Module 01 •Introduction to marketing

managements
Introduction to Marketing
Management:
An Overview , Objectives,
Scope, and Significance
 Introduction to Marketing Management

In this presentation, we will explore the fundamentals of

marketing management, focusing on its objectives,
scope, and significance. Understanding these elements
is crucial for effective decision-making and strategic
planning in any organization.

Marketing management refers to the control and

operations of various marketing activities and the people
involved in those activities, such as managers, marketing
management professionals, contractors, and more.

OR

Marketing management is the process of planning,

organizing, and executing a company's marketing
activities to achieve business goals.
Objectives of Marketing Management

The primary objectives of marketing management include identifying customer needs, creating value, and
achieving organizational goals. By setting clear objectives, businesses can align their marketing strategies to
meet market demands effectively.
 Scope of Marketing Management

The scope of marketing management encompasses various activities

such as market research, product development, pricing strategies,
and promotional campaigns. Each aspect plays a vital role in
ensuring the success of marketing initiatives.
 Significance of Marketing
Management

Effective marketing management is significant as

it helps in building brand loyalty, enhancing
customer satisfaction, and increasing market
share. It serves as a foundation for sustainable
business growth and competitive advantage.
Market Research Importance

Conducting market research is essential for understanding

customer preferences and market trends. It enables businesses
to make informed decisions and tailor their marketing
strategies to meet the needs of their target audience.
Product Development Strategies

Product development is a critical component of marketing

management. It involves creating new products or improving
existing ones to satisfy customer needs and stay ahead of
competitors in the market.
Pricing Strategies Overview

Pricing strategies play a significant role in marketing

management. Businesses must consider factors such as cost,
competition, and customer perception to set prices that
maximize profitability while attracting customers.
Promotional Campaigns

Promotional campaigns are essential for creating awareness and driving

sales. Effective marketing management involves designing campaigns
that resonate with the target audience and leverage various channels
for maximum reach.
Challenges in Marketing
Management

Marketing management faces several challenges, including

rapidly changing market dynamics, evolving consumer behavior,
and technological advancements. Addressing these challenges is
crucial for maintaining relevance and effectiveness.
THE CORE CONCEPT
OF MARKETING
Marketing is a social & managerial
process by which individuals & groups
obtain what they need & want through
creating, offering & exchanging
products of value with others.

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1. NEEDS
Needs refer to the basic human requirements for
survival and well-being. These can include
necessities like food, shelter, clothing, and
healthcare. In a marketing context, identifying and
understanding customer needs is crucial for creating
products or services that fulfill those requirements.

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2. WANTS
Wants are desires or preferences for specific
products or services that go beyond basic needs.
While needs are essential, wants are driven by
individual preferences and can vary widely from
person to person. Successful marketers tap into
these wants to create appealing offers.

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DEMANDS
Demands arise when wants are supported by the
ability and willingness to pay for a product or
service. In other words, demand is the
combination of desire and purchasing power.
Marketers strive to stimulate and meet customer
demands through effective strategies.

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PRODUCTS
Products refer to tangible items or intangible
services that fulfill customer needs or wants.
They are at the core of marketing efforts.
Understanding the features, benefits, and unique
selling propositions of products is vital for
marketing success.

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UTILITY, COSTS &
SATISFACTION
• Utility represents the value that consumers derive
from a product or service. It can be categorized into
four types: form (physical characteristics), time
(availability when needed), place (availability where
needed), and possession (ease of ownership).
• Costs encompass the monetary and non-monetary
sacrifices made to acquire a product or service.
These can include the purchase price, time spent,
and effort expended. Effective marketing aims to
maximize utility while minimizing costs.
• Satisfaction reflects the level of contentment or
pleasure a customer experiences after using a
product or service. Satisfied customers are more
likely to become loyal and engage in repeat business.

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EXCHANGE, TRANSACTION
& TRANSFER

• Exchange is the act of obtaining a desired

product or service by offering something of
value in return. This mutual benefit is at the
core of all marketing activities.
• Transaction refers to the actual process of
exchanging products or services for money or
something of value. Transactions can be one-
time purchases or part of an ongoing
relationship.
• Transfer involves the transfer of ownership or
rights related to a product or service from the
seller to the buyer. This transfer is a key
element of any transaction.
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RELATIONSHIP &
NETWORK
• Relationship Marketing emphasizes building and

maintaining long-term relationships with customers. It

recognizes that repeat customers often contribute
more to a company's revenue than new ones.
• Networks represent the connections between

individuals, organizations, and entities within the

business environment. Strong networks can provide
valuable resources, information, and opportunities

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RELATIONSHIP &
NETWORK
• Relationship Marketing emphasizes building and

maintaining long-term relationships with customers. It

recognizes that repeat customers often contribute
more to a company's revenue than new ones.
• Networks represent the connections between

individuals, organizations, and entities within the

business environment. Strong networks can provide
valuable resources, information, and opportunities

