MARKETING

MANAGEMENT
Module 1

Yadhu Krishnan
WHAT IS MARKETING?
Marketing - Marketing starts with customers and ends with
customers
Meaning :

Marketing is as a set of activities and processes designed to

• Create

• Communicate

• and Deliver value to customers.

The primary goal of marketing is to satisfy the needs and wants of target audiences while achieving the
objectives of the organization. Marketing involves understanding the market, identifying customer segments,
and crafting messages that resonate with the intended audience.

Definition :

 “Father of modern marketing," Philip Kotler defines marketing as "the science and art of exploring,

creating, and delivering value to satisfy the needs of a target market at a profit.

 The American Marketing Association defines marketing as "the activity, set of institutions, and

processes for creating, communicating, delivering, and exchanging offerings that have value for customers,

clients, partners, and society at large."

Marketing Process – 5 Step Process
MARKETING MYOPIA
RESEARCH IN MOTION
Marketing Myopia – Short Sightedness

• Marketing myopia – Founded by Theodore Levitt – 1960s

• Marketing Myopia = short sightedness,

• as the marketer wants to sell the product and services, without much
focusing on the customer demands/needs.
• Causes :
• Company thinks its growth is guaranteed by

expanding population
Avoiding Myopia :
• Believe there is no competitive substitutes
• Solution centric focus
• Mass Production- Not concentrating on the needs of

the customer • Customer centric

• Focusing on product rather than the customer

• Awareness about the substitutes in the market
(Lacking innovation)
• Innovation
• Not considering the changing consumer lifestyle in

digital age Why Pepsi not suffering from

Myopia?

DIVERSIFICATION
Activity - Product Analysis & Future
Insights
• Product Selection – Each student (or team) will choose a product from any
industry.
• Market Analysis – Research and present the current market growth, demand
trends, and key features
• Future Outlook – Predict how consumer needs, technology, and competition
might change in the future.
• Presentation & Discussion
Types of Marketing
 Traditional Marketing : Billboards, Television Ads, Radio etc. The
main aim of traditional market is to build brand awareness rather
than to increase sales.
Major problems : Impossible to track ROI & Spending too much
amount in wrong audience.

 Modern Marketing : Focus on what customer needs and deliver the

products to them. Examples – Digital marketing, Influencer
marketing, Social media marketing etc.
Major Advantage : Easy to track ROI & Identify the exact
customers.
Types of Modern Marketing - Digital
Marketing
Inbound & Outbound Marketing
Guerrilla Marketing
Brand Marketing
Influencer Marketing
Referral Marketing & Behavioural
Marketing

Amazon, Netflix and Spotify.

Important terms related to marketing
• Market : Market is a physical or virtual space where buyers and sellers come together to
engage in the exchange of goods and services.

• Product : A product is a tangible item or an intangible service that is offered for sale in the
market to satisfy a need or want.

• Buyers : Buyers are people or organizations that purchase things, like products or services, by
paying money or offering something in return. Also known as customers they may or may not
consume them.

• Consumers : A consumer is an individual or entity that uses, purchases, or consumes goods

and services. In the context of economics and marketing, a consumer is the end-user of a
product or service.

•
Important terms related to marketing
• Cost : Cost means the amount of money, time, or effort you need to spend to make or get
something. TC = FC+(VC*Q)

• Value : value in marketing means giving customers more benefits and satisfaction than what
they pay for. It's not just about the price but also about the quality, convenience, and
enjoyment they get from a product or service. Satisfaction/Price = Value

• Need : Need refers to a basic requirement or essential condition that is necessary for an
individual's well-being and survival.

• Want : A "want" is a desire or a wish for something that is not necessary for basic survival but
is often driven by personal preferences, tastes, or aspirations.
MARKETING VS SELLING
Point of differences Selling Marketing
Meaning Transaction between two or Marketing is the activity to
more parties in which buyer create visibility, credibility and
receives the product and seller generate leads with customer
gets something of value satisfaction
(money) in return.
Nature of work The seller just focus on Marketing focus on customer
selling the product needs and wants
Function
Product Driven Strategy Customer Driven Strategy

Focus Company focus to produce The brand recognition and

more and more products brand image is mainly
focused
Interest Selling maintains the Marketing emphasis on
consumers interest creating the interest of the
customer.
Strategy Push Strategy Pull strategy
MARKETING VS SELLING

Scope Selling has a narrow scope as Marketing has a wider scope

selling is a part of marketing and includes many activities
like marketing research,
product planning &
development, pricing,
promotion, distribution,
selling etc
Motive “Sales” is the primary “Customer satisfaction” is the
motive. primary motive.
 Increase Brand Awareness  Increase Company’s Profits

 Attracts Potential Customers

 Drive You Traffic

 Builds Relationships with Customers

Marketing Mix - 4Ps & 7Ps of Marketing
Marketing Mix is a set of marketing tool or tactics, used to promote a product or services in the
market and sell it. It is about positioning a product and deciding it to sell in the right place, at the
right price and right time.
 People : People are the employees,
customers, and other stakeholders who
interact with a business. It is important to
create a positive and memorable experience for
these people.

