Unit -1 III BA A

Created by Dr.Subha B
Marketing Management
Marketing is the process of understanding and meeting customer needs through the
promotion, distribution, and sale of products or services. It focuses on creating value for both
the business and its customers.

Nature of Marketing
 Marketing as a Managerial Function: Describes how marketing is an organizational
process focused on strategic activities.
 Marketing as a Human Activity: Reflects the human-centric nature of marketing,
focusing on satisfying human needs.
 Marketing as an Economic Function: Highlights marketing’s role in the economic
process of transferring goods and services.
 Marketing as an Art and Science: Demonstrates the dual nature of marketing,
combining creativity (art) with data and analysis (science).
 Marketing as Customer-Centric: Emphasizes customer focus as a core principle.
 Marketing as Consumer-Oriented: Reflects the goal of fulfilling customer needs to
drive business.
 Marketing as Goal-Oriented: States that marketing aims for mutual benefits, especially
profitability through customer satisfaction.
 Marketing as a System of Interacting Activities: Describes marketing as a coordinated
process within business activities.
 Marketing as a Dynamic Process: Highlights the ongoing and evolving nature of
marketing functions.
 Creation of Utilities: Explains how marketing adds value through various forms of
utility.

Scope of Marketing
The points you have listed provide a detailed explanation of the scope of marketing,
highlighting the wide range of products and services that can be marketed. Here’s how these
categories contribute to the scope of marketing:
1. Goods: Tangible products like food, clothing, and electronics that fulfill customer
needs and are actively marketed.
2. Services: Intangible offerings such as medical care, consulting, or entertainment,
showcasing the marketing of non-physical products.
3. Experiences: Marketing based on customer experiences, combining goods and
services to create memorable events (e.g., theme parks, concerts).
4. Events: Time-based occurrences like sports events, festivals, and trade shows that are
promoted to attract participants or viewers.
5. Persons: Individuals, such as celebrities or professionals, marketed to build their
brand, visibility, and appeal (e.g., personal branding, celebrity endorsements).
6. Places: Cities, regions, or countries marketed to attract tourists, investors, or residents
(e.g., tourism campaigns, investment drives).
7. Properties: Real estate and financial assets marketed to potential buyers or investors,
emphasizing their value and ownership.
8. Organizations: Companies and institutions building a strong image and engaging
stakeholders through public relations and corporate social responsibility.
9. Information: Marketing knowledge, data, or research as a product, especially in
industries like consulting, education, or publishing.
10. Ideas: The promotion of concepts, ideologies, or innovations, often as the foundation
of new products or services (e.g., environmental campaigns, business strategies).

Importance of Marketing
 Analyzing Market Opportunities: Marketing identifies and analyzes consumer needs,
competitor strategies, and market trends to uncover new opportunities.
 Determination of Target Market: It helps businesses focus on the right audience,
ensuring products meet the specific needs of targeted customers.
 Planning and Decision Making: Marketing aids in strategic decisions regarding product
development, pricing, promotion, and distribution.
 Creation of Customers: It attracts new customers and retains existing ones by offering
products that satisfy consumer preferences.
 Increases Profit: Marketing boosts sales and profitability by expanding the customer base
and tapping into new markets.
 Improvement in Quality of Life: It drives innovation and enhances the quality of life by
delivering better products and services.
 Employment Opportunities: Marketing generates jobs in areas like research, sales,
distribution, and advertising, contributing to economic growth.

Functions Of Marketing
1. Market Research: Gathering and analyzing data about consumer needs, preferences,
and market trends to inform business decisions.
2. Product Development: Creating or improving products based on market needs and
consumer demands.
3. Pricing: Determining the right price for a product by considering factors like
production costs, competition, and consumer willingness to pay.
4. Promotion: Communicating the value of a product through advertising, sales
promotions, public relations, and other marketing efforts.
5. Distribution: Ensuring products are available to consumers through various channels
like retail stores, online platforms, or direct sales.
6. Sales: Engaging with customers to sell products, manage relationships, and provide
post-sale support.
7. Customer Service: Offering assistance and services to customers before, during, and
after purchasing a product.
8. Branding: Building and maintaining a strong brand image and identity to differentiate
from competitors.
9. Market Segmentation: Dividing the market into distinct groups of consumers with
common needs to target effectively.
10. Relationship Building: Fostering long-term relationships with customers through
loyalty programs, personalized communication, and excellent service.

