Greater Noida

Module Manual

Basics of Marketing
Academic Year: PGDM 20112013

Module Leader : Prof. Sujit Sengupta/ Sonia Takkar

INTRODUCTION TO THE TUTORS Anurupa Singh

S No 1.

Course Tutors Dr Anurupa B Singh

Email id anurupa.singh@iilmgsm.ac.in
http://iilmgsm.ac.in/faculty/Anu rupaSingh.html

INTRODUCTION TO THE COURSE

The origin of modern marketing can be traced to the Industrial Revolutions that took place in Britain around 1750 and in the USA and Germany around 1830. Advances in production and distribution, and migration of rural masses to urban areas created the potential for large scale markets. As business people sought to exploit these markets, the institutions of marketing such as advertising media and distribution channels began to grow. In India as well, since the dawn of consumerism propelled by the liberalization and privatization by the Government of India in 1991, marketing has become the front running functionality of all organizations which hope to reach out to customers in any which way. Modern retail, and therefore modern distribution channels have evolved, though not in a very systematic way yet. Advertising, Public relations, sales promotion, publicity, et al have evolved and are used in conjunction with host of pricing strategies to lure the customer. While reading the above lines you would have come across a number of technical terms used very commonly in the world of management. These are called management parlance. While they are rather complicated terms at a first glance, this course will equip you enough to move ahead in your management classes and use these words confidently for all your discussions and dissertations. Try to imagine a world where people are producing for themselves and choose not to depend on others. This would be a very far-fetched world and rather impossible to even survive in. It is not possible for every human being to produce for themselves. Here comes the role of organizations. Organizations are manufacturing commodities & producing services and are also trying to sell them in the market place. There are products like bread, butter, jam and then there are services like banking, tourism and education. All these need an institution that would package them and present them in front of customers in such a way that they would be picked by all who see it. The activities revolving around designing the product, deciding the price for the same, retailing them and simultaneously promoting them using different tools, form the essence of marketing. The key marketing activity is the management of a companys marketing mix, comprising 4Ps: Product, Price, Place & Promotion. This course will take you through the world of marketing and bring clarity about the various aspects that form a crucial part of management and corporate functioning.

Objectives The primary objectives of the course are as follows: To develop basic analytical skills, conceptual abilities and substantive knowledge in the field of marketing To familiarise the students with marketing terminology To encourage students to take a marketing orientated view of business issues To sensitise them to aspects of marketing in daily life and to their role and behaviour as consumers To help them develop analytical writing and presentation skills through the use of group presentations, case analysis, class discussions and assignments.

Learning Outcomes 1. Knowledge & Understanding On successful completion of this module students will have knowledge and understanding of the key concepts and principles of marketing. 2. Subject-Specific Skills On successful completion of this module students will have developed an ability to evaluate a company's marketing effectiveness 3. Personal Transferable Skills On successful completion of this module students will have acquired project management, research, analytical and evaluation skills.

Recommended course text and reading The core prescribed text for this course is: Title: Author: Edition: Publisher: Marketing Management (Global Perspective Indian Context) V S Ramaswamy, S Namakumari 2009 Fourth Edition Macmillan Publishers India Ltd.

Also a couple of lectures from Principles & Practices of Marketing by David Jobber,2009 Sixth Edition McGrawhill.

BASICS OF MARKETING

Session 1 2 3 4

Topic What is Marketing & Scope of marketing Marketing Environment Macro Environment & Micro Environment Understanding Consumer Buying Behaviour Marketing Ethics

Reading/Case PEST Analysis Exercise

How do you Decide?

Chapter Chapter 1,2 Chapter 5,7 Chapter 16,17 Chapter 6 (Jobber)

Three Questions CASE 12 Microsoft: Bully or Benefactor Questions 1,2,and 4

The case of Indian Passenger car market

5 6 7 8 9 10

Segmentation ,Targeting & Positioning Marketing Mix Decision : Product Marketing Mix Decision : Price Marketing Mix Decision : Promotion Marketing Mix Decision : Place Digital Marketing

Chapter 18,20 & 22 Chapter 21,24,25 Chapter 34 Chapter 35,36,37 Chapter 26,27,28

The case of Scissors

CASE 35 Google: staying Ahead of the game Questions 1 and 2 Q & A interactive Session

Chapter 18 (Jobber) Chapter 42,43

11 12

Special fields in marketing Putting it all together

Not all chapters from the text highlighted above will be covered within the lectures it is the students responsibility to read all the relevant chapters to ensure knowledge is covered.
Students are expected to read the case/reading before coming for the session.

