MARKETING MANAGEMENT Theodore Levitt of Harward drew a perceptive

and growing customers through creating, delivering contrast between the selling and marketing
and communicating superior customer value. concepts. Selling focuses on the needs of the
In 2004 the Marketing management is the art and seller, marketing on the needs of the buyer.
science of choosing target markets and getting, Selling is
keeping American Marketing Association defined preoccupied with the seller’s need to convert his
“Marketing is an organizational function and a set product into cash, marketing with the idea of
of processes for creating, communicating and satisfying
delivering value to customers and for managing the needs of the customer by means of the
customer product and the whole cluster of things
relationships in ways that benefit the organization associated with
and its stakeholders.” creating , delivering, and finally consuming it.
IMPORTANCE OF MARKETING MARKETING ENVIRONMENT
marketing to companies It includes all those factors which are external to a
Helps in income generation ,Helps in planning and firm and which affect the Marketing process.
decision-making ,Helps in distribution ,Helps in According to Philips Kotler, Marketing
exchanging information ,Helps to earn goodwill. environment is constantly spinning out new
marketing to consumers opportunities and new threats, and the firms find
Provides quality products ,Provides variety of their marketing collapse. Therefore, the company’s
products ,Improves knowledge of consumers ,Helps Marketing executives must constantly monitor the
in selection ,Consumer satisfaction. changing Marketing scene and observe the changing
marketing to society environment through Marketing research. The
Provides employment , Raises standard of Marketing Environment includes non- controllable
living .,Reduces costs ,makes life easier. variables that effects the company’s ability to serve
EVOLUTION OF MARKETING CONCEPT its markets.
The Production Concept MICRO - ENVIRONMENT VARIABLE S
It is one of the oldest concepts in business. It holds consists of elements or forces that influence
that consumers will prefer products that are widely marketing directly. It includes Supplier, Marketing
available and inexpensive. Managers of production- Intermediaries, customer,public
oriented business concentrate on achieving high SUPPLIER One who supply the resources to a
production efficiency, low costs, and mass company. Any shortage of Supply affect the
distribution. Marketing
The Product Concept function and thus, should avoid dependence on any
It proposes that consumers favor products that offer single supplier.
the most quality, performance, or innovative features. MARKETING INTERMEDIATES They are the
Managers in these organizations focus on making middlemen who create place Utility, Time utility and
superior products and improving them overtime. Quantity utility. These includes Physical Distribution
The Selling Concept Firms, Transport Companies, Marketing Consulting
It holds that consumers and businesses, if left Firms, and Assist the company in promoting the right
alone, won’t buy enough of the organization’s products to the right markets.
product. The organization must therefore undertake CUSTOMERS It refers to consumer markets,
an aggressive selling and promotion effort industrial markets, reseller markets, international
The Marketing Concept markets
It emerged in mid-1950s, instead of a product- and govt. markets having its own characteristics.
centered, make- and –sell philosophy, business PUBLIC The marketing decisions considerably
shifted to a customer- centered, sense-and-respond influenced by public relations, govt. policies, the
philosophy. press, the legislatures and the general public.
The marketing concept holds that the key to MACRO- ENVIRONMENT VARIABLE S
achieving organizational goals is being effective Macro-environment consist of forces affecting the
than entire society or economy at large.
competitors in creating, delivering, and Macroenvironment influences entire industry as a
communicating superior customer value to your whole.
chosen target markets.  Demographic environment.
 Social-Cultural environment. individuals decide what, when, where, how and from
 Economic environment (It comprises of economic whom to purchase goods and services
system of the country, affects the demand structure FACTORS INFLUENCING CONSUMER
of any industry/product. Changes in economic BEHAVIOUR/ BUYING DECISIONS
conditions provides marketers with new challenges Psychological Factors (Consumer Needs and
and threats. Motivation, Perception, Learning, Belief and
 Ethical environment. Attitude,)
 Political environment. Social Factors (Reference Group, Role and Status,
 Physical environment. Family:)
 Technological environment.( It helps to shape Cultural Factors (Culture, Sub-Culture, Social
changes in living style of the consumers. It has Class)
the responsibility of relating changing life- style Personal Factors (Age, Stages in the Life Cycle ,
patterns, values and changing technology to market Occupation and Economic Status ,Life
opportunities for profitable sales to particular market Style ,Personality , Self-Image)
segment. CONSUMER BUYING PROCESS
DOMESTIC MARKETING RECOGNITION OF AN UNSATISFIED NEED:
The marketing strategies that are employed to attract All buying decisions start with need recognition.
