Marketing Management

What is Marketing ?

How is Marketing different from Sales ?

Meeting human & social needs profitably

Marketing is a societal process by which

individuals and groups obtain what they need
and want through creating, offering and
freely exchanging products and services of
value with others.
Mktg. Manager - more than Sales Mgr.

 What features to design into a new product.

 What prices to offer to customers.
 Where should the products be sold.
 How much to spend on advertising.
 How to differentiate his offerings.
 How to grow the business.
 How to build stronger brands.
 How to customize offering
and so on………
Core of Marketing
 Needs – Basic human requirements.
 Wants – Needs directed to specific
objects.
 Demands – Wants backed by an ability
to pay.

Where is the role of Marketers ?

Marketers influence wants
What can be marketed ?
Entities currently Marketed
• Goods • Places
• Services • Organizations
• Events • Information
• Experiences • Ideas
• Persons • Properties
 Current Marketing Scenario in India
 India has become buyers market from sellers
market.
 India has attracted several MNC’s and they are
hiring Indians because in India it is the MADE FOR
INDIA marketing strategies that work.
 Significant shift from traditional agriculture based
economy to service based economy.
 Market fluctuations are due to demand-supply
chain and govt. interference has reduced.
 High disposable incomes have led to high
standards of living.
Economic Indicators
 GDP growth after being more than 9% for
3 yrs(2005-08) and then dipping, is again
expected to rise to 7.5% this yr.
 Disposable & Per capita incomes are all
time high.
 Forex reserves & FII’s are very healthy.
 Industry growth rate & Stock markets are
back on track after the melt down.
 Macro challenges for Mktg. Manager
 Globalization : Competition with foreign brands.
 Fast Changing Tech. : Products become outdated fast.
 Customization : One product for each customer.
 Customer Empowerment : (1) Buyers mkt. (2) High
customer awareness.
 Retail Transformation : Big(financial muscle) killing
small.
 Industry Convergence : Companies entering into
different portfolios eg Bharti, Videocon.
 Government policy.
 Society Perception & Value Marketing
 Other Challenges/Shifts in mktg.
FROM TO
1) Mktg Deptt. does mktg. 1) Everyone does mktg.
2) Manufacturing everything. 2) Outsourcing parts.
3) Emphasizing tangible assets. 3) Emphasizing intangible assets
e.g. brands, customer base,
employees, intellectual cap
etc.
4) Building brands through
4) Building brands thru adv. performance.
5) Trying to be best firm serving
5) Selling to everyone. well defined target markets.
6) Focus on profit. 6) Focus on customer.
 Other Challenges/Shifts in mktg.
FROM TO
7) Being local. 7) Being Glo-cal.
8) Attracting customer thru 8) Making products sell on line.
stores.
9) Gaining market share. 9) Building customer share.
10) Relying on old mkt. positions. 10) Being Innovative.
11) Company structure as per 11) Company structure as per
products lines. customer segments.
12) Using many suppliers catering 12) Using fewer suppliers focused
to many firms on one firm.
Financial Sector
 Banks
 Insurance Companies
 Stock Markets
 Venture Capitalists
 Private Equity Players
• ATMs • Product Insurances
• Credit/Debit Cards • Life Insurances
• Internet banking • Other Saving & Investment
• Phone banking Instruments
• More car & home
loans
Challenges for Mktg.Managers
 Adept to face increasing transaction volumes,
regulation and the integration of previously
disparate global markets
 Agile at identifying and managing risk
 Optimized in both business & technology,
operationally efficient
 Professionals to have knowledge of
Business/Industry and technical competence
Telecom Sector
 Contribution of telecom sector in terms of revenue is
more than 2% of GDP.
 Mobile Tariffs in India one of the Lowest at US$0.02
 Value added services like M-Marketing, internet, ring
tones, MMS etc. on offer
 As globalization is increasing, more %age of global
business for Indian telecom.
 Broadband penetration is very low, hence vast
scope.
 Technologies like 3G, WiMAX, Video conf., mobile
TV will open up new frontier of business.
Challenges for Mktg.Managers
 No. of operators are increasing per circle:
hence more competition
 ARPUs are going down
 Cost/ Customer is very high in rural areas
 Spectrum – a scare commodity
 Infrastructure readiness in rural
 PC prices are very high
 Availability of Contents in local language
 Availability of Contents for Rural Population
 International Bandwidth is costly
 Telecom Manufacturing in India.
 Automobile Sector
 The automobile industry in India happens to be the
seventh largest in the world.
 India is Asia’s fourth largest exporter of automobiles.
 Availability of finance, Increase in disposable income &
launch of low cost models has brought automobiles in
the reach of common man.
 Foreign players are adding to their investments in
Indian auto industry.
 It contributes about 5% in India’s GDP.
 Challenges for Mktg.Managers
 Effect of rising fuel prices.
 Lack of proper infrastructure like roads and
bridges.
 Highly dependent on after sales service. Cost of
maintenance going up.
 Changing expectations forcing companies to
launch new products very fast.
 Highly capital intensive sector eg wide spread of
products like in Cars there are four segments – A,
B, C, D with A the cheapest.
 Inventory mgmt.
 Effect of inflation on both cost per unit and no. of
unit sales.
Power Sector
 India has the fifth largest electricity generation capacity
in the world. Total installed capacity is 126839 MW.
 Huge demand-supply gap. Hence is costly.
 Zero customs duty on import of capital goods for mega
power projects.
 Income tax holiday for generating plants for 10 years
 Electricity generation mix is heavily dependent on
coal /thermal at around 70% with hydro contributing
to 26%.
 Low per capita consumption of around 606 units.
 Challenges for Mktg.Managers
 Transmission & Distribution losses.
 Large scale theft.
 Inefficient use of electricity by the end
consumer.
 Optimum power cost (Increasing tariffs).
 Quality power & power for all (frequent
shutdowns).
 Network constraints(Lack of quality equipmt).
 High Corruption (delay in new connections).
 Skewed tariff structure.
Aviation Sector
 India is 9th largest aviation market in the world. India has
128 airports; of these 15 are designated as international
airports.
 ‘Open Sky’ Policy of the Government and rapid air traffic
growth have resulted in the entry of several new privately
owned airlines and increased frequency/flights for
international airlines.
 100% tax exemption for airport projects for a period of
10 years.
 India witnessing increased no. of business travelers and
incoming/outgoing tourists.
 Privatization of Delhi & Mumbai airports.
 Challenges for Mktg.Managers
 Initializing privatization in the airport activities. To build world-class
airports with modern technology and encourage greater efficiency in
Airport Operations.
 To make the airport user friendly and achieve higher level of
customer satisfaction. Development of growing regional airports.
 To lay special emphasis on the development of infrastructure for
remote and inaccessible areas.
 To provide airport capacity ahead of demand. To expand major
airports for the increased flow of air traffic.
 Modernization of the airlines fleet to handle the pressure of
competition in the aviation industry.
 Maintenance of the aircraft for the safety of passengers & aircraft.
 Costs & Margin pressures (operation costs, ATF prices & staff cost).
 Skilled manpower (pilots, crew & ground staff).
Retail Sector
 The contribution of retail industry to India’s GDP is more than
13%. Indian retail industry (organized as well as unorganized)
spreads over more than 7 million outlets (2.9 million urban and
4.1 million in rural).
 Retailing in India is still thoroughly unorganized. There is no
supply chain management perspective.
 Rising income and greater purchasing power of the Indian
customer. Significant increase in the number of brands.
 Media boom leading to an increased level of awareness levels
and exposure to the international trends.
 Shopping is becoming an outing or a way of family
entertainment. Thus families now spend greater time in shops.
 Psychographic & demographics changes in the Indian consumer
behavior.
 Challenges for Mktg.Managers
Macro Level -
 Real Estate Costs
 Supply Chain Inconsistency
 Absence of Infrastructure and good retail space
 Lack of Skilled Workforce (talent crunch)
 IT Infrastructure

