Marketing Management

MMM/MFM/MIM/MHRDM
Semester II
Prof M R Koshti
Session 1
30 slides

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 Evaluation
• Written exam …..60 marks
• Attendance ……10 marks (CR / Dy CR will take
attendance at the end of the session, marking P/A)
• Class participation .…10 (Chit system)
• Write name, roll no. immediately
(Nontransferable), place it on your desk, give it
back to me after the session
• Presentations …..20 marks**

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 Mother tongue ?
• You do not have to learn it
• You learn it automatically because…
• You grow in its surrounding right from your birth
• Similarly you grow in the surrounding of Marketing “as a
customer” right from your childhood
• You have therefore already learnt Marketing…and you are
expert in marketing**

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 Marketing plan
• BMS / Exposure to Marketing Management as a subject?
• Assume yourself a Marketing Manager
• Your company is planning to manufacture a bathing soap
within a month
• Make a program for selling that soap for the next one year
profitably. (Think of the factors that make you buy the soap
that you use)
• Time 20 minutes
• Do not worry about mistakes
• Randomly chosen 5 students to present their plans
• Not more than 3 minutes**

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Product Price Promotion Place**

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 Marketing mix
• Product
• (kites with star’s photo, Nova tamperproof
seal having hologram of Nova)
• Price
• Promotion
• Place
• 4 P’s of marketing – Marketing mix**

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 Cause effect relationship
• Cause / Trigger – Marketing
• Effect – Sales (Top line in the profit and loss
account)
• Sales therefore is a barometer of marketing
• Consistent higher sales means marketing was
good and vice versa**

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 Effect of sales on profits
• Sales Rs 1000 Cr • Sales Rs 950 Cr (discounts)
• Cost of goods sold Rs 750 • CGS 750 Cr
Cr • Overheads 150 Cr
• Overheads Rs 150 Cr • Profit ?
• Profit ? • Rs 50 Cr
• Rs 100 Cr • Observation?
• Reduction in sales 5%
• Reduction in Profit 50%

A mere 5 % drop in sales results in massive 50 % drop in profits !!!

Imagine your this month’s salary will be 50% lower!! Profit is

organization’s salary.** 9 of 30
 DNA 3/9/08
• Shoe tycoon Thomas J Bata dies
• Age 94
• He introduced himself in his business card as
“Chief Salesman”
• No wheel moves unless a sale is made
• Salespeople are the bread earners for the
organization
• Sell / Assist salespeople in selling**
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 Concepts
• Production concept – Customers queue up. The critical
aspect is to produce as much as possible at lowest cost.
• (Tabelas)
• Selling concept- Sell what you produce.
• You can choose any color as long as it is black. Ford
• salesman in the store selling the Sari that he has, when not
having what you want
• Marketing concept
1. Customer orientation. Customer is the king
2. Competition orientation
3. Respond to environmental changes before the competition**

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 Marketing concept
• The business should start with the
determination of consumer wants..
• And end with the satisfaction of those wants
• The marketing concept thus puts customer at
both the beginning and the end of the
business cycle**

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Definition of marketing?

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Marketing is an art of selling products??
• Peter Drucker
• There will always, one can assume, be need for selling.
• But the aim of marketing is to make selling superfluous.
• The aim of marketing is to know and understand the customer’s needs so
well that the product or service fits him and sells itself.
• Ideally , marketing should result in a customer who is ready to buy.
• All that is needed then is to make the product or service available
• MHADA Flats,
• NOVA Cream**

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 Social definition of marketing
• 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 (benefit-cost) with others.
• Non-social marketing
• Abu Salem
• Monica Bedi**
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 Define marketing
1. Marketing means (a) understanding and
responding to customer needs,
2. and (b) serving them in such a way that it
helps the selling organization fulfill its
objective of profit maximization
• Marketing is the process of finding consumer
needs and serving those needs profitably
• Every employee is a marketer – convey a
consistent image to the stakeholders**
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 Define marketing
• Shortest definition of marketing
• “Meeting needs profitably”**

