Marketing Management

Course Instructor
Dr. Mohit Jamwal
Assistant Professor
Chitkara Business School
Discussion Questions
1. Why is marketing important?
2. What is the scope of marketing?
3. What are some fundamental
marketing concepts?
4. How has marketing management
changed in recent years?
5. What are the task necessary for
successful marketing management?
What is Marketing according to
you?
Marketing is the activity, set of
institutions, and processes for
creating, communicating, delivering,
and exchanging offers that have value
for customers, clients, partners,
and society at large.
Marketing management is the art
and science of choosing target
markets and getting, keeping, and
growing customers through creating,
delivering, and communicating
superior
customer value.
The Scope of Marketing
 Marketing is a societal process by which individuals and
groups obtain what they need and want through creating,
offering, and freely exchanging products and services of
value with others
 Marketing is different from Selling-------selling is not the
most important part of marketing! Selling is only the tip of
the marketing iceberg
Jobs

Profits Giving
Understanding Marketing Management
 Marketing creates demand for a product, which in turn drives
revenue
 Greater demand creates the need for companies to hire new
workers, while revenue (top line) contributes to a company’s
bottom line (profits), which allow the company to be more fully
engaged in socially responsible activities
 Many companies now have a Chief Marketing Officer (CMO) to
put marketing on a more equal footing with other C-level
executives such as the CFO and CIO
 Marketers must decide what features to design into a new product
or service, what prices to set, where to sell products or offer
services, and how much to spend on advertising, sales, the Internet,
or mobile marketing
What can be marketed?

• WWF’s Adopt a • https://www.youtube.com/w

Better Future atch?v=qYvMTWQyfvk
Campaign
• Air BnB made
possible by • https://www.youtube.com/
hosts campaign watch?v=aA6UaOAaJaI
• Google Search
ad • https://www.youtube.com/w
atch?v=gHGDN9-oFJE
 Questions

What type of entity is being marketed in this ad?

What marketing strategies are evident in the ad?

How does the ad appeal to the target audience?

 What is Marketed?
Persons • Experiences
• Events
• Properties
• Organizations
• Information
• Ideas

Goods
Places
Services
What is Marketed?
1. Goods: Companies market billions of fresh, canned, bagged, and
frozen food products and millions of
cars,refrigerators,televisions,machines,and other mainstays of a
modern economy

2. Services: Services include the work of airlines, hotels, car rental

firms, barbers and beauticians, maintenance and repair people, and
accountants, bankers, lawyers, engineers, doctors, software
programmers, and management consultants

3. Events: Marketers promote time-based events, such as major

trade shows, artistic performances, company anniversaries and
major sports events such as Olympics and World Cup
What is Marketed?
4. Experiences: A firm can create, stage, and market experiences.
Walt Disney World’s Magic Kingdom allows customers to visit a
fairy kingdom, a week at a baseball camp with retired baseball
greats, a four-day rock and roll fantasy camp, or a climb up Mount
Everest, Ferrari Park in Abu Dhabi, Talent Hunt Program by IPL
teams.

5. Persons: Personal branding----Artists, musicians, CEOs,

physicians, high-profile lawyers and financiers, and other
professionals all get help from celebrity marketers

6. Places: Cities, states, regions, and whole nations compete to

attract tourists, residents, factories, and company headquarters.
Place marketers include economic development specialists, real
estate agents, commercial banks, local business associations, and
advertising and public relations agencies e.g. Goa Tourism Festival
What is Marketed?
7. Properties: Properties are intangible rights of ownership to either
real property (real estate) or financial property (stocks and bonds).
They are bought and sold, and these exchanges require marketing.

8. Organizations: Organizations work to build a strong, favorable,

and unique image in the minds of their target publics. For instance,
Red Cross "Don’t Look Away" Campaign.

9. Information: The production, packaging, and distribution of

information are major industries. Information is essentially what
books, schools, and universities produce, market, and distribute at a
price to parents, students, and communities.

10. Ideas: Every market offering includes a basic idea.

Who markets?

Response
Attention
Purchase
Donation
Vote

Marketer Prospect
Who Markets?
 Marketers are individuals, groups, associations, companies,
etc. that seek a response, such as attention, a purchase,
donation, vote, etc., from another party which is called the
prospect
 Marketers are skilled at stimulating demand for their
products, but that’s a limited view of what they do
 Types of Demand

