Marketing

Management(one)
Instructor : Prof: Subrata Majumdar
Slide -2

 The Curriculum is divided into 4 Parts

 A: Understanding Marketing Management
- Defining Marketing for the New Realities
- Developing Marketing Strategies & Plans
- Creating Long Term Loyalty & Relationships ( 6 sessions)
- B: Capturing Marketing Insights
- -Collecting Information &Forecasting Demand
- -Conducting Market Research (4 sessions).
Slide-3

 C: Connecting with Customers:

 -Analyzing Consumer Markets
 - Analyzing Business Markets 4 Sessions
 D: Building Strong Brands:
 -Identifying Market Segments &Targets
 -Crafting the Brand Positioning
 -Creating Brand Equity
 -Addressing Competition &Driving Growth 5 Sessions
 Quizzes/Open House/ etc: 1 session (total 75 minutes across the contact hours)
 Total : 20 sessions : Total 20 sessions
Slide-4

 Evaluation Matrix: End Term : 40%

 Class Presentation/Projects : 30%
 Case Studies :20%
 Quizzes & Surprise Tests :05%
 Individual Enthusiasm :05%
 Total : 100%
Slide-5

 Part A:
 Understanding Marketing Environment
Slide-6(pg48)
Slide-7

 Marketing: Marketing is the activity,set of institutions,and processes for

creating,communicating,delivering and exchanging offerings that have value
for customers,clients,and society at large… The American Marketing
Association.
 Lets look at the ‘key deliverables’.
 Activity
 Institutions
 Processes
 Communicating
 Offerings: Value : Customers Clients &Society at Large.
Slide-8(pg 50)
Slide-9(pg 28)

 What is Marketed:
 Goods
 Services
 Experiences
 Events
 Persons
 Places.
 Properties
 Organizations
 Information
 Ideas.
Slide-10

 Activity : 30 minutes
 All 10 Groups ( 6 member per group) to work on the following.
 Groups: In the same Order. ( Time of Assimilation 7 minutes).
 Presentation : 3-5 minutes.
 Key Questions: What is being Marketed? In each Category.
 Faculty Intervention : 10 minutes
 Total time for Activity : Around 75 minutes.
 End of Session -1.
Slide-11

Task for Session: 2

Group:2: The Group would initiate a discussion on the Case –let Nike : Page:28
Kotler: Slide : 5-7. Initiating and Creating the right questions for a Class
Discussion: Time : 20 minutes
Group :4: Will initiate a discussion on the Case let Google :Page 30.and create
similar process.
Time : 20 minutes.
Faculty Intervention :30 minutes
Open House: 10 minutes.
End of Session 2.
Slide-12 Developing Marketing Strategies
&Plans: Session-3&4(58)
 A Marketing Plan is one of the most important ‘strategic tool’ for any
Corporate.
 A Marketing Plan in its Nature envisages the key processes through which the
Company would achieve its Objectives in the next 1-3 years.
 It is a ‘key sub set’ of the ‘Business Plan’ of the Company.
 Contents of the Marketing Plan are:
 Executive Summary and Table of Contents:
 Situational Analysis
 Marketing Strategy
 Marketing Tactics
Slide: 13

 All groups to prepare ( time – 10 minutes)

 Open House ( 20 minutes)
 Faculty Intervention: 20 minutes.
 End of Session:4
Slide:14 Session 5.
Creating Long Term Loyalty
Relationships(151)
 Fig:3.1 pg 68 (SM: 5-7 minutes)
Slide:15(151)

 Fig : 3.2 Pg 69(5-7 minutes SM)

Long Term Loyalty/Relationships

 Customers are value maximizers. They form an expectation of value and act
on it. Customers are looking always for highest delivered value of their
purchase. Customer Benefits less Cost of Purchase.
 A Buyer’s satisfaction is a function of the Products perceived performance and
the Buyer’s Expectations. So Companies are constantly improving the value
perception. Fmcg: Soaps: Shampoos: TV’s Washing Machines are always trying
to woo the customer with ‘new excitement and greater value
enhancement’.Brands that fail to do drop in their perception and
growth,therefore operate on declining market share.. So Quarterly results,
Ytd comparisons are crucial to monitor the graph.
Slide:16: Customer Value Analysis(150)

