unit_Introduction to marketing management.pptx

introduction part of marketing management

1. UNIT - I Defining Marketing – Core Concepts in Marketing – Evolution of Marketing – Marketing Planning Process – Scanning Business environment: Internal and External – Value chain – Core Competencies – PESTEL - SWOT Analysis - Marketing Interface with other Functional areas – Production, Finance, Human Relations Management, Information System – Marketing in global environment – International Marketing – Rural Marketing – Prospects and Challenges.

2. Reference: 1. Philip T. Kotler and Kevin Lane Keller, Marketing Management, Prentice Hall India, 15 th Edition, 2017 2. Ramasamy, V.S Namakumari , Marketing Management: Global Perspective Indian Context, Macmillan Education, New Delhi, 6 th Edition 2018 3. Micheal R. Czinkota , Masakki Kotabe , Marketing Management, VikasnThomson Learning, 2 nd edition 2006

3. Philip Kotler : “Marketing management is the analysis, planning, implementation and controlling of program me designed to bring desired exchanged with target audience for the purpose of mutual gain. It relies heavily on the adoption and coordination of product, price, promotion and place for achieving effective response”

4. Marketing Management : Marketing is a social process by which Individual of groups obtain what they need and want through creation, offering and exchanging goods & Service of value with others. Features: 1) Needs & Wants 2) Creating in market offering 3)Customer Value 4) Exchange Values

5. Core concepts in Marketing

6. 1. Needs, Wants, and Demands need - is the basic requirement or state of felt deprivation that is fundamental to human existence. The need of humans is not influenced by the outside world. Our basic need includes food, water, shelter, oxygen, etc. and secondary may be intimacy, recreation, etc. among five types of needs: 1. Stated needs 2. Real needs 3.Unstated needs 4.Delight needs 5. Secret needs Want- is a desire to satisfy of need. Customers’ want is based on their taste, preference, culture, the society they belong to, and individual personality. For example, need is food – while there are many options for food want takes place to satisfy the need. Demand- It is the next level of want. Demand is when consumers want to buy and they possess the ability to pay and the willingness to buy. Remember – a demand is when it has a willingness to buy and the ability to pay. Eight demand states are possible. 1. Negative demand 2. Non existent demand 3. Latent demand 4. Declining demand 5.Irregular demand 6. Full demand 7. Overfull demand 8. Unwholesome demand

7. 2. Product, Service, and Experience Product - A product is an item that has the ability to satisfy customers’ needs, wants, and demands. Here product refers to a physical item such as a mobile, house, car, bike, clothes Service - A service is a form of product that is intangible in nature and can not be seen but felt or experienced. For example, cooking, insurance, transportation, doctor’s service Experience - Experience is what we obtain through consuming products or using the service. The experience may be as good, bad, boring, or interesting. Customers get to experience when they use the product or service. 3. Market : A market is a place where potential buyers and seller meet and buys or sells goods (product) and services. Here, the market does not refer to any specific location it can be anywhere offline-online where buyers and sellers meet and involve in transactions of well-defined products to satisfy their needs.

8. 4. Exchange, Transaction, and Relationship : Exchange - The exchange is also called the barter system. In exchange, include two parties who give something in return for something. There are three types of Exchanges. 1. Restricted Exchange 2. Generalized exchange 3. Complex Exchange Transaction - A transaction is an event that happens after the exchange and is done in monetary terms. For example, you give an apple to Ram in return for an Orange that is an exchange. And, when you buy an orange giving some money to the seller is a transaction. Relationship - Here, the relationship also called relationship marketing refers to building long-term relationships with customers, suppliers, distributors, and other stakeholders of the company. It aims to maintain a stronger connection with stakeholders who are directly or indirectly involved in the business.

9. 5. Customer Value and Satisfaction: Customer Value - Value refers to the worth consumers get after using your products. Customer value is based on quality, service, and price. The customer value may change with time and situation and differ from consumer to consumer. Customer Satisfaction - It is determined by the performance and delivery of a product or service to customers’ expectations. As customer satisfaction is the end point of marketing, the key to the success of marketing is to match product (or service) performance with customers’ expectations.

