SYLLABUS: MARKETING MANAGEMENT

Unit I Nature and Scope of Marketing, Selling v/s Marketing, Basic concepts and
approaches. Marketing Management Philosophies. Concepts of Holistic Marketing.
Unit II Market Segmentation, Targeting and Positioning, Marketing Mix, Marketing
Environment, Marketing System, Marketing Information System and Marketing
Research.
Unit III Product strategy, Product classification and product mix, Branding and
Packaging decision, Integrated marketing communication. Promotion mix:
advertising, publicity, selling, sales promotion and public relations.
Unit IV Pricing decision, Methods of setting prices, Pricing strategies, Product
promotion. Consumer behaviour and decision making.
Unit V Channels of Distribution, Factors affecting choice of channel, Types of
intermediaries and their roles. Types of Retailing. Retail Management, Internet
Marketing, Service and Non Profit Marketing
 REFERENCE BOOKS
 MARKETING MANAGEMENT by Philip Kotler,
 PRINCIPLES OF MARKETING by R L Nolakha,
 MODERN MARKETING by R S N Pillai & Bagavathi,
 MARKETING MANAGEMENT by Dr C N Sontakki,
 PRINCIPLES OF MARKETING by Kazmi S H H & Mahajan J P,
 MARKETING MANAGEMENT by Dutta Bholanath,
 MARKETING MANAGEMENT by Panda Tapan K,
 MARKETING MANAGEMENT by Rajan Saxena
 KEY TERMS
MARKET, MARKETING, INTEGRATED MARKETING,
CUSTOMER, CONSUMER, CONSUMERISM,
CONSUMER MOTIVATION, CUSTOMER
SATISFACTION, CONSUMER DELIGHT, CRM, NEEDS,
WANTS, DEMAND, MARKETING MIX, PRODUCT,
PRICE, PLACE, PROMOTION, ADVERTISING,
SELLING, SEGMENTATION, TARGETTING,
POSITIONING, RETAILING, BRANDING, PLC, USP,
MKIS
 MARKET: CONCEPT & CLASSIFICATION

 The concept of exchange leads to the concept of market.

 A market consists of all the potential customers sharing a
particular need or want who might be willing and able to
engage in exchange to satisfy that need or want.
 Originally the term market stood for the place where
buyers and sellers gathered to exchange their goods, such
as a village square.
 Economists use the term market to refer to a collection of
buyers and sellers who transact over a particular product
or product class; i.e. the housing market, the grain market,
and so on.
 CLASSIFICATION OF MARKET
 Local Market- When buyers and sellers are limited to an area or region then the
market is called local market.
 Regional Market- When buyers and sellers are concentrated to a certain
region/area. The area is wide then the local market
 National Market- When the demand of a commodity is limited the boundary of
the country.
 International Market- When the demand of a commodity crosses the boundary
of a country.
 Product Market- Where particular product is bought and sold. E.g. Agri product
sold in Agri market (krishi Mandi).
 Stock Market- Market where stock and shares, bond, securities debentures etc
are bought and sold.
 Bullion Market- Market where Silver and Gold are bought and sold. In this
market metallic trading takes place.
CONTINUED….

• Perfect Market- Where there is Homogeneous products, Free Entry and exit from
market of a firm. Perfect knowledge of market condition, and perfect mobility of
factors of production.
• Imperfect Market- Where perfect competition is not in existence. Number of
buyers and sellers are small. No perfect Knowledge of market conditions. There is no
single price in this market.
• Legal Market- Where legal Transactions of goods and services take place.
Recognized by the Govt. Also called fair market.
• Illegal Market- Where high prices are charged what have been fixed by the Govt.
Happens when supply is short. Business earn profits by indulging in Black Marketing,
Smuggling. Hongkong market is an illegal market.
 MARKETING: MEANING & DEFINITION

 Marketing is defined by the American Marketing Association as

"the activity, set of institutions, and processes for creating,
communicating, delivering, and exchanging offerings that have
value for customers, clients, partners, and society at large".
 Marketing is the process of interesting potential customers and
clients in your products and/or services. The key word in
this marketing definition is "process"; marketing involves
researching, promoting, selling, and distributing your products or
services.
 WHAT CAN BE MARKETED?