SESSION PLAN
Session 1 : Marketing Concepts & Scope of marketing
Marketing is a vibrant & a challenging activity that requires an understanding of basic concepts & how they can be applied in practice. This session will enlighten the students about some of the marketing terminologies which they might be unaware of so that they can sail through rest of the marketing subjects comfortably. The students will also get to know about the various marketing subjects that they will be going to study in their first year of post graduate programme. Essential Reading: Chapter 1-Understanding Marketing in a New Perspective, Namakaumari Chapter 2-Fundamentals of Marketing, Namakumari Learning Outcomes: This session will apprise the students about the need for studying the marketing concepts & how pervasive is marketing for any organization.

Session 2: Marketing Environment-Macro & Micro Environment

A marketing oriented firm looks outwards to the environment in which it operates, adapting to take advantage of emerging opportunities and to minimize potential threats. So this session will make the student understand the marketing environment and the major forces acting on companies in their micro environment (which includes suppliers, competitors, customers, distributors) & macro environment ( PEST analysis). Essential Reading: Chapter 5-The marketing Environment, Namakaumari Chapter 7-Marketing Environment in India, Namakumari PEST analysis Exercise: Students will be required to chose any product ( for eg. Soft drinks, Mobile phone, Cosmetics & many more) & will be required to assess the political, legal, social, economic & technological environments impact on them. Learning Outcome: This session will make the student understand the difference between micro & macro environment & the impact of political, legal, social, technological forces on marketing decisions. Also they will learn specifically about the Indian environment.

Session 3: Understanding Consumer Buying Behaviour

The old adage Give the lady what she wants serves as an evergreen dictum on smart marketing. Marketing certainly hinges on understanding the lady and creating a customer out of her through this understanding. Understanding consumer behavior is thus very important because consumers are changing due to factors like income, changing fashion & globalization & change in consumer behavior has a dramatic impact on the fortunes of companies. The session will also emphasize on the dynamics of the consumer decision making process. Essential Reading: Chapter 16-Understanding Consumer Behavior, Namakumari Chapter 17-The Indian Consumer and the Rising Consumer Market of India, Namakumari

Activity : How do you decide Wherein students will have to chose any of the four products (mp3 player, jeans, foreign holiday or bar of chocolate) & answer the following questions. Questions for discussion 1. Who is likely to influence your choice of brand? What buying centers roles do they play? 2. Using the five stages in the consumer decision making process as a guide, how would you go about purchasing that product? 3. What factors (choice criteria) would you use when evaluating the brands you are considering for purchase? Learning Outcome: The students will understand the dimensions of consumer buying behavior, the decision making process involved as to who buys & why, & the choice criteria used to evaluate products.

Session 4 : Marketing Ethics

There are numerous examples that can be quoted where clouds have gathered over organizations like Wal-Mart (allegations of poor employee relations), McDonalds (Health concerns) etc. which makes it necessary to understand ethics not only for the sake of the organizations but also for the society as a whole. This session helps students to understand how decisions affect the wider community beyond the sole interests of shareholders.

Essential Reading: Chapter 6-Understanding Marketing ethics & CSR , Jobber Case Discussion: Microsoft: Bully or Benefactor Case Overview: The case brings in an important consumer need & that is choice. It says that consumer well being is synonymous with freedom to choose, rather than being forced to accept certain combinations. So in light of this concept it discusses how Microsofts success doesnt stem from the technological innovation but from buying in innovative ideas, rebadging them and then bundling them with its operating system. In the process it creates a monopoly that wipes out potential markets for innovative newcomers. Questions for discussion 1. To what extent do you believe consumers have a choice when it comes to software? What factors impact upon a consumers ability to choose computer software & hardware? 2. What evidence is there to suggest that Microsoft is unfairly monopolizing the market? Do you consider its behavior to be unethical? Justify your answer. 3. What do you consider the main challenges facing Microsoft in future? Do you think it is capable of meeting those challenges? Learning Outcome: By the end of the session the students will develop an understanding of the ethical issues in marketing, corporate social responsibility and legal & regulatory responses to ethical concerns.

