INTRODUCTION TO MARKETING MANAGEMENT

Nature & Importance of Marketing

Evolution of Marketing Concept

Marketing Environment

Domestic & International Marketing

Process of finding out customer needs and serving those needs profitably

Profit is a legitimate goal of a business organization Essence of marketing is providing desired value to customers

Marketing should be considered a central business

function

Marketing is defined as, a social and managerial process, by which, individuals and groups, obtain what they need and want, through creating, offering and exchanging, products of value with others. - Philip Kotler.

Markets Buyers & Sellers Cash/ Cards, Exchange Demand & Supply

Needs & Wants

NEEDS: - Basic state of deprivation that

exists in every human life. (Thirst Water)

WANTS: - Need for a particular product.

(Thirst Pepsi)

DEMAND: - Desire for the commodity +

Purchasing power + Willingness to pay.

SELLERS

BUYERS

Flow of Goods & Services

Flow of Money

CONSUMER MARKET INDUSTRIAL MARKET

ON BASIS OF PRODUCTS IN TRADE

BASIC GOODS MARKET INTERMEDIARY GOODS MARKET CONSUMER GOODS MARKET

Durable Consumer Markets Non Durable Consumer Markets

WHOLESALE MARKET RETAIL MARKET

ON BASIS OF TIME PERIOD

SHORT TERM MARKET LONG TERM MARKET SEASONAL MARKET

LOCAL MARKET
REGIONAL MARKET

NATIONAL MARKET
INTERNATIONAL MARKET

BARTER SYSTEM Goods For Goods

MONETARY SYSTEM Cash For Goods

TECHNO-MARKETING SYSTEM Cards For

Goods

Marketing as an equal function

HR
MRKTG
FINANCE

PRDN

Marketing as an important function

HR
MRKTG
FINANCE

PRDN

Marketing as a major function

HR MARKETING

Production Concept Product Concept

Selling Concept
Marketing Concept

Holistic Concept

Emphasis on Mass Production Low Cost High Efficiency Customers have to buy, whatever is produced in Bulk. For E.g. Ford T-Model Car (All models
available in black colour).

Emphasis on Variety Items production

Customers can buy from among the various varieties offered. For E.g. Toothpastes available in different flavours and in various sizes

Emphasis on maximizing the sales,

through Sales Promotional Activities. Clubs the Marketing Communication (Ads, Publicity, Sales Promo. Activities) with Products/Services.

Emphasis on maximizing the sales through customer satisfaction. Conducts Market Research, to know the customer taste and preferences. Manufactures innovative products.

Sales & Warrantees/Guarantees

Customer Feedbacks.

It is based on the developments, design and implementation of marketing programs, processes and activities that recognizes the interdependencies of firm and its environment.

COMPONENTS OF HOLISTIC CONCEPTS

Internal Marketing Social Responsibility Marketing Integrated Marketing Relationship Marketing

It holds the orgzn tasks to determine the needs,

wants and interests of target markets and to

deliver the desired satisfactions more effectively

and efficiently than competitors.

Marketing Modern Concept

Ongoing Social & Managerial Process Complex Structure Value Driven

Scope of marketing rests on

the 10 entities. They are: -

PLACES
PROPERTIES IDEAS INFORMATION ORGANIZATIONS

GOODS SERVICES EXPERIENCES

EVENTS
PERSONS

PERSONS GOODS

PROPERTIES

ORGANISATIONS SERVICES
MARKETING

INFORMATION EXPERIENCES

PLACES EVENTS

IDEAS

SELLING
Older Concept Narrow Concept Quantity Based

MARKETING
Modern Concept Broader Concept Quality Based

Transferring of Ownership of the

Offering products that fulfills the needs

product
Focus on Maximizing Profit through

and wants of customers, and thereby customers have satisfaction

Focus on Maximizing profit through

Increase in Volume of sales

Love the Product/Brand Cost determines Price

Customer Satisfaction
Love the Customer & not the product Consumer determines Price, Price

determines Cost

Suppliers

Competitors Environment

Company (Marketer) Environment

Marketing Intermediaries

End User Market

Value Proposition A set of benefits offered by the company to satisfy customer needs
Offering Value proposition is made physical by an offering which is a combination of products, services, information and experiences.

Customer Value - benefit that the customer gains from owning and using a product compared to the cost of obtaining the product. Customer Satisfaction - depends on the products perceived performance in delivering value relative to a

buyers expectations. Linked to Quality and Total

Quality Management (TQM).

How Do Customer Measure the Values Obtained from a Product?

Customer Value Triad QSP

Quality

VALUE

Service Price

Value = Benefits/Costs

Benefits = Functional Benefits + Emotional Benefits

Costs = Monetary Costs + Time Costs + Energy Costs + Psychic Costs

Note: Psychic Costs - the stress of having to think about a transaction

5 ways 1) Increase Benefits

2) Decrease Costs

3) Increase Benefits and Decrease Costs

4) Increase Benefits by more than the

Increase in Costs
5) Decrease Benefits by less than the

Decrease in Costs

Total Customer value Product value Service Value

Customer Delivered Value

Total Customer Cost Monetary cost Time cost

Personal value
Image value

If it fulfills your needs/ wants.

