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Marketing Management
Module:1
Chapter:1 Nature & Scope of Marketing
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Introduction to Marketing
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From the time you wake up..
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Turn off that alarm brush your teeth take a
shower have breakfast get dressed travel
to work use the copier go out for dinner at
____ - fall asleep
We use more than 250 brands by the time our
day ends !!
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Marketing is omnipresent ..!
The average person in a metro-city is exposed
to over 3,000 advertising messages a day!!
...consciously or otherwise.
Source: http://www.superprofile.com
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We are constantly being targeted !!
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Marketing is natural
Analogy of marketing with the natures law of
survival of the fittest
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What is sold What is marketed
A grocery shop sells Channa Commodity
A restaurant sells Channa-
Bhatura
Product
MDH , a food company sells ready
to eat channa masala
Brand
Tata Consultancy Service sells TCS
Certainity
Solution
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What is Marketed?
Goods
Services
Events & Experiences
Persons
Places & Properties
Organizations
Information
Ideas
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Good Marketing is No Accident
The roaring success
of four-wheeler Tata
Ace, in a market
earlier dominated bythree-wheeler load
carriers, was due to a
deep understanding
of the market needsand customer
requirements.
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Lets define
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What is Marketing?
Marketing is an organizational functionand a set of processes for creating,
communicating, and delivering valueto customers and for managing
customer relationships
in ways that benefit theorganization and its stakeholders.
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What is Marketing Management?
Marketingmanagement is theart and science
of choosing target marketsand getting, keeping, and growing
customers through
creating, delivering, and communicatingsuperior customer value.
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Marketing is the management process that
identifies, anticipates and satisfies customer
requirements profitably
The Chartered Institute of Marketing
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The right product, in the rightplace, at the right time, and at
the right price
Adcock et al
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Marketing is the humanactivity directed at satisfying
human needs and wants
through an exchange process
Philip Kotler
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The AMA definition:
Marketing is the process of planning and executing
the conception, pricing, promotion, anddistribution of ideas, goods, and services to create
exchanges that satisfy individual andorganizational objectives.
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No single definition or approach
But the common subject matters:
The ability to satisfy customers,
The identification of favorable marketingopportunities
The need to create an edge over competitors
The aim to increase market share mainly in target
markets
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Some marketing Gurus..
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Selling is only the tip of the iceberg
There will always be a need for
some selling. But the aim of marketing
is to make selling superfluous. The aim
of marketing is to know and understandthe customer so well that the product or
service fits him and sells itself. Ideally,
marketing should result in a customer
who is ready to buy. All that should beneeded is to make the product or
service available.
Peter Drucker
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Key Customer Markets
Consumer Markets
Business Markets
Global Markets
Nonprofit/ Government Markets
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Consumer :
A consumer is one who consumes goods and services.
Customer :
Customer are those who buy goods and services.
Consumer , Buyer & Customer
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Evolution of
the marketingconcept
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Production Concept
Product Concept
Selling Concept
Marketing Concept
Consumers prefer products that arewidely available and inexpensive
Consumers favor products thatoffer the most quality, performance,
or innovative features
Consumers will buy products only if
the company aggressivelypromotes/sells these products
Focuses on needs/ wants of targetmarkets & delivering value
better than competitors
Company Orientations Towards the
Marketplace
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Societal
MarketingConcept
Company(Profits)
Consumers(Want Satisfaction)
Society(Human Welfare)
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Societal Marketing Concept
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Holistic Marketing
The Holistic Marketing concept is bases on thedevelopment, design and implementation of
marketing programs, processes and activities
that recognizes their breadth andinterdependencies.
Holistic marketing recognizes that everything
matters in marketing and that a broad,integrated perspective is often necessary.
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Figure 1.4 Holistic Marketing Dimensions
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Customers
Front-line people
Middle Management
Top
Management
Modern Marketing Concept TraditionalOrganization Chart
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Modern Marketing Concept Customer-Oriented Organization Chart
Customers
Front-line people
Middle management
Top
manage-
ment
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Figure 1.2 A Simple Marketing System
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The Marketing Mix
Developed to achieve the companys objectives.
Also called:
4 Ps of
Marketing
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Product
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What is a Product?
A product is anything that can be offered to a
market to satisfy a want or need, including
physical goods, services, experiences, events,
persons, places, properties, organizations,
information, and ideas.
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Product Mix
Total sum of all products and variants offeredby an organization (Hindustan Unilever Limited)
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Product Differentiation
Product form
Features
Customization
Performance
Conformance
Durability
Reliability
Repairability
Style
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Service Differentiation
Ordering ease
Delivery
Installation
Customer training
Customer consulting
Maintenance and repair
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Product Life Cycle
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PRICE
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Definition:
In ordinary usage, price is the quantity of
payment or compensation given by one party
to another in return for goods or services.