and influence customers within the political When a need is not satisfied it creates tension. This
boundaries of the country are known as domestic tension drives people to satisfy that need. Then
marketing . Focus only on the local customers. need becomes motive. Thus motives arise from
INTERNATIONAL MARKETING needs and wants. The force that converts needs into
Nothing but the application of marketing concept motives is called motivation.
across the countries .When there are no boundaries IDENTIFICATION OF ALTERNATIVES:
for a company and it targets customers overseas or in After recognizing a need or want consumers search
another country , it is said to be engaged in for information about the various alternatives
international marketing available to satisfy it. If the need is usual, such
MODES OF ENTERING IN A FORIGN MKT as hunger, thirst etc. the consumer may rely on
1. Indirect exporting past experience of what satisfies this need. If needs
2. Direct exporting are unusual or unfamiliar, consumer may seek
3. Direct investment additional information from friends, family, media,
4. Licensing sales people etc. it is only through this information
5. Franchising search that we can identify the means of satisfying
Is a type of licensing agreement. Where a our need.
packaging of services is offered by the franchiser to EVALUATION OF ALTERNATIVES:
the franchisee in return for a payment. The Two By collecting information during the second stage, an
franchising are 1)product and trade name, 2)business individual comes to know about the brands and their
format franchising. features. Now he compares the alternative products
6. Joint ventures or brands in terms of their attributes such as price,
It may be a necessary due to legal restrictions on quality, durability etc. during the evaluation stage he
foreign investment. A joint venture also reduce the may consider the opinion of others such as wife,
investment required by a foreign firm, besides relatives and friends. Then he selects the brand that
reducing risk. A MNC enters in to a joint venture will give him the maximum utility (or that he thinks
agreement with a company from the target country the best)
market. There are two types of joint ventures 1)
contractual and equity joint venture. PURCHASE DECISION:
Finally the consumer arrives at a purchase decision.
CONSUMER BEHAVIOUR Purchase decision can be one of the three, namely no
The study of consumer behaviour is the study of buying, buying later and buying now. If he has
how individuals make decisions to spend their decided to buy now, he will decide the shop (dealer)
available resources ( time, money, effort ) on to buy it from, when to buy it, how much money to
consumption related items. Walters and Paul spend etc. After deciding these, he will go to the shop
“consumer behaviour is the process where by chosen and buy the product of the brand chosen.
POST PURCHASE BEHAVIOUR:
 It refers to the behaviour of a consumer after A number of market segments are identified and
purchasing a product. After the consumer has different marketing mix is developed for each of the
actually purchased the product/brand he will be segments.
satisfied or dissatisfied with it. If he is satisfied with Concentrated Marketing:
the product he would regularly buy the brand and It is concerned with the concentration of all
develop a loyalty. He recommends the brand to his marketing efforts on one selected segment within the
friends and relatives. The negative feeling which total market.
arises after purchase causing inner tension is Customised or Personalised Marketing:
known as Cognitive Dissonance In this case firms view each customer as a separate
THE BUYING ROLES (draw digram) segment and customised marketing programmes to
Initiator that individuals specific requirements. Eg; civil
Influencer engineers designing flats, villas, bridges etc.
Payer TARGET MARKETING
Decider Target marketing is the process of assessing the
Buyer relative worth of different market segments and
User selecting one or more segments in which to compete.
