MARKETING

MANAGEMENT

Mr. Vivek Mishra

 Marketing Defined
One of the shortest good definitions of marketing is “meeting needs profitably.”

Marketing is 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.- AMA

Marketing management is the art and science of choosing target markets and getting, keeping, and
growing customers through creating, delivering and communicating superior customer value.
 What is Marketed?
Goods: Frozen Foods
Services: Airlines
Events: ICC Cricket World Cup 2019
Experiences: Haunted house in Disney world
Persons: Oprah Winfrey
Places: Madame Tussauds
Properties: Zed Estates
Organizations: UNICEF
Information: Thomson Reuters
Ideas: Swach Bharat Abhiyaan
 Core Marketing Concepts
Needs, Wants, and Demands: Marketers do not create needs: Needs pre-exist marketers.
(Hunger - Food – Pizza – Burger King)

Target Markets, Positioning, and Segmentation: Marketers identify distinct segments,

decide which segment to target and accordingly position their offerings in the buyers mind.
(Volvo Cars)

Offerings and Brands: Marketers propose value by an offering & a brand is an offering
from a known source. Mobile Phone – Apple I Phone X

Relationships and network’s: Relationship marketing builds string economic, social and
technical ties among the parties. A marketing network consists of companies and its
supporting stakeholders (customers, employees, suppliers etc.) Axis Bank

Marketing Channels: To reach a target market, the marketer uses marketing channels, such
as communication and distribution channels. Magazines & Retailers

Paid, Owned, and Earned Media: Marketers always try to find new ways to interact with
consumers and customers. TV, Website, Viral Marketing
 Continued….
Impressions and Engagement: Marketers try to create impressions and increase the
engagement levels of customers. Movie Trailer & Facebook Likes

Value and Satisfaction: Marketers try offer maximum value to customers and improve their
satisfaction levels. PAYTM

Supply Chain: The supply chain is a channel stretching from raw materials to components to
finished products carried to final buyers. CCD

Competition: Includes all the actual and potential rival offerings and substitutes a buyer
might consider. Pepsi vs. Coke

Marketing Mix: Marketers use numerous tools to elicit desired responses from their target
markets. These tools constitute a marketing mix. 4 P‟s. Royal Enfield

Marketing Environment: Marketers pay close attention to the environment and adjust their
marketing strategies as needed. GST & Strategy
 Concepts under which organizations
conduct marketing activities
There are five competing concepts under which organizations conduct marketing
activities:
a) The Production Concept: The production concept holds that consumers will
prefer products that are widely available and inexpensive.
b) The Product Concept: The product concept holds that consumers will favor those
products that offer the most quality, performance, or innovative features.
c) The Selling Concept: The selling concept holds that consumers and businesses, if
left alone, will ordinarily not buy enough of the organizations products.
d) The Marketing Concept: The marketing concept holds that the key to achieving its
organizational goals consists of the company being more effective than competitors
in creating, delivering, and communicating customer values.
e) Societal Marketing Concept: Organizations task is to preserve and enhance the
consumers and the societies well being. It calls for social and Ethical considerations
in marketing.
 The Marketing Process
Analysis of Marketing Opportunities/Situational Analysis : What situations can be
identified as a market opportunity & what is an attractive market opportunity?
Market Research: After identifying the market opportunity it is necessary to estimate
its actual size, its growth, its peculiarities and current preferences.
Select Marketing Strategies: After the investigation of the market, it‟s time to make
strategic decisions to be addressed, differentiate and position in the target market.
Selection of Marketing Mix (4 P’s): Using a set of variables or controllable tools that
combine in a way that would achieve a particular result in the target market.
Implementation & Control : This is the time when the company has to implement the
marketing strategies through the 4P‟s and monitor the position in relation to the
objective.
Marketing vs. Selling
 Marketing Myopia
Marketing Myopia refers to a short-sighted approach to marketing which focuses on
fulfillment of immediate needs of the company rather than focusing on marketing from
the customers point of view.

How can Marketing Myopia Occur?

Focus on selling rather than building relationships
Predicting growth without conducting proper research
Mass Production
Giving importance to just one aspect of marketing attributes
Not changing with the dynamic consumer environment
 80:20 Principle In Marketing
The 80:20 rule, well known as the Pareto principle, is widely used in business, but how
does it apply to marketing.
The Pareto principle is named after Italian economist Vilfredo Pareto, who noted in 1906
that 80% of the land in Italy was owned by 20% of the population.
Apparently Pareto developed what would later be known as his principle by observing
that 20% of the pea pods in his garden contained 80% of the peas.
 Applications of the 80:20 Principle
80% of profits come from 20% of customers
80% of product sales from 20% of products
80% of sales from 20% of advertising
80% of customer complaints from 20% of customers
80% of sales from 20% of the sales team