 Process : Procedures and steps involved in

delivering a product or service to the end-
user. It is important to streamline the process
and make it as efficient as possible.

 Physical Evidence : The tangible aspects

of a product, including packaging,
branding etc.
4 C's
In 1990, Bob Lauterborn introduced the 4 C’s to replace the 4 P’s, focused on
customer relationships over product-centric marketing. He believed businesses
should focus on customer needs rather than just selling products.
Functions of marketing
 Marketing information management : Gathering, storing and analyzing customer and
marketing information. In short collecting, organizing, and managing marketing-related data to
enhance decision-making and improve overall marketing effectiveness.

 Financing : Under valued function in marketing. Managing and allocating financial resources to
support marketing activities and strategies. It involves budgeting, funding campaigns, and
ensuring financial efficiency to achieve marketing objectives.

 Product/Service Management : How can we improve the product in the future to meet
customer needs? Understanding the market, talking with prospect customers, competitor
analysis, customer support.

 Pricing : What do we charge? Based on the pricing strategy used the product will flourish. Cost
plus pricing, Penetration pricing, Skimming pricing, Value based pricing
Functions of marketing
 Promotion : How do we inform the customer about our product? Increasing the brand awareness, company
profile through various marketing techniques.

 Selling : How is the product sold to the customers? Online, offline, door to door? Persuading potential
customers to buy a product or service through direct communication and personalized interactions,
contributing to the overall revenue generation and business growth

 Distribution : How does the customer get the good? The way firms make their products available to the
customers. Ex : Shipping, In store, online etc.
Company orientation towards market
place
It means overall approach, strategy, and mindset that a company adopts in relation to the market in
which it operates.

PRODUCTION PRODUCT SELLING

CONCEPT CONCEPT CONCEPT

MARKETING SOCIETAL
CONCEPT CONCEPT
1. PRODUCTION CONCEPT

Principle : Consumers will prefer products that are

widely available and inexpensive.

These business concentrate on high production, low costs and mass

distribution

Example : China Production, Ford Company, Coco Cola

2. PRODUCT CONCEPT

Principle: Consumers will favor products that offer the

most quality, performance or innovative features

These organizations focus on making superior products and

improving over time

Example: Apple, Mercedez-Benz

3. SELLING CONCEPT

Principle: The consumer, if left alone will not purchase, so

the organization has to aggressively sell it to the consumer

Such firms want to sell what they make rather than make what the
market wants - risky business!

• High sales effort

• more promotion,

• product centric approach

Insurance companies do it!!!

4. MARKETING CONCEPT

Principle: Understanding and meeting the needs and wants of

customers.

It is built on the idea that a company's success is ultimately tied to

its ability to satisfy its customers.

• Long term relationship Building

• Customer value creation

• Customer centric approach

5. SOCIETAL CONCEPT

Principle : Marketing philosophy that extends beyond the focus

on customer needs and satisfaction to consider the broader
societal well-being.

This concept emphasizes not only meeting customer wants but also making
decisions that are in the best interests of society as a whole.

• Consumer Satisfaction Aligned with Societal Welfare

• Corporate Social Responsibility

PRESENTATION
Topic : New Marketing Realities – 4
Students/Team
MARKETING MANAGEMENT TASKS
Marketing management involves planning, organizing, directing, and controlling an organization's
marketing activities.

Marketing Management Tasks :

• Develop market strategies and plans - Strategize

• Capture market insights - Analyse

• Connect with customers - Engage

• Build strong brands – Strengthening

• Shape market offerings – Optimise/Refine

• Deliver Value - Provide

• Communicate Value - Convey

• Create long term growth - Sustain

Marketing & Customer Value
 The task of any business is to deliver customer value at a profit.

“Creating, communicating, and delivering value" reflects a customer-centric approach that

emphasizes meeting customer needs and providing them with value.

