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Marketing Management

Sub Code: 12MBA24

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Recommended Books

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1. Marketing Management: A South AsianPerspective- Kotler, Keller, Koshy & Jha, 13/e,

Pearson Education, 2012

2. Marketing : An Introduction- Rosalind Masterson

& David Pickton, 2/e, Sage Publications, 2010

3. Marketing Management- Ramaswamy V.S. &

Namakumar S, 4/e, Macmillan Publishers, 2011

4. Fundamentals of Marketing Management- EtzelM.J, B J Walker & William J. Stanton, 14/e,

TMH, 2012

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Reference Books

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Marketing Management: Rajan Saxena, 4/e,Cenage Learning

Marketing- Lamb, Hair, Sharma Mc Danniel, 1/e,

Cengage Learning, 2012

Marketing: Marketing in the 21st Century- Evans &

Berman, 2/e, Cengage Learning, 2005

Marketing: Planning, Implementation, and

Control- William M Pride, Ferrel O.C.,

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Modules to be covered

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Module 1: Introduction Module 2: Understanding Consumer Behaviour

Module 3: Market Segmentation, Targeting,Positioning & Branding

Module 4: Product Decisions, Packaging/Labeling

Module 5: Pricing Decisions

Module 6: Distribution Decisions

Module 7: Integrated Marketing Communications

Module 8: Marketing Planning, MarketingOrganisation, Marketing Audit.

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Introduction

Module 1

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Good Marketing is No Accident

The roaring success of

Tata Ace,a mini-truck

with the engine capacity

of less than one ton

launched by Tata Motors

in 2005, was due to a

deep understanding ofthe market needs and

customer requirements.

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Defining 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 withothers

More simply put, Marketing is the delivery of

customer satisfaction at a profit. In other wordsmarketing is meeting needs profitably.

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The American Market ing Associat ionoffers the fol low ing formal def in i t ion :

Marketing is an organizational function and aset of processes for creating, communicating,and delivering value to customers and formanaging customer relationships in ways thatbenefit the organization and its stake holders.

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Evolution Of Marketing

Tribes Barter System

Industrial

Revolution

Relationship Era Production Era

Marketing Era Sales Era

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What is Marketed? Goods Services

Events

Experiences

Persons

Places

Properties

Organizations Information

Ideas

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Goods

GOODS:Physical goods constitute the bulk of most

countries production and marketing effort.

o Each year, Indian companies alone market

billions of fresh, canned, bagged, and frozen foodproducts and millions of cars, refrigerators,television sets, machines, and various othermainstays of a modern economy.

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Services

SERVICES: As economies advance, a growing proportion oftheir activities is focused on the production of services.

The U.S economy today consists of a 70-30 services-to-

goods mix. Services includes the work of airlines, hotels, car

rental firms, barbers and beauticians, maintenance andrepair people, as well as professionals working within or for

companies, such as accountants, bankers, lawyers,

engineers, doctors, software programmers, and

management consultants.

Many market offerings consist of a variable mix of goodsand services. At a fast-food restaurants, for example, the

customer consumes both a product and a service.

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Events

EVENTS: Marketers promote time-based events,such as major trade shows, artistic performances,and company anniversaries.

Global sporting events such as the Olympics or

World Cup are promoted aggressively to bothcompanies and fans. There is a whole professionof meeting planners who work out the details of anevent and make sure it comes off perfectlyaggressively to both companies and fans.

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EXPERIENCES: By Orchestrating several services andgoods, a firm can create, stage, and market experiences.

Walt Disney Worlds Magic Kingdom represents

experiential marketing :Customers visit a fairy kingdom, a

pirate ship, or a haunted house.

Experiences

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Persons

Celebrity marketing is a major business. Today, everymajor film star has an agent, a personal manager, and

ties to a public relations agency. Artists, musicians,

CEOs, physicians, high-profile lawyers and financiers,

and other professionals are also getting help fromcelebrity marketers.

Some people have done a masterful job of marketing

themselves think of Madonna, Oprah Winfrey, the

Rolling Stones, Aerosmith, and Michael Jordan,Management consultant Tom Peters, himself a master

at self-branding, has advised each person to become a

brand.