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Place
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Marketing Channelsand Supply Chain Management
The fourth P of marketing
(place)
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Consumer Marketing Channels
Wholesaler Distributor Retailer Consumer
Consumer
Retailer Consumer
Manufacturer
0-level channel
Wholesaler Retailer ConsumerMfg2-level channel
Mfg
3-level channel
1-level channel
Manufacturer
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Promotion
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Concept of Promotion
Promotion is all personal and impersonal
efforts by a seller to
Inform
Persuade or
Remind a target audience.
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Personal Selling
Direct presentation of a product to a
prospective customer by a representative of
the organization selling it.
Face to face
Over the phone
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Advertising
The non-personal communication of informationusually paid for & usually persuasive in nature, aboutproducts (goods & services) or ideas by identifiedsponsor through various media.
Broadcast media (TV, Radio)
Print media (newspapers, magazines)
Outdoor media (billboards)
Internet
Mobile phones
Other media
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Sales Promotion
Incentives given to encourage sales and helppersonal selling.
Premiums
Event sponsorships
Contests
Trade shows
In-store displays, samples, rebates
Discounts and coupons
If given to channel partners: Trade Promotion
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Public Relations
Efforts to develop favorable attitudes and
opinions about products/organizations
Newsletters
Annual reports
Lobbying, charitable events etc.
Publicity
News stories about organization & products
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Marketing Concept - The 4 Ps & The 4 Cs
Marketing
Mix
Product
PricePromotion
Place
Customer
Solution
Customer
Cost Communication
Convenience
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Acoording to customer point of
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Acoording to customer point of
view-SIVAProduct Solution
Promotion Information
Price Value
Place Access
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Marketing Concept - The 4 Ps
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The extended marketing mix
Also called the service marketing mix
People
Process
Physical Evidence
Productivity (8
th
P)
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*Problem & Challenges in Marketing
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*Problem & Challenges in Marketing
Network information Technology
Globalization
Deregulation
Privatization
Heightened competition
Industry Convergence
Consumer Resistance
Retail Transformation
Disintermediation
*In Marketing Elective
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New Consumer Capabilities
A substantial increase in buying power A greater variety of available goods and services
A great amount of information about practicallyanything
Greater ease in interacting and placing andreceiving orders
An ability to compare notes on products and
services An amplified voice to influence public opinion
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*Role of Marketing Manager
Developing marketing Strategies & Plans
Capturing Marketing Insights
Connecting with Customer
Building Strong brands
Shaping the Market Offering
Delivering Value
Communicating Value
Creating Long Term Growth
*In Marketing Elective
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Identifying & Selecting Markets
Segmentation
Targeting
Positioning
( chapter 3 in detail)
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70,432 cars recorded during 2010-11
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b ki f 25000 it i j t ti
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booking of 25000 units in just a time
period of 10 days of its launch
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Consumer BehaviorThe behavior that consumer display in buying,
using and disposing of products & services.
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What Influences
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What Influences
Consumer Behavior?
Cultural Factors
Social Factors
Personal Factors
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What is Culture?
Culture is the fundamental determinant of a
persons wants and behaviors acquired
through socialization processes with family
and other key institutions.The growing child acquires s et of values,
perception, preferences and behaviors
through his or her family and other keyinstitution.
Each culture consist of smaller subculture
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that provide more specific identification and
socialisation for their members
Nationalities
Religions
Racial groups
Geographic regions
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Social Factors
Reference
groups
Socialroles Statuses
Family
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Personal Factors
Age
Values
Life cycle
stage
Occupation
Personality
Self-
concept
Wealth
Lifestyle
Figure 6 1
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Figure 6.1
Model of Consumer Behavior
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Key Psychological Processes
Motivation
MemoryLearning
Perception
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Motivation
Freuds
Theory
Behavior
is guided by
subconsciousmotivations
MaslowsHierarchy
of Needs
Behavior
is driven by
the lowest,unmet need
HerzbergsTwo-Factor
Theory
Behavior is
guided by
motivatingand hygiene
factors
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Maslows Hierarchy of Needs
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Perception
Selective Attention
Subliminal Perception
Selective Retention
Selective Distortion
Figure 6.3 State Farm Mental Map
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Figure 6 4 Consumer Buying Process
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Figure 6.4 Consumer Buying Process
Problem Recognition
Information Search
Evaluation
Purchase Decision
Postpurchase
Behavior
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Glimpse of Marketing Specializations
Consumer Behavior
Marketing Research
Sales and distribution
Integrated Marketing Communications
Services Marketing
Industrial Marketing
International Marketing Brand Management
Digital Marketing