Breaking down the concept:

 Creating Value : Product or Service Development & Innovation

 Communicating Value : Promotion and Advertising, Content Marketing

 Delivering Value : Distribution and Logistics, Customer Service

& Quality Assurance

Value Delivery Process
1. Traditional physical process sequence

1. “Makes
something and sells it”.

2.

2. Value Creation and Delivery sequence

“Begins before there is a

product and continues
while it is being
developed and after it becomes available.”
VALUE CHAIN
 Introduced by ‘Michael Porter’.

 Meaning : A business model that describes the full range of activities needed
to create a product or service. Value chain is a concept that describes the sequence
of activities a company undertakes to design, produce, market, deliver, and support its
product or service.

It can be divided into categories :

 Primary Activities

 Supporting Activities
THE VALUE CHAIN
PRIMARY ACTIVITIES : Activities that are involved in the creation, transfer and sale of
products.

1. Inbound Logistics – bringing materials into the business. Eg : Handling of raw

materials, inventory control, warehousing.
2. Operations – converting them into final products. Eg : Production, assembly &
packaging.
3. Outbound logistics – Shipping out final products. Eg : Processing of orders,
warehousing of finished goods and delivery.
4. Marketing & Sales – Identifying customer needs and generating sales. Eg :
Advertisement, Promotion, Distribution.
5. Service – How to maintain the value of the product after it is purchased. Eg :
Installation, Repair, Training & Maintenance.
SUPPORTING ACTIVITIES : Activities that merely support the primary
activities.

1. Procurement – purchasing inputs such as materials, supplies and

equipment
2. Technology Development – Activities or technologies intended to
improve the product and the process.
3. Human Resource Management – Involved in recruiting, training,
development & compensation.
4. Infrastructure of the firm – Organizational structure, control systems,
company culture etc.
The firms margin or profit then depends on its effectiveness in performing these
activities efficiently, so that ‘the amount that the customer is willing to pay for
the products exceeds the cost of the activities in the value chain’.
Uses of value chain

• The sources of the competitive advantage of a firm can be seen from its discrete
activities and how they interact with one another.

• The value chain is a tool for systematically examining the activities of a firm and
how they interact with one another and affect each other’s cost and performance.

• A firm gains a competitive advantage by performing these activities better or at

lower cost than competitors.

• Helps you to stay out of the “no profit zone”

• Presents opportunities for integration

Starbucks – Value Chain
MARKETING ENVIRONMENT
Environment literally means the surroundings , external objects, influences or circumstances
under which someone or something exists.

 The environment of an organization is the aggregate of all conditions, events and influences that surrounds and affects it.

Meaning : Marketing environment is the combination of external and internal factors and forces
that affect a company's marketing activities.

Definition : According to Philip Kotler “Marketing environment refers to the external factors or
forces that affect the company’s ability to develop and maintain successful relationship with its
target customers”.
Types of Marketing Environment
Internal Environment
‘Factors that are internal to the organization are known as the 'internal
environment'. It is also known as controllable factors’

1. Manpower : refers to the human resources or

manpower – Right people at the right job.
2. Materials : Physical resources needed for the
organization - tangible items.
3. Machinery : Equipment, tools, or technology – CRM,
Marketing platforms, analytical tools.
4. Money : Financial resources required for a company –
marketing activities, market research, salaries.
5. Methods : Normal and prescribed ways of doing
things various operations
6. Company Culture: values, beliefs, and practices within the organization impact
marketing strategies.

7.Organizational Structure: The structure and hierarchy of the organization can

influence communication channels, decision-making processes.

8. Minutes : Time frame

External Environment – Uncontrollable
factors

1. MICRO ENVIRONMENT

Micro environment includes external factors that are in close proximity to the company and
directly impact its operations and performance. They closely connected to the company and
are, to some extent, controllable or influenceable by the organization.
MICRO ENVIRONMENT
1. Customers : “Customer Satisfaction is the basis for any Business’
success”. Individual consumers and businesses that purchase the company's
products or services. Customer’s help to attract and retain the majority of customers
to generate sales.

2. Competitors : Companies must have a strategic analysis of competitors and have a

competitive advantage. The company’s should also provide value-added services
or shall have a USP which helps them to have a upper hand than its competitors.

3. Suppliers : Entities that provide inputs such as raw materials, components, or

services also they can affect the business strategy. Ex - If the suppliers are not fair and
timely, it can impact the time of production and sales.
4. Marketing Intermediaries : “Middlemen”. They can be wholesalers,
retailers, and agents etc who help the company in distributing its products to the
end consumers.

