MARKETING MANAGEMENT

P. VINATHY, ASSISTANT PROFESSOR MBA- LIET

MARKETING

LEARNING OUTCOME:

AIM: TO UNDERSTAND THE BASIC MARKETING CONCEPTS THROUGH CASE STUDIES

By readin !e"! and re#a!in !$e %&n%e'!( !$r&) $ %a(e( !$e (!)den! *&)#d +e a+#e !& )nder(!and !$e %&n%e'!( &, -ar.e!in -ana e-en!. A+i#i!y !& ana#y/e -ar.e!( and de(i n %)(!&-er dri0en (!ra!e ie( and *i## +e a+#e !& %&--)ni%a!e !$e de%i(i&n( !&*ard( +)(ine(( de0e#&'-en! *i!$ ()'eri&r %)(!&-er 0a#)e.

CONTENTS:
UNIT I : INTRO1UCTION TO 2ORL1 OF MAR3ETING UNIT II : ANALY4ING MAR3ETING OPPORTUNITIES, CUSTOMER VALUE AN1 MARR3ETING MI5 UNIT III : 1ESIGNING A CUSTOMER 1RIVEN STRATEGY UNIT IV : 1ISTRIBUTION 1ECISIONS, PROMOTION 6 COMMUNICATION STRATEGIES UNIT V: PRICING 1ECISIONS 6 PERSONAL COMMUNICATION

INTRO1UCTION TO THE 2ORL1 OF MAR3ETING

I-'&r!an%e S%&'e C&re -ar.e!in %&n%e'!( Mar.e!in '$i#&(&'$ie( Mar.e!in en0ir&n-en! Mar.e!in (!ra!e ie( and '#an( 1e0e#&'ed V( de0e#&'in -ar.e!in Mar.e!in re(ear%$-de,ini!i&n &, MR,MIS C&--i((i&nin MR MR On#ine MR and E!$i%( In!erna!i&na# MR

Mar.e!in i( de,ined
7A (&%ia# and -ana eria# 'r&%e(( +y *$i%$ indi0id)a#( and r&)'( &+!ain *$a! !$ey need and *an! !$r&) $ %rea!in and e"%$an in 'r&d)%!( and 0a#)e *i!$ &!$er(8 - Philip Kotler 7 T$e 'er,&r-an%e &, +)(ine(( a%!i0i!ie( !$a! dire%!( !$e ,#&* &, &&d( and (er0i%e( ,r&- 'r&d)%er !& %)(!&-er &r )(er8 - American Marketing Association

E0&#)!i&n &, Mar.e!in

Pr&d)%!i&n Era 9:!$ %en!)ry - 9;<=

Sa#e( Era 9;<= - 9;>=

Mar.e!in Era ,r&- 9;>=

PRO1UCTION ERA
La*, ()''#y %rea!e( i!( &*n de-and T$e -ar.e! *a( (e##er( -ar.e! 1e-and *a( -&re !$an !$e ()''#y N& i-'&r!an%e ,&r !$e Pr&d)%! ,ea!)re( C)(!&-er( *ere %&n%erned &n#y a+&)! !$e a0ai#a+i#i!y &, !$e 'r&d)%! , n&! i!( ,ea!)re(

Sa#e( Era
Pr&d)%in !$e &&d( *a( n&! e0ery !$in , a %&-'any a#(& $ad !& (e##. C&-'anie( -ade !$eir 'r&d)%!i&n 'r&%e((e( e,,i%ien!. C&-'anie( rea#i/ed !$e need ,&r 'r&d)%! 'r&-&!i&n and di(!ri+)!i&n. M&re ,&%)( *a( &n (e##in . C&-'anie( rea#i/ed !$a! in,&r-a!i&n a+&)! !$e #i.e( and di(#i.e( &, !$e %)(!&-er( !& (!i-)#a!e de-and. Mar.e! re(ear%$ de'ar!-en!( *ere %rea!ed !& %&##e%! and ana#y/e -ar.e! da!a

Mar.e!in era
In (a#e( era %&-'anie( i n&red %)(!&-er need( and *an!(. In ear#y 9;>=?( %&-'anie( rea#i(ed !$a! !$ey *&)#d ,ai# i, !$ey did n&! (a!i(,y %&n()-er need(. Mar.e!in era (!ar!ed in -id 9;>=(. C&-'anie( ,&%)(ed -&re &n -ar.e!in ra!$er !$an (e##in . C&-'anie( %$an ed ,r&- ')($in !& ')##in . F&%)( *a( n&! a%$ie0e -an),a%!)rin (a!i(,y !$eir need( and *an!(. &a#( +)! !&

