Marketing

Management
 Course Handout
Course Objectives:
CO1: To understand the fundamental marketing concepts and the
processes that influences the market orientation of a firm.
CO2: To understand the role of marketing within the organization
CO3: To recognize the importance of marketing in the competitive
world
CO4: To analyze critically the marketing process and its
relationship with the environment within which it operates.
Books
Text Book:
 Kotler Philip, Kevin Lane Keller, Abraham Koshy,
Mithileswar Jha; “Marketing Management – A South
Asian Perspective”, Pearson Education India
Limited, New Delhi, 14 th Ed., 2013.
Reference Books:
• Ramaswamy, V.K. & Namakumari; “Marketing Management:
Indian Context, MacMillan, 1995, 2nd Ed.
• The Economic Times: Brand Equity section
• Marketing campaigns in print and Electronic media of various
companies
Content Structure

Understanding Marketing Management

• Defining Marketing for 21st Century
• Developing Marketing Strategies and Plans

Assessing market opportunities and customer value

• Scanning the Environment, Conducting Marketing
Research and Forecasting Demand
• Creating customer value and customer relationships
• Analyzing consumer markets
• Analyzing Business Markets
Content Structure

Choosing Value
• Identifying Market Segments and Targets
• Competitive Dynamics
• Crafting the Brand position
• Creating Brand Equity

Designing Value
• Setting Product strategy
• Designing and managing services
• Developing Pricing strategies and Programs
Content Structure

Delivering value
• Designing and Managing Integrated Marketing Channels
• Managing Retailing, Wholesaling and Logistics

Communicating Value
• Designing and Managing Integrated Marketing
Communications
• Managing Mass Communications
• Managing Personal Communications
Learning Outcomes

On successful completion of this course, it is

hoped that the participants will be able to
critically analyze and intelligently draw
inferences about the marketing strategies and
tactics of organizations.
Evaluation Scheme

Component Weightage Marks

Mid-term Examination 30 30
Project 20 20
Seminar 10 10
End-term Evaluation 40 40
Experiential Learning

Project based approach:

• Each student and/or group of 3 students will select a
fictional product or service that they would like to bring
to market. The student/ group then become the class
experts on the product, the company, and the industry in
which it operates. Students are encouraged to look up
articles about that industry in Business Magazines,
Business Journals, Business News articles in
newspapers, company press releases, Media and
Advertisement and communication websites.
Experiential Learning

• The students should use the Kotler text as guides for the
project and will work through the course work to
formulate the full marketing plan. The course work will
provide the basis for either presentations and/or a paper
that analyzes and evaluates the marketing program of
the chosen product. Your effort will be graded based on
the following criteria:
• Use of analytical marketing concepts learnt in the course
to analyze the company and its products.
• Degree to which information was sought and attained.
• Quality of critique of company’s marketing program.
• Quality of suggestions for future marketing.
• Quality of writing
Instructor Details

Dr. Arun Kumar

Assistant Professor, Department of Management
Studies
ABV-IIITM Gwalior

Contact Details:
 arunkumar@[Link]
 0751-2449739
 +91-9664205137
Questions for You

 What is your perspective on marketing?

Session Objectives

• Importance of Marketing
• Scope of Marketing
• Fundamental Marketing Concepts
• Changed Scenario of Marketing
• Tasks Necessary for Successful Marketing
Introduction

• Humanistic in nature
• More of American
• First newspaper ad appeared in 1652
• First brand on commodity
• 1900-1910 marketing text books appeared
• Marketing books have originally been given by…
Companies started adding
marketing as a department
• Conduct consumer research
• Finding leads
• Prepare brochure and promotions

Job opportunities that lie in today's environment

• CMO (Initially VP Marketing)
• Brand Managers
• Category Managers
• Market segment Managers
• Distribution channel managers
• Pricing , marketing communication, database, Internet
and social media, direct marketers
Introduction
Different Types of CEO:
• CEO (1P)
• CEO (4P) Marketing Plan
• CEO(STP)
• CEO(ME) Customer is a starting point

Customer Vs. Consumer

Defining Marketing for the 21st
Century
Importance of Marketing:
 Relation to operations, finance, HR and other business
functions
CEO and CMO
Major challenges revealed from a research study:
• Sustained and steady top line growth
• Customer loyalty/retention
 Even market leaders facing the challenging environment
 Marketing managers have to consider 4 P’s
 Avoid short term sales orientation and think for long term
skillful marketing
(Case 1: Xerox)
(Case 2:Nirma Washing Powder, Karsan Bhai Patel)
Scope of Marketing

What is marketing?

AMA Definition: It is an organizational function and a

set of processes for creating, communicating and
delivering value to customers and for managing
customer relationships in ways that benefit the
organization and its stakeholders.

“Meeting needs profitably.”

