Marketing Management

Marketing Management
Prof. Pooja Fernandes

10/7/2014 1 Prof. Pooja Fernandes
Marketing as an Activity, Function
and Philosophy
Activity : Through which exchanges are
undertaken by means of buying and selling of
goods.

Marketing as an Activity, Function
and Philosophy
Function : Within an organization which deals
with specific activities as a Department.

Philosophy : Which affects an entire
organizations dealings with marketplace

Needs, Wants and Demands
Needs
Wants


Demands
Needs describe basic human requirements such as
food, air, water, clothing, and shelter. People also have
strong needs for recreation, education, and
entertainment.
These needs become wants when they are directed to
specific objects that might satisfy the need.
An American needs food but wants a hamburger,
French fries, and a soft drink. A person in Mauritius
needs food but wants a mango, rice, lentils, and beans.
Clearly, wants are shaped by ones society.
10/7/2014 Prof. Pooja Fernandes 7
Demands are wants for specific products backed by an
ability to pay.
Many people want a Mercedes; only a few are able and
willing to buy one.
Companies must measure not only how many people want
their product, but also how many would actually be willing
and able to buy it.
However, marketers do not create needs. Needs pre-exist
marketers.
Marketers, along with other societal influences, influence
wants. Marketers might promote the idea that a Mercedes
would satisfy a persons need for social status. They do not,
however, create the need for social status.
Needs , Wants and Demands
Dimensions Needs Wants Demands
What ? Existing, few Are many Ability &
Willingness to buy
Influencers ? Natural Shaped by social,
family etc

Shaped by status,
aspirations
Instances ? Food, Clothing,
Shelter
Needs cars-Benz Willing + Ability =
Branded products.
Marketers Existing minimum
influence
Influence wants Make product
attractive, and
inspirational
Product Levels
Core Product
Tangible
Product
Expected
Product
Augmented
Product
Potential
Product
Product Levels
Core Product: This is a fundamental service or benefit for which a product is
purchased. Eg. Mobile

Tangible Product: Includes product features, color, design, style, quality, size
,weight and durability. Eg. Mobile Size, color, shape

Expected Product: Include a set of attributes and conditions buyers normally
expect when they purchase the product .Eg. Mobile Clarity, Resolution

Augmented Product: Includes associated services like warranty, guarantee, after
sales service, User training and support etc. which help the product to deliver
benefits beyond customer expectations leading to customer delight.
Eg. Mobile Warranty of one year

Potential Product: Includes all possible augmentations and transformations the
product might undergo in future. Eg Mobile used for checking emails, surfing etc.

Core and Supplementary Services in a
Luxury Hotel
Reservation
Valet
Parking
Reception
Baggage
Service
Cocktail
Bar
Restaurant
Entertainment/
Sports / Exercise
Telephone
Wake-up
Call
Room
Service
Business
Center
Cashier
A Bed for the
Night in an
Elegant Private
Room with a
Bathroom
Core Product
Supplementary
Services
Value and Satisfaction
In terms of marketing, the product or offering will be
successful if it delivers value and satisfaction to the target
buyer. The buyer chooses between different offerings on
the basis of which is perceived to deliver the most value.
We define value as a ratio between what the customer gets
and what he gives. The customer gets benefits and assumes
costs, as shown in this equation:

Value = Benefits/Cost
Where,
Benefits = Functional benefits + Emotional benefits.
Cost = Monetary cost + time cost + energy cost + psychic costs

Orientation of a firm
Orientation
Production
concept
Product
concept
Selling
concept
Marketing
concept
Orientation of a firm Production concept
The consumers will favor products that are available
and highly affordable.

The production concept, one of the oldest in business,
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.
It is also used when a company wants to expand the
market.
Eg. FMCG products
Orientation of a firm Product concept
The idea that consumers will favor products that offer the most in
quality, performance and features and that the organization should
therefore devote its energy to making continuous product
improvements.

Managers in these organizations focus on making superior products and
improving them over time, assuming that buyers can appraise quality and
performance. Product-oriented companies often design their products
with little or no customer input, trusting that their engineers can design
exceptional products.
A General Motors executive said years ago: How can the public know
what kind of car they want until they see what is available? GM today
asks customers what they value in a car and includes marketing people in
the very beginning stages of design.
However, the product concept can lead to marketing myopia (narrow
view).
Orientation of a firm Selling concept
The idea that consumers will not buy enough of the firms products
unless it undertakes a large-scale selling and promotion effort.

The concept is typically practiced with unsought goods- those that buyers
do not normally think of buying. Eg Insurance

Most firms practice selling concept when they face overcapacity

Their aim is to sell what they make rather than make what the market
wants.