 Physical Products : Automobiles, Cell phone, Apparels, Footwear, Electronics-Television,

Refrigerator.
 Services : Banking, Insurance, Telecommunication, Health Care, Education, Online Trading.
 Ideas : Polio Vaccination, Swachh Bharat, Family Planning,
 Persons: Electoral Candidates Barack Obama, Narendra Modi or else
 Place : Incredible India, Goa Tourism, ‘Bhopal – ‘The City of Lakes’, ‘Mysore – The City of
Gardens’,
 Experience : Adventure sports, trekking etc.
 Properties : Intangible rights of ownership of real estate in financial property (Shares,
Debentures
 Events : Sports events (say Olympics, Cricket series), Handloom or handicraft exhibition,
fashion show, music concert, auto show, film festival, elephant race (Kerala Tourism).
 Information : Wikipedia, Investopedia, Google
 Organizations : P & G, Reliance, Wipro
 NEEDS, WANTS & DEMANDS
 A human need is a state of felt deprivation of some basic satisfaction. People
require food, clothing, shelter, safety, belonging, esteem and a few other
things for survival. These needs are not created by their society or by
marketers; they exist in the very texture of human biology and the human
condition.
 Wants are desires for specific satisfiers of these deeper needs. For example,
one needs food and wants a pizza, needs clothing and wants a Raymond shirt.
These needs are satisfied in different manners in different societies. While
people needs are few, their wants are unlimited. Human wants are continually
shaped and reshaped by social forces and institutions.
 Demands are wants for specific products that are backed up by an ability and
willingness to buy them. For example, many people want to buy a luxury car
but they lack in purchasing power. Companies must therefore measure not
only how many people want their products, but, how many would actually be
willing to buy and finally able to buy it.
 NATURE OF MARKETING

 Marketing is an Economic Function

 Marketing is a Legal Process by which Ownership Transfers
 Marketing is a System of Interacting Business Activities
 Marketing is a Managerial function
 Marketing is a social process
 Marketing is a philosophy based on consumer orientation
and satisfaction
 Marketing had dual objectives - profit making and
consumer satisfaction
 SCOPE OF MARKETING

 Study of Consumer Wants and Needs

 Study of Consumer behaviour
 Production Planning and Development
 Pricing Policies
 Distribution
 Promotion
 Consumer Satisfaction
 Marketing Control
 DIFFERENCE BETWEEN SELLING AND MARKETING

 Marketing is a broad concept. Selling is a narrower concept.

 Marketing starts much before and continues even after the product
is sold. Selling means providing the customer with the good he/she
needs in exchange of a price. Selling is more like an agreement
wherein the buyer receives the product in exchange for money.
 Marketing is about customer satisfaction. It starts with customer
needs and demand and ends with customer satisfaction. It is a
customer oriented approach. Sales, on the other hand, is about
selling what the company produces. It doesn’t care about the need
of the customer but about the profits.
 DIFFERENCE BETWEEN SELLING AND MARKETING

 Marketing is about providing quality products and consumer

satisfaction. Selling is about generating by maximising sales and is
a money oriented approach.
 In marketing, emphasis is given on the wants of the consumer.
Whereas in selling, emphasis is on the company’s products.
 Marketing is different from selling because here the company first
determines customers’ needs and wants and then decides how to
deliver a product to satisfy these wants. In selling, it is the other
way round.
 DIFFERENCE BETWEEN SELLING AND MARKETING

 In marketing the emphasis is on innovation in existing technology

and providing better value to the customer by adopting a superior
technology. Selling emphasizes on staying with existing technology
and reducing costs.
 Marketing views the customer as the very purpose of the business.
Selling views customer as a last link in business.
 Planning in marketing is long-term-oriented in today’s products and
in terms of new products, tomorrow’s markets and future growth.
Planning in selling is short-term-oriented in terms of today’s
products and markets.
 DIFFERENCE BETWEEN SELLING AND MARKETING

 Marketing follows customer oriented approach and selling uses

production oriented approach.
 Consumer determines price and price determines cost of marketing.
In selling, cost determines price.
 Marketing makes use of long-term strategies to get sales –
examples, value-added service, customer education, meeting
objectives. Selling makes use of short-term tactics to get sales –
examples are free gifts, discounts, rebates, bribes, etc.
 Marketing is an indirect activity whereas sales is a direct activity.
 MARKETING MANAGEMENT

 According to Philip Kotler, “Marketing management is the analysis,

planning, implementation and control of programmes designed to
bring about desired exchanges with target markets for the purpose
of achieving organisational objectives. It relies heavily on designing
the organisations offering in terms of the target markets needs and
desires and using effective pricing, communication and distribution
to inform, motivate and service the market.”
 Marketing management is concerned with the chalking out of a
definite programme, after careful analysis and forecasting of the
market situations and the ultimate execution of these plans to
achieve the objectives of the organisation.
 FUNCTIONS OF MARKETING MANAGEMENT

 Selling
 Buying and Assembling
 Transportation
 Storage
 Standardization and Grading
 Financing
 Risk Taking
 Market Information
 IMPORTANCE OF THE MARKETING MANAGEMENT:

(i) Introduction of new products in the market.