5. Public : Groups that have an interest in or impact on the company, including

the media, government bodies, and local communities. If the Public shows a
positive response, this would improve the organization's business and
vice versa.
MACRO ENVIRONMENT
Macro Environment refers to the broader external factors that affect the company but
are beyond its direct control.

These are external factors or conditions that exist outside of a company's immediate control but can significantly
impact its operations and performance.
PESTLE ANALYSIS
PESTLE analysis is a strategic tool used to assess the external macro-environmental factors that can
influence an organization.

There are certain questions that a company shall keep in mind while conducting this analysis.

1. What is the political situation of the country and how can it affect the industry?

2. What are the prevalent economic factors?

3. How much importance does culture has in the market.

4. What technological innovations are likely to pop up and affect the market structure?

5. Are there current industry regulations, and is there potential for legislative changes affecting
the industry?

6. What are the environmental concerns for the industry?

1. POLITICAL FACTORS – Government Influence

These factors determine the extent to which a government may influence the economy
or a certain industry.
 Political factors include elections, tax policies , Fiscal policy, trade tariffs etc.
That a government may levy around the fiscal year and it may affect the business
environment to a great extent.

For example, A new government tax or duty affects the overall revenue
generation of a firm.
2. ECONOMIC FACTORS
Economic factors affect consumer purchasing power and spending patterns.
 The economic environment can have a major impact on businesses by influencing
patterns of demand and supply.

Following are some of the important economic factors :

• Consumer Spending * Interest Rates
• Inflation Rates * Employment Levels
• Exchange Rates * Government Debt Levels
3. SOCIAL FACTORS
Social factors refer to the “influences of societal aspects” on a business or industry.
Key components :

• Demographics - Age, gender, income, education, and family structure which affects

consumer behavior

• Cultural Trends - Values, beliefs, and norms

• Lifestyle Changes - Shifts in how people live, work, and spend their leisure time

• Consumer Attitudes and Behaviour - mindset and behaviors of consumers,

including their preferences, purchasing patterns

• Education Levels, Social Media Influence, Health Consciousness etc.

4. TECHNOLOGICAL FACTORS
“Technological advancements and innovation on the business environment”
Key components :

• Research and Development (R&D): Adoption of new technologies to enhance

products/services

• Automation : “Technologies instead of human interventions”

• Digitalization: shift towards digital technologies – e commerce, digital marketing etc.

• Emerging Technologies: Augmented reality (AR), virtual reality (VR), and the

Internet of Things.

• Cyber security, E-Government Initiatives.

4. TECHNOLOGICAL FACTORS
“Technological advancements and innovation on the business environment”
Key components :

• Research and Development (R&D): Adoption of new technologies to enhance

products/services

• Automation : “Technologies instead of human interventions”

• Digitalization: shift towards digital technologies – e commerce, digital marketing etc

• Emerging Technologies: Augmented reality (AR), virtual reality (VR), and the

Internet of Things.

• Cyber security, E-Government Initiatives.

4. LEGAL FACTORS
“Impact of laws and regulations on the business environment”
 Legal factors encompass the regulatory framework that governs businesses,
influencing their establishment, operations, and interactions.
Key components :

• Business Laws and Regulations : That govern their establishment, structure, and

operations.

• Employment Laws: Minimum wage, working hours, overtime pay, employee rights &

safety.

• Consumer Protection Laws: Protect consumers from unfair business practices.

• Environmental Laws: Waste disposal, emissions control, pollution control etc.

5. ENVIRONMENTAL FACTORS
“Ways in which businesses are affected by the natural environment and ecological
factors“
Key Components :
• Climate Change
• Weather Conditions
• Natural Disasters
• Resource Availability
• Environmental awareness
• Renewable energy
INTRODUCTION TO MARKET RESEARCH
Customer
Preferences
Location Analysis
Competitor Study
Pricing Strategy
Marketing
Approach
INTRODUCTION TO MARKET RESEARCH
Marketing research is the process of :
 Designing

 Gathering

 Analyzing

 Reporting information that maybe used to solve a specific marketing

problem.

Why Marketing Research?

•People will not buy products or services they do not want.

•Learning what customers want and how to present it drives the need for marketing research.

•Small business has an edge over larger businesses in this regard.

Need for marketing research

• To undertake marketing effectively

• Changes in technology

• Changes in consumer tastes

• Market demand

• Changes in the product ranges of competitors

• Changes in economic conditions

Marketing Research Process
MARKETING RESEARCH PROCESS
 Problem Definition : Specific issue or challenge that the research aims to
address. Ex : decline in market share , current market trend etc.

