MODULE 1
buyer or user.
Defining Marketing for the New Realities
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 organization and its stakeholders.
Or marketing is “meeting needs profitably.”
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.
The Value of Marketing
• Financial success often depends on marketing
ability.
• Marketing builds strong brands and a loyal
customer base.
Core Marketing Concepts
• Needs
• Wants
• Demands
Target Markets, Positioning & Segmentation
• Marketers identify distinct segments of buyers
by identifying demographic, psychographic, and
behavioral differences between them.
• They then decide which segment's) present
the greatest opportunities.
• For each of these target market the firm
develops a market offering that it positions in
target buyers’ minds as delivering some key
benefit/s
Marketing Channels
To reach a target market, the marketer
usesthree kinds of marketing channels:
1- Communication channels deliver and receive
messages from target buyers.
2- Distribution channels help display, sell, or
deliver the physical product or service(s) to the
3- Service channels to carry out transactions
with potential buyers.
• The buyer chooses the offerings he or she
perceives to deliver the most value the sum of
the tangible and intangible benefits and costs.
Value, a central marketing concept, is primarily
a combination of quality, service, and price
(qsp), called the customer value triad.
The New Marketing Realities
Three transformative forces:
• Technology
• Globalization
• Social responsibility
What New Capabilities have these forces given
consumers and companies?
NEW COMPANY CAPABILITIES
-Can use the Internet as a powerful information
and sales channel, including for individually
differentiated goods.
-Can collect fuller and richer information about
markets, customers, prospects, and
competitors.
-Can reach customers quickly and efficiently via
social media and mobile marketing.
-Can improve purchasing, recruiting, training,
and internal and external communications.
-Can improve cost efficiency.
Company Orientation toward the Marketplace
• Production Concept
• Product Concept
• Selling Concept
• Marketing Concept
• Holistic Marketing Concept
Production Concept
• It holds that consumers prefer products that
are widely available and inexpensive.
• Managers of production-oriented businesses
concentrate on achieving high production
efficiency, low costs, and mass distribution.
Product Concept
• The Product concept proposes that
consumers favor products offering the most
quality, performance, or innovative features.
Selling Concept
• The selling concept holds that consumers and
businesses, if left alone, won’t buy enough of
the organization’s products.
• It is practiced most aggressively with unsought
goods—goods buyers don’t normally think of
buying such as insurance and cemetery plots
and when firms with overcapacity aim to sell
what they make, rather than make what the
market wants
Marketing Concept
• The job is to find not the right customers for
your products, but the right products for your
customers.
• The marketing concept holds that the key to
achieving organizational goals is being more
effective than competitors in creating,
delivering, and communicating superior
customer value to your target markets.
Holistic Marketing Concept
• The holistic marketing concept is based on
the development, design, and implementation
of marketing programs, processes, and activities
that recognize their breadth and
interdependencies.
• Holistic marketing acknowledges that
everything matters in marketing— and that a
broad, integrated perspective is often
necessary.
Relationship Marketing
• Relationships with people and organizations
that directly or indirectly affect the success of
the firm’s marketing activities
• Four key constituents for relationship
marketing are customers, employees,
marketing partners (channels, suppliers,
distributors, dealers, agencies), and members
of the financial community (shareholders,
investors, analysts)
Integrated Marketing
• Within the integrated marketing component
of a holistic strategy, businesses work towards
making marketing decisions that create value
for stakeholders through a clear, concise
marketing message. All activities within
integrated marketing, including advertising,
public relations, direct marketing, online
communications, and social media marketing,
work in sync with one another to ensure the
company's customers and business partners
have the same experience with and perception
of the company.
Internal Marketing
• Internal marketing is aimed at catering to the
specific needs of the business's own employees.
Internal marketing ensures that employees are
satisfied with the work they perform each day
as well as the philosophy and direction of the
organization as a whole. Greater satisfaction
among employees leads to increased customer
satisfaction over time, making internal
marketing a key aspect of the holistic approach.
Societal Marketing
• Societal marketing is aimed at creating
marketing initiatives that are based on ethically
sound business practices, such as
environmentally-friendly production or
meaningful interaction with the surrounding
community. Marketing campaigns that are
intentionally socially responsible provide
