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Course Introduction

Marketing Management
Term 1, PGDM 2021-23

Prof. Suresh Ramanathan

What is Marketing?

Marketing is an organizational function

and a set of processes for creating,
communicating, and delivering value
to customers and for managing
customer relationships in ways that
benefit the organization and its
stakeholders.

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What Is Marketing?

• Goals
– Attract new customers by promising
superior value
– Keep and grow current customers by
delivering satisfaction

Product Orientation vs.

Market Orientation
Company Product Market
Missouri-Pacific We run a railroad We are a people-
Railroad and-goods mover

Xerox We make copying We improve office

equipment productivity

Standard Oil We sell gasoline We supply energy

Columbia Pictures We make movies We entertain

people

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Lack of Customer Focus

Roger J. Best, 2012

Marketing Strategy
Marketing Analysis

Customers, Competitors, Company,

Collaborators, and Context

Segmentation, Targeting, Positioning

Marketing Mix (4 Ps)

Customer Customer
Acquisition Retention

Profit

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Course Schedule

• Session 1-2 Introduction / Company Analysis

• Session 3-4 Competitive Analysis
• Session 5-6 Customer Analysis
• Session 7-8 Segmentation, Targeting, &
Positioning
• Session 9-10 Brands and Brand Equity
• Session 11-14 Product, Pricing, Distribution and
Promotion Strategy
• Session 15 Course Wrap-up

Evaluation

• Individual
– Mid-term exam 15%
– Final case exam 35%
– Individual exercises 10%
• Group
– PharmaSim
• Performance 30%
• Report 10%

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PharmaSim
• Each team to make eight decisions over
the duration of course
• Decisions to be submitted by designated
team leader and simulation to be
advanced to next round
• Two team assignments to be submitted:
Marketing Plan and Advice to New
Management
• Performance evaluated on composite
index of stock price, revenues, market
share, and net income

The 3+2 Cs

• Company – goals, values, assets

• Customers – opinions, attitudes, needs,
decision processes
• Competition – likely alternatives, likely
responses
• Context – legal, environmental,
technological, social
• Collaborators – suppliers and alliances

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Company
• Mapping the strategic terrain and choosing the right position
in the terrain
• The SORCS framework
– Scope
– Objectives
– Resources
– Competitive Advantage
– Synergy
• Identify core competence that will provide sustainable
competitive advantage

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Competitors
• Defining who our competition is
– Other brands within the same product
(sub) category
– Other brands or products within the same overall
category
– Other product categories
– Ourselves?
• Understanding competitive dynamics and
strategy
– Predicting competitive response – game theory
– Hyper-competition
• Case: Barco Projection Systems

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Customer Analysis
• Understanding customer needs through
market research
• Forecasting demand
• Factors influencing customer behavior

• Case: TruEarth Healthy Foods

• Case: Telenor

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Segmentation and Targeting

§ Segmentation
– size, growth, wealth, income, stability…
– ease of identification, ease of reaching, clustering….
– Buyer (within segment)
• volume, price sensitivity, loyalty….
• responsiveness, development potential….
– Decision Processes (within buyer)
• sequence of steps, decision makers, information sought,
decision rules, learning…
§ Targeting
– Identify and profile distinct groups of buyers who differ in their needs and
preferences
– Select one or more market segments to enter

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Positioning

• Identifying how consumers will

perceive the brand on relevant
attributes
• Creating a differentiated position for
competitive advantage
• Case: Product Team Cialis

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Brand Management

• Brand equity
– Associations and image
– Measuring equity
– Managing brand life cycle
– Brand extensions
• Case: Chateau Margaux

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Managing the Marketing Mix

• Product
• Price
• Place (Channels)
• Promotion

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Managing the Product Life

Cycle
• PLC/TALC
– Temporal Segmentation
– Forecasting diffusion using the Bass Model
– Role of Pioneering Advantage
• Technology
– Why is technology different?
– Disruptive vs. Sustaining technologies

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Pricing

• Economics (Cost-based) vs. Marketing

(Market-based)
• Value Pricing
– Value in use/Economic Value to
Customer pricing
• Psychological Pricing
– Price framing
– Sunk cost effects
– Price fairness

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Place/Channels
• Direct or Indirect
– Selecting channel partners
– Managing conflict
• Levels of channel coverage
– Intensive
– Selective
– Exclusive
• Channel Dynamics
– Shifts in channel power
– Changing technology

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Promotion
• Changes in the marketing landscape
– Changing technologies
– Changing power
– Changing philosophies
• Promotional Tools
– Trade vs. Consumer
– Short-term vs. long-term effects
• Advertising/Integrated Communications
– Setting objectives
– Setting budget
– Media and Creative Strategy
• Case: Lay’s Potato Chips in Hungary

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For Wednesday

• Read
– Porter, What is Strategy?
– Hagel and Singer, Unbundling the
Corporation.
– Collins and Montgomery, Competing on
Resources

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