ORGANIZATION BUYING BEHAVIOUR These become the target segments. Titan is using the
1. Recognizing the difficulty target marketing strategy very effectively. German
2. Determination of specification and quantity of car manufacturer Mercedes target high status
needed items consumers with experience and prestigious motor
3. Search for and qualification of potential resources cars.
4. Acquisition and analysis of proposals
5. Performance feedback and evaluation According to David Cravens and others “ Target
MARKET SEGMENTION market is a group of existing or potential
According to Philip Kotler, “Market segmentation customers within a particular product market towards
is the sub-dividing of a market into homogenous which an organisation directs its marketing efforts”.
sub-sects of consumers where any sub-sects may TARGET MARKETING STRATEGIES
conceivably be selected as a market target to be Total market approach: A company develops a
reached, With a distinct marketing mix.” single marketing mix and directs it at the entire
IMPORTANCE OF MARKET market for a particular product. This approach is
SEGMENTATION used when an organisation defines the total
Increases sale volume. market for a particular product as its target market.
Helps to win competition. Concentration approach: An organisation directs
Enables to take decisions. its marketing efforts toward a single market
Helps to prepare effective marketing plan. segment through a single marketing mix. The total
Helps to understand the needs of consumers. market may consist of several segments, but the
Makes best use of resources. organisation selects only one of the segments as its
Expands markets. target market.
Creates innovations. Multi-segment approach: An organisation directs
Higher markets share. its marketing efforts at two or more segments by
Specialised marketing. developing a marketing mix for each segment.
Achieves marketing goals. NICHE MARCKETING
Customer oriented. It is a focused position of larger segment that is
Quality product at reasonable price. generally not being addressed by mainstream
Other benefits such as discounts, prize providers. Advantages are 1) the number of customer
PATTERNS OF SEGMENTATION OR is less, there is usually non- existent competition,
PROCESS particularly from big firms 2) there is not much
Undifferentiated Marketing: pricing pressure 3) there is higher than average
Under this strategy, the producer or marketer customer loyalty
does not differentiate between different type of
customers. One marketing mix is used for the whole PRODUCT POSITIONING
market. Eg. Pepsi.
Differentiated Marketing:
 The act of creating an image about a product or the researchers to understand the people who are to
brand in the consumers mind is known be interviewed in the main data collection stage and
aspositioning. the mkt that is being researched. The objective is to
In the words of Kotler, “Positioning is the act of get better acquainted with the mkt and its customers.
designing the company’s offer and image so that it 2-SECONDARY RESEARCH
occupies a distinct and valued place in the target Secondary data is easy to access and obtain and is
consumers minds.” In short, the process of creating relatively inexpensive. If it is not conducted an
an image for a product in the minds of targeted expensive primary research may be needed to
customers is known as product positioning. Close-up provide data that is already available.
tooth paste is looked upon by the consumers more as 3-QUALITATIVE RESEARCH
a mouth wash than a teeth cleaner, while ‘pepsodent’ 4-DISCRIPTIVE RESEARCH
has created an impression of germ killer in the It means describe something. Such research may be
consumers minds. for instance mean to describe customers believe,
Strategy attitude, recall of advertisement and knowledge about
STEPS IN PRODUCT POSITIONING its content.
1) Identifying potential competitive advantages: 5- EXPERIMENTAL RESEARCH
Consumers generally choose products and services It establishes cause and effect. it involves stepping up
which give them greatest value.The key to of control procedures to isolate the impact of factor
winning and keeping customers is to understand like money off on a dependant variable like sales.
their needs and buying processes far better than the PRODUCT
competitors do and deliver more values. According to Jobber(2004), “ A product is
2) Identifying the competitors position: When the anything that has the ability to satisfy a
firm understands how its customers view its brand consumer need.”
relative competitors, it must study how those same PRODUCT LINE
competitors position themselves. Product lining is the marketing strategy of offering
3) Choosing the right competitive advantages: It for sale several related products. Unlike product
refers to an advantage over competitors gained by bundling, where several products are combined into
offering consumers greater value either through one, lining involves offering several related products
lower price or by providing more benefits. individually. A line can comprise related products of
4) Communicating the competitive advantage various sizes, types, colors, qualities, or prices. Line
The company should take specific steps to depth refers to the number of product variants in
advertise the competitive advantage it has chosen a line.
so that it can impress upon the minds of PRODUCT DIFFERENTIAT ION
consumers about the superiority claimed in respect Product differentiation involves developing and
of the product over its competing brands. promoting an awareness in the minds of
5) Monitoring the positioning strategy: Markets arecustomers that the company’s products differ from
not stagnant. They keep on changing. Consumer the products of competitors. This is made by using
tastes shift and competitors react to those shifts. trade mark, brand name, packaging, labeling etc.