10. Evolution of Marketing: Marketing Management is a discipline that focused on the implementation of marketing techniques and management of firms marketing resources. "By the provision of satisfaction of the needs of the lack of consumers to achieve institutional purpose on Marketing Program Analysis, Plan formulation, Implementation, and marketing of controls are called Marketing Management. “ Marketing Management and its evolution: 1. Production Orientation Stage-(1860-1920) 2. Sale Orientation Stage- (1920-1950) 3. Marketing Orientation Stage- (1950-1970) 4. Social Marketing Orientation Stage-(1970-1990) 5. Relationship Marketing Orientation Stage- (1990- )

11. 1. Production Orientation Stage: From 1860 to 1920 was called production orientation stage. In this stage, people understood that the more products you could exchange, the more profit you could make. By this formula, people were producing more products. At the end of the eighteenth century, there were many changes in the production system as a result of the industrial revolution. The new equipment was captured the man's manual labor space. As a result, the production was increased by a few hundred. Manufactured products supplied in different countries. 2. Sale Orientation Stage: From 1920 to 1950 was called sale orientation stage. Large production system was created at this stage by developing technology and increasing employees efficiency. In this system, it produces a lot of products. At that time, the manufacturers realized that if only they depend on the customers, they will not buy products rather than manufacturers must force to sell products. In this regards, they accepted aggressive sales strategy and started to advertise extensively.

12. 3. Marketing  Orientation Stage:  From 1950 to 1970 the Marketing Orientation Stage was started. The needs of shoppers goods were growing to buyers and they were becoming aware. At this stage, the marketers changed their marketing policy. At this point, the marketers are trying to understand the customers need and according to that, they invent these products. 4. Social Marketing Orientation Stage: Social Marketing Orientation started after 1970. This stage emphasized the welfare of social people with the rest of customers. Marketing Companies gave importance to produce the environment-friendly products. 5. Relationship Marketing Orientation Stage: Relationship Marketing was started after 1990. Actually, this stage is involved with Relationship Marketing is a process of making the relationship and continues with the customers or other relative parties. acquiring, saving and increasing of Customers. Finally, It can be said that Marketing Management has entered a relationship marketing stage by increasing the productive stage.

13. Marketing Planning Process: Marketing Process is one of the important economic activities. Each and every activity in marketing is called as marketing process. Buying, selling, storage, financing and risk taking are example of business activities. The Marketing Planning process outlines the plan of a company as to how they will make their product successful. Some of the important points are mentioned below: * The company checks the market condition * Define targets where they want to see their product by making analysis and adopting different marketing techniques. * How to create a road map for the product becoming popular in the market? * To select the best options through extensive brainstorming * This process also helps you to stay in the market even in peak business time.

14. Marketing Mix  Marketing mix is a selection of marketing tools that include several areas of focus that can be combined to create a comprehensive plan. Marketing mix is a pack of four sets of variables that began as the 4 P’s: product, price, placement, and promotion, and has been expanded to 7 p’s :Product, Price, Promotion, Place, People, Packaging, and Process. In simple words marketing mix means a marketing programme that is offered by a firm to its target consumers to earn profits through satisfaction of their wants. Such a marketing programmes is a mixture of four mix, namely product mix, price mix, place mix, and promotion mix. - Mr. Jerome McCarthy

15. 1. Product (or) Service

16. 1. Product: Product is the main element of marketing without a product, there can be no marketing “A product is anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or a need” -Philip Kotler

17. 2. Price : “Price is the amount of money charged for a product or service, or the sum of the values that consumers exchange for the benefits of having or using the product or service. It is the amount charged for the product factors affecting price of product/service. Internal Factors : 1. Marketing Objectives 2.Marketing Mix Strategy 3.Organizational Considerations 4.Organizational Objectives 5.Cost External Factors: 1.The market and demand 2.Competition 3.suppliers 4.Legal Factors 5. Regulatory Factors

18. 3. Place : An excellent quality product, with a competitive price Structure, backed up by promotional activities, will be a waste if it is not moved from the place of Consumption at an appropriate time. Place mix or physical distribution facilitates the movement of products from the place of manufacture to the place of consumption at the right time.

19. 4. Promotion : An excellent product with competitive price cannot achieve a desired success and acceptance in market, unless and until its special features and benefits are conveyed effectively to the potential consumers.