1. Customer Service
Application: 80% of your complaints come from 20% of your services. Tracking poor
reviews and negative feedback from clients is the key to applying the Pareto Principle
effectively
2. Client Management
Application: 80% of your revenue comes from 20% of your clients. Rank all of your
clients based on how much revenue they generate. Does the top 20% add up to 80% of
your total revenue?
 Continued….
3. Sales Application: 80% of your sales comes from 20% of your efforts. You need to
understand which efforts put forth by you and your organization are generating the most
of your income. You‟ll need to retrace every sale back to the effort that created it.
4. Product Application: 80 % of revenue is derived from 20 % of its products. You can
emphasize the value of your core products in a better way to target customers. You can
also expand your business by targeting new customer groups
5.Advertising Application: 80% of sales from 20% of advertising. Understanding
which of your advertisements produce the greatest results lets you eliminate some of the
costs associated with less productive techniques.
 Marketing Mix
Marketing Mix is a set of marketing tools or a group of marketing variables
that the firm combines and controls, to produce the desired response in the
target market. The traditional marketing mix (McCarthy) including 4 P‟s is given
below:
 Marketing Mix of Fastrack
Product
Fastrack is known for colorful and trendy products that suit the urban youth of
this country. It‟s portfolio includes: Watches, Bags, Sunglasses, Belts, Wallets etc.
Price
Fastrack has adopted a mid-range pricing system by providing best possible
products at prices affordable by the youth. Price range for watches INR 795 - 5395
Place
Fastrack is available across the nation through 158 exclusive retail stores in over 79
cities as well as authorized multi-brand outlets and across major e-commerce
platforms.
Promotion
Commercials appear through television, radio, newspapers, hoardings, social media
and magazines. Virat Kohli, is its brand ambassador who is a perfect choice as
both are ambitious and symbolize style and fashion.
 Marketing Mix for Services
To illustrate how marketing needed to market services differently, a further 3Ps (Booms
and Bitner) were incorporated into the marketing mix:

People: Flight Attendants, Executives at counter

Process: Reservation & Cancellation, Check In process
Physical Evidence: In flight environment
 4 A’s of Marketing
According to (Sheth & Sisodia) consumer knowledge is a much more reliable route to
success and they propose a customer-centric marketing management framework. This
model includes 4 A’s (Acceptability, Affordability, Accessibility & Awareness) which
complement the 4 P‟s.
 Marketing Environment
Marketing environment refers to factors and forces that affect the company„s
ability to develop and maintain successful transactions and relationships with its
target customers.
Environmental Scanning
Environmental scanning is the process (gathering, filtering and analyzing information
related to the marketing environment & monitoring the changes taking place in the environment)
undertaken within an organization to identify external issues, situations, and
threats that may affect its future and its strategic decision-making.

Importance of Environmental Scanning:

Extensive insight into the current market conditions
Identifying changing consumer preferences & trends.
Facilitate the firm„s strategic response to the changes taking place in
environment
Assess the impact of opportunities and threats on the business.
Assess the attractiveness and probability of opportunities
 Tools of Environmental Scanning
1. SWOT (Strength Weakness Opportunity & Threat) Analysis
 Continued….
2. PESTLE (Political Economic Social Technological Legal Ecological)
Analysis
 The Micro Environment
Microenvironment consists of the actors close to the company that affect its
ability to serve the company, suppliers, marketing intermediaries, customer
markets, competitors, and publics and its customers.
 Continued…..
• Company‟s Internal Environment: Functional areas such as top management,
finance, and manufacturing, etc. E.g. Suicide of V.G. Siddhartha

• Suppliers: Provide the resources needed to produce goods and services. E.g.
Omfed

• Marketing Intermediaries: Help the company to promote, sell, and distribute its
goods to final buyers. E.g. Cloudtail and Amazon

• Customers: Individuals or Organizations that purchase a company‟s goods and

services. E.g. Rise of PAYTM

• Competitors: Those who serve a target market with similar products and
services. E.g. Pepsi and Coke

• Publics: Any group that perceives itself having an interest in a company‟s ability
to achieve its objectives. E.g. Media’s role in scams
 The Macro Environment
The macro environment includes the major external forces that affect not only the
organization, but also on its competitors and on elements in the micro-
environment.
 Continued….
• Political environment consists of laws, government agencies that influence and
limit various organizations and individuals in a given society. E.g. Impact of Modi
2.0
• Economic environment consists of factors that affect consumer purchasing
power and spending patterns. E.g. Dutch Disease and Automobile sector
• Social and cultural environment includes changing tastes, purchasing behaviour
and priorities of consumers and marketers need to understand and identify these
changing trends. E.g. Migrant population in Bhubaneswar
• Technological environment is perhaps the most dramatic forces that create new
technologies, creating new product and market opportunities. E.g. Failure of
Ambassador
• Legal environment sets the basic rules for how a business should operate in
society. E.g. BS VI norms
• Ecological environment is concerned of issues as to how the organization
interacts with and affects the natural environment or the ecology. E.g. NGT and
Volkswagen