Overview of Marketing Management

1.Market Analysis

2.Consumer Behaviour

3.Product Design

4.Advertising and Sales Promotion

5.Online/ Social Media/ Digital Media Marketing

 Unit-I
Introduction
•Defining Marketing − Core concepts in Marketing
•Evolution of Marketing
•Marketing Planning Process
•Scanning Business environment: Internal and External
− Value chain − Core Competencies
•PESTEL
•SWOT Analysis
•Marketing interface with other functional areas –
Production, Finance, Human Relations Management,
Information System
•Marketing in global environment
•International Marketing - Rural Marketing
•Prospects and Challenges.
•
What is a market?
• Markets are composed of:
– Buyers
– Sellers
– Institutions and infrastructure
– Others behind the scenes: importers,
processors, storage owners, wholesalers,
credit suppliers, government officials and
policies
• Markets are where buyers and sellers come
together to obtain information and exchange
commodities.
Meaning
• Markets are where buyers and sellers come
together to obtain information and exchange
commodities.
• A market is said to be functioning well when
goods flow into the market in times of deficit
and out in times of surplus, via private trading.
 Custome
r

Retailer

Wholesale
r

Processor In a Market Chain

commodities flow
Farmer from producers
to consumers
Classification of Market
1. Local Market
• The market limited to a certain place of a
country is called local market.
• This type of market locates in certain place of
city or any area and supplies needs and wants
of the local people.
• Perishable consumer products such as milk,
vegetables, fruits, etc are sold and bought in
local markets.
2. Regional Market
• The market which is not limited to a certain
place but expanded in regional level is called
regional market.
• Mostly, food grains such as wheat, paddy,
maize, millet, sugar, oil etc are bought and
sold in such regional market.
3. National Market
• If buying and selling of some products is
done in the whole nation, this is called
national market.
• The products such as clothes, steel, cement,
iron, tea, coffee, soap, cigarette, etc are
bought and sold nationwide.
4. Wholesale Market
• If a large quantity of products are purchased
from producers and sold to different retailers,
this is called wholesale market.
• In wholesale market, the products are not
sold directly to ultimate consumers. But, if
consumers want to buy in large quantity, they
can buy from wholesaler.
5. Retail Market
• The market that sells small quantity of
products directly to ultimate consumers is
called retail market.
 Scope – What do we market
 Goods
 Services
 Events
 Experiences
 Personalities
 Properties
 Information
 Ideas and concepts
 Marketing
Marketing is the process of planning and
executing the conception, pricing, promotion,
and distribution of ideas, goods, services to
create exchanges that satisfy individual and
organizational goals
American Marketing Association
Definition
• Marketing is a Social and Managerial Process
by which individuals and groups obtain what
they need and want through creating and
exchanging value with others.
Marketing Management
• 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.
 Simple Marketing System
Communication

Goods/services
Industry Market
(a collection (a collection
of sellers) of Buyers)
Money

Information
20
 Difference Between - Sales & Marketing ?
Sales
Trying to get the customer to want what the
company produces.

Marketing
Trying to get the company produce what the
customer wants.
Difference Between Sales and Marketing
Objectives of Marketing Management
1.Creating New Customers
2.Satisfying the needs of Customers
3.Enhancing the Profitability of the Business
4.Raising the Standard of living of the people –
Production of wide variety of goods and
services for satisfying customer’s needs
5.Building and retaining Long term relationship
with customers
Important Features of Marketing
1. Marketing is aimed at finding out consumer needs
and meeting these needs.
2. Marketing must consider profit as its main
objective.
3. Marketing is ongoing all the time. The marketing
process has no start or end.
4. Businesses must be prepared to respond to the
consumer reactions and changes all the time.
Importance of Marketing
1.Marketing Helps in Transfer, Exchange and
Movement of Goods
2.Marketing Creates Employment
3.Marketing as a Source of Income and Revenue
4.Marketing Acts as a Source of New Idea
5.Marketing Is Helpful In Development Of An
Economy
Functions of Marketing
1.Gathering and Analyzing Market Information
2.Marketing Planning
3.Product Designing and Development
4.Standardization and Grading
5.Packaging and Labelling
6.Branding
7.Customer Support Service
8.Pricing of Products
9.Promotion & Physical Distribution
10.Transportation& Warehousing
 Evolution of Marketing
• Marketing evolution refers to the distinct phases that
businesses have gone through as they continued to
seek new and innovative ways to achieve, maintain
and increase revenue through customer sales and
partnerships.
Definition
• According to Keith, marketing evolved into its
present-day prominence within firms during four
distinct eras throughout American history.
 Marketing Process
Definition
•The marketing process to analyze
market opportunities, selecting target markets,
developing marketing mix, and finally
managing the marketing effort. As one can see that the
targeted customers stand at the center
of the marketing process.
Marketing Process
 Marketing Process
1. Understanding The Marketplace And Customer Needs
And Wants.