S%&'e and I-'&r!an%e

T$e +a(i% &+@e%!i0e &, -ar.e!in i( !& a!!ra%! ne* %)(!&-er( +y 'r&-i(in and &,,erin ()'eri&r 0a#)e and !& re!ain and r&* %)rren! %)(!&-er( +y de#i0erin (a!i(,a%!i&n. Mar.e!in dea#( *i!$ %)(!&-er( -&re !$an any &!$er +)(ine(( ,)n%!i&n , and dea#( -ain#y *i!$ %)(!&-er(. Mar.e!in i( e((en!ia# ,&r !$e ()%%e(( &, e0ery %&-'any, *$e!$er #ar e &r (-a## , #&+a# &r na!i&na#. B)i#din %)(!&-er re#a!i&n($i'( +a(ed &n %)(!&-er 0a#)e and (a!i(,a%!i&n i( !$e %&re idea &, -&dern -ar.e!in . T$e (%&'e &, -ar.e!in i( n&! re(!ri%!ed !& &n#y 'r&,i! -a.in %&-'anie( , i! i( a#(& )(ed +y n&n-'r&,i! &r ani/a!i&n( #i.e %$)r%$e( , %&##e e( , %$ari!a+#e !r)(!( e!%A.

WANT
The form that a human need takes as shaped by culture & individual personality

A state of felt deprivation.

Demand

B
Human wants that are backed by buying power.

DEMAND

Products Vs Services

Anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need. It includes physical objects, services, persons, places organizations and ideas

Any activity or benefit that one party can offer to another which is essentially intangible and does not result in ownership of anything

C&-+ina!i&n &, Pr&d)%!(, (er0i%e( , in,&r-a!i&n &r e"'erien%e( Pr&d)%!(: N&n-d)ra+#e( - C&(-e!i%(, T&i#e!rie(, Pa%.a ed ,&&d, O!$er( 1)ra+#e( - A)!&-&+i#e(, T*&-*$ee#er(, H&)(e$&#d a''#ian%e( Ser0i%e( : +an.in , !ran('&r!, H&!e#, %&n()#!an%y O!$er( : Per(&n(, P#a%e(, Or ani/a!i&n(, In,&r-a!i&n, Idea(A

Value, Satisfaction and Quality

C&(! &, O+!ainin i!

C)(!&-er ain( ,r&&*nin and )(in a 'r&d)%!

VALUE
The difference between the values the customer gains from owning and using a product and the costs of obtaining the product

Per%ei0ed 'er,&r-an%e

>
B)yer E"'e%!a!i&n(
The e tent to which a products perceived performance matches the buyers e pectations

Satisfaction
Per%ei0ed 'er,&r-an%e

<
B)yer E"'e%!a!i&n(

QUALIT Y
'freedom from defects

Exchange & Transactions

EXCHANGE
The act of obtaining a desired object from someone by offering something in return.

TRANSACTION
A trading between two parties that involves at least two things of value, agreed!upon conditions, a time of agreement and a place of agreement.

A market is the set of actual and potential buyers of a product

Marketing philosophies
Mar.e! '$i#&(&'$y i( a -ar.e!in idea !$a! %&n(ider( 'r&d)%!i&n, (a#e( and %)(!&-er (a!i(,a%!i&n. C&re %&n%e'! i( (!ri0in !& (a!i(,y !$e %)(!&-er( need( and *an!(, *$i#e a! !$e (a-e !i-e a%$ie0in !$e &r ani/a!i&n( &a#(. Under !$e -ar.e!in -ana e-en! '$i#&(&'$y *e ($a## (!)dy !$e ,&##&*in ,i0e %&n%e'!(.

Production concept Product concept Selling concept Marketing concept Societal marketing concept

PRODUCTION CONCEPT

The Production Concept

The idea that consumers will favor products that are available and highly affordable Strategy The organizations should therefore focus on improving production and distribution efficiency

Product concept

The Product Concept

The idea that consumers will favor products that offer the most uality! performance and features Strategy" The organization should focus on continuous improvement of its products

Selling concept

The Selling Concept

The idea that consumers will not buy enough of the firm#s products unless it underta$es a large scale selling and promotion effort Strategy" The organization aggressive selling should focus

The Marketing Concept

Achieving organizational goals depends on $nowing the needs and wants of the target mar$ets and delivering the desired satisfaction better than the competitors do