Scope of Marketing (contd.)
Social and managerial aspects of marketing

Selling is only the tip of the marketing iceberg

The art and science of choosing target markets and

getting, keeping and growing customers through
creating, delivering and communicating superior
customer value is marketing management.

Success of companies because of timely availability of

products/services: Apple, Sony
 Case
TATA Motors ACE Success Story:
 Dominance of 3-wheelers
 Using already manufactured parts
 Small is Big
 Big on Technology. Small in size.
 15-20% high price tag
 Tata certified service points
 Launched in Sri Lanka and Nepal
 Tata Ace to come in a new avatar
 Crosses 2-million-milestone in 12 years
The Ace platform since the launch in 2005 has so far
rolled out 15 variants, based on engine type, engine
power and body configurations.
What is marketed

 Goods
 Services
 Events
 Experiences
 Persons
 Places
 Properties
 Organizations (Philips: Sense and Simplicity)
 Information (Siemens medical systems)
 Ideas
Who markets

Marketers and prospects

•Responsibility of Demand Management

Demand states:

Negative, non-existent, latent, declining, irregular,

full, unwholesome
Markets
A Simple Marketing System
Key Customer Markets
• Consumer Markets
• Business Markets
• Global Markets
• Non profit and Governmental Markets

• MARKETPLACES
• MARKET SPACES
• METAMARKETS

Rural Marketing: South Asia

Marketing in Practice

 Interdepartmental coordinated effort

 Holistic assignment

Key functions of CMO:

• Strengthening the brands
• Measuring marketing effectiveness
• Customer need based new product development
• Gathering meaningful customer insights
• Utilizing new marketing technology
Core Marketing Concepts

 Needs, wants and demands

• Stated needs
• Real needs
• Unstated needs
• Delight needs
• Secret needs

 Target markets, positioning and segmentation

• Demographic, psychographic and behavioral
differences (Case: Bangladesh Grameen Bank)
Core Marketing Concepts
(contd.)
 Offerings and brands
• Value proposition
• Strong, favorable and unique
• McDonalds
 Value and satisfaction
• QSP (Customer value triad)
 Marketing channels
• Communication channels
• Distribution channels
• Service channels
Core Marketing Concepts
(contd.)
 Supply chain
• Value sharing
• Expanding upstream and downstream

 Competition
• Substitute and rival products consideration

 Marketing environment
• Task environment
• Broad environment
The New Marketing Realities:
Major Societal Forces
 Network information technology
• Industrial age to information age
 Globalization
• Technological advances in shipping, transportation and communication
 Deregulation
• Indian domestic airlines
 Privatization
• British airways and British telecom (UK)
 Heightened Competition
• Extension in related product categories
 Industry Convergence
• Computing and consumer electronics
The New Marketing Realities:
Major Societal Forces (contd.)

 Consumer resistance
 Retail transformation
 Category killers
 Disintermediation & Reintermediation
• Amazon, eBay
• Pre clicks vs. brick and click
The New Marketing Realities:
New Consumer Capabilities
 Substantial increase in buying power
 Price and product attributes; reverse auction
 Greater variety of available goods and services
 [Link]
 Great amount of information about practically anything
 Newspapers; ratings; consumer reports
 Greater ease in interacting, placing and receiving orders
 24*7
 Ability to compare notes on products and services
 Social networking sites; [Link], [Link]
 Amplified voice to influence peer and public opinion
 Case of KFC and Kryptonite
The New Marketing Realities:
New Company Capabilities
Use of internet as a:
 Powerful information and sales channel
 Research
 Speedy internal and external communication
 Target marketing and two way communication
 Tailored advertisements
 Mobile marketing
 Differentiation (BMW)
 Blogs for communicating employees, customers and
public
 Improvement in purchasing, recruiting and training
The New Marketing Realities:
New Company Capabilities (contd.)
 Substantial saving for corporate buyers
 Online recruitment
Company Orientation toward
the Marketplace

 The Production Concept (Lenovo and Haier in China)

 The Product Concept
 The Selling Concept (make and sell)
 The Marketing Concept (sense and respond)
 Reactive and proactive marketing orientation

Marketing landscape has been

completely changed and being
very dynamic.
Holistic Marketing Dimensions
The Holistic Marketing Concept
 Relationship marketing
• Customers
• Employees R:C:P
• Marketing Partners
• Members of financial community
80:20:120
 Marketing Network
 Customer lifetime value
20:80:20
 Customer retention
 Cross-selling & up-selling
 Integrated Marketing
• 4 P’s as solution, value, information and access
• Coordinate to maximize joint effects
• Integrated communication
Integrated Marketing
The Holistic Marketing
Concept (contd.)
 Internal marketing
• First level consists of marketing functions
• Second level consists of holistic view of customer

