NOTES

MARKETING MANAGEMENT (MGT-114)

UNIT – I: Nature and Scope of Marketing

1. Meaning of Marketing
• Marketing refers to all activities a company does to promote, sell, and distribute
products or services to consumers.
• It is a social and managerial process where individuals and groups obtain what they
need and want through creating, offering, and exchanging products of value.
• American Marketing Association (AMA) defines marketing as:
"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."

2. Core Concepts of Marketing

• Needs, Wants, and Demands:
o Needs: Basic human requirements (food, water, shelter).
o Wants: Shaped by culture and individual personality.
o Demands: Wants backed by purchasing power.
• Market Offerings:
o A combination of products, services, information, or experiences offered to a
market to satisfy a need or want.
• Value and Satisfaction:
o Customers form expectations and if the product meets or exceeds
expectations, they are satisfied.
• Exchange, Transactions, and Relationships:
o Exchange: The act of obtaining a desired object by offering something in
return.
o Transaction: A trade of values between two or more parties.
o Relationship: Building long-term connections with customers.
• Markets:
o The set of actual and potential buyers of a product or service.
3. Evolution of Marketing (Marketing Orientation)
• Production Orientation (Early 1900s): Focus on mass production and availability.
• Product Orientation: Focus on product quality and innovation.
• Sales Orientation: Aggressive sales techniques and promotion.
• Marketing Orientation: Understanding customer needs and wants.
• Societal Marketing Orientation: Balancing company profits, customer satisfaction,
and societal well-being.

4. Objectives of Marketing
• Satisfying customer needs and wants.
• Creating customer value.
• Building strong customer relationships.
• Earning profits for the company.
• Enhancing company reputation and brand image.
• Contributing to the welfare of society.

5. Importance of Marketing
• For Business Firms:
o Helps generate revenue.
o Provides competitive advantage.
o Aids in decision-making.
• For Customers:
o Provides information about products/services.
o Improves product quality and customer satisfaction.
• For Society:
o Creates employment opportunities.
o Raises the standard of living.
o Encourages innovation.
6. Functions of Marketing
1. Marketing Research – Understanding customer needs, market trends.
2. Product Planning and Development – Designing products as per customer needs.
3. Standardization and Grading – Ensuring product quality and consistency.
4. Packaging and Labeling – Attractive and informative packaging.
5. Branding – Creating a distinct identity.
6. Pricing – Setting an appropriate price.
7. Promotion – Advertising, sales promotions, public relations.
8. Physical Distribution – Logistics, transportation, warehousing.
9. Selling – Direct interaction with customers to sell products.

7. Scope of Marketing
Marketing is not limited to selling goods. It covers:
• Goods Marketing: Physical products (e.g., cars, clothing).
• Services Marketing: Intangible products (e.g., banking, hotels).
• Events Marketing: Marketing events like sports, concerts.
• Experiences Marketing: Offering memorable experiences (e.g., amusement parks).
• Persons Marketing: Promoting individuals like celebrities, politicians.
• Places Marketing: Promoting cities, states, countries for tourism or investment.
• Properties Marketing: Selling real estate and intellectual property rights.
• Organizations Marketing: Promoting organizations’ image.
• Information Marketing: Offering data and information (e.g., universities, research
institutes).
• Ideas Marketing: Promoting social ideas (e.g., environmental protection, anti-
smoking campaigns).

8. Approaches to the Study of Marketing

• Product Approach: Focus on what products are produced.
• Institutional Approach: Focus on marketing intermediaries like wholesalers and
retailers.
• Functional Approach: Focus on marketing functions such as buying, selling, storing.
 • Managerial Approach: Focus on decision-making and management activities.
• System Approach: Viewing marketing as a system with inputs, processes, and
outputs.

9. Modern Marketing Concepts

• Customer-Centric Marketing: Customer is at the center of all marketing activities.
• Integrated Marketing: Coordinated efforts across all departments.
• Relationship Marketing: Building long-term relationships with customers.
• Socially Responsible Marketing: Considering environmental and social impacts.

