Unit 1

Marketing Management
Session 1

Presented by: Tabassum Banu

 Objectives

By the end of this session, you should be able to:

• Define marketing and the utility ( value) it creates for the
customer.

• Trace the origin of marketing and explain how it has

evolved.

• Describe the elements of a marketing strategy.

• Understand the scope of marketing.

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 Learning Objectives

In this lesson, we will discuss the following

• What is marketing?

• Evolution of marketing

• Marketing framework

• Marketing in different sectors

• Functions of marketing

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 Meaning and Definition of MARKETING

Meaning:
The term “market” originates from the Latin word “Marcatus” which means “a
place where business is conducted.” it is a place where buyers and sellers
personally interact and finalise meet and exchange goods and services for money.

The American Marketing Association defines marketing as

Marketing is the process of planning and executing

the conception, pricing, promotion and distribution of ideas,
goods and services to create exchanges that satisfy individual
and organizational objectives.

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 Meaning & Definition of Marketing

Meaning:
Marketing management facilitates the activities and functions
which are involved in the distribution of goods and services.
Definition
According to Philip Kotler, “Marketing management is the
analysis, planning, implementation and control of programmes
designed to bring about desired exchanges with target markets
for the purpose of achieving organisational objectives.

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 Four Utilities of Marketing

• Form Utility.
• Place Utility.
• Possession Utility.
• Time Utility

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 Difference between Marketing and Selling
Marketing Concept
1 Emphasis is on the product.
2 Company Manufactures the product first.
3 Management is sales volume oriented.
4 Planning is short-run-oriented in terms of
today’s products and markets.
5 Stresses needs of seller.
6 Views business as a good producing
process.
7 Emphasis on staying with existing
technology and reducing costs.
8 Different departments work as in a highly
separate water tight compartments.
9 Cost determines Price.
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Selling Concept
1 Emphasis on consumer needs wants.
2 Company first determines customers needs and
wants and then decides out how to deliver a
product to satisfy these wants.
3 Management is profit oriented.
4 Planning is long-run-oriented in today’s products
and terms of new products, tomorrow’s markets
and future growth.
5 Stresses needs and wants of buyers.
6 Views business as consumer producing process
satisfying process.
7 Emphasis on innovation on every existing
technology and reducing every sphere, on
providing better costs value to the customer by
adopting a superior technology.
8 All departments of the business integrated
manner, the sole purpose being generation of
consumer satisfaction.
9. Consumer determine price, price determines cost.
 Evolution of Marketing

• The following are the five eras in the history of marketing

1. Production 2. Product 3. Sales

era era era

5. Relationship
4. Marketing era
marketing era

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 Comparison between Relationship Marketing vs Transactional based Marketing
Transactional marketing
• The transactional marketing focus on
recruitment of customers for single sale.
• Transactional marketing is oriented on
product features.
• Transactional marketing has short time
horizon.
• Transactional Marketing has little
customer focus.
• Transactional Marketing information is
content of communication.
• In Transactional Marketing there is low
contact with customers.
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Relationship Marketing
• Relationship marketing focus on customer
retention.
• Relationship Marketing orientation is on
product benefits and system solutions.
• Relationship marketing has long term
horizon.
• Relationship Marketing has high customer
focus.
• Relationship Marketing information is
product of communication.
• In Relationship marketing there is high
contact with customers
 Marketing Framework

There are 3 basic elements of marketing strategy which are as

follows

Marketing Mix Environmental

Target market
variables Characteristics

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 Marketing Framework
1. The target market.
2. The marketing Mix variables which includes;
a) Product.
b) Price.
c) Place.
d) Promotion.
3. Environmental factors includes;
a) Internal Environment.
b) External Environment.
. Competition
· Government policies
· Natural forces
· Social and cultural forces
· Demographic factors
· Technological changes

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 Marketing in different sectors

• There are different types of markets which deals with products

and/or services such as :
1. Consumer Market
2. Industrial/Business Market
3. Government Market
4. Global Market
5. Non-profit Market

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 NINE FUNCTIONS OF MARKETING

1. Buying
2. Selling
3. Financing
4. Storage
5. Transportation
6. Processing
7. Risk-Taking
8. Market Information
9. Grading and Standardizing

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 Marketing Process

1. Develop vision before strategy.

2. Focus on the customer experience.
3. Become the new media company.
4. Adapt the engagement model.
5. Educate to generate and close.
6. Develop a selling process.
7. Create a marketing calendar.