(ii) Increasing the production of existing products.
(iii) Reducing cost of sales and distribution.
(iv) Export market.
(v) Development in the means of communication and modes of
transportation within and outside the country.
(vi) Rise in per capita income and demand for more goods by
the consumers.
 FUNCTIONS OF A MARKETING MANAGER

1. Determining the marketing mission for both the long and the short terms
2. Planning the marketing programme in clear terms right from the stage of
product planning to the product promotion
3. Coordinating the activities of production, finance, storage and
warehousing, despatch, and service functions operating in an enterprise
4. Organising the selling function vis-a-vis the advertising function in regard
to the following specific matters.
5. Reviewing competition and product position with special emphasis on the
aspects like market size, market share, status of competitors, rela­tive
technical/commercial advantages and disadvantages, marketing mix
6. Establishing resource allocation procedure for marketing decisions, viz., the
allocation of resources among the various marketing mix components
 PHILOSOPHIES/ APPROACHES OF MARKETING

The five marketing

concepts/approaches/philosophies
are:

 Production Concept
 Product Concept
 Selling Concept
 Marketing Concept
 Social Marketing Concept
 PRODUCTION CONCEPT

 When the production concept was defined, a production oriented business

dominated the market. This was from the beginning of capitalism to the mid
1950’s.
 This is based on the Law which states ‘Supply creates its own demand’.
Hence companies focus on producing more of the product and making sure that
it is available to the customer everywhere easily.
 Moreover, the production concept highlights that a business can lower costs via
mass production.
A company oriented towards production believes in economies of
scale (decreased production cost per unit), wherein mass production can
decrease cost and maximize profits.
 This philosophy only works when the demand is more than the supply.
 PRODUCT CONCEPT

 This concept works on the assumption that customers prefer products of

‘greater quality’ and ‘price and availability’ doesn’t influence their purchase
decision.
 The product concept proposes that consumers will prefer products that have
better quality, performance and features as opposed to a normal product.
The concept is truly applicable in some niches such as electronics and
mobile handsets.
 One of the best modern examples would be IT companies(Apple, Google,
Microsoft, HP etc.), who are always improving and updating their products,
to differentiate themselves from the competition.
 Consumers favor products that offer the most quality, performance, or
innovative features. The product concept believes in the consumer and it
says the consumers are more likely to be loyal if they have more options of
products or they get more benefits from the product of the company.
 SELLING CONCEPT

 Production and product concept both focus on production but selling concept
focuses on making an actual sale of the product.
 Selling concept focuses on making every possible sale of the product,
regardless of the quality of the product or the need of the customer.
 The selling concept highlights that customers would buy a company’s
products only if the company were to sell these products aggressively.
 Off course, in this era of marketing, we know that selling is not the only tactic
to sell your product. You have to focus on marketing as well.
 This philosophy doesn’t include building relations with the
customers. This means that repeated sales are rare, and customer
satisfaction is not great.
 MARKETING CONCEPT
 A company that believes in the marketing concept places the
consumer at the center of the organization and all its activities
are geared towards the consumer.
 A business, aims to understand the needs and wants of a customer
and executes the marketing strategy according to market research
beginning from product conception to sales.
 Focuses on needs/wants of target markets & delivering value better
than competitors.
 The marketing concept emphasizes the “pull” strategy”. This means
that a brand is so strong that customers would always prefer your
brand to others’.
 A holistic approach is taken with the whole organization striving to
make the customer experience better.
 SOCIETAL MARKETING CONCEPT

 Societal Marketing Concept is a relatively new marketing concept.