Session 5 : Segmentation, Targeting & positioning of Markets

Very few products or service can satisfy all customers in a market. Not all customers want or are prepared to pay for the same things. Thus the marketers try to grip the diverse nature of

markets & this is called market segmentation. The marketers by grouping the customers with similar needs provides a commercially viable method of serving the customers. Thus students will understand the reasons & importance of segmenting & targeting. The students will understand the importance of positioning & repositioning as a part of effective marketing strategy. They will understand how a marketer decides where he wants to compete & how he wish to compete.

Essential Reading: Chapter 18-Market Segmentation and Targeting with Value Orientation, Namakumari Chapter 20- Segmentation and targeting: The case of Indian Passenger car market, Namakumari Chapter 22- Differentiation & Positioning the market offering,Namakumari Case of Indian passenger car market The case discusses about the main bases for segmenting the Indian passenger car market. It discusses about the varied needs of Indian buyers whether it be in terms of prices or the benefits sought & How with so much of competition around various players have segmented the market. Thus will help the students get a practical application of the theoretical concepts of segmentation & targeting Learning Outcome: After going through this session the students will understand the concepts of segmentation and target marketing and the factors that can be used to evaluate market segments.

Session 6 : Marketing Mix Decision - Product

From this session will start the discussion about the 4ps of marketing-Product, Price, Place & Promotion. The core element in the marketing mix is the product as it is the product that satisfies the functional requirements of the customers. If the watch does not tell the time & the car does not start when required these products will be rejected by the customers. Marketing managers make sure that the product satisfies the needs of the customers & finally develop them into brands & then try to maintain the brand loyalty. Essential Reading: Chapter 21-Product Management: The Fundamentals, Namakumari Chapter 24-Managing a Brands PLC, Namakumari Chapter 25-Introducing New products, Namakumari Case Discussion The case is about Scissors Cigarette, the breadwinner brand of ITC. It will discuss about how ITC managed to take the brand out of the rut and conducted it to new peaks of growth. The students will get to know how different strategies are adopted by the company during different stages of its product life cycle. Learning Outcome: After going through this session the students will be able to identify the difference between a product & a brand, will understand concepts like product line , product mix, product life cycle & new product development.

Session 7: Marketing Mix Decision Price

Pricing is the odd one out from the marketing mix as it is the revenue earner unlike all other three wherein the company spends from its pocket. What needs to be understood is the fact that pricing should not be done in isolation, it should be blended with other ps to form a coherent mix that provides a superior customer value. So this session will help students learn why setting prices is an important aspect of marketing decision making.

Essential Reading: Chapter 34-Pricing to capture Value, Namakumari

Learning Outcome: This session will make the student understand the various pricing strategies and the pros & cons of each, also they will learn the factors that affect price setting and when & how the marketers decide to initiate price increases and cuts.

Session 8: Marketing Mix Decision Promotion

Once the product has been made and the price has been set the marketer decides as to how this product or service will be communicated to the desired audience. So here comes different concepts used in the promotion of the product like advertising , personal selling , direct marketing, public relations etc. Also students will learn about the ethical issues in the promotion methods used specially in advertising. Essential Reading: Chapter 35-IMC for building & Conveying Value, Namakumari Chapter 36-Advertising Management, Namakumari Chapter 37-Sales Promotion ,Namakumari Learning Outcome: The students will understand various forms of promotion that an organization can chose depending upon on the size & location of the market and also the audience to whom the message has to be communicated.

Session 9: Marketing Mix Decision Place

When all the decisions have been made regarding product, price and promotion the marketer has to plan as to how this product will reach the end consumer. So this session will apprise the students about the how the products are made available through channel distribution system. Students will understand various levels of channels Essential Reading: Chapter 26-Distribution logistics & Supply chain Management,Namakumari Chapter 27-Marketing channels, Namakumari Chapter 28-Retailing-The manufacturers Perspective, Namakumari

Learning Outcome: The students will get an understanding of types of channels of distribution, physical distribution system, terms like order processing, inventory control, warehousing, transportation & channel members conflict.

