MARKETING MANAGEMENT

DETAILED CURRICULUM
Unit 1: Fundamentals of Marketing
• Understanding Marketing, Evolution of Marketing Concept, Marketing
Management process, Dynamic Marketing Environment, Difference between Sales
and Marketing. Marketing Mix- 4 Ps of Marketing Mix. Marketing Research-
Significance and stages, Marketing Research Process. Consumer Behaviour-
Understanding Consumer Behavior, Buying situations, Factors affecting Consumer
Behavior, Consumer buying process, Customer loyalty
Unit 2: Segmentation, Targeting and Positioning
• Meaning and importance of Market Segmentation, Rationale of Segmentation,
Customer value proposition, Parameters of Market Segmentation. Targeting and
different Strategies, Elements of Positioning, Positioning differentiation,
Repositioning.
Unit 3: Product, Brand and Distribution Management
• Product Management, Product Management Process, Product classification,
Product differentiation, Product Augmentation, PLC Concept- Stages and Strategies.
New product development and stages, Product mix and product line decisions,
Branding, Selecting Brand elements like logo, name and slogan, Branding strategies,
Private label brands, Brand extension and strategies. Distribution management-
Distribution of logistics, new trends in distribution, Role of Channel Intermediaries
Unit 4: Communication Decisions
• Communication and its role in Marketing, Integrated
Marketing Communication, Advertising and Sales promotion,
Advertising Models- ATL and BTL, Stages of Communication
campaign, Advertising agencies, Evaluation of effectiveness of
communication, Direct marketing, Experiential Marketing

Unit 5: Competitor Analysis and Pricing Decisions

• Competition- an integral part of business, Perfect
Competition, Competitive Strategies and moves, Ambush
Marketing, Pricing as a Marketing Mix component- types of
pricing, pricing decisions, price wars, price sensitivity and its
implications. Concept of marketing analytics, tools and
techniques and applications of marketing analytics
 What is Marketing?
• Marketing consists of all the
activities of individuals and
organizations designed to identify,
anticipate, and mutually satisfy the
needs of all parties involved in the
exchange.
 Pre-requisites..
• Marketing cannot take place unless
some sort of exchange occurs.
• One party must exchange a product
or service with another party
• for some form of payment.
• This is the exchange process and is
the central focus for all marketing
activities.
 Phillip Kotler states…
• Marketing is a social process by which individuals
and groups obtain what they need and want
through creating and exchanging products and
value with others

• This definition includes following core concepts

– NEEDS ,WANTS and DEMANDS
– PRODUCTS
– VALUE & SATISFACTION
– EXCHANGE & TRANSACTION
– MARKETS & MARKETERS
 NEEDS,WANTS AND DEMANDS
– NEED : A state of felt deprivation of some basic
satisfaction ( Food, Clothing, Shelter, Belonging etc.

– WANTS : Wants are desires for specific satisfiers of

the deeper needs. Needs are few and wants are
many .

– DEMANDS : are wants backed by Ability to buy and

Willingness to buy
 PRODUCTS / OFFERS / SATISFIERS /
RESOURCES
• Anything that can be offered to
someone to satisfy a need or
want is a product .
–Product refers to physical object
–Services refer to intangible object
 VALUE AND SATISFACTION
• Value is the customers’ estimate of the Product’s
capacity to satisfy a set of goals
• Value is the ratio between what the customer
gets and what he gives (V=B/C)
• Customer gets benefits & assume costs
WHEN :
– Customer Expectation = Performance (satisfied)
– Customer Expectation > Performance (dis-satisfied)
– Customer Expectation < Performance (Highly satisfied)
 EXCHANGE AND TRANSACTION
• Exchange is the act of obtaining a desired
product by offering something in return .
• Exchange is a value creating process because it
normally leaves both parties better off.
• A transaction is a trade of values between two
or more parties (Barter / Monetary)
 WHAT IS MARKET ?
• A market consists of all the potential
customers sharing a particular need or want
who might be willing and able to engage in
exchange to satisfy that need or want.
 WHAT IS MARKETING ?
• identifies, anticipates, and supplies customer
requirements efficiently and profitably.

