
source.
4. Value and Satisfaction;
Value reflects the perceived tangible and
intangible benefits and costs to
customers.
Satisfaction reflects a person’s comparative
judgments resulting from a product’s
perceived performance in relation to his
or her expectations.
5.Marketing Channels
To reach a target market the marketer uses
three kinds of Marketing Channels.
Communication Channels -
Distribution Channels –
Service Channels -
6.Supply Chain
It represents a value delivery systems. Like
Tanning Operations, Cutting Operation, &
Manufacturing.
7. Competition
Competition includes all the actual and
potential rival offerings and substitutes
that a buyer might consider.
8. Marketing Environment.
It consists of the task environment and the board
environment.
Task /Internal Environment.
Board/External Environment.
9. Marketing Planning
The process consists of analyzing marketing
opportunities, selecting target markets,
Designing marketing strategies,& Developing
marketing program.
Company orientation towards
marketing.

• The Marketing Concept.

Instead of a product – centered “market-


and-sell” philosophy, business shifted to
a customer- centered , “Sense –and-
respond” philosophy.
• The Holistic Marketing Concept
It is based on the development, design and
implementation of marketing programs,
processes and activities that recognizes their
breadth and interdependencies.
Four components of Holistic Marketing
4. Relationship Marketing
5. Integrated Marketing
6. Internal Marketing
7. Social responsibility.
Senior Communications Product & Services
Marketing Dep.
Managemen Chan
t
Other Department

Internal Integrated
Marketing. Marketing.

Holistic
Marketing

Socially
Responsible Relationship
Marketing.
Marketing

Ethics Environment Customers Channel Partners


Legal Community
• Relationship Marketing;
It has aim to build mutual satisfying long-
term relationships with key parties-
Customer, Suppliers, Distributors and
other marketing partners.
• Integrated Marketing;
The marketer task is to devise marketing
activities and assemble fully integrated
marketing to create, communicate, and
deliver value for consumers.
• Internal Marketing;
It ensuring that everyone in the
organization embraces appropriate
marketing principal especially senior
management. (Hiring, Training, &
motivating)
• Social Responsibility Marketing;
Understanding broader concerns and the
ethical, Environmental, Legal and Social
context.
Role of Marketing in Indian
economy ,Emerging trends in
Indian Marketing environment.
• Post Reforms
Restricted Economy policy.
• After Reforms Since1991
4. Liberalization Measures
5. Macroeconomic reforms.
1. Liberalisation Measures
1 New Industrial Policy.
• Liberalisation of industrial licensing.
• FERA Liberlisation
• MRTP Liberlisation.
• Curtailment of public sector.
2 New Trade Policy.
• Abolition of import licences
• More open exim regime.
• Convertibility of rupee.
• Encouragement to foreign investment.
• Integrating India's economy with the global
economy.
2. Macroeconomic reforms and Structural
Adjustments.
1. Macroeconomic Reforms.
• Fiscal & Monetary reforms.
• Banking sector reforms.
• Capital market reforms.
2. Structural Adjustments
• Phasing out subsidies.
• Dismantling of price controls and
introduction of market driven
environment.
• Public sector restructuring and
disinvestment.
MODULE II
• Role of consumer in the marketing process:
factors influencing consumer behaviour.
• Buying decision process: stages in buying
decision process.
• Business buyer behaviour ; business market
versus consumer market; buying decisions.
Role of consumer in the marketing
process: factors influencing consumer
behaviour.
1. Cultural Factors:
Is the fundamental determinant of a
person’s wants and behaviour.
The growing child acquires a set of
values, perceptions, preferences, and
behaviors through his or her family
and other key institutions.
It consist of smaller subcultures and
social class.
• Subcultures:
It provide more specific identification
and socialization for their members.
Includes nationalities, religions, racial
group, and geographic regions.
• Social classes:
It relatively homogeneous and enduring
divisions in a society, which are
hierarchically ordered and whose members
share similar values, interests and
behaviour.
Exam: USA seven ascending levels,
1. Lower-lowers, 2. Upper lowers, 3. Working
class, 4. Middle class 5. Upper Middles
6.Lower uppers and 7.Upper uppers.
2. Social Factors.
Are reference groups, family, and
social role and statuses.
• Reference Groups. A person
reference groups consist of all the
groups that have a direct ( Face-to-
Face) or indirect influence on his /
her attitudes or behaviour.
The group have direct influence on a
person are called Membership groups.
Membership groups.
• Primary Groups: such as family, friends,
neighbors and co-workers those with whom
the person interacts fairly continuously
and informally.
• Secondary Groups: Such as religious,
professional and trade union groups.
Aspirational Groups are those a person
hopes to join. Dissociative Group are those
whose values or behaviour and individual
rejects.
• Family: It is most important consumer
buying organization in society, and family
members constitute the most influential
primary reference group.
Family of Orientation: consists of parents
and siblings. From parents a person
acquires an orientation towards religion,
politics, and economics and sense of
personal ambition, self-worth and love.
Family of Procreation : The size of family
one’s spouse and children.
• Roles and Statuses:
A person participates in many groups-
family, clubs, organizations. A role
consists of the activities a person is
expected to perform. Each role
carries a Status .
3. Personal Factors:
These include the buyer’s age, and
stage in the life cycle; occupation and
economic circumstances; personality
and self-concept; and lifestyle and
values.
• Age and stage in the life cycle:
People buy different goods and services over
a life time. Taste in food clothes furniture.
Critical Life events/transaction – marriage,
childbirth, illness, relocation, divorce,
career change, widowhood – as giving rise
to new needs.
• Occupation and economic circumstances:
Occupation also influences consumption
patterns. Like President , Executives etc..
Role of consumer in the
marketing process.
• Key person to decided the product.
• Influencer on other purchasing
decision.