 Performance marketing
• Sales revenue, brand and customer equity, ethics,
environment, legal, community
• Financial accountability
• Social responsibility marketing
• HP; Ben and Jerry’s environmental and social audit
Marketing Management Tasks

 Developing marketing strategies and plans

 Capturing marketing insights
 Connecting with customers
 Building strong brands
 Shaping the market offerings
 Delivering value
 Communicating value
 Creating long-term growth
Transition In Marketing

Name the
company you
will miss if it
disappears
Create a love
affair
 Insights
• Company promises the profit for now and for future too
• Fortune 500 list
• Delivering value and competition
• Which organization comes to your mind as the best one in
80’s and made a loss in 1993 (IBM)
• Future of the firm depends on delivering customer value
• B&N vs. Amazon Shift in customer values
• What to do for delivering customers value:
• Everybody’s business
• What makes you successful today may lead to failure tomorrow
Principles of marketing
• Selectivity and concentration
• Samsung withdrawing from low-end commodity oriented
channels
• Nestle (1500 to 400 brands)
• Vasan eye care initially as general healthcare clinic in 2001
• Customer Value
• Dell platinum council
• Differential advantage
• Apple is not for all Apple
• Customization: Dell Advertisement

• Integration
• New York Magazine new-subscriber promotion
• Coordination
• Guest historians
Lack of Coordination

Consultant: how come you are so interested in sales

forecasting?
Company official: Well, I have a sales forecasting department,
and since you were here, I thought I might learn something.
Consultant: That’s fine but tell me what's your position in the
firm?
Company official: Production director
Consultant: Oh, that’s little unusual. I would have though the
sales forecasting department might have been in marketing or
in sales.
Company official: Sure, they have one too. But we cant believe
a word they say, so we have to have our own.
 Power of Modern
Technologies
• Domino’s When two employees in Conover, North Carolina, posted a
YouTube video showing themselves preparing sandwiches while putting
cheese up their noses and violating other health-code standards, Domino’s
learned an important lesson about PR and brand communications in a
modern era.
• Once it found the employees—who claimed the video was just a gag and the
sandwiches were never delivered—the company fired them.
• In just a few days, however, there had been more than a million downloads
of the video and a wave of negative publicity. When research showed that
perception of quality for the brand had turned from positive to negative in
that short time, the firm aggressively took action through social media such
as Twitter, YouTube, and others.
 Case: [Link]

• [Link] has cooked up a winning online formula by

blending recipes posted by individuals with those provided by
corporations promoting their own products like Kraft cheese or
Campbell’s Soup.
• After almost a 50 percent increase in site visits and unique
visitors in 2009, the Web site overtook the Food Network’s
recipe site as the market leader.
• With tens of thousands of posted recipes, it thrives on people’s
willingness to share recipes and the satisfaction they feel if their
recipe becomes popular with others.
• The viral nature of the site’s success is obvious—it doesn’t
spend any money on advertising! Users tend to think of it as
“their” site—not something with a big company behind it.
Case: Heinz Customization

• Companies are increasingly allowing customers to

customize their products, such as with personalized
messages on the front labels of Heinz ketchup bottles.
Case: Royal Bank of Canada
• Thinking of its business in terms of customer segments rather
than product segments, Royal Bank of Canada (RBC) has put
each of its roughly 11 million clients into meaningful segments
whose profitability it can measure.
• In the process, it discovered a sizable sub-segment of customers
hidden within its broader categories of “wealth preservers” and
“wealth accumulators.” Dubbed “snowbirds,” these individuals
spent a number of months each winter in Florida, where they
were experiencing difficulties establishing credit as well as
missing their Canadian communities, particularly the familiarity of
the French-Canadian accent and fluency in French.
• To meet their unique needs, RBC created a Canadian banking
experience in Florida
FAQs
Developing
Marketing
Strategies &
Plans
Questions for You

 What is your understanding about marketing

strategies?
Session Objectives

How does marketing affect customer

value?
How is strategic planning carried out at
different levels of the organization?
What does a marketing plan include?
Developing Marketing
Strategies and Plans
 Marketing and customer value
 The Value Delivery Process
1) Traditional view of marketing (Shortage of goods)
Make the Product Sell the Product
2) Value creation and delivery sequence (more choices)

Choose value Provide value Communicate

value

Strategic Tactical
Marketing (STP) Marketing

Case: Nike
Developing Marketing
Strategies and Plans
3 V’s Approach:
 Value Segment
 Value Proposition
 Value Network

Marketing is nothing but a combination of:

 Defining value Mantra of Marketing
 Developing value
 Delivering value
CCDVTP
Product Management,
Brand Management,
Customer Management
The Value Chain (Porter)

Primary Activities Support Activities

• Inbound logistics • Firm infrastructure

• Operations • Technology development
• Outbound logistics • Human resource
• Marketing and sales management
• Service • Procurement

