UNIT-1

Introduction

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MARKETING MANAGEMENT: DEFINITIONS

➢“Marketing is the creation and delivery of a standard of

living”.

➢“Marketing is a managerial and societal process by

which individuals and groups obtain what they need and
want through creating, offering, and exchanging
products and services of value with others”.
SHREYA JHA
MARKETING MANAGEMENT: DEFINITIONS

➢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.

➢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.
SHREYA JHA
 WHAT IS MARKETED?
1. Physical Goods
2. Services
3. Experiences
4. Events
5. Persons
6. Places
7. Properties
8. Organizations
9. Information
10. Ideas

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 Who Markets?

Marketers and prospects

• A marketer is someone who seeks a response-attention, a

purchase from other parties called prospect.

• If two parties are seeking to sell something to each other,

we call them both marketers.

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 Who Markets?
Market
• It is collection of buyers and sellers who transact over a
particular product or product class

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 A Simple Marketing System

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 Core Marketing concepts
Needs, Wants and Demand
• Needs are basic human requirement
• Wants are needs directed to a product
• Demand is a want accompanied by buyers ability to
pay.
Today the challenge for the marketer is that of
converting needs to wants to demands

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 Core Marketing concepts

Marketers don't create needs: Needs preexist markets. Marketers

along with other societal factors, influence wants.
Five type of needs
1. Stated needs (the customer wants an inexpensive car)
2. Real needs (the customer wants a car whose operating cost is low)
3. Unstated needs (the customer expects good service from dealer)
4. Delight needs
5. Secret need (the customer wants friends to see him as a savvy
consumer)
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 Core Marketing concepts

Target Markets, Positioning and Segmentation

• A marketers can rarely satisfy everyone in the markets.
• Marketers start by dividing the market into segments.
• They identify and profile distinct groups of buyers who might prefer
or require varying product mix by examining geographic,
demographic, psychographic, and behavioral differences among
buyer
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 Core Marketing concepts
• After identifying market segments, the marketer then decides
which present the great opportunity-which are its target market.
• For each, the firm develops a market offerings i.e. positions in
the minds of the target buyers as delivering some central benefits
• E.g. Scorpio (SUV) launched by M&M is designed for people
who prefer sturdy vehicle that offers luxury and comfort
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 Core Marketing concepts
Offerings and Brands

• Company address needs by putting forth a value proposition

(functional, emotional and self expressive benefits)

• A brand is an offering from a known source.

• The brand name carries many associations in peoples mind that make up
the brand image

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 Core Marketing concepts

Value and Satisfaction

• The offering will be successful if it delivers value and satisfaction to the

target buyer.

• The buyer choose between different offerings based on he/she perceive to

deliver the most value

• Value reflects the sum of the perceived tangible and intangible benefits and
costs to the customer
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 Core Marketing concepts
• Value is a composition of quality, service, and price (QSP) called the
customer value triad

• Value increases with quality and service and decreases with price
although other factors can also play an important role in our
perception of value

• Marketing can be considered as identification, creation,

communication delivery and monitoring of customer value.
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 Core Marketing concepts

• Satisfaction reflects person judgments of a product perceived

performance in relationship with expectations.

• If performance falls short of expectation he customer is dissatisfied

and disappointed.

• If it matches expectations, the customer is satisfied, if it exceeds

them, the customer is delighted.
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 Core Marketing concepts

Marketing channels

To reach a target market, the marketers uses 3 kinds of marketing channels

• Communication channels deliver and receive message from target buyers
and include newspaper, magazines, radio, TV, billboard and internet.

• Distribution channels is used to display, sell, or deliver the physical product

or services to the buyer or user. It include distributors, wholesalers, retailers
and agents.
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 Core Marketing concepts

• Service channels is used to carry out transactions with potential buyers.

It include warehouses, transportation companies, banks, and insurance
companies that facilitate transactions.

Marketer face a design challenge in choosing the best mix of

communication, distribution, and service channels for their offering.

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 Core Marketing concepts

Supply Chain

• The supply chain is a longer channel stretching from raw materials to

components to final products that are carried to final buyers

• Each company captures only a certain percentage of the total value

generated by supply chains value delivery system.

• When a company acquires competitors or expands upstream or

downstream, it aim to capture a higher percentage of supply chain value.
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 Core Marketing concepts
Competition
• Competition includes all the actual and potential rival and substitute a
buyer might consider
Marketing Environment
It consists of the task environment and broad environment
• The task environment includes the actor engaged in producing,
distributing, and promoting the offering
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 Core Marketing concepts
• These are company suppliers, distributor dealers, and the target
customers.