2. Designing A Customer-Driven Marketing Strategy.

3. Constructing an integrated marketing plan that

delivers superior value.

4. Build Profitable Relationships.

5. Capturing Value From Customers.

1.Understanding The Marketplace And Customer
Needs And Wants.
• It is important to understand customer needs,
wants, and demands to build want- satisfying
market offerings and building value-laden
customer relationships.
• This increases long-term customer equity for
the firm.
2. Designing A Customer-Driven Marketing
Strategy
• Focus areas for designing a marketing
strategy:
• Selecting customers to serve -defining the
target market
• Deciding how to serve customers in the best
way – choosing a value proposition
3. Constructing an integrated marketing plan
that delivers superior value.
• It consists of the firm’s marketing mix (4Ps),
the set of marketing tools the firm uses to
implement its marketing strategy.
• The marketing program builds customer
relationships by transforming the marketing
strategy into action.
4. Build Profitable Relationships.
• Customer relationship management is the
overall process of building and maintaining
profitable customer relationships by delivering
superior customer value and satisfaction.
• Customer relationship management aims to
produce high customer equity, the total
combined customer lifetime values of all of its
customers.
• The key to building lasting relationships is the
creation of superior customer value and
satisfaction.
5. Capturing Value From Customers.
• Customer relationship management’s ultimate aim is
to produce high Customer equity – total combined
lifetime values of all of the company’s current and
potential customers.
• The more loyal to the company’s profitable
customers, the higher are the customer equity.
Customer equity may even be a better way to
measure its performance than market share or
current sales.
• Marketers cannot create customer value and build
customer relationships by themselves. They need to
work closely with other company departments and
with partners outside the firm.
 Marketing environment
• Marketing activities are influenced by several
factors inside and outside a business firm.
• These factors or forces influencing marketing
decision making are collectively called
marketing environment.
• According to “Philip Kotler” A company’s
marketing environment consist of the internal
factors and forces, which affect the company’s
ability to develop & maintain successful
transaction & relationship with the company’s
target customer’s.
Marketing Environment
• Micro environment: These are internal factors,
which the organization can control.

• Macro environment:
environment (PEST factors): These are
external forces which the organization does
not have direct control over these factors.
Actors in the Micro Environment
• The Company
• Top management
• Finance
• R&D
• Purchasing
• Operations
• Accounting
2. Suppliers
– Provide resources needed to produce goods
and services.
3. Marketing Intermediaries
– Help the company to promote, sell, and
distribute its goods to final buyers
• Resellers
• Physical distribution firms
• Marketing services agencies
• Financial intermediaries
4. Competitors
• Firms must gain strategic advantage by
positioning their offerings against competitors’
offerings.
5. Publics
• Any group that has an actual or potential
interest in or impact on an organization’s
ability to achieve its objectives.
6.Customers
• Customer markets consist of individuals and
households that buy goods and services for
personal consumption.
 The Macro environment
• The company and all of the other actors
operate in a larger macro environment of
forces that shape opportunities and pose
threats to the company.
The Company’s Macro environment
1. Demographic Environment
• Demography is the study of human
populations in terms of size, density, location,
age, gender, race, occupation, and other
statistics.
2. Economic Environment
• Economic environment consists of factors that
affect consumer purchasing power and
spending patterns
3. Natural Environment
• Natural environment involves the natural
resources that are needed as inputs by
marketers or that are affected by marketing
activities
Trends
• Shortages of raw materials
• Increased pollution
• Increased government intervention
4. Technological Environment
• Most dramatic force in changing the
marketplace with many positive and negative
effects .