• understanding, creating, and delivering

profitable value to targeted customers better
than the competition.

• In short marketing consists of attracting,

developing, and retaining profitable
customers.
 Marketing Management
• analysis, planning, implementation and control of
programs designed

• to create, build and maintain beneficial

exchanges and relationships

• with target markets

• for the purpose of achieving Organisational

objectives
Evolution of Marketing Concept
 1. PRODUCTION CONCEPT
• Firm is considered as the central point

• All goods and commodities produced were sold in the market.

• Emphasis on production process, control on technical perfection

• Consumers will favour products - widely available, low in cost.

• Concentrates on achieving high production efficiency and wide

distribution coverage.

• Technologists thought that low cost due to large scales of

production - right ‘Marketing Mix’ for the consumers.
 2. PRODUCT CONCEPT
• Holds that consumer’s will favour products -
most quality, performance and features.
• Management in these product-oriented
organizations –focussed on making good
products and improving them over time.
• Yet, in many cases, these organizations fail in
the market. Why??
• The term ‘marketing myopia’ is to be credited
to Professor Theodore Levitt - as a coloured or
crooked perception of marketing and a short-
sightedness about business.
 3. SALES CONCEPT
• Company cannot expect its products to get picked
up automatically by the customers.
• The company has to consciously push its
products.
– Aggressive advertising,
– high-power personal selling,
– large scale sales promotion,
– heavy price discounts and
– strong publicity and public relations
• The selling concept is thus undertaken most
aggressively with ‘unsought goods’.
• Too suffers from marketing myopia.
• Selling views business as a ‘goods producing
processes’.

• Marketing views business as a ‘customer

satisfying process’.
• Kodak lost much of its share to Sony cameras
when digital cameras boomed and Kodak
didn’t plan for it.
• Nokia losing its marketing share to android
and IOS.
• Yahoo (worth $100 billion dollars in 2000) lost
to Google and was bought by Verizon at
approx. $5 billion (2016).
 QUIZ
• What is Marketing?
• How are needs / wants / demands different?
• Production Concept?
• Product Concept?
• Sales Concept?
• Marketing Myopia?
 4. MARKETING CONCEPT
• Starts with the determination of consumer wants ;ends with the
satisfaction of those wants.

• Puts the consumer both at beginning and end of the business cycle.
• “there is only one valid definition of business purpose: to create a
customer”.

• “the entire business has to be seen from point of view of customer”.

• Every department and every worker and manager will ‘think
customer’ and ‘act customer’.

• An integrated marketing effort aimed at generating customer

satisfaction as the key to satisfying organizational goals.
• The salient features of the marketing concept are:
– 1) Consumer orientation
– 2) Integrated marketing
– 3) Consumer satisfaction
– 4) Realization of organizational goals.
 Benefits of Marketing Concept
1. Long Term success
2. Better Products
3.Boosts creativity
4. Integrated functions
5. Mostly in profits
6. Better growth of employees
7. Contributes to overall growth of the society
 Tasks Responsibilities of Marketing
Management
• Market analysis
• Set Goals
• Forecast sales & profits
• Strategies, policies & procedures
• Evolve appropriate marketing mix
• Organize marketing activities
• Organize resources
• Participation in product planning
• Managing Supply chain
• After Sales activities
 Difference between Sales and
Marketing
MARKETING
1. Trying to get the company
produce what the customer
wants
2. Much wider and dynamic
concept
3. Revolves around needs and
wants of buyer
4. Marketing creates a PULL
5. Marketing is a process
SALES
Trying to get the customer
want what the company
produces
Narrow concept
Revolves around the needs and
wants of seller
Sales creates a PUSH
Sales is a result of marketing
process
 5. THE SOCIETAL MARKETING
CONCEPT
• It is Marketing Concept (+) Society’s well
being.
• Balancing of following three considerations
while setting marketing policies :
– Customer’s want satisfaction
– Society’s well being
– Company’s profits
 THE SOCIETAL MARKETING CONCEPT
• societal marketing concept 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.
- It addresses conflicts between consumer’s and
firm’s short run wants and long term welfare.
MARKETING AS A CARRIER OF
VALUE
 IMPORTANCE OF MARKETING
1. Marketing helps to achieve, maintain and
raise the standards of living

