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Overview of Marketing Management

1.Market Analysis/Environment

2.Consumer Behaviour

3.Product Design

4.Advertising and Sales Promotion

5.Online/ Social Media/ Digital Media Marketing


L T P C
22PBA202 MARKETING MANAGEMENT
3 0 0 3
Prerequisite : Basic ideas of Business Management
Course Objectives :
Objective 1 To understand the basics of market, marketing, marketing environment and business
Objective 2 To Understand the core functional area of marketing.
Objective 3 To Familiarize the marketing strategies and take decisions.
Objective 4 To Impart key insights into the practical aspects of marketing.
Objective 5 To understand the core concepts in marketing concepts, critical thinking, problem solving an analysis.

Course Outcomes: At the end of the course the student will be able to
CO1 Understand the fundamentals and analyze core aspects of marketing.
CO2 Demonstrate the market segmentation and targeting to build knowledge on consumer behavior
CO3 Use creative, critical and reflective thinking to address organizational opportunities and to interpret the product and pricing decisions.

CO4 Identify the promotional aspects of marketing and modern marketing


CO5 Measure the marketing control and modern trends.
Unit 1 Introduction to Marketing 9
Marketing Concepts and tasks - Defining and delivering customer value and satisfaction - Value chain - Delivery network, Marketing environment- Digitalization and Customization - Changing marketing practices - Marketing Information
System - Strategic marketing planning and organization

Unit 2 Market Segmentation and Buying Behaviour 9


Market Segmentation: Levels - Importance -Procedures - Bases for Segmentation - Targeting Strategies - Positioning: Differentiation Strategies - Positioning Strategies -Individual Buyer Behavior: Model- Buying Decision Process - Buyer
Roles- Buying Influences

Unit 3 Product & Pricing Decisions 9


Creating value: The product – Goods & Services continuum – Classification & levels of product – Product decisions: Product Mix and Product Lines: Concepts - Product Life Cycle strategies – Brand concepts – Marketing of services –
Packaging & Labeling decisions – Warranties & Guarantees – New Product Development: Stages – New Product Success & Failure – Diffusion of innovation – Pricing policies & strategies – Factors affecting price determination – Steps
in setting the price.

Unit 4 Marketing Channels and Sales Promotion 9


Integrated marketing communication process and mix: Advertising, Sales promotion and Public relation decisions - Direct marketing – Telemarketing -Sales force: Objectives, structure, size and compensation.

Unit 5 Marketing Control & Modern Trends in Marketing 9


Concept, process & types of Marketing Control – Marketing Audit –Marketing Challenges in globalised era – Marketing through social network & digital platforms – Social marketing – Elements of social marketing plan – Green Marketing
– Consumerism

Total Hours : 45
Text Books :
[1]Philip Kotler, Kevin Lane Kellar, Abraham Koshy, and MithileswarJha, "Marketing Management “A South Asian Perspective”, Pearson Education
[2]Ramaswamy V.S. &Namakumari S, Marketing Management – Global Perspective,Indian context – MacMillan 4th edition
Reference Books :
[1]Louis W Stern, Adel I El Ansary, and Anne T Coughlan.,"Marketing Channel", New Delhi: Prentice Hall of India
[2]Naresh K Malhotra and Satyabhusan Dash, "Marketing Research - An Applied Orientation",New Delhi: Pearson

NPTEL Link
https://nptel.ac.in/courses/110107147
Unit-I

Introduction to Marketing

Marketing Concepts and tasks-Defining and delivering


customer value and satisfaction - Value chain – Delivery
network – Marketing environment - Digitalization and
Customization - Changing marketing practices-
Marketing Information System - Strategic marketing
planning and organization
What is a market?
• Markets are composed of:
– Buyers
– Sellers
– Institutions and infrastructure
– Others behind the scenes: importers,
processors, storage owners, wholesalers,
credit suppliers, government officials and
policies
• Markets are where buyers and sellers come
together to obtain information and exchange
commodities.
Meaning
• Markets are where buyers and sellers come
together to obtain information and exchange
commodities.
• A market is said to be functioning well when
goods flow into the market in times of deficit
and out in times of surplus, via private trading.
Custome
r