 It highlights the needs and wants of a target market and the delivery of better
value than its competitors,.
 It also emphasizes the importance of the well-being of customers and society
as a whole (consumer welfare or societal welfare).
 The societal marketing concept calls upon marketers to build social and ethical
considerations into their marketing practices.
 They must balance and juggle the often conflicting criteria of company profits,
consumer want satisfaction, and public interest.
 Under this concept, an organization believes in giving back to the society by
producing better products targeted towards society welfare.
 HOLISTIC MARKETING

 According to Philip Kotler “A holistic marketing concept is based on the

development, design, and implementation of marketing programs, processes,
and activities that recognize their breadth and interdependencies. Holistic
marketing recognizes that ‘everything matters’ with marketing and that a
broad, integrated perspective is necessary to attain the best solution.”
 The holistic marketing concept sees marketing as an important element that
everyone who works in a company should be involved with.
 If a business implements the holistic marketing concept correctly, it greatly
contributes to four very important things:
• Brand building
• Consistency
• Efficiency
• Effectiveness
COMPONENTS OF HOLISTIC MARKETING
 COMPONENTS OF HOLISTIC MARKETING

There are four main components within a holistic marketing model, each of which plays an
important role in bringing everything together for a business.
 Internal Marketing: Internal marketing refers to the internal management of system, the
marketing department and the collaboration between the marketing department and other
departments.
 Integrated Marketing: Integrated marketing involves the pricing strategy, product strategy,
placing strategy, promotion strategy and communication strategy.
 Performance Marketing: Performance marketing is focused on different business activities,
such as how to sell a product, brand and customer equity, and the ethical and legal
responsibilities a business and product upholds.
 Relationship Marketing: Relationship marketing is centred on the relationship you have
with your customers, employees, partners and competitors.
By considering these four different principle components, holistic marketing allows you to create
a comprehensive business plan that covers the whole business system.
 EXAMPLES OF HOLISTIC MARKETING

 Coca-Cola’s Open Happiness campaign is the most famous example of holistic

marketing. They had a ton of slogans throughout the years, but in 2009, they used
the slogan ‘Open Happiness’ for the first time. It lasted until 2015 and is today one
of the most popular slogans ever. They included the word ‘Happiness’ in all of their
ads and had a song performed by famous musicians called Open Happiness.
Additionally, they named their trucks Happiness Trucks, and vending machines were
Happiness Machines that ‘delivered doses of happiness’. If you look at their recent
ads, you’ll see people smiling, being happy and enjoying each other’s company,
which is what the brand is all about.
 Apple is one more example of a company that successfully uses holistic marketing.
Everything from how the products are developed with the customer in mind, to the
stores being branded in a recognizable fashion, to the customer service being
extremely quick, efficient and polite, Apple could be considered a master in using
this strategy.
FACTORS INFLUENCING MARKETING CONCEPT

1. Growth of Population: It goes without saying that an increase in population leads to

increase in demand for goods and services which is due to the diverse needs desires and
wants of customers.
2. Changing concept of family: Over the years, the concept of joint family has lost its
importance though it has many plus points. In place of joint families, we come across the
nucleus families which are divided which are a product of Western World. This is based on
astute individual freedom, supported by education, occupational mobility, migration and
self- relevance. More families mean more goods and services needed.
3. More Disposable Income: The young generation has the advantage of increased and
new job opportunities caused by changing values of culture, life-style and quality of life.
That is, their income avenues are increasing, leading to enhanced purchasing power.
Increased purchasing power backs up needs and desires and finally buying action.
 FACTORS INFLUENCING MARKETING CONCEPT

4. More Discretionary Income: The people are left with more surplus even after meeting
their needs that enables to cross the barrier of hand to mouth fashion of living. This
discretionary income is now meant for not necessities but comforts and luxuries. In fact, all are
not lucky enough to have such surplus. However, it affects the very cycle of thinking and
course of action.
5. Technological Advancement: The process of science and technology is never ending.
One invention or discovery leads to another. The technological advancement is so fast that
people are greatly and deeply influenced by the wave of planned obsolescence.
6. Mass-Communication Media: The people learn about the arrival of new products and
services because of the onslaught of mass- communication media print audio visuals that has
increased the speed of change and exchange. Modern ad world has revolutionized the
marketing process.
7. Credit Facilities: Credit is the greatest weapon that makes the people to go in for those
products which they cannot easily afford. Now credit cards, zero per cent interest schemes
have further made the people to meet their pressing needs. A person speaks of car which he
used to dream. Dreams are a reality caused by modern credit and the plastic money.