Marketing Management

Marketing Management
E-MBA @ MET (e-empowered)

Prof. Rajkamal Pandey (RKP)

Prof. RKP MET Institute of Management- eMBA

Marketing Management

Module 1
1.a : Core Concepts 1.b : Marketing 1.c : Importance of Marketing 1.d : Evolution of Marketing 1.e : Selling v/s Marketing

Prof. RKP

MET Institute of Management- eMBA

Marketing Management

The aim of marketing should be to understand and satisfy the consumer s actual need to optimum - Kishore Biyani

Prof. RKP

MET Institute of Management- eMBA

Marketing Management

Prof. RKP

MET Institute of Management- eMBA

Marketing Management

Product

Consumer

Prof. RKP

MET Institute of Management- eMBA

Marketing Management

Core Concepts
Needs, Wants and Demand*
Needs are the basic human requirements. People need air, food, water, clothing and Shelter to survive. People also have strong needs for recreation, education and entertainment. These needs become Wants when they are directed to specific objects that might satisfy the need. Demands are wants for specific products backed by an ability to pay.

Prof. RKP

MET Institute of Management- eMBA

Marketing Management

Core Concepts
Product and Consumer
Product : Any offering which possess an ability to fulfill the basic need of an individual. Consumer : Any individual who has propensity to consume and willingness to pay.

Product

Market

Consumer

Prof. RKP

MET Institute of Management- eMBA

Marketing Management

Core Concepts
Market
Traditionally, a market was a physical place where buyers and sellers gathered to buy and sell goods. The concept of a market is any structure that allows buyers and sellers to exchange any type of goods, services and information. A market consists of customers, suppliers, and channels of distribution, and mechanisms for establishing prices and effecting transactions. For example, the softdrink market comprises the manufacturers, bottlers, distributors, retailers, restaurants, and consumers

Prof. RKP

MET Institute of Management- eMBA

Marketing Management

Core Concepts
Key Markets
Consumer Markets : Companies selling mass consumer goods and services such as soft drinks, cosmetics, air travel and shoes spend a great deal of time trying to establish a superior image. Much of a company s strength depends on developing a superior product and packaging, distribution and communications and after sales services Business Markets : The practice of companies, including commercial businesses, governments and institutions, facilitating the sale of their products or services to other companies or organizations that in turn resell them, use them as components in products or services they offer, or use them to support their operations. Prof. RKP MET Institute of Management- eMBA

Marketing Management

Core Concepts
Key Markets
Global Markets : Companies selling goods and services in the global marekt place face additional decisions and challenges. They must decide which countries to enter, how to enter, how to price and how to adapt their communications. Marketplaces and Marketspaces

MARKETSPACES

MARKETPLACES

Prof. RKP

MET Institute of Management- eMBA

Marketing Management

Core Concepts
Marketers
A marketer is someone who seeks a response attention, a purchase, a vote from another party, called the prospect. Marketer are indeed skilled at stimulating demand for their company s products. Marketer s are responsible for demand management.
Forecast Distribution

Demand

Supply

Brand
Communication

Sales

Consumers

Prof. RKP

MET Institute of Management- eMBA

Marketing Management

Core Concepts
What is Marketed ?
Goods, Services, Events, Experience Persons, Places, Properties

Organizations, Information, Idea

Prof. RKP

MET Institute of Management- eMBA

Marketing Management

Marketing
Managers sometime think of marketing as the art of selling products However, Selling is not the most important part of marketing ! Selling is only the tip of the marketing iceberg AMA defines : Marketing is an organizational function and a set of process for

creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and it s stakeholders Marketing is all about identifying and meeting human and social* needs profitably Social Needs : delivering a higher standard of living Breakthrough Marketing : TATA ACE MET Institute of Management- eMBA

Prof. RKP

Marketing Management

Prof. RKP

MET Institute of Management- eMBA

Marketing Management

Marketing
Marketing Management : The art and science of choosing target market* and getting, keeping and growing customers through creating, delivering and communicating superior customer value

Prof. RKP

MET Institute of Management- eMBA

Marketing Management

Importance of Marketing
Financial success often depends on marketing ability. Finance, operations, accounting and other business functions will not really matter if there isn t sufficient demand for products and services so the company can make profit Many companies have created a Chief Marketing Officer ( CMO ), to put marketing on a more equal footing with other C-level executives, such as CEO and CFO Marketing also helps in building brands, a loyal customer base , intangible assets that make up a large percentage of the value of a firm

Prof. RKP

MET Institute of Management- eMBA

Marketing Management

Importance of Marketing
Manufacturer / Producer :

The Marketing helps to build loyalty for the product among the customers. Brand loyal customers are a source of repeat sales.

A Marketing enables a company to build a reputation for its products and creates an image in the public mind.

It facilitates the introduction to new products in the market. Marketing is necessary for boosting sales and creating a demand for the product among the customers in a selective manner.

A Marketing distinguishes and differentiates a product from the goods of competing companies. Marketing assists in the maintenance of a proper control over the price, quality and other features of the product.

