MODULE 1 Marketing management subject ppt

marketing management ppt

1. MODULE 1 MARKETING MANAGEMENT BY PRASANNA H N ASST PROFESSOR MBA, SVCE

2. MEANING AND DEFINITION   Marketing is a form of communication between a business house and its customers with the goal of selling its products or services to them. Goods are not complete products until they are in the hands of customers. Marketing is that management process through which goods and services move from concept to the customer. Marketing has less to do with getting customers to pay for a product as it does with developing a demand for that product and fulfilling the customer’s needs.

3. MEANING AND DEFINITION   According to the American Marketing Association (AMA) Board of Directors , Marketing is 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.

4. MEANING AND DEFINITION   Dr . 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. Marketing identifies unfulfilled needs and desires. It defines, measures and quantifies the size of the identified market and the profit potential. It pinpoints which segments the company is capable of serving best and it designs and promotes the appropriate products and services.” Thus, marketing refers to all the activities involved in the creation of place, time, possession and awareness utilities and beyond.

5. MARKETING CONCEPTS- TRADITIONAL AND MODERN Concept is a philosophy, attitude, a line of thinking, an idea or notion to relating any aspects of divine and human creations. The philosophy of an organization in the dynamic creation of marketing is referred to as a marketing concept. Thus, marketing concept is a way of life in which the resources of an organization are mobilized to create, stimulate and satisfy the consumer at a profit

6. TRADITIONAL/ CLASSICAL CONCEPT According to this concept, marketing consists of those activities which are concerned with the transfer of ownership of goods from producers to consumers. Here, the role of physical distribution and marketing channels is over emphasized. It refers to marketing as the process by which goods are made available to ultimate consumers from their place of origin. The emphasis of marketing is on sale of goods and services. Consumer satisfaction is overlooked.  

7. MODERN CONCEPT According to this concept, marketing is concerned with the creation of consumers. According to the modern thinker Peter Drucker , Marketing is so basic that it cannot be considered as a separate function. It is the whole business seen from the customers’ point of view…business success is not determined by the producer but the customer. Thus, the modern concept lays greater emphasis on customers and considers them as kings. Marketing is not merely a physical process but is something beyond that. It is the managerial philosophy which centres around the wants and desires of customers.

8. TRADITIONAL CONCEPT vs. MODERN CONCEPT Traditional marketing starts from production and ends with sale but modern marketing includes planning, product, price, promotion, place, people, after sale service etc. Traditional marketing concentrate on favorable products, but modern marketing concentrates on customer needs, wants and satisfaction. In traditional marketing, only those products are sold which the producer produces. No focus is laid on consumer preference. On the other hand, modern marketing indulge in production only after analyzing consumer demands. Traditional marketing is product and production oriented while modern marketing is consumer oriented. The target of traditional marketers was to earn maximum profit by maximizing sales. But, the main motive of modern marketers is to earn profits through satisfaction of consumer needs. The principle of traditional market was “caveat emptor” i.e., “let the buyer beware”. Whereas, the principle followed by modern market is “caveat venditor ” i.e., “let the vendor beware”.

9. SELLING vs. MARKETING It is a common error committed when people say they are going for marketing when they actually go to the market to purchase goods/ services. Well, it is simply buying from consumers’ end and selling from the sellers’ end. Marketing is a wider term than selling. Let us now see how selling differs from marketing .

10. MARKETING SELLING It begins before sale and continues after sale. It focuses on consumer needs. It has long term perspective aiming for growth and stability. It is a philosophy of business. Here, customer comes first, then product. It has wider scope. It begins after production and ends with the sale. It focuses on seller’s needs. It has short-term perspective. It is a routine day to day physical process. Here, product comes first, then customers. Its scope is narrower as compared to marketing.

11. Difference between Market and Marketing Market Marketing                                                                 Definition A place where buyers and sellers meet to exchange goods and services Marketing is a method that determines human nature, their demand and a need to satisfy them                                                         Type of Process It is a process where the demand and supply fix the price of a commodity It is a process of researching, analyzing, creating and delivering the best to the customer.                                                           Scope of the concept Market is a confined concept Marketing is a comparatively bigger concept that includes a wide range of activities                                                               Variation The market varies by product, place, demand Marketing remains same irrespective of product                                                          Target audience Anyone Specific

12. What is Needs? Needs are basic or advanced urges or demands that lead us to take an appropriate action to fulfill them. In terms of marketing, needs are the gaps which the companies try to fulfill with their products and services. The entire field of business and management is built around fulfilling the needs and demands of the customer hence making needs one of the most important aspect.