5. Political Environment
• Political environment consists of laws,
government agencies, and pressure groups that
influence or limit various organizations and
individuals in a given society
6. Cultural Environment
• Cultural environment consists of institutions
and other forces that affect a society’s basic
values, perceptions, and behaviors.
 PESTEL

What is a PESTEL Analysis?

• PESTEL Analysis is a strategic framework used to

evaluate the external environment of a business by
breaking down the opportunities and risks
into Political, Economic, Social, Technological, Enviro
nmental, and Legal factors.
• PESTEL Analysis can be an effective framework to use
in Corporate Strategy Planning and for identifying the
pros and cons of a Business Strategy.
• The PESTEL framework is an extension of the PEST
strategic framework, one that includes additional
assessment of the Environmental and Legal factors
that can impact a business.
PESTEL
1. Political Factors
•When looking at political factors, you are looking at
how government policy and actions intervene in the
economy and other factors that can affect a
business. These include the following:
•Tax Policy
•Trade Restrictions
•Tariffs
•Bureaucracy
2. Economic Factors
•Economic Factors take into account the various aspects
of the economy, and how the outlook on each area could
impact your business. These economic indicators are
usually measured and reported by Central Banks and
other Government Agencies. They include the following:
•Economic Growth Rates
•Interest Rates
•Exchange Rates
•Inflation
•Unemployment Rates
3. Social Factors
•PESTEL analysis also takes into consideration social
factors, which are related to the cultural and
demographic trends of society. Social norms and
pressures are key to determining consumer behavior.
Factors to be considered are the following:
•Cultural Aspects & Perceptions
•Health Consciousness
•Populations Growth Rates
•Age Distribution
•Career Attitudes
4.Technological Factors
•Technological factors are linked to innovation in the
industry, as well as innovation in the overall economy.
Not being up to date with the latest trends of a
particular industry can be extremely harmful to
operations. Technological factors include the following:
•R&D Activity
•Automation
•Technological Incentives
•The Rate of change in technology
5. Environmental Factors
•Environmental factors concern the ecological impacts
on business. As weather extremes become more
common, businesses need to plan how to adapt to these
changes. Key environmental factors include the
following:
•Weather Conditions
•Temperature
•Climate Change
•Pollution
•Natural disasters (tsunami, tornadoes, etc.)
6. Legal Factors
•Legal factors pertain to any legal forces that define
what a business can or cannot do.Political and legal
factors can intersect when governmental bodies
introduce legislature and policies that affect how
businesses operate.
•Legal factors include the following:
•Industry Regulation
•Licenses & Permits
•Labor Laws
•Intellectual Property
 SWOT Analysis
What is a SWOT Analysis
•A SWOT analysis is a framework used in strategic
planning and marketing. It provides you with the
knowledge to create plans to improve your business.
•SWOT is defined as an acronym for Strengths,
Weaknesses, Opportunities and Threats. It is a critical
strategic planning tool used to isolate an issue,
conceptualize a workable solution, and then remove
that issue as an ongoing concern.
SWOT Analysis
Marketing Interface with other Functional Areas
1. Research and development
• Research and development is the engine
within an organization which generates new
ideas, innovations and creative new products
and services. For example cell phone/mobile
phone manufacturers are in an industry that is
ever changing and developing, and in order to
survive manufacturers need to continually
research and develop new software and
hardware to compete in a very busy
marketplace.
2. Production/Operations/Logistics
• Operations include many other activities such
as warehousing, packaging and distribution.
To an extent, operations also includes
production and manufacturing, as well as
logistics.
• Production is where goods and services are
generated and made. For example an aircraft
is manufactured in a factory which is in effect
how it is produced i.e. production.
• Logistics is concerned with getting the product
from production or warehousing, to retail or
the consumer in the most effective and
efficient way. Today logistics would include
warehousing, trains, planes and lorries as well
as technology used for real-time tracking.
3. Human resources
• Human Resource Management (HRM) is the
function within your organization which
overlooks recruitment and selection, training,
and the professional development of
employees.
• Other related functional responsibilities
include well-being, employee motivation,
health and safety, performance management,
and of course the function holds knowledge
regarding the legal aspects of human
resources.
4. Finance department
• The marketing department will need to work
closely with the finance department to ensure
that:
• There is an adequate budget to meet the needs
for research, promotion and distribution
• The finance department have a whole
organisation brief to ensure that all the
business operates within its financial
capabilities.
• They will want all departments to work within
their allocated budgets. Like all departments,
marketing may wish to overspend if profitable
marketing opportunities emerge over the year.
• The marketing department is likely to
concentrate on sales volume and building
market share, while the finance department
may be more focused on cash flow, covering
costs and paying back investment as quickly as
possible.
 Marketing in Global Environment
• Global Firm - A firm that, by operating in more
than one country, gains R&D, production,
marketing and financial advantages in its
costs and reputation that are not available to
purely domestic competitors.
• Global marketing as ―marketing on a
worldwide scale reconciling or taking
commercial advantage of global operational
differences, similarities and opportunities in
order to meet global objectives.
1. Domestic marketing
• A marketing restricted to the political
boundaries of a country, is called "Domestic
Marketing".
• A company marketing only within its national
boundaries only has to consider domestic
competition.
• Even if that competition includes companies
from foreign markets, it still only has to focus
on the competition that exists in its home
market.
2. International marketing
• International Marketing is defined as the
performance of business activities designed to
plan, price, promote, and direct the flow of a
company's goods and services to consumers
or users in more than one nation for a profit.
 Global Environment