10. Difference Between Selling and Marketing

Selling Marketing

Focus on the needs of the seller. Focus on the needs of the buyer.

Aim is to sell what the company makes. Aim is to make what the market wants.

Emphasis on the product. Emphasis on customer needs and satisfaction.

Short-term focus. Long-term focus (building relationships).

Marketing Information System (MIS)

A Marketing Information System (MIS) is a structured, interactive system designed to
gather, analyze, store, and distribute relevant, timely, and accurate information to marketing
decision-makers. It helps managers make informed decisions by providing data from both
internal and external sources.
Components of MIS:
1. Internal Records System:
o Involves routine data from within the company (e.g., sales records, cost data,
inventory levels).
o Helps managers track performance, detect problems, and identify
opportunities.
2. Marketing Intelligence System:
o A set of procedures and sources used to gather everyday information about
developments in the marketing environment.
o Includes data from competitors, suppliers, customers, and media reports.
 o Example: Monitoring competitors’ advertisements or promotions.
3. Marketing Research System:
o Collects data for specific marketing problems through surveys, interviews,
focus groups, etc.
o Helps in decision-making related to product design, customer satisfaction,
pricing, and more.
4. Marketing Decision Support System (MDSS):
o A computer-based system that helps analyze data and support marketing
decision-making.
o Includes tools like statistical analysis, simulation models, and forecasting
techniques.

Summary
Marketing is a dynamic and comprehensive process that involves understanding customer
needs, creating value, delivering satisfaction, and building long-term relationships for the
overall benefit of the company, customer, and society.
UNIT – II: Understanding Consumer Behaviour and Market Segmentation

1. Meaning of Consumer Behaviour

• Consumer Behaviour is the study of how individuals, groups, or organizations
select, buy, use, and dispose of products, services, ideas, or experiences to satisfy
their needs and wants.
• It focuses on the psychological, social, and personal influences on buying decisions.

2. Importance of Studying Consumer Behaviour

• Helps understand what consumers want.
• Assists in product development and design.
• Aids in creating effective marketing strategies.
• Improves customer satisfaction and loyalty.
• Helps predict market trends and buying patterns.

3. Factors Influencing Consumer Behaviour

A. Cultural Factors
• Culture, sub-culture, and social class influence preferences and buying habits.
B. Social Factors
• Reference groups (friends, family, social networks), roles and status in society.
C. Personal Factors
• Age, occupation, income, lifestyle, personality, and self-concept.
D. Psychological Factors
• Motivation (Maslow's hierarchy of needs), perception, learning, beliefs, and attitudes.
4. Types of Consumer Buying Behaviour
Type Characteristics Example
Complex Buying High involvement, expensive or risky Buying a car
Behaviour purchases
Dissonance-Reducing High involvement, few differences Buying tiles or
between brands flooring
Habitual Buying Low involvement, few differences Buying salt or sugar
Behaviour between brands
Variety-Seeking Low involvement, significant differences Buying snacks or
between brands cold drinks

5. Consumer Decision-Making Process

1. Problem Recognition – Realizing a need.
2. Information Search – Gathering information.
3. Evaluation of Alternatives – Comparing options.
4. Purchase Decision – Making the actual purchase.
5. Post-Purchase Behaviour – Satisfaction or dissatisfaction.

6. Market Segmentation
• Market Segmentation is the process of dividing a broad market into smaller groups
of consumers who have common needs and preferences.
Importance:
• Helps in precise targeting.
• Efficient allocation of resources.
• Develops customer-centric products.
• Enhances competitive advantage.

7. Bases for Market Segmentation

A. Geographic Segmentation
• Based on location: country, state, city, climate, region.
B. Demographic Segmentation
• Based on age, gender, income, education, religion, family size, occupation.
C. Psychographic Segmentation
• Based on lifestyle, personality traits, values, social status.
D. Behavioural Segmentation
• Based on buying behavior: usage rate, loyalty, user status, benefits sought.