Retailer

Wholesale
r

Processor In a Market Chain


commodities flow
Farmer from producers
to consumers
Classification of Market
1. Local Market
• The market limited to a certain place of a
country is called local market.
• This type of market locates in certain place of
city or any area and supplies needs and wants
of the local people.
• Perishable consumer products such as milk,
vegetables, fruits, etc are sold and bought in
local markets.
2. Regional Market
• The market which is not limited to a certain
place but expanded in regional level is called
regional market.
• Mostly, food grains such as wheat, paddy,
maize, millet, sugar, oil etc are bought and sold
in such regional market.
3. National Market
• If buying and selling of some products is
done in the whole nation, this is called
national market.
• The products such as clothes, steel, cement,
iron, tea, coffee, soap, cigarette, etc are
bought and sold nationwide.
4. Wholesale Market
• If a large quantity of products are purchased
from producers and sold to different retailers,
this is called wholesale market.
• In wholesale market, the products are not
sold directly to ultimate consumers. But, if
consumers want to buy in large quantity, they
can buy from wholesaler.
5. Retail Market
• The market that sells small quantity of
products directly to ultimate consumers is
called retail market.
Scope – What do we market
🡺 Goods
🡺 Services
🡺 Events
🡺 Experiences
🡺 Personalities
🡺 Properties
🡺 Information
🡺 Ideas and concepts
Marketing
Marketing is the process of planning and
executing the conception, pricing, promotion,
and distribution of ideas, goods, services to
create exchanges that satisfy individual and
organizational goals
American Marketing Association
Definition
• Marketing is a Social and Managerial Process
by which individuals and groups obtain what
they need and want through creating and
exchanging value with others.
Marketing Management
• 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.
Simple Marketing System
Communication

Goods/services
Industry Market
(a collection (a collection
of sellers) of Buyers)
Money

Information
21
Difference Between - Sales & Marketing ?
Sales
Trying to get the customer to want what the
company produces.

