Marketing Management

Mamta Mohan
Amity Business School, Noida

"I hear and I forget; I see and I remember;

I do and I understand.” – Confucius
 Course goals

• To outline the marketing function and its role within a

corporation’s business strategies, also hopefully generating a
passion for the Marketing discipline and empowering you to
evaluate Marketing as a possible career choice
• To introduce you to marketing strategy and to the elements of
marketing analysis: customer analysis, company analysis, and
competitor analysis
• To familiarize you with the elements of the marketing mix
(product, pricing, promotion, and distribution strategies) and
enhance your problem solving and decision making abilities in
these operational areas of marketing tactics
HAVE LOTS OF FUN!

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 What is marketing

Many definitions, but for the purposes of this class we’ll follow Kotler
et al:

From a managerial point of view Marketing is a process of

planning and executing the conception pricing and
promotion and distribution of ideas and goods/ services to
create exchanges that satisfy individual and organizational
goals. MM is art and science of choosing target markets, and
getting , keeping and growing customers through creating ,
delivering and communications superior customer value.

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 What is marketing
• “..the process of discovering and translating consumer
needs and wants into product and service specifications,
creating demand for these products, services, and in turn
expanding the demand”

• Marketer is skilled at managing customer demand , they

seek to influence the level , timing and composition of
demand.

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Celebrating 50 years of independence with every Indian
household

NIRMA
Better Products. Better value, Better
living
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 With due apologies to small cars ,size does matter.
(so do power, economy, safety and style)

TATA

Indica
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 Purpose of Marketing
• “To create customer”
Peter Drucker

• “To create , recreate ,hold and attract the

customer”
“ people don’t buy products, they buy
expectation of benefits……”
Theodore levitt

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 Scope of Marketing
.Physical Goods
. Services
. Experiences
. Events
. Persons
. Places
. Properties
. Organizations
. Information
. Ideas

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 The Company orientations towards
market place

• The production concept

• The product concept
• The selling concept
• The marketing concept
-customer orientation
-competitor orientation

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 The Marketing Orientation

• What business are we in?

“marketing myopia”
-customer orientation-
“customer centeredness”
-competitor orientation.
• Intregrated Marketing
• Marketing mix
• Relationship marketing
• Societal marketing.

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 Relationship Marketing
Acquiring new customers v/s Retaining old customers

• Acquiring new customers can be 5 times more

expensive than the costs involved in satisfying and
retaining existing customers.
• Average company loses 10 % of its customers
each year.
• A decrease of 5% in the customer defection rate
can increase profits by 25% to 85% depending on
the industry.
• profits will depend on Customer lifetime value

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 Marketing Mix

Marketing mix

Product
Variety
Quality Place
Design Channels
Features coverage
Price
Brand name Promotion Assortments
Packaging Sales promotion locations
list price
Size Advertising inventory
Discounts
Service sales force transport
Allowances
Warranties public relations
payment period
Direct Marketing
credit terms

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• Marketing Mix Strategy

Offering/mix
Company/ Communication
product mix
services Distribution
prices Advertising Channels Target
sales promotion Customers

Events
Public relations
Direct marketing
personal selling

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 Selling vis-à-vis Marketing
Criteria Selling Marketing

1 orientation Production capability Market acceptability

2 Approach selling Need identification

3 Direction push pull

4 Emphasis aggressive Creating a niche

5 Business definition In terms of product In terms of market the

company operates in.

6 Time frame Short run Medium

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 Core Marketing Concepts…1
1. Needs, Wants, and Demands
2. Target market , positioning, segmentation
3. Offerings and brand.
4. Products and Services
5. Value, Satisfaction (QSP triad)
6. Marketing Channels
7. Supply chain
8. Competition
9. Marketing Environment
10. Marketing planning
• Please go through the definitions from the text book…
• Understand the words, the meanings…
• …and forget about them!
• Important to understand that marketing is all about concepts…the
clearer they are, the easier your lives are going to be
Course Note: In this course, you will be tested on concepts, not as sterile
definitions but on real-life application

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 Core Marketing Concepts…2
Needs, Wants, and Demands
• Discussion: what’s the difference between
these?
• Discussion: why is it important to
understand the difference?

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 Core Marketing Concepts…3
Products and Services
• Discussion:
– What’s the difference?
– Can services be made into products?
– Can products be made into services?

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 Core Marketing Concepts…4
Value, Satisfaction and Quality

• how would you calculate consumer value in:

– Consuming a can of Coca-Cola?
– Joining a health club?
– Buying a lottery ticket?
– Enjoying a massage at a spa?
• think of talk about an experience where as a
consumer, you felt:
– Satisfied with the value you received?
– Dissatisfied with the value you received?

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 Continued Value…
 Total customer value: the bundle of benefits
customers expect from a given product or service.
 Total customer cost: the bundle of costs customers
expect to incur in evaluating, obtaining, using, and
disposing of the product or service.
• CREATING CUSTOMER VALUE AND SATISFACTION
Customer Satisfaction: Whether a customer is satisfied after
purchase depends on the offer’s performance in relation to the
buyer’s expectations. We may define it as:
“Customer satisfaction or dissatisfaction is a person’s feeling
of pleasure or disappointment resulting from comparing a
product’s perceived performance (or outcome) in relation to the
person’s expectations”.

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 Core Marketing Concepts…5
Exchange, Transactions and
Relationships
• Discussion: an example of a non-monetary business
transaction in our day-to-day life
• Recently, as the owner of a particular brand of car, my
friend received an invitation to an exclusive preview of
their new luxury car, accompanied by cocktails and hors
d’oeuvres:
– What is the company trying to do?
– How will it help them…immediately and in the future?
• The ultimate marketing asset: an entire marketing
network
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 Core Marketing Concepts…2
Markets
• No longer defined as a physical space where
transactions take place
• In this course, when we refer to ‘Market’, it is
in the sense of a collection of buyers and
sellers in a particular need area, e.g. the
housing market, or the commodity market
• Discussion: name three markets

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 Marketing Management
Practice
Three stages
• Discussion: think of examples (from your
own lives or reading/knowledge), of
companies/ individuals who are involved in
the three forms of Marketing Management
Practice:
– Entrepreneurial
– Formulated
– Intrapreneurial
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 Evolution of Business Models and the role of
Marketing

Selling Marketing Societal

Product Production Mktg

As
As business
business philosophy
philosophy hashas evolved,
evolved, so
so
has
has the
the role
role of
of marketing…customer
marketing…customer
satisfaction
satisfaction is
is now
now at
at the
the core
core of
of most
most
successful
successful corporations
corporations
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 Drivers of new economy
Business must adjust to the Empowered
Customer

• Increase in buying power.

• Huge amount of information
• Greater variety of products / services.

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 Recap
• Today we’ve covered Chapter 1 of the text
• We’ve reviewed definitions of some basic
concepts…remember we have not yet
reached the marketing terminology we will
be dealing with for the majority of the
course
• There’s lots to come and lots to learn…the
fun has just begun!
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