Business management

• Business management is managing the

coordination and organization of
business activities. This typically
includes Human resource, Finance,
Marketing, Human resource, Operations
(the production of materials, money, and
machines) and IT systems.

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 Marketing
• 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.

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Development of the Marketing
Concept
Production
Concept

Product Concept

Selling Concept

Marketing
Concept

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 The Production Concept
• Assumes that consumers are
interested primarily in product
availability at low prices
• Marketing objectives:
– Cheap, efficient production
– Intensive distribution
– Market expansion

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 The Product Concept
• Assumes that consumers will buy the
product that offers them the highest
quality, the best performance, and the
most features
• Marketing objectives:
– Quality improvement
– Addition of features
• Tendency toward Marketing Myopia

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 The Selling Concept
• Assumes that consumers are unlikely
to buy a product unless they are
aggressively persuaded to do so
• Marketing objectives:
– Sell, sell, sell
• Lack of concern for customer needs
and satisfaction

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 The Marketing Concept
• Assumes that to be successful, a
company must determine the needs
and wants of specific target markets
and deliver the desired satisfactions
better than the competition
• Marketing objectives:
– Make what you can sell
– Focus on buyer’s needs

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 The Marketing Concept
Implementing the
Marketing Concept
• Consumer • The process and
Research tools used to study
• Segmentation consumer behavior
• Targeting • Two perspectives:
• Positioning – Positivist approach
– Interpretivist
approach

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 The Marketing Concept
Implementing the
Marketing Concept
• Consumer • Process of dividing
Research the market into
• Segmentation subsets of
• Targeting consumers with
common needs or
• Positioning
characteristics

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 The Marketing Concept
Implementing the
Marketing Concept
• Consumer The selection of one
Research or more of the
• Segmentation segments to pursue
• Targeting
• Positioning

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 The Marketing Concept
Implementing the
Marketing Concept
• Consumer • Developing a distinct image
Research for the product in the mind
of the consumer
• Segmentation
• Successful positioning
• Targeting includes:
• Positioning – Communicating the
benefits of the product
– Communicating a unique
selling proposition
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Societal Marketing Concept
Marketers adhere to principles of social
responsibility in the marketing of their
goods and services; that is, they must
endeavor to satisfy the needs and
wants of their target markets in ways
that preserve and enhance the well-
being of consumers and society as a
whole.

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 The Marketing Mix
• Product
• Price
• Place
• Promotion

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 Consumer Behavior
The behavior that consumers display in
searching for, purchasing, using,
evaluating, and disposing of products
and services that they expect will satisfy
their needs.

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 Personal Consumer
The individual who buys goods and
services for his or her own use, for
household use, for the use of a family
member, or for a friend.

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 Organizational Consumer
A business, government agency, or other
institution (profit or nonprofit) that buys
the goods, services, and/or equipment
necessary for the organization to
function.

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 Significance of Consumer
Behaviour
• Helps marketers to get information about products?
• Helps marketers to assess alternative products?
• Helps to understand why different people choose or
use different products?
• How do they decide on value for money?
• How much risk do they take with what products?
• Who influences their buying decisions and use of
the product?
• How are brand loyalties formed, and changed?

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Successful Relationships

Customer Customer
Value Retention

Customer
Satisfaction

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 Successful Relationships
Value, Satisfaction,
and Retention
• Defined as the ratio between
• Customer
the customer’s perceived
Value benefits and the resources
• Customer used to obtain those
Satisfaction benefits
• Perceived value is relative
• Customer
and subjective
Retention
• Developing a value
proposition is critical

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 Successful Relationships
Value, Satisfaction,
and Retention
• Customer • The individual's perception of
the performance of the product
Value
or service in relation to his or
• Customer her expectations.
Satisfaction • Customers identified based on
• Customer loyalty include loyalists,
apostles, defectors, terrorists,
Retention
hostages, and mercenaries

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 Successful Relationships
Value, Satisfaction,
and Retention
• The objective of providing value
• Customer is to retain highly satisfied
Value customers.
• Customer • Loyal customers are key
Satisfaction – They buy more products
• Customer – They are less price sensitive
Retention – They pay less attention to
competitors’ advertising
– Servicing them is cheaper
– They spread positive word of
mouth
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Customer Profitability-Focused
Marketing
• Tracks costs and revenues of
individual consumers
• Categorizes them into tiers based on
consumption behavior
• A customer pyramid groups customers
into four tiers

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Customer Profitability-Focused
Marketing

Tier 1: Platinum
Tier 2: Gold
Tier 3: Iron
Tier 4: Lead

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Impact of Digital Technologies
• Consumers have more power and access to
information
• Marketers can gather more information about
consumers
• The exchange between marketer and
customers is interactive and instantaneous
and goes beyond the PC.
• Marketers must offer more products and
services

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 Consumer Behavior Is
Interdisciplinary
• Psychology
• Sociology
• Social psychology
• Anthropology
• Economics

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A Simplified Model of Consumer
Decision Making – Figure 1-1

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 Key Factors/ Aspects of
Consumer Behaviour
1. The consumer decision making
models
2. Psychological influences
3. Socio-cultural influences
4. Marketing influences
5. Political, Technical, Economic etc
influences (PESTEL framework)

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 Relevance of Market
Research
• Marketing Research vs. Market Research
• You will find that these terms often are used interchangeably,
but technically there is a difference.

• Market research deals specifically with the gathering of

information about a market’s size and trends.

• Marketing research covers a wider range of activities. While it

may involve market research, marketing research is a more
general systematic process that can be applied to a variety of
marketing problems.

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 Three key questions to answer at the problem/opportunity
definition stage

• 1. Why is the information being sought? (1) Make sure what

conclusions you want to get and you will know what
information you will need (backward approach). (2) If I omit this
piece of information, what will happen?
• 2. Does the information already exist? Secondary data, internal
data are sufficient? Or we have to acquire primary, external
data?
• 3. Can the question really be answered? It suggests that you
have to know your limitations. You may find difficulties in
finishing your research if: (1) the problem is too broad, too
complicated. (2) Involve tremendous resource input. (3) The
environment is too unstable, (4) The issue is too sensitive etc.

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J-component – Review I- 20 Marks
• Choose a product or
a service. Discuss its
present available
variants, target
market, positioning
strategy, market
share and its prime
competitors.

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J-component – Review II- 30 Marks
• Collect 50 customer reviews for
the chosen product/ service
either from the online media or
off line customer interviews.
From the reviews, identify the
customer needs, their pain
points, an opportunity to
satisfy the customers in new
ways or an perceived idea to
achieve higher degree of
personalization of the product/
service for the customers.

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J-component – Review III- 50 marks
• Based on the needs/ pain points/
opportunity/ idea identified plan
to launch a new product or
upgrade the existing product.
Accordingly Plan the 4P's of a
product or 7P's of a service
considered for this project. At
the end discuss the relevant Key
Performance Indicators (KPI's)
to measure the success of the
new or upgraded variants of the
chosen product/ service.

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