Marketing Management

Market
 The market actually refers to a set up where potential buyers and
sellers can meet to exchange goods or services. It is basically a
medium that facilitates these transactions in an economy. It allows
for the exchange of goods, services, information under
the protection of the law and generally in exchange for
consideration.
 Two parties are generally needed to make a trade. But, at minimum,
a third party is required to introduce competition and bring balance
to the market.
Marketing?
 Marketing refers to activities a company undertakes to promote the
buying or selling of a product or service. Marketing includes
advertising, selling, and delivering products to consumers or other
businesses. Some marketing is done by affiliates on behalf of a
company.
CORE CONCEPTS OF MARKETING: Needs, wants, and
demands; products (goods, services and ideas); value, cost and
satisfaction: exchange and transaction: relationships and
networks: markets: and marketers and prospects.
a) Needs :Describe basic human requirements such as food, air,
water, clothing, and shelter.
b) Want: Needs become wants when they are directed to specific
objects that might satisfy the need.
c) Demand : Are wants for specific products backed by an ability
to pay.
d) Product: is any offering that can satisfy a need or want, such as
one of the 10 basic offerings of goods, services, experiences,
events, persons, places, properties, organizations, information,
and ideas.
e) Value: As a ratio between what the customer gets and what he
gives. The customer gets benefits and assumes costs.
F) Exchange : Exchanges are carried out by business
firms, and also by no business organizations and even
individuals.
Four conditions must exist for an exchange to be able
to occur: – Two or more people or organizations must
be involved.
– The parties must be involved voluntarily.
– Each party must have something of value to
exchange, and the parties must believe they will each
benefit from the exchange.
– The parties must be able to communicate with each
other.
g) Marketing Channels: To reach a target market, the
marketer uses three kinds of marketing channels.
Communication channels deliver messages to and
receive messages from target buyers. They include
newspapers, magazines, radio, television, mail,
telephone, billboards, posters, fliers, CDs,
audiotapes, and the Internet. Beyond these,
communications are conveyed by facial expressions
and clothing, the look of retail stores, and many
other media. Marketers are increasingly adding
dialogue channels (e-mail and toll-free numbers) to
counterbalance the more normal monologue
channels (such as ads).
• The marketer uses distribution channels to display or
deliver the physical product or service(s) to the buyer
or user. There are physical distribution channels and
service distribution channels, which include
warehouses, transportation vehicles, and various trade
channels such as distributors, wholesalers, and
retailers. The marketer also uses selling channels to
effect transactions with potential buyers. Selling
channels include not only the distributors and retailers
but also the banks and insurance companies that
facilitate transactions. Marketers clearly face a design
problem in choosing the best mix of communication,
distribution, and selling channels for their offerings.
Why Is Marketing So Important? Irrespective of whether
you are a business owner or a working professional, there
are several critical questions that you should be asking
yourself. For example – Are you aware of the needs of
your customers? Do you think customers trust your
products? Have you observed any of the messages or
posts that the customers make about your products and
services
• Marketing is important for a few reasons. First, marketing
campaigns may be the first time a customer interacts or is
exposed to a company's product.
• A company has the opportunity to educate, promote, and
encourage potential buyers.
• Marketing also helps shape the brand image a company
wants to convey.
• Effective consumer engagement: Businesses must engage
customers, and herein, marketing proves to be an effective
tool. Customers can be engaged by telling them what they
do not know and creating good content around your
products and services.
• Building and maintaining reputation: The reputation of
your business depends on how it grows and what its lifespan
is. This is where marketing comes across as a way to build
the brand equity of businesses. And this happens when the
expectations of the customers are met.
• Building relationships between customers and business:
For any business to grow, it must build a long-lasting
relationship with its customers. Marketing is based on
demographics, psychographics, and consumer behaviour
and therefore, gives an understanding of what customers
want.
• Boosting sales: Since marketing utilizes different
ways to promote products or services, it helps in
increasing the likelihood of better sales. Happy
customers translate into a company’s brand
ambassadors automatically.
• Staying relevant: Marketing helps a business to
remain relevant to the customers and in its domain. It
helps in maintaining good relationships.
• Making informed decisions: The basic questions that
every business has are around the how’s and why’s of
producing products or delivering services. This
underscores the importance of marketing for
businesses and the fact that it links a business and
society.
• What Is the Purpose of Marketing?
• An important goal of marketing is propelling a
company’s growth. This can be seen through
attracting and retaining new customers. 
•  Companies may apply a number of different
marketing strategies to achieve these goals. For
instance, matching products with customers' needs
could involve personalization, prediction, and
essentially knowing the right problem to solve. 
•  Another strategy is creating value through the
customer experience. This is demonstrated through
efforts to elevate customer satisfaction and remove
any difficulties with the product or service.
• The American Marketing Association has
defined marketing as “an organizational
function & a set of processes for creating,
communicating & delivering value to the
customers & for managing customer
relationships so as to benefit the organization
& the stake holders”.
• According to Philip Kotler, “Marketing is the
science and art of exploring, creating, and
delivering value to satisfy the needs of a target
market at a profit”
 Marketing Mix Definition:

The marketing mix. It is about putting the right

product i.e product development decisions,
thereof in the place i.e. product distribution
decisions, at the right time ie product
promotional decisions. , and at the right price
i.e. product pricing decisions.

The difficult part is doing this well, as

organization need to know every aspect of their
business plan.
Elements of the Marketing
• In case of services, however, there are
alternatives approaches suggested by various
authors. They have suggested the need for an
expansion of these four classic ingredients.
Over a time the special needs of services have
led to the extension of the mix to seven
P’s. The additional 3 P’s listed below are
known as the extended service mix or
augmented service mix. 5. People 6.
Physical evidence 7. Process
• A Product means an object which satisfies the need of the
customer. Thus fan, table, pen, chair etc. are products. In its
wider concept all the brands, all the packaging, all the colors
or all the designs of a product is taken to be different
products. for example, if a toothpaste is produced in three
different sizes, these are three products because they satisfy
needs of different customers. In a marketing mix, product
considerations involve every aspect of what you're trying to
sell. This includes:
• Design
• Quality
• Features
• Options
• Packaging
• Market positioning
Price The price is a key element of the marketing mix;
it must be acceptable to target Customers and it must
reflect the other components of the mix accurately.
Many factors go into a pricing model.
• Price a product higher than competitors to create the
impression of a higher-quality offering.
• Price a product similar to competitors, then draw
attention to features or benefits other brands lack.
• Price a product lower than competitors to break into a
crowded market or attract value-conscious consumers.
• Plan to raise the price after the brand is established or
lower it to highlight the value of an updated model.
• Place
• Where will you sell your product? Here are some
considerations when it comes to place:
• Where will people be looking for your product?
• Will they need to hold it in their hands?
• Will you get more sales by marketing directly to
customers from your own e-commerce website,
or will buyers be looking for you on third-party
marketplaces?
• Do you want to converse directly with your
customers as they purchase, or do you want a
third party to solve customer service issues?
• Promotion The word ‘promotion’ is derived
from the Latin word ‘promovere’, meaning ‘an
Attempt to shift the attention of people from
one end of the spectrum to the other’. Service
marketers have used this marketing tool to
great advantage in positioning Their service,
adding tangibility and value to their offer.
Promotion is used Temporary tool and is
communication oriented.
• People ‘People’ as the fourth element in the
services marketing mix applies not only to
Service personnel, but also recognizes the role
that other people- the customers- Play in
service delivery. Sometimes the role of the
customer is an important part of the service
itself, as in education, for example, where the
students must follow The learning programme
or in car hire where the benefit – transportation
– can only Be achieved through the customer’s
driving.
• Packaging
• A company's packaging catches the attention of new buyers in a
crowded marketplace and reinforces value to returning
customers. Here are some ways to make your packaging work
harder for you:
• Design for differentiation. A good design helps people
recognize your brand at a glance, and can also highlight
particular features of your product. For example, if you’re a
shampoo company, you can use different colors on the
packaging to label different hair types.
• Provide valuable information. Your packaging is the perfect
place for product education or brand reinforcement.
• Add more value. Exceed expectations for your customers and
give them well-designed, branded extras they can use, like a
free toothbrush from their dentist, a free estimate from a roofer,
or a free styling guide from their hairdresser.
 Scope of Marketing
• Study of Consumer Wants and Needs
• Study of Consumer behaviour
• Product Planning and development
• Branding
• Packaging
• Channels of Distribution
• Pricing Policies
• Sales Management
• Promotion
• After Sales services
1- Marketing Research:
Though products and services were the starting point under
traditional marketing, modern marketing starts with an
analysis of the various aspects of market and related areas. It
includes an analysis of nature and types of customers, size
of market, customer attitude, buyer behaviour etc. An in-
depth analysis of customers and markets is a prerequisite for
every marketer to have a successful marketing.
2- Products and Services:
Products and Service are the basic element of marketing. If
there is no product there is no marketing. It is concerned
with the nature and type of products, product quality and
design, product planning and development, product
decisions relating to branding, labelling, packaging,
trademarks etc.
3-Channel of Distribution:
The pathway through which the goods move from producer to
consumer. It includes a number of intermediaries like
wholesaler, retailers, jobbers etc. Channels by moving the goods
help in transferring the ownership of goods from seller to buyer.
4-Physical Distribution:
The physical movement of the goods from producer to consumer
is physical distribution. It includes transportation, warehousing,
inventory control and management, order processing etc.
5-Promotional Decisions:
Howsoever good a product is, it has no value if it is not properly
promoted. Promotion has the basic objective of informing the
market about product availability and creating a demand for it.
Different promotional tools are there like advertising, sales
promotion, personal selling, publicity, public relations etc.
6- Pricing Decisions:
This is the only element of marketing which generates revenue
for the firm. Pricing is concerned with pricing policies and
strategies, price determination, discounts, commissions etc.
7-Environmental Analysis:
An analysis of the environment in which the business is to be
carried out is the first step for any organisation. The various
macro and micro factors should be studied beforehand only to
develop an understanding of the strength, weaknesses,
opportunities and threats, for an organisation.
8-Consumer Behavior:
In this, the marketer studies and analyzes how consumers
respond to a particular product or service? Every consumer is
different and unique in nature, therefore consumers have to be
studied in a group as well as individually in order to understand
their behavior and satisfy them accordingly.
 Marketing Vs. Sales
Items Sales Marketing