Unwholesome Declining

• Nonexistent
• Latent
Irregular • Full
Negative • Overfull
Types of Demand
1. Negative Demand – consumer’s dislike a product and may
pay to avoid
2. Nonexistent Demand – consumers are unaware of or
uninterested in the product or service
3. Latent Demand – There is no product on the market that
can satisfy consumer needs
4. Declining Demand – Consumers purchase a product less
and less frequently, or not at all. For example, the sale of
albums (vinyl and CD’s) are declining significantly
5. Irregular Demand – A product’s demand varies by time,
such as on a seasonal basis
Types of Demand
5. Full Demand – Consumers are buying all the products that
enter into the market
6. Overfull Demand – There are more buyers than product
available
7. Unwholesome Demand – Consumers are attracted to
products that have undesirable social consequences, such as
cigarettes or gambling.
 .1
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u r e Markets
F ig
Markets
 Economist describe a market as a collection of buyers and sellers
who transact over a particular product or product class
 There are five basic markets – Manufacturer, resource (financial,
labor, raw materials), intermediary (wholesalers, resellers, etc.),
consumer, and government.
 Marketers use the term market to cover various groupings of
customers. They view sellers as constituting the industry and
buyers as constituting the market
 They talk about need markets (the diet-seeking market), product
markets (the shoe market), demographic markets (the youth
market),and geographic markets (the Chinese market); or they
extend the concept to cover voter markets, labor markets, and
donor markets, for instance
 .2
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F Simple Marketing System
 Key Customer Markets
Global Markets

Consumer Market

Business Markets Government Market

Key Customer Markets
1. Consumer Markets: Companies selling mass consumer goods
and services such as juices, cosmetics, athletic shoes, and air
travel spend to end users
2. Business Market: Companies selling business goods and
services often face well-informed professional buyers skilled at
evaluating competitive offerings. Business buyers buy goods to
make or resell a product to others at a profit
3. Global Markets: Markets based on different market entry
strategies i.e. exporting, franchising, strategic alliances etc.
4. Non-Profit and Governmental Markets: Companies selling
to nonprofit organizations with limited purchasing power such as
churches, universities, charitable organizations, and government
agencies need to price carefully
MARKETPLACES, MARKETSPACES, & METAMARKETS

1.Marketplace – physical locations (such as retail store)

2.Marketspace – digital location (online retailer)
3.Metamarkets – (Northwestern University’s Mohan
Sawhney has proposed the concept ). The cluster of
complementary products and services related in consumers
mind, but spread across diverse set of industries.
 For Example: The automobile metamarket consists of
automobile manufacturers, new and used car dealers, financing
companies, insurance companies, mechanics, spare parts
dealers, service shops, auto magazines, classified auto ads in
newspapers, and auto sites on the Internet
Markets

Marketplaces Marketspaces

Metamarkets
 Core Marketing Concepts
Needs, Wants, and Demands Target Markets, Positioning,
and Segmentation

Offerings and Brands

Value and Satisfaction

 Core Marketing Concepts
Marketing Channels

Supply Chain

Marketing Environment
Competition
The New Marketing Realities
Globalization Communicate
Information w/Customer
Collect
Technology Information

Consumer Differentiate
Information Increased Goods
Competition
Who is Responsible for Marketing?
Entire Organization
Marketing Department

Chief Marketing Officer

(CMO)
Who is Responsible for Marketing?

 CMOs must have strong quantitative skills, to accompany

their qualitative skills. Must be entrepreneurial as well as
a team player
 However, the CMO nor the marketing department can be
solely responsible for marketing. It must be undertaken by
the entire organization
 David Packard of Hewlett-Packard is quoted as saying:
“Marketing is far to important to be left to the marketing
department.”
 Marketing Concepts

Quality Create, deliver, and

Innovation communicate value

Production Product Selling Marketing Holistic

Mass production
Unsought goods
Mass distribution
Overcapacity
Marketing Concepts

 The five distinct marketing concepts are: Production, Product,

Selling, Marketing, and Holistic
 These philosophies have evolved over time and began with the
production concept
 The evolution of a new marketing concept does not mean that all
companies are changing
 Many companies continue to operate under the production
concept
1. Production Concept: Under a production philosophy the
company will seek to mass produce products and to distribute them
on a wide scale. The belief is that consumers prefer products that
are widely available and inexpensive
 For Example: In China Legend Haier take advantage of country’s huge
and low cost labor force.
Marketing Concepts

2. Product Concept: The product concept proposes that consumers

prefer products that have higher quality, performance, or are
more innovative. Often, managers focus too much on the product
(a better mousetrap) but this does not always equal success
3. Selling Concept: It argues that members of a market will not
purchase enough product on their own so companies use the
“hard-sell” to increase demand. Typically used with unsought
goods such as insurance or cemetery plots, or when companies
face overcapacity
4. Marketing Concept: First emerged in the 1950’s and focuses
more on the customer with a “sense-and-respond” attitude.
Companies that have embraced the marketing concept have been
shown to achieve superior performance than competitors.
Marketing Concepts

5. The Holistic Marketing Concept:

 The holistic concept takes a philosophy that everything
matters in marketing
 Holistic marketing acknowledges that everything matters in
marketing—and that a broad, integrated perspective is often
necessary
 Broad components characterizing holistic marketing are:
(i) Relationship marketing
(ii) Integrated marketing
(iii)Internal marketing
(iv) and Performance marketing
 .3
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 (i) Relationship Marketing

Build long-term relationships

Develop marketing networks

(i) Relationship Marketing

 Relationship marketing seeks to build mutually beneficial,

long-term relationship with key constituents in order to earn
and retain their business
 The four key constituents are: customers, employees, partners,
and member of the financial community
 Attracting a new customer can cost five times as much as
retaining existing customers so building long-term
relationships makes financial sense for the company
 Marketing networks consist of the company and its supporting
stakeholders who have built a mutually profitable business
relationship
 Royal Bank of Canada has 11 millions of customers and serve them
on the basis of customer segments rather than product segments
(ii) Integrated Marketing