8. Characteristics of Effective Market Segmentation

• Measurable – Size and purchasing power can be quantified.
• Accessible – Can be effectively reached and served.
• Substantial – Large and profitable enough to serve.
• Differentiable – Distinct in response to different marketing strategies.
• Actionable – Can be effectively approached with a tailored marketing mix.

9. Targeting and Positioning (Brief Overview)

Targeting:
• Selecting one or more segments to enter.
• Strategies:
o Undifferentiated (mass marketing)
o Differentiated (segmented marketing)
o Concentrated (niche marketing)
o Micromarketing (individual or local marketing)
Positioning:
• Creating a distinct image or identity in the minds of the target audience.
• Uses positioning statements, taglines, and unique value propositions.

Summary
Understanding consumer behaviour helps in identifying what drives customer decisions,
while market segmentation allows businesses to target specific groups effectively. Together,
they form the foundation for a successful and customer-focused marketing strategy.
UNIT – III: Marketing Mix and Related Concepts

1. Meaning of Marketing Mix

• The Marketing Mix refers to the set of marketing tools that a company uses to
promote its brand or product in the market.
• It is often called a "combination of controllable variables" that the firm uses to
influence customer response.
• E. Jerome McCarthy introduced the concept of the 4Ps: Product, Price, Place, and
Promotion.

2. Elements of Marketing Mix (4Ps)

A. Product
• Refers to the goods or services offered by a business to meet consumer needs.
• Product decisions include:
o Product variety
o Quality
o Design
o Features
o Branding
o Packaging
o Services
B. Price
• The amount customers pay to acquire the product.
• Pricing decisions involve:
o Pricing strategies (penetration, skimming, competition-based)
o Discounts and allowances
o Credit terms and payment period
C. Place (Distribution)
• Refers to how the product is provided to the customer.
 • Place decisions include:
o Distribution channels (wholesalers, retailers)
o Market coverage (intensive, selective, exclusive)
o Inventory management
o Logistics and transportation
D. Promotion
• Refers to activities that communicate the product’s value to customers.
• Promotion mix includes:
o Advertising
o Sales promotion
o Personal selling
o Public relations
o Direct marketing

3. Extended Marketing Mix (7Ps for Services)

In the case of services marketing, 3 additional Ps are included:
E. People
• All people directly or indirectly involved in the service delivery (employees,
management, and even customers).
F. Process
• Refers to the flow of activities or mechanisms by which services are consumed.
G. Physical Evidence
• The environment in which the service is delivered (physical facilities, brochures,
online presence).

4. Importance of Marketing Mix

• Helps businesses meet customer needs effectively.
• Assists in creating a balanced and effective marketing strategy.
• Helps in allocating resources efficiently.
• Enhances customer satisfaction and builds brand loyalty.
• Provides a framework for evaluating marketing activities.
5. Factors Affecting Marketing Mix Decisions
• Internal Factors:
o Company objectives
o Financial resources
o Product nature
• External Factors:
o Competition
o Consumer behavior
o Government regulations
o Technological changes

6. Interrelation Between Marketing Mix Elements

• Product decisions affect price (e.g., a premium product justifies a higher price).
• Promotion depends on place (e.g., online stores use digital advertising).
• Price influences the perceived value of the product.
• The elements must work together to provide a unified marketing message.

7. Modern Concepts Related to Marketing Mix

A. Relationship Marketing
• Focus on building long-term customer relationships rather than just making sales.
B. Integrated Marketing Communication (IMC)
• Coordinating all promotional tools to deliver a clear and consistent message.
C. Green Marketing
• Marketing efforts aimed at promoting environmentally friendly products.
D. Digital Marketing Mix
• Applying 4Ps/7Ps strategies in the digital world through websites, apps, social media,
etc.
8. Product Mix Dimensions
• Width
• Length
• Depth
• Consistency
9. Product Life Cycle (PLC)
• Introduction
• Growth
• Maturity
• Decline
10. Total Marketing Strategy (TMS)
TMS is an all-encompassing approach combining product, promotion, price, and place
strategies to deliver superior value and achieve long-term success.