1. Identify the major attributes and Benefits that Customers Value: Eg:
Automobile Industry: Maruti then and Now.
2. Assess the Quantitative Importance of the different attribute and Benefits:
Style,Safety.Speed,Torque etc. Hyundai vs Honda vs Toyota in India.
3. Assess the Company’s and Competitor’s Performance on the different
customer values against their rated importance. Eg Ferrari vs Hummer.
4. Examine how customers in a specific segment rate the Company’s
Performance against Specific major Competitor on an individual attribute or
benefit. Eg Jio shaking up Competitors . Airtel’s Q4 profits down by 72%
5. Monitor Customer Values over Time: Air India: HMT:Samsung Apple etc.
6. Time: 30 minutes
Slide:17. Creating Long Term
Relationships: Strategy and Tactics.(168)
 Managing Customer Base: Management of the Customer Base through Sales Funnel
management.
 Reducing the rate of customer defections: Setting benchmarks against Industry
norms.
 Increasing Longevity of Customer Relationship: Staying engaged with the
Company..
 Growth potential capitalized through gaining ‘Share of Wallet’ by cross-selling,up-
selling. Give examples.
 Weeding out low profit customers.
 Concentration on retaining key accounts or high profit customers.80:20. Principle.

 Time: 10/15 minutes.

Slide :17
(154)
30 minutes
Slide:18
Brand Loyalty: Connect(155-168)

 Samsung Phone: Group 1:

 Grey Goose Vodka :Group2:
 Walmart: Group 3
 Hyundai : Group 4
 Avis Car Rentals Group5
 Harley Davidson Group 6
 Red Bull Group 7
 Ferrari Group 8
 Wrigley's Chewing Gum Group 9
 Caterpillar Heavy Equipment Group10
Brand Loyalty/Relationships.

 Groups will comment on the Brand Connect and Loyalty Status of these Brands
against the backdrop of its closest Competitor.
 Time: 7 minutes. Slides: 5-7, Q&A : 5 Minutes.
 Session : 6&7.
Slide:20 : End of Module:1(six sessions)

 Module 1: Covered:

Recap :( Understanding Marketing Environment)

 Defining Marketing Realities
 Developing Marketing Strategies &Plans
 Creating Long Term Loyalty Relationships.
Module 2
Slide:20 Session:7:Module:2
MIS: Information Collection/Demand Forecast
(89)
 We begin the Module on Capturing Marketing Insights.(Sessions:7-10).

 Here we will study firstly the Importance and Impact of MIS(Management Info
 mation Systems).AndForecasting of Demand.( 2 sessions).
 Market Research and its Elements (2 sessions).
Slide:21 Session:7 (89)

 “A marketing Information System (MIS) consists of people,equipment,and

procedures to gather,sort,analyse,evaluate and distribute needed.timely and
accurate information to marketing decision makers .
 Major Components of MIS:
 Internal Company Records
 Market Intelligence Activities
 Marketing Research.
Slide:22 Session :7(91)

 Internal Company Records:

 Order to Payment Cycle: This is the ‘core’ of the business Cycle of every
company. The entire Cash and Credit flow of the company is determined by
this.
 Sales Information Systems: These are daily, weekly monthly quarterly and
Yearly Information on Sales which determine the health pattern and
functioning of the company.
 Data Bases,Data WareHousing and Data Mining
 These are modern trends which leads to Analytics and its Importance in
todays Marketing Environment.
Analysis of the ‘Macro Environment’
Slide:23. Session:7 (94)
 The macro environment Analysis captures components like:
 Demographic Environment: India US Japan China etc
 World Wide Population Growth
 Population Age Mix
 Ethnic and Other Markets.
 Economic Environment: The World Economic Trend: US/Europe/Asia/Africa/
 India/China : The Economic Environment would cover: Consumer Psychology,
 Income Distribution,Savings Debt and Credit. SM: 30 minutes.
 Class Discussion: (45 minutes) Group Activity: Prep Time : 7 minutes: 5 slides.
 Random calling:
 Comment on the Economic Environment of India after Modi’s 3 years with respect to FDI?What factors would
Companies look for investing in India now?
 Comment on the Economic Environment of Developed Markets: US/Europe /China.
 End of Session 7. Case Study: Mahindra Session 8.
Slide:24
Estimating Demand: Some Basics(111)
 To estimate current demand,companies attempt to determine the total
market potential,area potentilals,industry sales market share analysis.
 Estimate future demand of the Company: Company’s Sales Force Input,expert
opinion –current trends and forecast,sales trends etc.
 Tools like mathematical models, statistical techniques data collection
assimilation and analysis key for Demand &Sales Forecasting.
 Case Presentation : Mahindra Tractors:All Groups mandatory.
 Time : 45 minutes -60 minutes
 End Session 8.
Slide: 25 Marketing Research : Sessions
9&10.(124)
 Case Study : Class Discussion : Session 9: First 1-8 pages
 Case Study : Remaining : Session 10.
 Presentation : 5-7 slides from Page 9 onwards.
 All Groups to be ready: with the learnings in the Case Study & Beyond.
Module 3
Session: 11.Analyzing Consumer Markets:
Time: 260 minutes 70:30
 We would examine the various elements that go into the processes of
Consumers at an Individual Level.
 We would then examine the Marketers Prospective of Handling those ‘cues’ to
create set preferences which determine their Products & Brands;
 Parle Biscuits : New Ad
 The New Avatar of the AMBASSADOR: The king is back.
 Comments: 20 minutes( Class Discussion)
 Connecting with Customers
Key Psychological Processes
Buying
Consumer Purchase
Consumer Decision
Psychology
Psychology Decision
Process