Such a marketing strategy carriers high risk

It focuses on creating sales transactions rather than on building long -
term, profitable customer relationships.

Orientation of a firm Marketing concept
The marketing management philosophy that holds that achieving
organizational goals depends on knowing the needs and wants of target
markets and delivering the desired satisfactions better than competitors
do.

Under the marketing concept, customer focus and value are the paths to
sales and profits.

Instead of product centric Make and sell philosophy, marketing concept
is a customer centered sense and respond philosophy.

Marketing concept starts with a well-defined market, focuses on
customer needs, and integrates all marketing activities that affect
customers. In turn it yields profits by creating lasting relationships with the
right customers based on customer value and satisfaction.
Eg.: Samsung Android Phones

New Trends in Marketing E Marketing
E Marketing or electronic marketing refers to
the application of marketing principles and
techniques via electronic media and more
specifically the Internet.
The terms e-Marketing, Internet marketing
and online marketing, are frequently
interchanged, and can often be considered
synonymous.
E-Marketing encompasses all the activities a
business conducts via the worldwide web
with the aim of attracting new business,
retaining current business and developing its
brand identity.
Internet marketing ties together the creative
and technical aspects of the Internet,
including design, development, advertising,
and sales.

What are the e-Marketing tools?
The Internet has a number of tools to offer to
the marketer.
A company can distribute via the Internet e.g.
Amazon.com, flipkart, eBay, yebhi, inkfruit etc.
A company can use the Internet as a way of
building and maintaining a customer
relationship e.g. Dell.com., yebhi.com, ebay.com
etc.
The money collection part of a transaction
could be done online e.g. electricity and
telephone bills.
Leads can be generated by attracting potential
customers to sign-up for short periods of time,
before signing up for the long-term.
The Internet could be used for advertising e.g.
Google Adwords.
The web can be used as a way of collecting
direct responses.

How a Google Adword looks like?
How Digital Marketing is done?
Internet marketing also refers to the placement of media along many different
stages of the customer engagement cycle through search engine marketing (SEM),
search engine optimization (SEO), banner ads on specific websites & email
marketing.

Internet marketing is associated with several business models:
E-commerce: a model whereby goods are sold directly to consumers (B2C),
businesses (B2B), or from consumer to consumer (C2C-eg: Magicbricks.com).

Lead-based websites: a strategy whereby an organization generates value by
acquiring sales leads from its website.
Eg: Real Estate Industry (Lodha Group)

Affiliate Marketing: a process wherein a product or service developed by one
entity is sold by other active sellers for a share of profits.
Eg: Oriflame and Avon

Viral Marketing: Viral marketing, viral
advertising, or marketing
buzz are buzzwords referring
to marketing techniques that use pre-
existing social networks to produce
increases in brand awareness or to
achieve other marketing objectives
(such as product sales) through self-
replicating viral processes.

Viral marketing may take the form
of video clips,
interactive Flash games, eBooks, brand
able software, images, or text
messages.
Eg.: Kolavari Di

New Trends in Marketing Marketing using social networks
Social media has become a platform that is easily accessible
to anyone with internet access. Increased communication
for organizations fosters brand awareness and often,
improved customer service.

The growth of social media has impacted the way
organizations communicate.

Social media serves as a relatively inexpensive platform for
organizations to implement marketing campaigns.

Emergence of channels like Facebook and Twitter have
reduced the barrier to entry in social media.

New Trends in Marketing Societal Marketing
An organization believes in giving back to the society by producing better
products targeted towards society welfare.

Societal marketing concept calls upon marketers to build social and ethical
considerations into their marketing practices.

They must balance and juggle the often conflicting criteria of company
profits, consumer want satisfaction and public interest.

A number of companies are adopting and practicing the societal
marketing concept.

Some companies practice a form of the societal marketing concept called
cause related marketing.
Eg: Green marketing

New Trends in Marketing Societal Marketing
Society
(Human
Welfare)
Consumer
(Wants
satisfaction)
Societal
Marketing
Concept
Company
(Profits)
New Trends in Marketing Relationship Marketing
Quality
Marketing
Customer
Service
R.M.
New Trends in Marketing Relationship Marketing
Relationship marketing is a strategy designed to foster customer
loyalty, interaction and long-term engagement.

Customer relationship management (CRM) approach focuses more
on customer retention than customer acquisition.

Relationship marketing is designed to develop strong connections
with customers by providing them with information directly suited
to their needs and interests and by promoting open
communication.

This approach often results in increased word-of-mouth activity,
repeat business and a willingness on the customers part to provide
information to the organization.


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Marketing Management

Prof. Pooja Fernandes

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