Approaches of Marketing
1. Product or Commodity Approach: Focuses on the marketing of specific products,
studying their flow from producer to consumer, including sourcing, transportation,
and storage (e.g., rice). It's descriptive but repetitive and time-consuming.
2. Institutional Approach: Emphasizes marketing institutions like middlemen,
wholesalers, and retailers. It focuses on understanding the roles of these institutions in
moving goods but lacks insight into the interrelations between them.
3. Functional Approach: Concentrates on specific marketing functions like buying,
selling, pricing, and advertising. This approach emphasizes the role of each function
but overlooks their application to business operations.
4. Management Approach: Focuses on decision-making within firms, analyzing
controllable (e.g., pricing) and uncontrollable (e.g., economic changes) factors in
marketing. It's practical but often ignores theoretical aspects.
5. System Approach: Studies marketing as a system, focusing on the interconnections
and interrelations between marketing functions and feedback mechanisms. It
emphasizes coordination across business activities to achieve customer satisfaction
and profit.
6. Societal Approach: Views marketing as a way for society to meet its consumption
needs, emphasizing the ecological and societal impact of marketing decisions.
7. Legal Approach: Concentrates on the legal aspects of marketing, particularly the
transfer of ownership, but does not provide a complete view of marketing.
8. Economic Approach: Deals with supply, demand, and price from an economic
perspective but provides a limited understanding of marketing.

Market Segmentation Meaning

Market segmentation is the process of dividing a broad consumer or business market into
smaller, distinct groups of consumers or businesses that have similar needs, characteristics, or
behaviors. These groups, or segments, are identified based on shared factors such as
demographics, geographic location, psychographics (lifestyle, personality), or behavioral
patterns.
The purpose of market segmentation is to tailor marketing efforts, products, or services to
meet the specific needs of each segment, improving the effectiveness of marketing strategies
and customer satisfaction

Bases Of Market Segmentation

The bases for market segmentation can be broadly classified into following groups:

1. Customer based segmentation

2. Product related segmentation

Customer-Based Segmentation

This approach focuses on the characteristics and behaviors of consumers. It can be broken
down into several categories:

 Geographic Location:
o Segmentation based on where customers live. Segmentation based on the
physical location of customers, recognizing that preferences and needs can
vary depending on climate, region, and local culture.
o Example: A clothing brand offers winter coats in colder regions like Canada
while selling lighter apparel in warmer regions like Florida. Fast food
restaurants may also adapt their menus to local tastes (e.g., spicy options in
certain areas).
 Demographic Factors:
o Age:

Dividing the market based on age groups. Dividing the market based
on different age groups, allowing brands to tailor products to
developmental stages and interests.

 Example: A toy company designs products for different age ranges:

colorful blocks for toddlers (3-5 years), educational games for children
(6-12 years), and tech gadgets for teens (13-19 years).
o Income:
 Explanation: Segmenting based on customers’ income levels.
Segmenting based on customers’ income levels, helping brands
position their products according to consumers' purchasing power.
 Example: Luxury brands like Rolex target high-income consumers
with expensive watches, while discount retailers like Dollar Tree cater
to low-income shoppers with budget-friendly products.
o Gender:
 Explanation: Dividing the market based on gender. Dividing the
market by gender, acknowledging the differing needs and preferences
of men and women.
 Example: A skincare brand produces anti-aging creams for women
and beard oils for men, targeting the specific needs of each gender.
 Psychographics:
o Explanation: Focusing on consumers’ lifestyles, values, and interests.
Focusing on consumers’ lifestyles, values, and interests, allowing brands to
connect on a deeper emotional level and cater to specific beliefs and
behaviors.
o Example: A brand like Patagonia targets environmentally conscious
consumers by promoting sustainable outdoor clothing and gear, appealing to
those who value eco-friendliness.
 Behavioral Factors:
o Usage Patterns:
 Explanation: Segmenting based on how often consumers use a
product. Segmenting based on how often consumers use a product,
enabling businesses to tailor marketing strategies and reward loyalty.
 Example: A coffee shop may identify heavy users (daily customers)
and light users (occasional visitors) and create loyalty programs to
reward heavy users.
o Benefits Sought:
 Explanation: Dividing the market based on the benefits consumers
seek from a product. Dividing the market based on the specific benefits
consumers seek from a product, guiding brands in product
development and positioning.
 Example: A car manufacturer offers models focused on safety for
families, fuel efficiency for budget-conscious consumers, and
performance for car enthusiasts.
o Brand Loyalty:
 Explanation: Segmenting based on consumers’ loyalty to brands.
Segmenting based on consumers’ loyalty to brands, helping businesses
understand commitment levels and tailor strategies for retention.
 Example: A soft drink company may classify customers as hardcore
loyal (only buying Coca-Cola), soft-core loyal (alternating between
Coke and Pepsi), and switchers (frequently changing brands).

2. Product-Based Segmentation

This approach categorizes the market based on the products or services offered. Here are the
main categories:

 Product Features:
o Explanation: Segmenting based on specific features or characteristics of the
product. Segmenting based on specific features or characteristics of the
product, allowing brands to cater to different consumer needs and preferences.
o Example: Smartphone brands offer various models based on features: a high-
end model with advanced camera technology and a budget model with basic
features to appeal to different consumer needs.
 Quality Levels:
o Explanation: Dividing the market by the quality or performance of products.
o Example: In the automotive market, luxury brands like BMW focus on high-
quality, premium features, while economy brands like Hyundai target
consumers seeking reliable and affordable vehicles.
 Usage Occasions:
o Explanation: Segmenting based on when or how products are used.
o Example: Beverage companies create special flavors or packaging for
different occasions, like festive drinks for holidays and everyday beverages for
regular consumption.
 Benefits Offered:
o Explanation: Focusing on the specific benefits that products provide to
consumers.
o Example: Laundry detergent brands may offer formulas for specific needs,
such as stain removal, sensitive skin, or eco-friendly ingredients, catering to
different consumer priorities.

Importance of Marketing Segmentation

1. Targeted Marketing: It enables businesses to tailor their marketing efforts to specific
groups, increasing the relevance and effectiveness of campaigns.
2. Enhanced Customer Understanding: By segmenting the market, companies gain
insights into different consumer needs, preferences, and behaviors, allowing for better
product development.
3. Improved Product Development: Segmentation helps identify gaps in the market,
guiding companies to create products that meet the specific demands of different
customer groups.
4. Resource Allocation: It allows businesses to allocate resources more efficiently by
focusing on the most profitable segments, optimizing marketing budgets and efforts.
5. Increased Customer Satisfaction: By addressing the unique needs of different
segments, companies can enhance customer satisfaction and loyalty, leading to repeat
business.
6. Competitive Advantage: Effective segmentation can differentiate a brand from
competitors, positioning it more favorably in the minds of consumers.
7. Market Opportunities: It helps identify new market opportunities by highlighting
underserved or niche segments, allowing for expansion and growth.
8. Pricing Strategies: Understanding different segments enables companies to adopt
varied pricing strategies, optimizing revenue based on the willingness to pay within
each group.
Market Targeting Meaning
Market targeting is the process of evaluating and selecting specific market segments
to focus on when promoting and selling products or services. It involves identifying
the most attractive segments based on criteria such as size, growth potential,
competition, and alignment with the company’s strengths and objectives.
Types of Target Marketing
1.Target Marketing to a Particular Age Group

This strategy focuses on marketing products to a specific age group, like teenagers or middle-
aged adults. It’s important to understand the lifestyles and preferences of that group. For
example, a middle-aged woman might still be dating, while another might be focused on
family life. Research helps businesses identify what appeals to each age group.