Motivation Product
Marketing Stimuli Other Stimuli Problem choice
Perception
recognition
Learning
Products & Memory Brand choice
Economic Information
Services
search Dealer choice
Technological
Price
Evaluation of Purchase
Consumer alternatives
Political amount
Distribution Psychology
Consumer
Cultural Characteristics Purchase Purchase
Communications
decision timing

Post purchase Payment

Cultural
behaviour method
Social
Personal
Connecting to Customers
 Maslow’s Theory: We can interpret this theory with the changing needs of a growing
society with different levels of aspiration.
 Cars, Cell phones, Branded food items, Ready to cook offering,Travel,Indian Snacks etc .
 Herzberg’s two-factor theory of Satisfiers and Dissatisfiers.Where in absence of
dissatisfiers is not sufficient to warranty a purchase.The satisfiers must be present.Eg.
Computer without a warranty is a dissatisfier,the mere presence of that has to be
accompanied with other intrinsic satisfiers product benefits,innovations, ease of usage
etc.
 This has put the ‘Sellers under Pressure’ to differentiate in a buyers market.
 Discuss: (Dell,HP, Compaq)(Nokia,Samsung,SonyErricsson) (ICICI Lombard, Max
Bupa,Bharti Axa).
 Individually List 4 dissatisfiers and 3 Satisfiers of any one product group.
 Group: 1/3/5. 2/4/6. 7/8/9/10.
 Dell HP Compaq: 1/3/5. Time : 15mins
 Nokia/Samsung/Sony Ericsson : 2/4/6: 15 mins
 ICICI/MAxBupa/Bharti Axa : 15
 Time : Minutes…..45 mins.
Hedonomics in Consumer Behavior

 Hedonism is a school of thought which argues that pleasure is the only

‘Intrinsic Good’. A hedonist strives to maximize net pleasure (pleasure –
pain).
 Hedonomics in Consumer Behavior talks of :
 Maximization of Happiness. Consumers must accurately predict the emotional
consequences of their options and make choices based on these predictions.
 Slide:30-38: SM:45 mins:110
Hedonic Editing

 Prospect Theory developed by Daniel Kahneman and Amos Tversky talks of

‘choice under risk’ which underlines important implication for consumer
experience.
 Building on Prospect Theory researchers have proposed a set of strategies to
maximize happiness termed ‘hedonic editing’.
Hedonic Editing

 If a consumer has two events to enjoy(e.g,dining out with a charming friend

and watching a favourite video),she should enjoy them on separate occasions,
because multiple gains will yield greater total happiness if they are
experienced separately than if they are experienced in an aggregate manner.
Hedonic Editing

 If a consumer has to experience two bad events(seeing a dentist and spending

time with the income tax consultant)it is better to experience them in quick
succession,getting it over quickly than experience separately.
 Experience ‘big bad event and small good event’ separately.
 Experience ‘small bad event and a big good event’ in close proximity.
Hedonic Adaptation

 Many things consumers care about change over time.Eg.if a stimulus one
cares about changes- for example moving from a smaller apartment to a
larger unit- one will experience a positive feeling but with the passage of
time the elevated feeling will fade away. This occurance is because of
hedonic adaptation.
Approaching the Consumer

 The marketer can enhance the magnitude of a desired stimuli(eg.amount of

income,size of home etc).
 Find optimal relationship between external stimuli and happiness.
In the first instance: Reliance Big TV, Vadilal big Choco Bar, Bigger Vim Bar and
many more….
Creating an optimal relationship between external stimuli and happiness
through the medium of your ‘Offer’ is the continuous challenge. The
marketers are always in search of this ‘present continuous’pardigm.
Consumer Decisions