13. 5 Types of Needs in Marketing Need, in terms of marketing can be divided into the following five types: 1. Stated Stated Needs are the ones which are specified clearly by the customer or the market. They are also the expected needs for a particular product or service. These needs are at the most basic level without which the need cannot be qualified. e.g. I need food to eat and i feel like having a sandwich. 2. Real Real needs are at one level above the stated needs and put a boundary on the above. Real needs define the parameter which are immediate to defining and fulfilling the need. e.g. I need a cheese sandwich at affordable price.  3. Unstated Unstated needs are which are not obvious but are expected by the customer. These are the needs which can be used to differentiate by the companies while designing the products to fulfil the needs of the customer. e.g. I need basic vegetables to be added as part of my sandwich. It should not be just a single slice cheese plain sandwich .

14. 5 Types of Needs in Marketing 4. Delight Delight needs are the needs which provide the 'wow' factor. These needs like unstated needs can make some products more popular than the other if they meet these needs. e.g. The quality of the cheese used to be the best one with special sauce but still the price of the sandwich would be below 2$. 5. Secret These are the needs which a customer might not state or realize but can be one of the main reasons for choosing a particular product to fulfil the basic stated need. e.g. i need this sandwich to quickly eat my food and look cool.

15. Example of Needs For example a customer wants to buy a car. When consumer says he wants something, like an expensive car, that is his stated need. When the consumer wants a car for rational, genuine need, like he wants a car whose operating costs are low over a time, and not just a low initial price, this is his real need. In buying this car, the consumer also expects a good service from the dealer. This is the unstated need. When the consumer doesn’t explicitly express that he would want something but would like to have it anyway, say for example he would like the car dealer to include an onboard GPS navigation system too; this becomes a delight for him. Lastly , there is a desire seldom shown, this may be a secondary benefit of obtaining the product, yet equally important or might as well be the main reason, but not expressed so readily. For example, here the consumer wants a car for the status symbol so that he can show his friends that he is a savvy consumer. This is when he has a secret need to appear to fit in .

16. The functions of marketing 1 . Identify needs of the consumer 2. Planning 3. Product Development 4. Standardisation and Grading 5. Packing and Labelling 6. Branding 7 . Customer Service  8. Pricing 9. Promotion 10. Distribution 11. Transportation 12. Warehousing

17. Evolution of Marketing The Production Era (1800s to 1920s) • production creates demand • products will sell themselves

18. Evolution of Marketing The Sales Era (1920s to 1960s) • production is greater than demand • hire salespeople to find new markets and consumers

19. Evolution of Marketing The Marketing Concept Era (1960s to 1980s) strive to achieve organization’s goals and satisfy consumer needs marketing is integrated into each phase of business starting before production

20. Evolution of Marketing The Marketing Orientation Era (1980s to today) • continuously collect information about consumers’ needs, competitors • share this information with other departments and use it to create consumer value

21. CUSTOMER VALUE & SATISFACTION Customer value is the difference between the total benefits expected from a product/service and the total costs incurred to obtain that product or service . Value refers to the perceived worth or usefulness that a person assigns to something, such as a product or service. This can be influenced by a variety of factors, including the quality, price, and features of the product or service, as well as the individual's personal preferences, needs, and beliefs. On the other hand, customer satisfaction refers to the difference between the actual performance experienced by a customer and the expectation of the customer. Satisfaction, on the other hand, refers to the feeling of pleasure or contentment that a person experiences after using or consuming a product or service. It reflects the degree to which the product or service meets the individual's expectations and needs, and it can be influenced by factors such as the product's performance, reliability, and ease of use.

22. The 4 Ps of Marketing A marketing mix refers to a framework that uses the four Ps of product, price, placement, and promotion . This concept traces back to 1960, when marketing professor E. Jerome McCarthy first published it in a book entitled  Basic Marketing: A Managerial Approach . The different elements of a marketing mix work in conjunction with one another with the ultimate purpose of generating higher sales. In addition to the 4 Ps, three approaches can also be integrated that include people, process, and physical evidence to reinforce a consumer-centric type of marketing strategy. This type of strategy extends beyond a product-focused marketing approach.

23. What Is a Marketing Mix? A marketing mix includes multiple areas of focus as part of a comprehensive  marketing plan . The term often refers to a common classification that began as the  four Ps : product, price, placement, and promotion . Effective marketing  touches on a broad range of areas as opposed to fixating on one message. Doing so helps reach a wider audience, and by keeping the four Ps in mind, marketing professionals are better able to maintain focus on the things that really matter. Focusing on a marketing mix helps organizations make strategic decisions when launching new products or revising existing products.

24. Product This represents an item or service designed to satisfy customer needs and wants. To effectively market a product or service, it's important to identify what differentiates it from competing products or services. It's also important to determine if other products or services can be marketed in conjunction with it.

25. Price The sale price of the product reflects what consumers are willing to pay for it. Marketing professionals need to consider costs related to research and development, manufacturing, marketing, and distribution—otherwise known as cost-based pricing.  Pricing based primarily on consumers' perceived quality or value is known as  value-based pricing .