Marketing
Trying to get the company produce what the
customer wants.
Difference Between Sales and Marketing
Objectives of Marketing Management
1.Creating New Customers
2.Satisfying the needs of Customers
3.Enhancing the Profitability of the Business
4.Raising the Standard of living of the people –
Production of wide variety of goods and
services for satisfying customer’s needs
5.Building and retaining Long term relationship
with customers
Important Features of Marketing
1. Marketing is aimed at finding out consumer needs
and meeting these needs.
2. Marketing must consider profit as its main
objective.
3. Marketing is ongoing all the time. The marketing
process has no start or end.
4. Businesses must be prepared to respond to the
consumer reactions and changes all the time.
Importance of Marketing
1.Marketing Helps in Transfer, Exchange and
Movement of Goods
2.Marketing Creates Employment
3.Marketing as a Source of Income and Revenue
4.Marketing Acts as a Source of New Idea
5.Marketing Is Helpful In Development Of An
Economy
Functions of Marketing
1.Gathering and Analyzing Market Information
2.Marketing Planning
3.Product Designing and Development
4.Standardization and Grading
5.Packaging and Labelling
6.Branding
7.Customer Support Service
8.Pricing of Products
9.Promotion & Physical Distribution
10.Transportation& Warehousing
Defining and delivering customer value and
satisfaction
Customer value
• Customer value is best defined as how much a
product or service is worth to a customer.
• It's a measure of all the costs and benefits
associated with a product or service.
• Examples include price, quality, and what the
product or service can do for that particular
person.
Customer value
• Customer value is present when
the benefits offered by a product are more than
the costs used to acquire that product.
• Customer Value is the incremental benefit
which a customer derives from consuming a
product after paying in return.
• Customer value can be determined by
subtracting total customer costs from total
customer benefits.
Customer Value Parameters
Customer satisfaction
• Customer satisfaction refers to the evaluation
by customers of how well the value was
delivered by the product, i.e. did the product
deliver the value that they expected to receive
from it?
• Hence, it takes place after the customer has
purchased the product.
Difference between customer value and
customer satisfaction
1. Meaning
• Customer value is the difference between the
total benefits expected from a product/service
and the total costs incurred to obtain that
product or service.
• On the other hand, customer satisfaction
refers to the difference between the actual
performance experienced by a customer and
the expectation of the customer.
2. Type of process
• Customer value is a proactive process as it
takes place before the customer has actually
experienced the product, i.e. it is the pre
purchase assessment of a product by a
customer.
• In contrast, customer satisfaction is a reactive
process, which is basically the difference
between the expectation of the customer and
the experience of the customer after using that
product/service.
3. Concept
• Customer value is evaluated from the point of
view of customers.
• Customer satisfaction, however, is an emotional
concept as it pertains to the feelings of
customers. We determine how satisfied we are
from a purchase on the basis of our experience
of using that product/service.
4. Computation
• Customer value is determined by simply
subtracting total costs from benefits and can be
described in monetary terms.
• Customer satisfaction is measured in
qualitative terms as subtracting actual
performance from the expected performance is
more subjective in nature. It involves emotions
and is difficult to quantify.
Value Chain – Delivery network
What Is a Value Chain?
• A value chain is a series of consecutive steps
that go into the creation of a finished product,
from its initial design to its arrival at a
customer's door.
• The chain identifies each step in the process at
which value is added, including the sourcing,
manufacturing, and marketing stages of its
production.
• A value chain is a step-by-step business model
for transforming a product or service from idea
to reality.
• Value chains help increase a business's
efficiency so the business can deliver the most
value for the least possible cost.
• The end goal of a value chain is to create a
competitive advantage for a company by
increasing productivity while keeping costs
reasonable.
• The value-chain theory analyzes a firm's five
primary activities and four support activities.
Primary Activities
• Inbound logistics include functions like receiving,
warehousing, and managing inventory.
• Operations include procedures for converting raw
materials into a finished product.
• Outbound logistics include activities to distribute a
final product to a consumer.
• Marketing and sales include strategies to enhance
visibility and target appropriate customers—such as
advertising, promotion, and pricing.
• Service includes programs to maintain products and
enhance the consumer experience—like customer
service, maintenance, repair, refund, and exchange.
Support Activities
• Procurement concerns how a company obtains raw
materials.
• Technological development is used at a firm's
research and development (R&D) stage—like
designing and developing manufacturing techniques
and automating processes.
• Human resources (HR) management involves
hiring and retaining employees who will fulfill the
firm's business strategy and help design, market, and
sell the product.
• Infrastructure includes company systems and the
composition of its management team—such as
planning, accounting, finance, and quality control.
Delivery Network
• It is a network that is made up of the company,
its suppliers, its distributors, and ultimately its
customers who partner with each other
to improve the performance of the entire
system to deliver the customers value.
• “Value delivery network is a part of the
supply chain of a company and includes all its
direct participants involved in the production,
distribution, marketing, customer service, etc.
Marketing Environment
Meaning
• Marketing activities are influenced by several
factors inside and outside a business firm.
• These factors or forces influencing marketing
decision making are collectively called
marketing environment.
Marketing Environment
Definition
• According to “Philip Kotler” A company’s
marketing environment consist of the internal
factors and forces, which affect the company’s
ability to develop & maintain successful
transaction & relationship with the company’s
target customer’s.
Marketing Environment
Marketing Environment
• Micro environment: These are internal factors,
which the organization can control.