Micro Level –
 Inventory Management.
 Wafer thin margins. Hence difficult to achieve break point.
 Legal matters.
 Operations & Administration.
FMCG Sector
 The favorable demographics, higher incomes, low penetration and
growing per capita consumption. India’s per capita consumption
remains the lowest in the world
 Strong rural growth backed by higher agricultural incomes and
increase in the value of land which is leading to more money in the
hands of farmers.
 Companies have passed on the cost push inflation to consumers via a
judicious blend of price hikes, package size reduction.
 Proliferation of modern trade which currently accounts for 5% of
sales but is growing at around 25-30% yoy.
 Increased innovations and forays in new fast growing categories by
most players.
 Large domestic market & changing lifestyles.
 Challenges for Mktg.Managers
 Consumer keeps limited inventory of these products (many of which
are perishable) and prefers to purchase them frequently, as and
when required.
 Brand switching is often induced by heavy advertisement,
recommendation of the retailer or word of mouth.
 Creating awareness and develop franchise for a new brand requires
enormous initial expenditure on launch advertisements, free samples
and product promotions.
 A highly scattered market, supply of small value SKU's and poor
transport infrastructure makes logistics extremely difficult.
 Maintenance of huge distribution n/w is extremely critical for
success.
 Significant presence of unorganized sector & fairly simple basic
technology for most products makes it very competition oriented
sector.
 IT/ITES Sector
 IT services contribute over 8% of the overall GDP.
 India is a popular choice for customers seeking
outsourced services because it is able to offer a 24*7
services by reduction in costs while maintaining
quality.
 IT Exports account for 35% of the total exports with
potential of creating 3.5 million jobs in IT every year.
 One way in which India stands out from other Asian
economies is in the better performance of IT in its
service sector.