• Marketing is means through which production and

purchasing power are converted into consumption.
• Better marketing Mass production
• Mass production Low cost
• Low cost  More buying power  Higher standard
of living
2. Marketing Increases employment
opportunities
– Marketing depends on various functions / sub-
functions (Buying, Selling, Transport,
Warehousing, Financing, Risk management etc)
– These functions create need for different
specializations - About 30-40% population
depends directly or indirectly on marketing
3. Helps maintain economic stability &
development - maintaining demand supply
balance

4. Link between producer & consumer

5. Removes imbalance of supply & demand by

transferring surpluses
 IMPORTANCE OF MARKETING –
Business Firms
1. Marketing Generates Revenue, by generating
sales & thereby profits
2. Marketing helps decision making process
(what, when & how much to produce, store
or transport)
3. Helps change management & innovations
MARKETING MIX
Marketing Mix-Meaning and Definition
• to collect and mix the resources of marketing in the
manner that objects of the enterprise may be
achieved and maximum satisfaction may be provided
to the customers.
• According to Stanton, “Marketing mix is the term used
to describe the combination of the four inputs which
constitute the core of companies marketing system”
– the product,
– the price structure,
– the promotional activities,
– the distribution system.
 4P’s of Marketing Mix
• Product
• Price
• Place
• Promotion
 Designing the right marketing mix
• most creative & challenging step in marketing
is designing the right marketing mix

• marketing mix is the specific collection of

actions & associated instruments employed
by an organisation to stimulate acceptance of
its ideas, products & services
 Total Offer to the Customer
• First, the firm chooses the product to meet
the identified need of the target segment
• Second, the right distribution channel is used
to make the product available
• Third, the firm undertakes eye catching
promotion
• Fourth, the price platform is acceptable to the
customer & firm
 E. Jerome McCarthy
• prominent marketer , E. Jerome McCarthy,
proposed a 4 P classification in 1960, which
has seen wide use.
• 4Ps & 4Cs

• Product- Customer /Consumer

• Price- Customer cost
• Place- Convenience
• Promotion- Communication
• Four Ps is also being replaced by the Four Cs
model, consisting of consumer, cost,
convenience, and communication .

• Four Cs model is more consumer-oriented

and fits better in the movement from mass
marketing to niche marketing.
 Product- >Consumer

• The product part of the Four Ps model is

replaced by consumer or consumer models,
shifting the focus to satisfying the consumer.
 Price- >Cost
• Pricing is replaced by cost , reflecting the reality
of the total cost of ownership.
• The computer system has an initial purchase
price. Additional costs of the computer system
also often include new software, installation,
transition costs, employee training, security costs,
disaster recovery planning, ongoing support and
future upgrades.
 Place- >Convenience
• Placement is replaced by the convenience
function.
• With the rise of internet and hybrid models of
purchasing, place is no longer as relevant as
before.
• Convenience takes into account the ease to
– buy a product,
– find a product,
– find information about a product,
– and several other considerations.
 Promotion-> Communication
• Finally, the promotions feature is replaced by
communication .
• Communications represents a broader focus
than simply promotions.
• Communications can include advertising,
public relations, personal selling, viral
advertising, and any form of communication
between the firm and the consumer.
 Extended Marketing Mix