Prof. RKP

MET Institute of Management- eMBA

Marketing Management

Importance of Marketing
Consumer / Customer :

Marketing distinguish and differentiate the goods of different manufacturers and this fact enables the consumers to choose their products effectively

The marketed goods assure a certain quality and standard, which is an consistently maintained by the producer.

Certain marketed goods acquire a great popularity. The customer buying these goods derives the immense satisfaction of prestige and status.

For the customer, shopping becomes easy and pleasurable, especially if he has developed brand-loyalty

Prof. RKP

MET Institute of Management- eMBA

Marketing Management

Importance of Marketing
Maruti Small Size, affordable four wheeler Philips World wide leader in Durables McDonalds Market Leader in Fast food organized chain of outlets Nirma Leading Washing powder Nike Best Shoe wear Apple iPod : Music Player

Prof. RKP

MET Institute of Management- eMBA

Marketing Management

Evolution of Marketing
This topic basically describes what has been Company s ( Marketer s ) orientation towards Marketplace So, lets review the evolution of earlier marketing ideas

Prof. RKP

MET Institute of Management- eMBA

Marketing Management

Evolution of Marketing
Production Concept Godrej Lenovo Haier Product Concept Mitsubishi Onida Selling Concept Coca-cola Insurance Automobiles Marketing Concept Nokia Sony Nike McDonalds

BAJAJ Prof. RKP MET Institute of Management- eMBA

Marketing Management

Evolution of Marketing
Production Concept
It holds that consumer will prefer products that are widely available and inexpensive. They concentrate on achieving high production efficiency, low costs and mass distribution.

Product Concept
It holds that consumer favor products that offer the most quality, performance, or innovative features. They concentrate on making superior products and improving them over time

Prof. RKP

MET Institute of Management- eMBA

Marketing Management

Evolution of Marketing
Selling Concept
It holds that consumers, if left alone, won t buy enough of the organization s products. The organization must, therefore, undertake an aggressive selling and promotional effort.

Marketing Concept
Instead of a product centric, Make and sell philosophy, business shifted to a customer centric, Sense and respond philosophy The job is not to find right customers for your prodcut,but to find the right prodcut for your customer

Prof. RKP

MET Institute of Management- eMBA

Marketing Management

Selling v/s Marketing Concept

Selling
Emphasis is on the product Company first makes the product and then figures out how to sell it. Management is sales-volume-oriented. Planning is short-run-oriented, in terms of today s products and markets. Stresses needs of seller. Aims at selling more volumes.

Marketing
Emphasis is on customers wants. Company first determines customers wants and then figures out how to make and deliver a product to satisfy those wants. Management is profit-oriented. Planning is long-run-oriented, in terms of new products, tomorrow s markets, and future growth. Stresses wants of buyers. Builds profitable relationships.

Prof. RKP

MET Institute of Management- eMBA

Marketing Management

How Should a Business be Defined?

Company Product-Oriented Answer Market-Oriented Answer Kodak We make cameras and films We help preserve beautiful memories ?

Lakme

We make cosmetics

Voltas AC

We make ACs

Xerox

We make photocopying machines

Prof. RKP

MET Institute of Management- eMBA

Marketing Management

Orientation Towards Market Place

Production-orientation
Focus:

Sell what it s easy to produce Emphasizes only on Product Push products to beat competition Long-run customer satisfaction

Product-orientation

Focus:

Sales Orientation Marketing Orientation

Focus :

Focus :

Prof. RKP

MET Institute of Management- eMBA

Marketing Management

Project
Details : Total Marks : 20 M Allocation : Content : 12 M ( 6 M each for Hardcopy & PPT) Commn / Cordn : 7 M Attire : 1 M Time Limit : 20 mins per Group Team needs to divide themselves into 2 subgroup : Presentation Group / Q&A Group, consisting of equal number of students Logical & Valid Questions from students will be appreciated Marks : Weighted Average of individual scores

Prof. RKP

MET Institute of Management- eMBA

Marketing Management

Project
 Parle G  Mahindra & Mahindra  Cadbury s  Bisleri  Pepsi  Britannia  Asian Paints  Godrej  Bajaj  Big Bazzar  ICICI Bank  ITC e Choupal  GTL  Suzlon  Project Shakti  Marico  LG  Coke Amul Videocon  Percept Pictures  Paramount Airways  Ebay  Eureka Forbes  Ceat Tyres  Birla Power  Dabur

Prof. RKP

MET Institute of Management- eMBA

Marketing Management

Module 2
2.a :Types of Marketing 2.b : Levels of Marketing 2.c : Marketing Mix 2.d : Product Life Cycle 2.e : STP

Prof. RKP

MET Institute of Management- eMBA

Marketing Management

Types of Marketing
Relationship Marketing

Internal Marketing

Holistic Marketing

Integrated Marketing

Performance Marketing

Prof. RKP

MET Institute of Management- eMBA

Marketing Management

Relationship Marketing
A key goal of marketing is to develop deep, enduring relationships with people and organizations that could directly or indirectly affect the success of the firm s marketing activities Relationship Marketing aims to build mutually satisfying long term relationships with key constituents in order to earn and retain their business
Customers