another method for businesses to build long-
lasting, beneficial stakeholder and partner
relationships
 MODULE 2
Developing Marketing Strategies and Plans
The Value Delivery Process
• We can divide the value creation and delivery
sequence into three phases. First, choosing the
value is the “homework” marketers must do
before any product exists. They must segment
the market, select the appropriate target, and
develop the offering’s value positioning. The
formula “segmentation, targeting, positioning
(STP)” is the essence of strategic marketing.
• The second phase is providing the value.
Marketing must identify specific product
features, prices, and distribution.
• The task in the third phase is communicating
the value by utilizing the Internet, advertising,
sales force, and any other communication tools
to announce and promote the product. The
value delivery process begins before there is a
product and continues through development
and after launch. Each phase has cost
implications.
What is Value Chain?
• The value chain is a tool for identifying ways
to create more customer value because every
firm is a synthesis of primary and support
activities performed to design produce, market,
deliver, and support its product
Core Competencies
• Characteristics of Core Competencies
• A source of competitive advantage and make
significant contribution to perceived customer
benefits.
• Applications in a wide variety of markets
Difficult for competitors to imitate / copy
Corporate and Division Strategic Planning
• Whether they let their business units set their
own goals and strategies or collaborate in doing
so, all corporate headquarters undertake four
planning activities:
• 1. Defining the corporate mission
• 2. Establishing strategic business units
• 3. Assigning resources to each strategic
business unit
• 4. Assessing growth opportunities
Establishing Strategic Business Units
• An SBU has three characteristics:
• 1. It is a single business, or a collection of
related businesses, that can be planned
separately from the rest of the company.
• 2. It has its own set of competitors.
• 3. It has a manager responsible for strategic
planning and profit performance, who controls
most of the factors affecting profit
The Nature and Contents of a Marketing Plan
• Marketing plan is the central instrument for
directing and coordinating the marketing effort.
• It operates at a Strategic and Tactical level
• Marketing plan is a written document that
summarizes what the marketer has learned
about the marketplace and indicates how the
firm plans to reach its marketing objectives.
• A marketing plan is one of the most important
outputs of the marketing process. It provides
direction and focus for a brand, product, or
company. It informs and motivates key
constituents inside and outside an organization
about its marketing goals and how these can be
achieved.
Marketing Plan Contents
• Executive Summary
• Table of Contents
• Situation Analysis
• Marketing Strategy
• Marketing Tactics
• Financial Projections
• Implementation and Control
Executive summary -The executive summary is
the first section to appear on the page after
your title page. This section should outline the
goals of your report
Situation analysis - This section presents
relevant background data on sales, costs, the
market, competitors, and the
macroenvironment. How do we define the
market, how big is it, and how fast is it growing?
What are the relevant trends and critical issues?
Firms will use all this information to carry out a
SWOT analysis.
Marketing strategy - Here the marketing
manager defines the mission, marketing and
financial objectives, and needs the market
offering is intended to satisfy as well as its
competitive positioning. All this requires inputs
from other areas, such as purchasing,
manufacturing, sales, finance, and human
resources.
Marketing tactics - Here the marketing
manager outlines the marketing activities that
will be undertaken to execute the marketing
strategy.
• The product or service offering section
describes the key attributes and benefits that
will appeal to target customers.
• The pricing section specifies the general price
range and how it might vary across different
types of customers or channels, including any
incentive or discount plans.
• The channel section outlines the different
forms of distribution, such as direct or indirect.
• The communications section usually offers
high-level guidance about the general message
and media strategy. Firms will often develop a
separate communication plan to provide the
detail necessary for agencies and other media
partners to effectively design the
communication program.
Financial projections - Financial projections
include a sales forecast, an expense forecast,
and a break-even analysis. On the revenue side
is forecasted sales volume by month and
product category, and on the expense side the
expected costs of marketing, broken down into
finer categories. The break-even analysis
estimates how many units the firm must sell
monthly (or how many years it will take) to
offset its monthly fixed costs and average per-
unit variable costs.
Implementation controls - The last section
outlines the controls for monitoring and
adjusting implementation of the plan. Typically,