20. Scanning Business Environment : Environmental scanning is a process of gathering information about the events and their relationship within an organization’s internal and external environments. The primary aim environmental scanning is to help management determine the future direction and find out the future prospects of business organization.  Internal and External : Internal Environment refers to those factors an Organization. Ex: Policies and programmes , organizational structure, employees, financial and political resources. These factors can be changed or altered and hence are known as controllable factors. On the other hand, the external environment includes those factors that are outside of the organization; while management has no control over these items, the company must prepare for and respond to the factors. Elements of the external environment include the economy, changes in technology, regulation, competition, socio-economic factors, and others. Internal ----- Strength (S) Weakness (W) External------ Opportunities (O) Threats (T)

21. Value Chain: A value chain is a series of consecutive steps that go into the creation of a finished product, from its initial design to its arrival at a customer's door. The chain identifies each step in the process at which value is added, including the sourcing, manufacturing, and marketing stages of its production. A value chain is a model that helps companies determine their competitive advantage and refine their business practices to operate with maximum efficiency and the largest possible profit margins. COMPONENTS OF A VALUE CHAIN: According to Porter’s definition, all of the activities that make up a firm's value chain can be split into two categories that contribute to its margin: primary activities and support activities.

22. Primary activities  are those that go directly into the creation of a product or the execution of a service, including: Inbound logistics : Activities related to receiving, warehousing, and inventory management of source materials and components Operations : Activities related to turning raw materials and components into a finished product Outbound logistics : Activities related to distribution, including packaging, sorting, and shipping Marketing and sales : Activities related to the marketing and sale of a product or service, including promotion, advertising, and  pricing strategy After-sales services : Activities that take place after a sale has been finalized, including installation, training, quality assurance, repair, and customer service Secondary activities  help primary activities become more efficient—effectively creating a competitive advantage—and are broken down into: Procurement : Activities related to the sourcing of raw materials, components, equipment, and services Technological development : Activities related to research and development, including product design,  market research , and process development Human resources management : Activities related to the recruitment, hiring, training, development, retention, and compensation of employees Infrastructure : Activities related to the company’s overhead and management, including financing and planning

23. Core Competencies : The core competencies in business are its unique and fundamental capabilities, setting it apart from the competitors and making it the best in the market. It advocates the collaboration of diverse teams having unique skills to achieve one goal, i.e., producing the best end product. Brands like Apple, Amazon, Starbucks, Nike, etc., have established themselves as the best in their respective field by identifying their core capabilities and introducing innovative core or end products. * Value-Added Service * Excellent Customer Service * Product Innovation * Strategic Marketing * Unmatched Quality Here are some core competencies examples to provide a better understanding of the concept. However, the more common distinctive competencies of a successful business are:

24. Objectives of Marketing Develop marketing field Intelligent and capable application modern marketing policies Develop guiding marketing policies and implementation for good result Suggest solutions by studying the problems relating to marketing Find sources for further information the marketing problem Revive(new solution) existing marketing function ,shortcomings are found Take appropriate actions in the course of action(need extra actions)

25. Important of Marketing To the Society Connecting link between consumer and the product Increasing the living standard of people Increase national income (import & export) Increase employment opportunities Reduction in the cost of marketing (marketing cost reduce is product cost is low) Creates modern cultivators (advance fertilizers & new methods, ) Maintain economic stability-developing (or) underdeveloped countries Shortage of supply goods (correct transport)

26. To the Individual Firms Generates revenue to firms Marketing & innovation are the two basic functions all business Creates employment opportunities for people & development of business Taking over all decision on production.

27. PESTEL Analysis

28. A PESTLE analysis allows a strategic and systematic evaluation of a business's prospects, risks and opportunities in a new environment. Political factors include government policies, leadership, and change; foreign trade policies; internal political issues and trends; tax policy; regulation and de-regulation trends. Economic factors include current and projected economic growth; inflation and interest rates; job growth and unemployment; labor costs; impact of globalization; disposable income of consumers and businesses; likely changes in the economic environment. Social factors include demographics (age, gender, race, family size); consumer attitudes, opinions, and buying patterns; population growth rate and employment patterns; socio-cultural changes; ethnic and religious trends; living standards. Technological factors affect marketing in (1) new ways of producing goods and services; (2) new ways of distributing goods and services; (3) new ways of communicating with target markets. Environmental factors are important due to the increasing scarcity of raw materials; pollution targets; doing business as an ethical and sustainable company; carbon footprint targets. Legal factors include health and safety; equal opportunities; advertising standards; consumer rights and laws; product labeling and product safety

