Marketing Management

Rajan Arora

What is Marketing?
Marketing 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.

What is 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.

What is Marketed?
Goods Services Events & Experiences Persons Places & Properties Organizations Information Ideas

Demand States
Negative Nonexistent Latent

Declining

Irregular

Full

Overfull

Unwholesome

Negative Demand
The market is in a state of negative demand if a major part of the market dislikes the product and may even pay a price to avoid it. Eg: People have a negative demand for Vaccination Dental work Alcoholism

No Demands
Target consumers may be uninterested in the product. Ex People have no demand for Farmers may not be interested in new farming methods College students may not be interested in a foreign language course.

Latent Demand
Many consumers may share a strong need that cannot be satisfied by any existing products. Latent demand for harmless cigarettes. Safer neighborhood. More fuel efficient cars.

Declining Demand
A substantial drop in the demand for products. Boy scout, NCC enrolment among students.

Irregular Demand
Organizations face demand that varies on a seasonal, daily or even hourly basis, causing problems of idle capacity or overcrowded capacity. Markets :- visited on weekends, not on weekdays. Hospitals :- OTs booked in advance

Full Demand
Organizations face full demand when they are pleased with there volume of business. Eg: Maruti at the time of bookings made open.

Overfull Demand
Some organizations face a demand level that is higher then they can or want to handle.

Unwholesome Demand
Unwholesome products will attract organized effort to discourage their consumption. Un-selling campaigns have been conducted against cigarettes, alcohols, drugs, handguns and pirated movies.

Core Marketing Concepts

Needs, wants, and demands Target markets, positioning, segmentation Offerings and brands Value and satisfaction Marketing channels Supply chain Competition Marketing environment

Company Orientations

Production

Product

Selling

Marketing

The Four Ps

Marketing Management Tasks

Develop market strategies and plans Capture marketing insights Connect with customers Build strong brands Shape market offerings Deliver value Communicate value Create long-term growth

Marketing Debate: Take a Position!

Does marketing shape consumer needs? or Does marketing merely reflect the needs and wants of consumers?

What is the Value Chain?

The value chain is a tool for identifying ways to create more customer value because every firm is a synthesis of primary and support activities performed to design, produce, market, deliver, and support its product.

Characteristics of Core Competencies

A source of competitive advantage Applications in a wide variety of markets Difficult to imitate

Firms Should Consider Key Questions

Can we learn from the past? How should the present be evaluated? What do we envision for the future?

What is Holistic Marketing?

Holistic marketing sees itself as integrating the value exploration, value creation, and value delivery activities with the purpose of building long-term, mutually satisfying relationships and coprosperity among key stakeholders.

What is a Marketing Plan?

A marketing plan is the central instrument for directing and coordinating the marketing effort. It operates at a strategic and tactical level.

Levels of a Marketing Plan

Strategic
Target marketing decisions Value proposition Analysis of marketing opportunities

Tactical
Product features Promotion Merchandising Pricing Sales channels Service

Product Orientation vs. Market Orientation Company

Xerox Columbia Pictures Encyclopedia Britannica Carrier

Product
We make copying equipment We make movies We sell encyclopedias We make air conditioners and furnaces

Market
We improve office productivity We entertain people We distribute information We provide climate control inside homes

Dimensions That Define a Business

Customer groups

Customer needs

Technology

FedEx
FedEx added Sunday deliveries based on customer requests and market demand

Environmental Forces
Demographic
Political-Legal Economic

Technological Natural

Socio-Cultural

Population Age Groups

65+ 40-65 25-40 Teens School-age Preschool

Classes of Consumer Products

14-1 Convenience Shopping Specialty

Services $

POP
ATM

Goods

Market Segmentation
Grouping people according to their similarity related to a particular product category

Market Segmentation
Characteristics
age gender geographic location income spending patterns cultural background demographics marital status education language mobility

Bases for Market Segmentation