 Expectancy Value Model creates a differential in Consumer’s value for Brand

A,BC D ….
 However Heuristics or short cuts in decision making process creates different
responses.
 There are even more contextual complexities like influence of friends, boss,
family etc which complicate the decision making further.
The Indian Consumer

 Rama Bijapurkar: On the ‘Indian Consumer Version 2.0’ states,

 Consumer India will always require strategy complexity far greater than its
current market worth because the number of segments it harbours keeps on
increasing.
 ‘For a long time to come ,Consumer India will have two distinct generations
co-existing,the pre-post liberalisation generations,with complete different
world view and consumption cultures.’
The Indian Consumer

 Reading change in India and making sense of it is pretty tricky because of the
way India changes. It morphs almost like a huge mass moving with a small
acceleration.

 Much of India was born after liberalization. The first non-socialist generation
has grown up. Women, the last bastion of change, are changing too. Welcome
to the vocabulary of changing India - creeping trends, slow blurry, tipping
points, confluence of events.
 Discussion on: Successive Sets Involved in Consumer Decision Making
 Discussion on :Expentancy Value Model.Prospect Theory
 Groups to discuss: Open House:
 Total Time : 30 mins.: 140 mins
Consumer Insights :Role Play:
Session : 12
 There are 5 Combo
 Combo-1 =Gr- 1&9
 Combo-2 = Gr -2&8
 Combo-3 =Gr3&7
 Combo 4- Gr4&6
 Combo-5 – Gr5&10.
 Each Group to moderate a ‘Debate’..
 The evaluation will be based on the Quality of Discussion they generate to create
classroom learning.
 Time 10 minutes per Group: 100 mins
 SM: Intervention : 20 minutes. Total:120 mins:260 minutes
 End of Session: 13.7 sessions.
Consumer -Insights

 Combo Specific: -1,Four Wheelers.

 Cars : Ambassador,Premier Padmini,Herald.
 What were the major 3 differentiators of an average consumer to make a
choice then.
 Todays Scenario : A-Star, Alto, Spark, etc.
 What were the satisfiers of yesteryears vs todays satisfiers.
Consumer Insights

 Combo Specific -2,

 Air Travel- AIR INDIA,IA, BA, SWISS AIR, Quantas, Lufthansa .
 Singapore,Quartar,Emirates, Jet,KingFisher, Cathay Pacific.
 What is the difference between the average passenger then and Now? What
are the major changes??
Consumer Insights.

 Combo Specific -3.

 Cuisines:Then- Indian, Continental. Then.eg. Khyber, MotiMahal, Kwality,
Madras Club,Calcutta Club etc.
 Cuisines :Now: Japanese, North West Frontier Province,Pan Asian, Lebanese
etc.
 What has caused the change of the ‘Indian Palate’.
Consumer Insights

 Combo-4.Education:
 Doctors,Engineers,IAS,Banks,CA’SMBA’S: Then
 Now :Media, Events,Fashion,Film Making, Financial Services, Insurance,
BPO,Entreprenuership,etc.
 What has been fundamental change in character of career aspirations of the
youth ?
Consumer Insights

 Combo -5
 Lambretta, LML Vespa, Bajaj Chetak.
 The transition of the Two Wheeler Segment from Scooter to Motor Bikes ;
 Comment on the Resurrection of Bajaj Auto.
 Comment on Brand leaders like ‘Pulsar’ etc.
Slide:44:Session:13.7-Session 15
Analyzing Business Markets: 100 mins
 We would address the following:
 What is Organization Buying?
 Participants in the Business Buying Process.
 Decision Making Process of Business Buyers.
 Case Study/Article for Analysis.
 Time Slot: 100 minutes.
Analyzing Business Markets:

 The ‘Business Market’ consists of all organizations that acquire goods and
services used in the production of other products or services that are sold,
 Rented or supplied to others.
 These Markets have:
 Fewer Large Buyers
 Close supplier-customer relationships.
 Professional Purchasing.
 Multiple Buying Influence
 Multiple Sales Calls
 Derived Demand.
Analyzing Business Markets:

 Inelastic Demand
 Fluctuating Demand
 Geographically concentrated Buyers.(Hubs)
 Direct Purchasing. Etc. 15 minutes
 BUYING SITUATIONS
 Straight Buy
 Modified Buy
 New Task.
 Class Tasks: Give examples of the three situations: 10 minutes/ 25 minutes
Slide 48: Case Study