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MARKET , MARKETING
& MARKETER
• Market is a group of potential buyers who share common
needs or wants and have the ability and willingness to make
purchases. Markets can be segmented based on various
criteria such as demographics, psychographics, or behavior.
Effective marketing involves identifying target markets and
tailoring strategies to meet their specific needs.
• Marketing is the process of planning, executing, and
managing activities that create, communicate, deliver, and
exchange value to fulfill customer needs and achieve
organizational goals. It encompasses a wide range of activities,
from market research and product development to advertising
and customer relationship management.
• Marketer refers to the entity (individual or organization)
responsible for creating, promoting, and selling products or
services. Marketers play a crucial role in understanding
customer needs and delivering value.
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PROSPECT

• Prospect represents a potential customer who has

shown interest in a product or service but has not yet
made a purchase. Marketers engage with prospects
through various marketing channels to convert them
into customers.

• Understanding these core marketing concepts is

essential for businesses and marketers to navigate the
complex landscape of consumer behaviour,
competition, and market dynamics. Successful
marketing strategies are built on a foundation of
meeting customer needs and creating value.
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The Production Concept

The production concept holds that customers will favour

those products that are widely available & low in cost.
Managers of production-oriented organizations
concentrate on achieving high production efficiency &
wide distribution coverage.

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The Product Concept
The product concept holds that
consumers will favour those
products that offer the most quality,
performance or innovative features.
Managers in these product-oriented
organizations focus their energy on
making superior products &
improving them over time.

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The Selling Concept
The selling concept holds that
consumers, if left alone, will
ordinarily not buy enough of the
organization’s products. The
organization must therefore
undertake an aggressive selling &
promotion effort.

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The Marketing Concept
The marketing concept holds that
the key to achieving organizational
goals consists in determining the
needs & wants of target markets &
delivering the desired satisfaction
more effectively & efficiently than
competitors.

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The Societal Marketing Concept.
The societal marketing concept holds that
the organization’s task is to determine the
needs, wants & interests of target markets
& to deliver the desired satisfaction more
effectively & efficiently than competitors in
a way that preserves or enhances the
consumer’s & society’s well-being.

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Marketing environment
The marketing environment refers
to all internal and external factors,
which directly or indirectly influence
the organization's decisions related
to marketing activities.
These factors can have a significant
impact on a company's marketing
strategies, decisions, and overall
success.
Types of Marketing
Environment
 Internal Environment

• Organizational Culture
The internal environment
refers to the factors and • Leadership and
conditions within an Management
organization that directly • Workforce
affect its operations,
culture, and performance. • Organizational Structure
These factors are generally • Resources
under the control of the
organization's management • Processes and
and leadership. Operations
 The external environment consists of
factors and forces outside the
organization that can significantly
impact its performance and strategic
decisions. These factors are generally
External beyond the organization's control but
Environme require careful analysis.

nt:
1. Microenvironment: The
microenvironment refers to the factors and
forces that operate closely around an
organization and directly affect its day-to-day
operations and interactions with
stakeholders. These factors are often
controllable to some extent and can be
influenced by the organization
 Customers
 Suppliers
 Competitors
 Intermediaries-distributors, wholesalers,
and retailer
2.Macro Environment:
The macroenvironment encompasses the broader
external factors and forces that are not within the
organization's control but can significantly impact its
overall performance and strategic decisions.
Economic Factors: Economic conditions like inflation
rates, interest rates, GDP growth, and consumer
spending patterns can affect consumer purchasing
power and demand for products and services.
Socio-Cultural Factors: Demographic trends, cultural
values, social attitudes, and lifestyle choices of the
target market can influence market behavior and
preferences.
Technological Factors: Advances in technology,
innovations, and industry trends can create new
opportunities and disrupt existing markets and
business models.
Political and Legal Factors:
Government regulations, laws,
trade policies, and political
stability can impact business
operations, trade, and market
entry strategies.
Environmental and
Sustainability Factors:
Concerns about environmental
sustainability, climate change,
and ethical practices can
influence consumer behavior and
regulatory requirements.
 BASIS FOR
COMPARISO MICRO ENVIRONMENT MACRO ENVIRONMENT
N

Meaning Micro environment is Macro environment refers to

defined as the nearby the general environment,
environment, under which that can affect the working of
the firm operates. all business enterprises.

COMPARIS Elements COSMIC, i.e. Competitors, PESTLE, i.e. Political,

ON
Organization itself, Economic, Socio-cultural,
Suppliers, Market, Technological, Legal and
Intermediaries and Environmental.
Customers.

Nature of Specific General

elements

Are these Yes, but to some extent only No

factors
controllable?

Influence Directly and Regularly Indirectly and Distantly

Environmental Scanning
Environmental scanning is a process used by organizations
to monitor their external and internal environments.

For the identification of opportunities and threats affecting the

business for making strategic business decisions.

The organization collects information regarding its environment

and analyzes it to forecast the impact of changes in the
environment.