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 Marketing Environment

• Internal Factor
• External Factor
1) Micro Factors
. Suppliers
. Marketing Intermediaries
. Consumers
. Competitors
. Public

2) Macro Factors
. Demography
. Economic Environment
. Physical Environment or Natural Forces
. Technological Factors
. Social & Cultural Factors

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 Buying Behaviour

Definition of Buying Behaviour,

According to Philip kotler, Buying Behaviour is the
decision processes and acts of people involved in buying and
using products.

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 The Consumer Decision Process

• Problem Recognition
• Information search
• Evaluation of Alternatives
• Purchase decision
• Purchase
• Evaluation Post-Purchase

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 Types of consumer buying behaviour

• High involvement purchases

• Limited Decision Making
• Extensive Decision Making
• Impulse buying

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 Determinants of Consumer Behavior

The following are the determinants of consumer behavior,

Determinants of
Consumer Behavior

Personal Psychological Social

• Motives  Opinion leaders
 Demographic Factors  Physiological  person's family
 Self Actualization  reference groups
 Perception  social class
 Ability and Knowledge  culture.
 Attitudes

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 MARKET SEGMENTATION

Meaning
The process of grouping customers in markets with some
heterogeneity into smaller , more similar or homogeneous
segments. The identification of target customers groups in
which customer groups in which customers are aggregated
into groups with similar requirements and buying
characteristics.

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 Benefits of Market Segmentation

• Products are designed to be responsive to the needs of the

marketplace.
• Increase profits
• Effective Resource Allocation
• There is product differentiation

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 Requirements of Good Market Segments

• Identifiable
• Measurable
• Substantial
• Accessible
• Durable
• Responsive
• Compatible with corporate image

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 Steps involved in Segmentation Analysis

• 1. Define the purpose and scope of the segmentation.

• 2. Analyze total Market Data.
• 3. Develop segment profiles
• 4. Evaluate segmentation
• 5. Select target segments
• 6. Designing the marketing strategy for the target segment.
• 7. Reappraisal of segmentation

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 Variables for Segmenting Industrial / Business Markets

1.Demographic
• Industry
• Company size
• Location
2.Operating variables
• Technology
• User-non-user status
• Business capabilities
3.Purchasing approaches
• Nature of existing relationship
• Power structure
• Purchasing criteria

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 Continued

4.Situational factors
• Urgency
• Specific application
• Size of order

5.Personal characteristics
• Buyer-seller similarity
• Attitude towards risk
• Loyalty

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 Market Targeting

This is the evaluation of the various segments identified during

segmentation and deciding how many and which ones to serve.

Targeting Approaches:
• Segment size and growth
• Segments structural attractiveness
• Segment interrelationships

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 Target Market Strategies

• Single-segment strategy
• Selective specialization
• Product specialization
• Market specialization
• Full market coverage
• Differentiated and Undifferentiated Marketing strategy

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 Market Positioning

Positioning is the process of establishing and maintaining a

distinctive place in the market for the organizations’ product or
brands. Positioning starts with the product, but positioning is
not what you do to a product. Positioning is what you do to
the mind of the customer. You should concentrate on the
perception of the customer and not the reality of the product.
Positioning then is how the product is perceived and evaluated
by the target market, relative to competing products. To the
consumer perception is reality.

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 Criteria for Market Positioning

• Important
• Distinctive
• Superior
• Pre-emptive
• Affordable
• Profitable

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 Positioning strategies

• Attribute positioning
• Benefit positioning
• Use or application positioning
• User positioning
• Competitor positioning
• Product category positioning
• Quality or price positioning.

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 Marketing Mix

Marketing Mix Definition

The marketing mix definition is simple. It is about putting the right product or a
combination thereof in the place, at the right time, and at the right price. The
difficult part is doing this well, as you need to know every aspect of your business
plan.
The Marketing Mix 7Ps
1. Product
2. Price
3. Place
4. Promotion
5. People
6. Process
7. Physical Evidence
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 Summary

In this session, you learned:

• What is marketing

• Evolution of marketing

• Marketing framework

• Marketing in different sectors

• Functions of marketing

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THANK YOU
Presented by: Tabassum