 All Groups to prepare : Time : 60 minutes

 Faculty Intervention: 15 minutes: total 75minutes
 Business Market Analysis : Total Time: 100 minutes.
 End Session: 15.
Module 4
Session:16.Identifying Market
Segments&Targets
 Address the following : Discussion: 50 minutes
 Why is it important to Segment the Market?
 How can Segmentation be done?
 The Relationship between Segmentation and Target Markets?
 Eg: Group 1 : Automobiles/Group 2: Hotels/Resorts.
 Group 3: Fashion Garments:Group 4: Footwear
 Group 5: MBA Institutes Group 6:Liquor(Vodka)
 Group 7: MotorBikes Group(Brands Honda CB in Et 31.05), 8:Hindi Film Industry
 Group 9: Detergents Group10: Health Insurance.
 Faculty Intervention : 25 minutes End of Session 16.
Session 17: Intervention: 60 minutes./SM

 Types of Segmentation: Geographic (Nation:States: Region: Cities)

 Demographic Segmentation: age,family size,family lifecycle,gender income
occupation,education religion,race etc.
 Life Stage;Gender;
 Generations: Millennials (Gen Y). Born between 1997-1994.:Student
Ambassadors:Street Teams: Cool Events. Gen X: 1964-1978.Baby
Boomers:1946-1964.
 Grandparents/Parents/Current lot..
 Psychographic Segmentation: Vals Framework.
Session 18: Segmentation Variables for
Business Markets(Table:9.5 pg 283).
 Time : 30 minutes.
Session 19 20 21 22. Brand Positioning/Equity
Session :19

 We are looking at an Integration of Brand Positioning and Brand Equity in the next
4 sessions of our ‘Curriculum’
 As managers Integrating the two signifies the success Mantra. Eg. If a Brand is
perceived to be wrongly positioned it would not be able to create Equity for itself.
 Eg: Tata Motor : Passenger Cars.
 Air India
 UCO BANK.
 Coca Cola in India.
 Haldiram.
 Questions for Discussions: Comment on Positioning and Equity of these Brands in
the ‘Current Scenario’: Time: 20 minutes.
Brand Positioning:

 Case let discussion: Nespresso: pg 319.

 All Groups to prepare . Time: 20 minutes
 Case let discussion Phillips.Time 20 minutes
 SM intervention : 15 minutes ( Work for one complete session)
 End of Session 19.
Session:20

 Case Study: Café Coffee Day.

 Discussion: 60 minutes
 Open House Intervention: 15 minutes.
 End of Session 20.
 ALL GROUPS TO MAKE PRESENTATIONS: 10-12 slides.
Session 21.

 Case Study: Brittania Industries:

 Time: 60 minutes
 Open House :15 minutes.
 End of Session: 21
Session: 22&23&24..Addressing
Competition &Driving Growth.
 Questions to be addressed: Refer to text for a class discussion.

 Role of Competition

 Protection of the ‘Brand’: PLC

 Time: 10 minutes
Basics of Growth:

 Make the Core Brand as distinct as possible.

 Drive Distribution through both existing and new channels.

 Offer the core products in new formats and versions. Apple,Samsung, Etc.

Time :10 minutes.

Addressing Competition Driving Growth:

 5 Silos:
 Nestle vs Cadbury : Chocolates( 1vs 3)
 Maruti vs Hyundai: Entry level Segements( 2vs 4)
 Airtel vs JIO:( 5vs 7)
 HeroHondavs Honda (Motor Bikes: Specific Segments)( 6vs8)
 Exide vs Amron Batteries:(9vs10)
 Tasks:
 The Groups to take a position of the Leader or the Strong Contender of these
Segments
Session 22/23/24.

 Contd:
 Both Groups will work together to establish a statement for both the Entrants together.
 They will present this common statement with their respective viewpoints.
 They would then address : Their Strategy of Facing Competition & Driving Growth.
 Each team will prepare 10-15 slides and give a 30 minutes presentation back to back.(15
minutes each).
 Study Chaptor 12.of the Text to draw any inference.Also Paper/Articles on ‘Blue Ocean
Staegy’; BCG Matrix etc.
 Open House: 15 minutes.
 Time 45 minutes; Total time:225 minutes.
 Buffer: 15 minutes.Total : 240 minutes. 3.2 sessions
 This more or less covers the 24 sessions.
Conclusion

 What have we Learned so far: Open House:

 Thank You.