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Places

Cities, States, regions, and whole nations

compete actively to attract tourists, factories,

company headquarters, and new residents.

Place marketers include economicdevelopment specialists, real estate agents,

commercial banks, local business

associations and advertising and public

relations agencies.

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operties

PROPERTIES: are intangible rights of ownership

of either real property (real estate) or financial

property (stocks and bonds). Properties are

bought and sold, and this requires marketing.

Real estate agents work for property owners or

sellers or buy residential or commercial real estate.

Investment companies and banks are involved inmarketing securities to both institutional and

individual investors.

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Organizations

ORGANIZATIONS actively work to build a strong,favorable, and unique image in the minds of their

target publics. Companies spend money on corporate

identity ads. Philips, the Dutch electronics company,

puts out ads with the tag line Lets Make ThingsBetter.

In the United Kingdom, TescosEvery Little Bit Helps

marketing program has vaulted it to the top of the

supermarket chains in that country. Universities,museums, performing arts organizations, and non-

profits all use marketing to boost their public images

and to compete for audience and funds.

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Information

INFORMATION can be produced and marketed as aproduct. This is essentially what schools and

universities produce and distribute at a price to

parents, students, and communities. Encyclopedias

and most nonfiction books market information. Internetsearch engines such as Google, Wikipedia etc peddle

information.

The production, packaging, and distribution of

information is one of our societys major industries.Even companies that sell physical products attempt to

add value through the use of information.

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Ideas

IDEAS: Every market offering includes a basicidea. Charles Revlon of Revlon observed : In

the factory, we make cosmetics; in the store we

sell hope.

o Products and services are platforms for

delivering some idea or benefit.

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Nature, Scope and Importance

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Marketing is managing profitable customerrelationships. The basic objective of marketing is

to attract new customers my promising and

offering superior value and to retain and grow

current customers by delivering satisfaction. Building customer relationships based on

customer value and satisfaction is at the very

core of modern marketing.

Highly successful companies know that if they

take care of their customers, market share and

profits will follow.

Sound marketing is essential for the success ofever com an , whether lar e or small, lobal or

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Needs, Wants and Demand Needs Needs are the basic human

requirements. People need food, air, water,clothing, and shelter to survive. People also havestrong needs for recreation, education, andentertainment.

Wants Wants are the forms human needs takeas they are shaped by culture and individualpersonality characteristics. The need becomewants when they are directed to specific objectsthat might satisfy the need.

Demands When human wants are backed bypurchasing power and willingness to buy, theybecome demands. Demands are wants forspecific products backed by an ability to pay.

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Marketing Orientations

The Production Concept It holds that consumers will prefer products that are widely

available and inexpensive. Managers of production orientedbusinesses concentrate on achieving high production efficiency,low costs and mass distribution.

The Product Concept It holds that consumers will favor those products that offer

the most quality, performance, or innovative features.Managers in these organizations focus on making superiorproducts and improving them over time.

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The Selling ConceptIt holds that consumers and businesses, if left alone, will ordinarily

not buy enough of the organizations products. The organizationmust, therefore, undertake an aggressive selling and promotioneffort. The aim is to sell what they make rather than makewhat the market wants.

The Marketing ConceptThis concept emerged in the mid-1950s. Instead of a product-

centered, make-and-sell philosophy, business shifted to acustomer-centered,sense-and-respond philosophy. The jobis not to find the right customers for your products, but theright products for your customers. This concept holds that the

key to achieve organizational goals consists of the companybeing more effective than competitors in creating, delivering, and

communicating superior customer value to its chosen targetmarkets.

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The Holistic Marketing Concept:It is based on the development, design, and

implementation of marketing programs, processes andactivities that recognizes their breadth andinterdependencies. It recognizes that everything matters

with marketing- and that a broad, integrated perspective isoften necessary.

The 4 components of Holistic Marketing are:

1. Relationship Marketing

2. Integrated Marketing

3. Internal Marketing

4. Social Responsibility Marketing

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