it spells out the goals and budget for each
month or quarter so management can review
each period’s results and take corrective action
as needed.
MODULE 3
Conducting Market Research
Marketing Research - is the systematic design,
collection, analysis, and reporting of data and
findings relevant to a specific marketing
situation facing the company
NEED FOR MARKETING RESEARCH
• To undertake marketing effectively
• Changes in technology
• Changes in consumer tastes
• Market demand
• Changes in the product ranges of competitors
• Changes in economic conditions
• Distribution channels
PURPOSE OF MARKETING RESEARCH
• Gain a more detailed understanding of
consumers’ needs: Example: views on products
prices, packaging, recent advertising campaigns
• Reduce the risk of product/business failure:
There is no guarantee that any new idea will be
a commercial success
- Can help to achieve commercial success
• Forecast future trends: It can also be used to
anticipate future customer needs
 OVERVIEW OF THE MARKETING RESEARCH
PROCESS
• Why should we do research?
• What research should be done?
• Is it worth doing the research?
• How should the research be designed to
achieve the research objectives?
• What will we do with the research?
The Marketing Research Process
• Define the problem
• Develop research plan
• Collect information
• Analyze information
• Present findings
• Make decision
STEP 1: DEFINE THE PROBLEM
“A problem well-defined is half solved”
• Identifying and defining the problem or
opportunity is a crucial first step in the
marketing research process
• When defining the problem, it is important to
think broadly about the possible causes.
Problem definition involves:
• Specifying decision alternatives
• Itemizing the possible causes of the symptoms
• Listing the reasonable alternative courses of
action that the marketing manager can
undertake to solve the problem
Step 2: Develop the Research Plan
Exploratory Research Design - It is defined as
collecting information in an unstructured and
informal manner.
• Examples: Reading periodicals, visiting
competitor premises, examine company sales
and profits vs. industry sales and profit
Descriptive Research Design - It refers to a set
of methods and procedure that describe
marketing variables.
• Portray these variables by answering
who,what,why and how questions.
• Example: consumer attitude survey to your
company services.
Causal Research – The most specific type of
research is causal research, which usually comes
in the form of a field test or experiment. In this
case, you are trying to determine a causal
relationship between variables. For example,
does the music I play in my restaurant increase
dessert sales (i.e. is there a causal relationship
between music and sales?)
STEP 3: COLLECT INFORMATION
• The collection of data relates to the gathering
of facts to be used in solving the problem.
• Data can be primary, i.e., collected from the
original base through empirical research by
means of various tools.
• Data can be secondary, i.e., collected from
concerned reports, magazines and other
periodicals, especially written articles,
government publications, company
publications, books, etc.
There can be broadly two types of sources
• Internal sources: existing within the firm itself,
such as accounting data, salesmen’s reports,
etc.
• External sources: existing outside the firm.
Step 4 Analyze the Information
• The researchers compute averages and
measures of dispersion for the major variables
and apply some advanced statistical techniques
and decision models in the hope of discovering
additional findings.
• Run summaries with the tools provided in
your software package (typically Excel, SPSS,
Minitab, etc.), build tables and graphs, segment
your results by groups that make sense (i.e. age,
gender, etc.), and look for the major trends in
your data. Start to formulate the story you will
tell
 Step 5: Present the Findings

• As the last step, the researcher presents the

findings. Researchers are increasingly asked to
play a proactive, consulting role in translating
data and information into insights and
recommendations for management

Step 6: Make the Decision

• Some organizations use marketing decision

support systems to help their marketing
managers make better decisions. MIT’s John
Little defined a marketing decision support
system (MDSS) as a coordinated collection of
data, systems, tools, and techniques, with
supporting software and hardware, by which an
organization gathers and interprets relevant
information from business and environment
and turns it into a basis for marketing action

• Once the market research process is

complete, the information collected might be
stored by the company in another system also
commonly known as marketing decision
support system. This system generally has all
the data collected from the market and can be
used by marketers and management alike to
make the right decisions for the company. At
the same time, it is not necessary that the
market research process give completely
accurate results. In fact, over time many
innovators and thinkers have ignored market
research analysis and launched the product by
gut feeling and have still succeeded.

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