The Societal Marketing Concept

A principle of enlightened mar$eting that holds that a company should ma$e good mar$eting decisions by considering consumer wants! the company#s re uirements! % onsumer#s long&run interests and society#s long run interests

Mar.e!in En0ir&n-en!
According to Philip Kotler- A %&-'any?( -ar.e!in en0ir&n-en! %&n(i(!( &, !$e ,a%!&r( and ,&r%e( &)!(ide -ar.e!in !$a! a,,e%! -ar.e!in -ana e-en!?( a+i#i!y !& +)i#d and -ain!ain ()%%e((,)# re#a!i&n($i'( *i!$ %)(!&-er(8. Mar.e!in en0ir&n-en! i( %&-'&(ed &, - Mi%r& en0ir&n-en! - Ma%r& en0ir&n-en!

The

ompan!"# Microen$ironment
%actor# in the Microen$ironment

The ompan!"# Microen$ironment

The ompan!

Mar.e!in -ana er( -)(! in0&#0e !$e ,&##&*in r&)'( !& 'r&0ide +e!!er %)(!&-er 0a#)e and (a!i(,a%!i&n. T&' -ana e-en! Finan%e R61 P)r%$a(in O'era!i&n( A%%&)n!in

The

ompan!"# Microen$ironment
Supplier#

S)''#ier( ,&r- an i-'&r!an! #in. in !$e %&-'any?( &0era## %)(!&-er 0a#)e de#i0erin (y(!e-. Pr&0ide !$e re(&)r%e( !& 'r&d)%e &&d( and (er0i%e(.

The

ompan!"# Microen$ironment
Marketing &ntermediarie#

He#' !$e %&-'any !& 'r&-&!e, (e## and di(!ri+)!e i!( 'r&d)%!( !& ,ina# +)yer(

The

ompan!"# Microen$ironment
T!pe# o' Marketing &ntermediarie#

Re(e##er( C Midd#e-enD Mar.e!in (er0i%e( a en%ie(

P$y(i%a# di(!ri+)!i&n ,ir-( Finan%ia# in!er-ediarie (

The

ompan!"# Microen$ironment
ompetitor#

Fir-( -)(! ain (!ra!e i% ad0an!a e +y '&(i!i&nin !$eir &,,erin ( a ain(! %&-'e!i!&r(? &,,erin ( C&-'e!i!i0e ad0an!a e +)i#din a#(& de'end( &n )nder(!andin !$e (!a!)(, (!ren !$(, and *ea.ne((e( &, %&-'e!i!&r( in !$e -ar.e!.

The ompan!"# Microen$ironment

Pu(lic

Any r&)' !$a! $a( an a%!)a# &r '&!en!ia# in!ere(! in &r i-'a%! &n an &r ani/a!i&n?( a+i#i!y !& a%$ie0e i!( &+@e%!i0e(
Finan%ia# ')+#i% : +an.(, (!&%. +r&.er( Media ')+#i% : ne*('a'er(, radi&, TV G&0ern-en! ')+#i%: &0!. de'ar!-en!( Ci!i/en-a%!i&n ')+#i%: %&n()-er &r ., en0ir&n-en!a# r&)'( L&%a# ')+#i%: %&--)ni!y r&)'( Genera# ')+#i%: ')+#i% &'ini&n, ')+#i% i-a e In!erna# ')+#i%: *&r.er(, &,,i%er(, +&ard &, dire%!&r(

The ompan!"# Macro en$ironment

The

ompan!"# Macroen$ironment
)emographic En$ironment

)emograph! i( !$e (!)dy &, $)-an '&')#a!i&n( in !er-( &, (i/e, den(i!y, #&%a!i&n, a e, ender, ra%e, &%%)'a!i&n, and &!$er (!a!i(!i%( 1e-& ra'$i% en0ir&n-en! i( i-'&r!an! +e%a)(e i! in0&#0e( 'e&'#e, and 'e&'#e -a.e )' -ar.e!( 1e-& ra'$i% !rend( in%#)de a e, ,a-i#y (!r)%!)re, e& ra'$i% '&')#a!i&n ($i,!(, ed)%a!i&na# %$ara%!eri(!i%(, and '&')#a!i&n di0er(i!y

The

ompan!"# Macroen$ironment
Economic En$ironment

Economic en$ironment %&n(i(!( &, ,a%!&r( !$a! a,,e%! %&n()-er ')r%$a(in '&*er and ('endin 'a!!ern( Ind)(!ria# e%&n&-ie( are ri%$er -ar.e!( S)+(i(!en%e e%&n&-ie( %&n()-e -&(! &, !$eir &*n a ri%)#!)re and ind)(!ria# &)!')!

