UNIT-WISE DETAILED NOTES
(MBA – Marketing Management | D1PK101T)
UNIT 1 — Marketing Fundamentals
(8 Lecture Hours)
1.1 Meaning of Marketing
Marketing is a social and managerial process by which individuals and groups obtain what
they need and want by creating, offering, and exchanging value.
Key elements:
• Needs → basic human requirements
• Wants → shaped by culture & personality
• Demand → wants backed by purchasing power
1.2 Marketing Management
It involves planning, analyzing, implementing, and controlling marketing programs to
achieve organizational objectives.
Core Tasks of Marketing Management:
• Understanding customer needs
• Designing customer-value-driven strategies
• Building strong customer relationships
• Creating customer satisfaction and loyalty
1.3 Functions of Marketing
• Market research
• Product development
• Pricing
• Promotion
• Distribution
• Customer relationship management
• After-sales service
1.4 Company Orientations Toward the Marketplace
1. Production Concept – focus on mass production, low cost
2. Product Concept – focus on quality, innovation
3. Selling Concept – aggressive selling needed
4. Marketing Concept – identifying & satisfying needs
5. Societal Marketing Concept – balancing profit + consumer welfare + society
6. Holistic Marketing Concept – relationship, internal, integrated, performance
marketing
1.5 Sales vs Marketing
Sales Marketing
Focus on selling products Focus on customer needs
Short-term approach Long-term relationship
Emphasis on volume Emphasis on value
1.6 Customer Value
Value = Benefits received – Cost incurred
Higher perceived value → customer satisfaction → loyalty.
1.7 Marketing Myopia
Coined by Theodore Levitt.
Companies become "short-sighted" when they focus on the product, not the customer’s
need.
Example: Railways seeing themselves in “railroad business” rather than “transportation
business.”
1.8 Marketing Process
1. Understand marketplace
2. Design customer-driven strategy
3. Create integrated marketing program
4. Build relationships
5. Capture customer lifetime value
1.9 Ethics and Social Responsibility in Marketing
• Honest advertising
• Fair pricing
• Ethical data use
• Avoiding exploitation
• Sustainable marketing practices
UNIT 2 — Marketing Environment & Planning
(10 Lecture Hours)
2.1 Marketing Environment
The forces that influence an organization’s ability to serve customers.
A. Micro Environment (Internal + Near external)
• Company
• Suppliers
• Intermediaries
• Competitors
• Customers
• Publics
B. Macro Environment (PESTEL)
• Political
• Economic
• Social
• Technological
• Environmental
• Legal
2.2 SWOT Analysis
• Strengths
• Weaknesses
• Opportunities
• Threats
Used for strategic decision-making.
2.3 BCG Matrix
Used for analyzing product portfolio:
Category Meaning
Stars High growth, high share
Cash Cows Low growth, high share
Question Marks High growth, low share
Dogs Low growth, low share
2.4 Strategic Marketing Planning Process
1. Company mission
2. Situational analysis
3. Setting objectives
4. Strategy formulation
5. Marketing mix planning (4Ps/7Ps)
6. Implementation
7. Evaluation & control
2.5 Marketing Research
A systematic process of collecting, analyzing & interpreting data to support marketing
decisions.
Research Process:
1. Define the problem
2. Develop research plan
3. Collect information
4. Analyze results
5. Present findings
6. Make decisions
UNIT 3 — Consumer Behaviour & STP
(10 Lecture Hours)
3.1 Understanding Consumer Behaviour
It is the study of how individuals select, buy, use, and dispose of products.
Factors Influencing Consumer Behaviour
1. Cultural – culture, subculture, social class
2. Social – family, reference groups
3. Personal – age, lifestyle, occupation
4. Psychological – motivation, perception, beliefs
3.2 Types of Buying Behaviour
1. Complex buying behaviour
2. Dissonance-reducing buying behaviour
3. Habitual buying behaviour
4. Variety-seeking buying behaviour
3.3 Consumer Buying Decision Process
1. Need recognition
2. Information search
3. Evaluation of alternatives
4. Purchase decision
5. Post-purchase behavior
3.4 Black Box Model
• Stimulus → marketing & environmental factors
• Black box → buyer characteristics & decision process
• Response → purchase decision
3.5 Consumer vs Business Buying Behaviour
Consumer Business
Emotional decisions Rational & formal
Small purchases Large quantity purchases
3.6 Market Segmentation
Dividing markets into distinct customer groups.