2. Marketing to Income and Economic Status

This approach targets consumers based on their income levels. Products aimed at higher-
income customers often have higher prices, while those for lower-income consumers are
more affordable. By understanding the economic status of the target market, businesses can
set prices and create marketing campaigns that attract the right customers.

3. Gender-Specific Marketing

Gender-specific marketing tailors campaigns to appeal to one gender or a specific group

within that gender. For example, marketing to pregnant women would focus on products and
services that meet their needs. Research helps businesses decide on the right images, colors,
and language to attract their target audience.

4. Geographic Target Marketing

This strategy considers the different needs of consumers based on their geographic location.
Different regions may require different products or marketing approaches. For example,
beverage companies may introduce pumpkin-flavored drinks in the fall to match seasonal
preferences.

5. Psychographic Target Marketing

This approach focuses on consumers' activities, interests, and opinions:

 Activities: Targeting people based on what they do, like sports or professional
careers.
 Interests: Marketing to those who enjoy specific hobbies, such as collecting stamps
or antiques.
 Opinions: Considering consumer opinions when developing marketing strategies.

6. Target Marketing Based on Product Usage

This strategy segments the market based on how and when products are used:

 Use on Occasions: For example, promoting cakes for special occasions like birthdays
or holidays.
 Use in Situations: Marketing items like umbrellas during rainy seasons.
 Usage Type: Identifying heavy users (frequent buyers) versus light users (occasional
buyers) to tailor marketing efforts.

7. Target Marketing Based on Brand Preference

This focuses on how loyal customers are to a brand:

 Brand Loyal Customers: Those who always choose the same brand and don’t
switch.
 Brand Aware Customers: Those who frequently change brands based on different
factors.
 Unaware Customers: People who may not know certain brands exist.

8. Target Marketing Based on Decision Process

This considers how consumers make purchasing decisions:

 Understanding that decision-making can take time and may vary among consumers.
 Planning marketing strategies to effectively reach the target market.
 Positioning the brand for growth over time by adapting to consumer needs and
preferences.

Market Positioning
Market positioning refers to the process of establishing a brand or product in a specific place
within the minds of consumers relative to competitors. It involves identifying the unique
attributes or benefits of a product and communicating them effectively to the target audience.

Strategies of Market Positioning

1.Positioning Based on Product Characteristics

This strategy focuses on promoting a specific feature or benefit of a product that is valuable
to customers. For example, Toyota is known for reliability, Porsche for performance, and
Volvo for safety. Brands highlight these unique characteristics to attract consumers.

2. Positioning Based on Price

This approach involves setting a competitive price point to attract price-sensitive customers.
Brands may aim to be the cheapest option, like supermarket house brands. If a brand
identifies a gap in the market at a specific price, it can become the go-to option for that price
range.

3. Positioning Based on Quality or Luxury

Positioning a product as high-quality or luxurious emphasizes its prestige rather than its price.
Consumers often associate higher prices with better quality. For example, a Rolls Royce is
seen as a luxury car, even if its build quality might not surpass that of a less expensive car.
4. Positioning Based on Product Use or Application

This strategy links a product to a specific use or need. For instance, meal replacement
supplements may target different consumers: those looking for quick meals or those focused
on gym performance. Each product serves a different purpose, appealing to specific groups.

5. Positioning Based on Competition

This involves differentiating a product by highlighting how it stands out from competitors.
Brands may emphasize unique features or benefits to make their product seem more
appealing. They might also mimic successful strategies of leading competitors to attract
similar customers.

6. Positioning Based on Cultural Symbols

This strategy uses cultural symbols to create a strong brand identity. For example, Air India
uses the "maharaja" symbol to convey hospitality and Indian tradition. By associating a brand
with meaningful cultural elements, it can stand out in the market.