• have been attempts to develop an 'extended

marketing mix ' to better accommodate
specific aspects of marketing.
• For example, in the 1970s, Nickels and Jolson
suggested the inclusion of packaging .
• In the 1980s Kotler proposed public opinion
and political power
 7Ps & 7Cs
• Confirmation = Physical Evidence
• Co-ordinated = Processes
• Caring = People
• Communication = Promotion
• Convenience = Place
• Cost = Price
• Customer/ Consumer = Product
 Extended/Augmented Service Mix
• People.
– who directly or indirectly influence the perceived
value of the product or service, including
knowledge workers, employees, management and
consumers.
• Physical Evidences.
• Process
– procedures, mechanisms and flow of activities
which lead to an exchange of value.
 PEOPLE
• According to Berry and Parsuram, service cannot
be divorced from the people who are offering it.
• Its performance cannot be separated from the
people
• If people do not meet customers’ expectations,
the service will also not meet.
• Internal marketing of a service should lead to
attraction, development, motivation and
retention of employee.
 PHYSICAL EVIDENCE
• A physical object is self defining, a service is not.
• The physical evidence refers to physical
environment, facilities and atmosphere.
– Peripheral evidence: exterior of buildings, layout, color,
interiors, carry bags, cash memos, labels, tickets
– Essential evidence: dominant part of the service
• Physical evidence can support the marketing
program by providing adequate service to customer
and influencing his perception. It can make the
service tangible.
• “The service environment along with tangible cues”
• Philip Kotler suggests that - physical setting of
an exchange my be described as
“atmospherics”.
• It includes visual, olfactory, tactile, aural
perceptions.
• The “Servicescape” is the place where service is
performed, delivered and consumed.
– Ambience: temperature, lighting, noise, music,
scent, colour
– Spatial layout: the way in which equipment and
furniture is arranged
– Artifacts, signs, symbols
 People
• All people directly or indirectly involved in the service
encounter, namely the firm's contact employees, personnel
and other customers.
• Due to the inseparability of production and consumption for
services which involves the simultaneous production and
consumption of services, service firms depend heavily on the
ability of contact employees to deliver the service.
• Contact employees contribute to service quality by creating a
favorable image for the firm, and by providing better service
than the competitions.
– Service providers (such as hair stylists, personal trainers, nurses,
counselors and call centre personnel) are involved in real time
production of the service. They are the “service”. Much of what makes a
service special derives from the fact that it is a lived-through event.
• Service firms must find ways in which they can effectively
manage the contact employees to ensure that their attitudes
and behaviors are conducive to the delivery of service
quality.
• This is especially important in services because employees
tend to be variable in their performance, which can lead to
variable quality i.e. heterogeneity in the performance of
services.
– The quality of a service (a visit to a hospital for medical
check-up, having a meal at the restaurant, accountancy
and consulting services) can vary from service providers
and customers among many other factors.
 Physical Evidence
• Physical evidence refers to the environment in which the
service is assembled and in which the seller and customer
interact, combined with tangible commodities that facilitate
performance (or communication) of the service.

• Includes all the tangible representations of service such as

brochures, letterhead, business cards, reports, signage, internet
presence and equipment.
– For example, in the hotel industry, the design, furnishing, lighting, layout
and decoration of the hotel as well as the appearance and attitudes of
its employees will influence customer perceptions of the service quality
and experiences.

• Because of the simultaneous production and consumption of

most services, the physical facility i.e. its service-scape can play
an important role in the service experience.
• The direct sensory experience of a product or
service that allows a customer to measure
whether he has received value.
• might include the way a customer is treated
by a staff member , or the length of time a
customer has to wait , or a cover letter from
an insurance company, or the environment in
which a product or service is delivered.
• For theme park, restaurant, health club, hospital or school, its
service-scape is critical in communicating about the service and
making the entire customer experience positive.
• The “servicescape” illustrates how three physical environment
dimensions (ambient conditions, social, design) provide a
means of understanding environment.
• As services are intangible, customers are searching for any
tangible cues to help them understand the nature of the
service experience.
– Credit cards - example of use of tangible evidence that
facilitates provision of (intangible) credit facilities by credit
card companies and banks.
• The physical environment is part of the product itself. physical
evidence serves as a visual metaphor of what the company
stands for, and facilitates the activities of customers/employees
 Process
• Process is referred to the procedures, mechanisms and flow of
activities by which the service is delivered .
– The process of travelling with a budget airline, is very different from that
with a full-fledged premium airline.
• Because services are performances or actions done for or with
the customers, they typically involve a sequence of steps and
activities. The combination of these steps consitutes a service
process which is evaluated by the customers
• Creating and managing effective service processes are essential
tasks for service firms.
• As services are dynamic and experiential, and frequently co-
produced in real time by customers and employees, service
firms use “service blueprinting” to better manage the service
encounter and to allow clearer visualization of the service
processes.