 Research Design : Refers to the blue print that guides the systematic collection,
analysis, and interpretation of data in a research study. Ex: Type of Research, Data
Collection Methods, Pilot Testing.

 Research preparation and materials : Necessary tools and resources, which

includes literature review, budget planning etc.

 Data Collection : process of gathering information. Primary or secondary Data.

 Data Processing : Converting the collected information into understandable

format.

 Reporting : Final stage, where the findings and insights derived from the data
analysis are communicated.
Marketing Information System - MIS

A marketing information system is a management information system(MIS)

designed to support marketing decision making. “Marketing information system
very aptly called as life blood of marketing”

 Marketing Information System (MIS) is designed to gather, analyze, store,

and disseminate information relevant to marketing decision-making.

 It supports in obtaining timely and accurate insights for strategic planning and effective implementation of
marketing strategies.

 Definition : MIS set of procedures and methods for the regular, planned collection, analysis
and presentation of information for use in marketing decisions’ - American Marketing
Association
M.I.S Functions
 The primary function of MIS is to report on business operations to support decision-making.

 Data Collection: Gathering information about customers, competitors, market trends, and other factors
that impact the marketing strategy.

 Data Processing: Organizing and processing the collected data to convert it into meaningful information.

 Market Research: Conducting market research to gather information about customer preferences,
behavior, and needs.

 Performance Tracking : keeping track of the performance of the employees or customers. This information
helps detect issues early and make the right decisions quickly using the latest information.

 Marketing Planning: Assisting in the development of marketing plans and strategies based on the
analyzed information.
Importance of marketing information system

Informed Decision-Making : Up-to-date information about the market, customers, competitors etc. which
helps the organizations to take decisions easily.

Adaptation to Market Changes: Markets are dynamic, and consumer behavior can change rapidly, an
effective MIS allows organizations to monitor these changes in real-time and adapt their strategies accordingly.

Strategic Planning: Helps organizations set realistic goals, identify opportunities, and align marketing
strategies

Competitive Advantage: By monitoring and analyzing competitor activities, MIS allows businesses to identify
opportunities and threats in the market.

Market Understanding: MIS helps in understanding target market by providing insights into customer
preferences, behavior, and trends.
Market Strategic Planning
Market strategic planning is a systematic process through which organizations define
their

 objectives

 analyze internal and external factors

 and develop strategies

to achieve a competitive advantage and long-term success within a specific market.

The main aim include identifying the company's current situation, analysing its
opportunities and threats, and mapping out marketing action plans for
implementation.
Importance of Strategic Planning in
Marketing

 Understand the company's current situation : Financial Performance,

Operational Efficiency, Human Resources, Product (Internal analysis). Market
Trends, Competitor Analysis, Social and Cultural Factors etc. (External Analysis).

 Accomplish marketing goals : By developing a plan, marketers can ensure

marketing activities are carried out within the set timeframe and meet the overall
objectives.

 Specify actions to be taken : A company can set a goal to increase its sales by
10% within two years, but without an action plan this is unlikely to happen.
Key components or Process
 Define the Mission and Vision:

Mission - The purpose and reason for the organization's existence. Vision - Outline
the desired future state and long-term goals.

 Conduct a Situation Analysis: SWOT ANALYSIS – Internal analysis(Strength &

Weakness) – External analysis(Opportunities & Threat)

 Set Objectives : (SMART) specific, measurable, achievable, realistic, and time-

bound.

 Identify Target Markets: STP – Segmentation, Target, Positioning.

 Develop Marketing Mix Strategies – 4 P’s

 Allocate Resources: Budget, personnel, and technology

 Action plan & Implementation – Breaking down the plans and

putting plan into action

 Evaluation & Adjustment : Identifying the mismatch and

improvising according to the marketing plan & objectives
Elements of Marketing Plan

Marketing plan is a comprehensive document that outlines an organization's

marketing strategy, tactics, and activities to achieve specific business
objectives.

Elements of Marketing Plan :

Executive summary - Overview of the entire marketing plan, summarizing key objectives,
strategies, and anticipated outcomes.

Business Overview: Includes its mission, vision, values, and a brief history

 SWOT analysis

Competitor analysis
 Pricing strategy : Competitive pricing, skimming, Penetration Pricing

 Marketing Channels : Social media, Content marketing,

Communities , Media coverage

 Growth strategy : Growth strategy refers to your long term plans

and goals.

 Budgeting : More returns, sales, or benefits than what you’re

spending
What all are the things that can be marketed?