The

ompan!"# Macroen$ironment
Economic En$ironment

C$an e( in in%&-e Va#)e -ar.e!in in0&#0e( *ay( !& &,,er ,inan%ia##y %a)!i&)( +)yer( rea!er 0a#)eE!$e ri $! %&-+ina!i&n &, F)a#i!y and (er0i%e a! a ,air 'ri%e

The

ompan!"# Macroen$ironment
Economic En$ironment hange# in on#umer Spending Pattern#

Ern(! En e#EEn e#?( La* A( in%&-e ri(e(:

T$e 'er%en!a e ('en! &n ,&&d de%#ine( T$e 'er%en!a e ('en! &n $&)(in re-ain( %&n(!an! T$e 'er%en!a e ('en! &n (a0in ( in%rea(e(

The

ompan!"# Macroen$ironment
*atural En$ironment

*atural en$ironment in0&#0e( !$e na!)ra# re(&)r%e( !$a! are needed a( in')!( +y -ar.e!er( &r !$&(e !$a! are a,,e%!ed +y -ar.e!in a%!i0i!ie( Trend(
S$&r!a e( &, ra* -a!eria#( In%rea(ed '&##)!i&n In%rea(e &0ern-en! in!er0en!i&n En0ir&n-en!a##y ()(!aina+#e (!ra!e ie(

The

ompan!"# Macroen$ironment
Technological En$ironment

M&(! dra-a!i% ,&r%e in %$an in !$e -ar.e!'#a%e Crea!e( ne* 'r&d)%!( and &''&r!)ni!ie( Sa,e!y &, ne* 'r&d)%! a#*ay( a %&n%ern

The

ompan!"# Macroen$ironment
Political En$ironment

Mar.e!in de%i(i&n( are (!r&n #y a,,e%!ed +y de0e#&'-en!( in !$e '&#i!i%a# en0ir&n-en!. Political en$ironment %&n(i(!( &, #a*(, &0ern-en! a en%ie(, and 're(()re r&)'( !$a! in,#)en%e &r #i-i! 0ari&)( &r ani/a!i&n( and indi0id)a#( in a i0en (&%ie!y

The

ompan!"# Macroen$ironment
Political En$ironment

Le i(#a!i&n re )#a!in +)(ine((

In%rea(ed #e i(#a!i&n C$an in &0ern-en! a en%y en,&r%e-en!

In%rea(ed e-'$a(i( &n e!$i%(

S&%ia##y re('&n(i+#e +e$a0i&r Ca)(e-re#a!ed -ar.e!in

The

ompan!"# Macroen$ironment
ultural En$ironment

ultural en$ironment %&n(i(!( &, in(!i!)!i&n( and &!$er ,&r%e( !$a! a,,e%! a (&%ie!y?( +a(i% 0a#)e(, 'er%e'!i&n(, and +e$a0i&r(

The

ompan!"# Macroen$ironment
ultural En$ironment Per#i#tence o' ultural Value#

ore (elie'# and $alue# are 'er(i(!en! and are 'a((ed &n ,r&- 'aren!( !& %$i#dren and are rein,&r%ed +y (%$&&#(, %$)r%$e(, +)(ine((e(, and &0ern-en! Secondar! (elie'# and $alue# are -&re &'en !& %$an e and in%#)de 'e&'#e?( 0ie*( &, !$e-(e#0e(, &!$er(, &r ani/a!i&n, (&%ie!y, na!)re, and !$e )ni0er(e

The

ompan!"# Macroen$ironment
ultural En$ironment Shi't# in Secondar! ultural Value#

Pe&'#e?( 0ie* &, &r ani/a!i&n( Pe&'#e?( 0ie* &, (&%ie!y

Pa!ri&!( de,end i! Re,&r-er( *an! !& %$an e i! Ma#%&n!en!( *an! !& #ea0e i!

The

ompan!"# Macroen$ironment
ultural En$ironment Shi't# in Secondar! ultural Value#

Pe&'#e?( 0ie* &, na!)re

S&-e ,ee# r)#ed +y i! S&-e ,ee# in $ar-&ny *i!$ i! S&-e (ee. !& -a(!er i!

Pe&'#e?( 0ie* &, !$e )ni0er(e

Rene*ed in!ere(! in ('iri!)a#i!y