Create, communicate, and

deliver customer value
(iii) Internal Marketing
(iv) Performance Marketing

Social Responsibility

Financial Accountability
Holistic Marketing Dimensions
ii. Integrated Marketing:
 It holds that all activities undertaken by the company should
create, communicate, and deliver value
 Further, all new activities should take into consideration all other
marketing activities
 IM activities include IMC (Integrated Marketing
Communications) strategy, IMC (Integrated Marketing Channel
Strategy)
iii. Internal Marketing:
 Internal marketing is the task of hiring, training, and motivating
able employees to serve customers well
 You can’t promise excellent service if you can’t deliver excellent
service
 Internal marketing requires vertical alignment with senior
management and horizontal alignment with other departments
Holistic Marketing Dimensions
iv. Performance Marketing:
 Marketers must understand both the financial and nonfinancial
returns to a business and society from marketing programs
and activities
 It involves both Financial Accountability (in terms of market
share, brand image etc.) and Social Responsibility Marketing
 Financial accountability involves the justification of
marketing expenditures in terms of financial returns
 But they must also think about the ethical, environmental,
legal, and social aspects of their activities.
MARKETING Vs SELLING

Focuses on Customer’s needs Focuses on seller’s needs

Customer enjoys supreme importance Product enjoys supreme importance

Product planning and development High pressure selling to sell goods

To match products and markets.

Integrated approach to achieve long Term Fragmented approach to achieve

goals Immediate gains

Converting customer’s needs into Products Converting products into cash

Caveat vendor (let the seller beware) Caveat emptor (let the buyer beware)

Profits through customer satisfaction Profits through sales volume

 Nature of the Marketing
It’s all about EXCHANGE!

 Exchange as the focus - Exchange between parties:

 Exchanged “product” can be tangible goods, intangible

like services, ideas, people, places, anything of value.

 Marketers and markets are the partners in exchange.

Conditions for exchange:

 Exchange involves two or more parties.

 The parties participate voluntarily.

 Each party must have something of value to exchange.

 Parties must believe each will benefit from the exchange.

 The parties are able to communicate with one another.

Nature of Marketing

 Marketing is the guiding element of business

 Marketing and is the social science

 Marketing is the process oriented

 Marketing is a system

 Marketing is goal oriented

 Scope Of Marketing

Scope Of like branding, packaging, labeling, grading etc. and

expansiMarketing Study of consumer wants and needs. Study of
buyer behavior. Product planning and development. Pricing policies.
Distribution. Promotion. Consumer satisfaction, Marketing control.

Study of Consumer wants and needs :

These wants and needs motivate consumers to purchase goods and
services
Analysis of the behaviour pattern of the customers is helpful for
market segmentation and targeting.
Product Planning and Development :
Product planning covers the decisions on or contraction of existing
product lines
 Scope of the Marketing
DISTRIBUTION :
DISTRIBUTION: Goods are to be distributed at the minimum possible
cost, to the largest number of consumers.

PROMOTION It includes advertising, sales promotion and personal

selling. these promotional activities are very essential for the
accomplishment of marketing goal

CONSUMER SATISFACTION :
CONSUMER SATISFACTION In the modern world consumer is the king.
Thus every marketer should importance to consumer satisfaction.

MARKETING CONTROL Marketing also covers marketing control

through marketing audit and annual reports.
Marketing Myopia

• Marketing myopia is a term coined in 1960 by the late

Harvard Business School Marketing Professor Theodore
Levitt, describing the common mistake of prioritizing short-
term goals over long-term growth and prioritizing business
needs over customer needs.
• In other words, it’s shortsightedness expressed in two
dimensions:
1. Myopic businesses look inward, not outward
2. Myopic businesses look at the immediate future, not the
distant one
How does Marketing Myopia
impact businesses?
MyDoll Case Study

• The hypothetical ecommerce company MyDoll makes

and sells high-quality dolls for parents with decent
disposable income, with girls aged five to 12. The
company sets the short-term goal of introducing a new
doll to its collection and increasing market share in the
children’s toy market by 3% in the upcoming year.
Despite spending its entire marketing budget on a
marketing campaign for its new doll, Milly, the product
doesn’t catch on. To make matters worse, sales of its
other dolls also suffer, resulting in a market share loss
by year’s end.
Contd..
MyDoll decides it’s time to regroup. Although it’s strapped for
cash, it hires a marketing professional that specializes in its target
audience and market research and comes away with the following
actionable insights:
•Its target audience thinks dolls have little educational value and
enforce gender stereotypes. They want high-quality products with
educational value, and the demand for toys that enforce gender
stereotypes is down across all audience segments.
•Its target audience values diversity, inclusion, and ethical
business practices.
•Some consumers say they’re put off by the company’s name,
which is a homonym for a medicine that alleviates PMS
symptoms.
 What shall the company do
keeping in view the insights from
the market?
Thanks