After a desired position is developed, the PRODUCT MIX
marketer should continue to monitor its position The number of different product lines sold by a
through brand tracking and monitoring. company is referred to as width of product mix.
The total number of products sold in all lines is
STAGES IN MKTING RESEARCH PROCESS referred to as length of product mix.
1. Initial contact( it includes research brief, research
proposal) FACTORS INFLUENCING PRODUCT MIX
2. Pilot stage( questionnaire, choosing research method) Change in demand.
3. Data collection( analysis and interpretation, report Marketing influences.
and presentation) Production efficiencies.
TYPES OF MKT RESEARCH Financial influence.
1. EXPLORATORY RESEARCH Use of waste.
It is the preliminary exploration of the research area Competitor’s strategy.
prior to main quantitative data collection and after Profitability
the acceptance of the proposal by the client. it allows
NEW PRODUCT DEVELOLOPMENT benefits of a certain product. In most cases, growth
New product development tends to happen in stages. takes several years to happen, and in some instances,
Although firms often go back and forth between the product just eventually died without achieving
these idealized stages, the following sequence is any rise in demand at all.
illustrative of the development of a new product: Product Maturity and Saturation Stage
New Product Strategy Development. Different In the maturity stage, the product reaches its full
firms will have different strategies on how to market potential and business becomes more
approach new products. Some firms have profitable. During the early part of this stage, one of
stockholders who want to minimize risk and the most likely market scenarios that every business
avoid investing in too many new innovations. Some should prepare for is fierce competition. In the
firms can only survive if they innovate frequently middle and late phases of the maturity stage, the rate
and have stockholders who are willing to take of growth will start to slow down and new
this risk. competitors will attempt to take control of the
Idea Generation. Firms solicit ideas as to new market. In most cases, many businesses falls and lose
products it can make. Ideas might come from money in these stages as they focus more on
customers, employees, consultants, or engineers. increasing advertising spending in hope of
Many firms receive a large number of ideas each yearmaintaining their grip of the market.
and can only invest in some of them. Product Decline Stage
Screening and Evaluation: Some products that The decline stage is the final course of the product
after some analysis are clearly not feasible or are not life cycle. This unwanted phase will take place if
consistent with the core competencies of the firm are companies have failed to revitalize and extend the
eliminated. life cycle of their products during the maturity
Business Analysis. Ideas are now exposed to more stage’s early part. Once already in this phase, it is
rigorous analysis. Profit projections, risks, market very likely that the product may never again recover
size, and competitive response are considered. If or experience any growth, eventually dying down
promising, market research may be done. and be forgotten.
Development: The product is designed and BRANDING
manufacturing facilities are planned. Branding means giving a name to the product by
THE PRODUCT LIFE CYCLE which it could become known and familiar
The product life cycle is tied to the phenomenon among the public. When a brand name is registered
of diffusion of innovation. When a new product and legalized, it becomes a Trade mark. All
comes out, it is likely to first be adopted by trademarks are brands but all brands are not
consumers who are more innovative than others they trademarks. Brand, brand name, brand mark, trade
are willing to pay a premium price for the new mark, copy right are collectively known as the
product and take a risk on unproven technology. It is language of branding.
important to be on the good side of innovators since TYPE OF BRANDS
many other later adopters will tend to rely for advice Manufacturer Brands: These are developed and
on the innovators who are thought to be more owned by the producers, who are usually involved
knowledgeable about new products for advice. At with distribution, promotion and pricing decisions for
later phases of the PLC, the firm may need to the brands.
modify its market strategy. Dealer Brands: These are brands initiated and owned
Stages by wholesalers or retailers.
Product Introduction/ Development Stage Generic Brands: It indicates only the product
This is the first stage in product life cycle. Before a category and do not includes the company name or
new product is introduced in the market place, it other identifying terms.
should be created first. The processes involve in this Family Brands: A single brand name for the whole
stage include generation of idea, designing of the line closely related items.
new product, engineering of its details, and the whole Individual Brands: Each product has a special brand
manufacturing process. name such as surf etc.