Bases of Segmentation
• Geographic
• Demographic
• Psychographic
• Behavioral
3.7 Criteria for Effective Segmentation
• Measurable
• Accessible
• Substantial
• Differentiable
• Actionable
3.8 Targeting Strategies
• Undifferentiated
• Differentiated
• Concentrated
• Micro-targeting
3.9 Positioning
Creating a distinct image in the consumer’s mind.
Tools: Positioning map, value proposition.
UNIT 4 — Product and Pricing
(8 Lecture Hours)
4.1 Product Concepts
A product is anything that satisfies a need.
Product Levels (Kotler's 5 Levels)
1. Core benefit
2. Basic product
3. Expected product
4. Augmented product
5. Potential product
4.2 Product Classification
• Convenience goods
• Shopping goods
• Specialty goods
• Unsought goods
4.3 Product Mix
Includes product:
• Width
• Length
• Depth
• Consistency
4.4 Product Life Cycle (PLC)
Stages:
1. Introduction
2. Growth
3. Maturity
4. Decline
4.5 Services & Their Characteristics
• Intangibility
• Inseparability
• Variability
• Perishability
4.6 Branding & Brand Equity
Brand equity = Value a brand adds to a product.
4.7 Pricing Concepts
Price-setting must consider:
• Costs
• Competition
• Customer value
• Company objectives
4.8 Pricing Strategies
A. New Product Pricing
• Skimming
• Penetration
B. Product Mix Pricing
• Product line pricing
• Optional product pricing
• Captive product pricing
• Bundle pricing
C. Price Adjustment
• Discounts
• Allowances
• Segmented pricing
• Psychological pricing
UNIT 5 — Marketing Communications & Distribution
(9 Lecture Hours)
5.1 Marketing Communications
Tools used to communicate value to customers.
5.2 Importance of IMC (Integrated Marketing Communication)
Ensures all promotional tools deliver one consistent message.
5.3 Developing Communication Plan
1. Identify audience
2. Determine objectives
3. Design message
4. Choose media
5. Budget
6. Execute
7. Evaluate
5.4 Marketing Communication Mix
• Advertising
• Sales promotion
• Personal selling
• Public relations
• Direct marketing
• Digital marketing
• Influencer marketing
5.5 Distribution Channels
Paths through which products reach customers.
Types of Channels
• Zero-level (direct)
• One-level
• Two-level
• Multi-level
5.6 Functions of Channel Members
• Information
• Promotion
• Negotiation
• Ordering
• Payment
• Distribution
• Financing
5.7 Designing Distribution Channels
Consider:
• Market size
• Product nature
• Competition
• Company resources
5.8 Emerging Trends in Marketing
• AI-enabled marketing
• Digital transformation
• Influencer ecosystems
• Omni-channel distribution
• Sustainability marketing
CASE STUDY 01: Cocola Noodles Marketing in Bangladesh
Key Issues Identified
• High competition from Maggi and Knorr
• Need for strong brand recall
• Price-sensitive consumers
• Rural vs urban distribution gaps
Suggested Marketing Strategy
1. Segmentation & Targeting:
o Children (flavours)
o Budget-conscious families (value packs)
2. Positioning:
o “Tasty, affordable, trusted noodle brand”
3. Product Strategy:
o Introduce local flavours
o Improve packaging appeal
4. Pricing Strategy:
o Maintain competitive low pricing
o Offer ₹10 small packs
5. Promotion:
o Social media campaigns
o Cartoons/child influencers
o School promotions
6. Distribution:
o Deep penetration in rural areas
o More tie-ups with kirana stores
Exam-Ready Conclusion:
Cocola should strengthen brand visibility, competitive pricing, and rural distribution to
capture higher market share.
CASE STUDY 02: Mahindra Trucks & Bus – Building a Marketing Plan
Problem
Mahindra Trucks faced challenges entering a market dominated by Tata Motors & Ashok
Leyland.
SWOT Analysis
Strengths: Mahindra brand, service network
Weaknesses: Late entry, low brand trust in HCV
Opportunities: Demand for fuel-efficient trucks
Threats: Tough competition
Recommended Marketing Plan
1. Segmentation: Transporters, logistics firms
2. Value Proposition: “More mileage, lower operating cost”
3. Marketing Mix:
o Product: durable chassis, better mileage
o Price: competitive pricing + financing
o Promotion: driver training camps, trade shows
o Place: expand dealerships
Conclusion:
Focus on reliability, total cost of ownership, and strong after-sales service.