• In the supplier group are material suppliers and service suppliers, such as
marketing research agencies, ad agencies, banking and insurance
companies and transportation companies.

• The broad environment consists of six components: demographic

environment, political-legal environment and socio cultural, technical,
natural and economic
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Company Orientation toward the marketplace

The Production Concept

• It holds that consumers will prefer product that are widely available
and inexpensive.

• Manager of production oriented business concentrate on achieving

high production efficiency, low costs and mass distribution

• This orientation make sense in developing country

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Company Orientation toward the marketplace

The Product Concept

• It proposes that consumers favor products that offer the most
quality, performance, or innovative features.
• Manager in these organization focus on making superior product
and improving them over time.
• But a new or improved product will not necessarily be successful
unless its priced, distributed, and sold properly.
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Company Orientation toward the marketplace
The selling concept

• This concept holds that a organization must undertake an aggressive selling

and promotion effort.

• The selling concept is practiced most aggressively with unsought goods,

goods that buyer normally don’t think of buying.

• Most firm also practice the selling concept when they have over capacity.
Their aim is to sell what they make, rather than what the market wants.
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Company Orientation toward the marketplace

The Marketing Concept

• 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 chosen target
market.

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 Holistic
Marketing
Dimensions

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Company Orientation toward the marketplace

• The holistic marketing concept is based on development,

design, and implementation of marketing programs,
processes, and activities that recognizes their breadth and
interdependencies.

• It is an approach that attempts to recognize and reconcile the

scope and complexities of marketing activities
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Company Orientation toward the marketplace
Relationship Marketing

• A key goal of marketing is to develop deep, enduring

relationships with people and organization that directly or
indirectly affect the success of the firm`s marketing activities.

• Relationship Marketing aims to build mutually satisfying long-

term relationship with key constituent in order to earn and retain
business
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Company Orientation toward the marketplace

• Four key constituents for relationship marketing are customer,

employees, marketing partner (channels, suppliers, distributor,
agencies) and member of financial community (shareholders,
investors, analysts)

• To develop strong relationship with them requires understanding

their capabilities and resources, needs, goals, and desires
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Company Orientation toward the marketplace
• The ultimate outcome of relationship marketing is a unique company assets called
a marketing networks.

• A marketing networks consists of the company and its supporting stakeholders-

with whom it has build mutually profitable business relationships

• The operation principle is simple: build an effective network of relationships with

key stakeholders, and profits will follow.

• Attracting a new customer may cost five time as much as doing a good enough job
to retain an existing one.
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Company Orientation toward the marketplace
Integrated Marketing
• The marketers task is to devise marketing activities and assemble fully
integrated marketing programs to create, communicate, and deliver value for
customer.
• marketers should design and implement any one marketing activity with all
other activities in mind
• McCarthy classified these activities as marketing-mix tools of four broad
kinds, which he called 4ps of marketing: product, price, place, and promotion.

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 Marketing Mix
• Marketing mix is the set of marketing tool that the firm uses to pursue its marketing
objectives in the target market.

• McCarthy classified these tools into four broad groups that he called the four P’s of
marketing:

• Product, Price, Place and Promotion.

• The company preparing the offering mix of the products, services and prices and
utilizing a promotion mix of sales promotion, advertising, sales force, public
relations, direct mail, telemarketing, and internet to reach the trade channels and the
target customers. SHREYA JHA
• The firm can change its price, sales force size, and ad expenditures in the short run. It can
develop new product and modify its distribution channels only in long run.

• The four Ps represents the sellers view of marketing tools available for influencing
buyers.

• From buyers point of view, each marketing tool is designed to deliver a customer benefits.

• A complimentary breakdown of marketing activities has been proposed that centers of

customer four dimensions are (SIVA) solution, Information, Value and access.

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Marketing
Mix

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The New Four Ps
People

Processes

Programs

Performance

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 The New Four Ps

1.People-

• It reflects , in part, internal marketing and the fact that employees are
critical to marketing success.

• It also reflect the fact that marketers must view consumers as people
to understand their life more broadly, and not just as they shop for
and consume products and services.
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 The New Four Ps

2. Processes

• It reflects all the creativity, discipline, and structure brought to

marketing management.

• Only by instituting the right set of processes to guide activities and

program can a firm engage in mutually beneficial ling term
relationship.
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 The New Four Ps

3.Programs

• It reflect to firm consumer-directed activities

• It encompasses the old four Ps as well as range of other marketing

activities that might not fit as nearly into old view of marketing

• These activity must be integrated such that their whole is greater than the
sum of their parts and they accomplish multiple objectives for frim.