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 Needs, wants and demands
• Needs are basic human requirements
• Air, food, water, clothing, shelter to survive
• Recreation, education, entertainment
• These needs become wants when they are directed to specific
objects that might satisfy the need
• A consumer in US needs food but want hamburger, french
fries, soft drink
• A person in India needs food but may want Wada Paw,
chapatis, rice, curry and yogurt
• Wants are shaped by our society**

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• Demands are wants for specific products backed by an ability to
pay
• Marketer creates needs?
• Marketers get people to buy things they don’t want?
• Marketers do not create needs. They pre-exist
• Maslow’s theory – 1 Physiological (Food, shelter, cloths, sex) 2
Security 3 Belongingness 4 Ego / esteem 5 Self actualization
• M Times 7/1/10 condom m/c s for soldiers
• DNA 7.1.10 Trek Equinox Corima bicycle , price?
• Rs 2 lac
• Marketers along with other social factors influence wants.**

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 Marketing Management
• Marketing management is…
• an art and science…
• of choosing target markets (customers)…
• and getting, keeping, and growing
customers..
• through creating, communicating, and
delivering, …
• superior customer value (benefit-cost)**
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 Reasons for growing importance of
Marketing
• Fast changing social behavior
• Rising income levels
• Mass communication and transport facilities
• Increased education facilities and literacy level
• Rise in standard of living
• Increased competition
• Technology driven products creating demand
• Increased international cooperation**

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Relevance of marketing in India

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 Bigger ever population fall for Japan….DNA
3/1/09
• Japan’s population had its sharpest decline ever last year…
• As deaths outnumbered births, ….
• Posing an escalating economic threat to growth prospects,…
• Amid a global recession.
• With low birthrates and long life-spans, Japan’s shrinking
population is aging more quickly than any other economic
power.
• About one fifth of Japan’s 126 million people are aged 65 or
over**.

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 Relevance of marketing in India
• Population of 100 Cr
• Growing at 2.1% annually
• 6 lac villages, 4000 towns
• area 3.3 mln sq km
• Rural population (70%)
• Rising disposable income
• Growing needs
• 1992 liberalization
• Competition from MNCs (people exposed to western marketing
practices)
• Immunity to old marketing practices**

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 …Relevance of marketing in India

• Democracy
• Elections – External appearance political
• Internal – Its all Marketing (Political
Marketing)
• Psephology – 1984 “India Today – MARG”
• Predicting the winner on the basis of survey
prior to elections
• Product – Political Party / Candidate**
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 …Relevance of marketing in India
• India shining, Gramin Vikas, Employment guarantee schemes
ads on TV, Print…
• 26/11 Terrorists attacked Mumbai, claimed lives of 3 top
police officers
• Almost all political parties were quick, not in rehabiliating the
bereaved families, but..
• in printing Shradhanjali banners overnight with the photos of
their political leaders
• T20 world cup felicitation in Mumbai (political leaders in the
front row / players in 2nd)
• Commercialization of festivals (Goinda vests, economic Mithai
packs in Divalee)
• Questions?**

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 Teaching method
• First 30 min – Activity (Be punctual)
• 60 min teaching
• 20 min Question / answers
• 10 min Attendance
• CR should copy the PPTs at the end of the
session from the PC in the class and email to
all immediately
• PPTs 60% marks. Additional effort 40%**
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 Reference books
• Marketing management, A South Asian
Perspective – Kotler, Kellin, Koshy, Jha
• Marketing Management – Arun Kumar,
Minakshi
• Marketing Management – Rajan Saxena**

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 Syllabus
• Introduction to marketing concepts, its relevance in India,
marketing mix, structures and systems
• Environment scanning and market opportunity analysis
• Buyer behavior – household, and industrial / organizational
• Market segment and segmental analysis
• Market estimation – Market potential, demand forecasting, and
sales forecasting
• Marketing information systems
• Marketing research
• Market planning
• Product mix decisions – product identification, product lifecycle,
branding and packaging**

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 …..
• New product development and management
• Pricing policies, structures and methods
• Concept of regulated prices in selected industries
• Promotion decision- communication process, promotion mix,
promotion strategies with reference to consumer and
industrial products
• Advertising and personal selling decision
• Distribution management – importance of distribution in
developing country (Role of middleman, identification,
selection, and managing dealers, distribution channels, channel
management – Physical distribution
• Performance and control – Marketing audit*****

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