CASE STUDY 03: Dettol – Consumer Evaluations & Brand Extensions
Key Issues
• Multiple Dettol products: soap, liquid, sanitizer
• Need for consistent brand perception
Analysis
• Strong association with germ protection
• Consumers trust Dettol due to emotional and functional benefit
• Brand extensions (skincare, handwash) leverage safety image
Strategy
• Maintain core positioning (“100% Germ Protection”)
• Launch products aligning with hygiene trend
• Promote through healthcare professionals
Conclusion:
Dettol’s extensions succeed because they remain aligned with brand’s core value:
protection.
CASE STUDY 04: Babu Chettan’s Chayakkada – Consumer Behaviour
Issues
• Local tea shop with unique customer loyalty
• Understanding behavioural drivers
Behaviour Analysis
• Social influence: community feel
• Personal factors: affordability
• Psychological factors: habit, taste
• Cultural factors: local tradition of tea gatherings
Solution
• Maintain ambience
• Introduce combo snacks
• Loyalty offers
• Digital payments
Conclusion:
Success is due to emotional and habitual buying behaviour.
CASE STUDY 05: Baltika Breweries – Product-Line Pricing & Brand Positioning
Issues
• Multiple beer variants
• Price differentiation needed
• Competition from global brands
Strategy
• Premium line → premium pricing
• Economy beers → penetration pricing
• Clear brand identity for each variant
• Target youth through events & sponsorships
CASE STUDY 06: Apple iPhone – Will Apple Reduce Prices?
Analysis
• High price = premium brand identity
• Price cuts may dilute brand equity
• Competition from Samsung & Chinese brands
• Loyal customers value innovation more than price
Conclusion
Apple is unlikely to heavily reduce prices; instead, it may offer:
• Buyback schemes
• EMI financing
• Old-for-new exchange
CASE STUDY 07: Verity – Viral Marketing
Issues
• Brand using viral marketing for growth
• Need for consistent visibility
Strategy
• Use influencers & short videos
• Encourage user-generated content
• Gamified pro
IMPORTANT EXPECTED EXAM QUESTIONS WITH ANSWERS
UNIT 1 – Marketing Fundamentals
Q1. Define Marketing. Explain the core concepts of marketing.
Answer:
Marketing is a social and managerial process through which individuals and groups obtain
what they need and want by creating, offering, and exchanging value.
Core Concepts:
1. Needs, Wants & Demands
o Needs: Basic human requirements (food, safety).
o Wants: Shaped by culture (burger, pizza).
o Demand: Wants backed by purchasing power.
2. Market Offerings
o Products, services, ideas offered to satisfy needs.
3. Value & Satisfaction
o Value = Benefits − Cost
o Higher value leads to customer satisfaction.
4. Exchange & Transactions
o Marketing occurs when people exchange value for value.
5. Markets
o A market is a group of actual and potential buyers.
6. Customer Relationships
o Building long-term bonds through engagement and loyalty.
Q2. What is Marketing Myopia? Explain with example.
Answer:
Marketing Myopia, introduced by Theodore Levitt, refers to a short-sighted and inward-
looking marketing approach where companies focus only on their products rather than
customer needs.
Example:
Railway companies believed they were in the "railroad" business rather than the broader
"transportation" business. As a result, they failed to compete with airlines and road
transport.
Q3. Explain company orientations toward the marketplace.
Answer:
1. Production Concept – Focus on high production efficiency (e.g., Ford Model T).
2. Product Concept – Focus on quality and innovation (e.g., Apple).
3. Selling Concept – Aggressive selling to increase sales (e.g., insurance).
4. Marketing Concept – Start with customer needs and work backward.
5. Societal Marketing Concept – Balance profit, consumer welfare, and society (e.g.,
TATA, Patanjali).
6. Holistic Marketing Concept – Integration of all marketing activities (internal,
relationship, societal, performance).
UNIT 2 – Marketing Environment & Planning
Q4. Discuss Micro and Macro Environment with examples.
Answer:
A. Micro Environment (Internal forces)
1. Company – Culture, structure
2. Suppliers – Raw materials (e.g., Apple’s chip suppliers)
3. Intermediaries – Wholesalers, retailers
4. Competitors – Direct/indirect rivals
5. Customers – B2B, B2C, Govt buyers
6. Publics – Media, local community
B. Macro Environment (External forces)
1. Political – Govt regulations
2. Economic – Inflation, GDP
3. Social – Lifestyle changes
4. Technological – AI, automation
5. Environmental – Sustainability
6. Legal – Consumer protection laws
Q5. Explain the Marketing Research Process.