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 The New Four Ps

4. Performance

• To capture range of possible outcome measures that have financial

and non financial implications (profitability as well as brand and
customer equity) and implications beyond the company itself(social
responsibility, legal, ethical and community related)

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 Product Classification Schemes

Durability

Tangibility

Use

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 Durability and Tangibility

Nondurable
goods

Durable
Services
goods

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 Industrial Goods Classification

Materials and parts

Supplies/
Capital items
business services

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Company Orientation toward the marketplace
Internal Marketing

• It ensure that everyone in organization embraces appropriate marketing principles,

especially senior management.

• It is the task of hiring , training, and motivating able employees who want to serve
customer well.

• Smart marketers recognize that marketing activities within the company can be more
important than marketing activites directed outside the company

• It make no sense to promise excellent service befor the companies staff is ready to
provide it.
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Company Orientation toward the marketplace

Performance Marketing
• It is understanding the returns to the business from marketing activities
and programs as well as addressing broader concerns and their legal,
ethical, social, and environmental effects
• Top management is going beyond sales revenue to examine the
marketing score card and interprete what is happening to market share,
customer loss rate, customer satisfaction, product quality, and other
measures
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Company Orientation toward the marketplace

Financial Accountability

• Marketers are being increasingly asked to justify their investments

to sinior management in financial and profitability terms, as well in
terms of building brand and growing customer base.

• They are applying broader variety of financial measures to assess

the direct and indirect value their marketing efforts create.

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Company Orientation toward the marketplace
Social Responsibility Marketing
• The effect of marketing clearly extend beyond the company and the customer to
society as a whole.
• Marketers must carefully consider their role in broader terms, and the ethical,
environmental, legal, and social context of their activities
• The societal marketing concept holds that the organizations task is to determine
the needs , wants, and interest of the target market and to deliver the desired
satisfaction more efficiently and effectively than competitors in away to preserve
or enhances the consumers and society long term well being.
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Phases of Value Creation and Delivery

Assessing market opportunities and customer value

Choosing the value

Designing value

Delivering value

Communicating value

Growing and sustaining value

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Phases of Value Creation and Delivery
We can divide the value creation and delivery sequence into the following phases:

1. First, assessing market opportunities and customer value, which involves environment scanning and developing insights about
customer needs, wants, and motives.

2. Second, choosing the value includes critical decisions pertaining to segmenting, targeting, positioning, and branding, which is the
essence of strategic marketing.

3. Third, designing value relates to decisions involving product/service strategy, new offerings, and pricing.

4. Fourth, delivering value focuses on distribution and access issues.

5. Fifth, communicating value through integrated marketing communication, choosing among the various choices in mass and
personalized media.

6. Finally, the value so created needs to be grown and sustained through globalization and holistic marketing organization.

So, the value creation and delivery process begins much before there is a product/service and continues through development and after
launch. SHREYA JHA
The Value Chain

• Michael Porter of Harvard has proposed the value chain as a tool for
identifying ways to create more customer value.

• According to this model, every firm is a synthesis of activities performed

to design, produce, market, deliver, and support its product.

• The value chain identifies nine strategically relevant activities-five

primary and four support activities-that create value and cost in a specific
business.
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The Value Chain
➢The primary activities are inbound logistics or bringing materials into business;
operations or converting them into final products; outbound logistics or shipping out
final products; marketing theme, which includes sales; and serving them.

➢The support activities-procurement, technology development, human resource

management , and firm infrastructure-are handled in specialized department

➢The firms task is to examine its costs and performance in each value-creating
activity and to look for way to improve it

➢Managers should estimate their competitors costs and performances as benchmark.

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 Model of Consumer Behavior

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 Consumer Buying Process

Problem Recognition

Information Search

Evaluation

Purchase Decision

Postpurchase
Behavior
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Problem Recognition
➢The buying process starts when the buyer recognizes a problem or
need triggered by internal or external stimuli. With an internal
stimulus, one of the person`s normal needs rise to a threshold level
and becomes a drive. A need can be aroused by an external or by an
external stimulus.
➢Marketers need to identify the circumstances that trigger a particular
need by gathering information from a number of consumers.
➢Marketer may need to increase consumer motivation so a potential
purchase gets serious consideration.