1. Economic Environment

2. Political Environment

3. Cultural Environment
1. Economic Environment

1. Subsistence Economies

2. Raw material exporting Economies

3. Industrializing Economies

4. Industrial Economies
2. Political Environment

1. Attitudes towards international buying

2. Government Bureaucracy

3. Political Stability

4. Country's Monetary Regulations

3. Cultural Environment

• The Impact of Culture on Marketing Strategy

• The seller must examine the ways consumers

in different countries think about and use

certain products before planning a marketing

program.
Advantages
1. The advantages of global market we can
introduce our product by using advertizing
2. Economies of scale in production and
distribution
3. Lower marketing costs
4. Power and scope
5. Consistency in brand image
6. Ability to leverage good ideas quickly and
efficiently
Prospects of Global Marketing
• Exporting
• Importing
• Re-exporting
• Management of international operations
Challenges of Global Marketing
• Self reference criterion
• Political and legal differences
• Cultural differences
• Economic Differences
• Differences in currency unit
• Differences in language
• Differences in marketing Infrastructure
• Trade Restrictions
• High cost of Distance
 International Marketing
• International marketing, also known as global
marketing, involves marketing products to people
across the world. In other words, it’s any marketing
activity that occurs across borders.
Definition
• According to the American Marketing
Association, international marketing is a
multinational process of planning and executing the
conception, pricing, promotion, and distribution of
ideas, goods, and services to create an exchange that
satisfies individual and organizational objectives.
Definition
•“International Marketing is defined as the
performance of business activities designed to
plan, price, promote, and direct the flow of a
company’s goods and services to consumers or
users in more than one nation for a profit.”
 Types of International Marketing
1. Export
• Exporting refers to the practice of shipping goods
directly to a foreign country.
• Manufacturers looking to expand their business to
other countries often consider exporting first.
2. Licensing
•Licensing is an agreement whereby a company, known
as the licensor, grants a foreign firm the right to use its
intellectual property.
•Licensing is defined as the granting of
permission by the licenser to the licensee to use
intellectual property rights, such as trademarks,
patents, brand names, or technology, under
defined conditions.
• It’s usually for a specific period, and the licensor
receives royalty in return.
3. Franchising
•Like licensing, franchising involves a parent company
granting a foreign firm the right to do business in its
name.
•However, franchises usually have to follow stricter
guidelines in running the business than licensing.
 4. Joint Venture
•A joint venture describes the combined effort of two
businesses from different countries to their mutual
benefit.
•It’s the participation of two or more companies jointly
in an enterprise in which each company:
•Contributes assets
•Owns the entity to some degree
•Shares risk
 Prospects in International Marketing
1. Effective utilization of surplus domestic
production
2. Introduction of new varieties of goods
3. Improvement in the quality of production
4. Promotion of mutual co-operation among
countries.
International Business Issues and Challenges
1.Language Barrier.
2.Cultural Differences.
3.Managing Global Teams.
4.Currency Exchange and Inflation Rate.
5.Deciding Company Structure.
6.Foreign Politics and Policies.
7.International Accounting.
8.Product Pricing.
 Rural Marketing
• According to G.N. Murthy – “Rural marketing is
the study of all the activity, agency and policy
involved in the procurement of farm inputs by
the farmers and the movement of rural
products from farmers to consumers”.