Answer:
1. Define problem
2. Develop research plan
3. Collect data
o Primary: surveys, interviews
o Secondary: reports, journals
4. Analyze the data
5. Present findings
6. Make marketing decisions
Q6. What is the BCG Matrix? Explain with examples.
Answer:
BCG Matrix is used to analyze product portfolios.
Category Meaning Example
Stars High growth, high share iPhone
Cash Cows Low growth, high share Microsoft Office
Question Marks High growth, low share Electric scooters
Dogs Low growth, low share DVD players
UNIT 3 – Consumer Behaviour & STP
Q7. Explain the Consumer Buying Decision Process.
Answer:
1. Need Recognition
2. Information Search
3. Evaluation of Alternatives
4. Purchase Decision
5. Post-Purchase Behaviour
Example: Buying a mobile phone.
Q8. What is STP? Explain segmentation, targeting, and positioning.
Answer:
1. Segmentation:
Dividing market into groups (geographic, demographic, psychographic, behavioral).
2. Targeting:
Selecting segment(s) to serve (undifferentiated, differentiated, concentrated).
3. Positioning:
Creating a distinct image in customer's mind.
Example: Volvo → “Safety”
UNIT 4 – Product & Pricing
Q9. Describe the Product Life Cycle (PLC).
Answer:
1. Introduction – high cost, low sales
2. Growth – increasing sales, profit
3. Maturity – maximum sales, competition
4. Decline – sales fall, product outdated
Example: CDs, DVDs.
Q10. Explain New Product Pricing Strategies.
Answer:
1. Market Skimming
o High initial price
o Used for innovative products (Apple).
2. Market Penetration
o Low price to enter mass market
o Used by Jio in India.
UNIT 5 – Marketing Communications & Distribution
Q11. What is Integrated Marketing Communication (IMC)?
Answer:
IMC ensures all marketing communication tools (ads, PR, digital marketing, sales promotion)
deliver a consistent and unified message across channels.
Importance:
• Builds strong brand image
• Improves communication efficiency
Q12. Explain the types of distribution channels.
Answer:
1. Zero-Level (Direct) – Manufacturer → Customer
2. One-Level – Manufacturer → Retailer → Customer
3. Two-Level – Manufacturer → Wholesaler → Retailer → Customer
4. Multi-Level – Includes agents, brokers
CASE STUDY ANSWERS (FULL SOLUTIONS)
CASE 1: Cocola Noodles – Marketing Strategy
Problems Identified:
• High competition
• Low brand awareness
• Price-sensitive consumers
Analysis:
• Needs stronger positioning
• Requires improved distribution
• Should leverage social media
Solution:
1. Segmentation: children, youth
2. Targeting: budget families
3. Positioning: “Affordable Tasty Noodles”
4. 4Ps Strategy:
o Product: new flavors
o Price: value packs
o Place: kirana stores & rural areas
o Promotion: TV ads, influencers
CASE 2: Mahindra Trucks – Building Marketing Plan
Issues:
• Dominated market by Tata and Leyland
• Need for brand trust
Suggested Plan:
• Offer superior mileage
• Driver training programs
• Service centers expansion
• Competitive pricing with financing options
CASE 3: Dettol Brand Extensions
Key Issues:
• Need to maintain brand identity across products
Analysis:
• Strong association with hygiene
• Extensions: soap, sanitizer, handwash
Answer:
Dettol successfully uses umbrella branding focused on germ protection.
CASE 4: Babu Chettan’s Chayakkada
Behaviour Factors:
• Social influence
• Habitual buying
• Taste preference
Answer:
Emotional attachment drives repeated buying.
CASE 5: Baltika Breweries – Pricing & Positioning
Solution:
• Premium segment → premium price
• Economic segment → penetration pricing
• Youth-focused marketing
• Clear differentiation among variants
CASE 6: Apple iPhone – Pricing Decision
Conclusion:
Apple will rarely cut base price; instead it uses:
• Exchange offers
• EMI
• Buyback schemes
…to maintain brand premium.
CASE 7: Verity – Viral Marketing
Solution:
• Influencer marketing
• Short-form videos
• Memes
• User-generated content
• Emotional storytelling