Marketing Management

Prof. Rubina D’Mello

Course Content
 Introduction to Marketing
 Marketing Environment and Evaluation of market opportunities
 Market research and marketing information system
 Demand forecasting and market potential analysis
 Consumer buying process and organizational buying behaviour
 STPD
 Marketing mix
 Product decision-product life cycle
 New product development process
 Distribution decisions
 Promotion decisions-IMC, communication tools
 Personal selling and sales management
 Pricing decision
Introduction to Marketing
How Satisfied are you with Existing
Products?
How flawless are Existing Products?
“Everything in the world remains to be done or
done over. The greatest picture hasn't been
painted. The ideal labour contract is yet
unwritten. A windproof match, an airtight bottle
cap, a lifetime lead pencil have not yet been
conceived. The best way to train salesmen, an
easy way to keep slim.... all of these problems are
unsolved. Not one product has every been
manufactured, distributed, advertised, or sold as
efficiently as it should be or someday must be.”

- Anonymous
 Good marketing begins with

The roaring success

of four-wheeler Tata
Ace, in a market
earlier dominated
by three-wheeler
load carriers, was
due to a deep
understanding of
the customer needs.
 Marketing is a profit centre
Corporate Resource
Allocation

Finance
Production R&D
Inventory
Cost of Holding Costs R&D
Goods Sold Expenditure

Marketing Marketing = Profit Centre Net

Budget Contribution
Advertising Market Research
Expenditures Revenue Expenditures
From Sales
Advertising Service
Agency Firm
Distribution
What is Marketing?
 Social definition
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
What is Marketing?
 Management definition
It is the process of planning and
executing the conception, pricing,
promotion and distribution of ideas,
goods and services to create exchanges
that satisfy individual and organizational
goals.
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
What Is Marketing Management?
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
 For an Exchange to Occur…
 There must be at least two parties
 Each party has something that might be of value to the
other party
 Each party is capable of communication and delivery
 Each party is free to accept or reject the exchange offer
 Each party believes it is appropriate or desirable to deal
with the other party
Core Marketing Concepts
 Needs and wants
 Demand
 Target market
 Product
 Value and satisfaction
 Marketing channels
 Supply chain
 Competition
 Maslow’s Hierarchy of needs
Lower-order needs Higher-order needs

Physiological and Social, esteem and

Safety needs Self-actualization
needs
Needs and Wants
 Needs are basic human requirements
 Wants are needs directed to specific
objects/services that might satisfy the need
 Five Types of wants
 Stated Wants (you want an inexpensive laptop)

 Real Wants (you want a laptop that will last for several years without any
hitch)

 Unstated Wants (you expect good after sales service)

 Delight Wants (you would love to have a laptop having high battery
backup facility)

 Secret Wants (you want to be seen by peers as smart and intelligent)

Product
 A product is any offering catered to satisfy
needs and wants.
 A brand is when the product is from a known
source.
Demand
 This is the wants for specific products backed
by an ability to pay.
Target Market
 Very rarely does a product cater to the entire
market. Most products are designed to cater
to a group of customers who specifically
want such a product. This group of
customers is the target market which is a
slice of the total market. We say it is the
market segment.
Value and Satisfaction

 Value = Benefits/Costs
 Benefits = Functional Benefits + Emotional
benefits
Exchange
 Get something (product /service) by offering
something in return.
Eg. kind (barter) or money (value )
 Exchange is a value creating process because
it leaves both parties better off
(win – win situation)
Marketing Channels
 Marketing channels are used to reach the
target segment.
 Communication channels
eg. Advertising, telephone enquiry system
 Distribution channels – trade, direct sales
Supply Chain
 The supply chain represents a value
delivery chain – from procurement of raw
materials to final delivery of product to
consumer.
Competition
 Potential and rival substitutes and offerings a
buyer might consider.
 Competition can be viewed in various
perspectives – brand, industry, form,
generic
What Is Marketed?
 Goods  Places and
 Services Properties
 Events and  Organizations
Experiences  Information
 Persons  Ideas
What are Markets?
 Key Customer Markets
 Consumer markets
 Business markets
 Global markets
 Government
 Nonprofit
Structure of flows in a modern
exchange economy
Resources Resources
Resource
Money Money
market
Taxes, Services,
goods money
Services,
money Taxes
Manufacturer Government Consumer
markets markets markets
Taxes, Services
goods
Services, Taxes,
money goods

Money Money
Goods and services Intermediary
Goods and services
markets
Marketing system

Communication

Goods/services
Industry Market
(a collection of sellers) (a collection of buyers)
Money

Information
Approaches to Marketing (examples?)

 Product orientation
 Production orientation
 Sales orientation
 Marketing orientation
 All staff focus on consumer needs

 Competitor awareness

 All departments aim for timely solutions

 Market-based management

 Segmentation and target marketing

 Societal/holistic marketing orientation

Holistic Marketing Dimensions
 Holistic marketing includes these dimensions:
 Internal marketing
 Performance marketing
 Relationship marketing
 Integrated marketing
 Holistic Marketing Dimensions
Senior Products &
Marketing Management Other Services Channels
Department Departments Communications

Internal Integrated
Integrated
Internal
Marketing Marketing
Marketing
Marketing

Holistic
Holistic
Marketing
Marketing

Sales revenue
Performance Relationship
Relationship
Performance
Marketing marketing
marketing
Brand & Marketing
Customer equity

Ethics
Environment Community Customers Channel Partners
Legal
Marketing Environment
 Competition  Product
 Customers  Import tariffs
 Govt. policies  Trends
 Suppliers  Technology
 Trade  Politics
Marketing Mix
 It is the tools that an organization employs to
pursue its marketing objectives in the target
market
 Product, Price, Place, Promotion
 4 C’s – Customer solution, Cost,
Convenience, Communication