This eventually helps the management team to make informed

decisions.
Importance of Environmental Scanning
Risk Opportunity
Strategic
Managemen Identificatio
Planning
t n

Competitive Customer Resource

Advantage Satisfaction Allocation

Long-term
Sustainabili
ty
Techniques for Environmental Scanning
SWOT
Analysis
 SWOT analysis is a
strategic planning
tool used by
organizations to
assess their internal
strengths and
weaknesses and
external
opportunities and
threats.
Strengths (S): These are the internal attributes, resources, and
capabilities that give an organization a competitive advantage.
• Strong brand reputation
• Skilled and motivated workforce
• Advanced technology and infrastructure
• Efficient operational processes
• Financial stability and resources
Efficient leadership
Weaknesses (W): These are internal factors that hinder an organization's
performance and competitive positioning. Recognizing weaknesses allows
organizations to address and mitigate these issues

• Limited resources
• Outdated technology
• High employee turnover
• Inadequate marketing strategies
• Lack of diversified product offerings
• Inefficient supply chain management
Poor Knowledge on Customer Trendz
No Online Presence
Opportunities (O)
Opportunities are external factors in the business environment
that can be beneficial the organization. Identifying opportunities
allows organizations to capitalize on favorable trends and
conditions.
• Emerging markets for expansion
• Changing consumer preferences
• Technological advancements that can improve operations
• Regulatory changes that favor the industry
• Growing demand for eco-friendly products
Threats (T): These are external factors that can potentially harm
an organization's performance or create challenges. Recognizing
threats helps organizations develop strategies to mitigate or
respond to these risks. Examples of threats might include:
competitive pressures
regulatory changes
Natural Disasters
Technological Disruptions: Rapid technological advancements can
disrupt traditional industries. For example, the rise of e-books and
digital media threatened traditional print publishing, forcing
publishers to adapt to digital platform
Benefits of Using SWOT
• Leverage Strengths: Use your strengths to your advantage. For
example, if you have a strong online presence, focus on digital marketing
strategies to reach a broader audience.
• Address Weaknesses: Work on improving areas of weakness. If
customer service is a weakness, invest in training and resources to
enhance customer support.
• Exploit Opportunities: Develop strategies to take advantage of
identified opportunities. If you notice a growing demand for eco-friendly
products, consider launching a sustainable product line.
• Mitigate Threats: Develop contingency plans to mitigate potential
threats. For instance, if a new competitor enters the market, you might
need to adjust your pricing or marketing strategies to remain
competitive.
 PESTEL
ANALYSIS
A PESTEL analysis or more recently
named PESTEL is a framework or tool
used by marketers to analyse and
monitor the macro-environmental
(external marketing environment) factors
that have an impact on an organization.
 it helps your organization
examine external factors that could
influence your organization’s
opportunities and threats
Political Factors: These factors encompass the influence of
government policies, regulations, and political stability. It
includes areas such as taxation policies, trade tariffs,
government stability, and political ideologies that can affect a
company's operations.
Economic Factors:. This includes factors like inflation rates,
exchange rates, economic growth or recession, interest rates,
and overall economic stability
Social Factors:. It involves analyzing factors like population
demographics, lifestyle trends, consumer attitudes and
preferences, and societal values.
Technological Factors: Technological factors focus on the impact of
technology on a business. This includes advancements in technology,
research and development (R&D) activity, innovation, and the pace of
technological change.
Environmental Factors: Environmental factors relate to the impact of
environmental issues and sustainability on a business. This includes concerns
such as climate change, environmental regulations, sustainability practices,
and consumer attitudes towards environmentally friendly products and
services.
Legal Factors: Legal factors involve the examination of laws and regulations
that can affect a business. This includes labor laws, health and safety
regulations, intellectual property laws, and industry-specific regulations.
Compliance with legal requirements is essential to avoid potential legal issues
and liabilities.
What is Marketing
Planning?

Marketing planning is a process that allows to

determine goals and develop marketing
strategies and techniques to achieve these
goals.
Market planning is the process of organizing
and defining the marketing aims of a company
and gathering strategies and tactics to achieve
them
Types of marketing
planning

Long-term marketing planning: Long-term

marketing planning is marketing planning for more
than one year. It is the top management's
responsibility. This marketing planning sets future
objectives and strategies.
For instance, the selection of a price policy, a
distribution channel and media advertising.
Short-term marketing planning: Short-term
marketing planning is marketing planning for less
than a year. The short-term plans help to solve
recurring issues.
 Assess the
Setting the resources
Objective available( Intern
al Analysis)

Evaluate the
opportunities
Plan the
and risks
marketing
present.
strategy.
(External
Marketing Analysis)

Planning
Process
6. Implement the
Budgeting marketing plan
and monitor it.
  Marketing implementation is the process
of executing a marketing strategy that
helps an organization meet its goals.

It involves
 setting objectives,
 action steps to achieve them,
 people responsible for each task,

Marketing  a timeline of completion,

 and resources available or required.
implementatio
n