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MarketingManagement
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COURSE
1. Overview Natureand scope ofmarketing
Customerorientedmarketing:
Various orientations to servethe customer
Transactions Vs Relationship marketing
2. Environment
Marketing Environment:Micro & Macro dimensions
Environment context ofmarketingin India
Indias consuming classes
3. Planning Marketing planning & Management
Marketing Strategy formulation
4. Research
Marketingresearch E-marketinginformation system
Measurement & Forecast ofthemarket offer.
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COURSE
5. Consumer Behavior:
Factors influencing buying behavior
Stages in buying
6. STP
Market segmentationandtargeting
Differentiationand positioning ofthemarket offer.
7. Product Management Productrelateddecisions, including brandingand
packaging.
New productdevelopmentand Product Life Cycle.
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COURSE
8. Pricing Decisions
Pricingdecisions intheoryand practice
Management of pricing: objectives and procedures
Methods of pricedetermination: cost, competition oriented,demand
Specific Pricingtactics
Initiatingandrespondingto Price changes
9. Promotional practices
Integratedmarketing communication
Advertising, personal selling, public relations, and sales promotion.
10. Placement Decisions
Channelmanagement
Physicaldistributionmanagement
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REFERENCE
KOTLER, KELLER, KOSHY and JHA:MarketingManagement (12th Edition: 2007) PearsonEducation
Additionallythe students areadvisedtoreadatleast one business dailyeveryday(Economic Times, Financial Express,Business Standard, and Business Line)and Business periodicals (Business India,Business Today, Business World).
Reading ofthe fortnightly4Ps iscompulsory; questions will be setintheexamination frommaterial publishedinthat periodical.
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Marketing
A socialandmanagerial process whereby
individualandgroups obtainwhatthey
needandwantthrough creatingandexchanging products andvalues with
others.
To understandthis defination, we
haveto studythe followingimportantterms.
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Value Satisfaction & Quality Products & Services
Needs, Wants & Demands
CoreMarketing concepts
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1- Need
Itis a state of feltdeprivation. Itincludes
basic physicalneeds for food, clothing, warm &
safety.
Social needs Belonging & affection.
Individual needs - Knowledge & selfexpression.Theseare basic humanmakeup & notinvented by
marketers.
Want The formtaken byahumanneedas
shaped by cultureandindividual personality.
Demand Humanwants thatare backed by
buying power.
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2- Products & Services
Products areanything that can be offered
to amarket forattention, acquisition, use or
consumptionthatmight satisfyawant orneed. It
includes physical objects ,services, persons
,places, organizations & ideas.
Services areanyactivity orbenefitthat one
party can offerto anotherthatis essentially
intangibleanddoes notresultinthe ownershipofanything.
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3 Value, Satisfaction & quality
CustomerValue : Thedifference betweenthevalues the customergains from owningandusinga productandthe cost of obtainingthe product.
Customer satisfaction : Theextends to whichaproducts perceived performancematches abuyers expectations. Ifthe products performancefalls short ofexpectations, the buyerisdissatisfied. If performancematches orexceedsexpectations, the buyeris satisfied ordelighted.
Total Quality Management : Quality can bedefinedas freedom fromdefects.
TQM means programs designedto constantlyimprovethe quality of products ,services &marketing process.
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4- Exchange, Transaction & Relationships
Exchange : Theact of obtainingadesired object
from someone by offering somethinginreturn.
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Transaction Vs Relationship Mkt.
Transaction Mkt. [Short Term]
A trade betweentwo parties thatinvolves atleasttwo things ofvalue, agreeduponconditions, atime ofagreementanda place ofagreement.
A transaction consists ofatrade ofvalues between
two parties like:- Monetarytransaction.
- Bartertransaction.
The basic objective ofthemarketeris to bringabout
aresponsemay bemorethan simply buying ortradinggoods and services.
Example: Politician Votes
Socialactiongroup Ideaacceptance
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Marketing consist ofactiontakento
obtainadesiredresponse fromatarget
audiencetowards some product,
service, idea orotherobject.
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Relationship Marketing: [Long-Term]
The process of creating, maintainingand
enhancing strong, value-ladenrelationships withcustomers and otherstake-holders.
Marketers needto buildlongtermrelationshipswithvalued customers, distributors, dealers and
suppliers.Theywantto build strongeconomic and socialconnections by promisingand consistentlydeliveringhigh- quality products, good service &
fairprices.Today, marketingis shifting fromtryingtomaximizethe profit oneachindividualtransactionto buildingmutually beneficialrelationships with
consumers and otherparties.
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Thegoal ofvery companyis to buildauniquecompanyasset calledaMarketing network.