• Macro environment: (PEST factors): These are


external forces which the organization does not
have direct control over these factors.
Marketing Environment
Actors in the Micro Environment
1. The Company
•Top management
•Finance
•R&D
•Purchasing
•Operations
•Accounting
2. Suppliers
• Provide resources needed to produce goods
and services.
• Suppliers can influence the profit of an
organization because the price of raw material
determines the final price of the product.
• Organizations need to monitor suppliers on a
regular basis to know the supply shortages and
change in the price of inputs.
3. Marketing Intermediaries
– Help the company to promote, sell, and
distribute its goods to final buyers
• Resellers
• Physical distribution firms
• Marketing services agencies
• Financial intermediaries
4. Competitors
• Firms must gain strategic advantage by
positioning their offerings against competitors’
offerings.
• It helps an organization to differentiate its
product to maintain position in the market.
• Competition refers to a situation where various
organizations offer similar products and try to
gain market share by adopting different
marketing strategies.
5. Publics
• Any group that has an actual or potential
interest in or impact on an organization’s
ability to achieve its objectives.
• The business has some social responsibility
towards the society in which it is operating.
Thus, all marketing activities should be
designed to increase society’s welfare as a
whole.
6.Customers
• Customer markets consist of individuals and
households that buy goods and services for
personal consumption.
• Every business revolves around fulfilling the
customer’s needs and wants. Thus, each
marketing strategy is customer oriented.
• It focuses on understanding the need of the
customers and offering the best product that
fulfils their needs.
The Macro environment
• The company and all of the other actors
operate in a larger macro environment of
forces that shape opportunities and pose
threats to the company.
The Company’s Macro environment
1. Demographic Environment
• Demography is the study of human
populations in terms of size, density, location,
age, gender, race, occupation, and other
statistics.
2. Economic Environment
• Economic environment consists of factors that
affect consumer purchasing power and
spending patterns.
3. Natural Environment
• Natural environment involves the natural
resources that are needed as inputs by
marketers or that are affected by marketing
activities.
• The environment includes the sun, soil, water,
air and Climatic conditions.
4. Technological Environment
• The technological environment constitutes
innovation, research and development in
technology, technological alternatives.

5. Political Environment
• Political environment consists of laws,
government agencies, and pressure groups that
influence or limit various organizations and
individuals in a given society
6. Cultural Environment
• Cultural environment consists of institutions
and other forces that affect a society’s basic
values, perceptions, and behaviors.
• Examples include culture, traditions, beliefs,
norms, etc.
The marketing environmental analysis will help
the marketer to:
1.Become well acquainted with the changes in
the environment.
2.Gain qualitative information about the business
environment; which will help him to develop
strategies in order to cope with ever changing
environment.
3.Conduct marketing analysis in order to
understand the markets needs and wants so as
to modify its products to satisfy these market
requirements.
4. Allocate its resources effectively and diversify
either into a new market segment or totally
into a new business which is outside the scope
of its existing business.
5. Identify the threats from the environment in
terms of new competitors, price wars,
competitor’s new products or services, etc.;
and prepare its strategies on the basis of that.
6. Identify its weaknesses such as lower quality
of goods or services; lack of marketing
expertise; or lack of unique products and
services; and prepare strategies to convert its
weaknesses into strengths.
7. Identify its strengths and fully exploit them in
firm’s advantage. These strengths can be in
terms of marketing expertise, superior
product quality or services, or giving unique
innovative products or services.
Digitalization and Customization
Digitalization
Digitalization
• Digitalization is the use of digital technologies
to alter a business model and generate new
revenue and value; it is transitioning to a digital
business.
The Advantages of Digitalization in Marketing
• Digitalization in Marketing can facilitate global trade
and settlement.
• Digital platforms connect buyers and sellers directly,
eliminating the need for a middleman.
• The youth are encouraged by digital platforms.
• Marketing and advertising costs are lower – Small
businesses can easily implement them without
breaking the bank to manage advertising for their
products and services.
• The results are more quantitative. You can now
answer the question, “Which half of your advertising
spend brings you results?”
The Impact of Digitalization in Marketing
1. Prompt Customer Feedback
2. Planning for the Short Term
3. Customers are easily accessible through digital
marketing channels.
4. Referrals and a large client base with a small
budget
5. More Effective Digital Branding
6. Increased Productivity through E-Learning
7. Increased Customer Satisfaction
Customization
What is customization?
• Customization refers to the action of altering a
product or service to suit a person’s or
company’s preferences or requirements.
• We can also use the term when we modify
something for a specific task.
• The focus is more on altering an existing
service, product, or experience to suit one
specific consumer or a group of them. The
customer is guiding the changes.
What is customization?
• Product customization refers to enabling
customers to personalize a product according
to their needs and preferences.
• Add ons, exclusive functionalities, templates,
and flexibility with product design all count as
different forms of personalization.
4 ways customized products impact customer
satisfaction
1. Cater to different customers’ requirements
2. Gain loyal customers
3. Understand your customers better
4. Boost sales and business success
Changing Marketing Practices
1. Find Out Where Your Customers Are
2. Be Available
3. Respond Quickly and with meaning
4. Understand their goals and help them make
informed decisions
5. Collaborate with your customers to create
value
6. Add a personal touch
7. Build Credibility
8. Measure and refine
The Best Marketing Practices

1.Meeting Customer Needs

2.Picking the Right Price

3.Access

4.Effective Promotion
Changing Marketing Practices

1. Introducing new products and packaging.

2. Developing new advertising and promotional


programs.