Product Growth Stage This is a period where Co-Brands: It uses two individual brands on a single
rapid sales and revenue growth is realized. product.
However, growth can only be achieved when more Licensed Brands: It involves licensing of trade
and more consumers will recognize the value and marks.
 ROLE or FUNCTION OF AND PACKAGING Pricing- fixed plus variable costs 4. Break-Even
1. Containing and protecting the product Pricing- at break-even point.
2. Promoting products Demand Based Pricing Policies: Setting price on
3. Facilitating storage, use and convenience the basis of the demand for the product. There are
4. Facilitating recycling and reducing environmental two methods. 1. Premium Pricing-Use a high price
damage where there is a uniqueness about the product or
MARKETING MYOPIA service. This approach is used where a substantial
It has been introduced by Theodore Levitt. One competitive advantage exists. Such high prices are
of the main reasons for the failure of large charged for 2. Differential Pricing-Same product is
business enterprises is that they do not actually know sold at different prices to different consumers.
what kind of business they are doing. This narrow Competition Based Pricing Policies: Setting
minded view of Marketing is called Marketing price on the basis of the competition for the
Myopia. Marketers suffer from marketing myopia product. There are three methods. 1. Going Rate
when they view their business as providing goods Pricing-Many businesses feel that lowering prices to
and services rather than as meeting customers be more competitive can be disastrous for them and
needs and wants. so instead, they settle for a price that is close to their
FACTORS INFLUENCING PRICING competitors. 2. Customary Pricing- Prices for certain
POLICIES commodities get fixed because they have prevailed
(1) Costs over a long period of time. 3. Sealed Bid Pricing-
In order to make a profit, a business should ensure Firms have to quote less price than that of
that its products are priced above their total average competitors. Tenders , winning contracts etc.
cost. In the short-term, it may be acceptable to price Value Based Pricing Policies: It is based on value to
below total cost if this price exceeds the marginal the customer. The methods are 1. Perceived- Value
cost of production – so that the sale still produces a Pricing: This is the method of judging demand
positive contribution to fixed costs. on the basis of value perceived by the consumer in
(2) Competitors the product. This method is concerned with setting
If the business is a monopolist, then it can set any the price on the basis of value perceived by the buyer
price. At the other extreme, if a firm operates under of the product rather than the seller’s cost.
conditions of perfect competition, it has no choice 2. Value Of Money Pricing: Price is based on the
and must accept the market price. The reality is value which the consumers get from the product
usually somewhere in between. In such cases the they buy. It is used as a competitive marketing
chosen price needs to be very carefully considered strategy.
relative to those of close competitors. SKIMMING PRICING: This is done with the basis
(3) Customers idea of gaining a premium from those buyers who
Consideration of customer expectations about price always ready to pay a much higher price than
must be addressed. Ideally, a business should attempt others. It refers to the high initial price charged
to quantify its demand curve to estimate what volume when a new product is introduced in the market.
of sales will be achieved at given prices For example, mobile phones which when introduced
(4) Business Objectives were highly priced.
Possible pricing objectives include: PENETRATION PRICING: The price charged for
• To maximize profits products and services is set artificially low in order to
• To achieve a target return on investment gain market share. Once this is achieved, the price is
• To achieve a target sales figure increased.
• To achieve a target market share Competitive pricing: The producer of a new product
• To match the competition, rather than lead the may decide to fix the price at competitive level. This
market is used when market is highly competitive and the
TYPES OF PRICING STRATEGIES product is not differentiated significantly from the
Cost Based Pricing Policies: Setting price on the competitive products.
basis of the total cost per unit. There are four PREDATORY PRICING: When a firm sets a
methods as follows: 1. Cost Plus Pricing- cost plus a very low price for one or more of its products
percentage of profit 2. Target Pricing- cost plus a pre with the intention of driving its competitors out of
determined target rate of return 3. Marginal Cost business.
ECONOMY PRICING: This is a no frills low product. This role is played by promotion. In the
price. The cost of marketing and manufacture are words of Masson and Ruth, ”Promotion consists
kept at a minimum. Supermarkets often have of those activities that are designed to bring a
economy brands for soups, spaghetti, etc. company’s goods or services to the favorable
Psychological Pricing. This approach is used attention of customers”.
when the marketer wants the consumer to PROMOTION MIX
respond on an emotional, rather than rational Firms select a mix of promotional tools to
basis. For example 'price point perspective' 99 cents effectively communicate with their target
not one dollar. customer group.