A marketingnetwork consists ofthe companyandallits supporting stakeholders: customers,employees, suppliers, distributors, retailers, adagencies and others withwhomithas built
mutually profitable business relationships.Todaythe competitionis not between companiesbutratherbetweenwholenetworks, withthewinnerbeingthe companythathas built betternetworks.
The operating principleis simple: Buildagoodnetwork ofrelationships withkey stakeholdersand profits will follow.
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Need for Marketing Management
1- A growingemphasis on quality, valueand customersatisfaction.
2 - A growingemphasis onrelationship buildingandcustomerretention.
3 - A growingemphasis onmanaging business processandintegrating business functions.
4 - A growingemphasis onglobalthinkingandlocalmarket planning.
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5 - A growingemphasis on building strategic
alliances andnetworks.
6- A growingemphasis ondirect & online
marketers.
7- A growingemphasis on servicemarketing.
8 - A growingemphasis onhigh-techindustries.
9 - A growingemphasis onethicalmarketing
behavior.
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Distinction between Selling & Marketing
1 Selling focuses on servingtheneeds & interests of
the seller.2 - This lays emphasis on sellingwhata firmmakes.
3 - This believein producinggoods withoutidentifyingmarketing opportunities.
4 Its concernedwith convertingthe productinto cashnotwith standingthe post saledisappointment ordissatisfaction ofthe buyer. Thereis absence ofcustomerconsciousness.
5A sellers basic skilllies in coaxingthe buyerto buythe product orserviceanyhow.
6 The sellerdetermines what productis to beproduced. The product precedes the sellingeffort.
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MARKETING
ENVIRONMENT
SESSION 2
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Marketing Environment
Theactors and forces outsidemarketingthataffectMkt.Managers abilityto develop andmaintain successful
transactions withits target customers
.
TheMarketingenvironmentis madeup ofamicro-
environmentandamacro-environment.
Micro Environment
1- The Company: Indesigningmarketing plans Marketing
Managertakes the companys groups into account groups
suchas top management, finance, research & development
(R&D) ,purchasing, manufacturingandaccounting.
Alltheseinterrelatedgroups formtheinternalenvironment.
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MARKETING ENVIRONMENT
2 Suppliers: Suppliers areanimportantlinkinthecompanys overall customervaluedelivery system.
They providetheresources needed bythecompanyto produceits goods and services.
Suppliers problems like shortage, delay, laborstrikesand otherevents can cost sales in shortrunanddamagecustomersatisfactioninthelongrun. Increasein pricecanalso effectthe sales.
3 Marketing Intermediaries: Firms thathelp thecompanyto promote, sell & distributeits goods to finalbuyers, theyincluderesellers, physicaldistribution,marketing serviceagencies and financialintermediaries
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Manufacturers now facelargeandgrowingreseller
organizations. These organizations frequentlyhave
enough powerto dictateterms oreven shutthe
manufacturerout oflargemarkets.
4 Customers : The companyneeds to studyits
customermarkets closely.Thereare fivetypes of customermarkets:
a)- Consumer Market: consists ofindividuals and
households that buygoods and services forpersonal
consumption.
b)- Business Markets: Buys goods and services for
furtherprocessing or foruseintheirproduction
process.
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c)- Reseller Markets: Buys goods and services
to resellata profit.
d)- Government Markets: Consist ofgovt.agencies that buygoods & services to produce
public services ortransferthegoods and
services to others who needthem.
e)- International Markets: Consists of buyers,resellers, consumers, govt, etc. of other
countries.
f)- Competitors: TheMarketing concept states
thatto be successful, a companymust provide
greatercustomervalueand satisfactionthanits
competitors do.
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No single competitive Marketing strategy is best for allcompanies. Each firm should consider its own size andindustry position compared to those of its competitors.
g)- Publics: Any group that has an actual or potentialinterest in or impact on an organizations ability toachieve its objectives.
There are 7 types of publics:-
1. Financial Publics.
2. Media Publics.
3. Government Publics.4. Citizen action groups
5. Local publics
6. General Publics.
7.Internal Publics
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Macro Environment
The company and all of the other actors operate in alarger Macro environment of forces that shape
opportunities and pose threats to the company .There are six major forces in the companys macroenvironment.
1)- Demography: The study of human populations interms of size, density, location, age, gender, race,
occupation and other statistics.Some U.S terms in defining the population:
Baby boom - 1946-1964
Yuppies - Young urban professionals.
Bumpies - Black upwardly mobile professionals
Yummies - Young upwardly mobile mommies
DINKS - Dual income no- kids couples
DEWKS - Dual earners with kids
MOBYS - Mother older, Baby younger
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2)- Economic:
Factors that affect consumer buying power
and spending pattern.