Status you enjoy when you owns it.

Energy cost
Psychic cost

Students Want List

HIGH QUALITY EDUCATION FAIR FEES QUALIFIED TEACHERS GOOD FACILITIES

HOLY GRACE ACADEMY OF MGMT STUDIES (Marketer) HGAMS Want List

GOOD STUDENTS TIMELY PAYMENT GOOD RESULTS GOOD WORD OF MOUTH

STUDENTS
( Prospects)

DESIGN THE PRODUCT

MAKE THE PRODUCT

PROCURE MAKE PRICE

SELL THE PRODUCT

ADVERTISE/PROMOTE DISTRIBUTE SELL

Choose the Value

Cust. Seg

Mkt Selection
Provide the Value

Value Positioning

Distributing

Sourcing/

Making

Pricing

Pdt/Service

Dvlpmt

Communicate the Value

Sales Force Training

Sales Promo.

Advtsg

New Marketing Landscape & Information Technology

Nonprofit Marketing

Ethical Concerns

Emerging Challenges
Changing World Economy

Globalization

Relationship marketing is the process of attracting, maintaining, and enhancing relationships with key people. Relationship Marketing works in Stages.

Using the relationship marketing approach, programs are customized for individual consumer groups and the stage of the process they are going through, rather than giving everybody the same promotions, with perhaps a change in offer. E.g. Customer Life Cycle

Interaction > Communication > Valuation > Termination Awareness > Comparison > Transaction > Reinforcement

To build mutually satisfying relations with key parties

To build strong economic, technical and social ties among the parties

To cut down transaction costs and time

To move transactions from being negotiated each time to being a matter of routine. To build a Marketing Network Note: A marketing network is a unique asset of the company which
consists of the company and its supporting stake holders ( Customers, Employees, Suppliers, Distributors etc.)

A set of tools that firms uses to pursue its marketing objectives, in the target markets. It is developed by Prof. E. Jerome McCarthy.
7 8

MARKETING MIX
PLACE

PRODUCT Variety Quality Design Features Brand Packing Sizes Services Warranties Returns

PRICE
List price Discounts Allowances P. Period Credit terms

PROMOTION

Sales Advertising Sales force P.R & Publicity Direct Mktg

Channels Coverage Locations Inventory Transport

Product Variety
Quality Design Features Brand Name

Packaging
Sizes Services

Discount
Allowances

Payment Period
Credit Terms

Sales Promotion
Advertising

Sales Force
PR

Direct Marketing

Channels
Coverage

Assortments
Locations

Inventory
Transport

4 Ps +
PHYSICAL EVIDENCE

PROCESS

PEOPLE

4 P+ 3P+
PACKAGING

POSITIONING

PACE

ROBERT LAUTERBORNs 4P & 4C Comparison

Four Ps
PRODUCT PRICE

Four Cs
Customer Solutions
Customer Cost

PLACE
PROMOTION

Customer Convenience
Commn with Customer

Systematic futuristic thinking by management

Better co-ordination of a companys efforts

Development of performance standards for

control

Sharpening of objectives and policies

Better prepare for sudden developments

 Processing Pricing Packaging Promoting Financing

Transportation Storage Retailing

 SUPPLY & DEMAND PRICE CHANGES IN COMPETITION

CONSUMER TASTES

COST OF INPUTS COST OF RELATED

ITEMS

Analysis/Audit - where are we now?

Objectives - where do we want to be?

Strategies - which way is best?

Tactics - how do we get there?

Implementation Getting there!

Control - Ensuring arrival

MARKET SIZE (CURRENT

& FUTURE) MARKET GROWTH RATE (C&F) MARKET PROFITABILITY

KEY SUCCESS FACTORS

DISTRIBUTION CHANNELS

INDUSTRY COST
STRUCTURE MARKET TRENDS

It is an orientation for achieving the objectives, by developing superior value to consumers. 6 principles lies for value driven marketing: Customer Principle (focus on creating and delivering

customer value Direct & Indirect).

Competitor Principle (Offers customer superior value to

competitive alternatives).
Proactive Principle (Offers changes in the firm based on the

changes in environment)

 Cross Functional Principle (uses cross functional

teams to improve the efficiency and effectiveness).

Continuous Improvement Principle (Offers

continuous improvement in the quality of products, process and services).

Stakeholder Principle (Ensures maximum returns

for the Stakeholders).

 Functions of Exchange (Buying & Selling,

Assembling).
Functions of Physical Supply (Transportation, Storage

& Warehouses).
Facilitating Functions (Financing, Risk Bearing,

Standardization).
Functions of Research (Market Research, New

Product Development).