Session 10: Digital Marketing

Internet has provided the impetus for many companies to rethink the role of technology and evidence already indicates the extent of its global impact. Internet is a major communication channel because of the vast amount of time people spend surfing the net. For consumers digital technologies have not provided the means to search for and buy products while time and money but also socialize and be entertained Digital marketing spans the marketing mix as it provides marketing communications channels and its means of distribution. Thus in this session students will learn about the key elements of the digital age, the main digital media available , assess the benefits and limitations of digital technologies. Essential Reading: Chapter 18-Digital Marketing, Jobber Case Discussion: GOOGLE: Staying ahead of the game Case Overview: The case revolves around Google & stresses upon the point that how creative use of information technology can enhance the capabilities of any company. It talks about the Googles resources & capabilities and considers how the company will sustain competitive advantage & its market leading position in the future. The case also suggests that with changing technologies & new entrants joining the market the company may need to continue to innovate if it is to stay ahead. Questions for discussion 1. What are Googles resources and capabilities, which have enabled the company to create competitive advantage in the search engine market? 2. How does Google differentiate itself from the competition and in doing so create competitive advantage? Learning Outcome: The student will get a general idea of the digital marketing planning, its pros and cons and the main digital media available.

Session 11: Special fields in Marketing

This session will involve discussion about two areas- Marketing of services & Rural marketing . The major reasons behind this are that India being the second fastest growing economy in the world is transforming from an agricultural to a service economy with contribution of services to the GDP being the highest. And secondly the opportunities that awaits marketers in the rural areas where almost 70 % of our population is residing. Thus it becomes essential to discuss about these two fields of marketing. Essential Reading: Chapter 42-Marketing of services, Namakumari Chapter 43-Rural Marketing in India: The changing Picture, Namakumari Learning Outcome: By the end of this session the students will learn the difference between a product & service and how marketing of services is even more challenging than products. Similarly they will get to know about the different strategies marketers adopt to market the same product in urban & rural areas.

Session 12: Putting it all together

In this session we turn our attention to solving students queries of all the sessions taken till now. This session is a synchronization of basic concepts taught in the course. A couple of students can be asked as to what they have prepared in their report Learning Outcome: By the end of this session the students will not only have an understanding of the basic concepts of marketing but they would have also learnt by now how to apply these concepts practically by the report they have to submit.

Assessment details
From the very first lecture each individual student will be asked to choose a company/product & apply the theoretical concepts learned in the classroom to that company side by side & by the end of the module they should be able to submit a report on their learnings & findings. The students will submit a 10 Page (Maximum) crisp report on any company/product, so that they can understand how to apply the marketing concepts in practical. The report shall include brief about company, the environment & the industry, its SWOT & 4ps of marketing, segmentation, targeting & positioning strategies. The report will carry 30 marks & the faculty will take a test of 20 marks(Closed Book) in the last session on the concepts taught, which can be a MCQ test or a mix of MCQ and subjective questions. Assessment Map This table shows main assessment methods which are used across module and its stages: Module Basics of Marketing A1 * A2 A3 A4 A5 A6 *

Notes: A1: Individual test/ Assignment A2: Group Assignment/ Project A3: Open Book Examination A4: Close Book Examination A5: Group Presentation A6: Individual Report

Teaching Map This table shows main delivery methods which are used across module and its stages: Module Basics of Marketing Notes: T1: Lectures T1 * T2 T3 * T4 * T5 T6

T2: Seminars/Tutorials T3: Projects & Presentation T4: Case Discussion T5: Guest Lectures/Industrial Visits T6: Lab Sessions

Curriculum Map This table shows the main learning outcomes which are developed and/or assessed in this module: Module Basics Marketing L1 * L2 * L3 L4 * L5 * L6 L7 * L8 * L9 *

of

Notes: L1: An understanding of organizations, their external context and their management. L2: An awareness of current issues in business & management which is informed by research & practice in the field. L3: An understanding of appropriate techniques sufficient to allow investigation into relevant business & management issues. L4: The ability to acquire & analyze data and information. L5: The ability to apply relevant knowledge to practical situation. L6: The ability to work & lead effectively in a team based environment. L7: An improvement in both oral & written communication skills. L8: Be cognizant of the impact of their individual & corporate actions on society and recognize ethical business practices. L9: Be sensitive to the social economic and environmental responsibilities of business.

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