Shareholders

Relationship Marketing

Employees

Channels

Prof. RKP

MET Institute of Management- eMBA

Marketing Management

Relationship Marketing
Marketers must respect the need to create prosperity among all these constituents and develop policies and strategies to balance the returns to all key stakeholders To develop strong relationships with these constituents requires an understanding of their capabilities and resources, as well as their needs, goals and desires The ultimate outcome of Relationship marketing is a unique company asset called a Marketing Network. A Marketing network consists of the company and it s supporting stakeholders with whom it has built mutually profitable business relationships The operating principle is simple : build an effective network of relationships with key stakeholders, and profit will follow.

Prof. RKP

MET Institute of Management- eMBA

Marketing Management

Integrated Marketing
The Marketer s task is to devise marketing activities and assemble fully integrated marketing programs to create, communicate and deliver value to consumers Two theme of integrated marketing are (i) many different marketing activities communicate and deliver value (ii) when coordinated, marketing activities maximize their joint effects In other words, marketers should design and implement any one marketing activity with all other activities in mind.
Integrated
Sales Force Size Distribution Promotion

Integrated
Price

Integrated

Integrated

Prof. RKP

MET Institute of Management- eMBA

Marketing Management

Performance Marketing
Top management is going beyond sales revenue to examine the marketing scorecard and interpret what is happening to market share, customer base, customer satisfaction, product quality and other measures. Performance Marketing is about understanding the returns to the business form various marketing activities

Prof. RKP

MET Institute of Management- eMBA

Marketing Management

Internal Marketing
Internal marketing is the task of hiring, training and motivating able employees who want to serve customer well. It ensures that everyone in the organization embraces appropriate marketing principles, especially senior management. Internal marketing must take place on two levels :

Marketing Functions
Sales Force, Advertising, Customer service, Product Management, Marketing Research

Other Departments
Senior Management, Finance, Operations, Systems, HR

Prof. RKP

MET Institute of Management- eMBA

Marketing Management

Holistic Marketing
Relationship Marketing

Internal Marketing

Holistic Marketing

Integrated Marketing

Performance Marketing

Prof. RKP

MET Institute of Management- eMBA

Marketing Management

Holistic Marketing
The Holistic marketing is based on the development, design and implementation of marketing programs, processes and activities that recognizes their breadth and interdependencies. Holistic marketing is thus an approach that attempts to recognize and reconcile the scope and complexities of marketing activities Ex : Nike : Breakthrough Marketing

Prof. RKP

MET Institute of Management- eMBA

Marketing Management

Levels of Marketing
Partnership

Proactive

Accountable

Value
Reactive Basic

Involvement

Prof. RKP

MET Institute of Management- eMBA

Marketing Management

Levels of Marketing
 Basic Marketing : Simply sells the product  Reactive Marketing : Sells the product, encourages customer to call if he /she has questions.  Accountable Marketing : Calls the customer after sale to ensure satisfaction and seek comments  Proactive Marketing : Contacts customer from time to time about improved product use or new products  Partnership Marketing : Works with customer continuously to help improve their performance

Prof. RKP

MET Institute of Management- eMBA

Marketing Management

Levels of Marketing
 Basic marketing - Wholesalers , local grocers

 Reactive marketing - Retailers, departmental stores

 Accountable marketing Private Hospitals, Therapy centres

 Proactive marketing Gymnasiums and Health clubs, Banks

 Partnership marketing Advertising agencies, Consulting firms

Prof. RKP

MET Institute of Management- eMBA

Marketing Management

Levels of Marketing

Prof. RKP

MET Institute of Management- eMBA

Marketing Management

Activities of Marketing
Marketing activities broadly covers the core action points of Marketing as a stream Marketing activities come in all forms. McCarthy classified these activities as marketing-mix tools of four broad kinds, which he called the four P s of marketing : Product, Price, Place and Promotion. Marketers make marketing-mix decisions for influencing their trade channels as well as their final consumers. Once they understand these groups, marketers make or customize an offering or solution, inform consumers, set a price that offers real value and choose places where the offering will be accessible.

Prof. RKP

MET Institute of Management- eMBA

Marketing Management

Marketing Mix
Product

Pro otion

Marketing Mix

Price

Place

Prof. RKP

MET Institute of Management- eMBA

Marketing Management

Marketing Mix
Product Product Variation Product Differentiation Product Innovation Marketing Target Mix Market Price

Cost Recovery Penetration Pricing Skimming Pricing Promotion Mass Communication Brand Management Corporate Identity MET Institute of Management- eMBA

Place Distribution channel Direct Sales Supply Chain / Logistics Prof. RKP

Marketing Management

Marketing Mix

Prof. RKP

MET Institute of Management- eMBA