26. Place When determining areas of distribution, it's important to consider the type of product sold . Basic consumer products, such as paper goods, often are readily available in many stores . Premium consumer products, however, typically are available only in select stores .

27. Promotion Joint marketing campaigns are called a promotional mix. Activities might include advertising, sales promotion, personal selling, and public relations. One key consideration is the budget assigned to the marketing mix. Marketing professionals carefully construct a message that often incorporates details from the other three Ps when trying to reach their  target audience . Determination of the best mediums to communicate the message and decisions about the frequency of the communication also are important.

28. Elements of Marketing Concept 1. The Production Concept 2. The Product Concept 3. The Selling Concept 4. The Marketing Concept 5. The Societal Marketing

29. Production Concept Production Concept is a concept where goods are produced without taking into consideration the choices or tastes of the customers. It is one of the earliest marketing concepts where goods were just produced on the belief that they will be sold because consumers need them. Managers focusing on this concept concentrate on achieving high production efficiency, low costs, and mass distribution. They assume that consumers are primarily interested in product availability and low prices. This orientation makes sense in developing countries, where consumers are more interested in obtaining the product than in its features.

30. Product Concept The product concept proposes that consumers will prefer products that have better quality, performance and features as opposed to a normal product . A company should therefore focus on its product development and invest in continuous product improvements. The concept is truly applicable in some niches such as electronics and mobile handsets. Managers focusing on this concept concentrate on making superior products and improving them over time. They assume that buyers admire well-made products and can appraise quality and performance. However , these managers are sometimes so proud of their product that they do not realize what the market needs.

31. Selling Concept The Selling Concept proposes that customers, be individual or organizations will not buy enough of the organization‘s products unless they are persuaded to do so through selling effort. So organizations should undertake selling and promotion of their products for marketing success. The consumers typically are inert and they need to be forced for buying by converting their inert need in to a buying motive through persuasion and selling action . The consumers typically show buying inertia or resistance and must be coaxed into buying. The aim is to sell what they make rather than make what the markets wants. Such marketing carries high risks. It focuses on creating sales transactions rather than on building long term, profitable relationships with customers.

32. Marketing Concept It holds that the key to achieving its organizational goals consists of the company being more effective than competitors in creating, delivering, and communicating customer value to its selected target customers. Let‘s take an example of 2 eternal rivals – Pepsi and Coke – Both of these companies have similar products. However the value proposition presented by both is different. These companies thrive on the marketing concept. Where Pepsi focuses on youngsters, Coke delivers on a holistic approach. Also the value proposition by Coke has been better over ages as compared to Pepsi which shows that coke especially thrives on the marketing concept, i.e. it delivers a better value proposition as compared to its competitor.

33. Examples of Marketing Concept United Airlines You‘re The Boss Burger King Have It Your Way General Electric We‘re Not Satisfied Until You Are

34. The human concept, The intelligent consumption concept, The ecological imperative concept, & Cause- related marketing. The societal marketing concept calls upon marketers to balance three considerations in setting their marketing policies, viz. company profits consumer satisfaction public interest Societal Marketing concept focuses on: Less Toxic Products More Durable Products Products with Reusable or Recyclable Material The Societal Marketing

35. Real-life Examples of Societal Marketing Adidas Adidas is one of the top leading sportswear companies in the world. When it comes to the environment, Adidas is committed to manufacture its products that could be reused over and over again. Coca Cola Coca Cola is the top soft drinks company, and Coca-cola is also committed to the social-environmental responsibilities by providing products across the world regardless of their ethnicities . The company actively promotes recycling programs, supports educational and environmental initiatives, and advocates for responsible consumption. By aligning its brand with social and ecological values, Coca-Cola enhances its reputation and resonates with socially conscious consumers. Marketing Environment

36. Marketing Environment

37. Meaning of Marketing Environment Marketing environment consists of all those internal and external forces which affect the marketing strategies. Modern marketer realizes that environmental scanning would provide them with continuous interaction between the customers and the business they are in. According to Philip Kotler “ Marketing environment as the external factors and forces that affect a firm’s ability to develop and maintain successful transactions and relationships with the target customers.”

38. Nature of Marketing environment The marketing environment of a business firm may be static or dynamic when the environment forces do not show a significant change, it is termed as stable or static environment. And when significant changes are seen in the environment forces it is termed as dynamic environment. But the degree and nature of change is predictable. There are some other forces in the environment which have considerable influences on the marketing strategies of a firm are listed below; Increased Competition Labour unrest Social changes Technological changes Change in fashion

39. Components Or factors affecting marketing environment These forces are either internal or external to the firm. The components of marketing environment or the forces/factors affecting the marketing environment can be grouped in two broad categories: Controllable or Internal Marketing Environment Uncontrollable or External Marketing Environment

40. Controllable or Internal marketing environment Marketing environment includes all factors that effect marketing policies, decisions and operations of a company. The internal environment of a firm include controllable factors or variables such as product design, branding packaging, pricing, advertising and distribution policies of the firm. A firm or a company can achieve its marketing objectives by selecting a balanced Marketing Mix. Marketing Mix The policies adopted by manufacturers to attain success in the marketing constitute the marketing mix. Marketing Mix is considered as an important part of marketing system of the company. It is controllable factor of marketing environment.