The economic environment is filled with factors like market
pressures, trade cycle, boom or recession, general
economic conditions, needs and wants of customers etc.
These factors are of importance to markets as they affect
the saving & purchasing power.
3)- Technological:
Technological environment consists of
factors like manufacturing process, innovations and
inventions, changes & developments in & abroad.Technological changes effect the nature of production &
productivity levels. It can affect the growth of entire
industry
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4) Natural :
Natural resources that are needed as inputs
by marketers or that are affected by marketingactivities.
Marketers should be aware of the trends in the
natural environment like:
- Shortage of raw materials
- Increased pollution
- Increased govt. intervention in natural
resource intervention.
5)- Political : Laws, govt. agencies and pressure
groups that influence and limit various
organizations and individuals in a given society.
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6) Culture:
Institutions and other forces thataffectsocietys basic values, perceptions, preferencesand behavior. Peopleinagiven societymayholdmany beliefs andvalues. Theircore beliefs andvalues haveahighdegree of persistence.
Shifts in secondary cultural values:
The corevalues are fairly persistent, culturalswings do take place. Considertheimpact ofpopularmusic groups, movie personalities and
othercelebrities onyoung peoples hairstyle orclothing.
Marketers wantto predict cultural shifts in ordertospotnew opportunities orthreats.
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SESSION 3
CONSUMERBEHAVIOUR
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The mostThe most
importantimportant
thing is tothing is to
forecast whereforecast wherecustomers arecustomers are
moving, andmoving, and
be in front ofbe in front ofthem.them.
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Consumer Behavior
CB is the conduct orbehaviourthat consumers
exhibit beforethey purchasea product, duringthe purchase period, whileusingthat product
andevenafterthe producthas beenused.
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CONSUMER BEHAVIOUR
Factors affecting consumer behavior:
Thereareanumberof factors that
effectthe consumerbehavior, makehimbuy, whatto buy, wherehe buys andwhen
he buys.
Theseare Cultural factors, social
factors, personal factors, psychological
factors.
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1)- Cultural Factors:
Culturerefers to traditions , laws, rules,
conventions, beliefs, morals, customs and other
capabilities andhabits acquired byhuman
beings as amemberof society.
The basic elements of culturearevalues,
norms, symbols (e.g.language), folklore,
religions, ideas.
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CONSUMER BEHAVIOUR
1A. SUBCULTURE:
Withina culture, theremay be several
subcultures withtheirspecific beliefs,values, norms, folklore, traditions and
conventions being shared bytheir
members.
e.g.:Multi religious society
Multi caste society.
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1B. SOCIAL STRATIFICATIONS/ SOCIAL
CLASS:
Withina culture, thereexist social classes
i.e.groups withdifferent buyinghabits. Social Stratificationis beingdone onthe
basis oflevel ofeducation, occupation,
income, wealth.
A fewdecades back, the basis of social
stratificationwas caste system.
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Social classes refers to largegroups of
peoplerelativelyhomogeneous inaculture orsocietywho share similar
values, interests, life styles and behavior.
2.SOCIAL FACTORS:
Consist ofreferencegroups, family,
persons diverse socialroles and statuses
also have profoundinfluence onthebuying behaviorofthe consumer.
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2A. REFERENCE GROUPS:
A referencegroup is a small socialgroup
to whicha consumerbelongs oraspires to
belongandwhose beliefs, values, norms
and behaviorareaccepted byhim suchas
family, relatives, friends, colleagues, etc.
Suchgroups have powerfulinfluence on
theattitudeand buying behaviorof theirmembers.
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e.g. (a). A ladywouldliketo purchaseadress orany otherproductlike
mobile, cosmetics etc., whichhercolleagues inthe officehad brought.
(b).MTV culture.
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2B. FAMILY:
Familyis definedas two ormore peoplelivinginthe samehouseholdandrelatedby blood, marriage oradoption.
Notindividual, butanumberof familymembers maybeinvolvedinmakingpurchasedecisions.
Dependinguponthetypes of products to
be purchased, differentmembers ofafamilymay beinvolvedinmakingpurchasedecisions, differentmembers offamilymayassumedominaterole.
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2 C. ROLES AND STATUS :
Therole one plays as amemberofa
particularsocialgroup orthe status orthe
position oneholds inagroup also
influences the buying behavior.
A consumermakes purchasedecisionthat
he thinks reflects his roleand status.
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3. PERSONAL FACTORS:
Personal factors suchas- Age
- Occupation
- Economic circumstances- Life style orliving pattern
- Personality,
affectthe buying behaviorofa person.
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Thetype of clothes onewears,
Thekind ofmusic onelistens, Thekind of books onereads,
reflects Personal factors.