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Information Search
Information Search
a)Personal- Family, friends, neighbors
b)Commercial- adv, websites, salespersons, dealer, packaging, displays.
c)Public- Mass media, consumer-rating organization
d)Experimental- Handling, examining, using the product

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 Successive Sets Involved in Consumer
Decision Making

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Information Search
b)Search Dynamics
➢Through gathering information, the consumer learns about
competing brands and their features.
➢Out of total set individual consumer will come to know only a subset
of these brand known as awareness set.
➢Some brands, the consideration set, will meet initial buying criteria,
as the consumer gather more information, only a few the choice set,
will remain strong contenders. The consumer makes a final choice
from this set.

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Information Search
➢Marketers need to identify the hierarchy if attributes that guide
consumer decision making in order to understand different
competitive forces and how these various set get formed.
➢Company must strategize to get it brand into the prospect awareness,
consideration and choice set

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Evaluation of Alternatives
How does the consumer process competitive brand information and
make a final value judgment?
➢There are several processes, and the most current models see the
consumer forming judgments largely on a conscious and rational
basis.
➢First the consumer is trying to satisfy the need. Second, the
consumer is looking for certain benefits from the product solutions.
third, the consumer sees each product as a bundle of attributes with
varying ability for delivering the benefits sought to satisfy this need

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Evaluation of Alternatives
➢Consumers will pay the most attention to attributes that deliver the
sought-after benefits. We can segment the market for a product
according to attributes important to different consumer group.
a)Belief and Attitude
➢ Through experience and learning, people acquire beliefs and
attitudes. This in turn influence buying behavior.

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Evaluation of Alternatives
B) Expectancy-Value model
➢A consumer arrive at attitudes towards various brands through an
attribute evaluation procedure. we develop a set of beliefs about
where each brand stands on each attribute,
➢This model of attitude formation posits that consumer evaluate
products and services by combining their brand beliefs- the positives
and negatives –according to importance.

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 Expectancy-Value model

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Evaluation Of Alternatives
➢Suppose a consumer assigned 40% of the importance to memory
capacity, 305 to graphic capability, 20% to weight and size and 10% to
price
➢Then perceived value of each computer
computer A= .4(8)+.3(9)+.2(6)+.1(9)= 8
Computer b =7
Computer C =6
Computer D =5

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Purchase Decision
Non Compensatory models of consumer Choice
➢Consumer often take mental shortcut using simplified choice heuristics.
Heuristics are rules of thumb or mental shortcuts in the decision process
a) Conjunctive heuristic-
➢ The consumer sets a minimum acceptable cutoff level for each attribute
and choose the first alternative that meets the minimum standard for all
attributes
b) Lexicographic heuristic
➢ The consumer choose the best brand on the basis of its perceived most
important attribute.
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 Stages between Evaluation of Alternatives
and Purchase

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Post Purchase Behavior
• Post purchase satisfaction
• Customer Lifetime Value
• Post purchase Action
• Post purchase use and Disposal

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 How Customers Use and Dispose of Products

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 Green Marketing

• Ecological issues are, today, the concern of all the corporate, who are
today being called upon to maintain the ecological balance by ensuring
that their product are biodegradable or they don’t involve indiscriminate
use of scarce natural resources
• Environmental activism has led to legislations and hence firm are now
required to comply with regulatory mechanism, thus ecological
Marketing also called `green marketing` has today come of age.

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 Why Green Marketing?

• Increasing, customer are becoming aware of the causes and effects of

polluted environment,. They are aware of the damage that polyutherane
bags have caused to the soil and drainage system .
• An aware customer now insists on a green product and packaging
materials
• Aware customers are joining together to form a interest group which
lobby.

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 Why Green Marketing?

• Aware customers are joining together to form interest group which lobby for eco
friendly products and legislation to protect their environment

• Given a choice, customers tend to buy eco-friendly products. This is especially

so in case where product are perceived as affecting customer daily life and
personal/family health.

• Being eco- friendly gives the firm a USP which competition may find difficult to
match. Even if it does, it would be perceive as just another `me too` and hence
prime mover advantage rests with the firm that takes the first step.
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 Toyota Experienced Success with Green Cars

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Consumer
Environmental Segments
a) True Blue Greens
➢ These are environmental leaders and activists.
They are characterized by a strong knowledge of
environmental issue. They are more likely than
the average consumer to engage in
environmentally conscious behavior, such as
recycling.
b) Greenback Greens
➢ They don’t have the time or inclination to
behave entirely green. However, they are more
likely to purchase green.