Summary
The Marketing Mix is the foundation of a company's marketing strategy. It combines
multiple variables (Product, Price, Place, Promotion) that work together to meet customer
needs, maximize customer satisfaction, and achieve organizational goals.
The modern marketing mix also considers People, Process, and Physical Evidence,
especially for services, making marketing more comprehensive and customer-focused.
UNIT – IV: Marketing Organisation and Emerging Trends

1. Meaning of Marketing Organisation

• Marketing Organisation refers to the structure and arrangement of the marketing
department within a company.
• It defines the roles, responsibilities, authority, and relationships of people involved in
marketing activities.
• It ensures efficient planning, execution, and control of marketing strategies to achieve
business goals.

2. Objectives of Marketing Organisation

• Achieve marketing and business objectives efficiently.
• Allocate resources effectively.
• Coordinate marketing activities across departments.
• Improve communication within the company.
• Adapt to changes in the external environment.

3. Types of Marketing Organisation Structures

A. Functional Organisation
• Organized based on major marketing functions like advertising, sales, market
research, customer service.
• Suitable for small and medium-sized companies.
• Example: Separate managers for Sales, Advertising, and Customer Service.
B. Product-Based Organisation
• Structure based on specific products or product lines.
• Useful when the company has a wide range of products.
• Each product manager handles marketing for their respective product.
C. Market-Based (Customer-Based) Organisation
• Organised based on different market segments or customer groups.
• E.g., Different teams for corporate clients, individual customers, government buyers.
D. Geographical Organisation
• Structure based on different regions, states, or countries.
• Regional managers handle marketing activities in their respective areas.
• Useful for multinational companies.
E. Matrix Organisation
• Combination of two or more types (e.g., functional + product-based).
• Employees report to two bosses (functional head and product manager).
• Helps in handling complex and dynamic market environments.

4. Importance of Marketing Organisation

• Helps in efficient decision-making.
• Promotes specialization.
• Enhances accountability and performance.
• Enables quick adaptation to market changes.
• Helps in better customer satisfaction and retention.

5. Emerging Trends in Marketing

A. Digital Marketing
• Using internet platforms (websites, social media, email) to promote products/services.
• Digital tools like SEO, content marketing, influencer marketing are widely used.
B. Social Media Marketing
• Platforms like Instagram, Facebook, LinkedIn, YouTube used for targeted marketing.
• Engages customers through two-way communication.
C. Green Marketing
• Marketing products based on their environmental benefits.
• Focuses on sustainability, eco-friendly packaging, and social responsibility.
D. E-commerce and M-commerce
• E-commerce: Buying and selling through websites.
• M-commerce: Buying and selling through mobile apps.
E. Customer Relationship Management (CRM)
• Managing a company’s interactions with current and potential customers.
• Focus on customer retention, loyalty, and satisfaction.
F. Personalized Marketing
• Tailoring marketing messages to individual customer preferences.
• Example: Netflix recommendations, Amazon suggested products.
G. Artificial Intelligence (AI) in Marketing
• Use of AI for data analysis, chatbots, customer service, personalized content.
H. Content Marketing
• Creating valuable, relevant, and consistent content to attract and retain a clearly
defined audience.
I. Sustainability and Ethical Marketing
• Consumers prefer brands that are socially responsible and ethical.
• Companies highlight fair trade, ethical sourcing, and eco-friendly practices.

6. Challenges in Modern Marketing Organisation

• Rapid technological changes.
• Increased customer expectations.
• Managing multi-channel marketing.
• Data privacy concerns.
• Global competition.

Summary
A Marketing Organisation provides the structure for executing marketing strategies
effectively.
As the business environment changes, companies must embrace emerging trends like digital
marketing, personalization, and sustainability to stay competitive and customer-centric.