A persons self conceptalso influences hisbehaviori.e.whathethinks ofhimself.
e.g.:the self concept ofa personmaybethat
heis sober. Hewill buy simple & sobercolored clothes & wouldneverliketo wear
outlandishdress.
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4.PSYCHOLOGICAL FACTORS
4a.Motivation:
Theword motivation has beenderived fromtheword motives.
Motiveis thatwhichmoves thewillto actinaparticularway.
Thesemotives maybe ones needs, wishes,purposes, objectives and capitalgoals.
Theyactas thedriving forces whichimpelapersonto acttowards fulfillingthem.
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4b. Perception:
Perceptionmeans theways a persons or
anindividualinterprets a situation,
information ormessageand forms an
opinion.
Different persons mayhavedifferentperception forthe sameinformation or
message.
Therearethree perceptional processesandanunderstanding ofthese canhelp in
predicting consumerbehavior:
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4.b.(i) Selectiveattention ornoticeability:
Itmeans that peoplenotice onlywhat
interests them oris relatedto theirneeds.
Marketers should striveto transmitthose
messages that catchtheattention of
prospective consumers.
4b.(ii) Selectivedistortion:
Itis a process inwhichthe person
manipulates ortwists theinformation ormessages inawayhelikes it.
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Hedraws a personalmeaningandinterprets itaccordingto his preconceived
notions.4b.(iii) Selectiveretention:
Humanmindhas alimitedand short
memoryand peoplerememberonlythosemessages which supporttheirattitudesand beliefs.
Marketing should sendthosemessages
whichreinforcethe beliefs andattitudes ofthetargetmarketandget favorableandpositiveresponses.
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PROCESS OF CONSUMER DECISIONS
Thedecision process is as follows:
1.NEED RECOGNITION2.SEARCH FOR INFORMATION
3.ALTERNATIVE EVALUATION
4.ACTUAL PURCHASE
5.FINAL OUTCOME
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Consumers buyingdecision process is a
process inwhicha consumerdecides
whethera product orservicewillmeetaneed orwantwellenoughto warrant
purchasingandusingit, when, whereand
howto make purchaseanddeterminessatisfaction obtained fromthe purchase.
Researches have proposeda five stage
decision process , howeverthis process is
notapplicablein case of purchase ofitems
ofeverydayuseandimpulsive buying:
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STAGE 1: Needrecognition:
The first stageinthe buying process is that of
theawareness oftheneedi.e.whena person
feels deprived of something, recognizes need of
itandwants to buyit. Themarketerneeds to identifythe stimulithat
wouldtriggertheneedarousal.
Themarketershoulddevelop suchinformation
ormessagethatmay stimulate consumerinterest.
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STAGE 2: Search forInformation:
Aftera consumer feels aneed, hewouldneedinformationwhich products orbrandswould satisfythatneed.
Needrecognitionis followed by search forinformationaboutthe product.
The sources forsuchinformationaboutproducts, theirbenefits anduses maybe
advertisingin-storedisplays, salespackages, sales persons orpersonalsources like opinion of friends, relatives,
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Colleagues and other.
Itis intheinterest ofthemarketers toidentifythe sources ofinformationthat
couldinfluencethe buying behaviorofthe
consumer.
STAGE 3: Evaluatingthealternatives:
Whilegatheringinformationabouta
particularproduct , a personmay come
across anumberof brands availableinthemarket.
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A customerwould buy onlythat brand
whichhethinks offers a bettervalue forhis
money.
Consumers evaluate brands onthe basis
of productattributes and benefits, price,
distribution, utility functionetc. Marketers needs to identifymajorbuying
styles.
e.g. Is thetargetmarketmore sensitivetoprice oris itmore quality conscious.
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STAGE 4:Makingthe finaldecision
(Purchase Decision)
Takingthe finaldecisionis notaneasy
task.
Itmust bekeptinmindthatthereare so
many factors thatgo onto makeanimpactonthe buyer.
A personwillalways tryto minimizerisk
factors by purchasing products fromapopularbrand forwhichhehas received
favorableinformation.
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Attitudes of others and situational factors
maketheirpresence felt. favorableattitude
ofthe people closeto the buyerhas amajorinfluence ondecisionmaking.
STAGE5
: Post purchase Behaviors : The mainaim ofmarketingis to satisfythe
need ofthe customerandinthis context
thelast stage of buying process assumes
greatersignificance.
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A marketing should beinterestednot only
sellingthe product butalso showthatthe
Company cares and cares enoughinprovidingabsolute satisfactionanddelight
to the customer.
Howto achievethis objective?Itis done by studyingthe post purchase
behaviorofthe customerandaccordingly
providehim promptaftersales service.
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