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CHAPTER - 11

Marketing
Management
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MARKETING
Marketing is a process
whereby people exchange
goods and services for
money or for something of
value to them.
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Needs & Wants Creating a Market

Marketing involves Offering
satisfying customer needs Market offering means
and wants better than the offering a product or service,
competitors. having given features like
size, quality, taste, etc. Features of
Marketing
Customer value Exchange mechanism
Purpose of marketing is to The process of marketing
generate customer value at involves exchange of goods
a profit. and services for money or
for something of value.
 Marketing Philosophies
Starting point Focus :
ct io n : Factory Quantity of
Produ
ep t product
Conc

Means : Ends/Objective : To
Availability and earn profits through
affordability of large volume of
product. production.
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Starting point Focus :

: Factory Quantity of
P ro d u c t product
Co n c e p t
Means : Continuous Ends/Objective : To
improvement in the earn profits through
product quality
quality of product
improvements.
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Starting point Focus : Pushing

the sale of
: Factory
Se l l i n g existing products

Co n c e p t
Ends/Objective : To
Means : Advertising,
earn profits through
personal selling and
increased volume of
sales promotion
sales.
 Focus : Pushing
Starting point
the sale of
: Factory existing products

a r k e t i n g
M Means : Advertising,
Ends/Objective : To

Co n c e p t personal selling and

earn profits through
increased volume of
sales promotion sales.

Pillars of the Marketing Concept:

i) Identification of market or customers.
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ii) Understanding needs and wants of customers
iii) Development of products or services for satisfying needs of the target market.
iv) Satisfying needs of target market
v) Doing all this at a profit.
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Starting point : Focus : Customer

Target market needs and society’s

Soc ie t a l and the society well-being

e tin g
Mark
Con ce p t
Ends/Objective :
Means : Integrated Customer
marketing satisfaction and
social welfare.
 Functions of Marketing
Gathering and To identify the needs of the customers and take various marketing decisions. This is
analysing market important to analysis of the available opportunities and threats as well as strengths
information and weakness of the organisation.

Marketing Plan to achieve the objectives for increasing the level of production, promotion of
planning products, etc.

Product designing It helps to make the product attractive to the target customers. A good design can
and development improve performance of the product.

Standardization Standardisation refers to producing goods of predetermined specifications which help in achieving
uniformity and consistency in the output. Grading is the process of classification of products into
and Grading different groups on the basis of quality, size, etc. It helps to realise higher price for high quality output.

Such as after-sales services, handling customer complaints, maintenance services, etc.

Customer
These services provide maximum satisfaction to the customers, help in repeat sales
support services and develop brand loyalty.

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Packaging and labelling : Packaging means Branding: Branding is the process Pricing of products: Pricing of
designing and producing the container or of giving a name or a sign or a
wrapper of a product. Labelling is the process products refers to the amount of
of designing the label and putting it on the symbol, etc. to a product. money customers have to pay to
package to provide information regarding the obtain a product.
product, its contents, method of use etc.

Promotion: Promotion of goods physical distribution:It includes Transportation: The means of

and services involves informing decision regarding physical carrying goods and raw materials
potential customers about the movement of goods from from producers to consumers.
firm’s product and persuading producers to consumers.
them to buy it.

Storage or Warehousing: The act of

storing products in order to create
time utility.
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MARKETING MIX
Marketing mix is the
combination of variables
chosen by a firm to prepare
its market offering.

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PRODUCT
Product means goods,
services, etc. which is Elem
MARK ents of
offered to the market ETING
for exchange. Product MIX
decisions include
branding, labelling
and packaging.
 Price affects the revenue
and profits of the firm.
Price Determining
Setting the
pricing the pricing
objectives strategies
Marketers have to
take several pricing
Determining Fixing a
decisions : the factors price
affecting
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It includes decision regarding physical
movement of goods from producers to
consumers.
It includes four major activities : PLAC
E/
Managing Inventory Order Processing PHYS
DISTR ICAL
Warehousing Transportation IBUTI
ON
It also includes decision
regarding the channels of
distribution such as retailers,
wholesalers, agents, etc.
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Promotion of goods and

Promotional Tools
services involves informing
1. Advertising
potential customers about the
2. Personal selling
firm’s product and persuading
3. Sales promotion
them to buy it.
4. Public relations

PROMOTION
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PRODUCT DECISIONS

BRANDING PACKAGING LABELLING

Bra nd ing is th e p ro ce s s
of giving a name or a
sign or a s y m bo l, etc . to
Branding
a product.
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BRAND
A brand is a name, sign, symbol, BRAND NAME
design used to identify the That part of a brand which can
products of one firm. be spoken, e.g., Asian paints,
Maggie and Uncle Chips.