“The exchange of
“The activity, and processes
commodities for money;
for creating, communicating,
the action of selling
Definition delivering, exchanging
something.” That’s how
offerings that have value for
the Oxford Dictionary
customers.”
defines sales.

Marketing involves a range

The primary objective of of activities from selling to
sales is to match the distributing. Its main
Objective
expectations of the objective is to sell a
customers. company’s goods and
services.

The main focus is to
Focus increase sales and
maximise revenue.
Duration Short-term process.
Sales involve a
substantial investment.
Interestingly, sales is the
Cost
business process that
generates revenue for the
business.
Marketing’s primary focus is to
increase customer satisfaction. It
also aims at promoting goods
and services, pricing them, and
making them available to
customers. It also focuses on
after-sales services.
Long-term and continuous
process.
Marketing is cost-intensive.
From advertising to logistics,
every marketing function is
costly.
 Consumer Market And Industrial Market
1.Consumer Market
It is a market that involves the sale of goods/services to the
end-users. So, if you are selling, say books, groceries, bags, or
shoes, that are purchased by customers who are going to use
or consume it finally, then you are in the consumer market.
2.Industrial Market
It is a factor market that involves the sale of unfinished or
semi-finished goods that are used by buyers as a raw material
in their production process. For example - when a
manufacturer of large toy-making machinery sells it to another
business who uses this machinery to produce and sell toys in
the market, then these businesses are in the industrial market.
 So what are the differences?
Longer Sales Cycles
One of the most immediately obvious differences is the
longer sales cycle. Consumers often make purchases
on the spot, or with less than a few days consideration.
Industrial purchases are different. Buyers make
calculated decisions, often after a lengthy review process,
analysis, and comparison between similar products.
Buying in Teams
In consumer marketing, sellers generally market their
products at an individual. This can be challenging.
Industrial buying decisions are rarely made by a single
person. Instead, teams of people are usually involved in
the decision-making process (this is another reason for
the longer buying cycle).
Technical Specs, Not Emotions
Effective consumer marketing encourages us to make purchases
based on emotion. That doesn’t work in industrial marketing.
Industrial buyers are thirsty for information and specifications.
They are experts in their field and are very knowledgeable
about the products and services they need. Buyers want to know
exactly what a product is capable of, why it is an improvement,
and how it will fit into their existing systems. Plain and simple.
Target Audience
Industrial marketers are Professional and trained business
owners who use the product of your industrial company as a
factor of production, i.e. as an input in their production process.
I consumer marketing End-users who purchase the product or
avail the services for final consumption and gratification.