• According to T.P Gopalaswamy – “Rural
Marketing is a two-way process which
encompasses the discharge of business
activities that direct the flow of goods from
urban to rural area (manufactured goods) and
vice versa (agriculture products) as also with in
the rural areas”.
 Rural Market Segmentation
• Geographic location
• Population density
• Gender, age, occupation, income levels
• Socio-cultural considerations
• Language and literacy level
• Lifestyle
• Benefits sought Nearness to an urban
area/industrial town
 Scope / Attractiveness of Rural Market / Why
Companies Go Rural
1. Large Population: According to 2001 census rural
population is 72% of total population and it is
scattered over a wide range of geographical area
2. Rising Rural Prosperity: Average income level has
improved due to modern farming practices, contract
farming, industrialisation, migration to urban areas
and remittance of money by family members settled
abroad.
3. Growth in Consumption: There is a growth in
purchasing power of or rural consumers. The
average per capita household expenditure is Rs. 382
4. Changing Lifestyle: Lifestyle of rural
consumer changed considerably.
5. Life Cycle Advantage: The products, which
have attained the maturity stage in urban
market, is still in growth stage in rural market.
E.g. popular soaps, skin cream, talcum
powder, etc.
6. Rural Marketing is not Expensive: To
promote consumer durables inside a state
costs Rs one crore while in urban areas it will
costs in millions.
 Prospects in Rural Marketing
1. Large untapped market
2. Increase in disposable income
3. Increase in literacy level
4. Large scope for penetration
 Challenges in Rural Market
1. Standard of Living
• A large part of the population in rural areas lies
below poverty line. Thus the rural market is also
underdeveloped and the marketing strategies have to
be different from the strategies used in urban
marketing.
2. Low literacy levels
• The low literacy levels in rural areas leads to
problem in communication with the market and the
print media has less utility as compared to the other
media of communication.
3. Low Per Capita Income
• In rural market, agriculture is the main source of
income and hence expense capacity depends upon
the agricultural produce. Demand may or may not be
stable.
4. Transportation and Warehousing
• Transportation and supply chain management are
the biggest challenges in rural markets. As far as by
road transportation is concerned, about 50% of
Indian villages are connected by roads to the nearest
big cities. The rest of the rural markets do not have
proper road linkage to other cities which causes
problems in physical distribution.
5. Ineffective Distribution Channels
• The distribution chain is not organized and
also requires a large number of intermediates,
which in return increases the cost.
• Due to lack of appropriate infrastructure,
manufacturers are giving back steps to open
outlets in these areas.
• That is why they need to dependent on
dealers, who are rarely available for rural area
which increases the challenges for marketers.
6. Lack of Communication System
• Quick communications facilities like computer,
internet and telecommunication systems etc.
are the need of rural market which is a biggest
problem due to lack of availability.
• The literacy level in the rural areas is quite
low and consumer’s behavior is kind of
traditional, which is a cause of problem for
effective communication.
7. Seasonal Demand
• Demand may be seasonal in rural market due
to dependency on seasonal production of
agricultural products and the income due to
those products. Harvest season might see an
increase in disposable income and hence more
purchasing power.
 Unit – 1
PART B
1.Evolution of Marketing

2.Marketing Planning Process

3.Business/ Marketing environment

4.Marketing interface with other functional areas

5.International Marketing & Rural Marketing − Prospects and

Challenges