 Cost performance analysis and ways for improvement

 Benchmarking
Case: Cisco System
Core Business Processes
 Market-sensing process
 Gathering, Disseminating & Acting

 New-offering realization process

 Researching, Developing, Launching & Budgetary Consideration

 Customer acquisition process

 Defining and Prospecting

 Customer relationship management process

 Fulfillment management process

 Receiving, Approving, Shipping & Payment
 Core Competencies
 Reengineering work flows
 Supply chain management
 Traditional vs. modern view of owning resources
Important features
 Source of competitive advantage
 Applications in a wide variety of market
 Imitation difficulty
Case: Nike
 Competitive Advantage vs. Core Competencies
Case: Netflix
Business realignment may be a key for maximizing core
competencies. (Business Concept, Scope & Brand Identity)
Marketing Plan

• Practicalities
• Vision/Mission
• SWOT Analysis
• Competitor Analysis
• Customer Analysis
• Marketing mix
• Implementation
• Budgeting
• Monitoring and evaluation
 Start with the end in mind
(Business Plan vs. Marketing Plan)
• Corporate objectives
• 25% growth (revenue) in each of the next five years
• Marketing objectives
• Increase Rajasthan and Maharashtra Market share by 35%
• Grow average customer spend by 15%
• Marketing strategies
• Refocus product range on high margin items
• Introduce CRM systems
• Marketing Tactics
• Improve supplier agreements
• Conduct SEO
• Conduct advertising campaign online
Where are You Going
Vision
• Be a leading player by 2020 by having X number of
stores and employees
Mission
• Achieving a turnover of Y with Y% profitability by 2020
How are you going to get there
• New Marketing campaigns
• Complementary organizations support
• PR activities
• Educational events
• Social media
• Blogs etc.
Where You Are
Current performance and situation

How well you are performing

• Competitor analysis, financial analysis, what’s
contributing towards success/failure

What needs to change

• What’s holding you back
SWOT Analysis
Strengths:
• Reputation/Image
• Market share
• Communication effectiveness
Weaknesses:
• Cash flow
• Lack of Skilled workforce
• Employee motivation
Opportunities:
• Global presence
• Technological development
Threats: Global competition, currency
Market analysis

• The Indian automobile market is valued at X Million

Rupees
• Growing at X% per annum
• X number of companies in India
• Breakdown of products/services existing players offer
Competitor analysis
• Major competitors
• Customers of competitors
• Customers thinking
• What do they charge You get fresh, hot pizza
delivered to your door
• How do they position themselves
in 30 minutes or less or
• What is their USP it's free.

Domino's Pizza
What should I do:
• Website research
• Social media
• Set up channels to listen them on a regular basis
Customer Analysis
• Figuring out the target customers and getting insights
of existing customers
• Who are they
• Geographical pattern
• What do they buy form you
• How much they spend
• Lifetime value
• Duration of stay with you
• Why do you lose customers
• How did they find you
• What marketing methods work for them
Customer Analysis

• Build customer storyboards/ customer “Personas”

• KEY QUESTIONS:
• How many different personas you have
• Age groups
• Where do they shop
• What do they do
• What do they look alike
• Names
• Where do they spend their time (media preferences)
• How do they spend their leisure time
Customer Insights

• What problems they have

• What solution you can offer
• How you will convince to buy your brand
• How you make their life easier (TAM Model)
• How can you make the solution unique
• USP

The better you understand your market the more

targeted your marketing can be.
Marketing objectives

• Specific
• Measurable
• Attainable
• Relevant
• Time bound (eBay)
Example
• Increase the number of leads to 50 per month within 6
months
• Convert 25% of leads into new customers
• Increase the average spend by X%
• Increase the number of transactions from 2 to 4 per
annum in coming one year

Existing customers •New business development

•Nurture activity
•Repeat business
•Positive word of
moth/advocacy
New customers New business development
Mixing your marketing mix

• Google adwords
• Facebook
• Social media
• Email
• Google hangouts
• Leaflets
• Press
• Seminars
• Telesales
Marketing planning
Activity Description Target Size of Frequency Timeline
audience audience of activity
Other considerations
Budget and financial implications
• Materials/resources
• ROI
Organizational implications
• People/expansion
• Suppliers
• Resourced effectively
Test &
Tracking activities
• Google alerts
• Tracking codes
Learn
• Social network analytics
• Website analytics
Actions

• Write down your goals

• Do analysis
• SWOT
• Customer
• Competitor
• Build a picture of your marketing positioning
• USP
• Personas to target
• Figure out which channels will workout for your audience
• Figure out marketing messages (A/B testing)
• Action plans for each audience
Thanks
Some of the Slides for reference have been taken from
online resources provided by Pearson and Wiley
Publications.