29. SWOT Analysis SWOT analysis is a technique used to determine and define your Strengths, Weaknesses, Opportunities, and Threats – SWOT. SWOT analyses can be applied to an entire company or organization, or individual projects within a single department. Most commonly, SWOT analyses are used at the organizational level to determine how closely a business is aligned with its growth

30. Roles of Marketing Profit or Community Service (Govt Vaccine Advertisement) Role in firm: --Customer satisfaction Customer is the chain marketing( referring to others) Role in Economy: -- improving standard of living Analyse

31. Functions of Marketing Gathering and analysing marketing information Marketing planning (coming soon advertising) Standardization (Quality) Packing & Labelling Branding (Brand name) Customer support service (mobile phone service) Pricing of product Promotion (Advertising) Distribution Channel (distributors, Area distributors) Transportation (Advertisement coverage areas)

32. Functional areas of management (Operational Management) Human Resource Management

33. Production Management Planning Organising Direction Co-ordination Control (Supervision) Goods or Service (produce in right time) Quality (Right quality) Pricing (Right pricing) Material management (Purchase & Inventory ) Product & Development

34. Production management includes the Development, design and Improvement of Products or Services. The role of a marketer in product management is to ensure that a finished product meets customer needs. Analysing Competitors – Researching and analysing your competition Communicating with Customers – improve your products before they reach the market. Implementing feedback – not only the customers, gather feed back from employees and several areas( both inside and outside organisation) Conducting market research – researching similar products helps to marketing team. Coordinating with other departments - collaborating with other teams like finance , generate ideas to distribution and deliver the product.

35. Marketing Information Management Its important to collect and store data, such as customer preferences and demographics. This data directly relates to your target audience for your products and services. Gathered information from various marketing tools Surveys Online reviews Social media engagements Market research reports

36. Types of marketing Trade marketing - Trade marketing is a strategy focused on wholesalers, retailers and distributors rather than consumers Online marketing - Digital marketing also called online marketing is the promotion of brands to connect with potential customers using the internet and other forms of digital communication . This includes not only email, social media, and web-based advertising, but also text and multimedia messages as a marketing channel. Network marketing - Network marketing, also known as direct selling, is a business model in which individuals sell products or services directly to consumers

37. Customer marketing

38. Network Marketing Low cost entry No market place No employees Own timing Passive income Risk 0% Unlimited Income

39. Difference between Marketing and selling Marketing Focus on Customer needs Profit oriented Consumer determine price Marketing is central function Consumer is the first as well as the last link in the business Long term result Marketing starts before production Philosophy of marketing is satisfaction Sales are primary motive Converts the goods into cash Selling Focus on seller needs Production oriented (Sales volume) Production costs determine price Production is central function Consumer is the last link in the business Short term result Selling starts after production Philosophy of selling is profit Satisfaction of the customer is primary Converts consumer needs into product

40. benefits of global marketing Wider audience and expanded customer base - Appealing to the international marketplace means that international brands and even small businesses can grow beyond the limits of their domestic market borders. Enhanced brand awareness and reputation - World-wide brands and global companies often have a competitive advantage simply due to familiarity, name recognition, and easy of access. Additional insight - With a larger target audience and customer base comes more opportunities to gather insight and feedback – especially in online spaces such as social media, where people are more likely to engage with globally recognised brands.

41. Prospects (or) opportunities of Global Marketing Market Expansion – larger customer base Brand Reputation – selling in multiple markets Global Networking – more places in more connections Diversification – demand for product Opening Door for Future Opportunities – future business expansion New Revenue Potential – Globalizing Employment Opportunity – Economic Development

42. Challenges of Global Marketing Technical and Administrative Regulations- Technical Standard Healthy and Safety Regulations – sale of the product Surcharges – International Shipping rate Currency Values – fluctuations in currency value Unstable Governments – expose foreign firms Foreign Exchange Problems – economic and political instability Political and Legal Differences - Differences in Languages – diff countries in different languages Cultural Differences – international marketing