• Blueprinting is a method invented by Shostack (1984) to

accurately portrays the service system with
(i) “line of interaction” separates the customer action area from the supplier
action area,
(ii) “line of visibility” differentiates between actions visible and invisible to
the customer,
(iii) “line of internal interaction” distinguishes between front office and back
office activities,
(iv) “line of implementation” separates between planning, managing and
controlling (management zone) and support activities (support zone)
Expanded Marketing Mix for Services
 Factors Affecting Marketing Mix
• Controllable factors.
– Product Planning.
– Brand Policy.
– Packaging Policy.
– Personal Selling.
– Physical Distribution.
 Factors Affecting Marketing Mix
• Uncontrollable Factors.
– Consumers Buying Behavior
– Competition
– Government Control
– PESTLE
DEVELOPING MARKETING
STRATEGIES AND PLANS
 Value delivery process
• 1. Choosing the value
– Segment the market, select appropriate target,
develop offering’s value positioning (STP)
• 2. Providing the values
– Identify specific product features, prices, distribution
• 3. Communicating the value
– Utilize internet, advertising, sales force, other
communication tools
• begins before the product and continues through
development and after launch-has cost
implications
 The value chain
• Michael Porter has proposed value chain as a tool
to create more customer value.
• Every firm is a synthesis of activities performed to
– design
– Produce
– Market
– Deliver
– Support
• strategically relevant activities
 Primary activities
• Inbound logistics (bringing materials into
business)
• Operations (convert materials into final
products)
• Outbound Logistics (shipping out final
products)
• Marketing
• Service
 Support Activities
• Procurement
• Technology Dev
• HRM
• Firm Infrastructure
– General management
– Planning
– Finance
– Accounting
– Legal
– Govt Affairs
 Core business processes
• Market sensing process:
– Gathering and acting upon info about market
• New-offering realization process:
– Researching, dev, launching high quality offerings quickly,
within budget
• Customer acquisition process:
– Defining target markets and prospecting new cust
• CRM process:
– Building deeper understanding, relationships, offerings
• Fulfillment management process:
– Receiving orders, shipping goods, collecting payment
 Core competency
• Source of competitive advantage and makes
significant contribution to perceived customer
benefits
• Applications in a wide variety of markets
• Difficult for competitors to imitate
• Realignment:
– (re)defining the business concept
– (re)shaping the business scope
– (re)positioning the company’s brand identity
 Strategic planning
• Managing the business as an investment
portfolio
• Assessing the market’s growth rate and the
company’s position in that market
• Establishing a strategy
 Organizational levels
• Corporate
• Division
• Business unit
• product
 Marketing plan
• Central instrument for directing and
coordinating the marketing effort
– Strategic: target markets and firm’s value
proposition
– Tactical: mktg tactics, product features,
promotion, pricing, sales channels and service
STRATEGIC PLANNING
 4 Planning activities
• 1. defining the corporate mission
• 2. establishing SBU
• 3. Assigning resources to each SBU
• 4. Assessing growth opportunities
 1. defining the corporate mission
• Peter Drucker’s classic questions:
• What is our business?
• Who is our customer?
• What is of value to the customer?
• What should our business be?
– To define its mission, company should
continuously ask and answer these.
• Amazon
• Dunkin’ donuts
• Ebay
 Product oriented vs. Market oriented
business Definition
• Paramount pictures
– We make movies We market entertainment
• Xerox
– We make copying equipment- we help improve
office productivity
• Britannica Encyclopaedia
– We sell encyclopaedia online-We distribute
information
 Good mission statement
• They focus on a limited number of goals
• They stress the company’s major policies and
values
• They define the major competitive spheres
• Take a long term view
• They are short, memorable, meaningful