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Consumer
Environmental Segments
c) Sprouts
➢ They are environmental fence sitters. They feel some
environmental issues are worth supporting, but no other.
They will purchase a environmentally conscious product,
but only meets their needs.
d)Grousers
➢ They believe that their individual behavior cannot
improve environmental conditions. They are generally
uninvolved and disinterested in environmental issues.
e) Apathetics
➢ They are not concerned enough about the environment
to do anything about it. They also believe that
environmental indifference is mainstream.

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Consumer Value Positioning
➢Design environmental products to perform as well as(or better than
)alternatives.
➢Promote and deliver the consumer desired value of environmental
products and target relevant consumer market segment such as
market health benefits among health conscious consumers.
➢Broaden mainstream appeal by bundling consumer desired value
into environmental product such as fixed pricing for subscribers of
renewable energy.

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Green Marketing Mix and strategy
➢Green marketing mix differs from traditional marketing mix in
following ways
1. Eco- system are considered to be the most critical element in the
entire marketing decision making system. this represents the need
to screen marketing strategies for environmental impact and the
payment of eco-costs
2. The criteria for evaluating the marketing mix is whether it helps in
prevention of pollution .

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Green Marketing Mix and strategy
Key input in marketing mix

a) An Integrated approach to waste management, It involves strategies

for pollution prevention and resource recovery
b) Product design
➢ it will need to incorporate ecological attributes. The firm would need
to identify suitable packaging material for marketing the product.
➢ The product is starting point in determining whether the firm
marketing mix will be green or not. One must keep in mind that the
product design determines the type of resources and manufacturing
processes that can be used to create form and function.
➢ The product design also impact delivery systems.
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Green Marketing Mix and strategy
Key issues in marketing mix strategies
1. Identification of the waste stream associated with the product in
the manufacturing and distribution stages
2. Waste generated during use and disposal of product.
3. Identification of final disposal process
4. Can improvements be made within the existing manufacturing
system and technology which can help produce green products?
5. Are the suppliers green?
6. Do customers perceive the product as environmental friendly or
damaging?
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Cause Related Marketing
➢Many firm blend CSR initiatives with marketing activities
➢ Cause related marketing links the firms contribution towards a
designated cause the customers’ engaging directly or indirectly
revenue producing transactions with the firm.

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Cause Related Marketing
➢90% of US consumers have a more positive image of, are loyal to,
and trust more a company that supports a cause,

➢and 54% have bought a product because it was associated with a

cause

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 Cause Related Marketing
Benefits
Improve social welfare
Create differentiated brand
positioning
Build strong consumer bonds
Enhance the company`s public
image
Create a reservoir of goodwill

Drive sales and increase

firm market value

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 Cause Related Marketing Benefits from
branding point of of views
Build brand awareness

Enhance brand Image

Establish brand credibility

Evoke brand feelings

Create a senses of brand
Communities

Elicit Brand Engagement

SHREYA JHA
Digital Marketing
Digital Marketing
➢The web constitute a reliable, readily accessible and inexpensive
means of bringing together buyers and sellers, large and small, right
across the globe.
➢With web marketing, the market comes to the doorsteps of the
customer. It is a form of direct marketing.

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Digital Marketing
Benefits of Digital Marketing

a) Benefits the seller- Across to all markets, opportunity for

constraint- free growth, scope for enhancing marketing productivity
and reducing marketing costs.
b) Helps offer many services and product from a single stop
c) Help target the customer individually and customized the offer.

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Digital Marketing
f) Helps Reduce Costs
➢ Business /transaction cost
➢ Channel Costs
➢ Communication/ Promotion Costs

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Digital Marketing
www.Amazon.com
➢ The website Amazon is the largest bookstore in the world. Yet it has
no showrooms.
➢ It is a virtual bookstore on the net, an internet retailer of the book.
➢ It provide access to book reviews, to discussion groups and even
author themselves.
➢ Amazon has extended itself furthur to sell electronics and toys over
the net and launched two new `stores` Amazon.com electronic, and
Amazon.com Toys & Games

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Virtual Marketing Manager's service
1. Web Design
• Consultation to determine the objectives and requirements of your
business' website
• Virtual Marketing Manager can provide a complete website solution,
from strategy to concept to copywriting.
• The result is a website that represents your company and brand,
complementing your other marketing and sales activities

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Virtual Marketing Manager's service

2.Online Marketing
• Virtual Marketing Manager can develop a comprehensive
online marketing strategy, effectively targeting your key
audiences and evolving into a solid online presence. This can
include:
• Email marketing (or EDM - electronic direct marketing)
• Social Media Strategy and Implementation
• Blogging Strategy and Implementation.
• Online Advertising
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Thank You for your participation

For any queries, please contact:

[email protected]
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