41. Uncontrollable or External Marketing environment. The external forces or factors which constitute uncontrollable environment are divided into two parts for the study purpose: ( i ) Micro factor such as: Suppliers, Intermediaries, Competitors, Customers and General public (ii) Macro Factors such as: demographic, economic, political, Legal, Technological, Social and Cultural. These factors or forces influencing marketing decision making are collectively called as Marketing Environment.

42. Micro Marketing Environment Micro environment factors are closely related to a specific company/firm and are included as part of the firm’s total marketing system. Hence, marketers must get adequate information about Internal Environment. Micro marketing Environment Company Suppliers Intermediaries Customers Competitors Publics

43. Macro marketing environment It consists of all uncontrollable as far as business is concerned. A brief explanation of macro environment Macro Marketing Environment Demographic Environment Economic Environment Socio-Cultural Environment Political Environment Legal Environment Technological Environment Competitive Forces Consumer Demand Ecological Environment

44. Scanning of Marketing Environment Though, future is unpredictable, but marketer can obtain appraisals of what is ‘most probable’. To monitor changes in the marketing environment effectively, marketer must engage himself in the scanning and analysis of marketing environment. Advantages of scanning of marketing environment There are several benefits that accrue to a marketer by scanning of marketing environment, such as; Trendy products can be brought out in the market. Competitor moves can be anticipated and countered. Marketing mix strategy can be properly formulated. Adapting to the uncontrollable environment become easy.

45. Marketing to the 21st century customer. 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 has evolved significantly during the last few decades. The marketing era that began in the 1950s evolved into the relationship marketing era in the 1990s and transformed into the digital marketing era in the first decade of the 21st century.

46. Rise of Digital Marketing Marketing in the 21st century combines both traditional and digital channels to promote products and services. Before the 21st century, organizations had no advertising options other than conventional channels such as newspapers, television, flyers and radio to reach their target customers. They focused on mass marketing campaigns to create awareness in the target market and influence potential customers to make purchasing decisions . The arrival of the internet transformed the concept of promotion into inbound marketing from outbound marketing. Inbound marketing facilitates two-way interactive communication between organizations and customers through search engines and social media platforms, emails and content strategies.

47. Social Media Marketing Organizations use social networking platforms such as Facebook, Twitter, LinkedIn and Instagram extensively to engage target audiences in interaction and influence their behavior. Social media has become a platform for people to share opinions and purchase experiences . With appropriate marketing efforts to channel these opinions and purchase experiences, organizations spread positive word-of-mouth through social media platforms and increase conversion rates. The benefits of social media marketing for organizations are low cost and high response rate.

48. Personalized Email Marketing Marketing in the 21st century focuses on adding value to customers by educating and entertaining them through digital platforms. Email marketing is a widely used tool for sending personalized messages to customers and persuading them to make purchases. Organizations in the 21st century have created opt-in email lists to execute an email marketing campaign. An opt-in email list comprises email addresses of individuals who have shown an interest in services or products offered by an organization . As reported by the  Data and Marketing Association  in 2019, organizations earn an average of $42 on every $1 they spend on email marketing. The  Content Marketing Institute  in 2019 reported that nearly 87 percent of organizations use emails to disseminate a personalized promotional message to clients.

49. Content Marketing Strategy Content is king when it comes to marketing in the 21st century. Small and medium-scale organizations extensively use search engine marketing techniques to reach target customers online. High-quality , unique and value-added content is essential for websites to achieve high ranks on search engines such as Google, Yahoo and Bing. The Google search engine, in particular, emphasizes quality content when ranking websites. The content marketing strategy in the 21st century is to help organizations achieve objectives such as engaging customers, persuading them to make purchase decisions, and developing brand identity.

50. Traditional Marketing in the 21st Century Though organizations have shifted to digital marketing in the 21st century, traditional marketing is not dead. Large-scale organizations are still highly dependent on television and print advertising to attract customers. The marketers of large-scale organizations integrate traditional and digital marketing strategies to create a suitable brand image for their products. Meanwhile, small-scale organizations with a lower marketing budget leverage digital marketing tools to bring more clients on board. Marketing in the 21st century is a mix of both traditional and digital marketing. Depending on the type of products, marketing budget, size of the target market, and spending habits of potential customers, organizations alter their marketing strategies accordingly.