BRAND MARK
That part of a brand that can be TRADE MARK
recognized only but cannot be A brand that is given legal
spoken, e.g., ‘Devil’ of Onida, etc. protection against its use by
other firms.
 Advantages of Branding
To the Marketers To the customer

a) Enables Marking product

a) Helps in Product
differentiation
Identification.
b) Helps in Advertising and
b) Ensures Quality
Display Programmes
c) Status
c) Differential Pricing
d) Ease in Introduction of
New product

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k a g i n g
P a c
me a n
g
s
n i n g a n d Packaging
d e s i
i n g t h e
r o d u c
p
i n e r o r
cont a
e r o f a
wrap p
u c t .
prod
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Levels of Packaging
Primary Secondary Transportation
Packaging Packaging Packaging

E.g. The tooth

paste E.g. The E.g. The
tube. The Cardboard box. It Corrugated box.
product’s is the additional For storage,
immediate layers of identification or
container. protection. transportation.
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Importance Functions
a) Rising Standards of
a) Product Identification
Health and Sanitation b) Product Protection
b) Self service Outlets c) Facilitating Use of the
c) Innovational Opportunity Product
d) Product Differentiation d) Product Promotion
 Functions of Labelling
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Labelling
1. It describes the product and specifies
Labelling is the
its contents, i.e., ingredients, net weight
process of
when packed, etc.
designing the label
2. It helps in grading of products into
and putting it on the
different categories
package to provide
information 3. It helps in promotion of products by
regarding the attracting attention.
product, its 4. It provides information required by law.
contents, method of 5. Indentification of the product or Brand.
use etc.
 If the objective is profit maximization or product quality, the
firm charges higher price for providing high quality products.
While if the objective is to obtain large market share or survive
in a competitive market, firm will charge the low price.

Pricing @deeceeline
objectives
Price should recover total
Quality of salesmen costs (fixed costs as well
employed, quality of Marketing as variable costs) plus a
advertising, the type of Product
methods cost profit margin.
packaging, etc. used FACTORS
DETERMINING
FIXATION OF
PRICE
Government fixes the price of When a firm does not face any
Government competition (under monopoly
essential commodities, e.g., and legal Competition
medicines. The Government situation), it can fix a higher
regulations
does not allow the firms to price. But when there is high
Utility and
charge a higher price. competition, a firm should fix
demand
lower price of its products.
The utility provided by the product sets the upper limit of
price.
When the demand is elastic, lower price of the product.
When the demand is inelastic, a firm can charge higher price.
 CHANNEL OF DISTRIBUTION
it refers to the firms and individuals that take title or help in the process of transferring the
products from the producers to the consumers.

Types of Channels @deeceeline

I. Direct channel II. Indirect channels

a) One level channel
b) Two level channel
c) Three level channel
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COMPONENTS OF PHYSICAL DISTRIBUTION
Order processing Transportation
Accurate and speedy
processing of orders is The means of carrying
important. Otherwise, goods and raw
goods would reach the materials from
customers late or in producers to
wrong quantity. consumers.

Warehousing Inventory Control

Higher the level of
The act of storing inventory, higher will be
products in order to the level of customer
create time utility. service but the cost of
carrying the inventory
will also be high.
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Promotion mix refers

to combination of CONC
promotional tools PROM E PT OF
OTIO
used by an N MIX

organisation to
achieve its marketing
objectives.
FEATURES @deeceeline
Impersonal form of communication, which is paid
for by the marketer to promote goods or services. ADVERTISING
PAID IMPERSONAL METHOD
FORM OF PROMOTION IDENTIFIED SPONSOR

Advertising is a There is no Advertising is

paid form of direct face-to- undertaken by
communication. face contact some sponsor
between the company who
buyer and the bears its cost
advertiser. also.
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Oral presentation of message with one
FEATURES
or more customers for making sales.

Personal Development
Form of Relationship
Direct face-to- with the
face dialogue customers
takes place which may become
between the important in
seller and the making sale.
buyer.
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Sales Public
Promotion Relations
Short-term incentives Variety of programmes
to encourage the designed to promote or
buyers to buy the protect a company’s
product e.g., Buy one image and its products
get one free, Free gift in the eyes of the
offers, Free sample public.
distribution 20% extra
etc.
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Thank You
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