3. Retraining salespeople.

4. Product Research and Development.


Marketing Information System
Meaning
• A marketing information system, or an MIS,
is a system for gathering, storing, analyzing
and distributing valuable marketing data to
help marketers make better decisions.
• The input of a marketing information system
focuses on collecting relevant internal and
external data to analyze and interpret.
Definition

• The Marketing Information System refers to


the systematic collection, analysis,
interpretation, storage and dissemination of
the market information, from both the internal
and external sources, to the marketers on a
regular, continuous basis.
Components of Marketing Information
System
1.Internal Records
• The Company can collect information through
its internal records comprising of sales data,
customer database, product database, financial
data, operations data, etc.
• The information can be collected from the
documents such as invoices, transmit copies,
billing documents prepared by the firms once
they receive the order for the goods and
services from the customers, dealers or the
sales representatives.
2.Marketing Intelligence System
• The marketing intelligence system provides the
data about the happenings in the market, i.e.
data related to the marketing environment
which is external to the organization.
• It includes the information about the changing
market trends, competitor’s pricing strategy,
change in the customer’s tastes and
preferences, new products launched in the
market, promotion strategy of the competitor,
etc.
3. Marketing Research
• The Marketing Research is the systematic
collection, organization, analysis and
interpretation of the primary or the secondary
data to find out the solutions to the marketing
problems.
• Several Companies conduct marketing
research to analyze the marketing
environment comprising of changes in the
customer’s tastes and preferences,
competitor’s strategies, the scope of new
product launch, etc.
4. Marketing Decision Support System:
• It includes several software programs that can
be used by the marketers to analyze the data,
collected so far, to take better marketing
decisions.
• With the use of computers, the marking
managers can save the huge data in a tabular
form and can apply statistical programs to
analyze the data and make the decisions in line
with the findings.
Why is a marketing information system
important?
1. A thorough analysis of demand and supply
2. Increased competitiveness and your market share
3. Identifying business development opportunities
4. Implementing consumer-oriented approach
5. Identifying and managing business risks
6. Improving the overall marketing strategy of your
company
7. Keeping an eye on your competition
8. Better control of all marketing operations
Strategic Marketing Planning and Organization
• Strategic marketing planning is the process of
writing and following a plan to reach a specific
marketing goal.
• Companies may develop strategic marketing
plans to increase revenue and profits, achieve
greater visibility, discourage competitors or
improve their appearance through a total
rebranding.
• Management and operations teams work
together to identify the goal, outline the steps,
assign tasks and measure the success of the
effort.
• They may revise their steps over time, but they
begin with a research-backed, practical plan in
place.
Definition
• Market-oriented strategic planning is the
managerial process of developing and
maintaining a viable fit between the
organisation’s objectives, skills, and resources
and its changing market opportunities.
• Strategic Marketing Planning – “Without a
strategy, the organisation is like a ship without
a rudder” – Joel Ross and Michael Kami
Steps in Strategic Marketing Plan
1. Find your starting place
2. Conduct market research
3. Define a target audience
4. Set a measurable goal
5. Get budget approval
6. Decide on a mix of strategies
7. Craft a detailed schedule and begin
Essential Steps for a Successful Strategic
Marketing Process
1. Mission
2. Situation Analysis
3. Marketing Strategy/Planning
4. Marketing Mix
5. Implementation and Control
Unit – 1
PART B
1.Marketing environment
2.Digitalization and Customization
3.Practices in Marketing( Changes)
4.Marketing Information System
5.Strategic marketing planning

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