PRODUCT LINE PRICING. Where there is a The different elements of this group are:
range of product or services the pricing reflect the 1. Advertising
benefits of parts of the range. 2. Personal selling
Optional Product Pricing. Companies will attempt 3. Sales Promotion
to increase the amount customer spend once they 4. Public relations and
start to buy. Optional 'extras' increase the overall 5. Direct Marketing
price of the product or service. SALES PROMOTION
CAPTIVE PRODUCT PRICING: Where products According to American Marketing Association,”
have complements, companies will charge a those marketing activities other than personal
premium price where the consumer is captured. selling, advertising and publicity that stimulate
Product Bundle Pricing . Here sellers combine consumer purchasing and dealer effectiveness
several products in the same package. This also such as display, shows and exhibitions,
serves to move old stock. Videos and CDs are often demonstrations and various non-recurrent selling
sold using the bundle approach. effort in the ordinary routine.”
PROMOTIONAL PRICING. Pricing to promote OBJECTIVES
a product is a very common application. There1. Fast sales boost
are many examples of promotional pricing 2. Encourage trial
including approaches such as BOGOF (Buy One Get 3. Encourage repeat purchases
One Free). 4. Stimulate purchase of larger stocks
Geographical Pricing. Geographical pricing is 5. Gain distribution and shelf space
evident where there are variations in price in SALES PROMOTION TECHNIQUES
different parts of the world. For example rarity Consumer Money off, bonus pack,
value, or where shipping costs increase price. premiums, free sample,
PHYSICAL DISTRIBUTION promotion coupons,
In the words of Phillip Kotler, “Physical
distribution involves planning, implementing and Competitions, draws
controlling the physical flow of materials, and
final goods from the point of origin of use to
meet customer needs at a profit.” It involves the Techniques
coordination of activities to place the right quantity
of right goods at the desired place and time. A Trade promotion Price discounts, free
channel of distribution is an organized network or goods, incentives,
system of agencies and institutions, which, in allowance
combination, perform all the activities required to
link producers with users and users with producers to ROLE/ADVANTAGES OF SALES
accomplish the marketing task. PROMOTION
PROMOTION It helps to retains the existing customers
promotion means all those tools that a marketer uses It helps to create new customers.
to take his product from the factory to the customer It promote sales
and hence it involves advertising, sales promotion, It helps to enhance the goodwill of the firm
personal selling, and public relation. It is necessary to It helps to slashes down the cost
flow the information about the product from the It helps to face the competition
producer to the consumer either along with the MARKETING CONTROL
product or well in advance of the introduction of the
 It concerned with analyzing the performance of
marketing decision, identifying the problems and
opportunities and taking the actions to take
advantage of opportunities and resolving problems.
It is the sequel to mkting planning. All managers
need to exercise control over their decision and
marketing operations
TYPES OF CONTROL
1. Annual plan control(sales analysis, mkt share
analysis, mkting expense to sales analysis, financial
analysis, customer satisfaction)
2. Profitability control( help close monitor sales and
profit and expenditure)
3. Efficiency control( organization does micro level
analysis of the different elements of mkting mix
along with sales force, advertising, sales promotion
and distribution)
4. Strategic control( detailed and objected analysis of
organizations functioning and its potention to
enhance its mkting strength and opportunity)
MKTING CONTROL PROCESS
1. Decide the accept of mkting operations to be
evaluated
2. Establish measurement criterion
3. Establishing monitoring mechanism
4. Compare actual results with standards of
performance
5. Analysis performance improvement
MARKETING AUDIT
It is a systematic review and appraisal of the basic
objectives and policies of mktng function and of the
mktng organization methods, procedure and
personnel employed to implement those policies and
to achieve those course.
TYPES OF AUDIT
1. Mktng environment audit
2. mktng strategy audit
3. Mktng organization audit
4. Mktng system audit
5. Mktng productivity audit
6. Mktng function audit