Download Marketing Management

By
Prof. Saurabh S. Bhange,
PRMIT&R, Badnera
 A market consists of people with both the
desire and ability to buy a specific product.
 Selling?
 Advertising?
 Promotions?
 Making products available in stores?
 Maintaining inventories?
All of the above, plus much
more!
Simple definition:
Marketing is the management process
responsible for identifying, anticipating, and
satisfying customer requirements profitably.”
(CIM,2001)
Goals:
1. Attract new customers by promising superior
value.
2. Keep and grow current customers by delivering
satisfaction.
Marketing is the activity, set of instructions, and
processes for creating, communicating, delivering,
and exchanging offerings that have value for
customers, clients, partners, and society at large.
OLD view of
marketing:
NEW view of
marketing:
Making a sale—
“telling and selling”
Satisfying
customer needs
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.
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• Evolution of the Market Orientation
 Production Era
 Sales Era
 Marketing Concept Era
 Societal Era
 Production concept (before 1930):
demand > supply
 Selling concept (1930-1950):
supply > demand
 Marketing concept (post-1960s):
analyze consumer needs before producing and
selling, market orientation, competition…
Communication
Goods/services
Industry
Market
(a collection
of sellers)
(a collection
of Buyers)
Money
Information
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
Marketing is all about creating a pull, sales is all about
push.

Marketing is all about managing the four P’s –
 product
 price
 place
 promotion
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Convenience
Marketing
Mix
Place
Product
Customer
Solution
Price
Promotion
Customer
Cost
Communication
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 The first "P" of the marketing mix deals with the
product.
 The positioning, packaging, etc.
 PRODUCT - what is it that you are going to sell.
 Product Mix - range of PRODUCTS or SERVICES
offered for sale
 Product Features- color, packaging, quality, brand name
 Product Support - maintenance, after-sales Service,
pre-sale like advice and Quotations
 The second "P" of the marketing mix is price.
 There are several options to consider regarding
price:
 1) price matching, 2) price making, 3) introductory
penetration pricing, and 4) a competitive upgrade
price strategy.
Pricing - not just how much you charge for a
product but how the price fits your target
market and the image you wish to develop.
 Pricing Methods you choose depends on:
 competition in the market and your marketing




strategies
demand for your product
controlled pricing
your costs
perceived value
 The 3rd "P" of the marketing mix deals with product
placement--the width of distribution
 Distribution - how your products or services reach
your customers
 Distribution Methods
 Customers come to you
 You take the product/service direct to the customer
 You use an agent merchant franchise etc. to reach
your customer
 LOCATION - the place of the business "locate your
business where the market is".
 Factors in Selecting an area:
 Customer accessibility
 Adequacy of transport/communication facilities
 Supply of skilled labor
 Population Trends
Definition:
 The systematic design, collection,
analysis and reporting of data and
findings relevant to a specific marketing
situation facing the company.
 Marketing research is the systematic
gathering and analysing the data about
the marketing problems faced by the
company.
 Gathering recording and analysing of all facts about
problems relating to the transfer and sales of goods
from producer to consumer.
 Market research will give you the data you
need to identify and reach your target
market at a price customers are willing to
pay.
 Marketing research is not a perfect science. It deals
with people and their constantly changing feelings and
behaviors, which are influenced by countless
subjective factors.
 To conduct marketing research, you must gather facts
and opinions in an orderly, objective way to find out
what people want to buy, not just what you want to sell
them.
1.Assessment of buyers
2.Sales Forecasting
3.Formulation of Plans
4.Advertising and Sales Promotion
5.Quality of Product
6.Marketing Channels
7.Marketing Problems
8.To know goodwill of the form
9. Reduction in Cost
1.Identifying the field of research
2.Data collection
3.Analysis of data
4.Recommendation
 Distribution channel is the route, pathway or
avenue through which the product of the company
reaches the potential customer.
The common channels of distribution for
consumers goods are:
1. Direct Channel:products are sold through manufacturer owned
stores, mail order sales, door to door sales, retail
shops of manufacturer
e.g. Textile mills.
2.
Manufacturer – Retailer – Consumer:e.g. Departmental stores, cooperative stores,
super-markets, etc
3.
Manufacturer – Wholesaler - Retailer – Consumer:Most common channel used for distribution.
e.g. Cosmetics, pharmaceuticals, groceries, etc.
4.
Manufacturer – Agent - Wholesaler - Retailer –
Consumer:e.g. Agricultural products.
5.
Manufacturer – Wholesaler - Consumer:This system is used when consumers are
institutions like hospitals, government, universities
or colleges, etc.
What is MARKETING ?
This is how a Professor explained Marketing Concepts to a class:
1. You see a Gorgeous Girl at a party. You go up to her and say: “I am very rich.
Marry me!”
– That’s Direct Marketing.
2. You are at a party with a bunch of friends and see a Gorgeous Girl. One of your
friends goes upto her and pointing at you says: “He’s very rich. Marry him!”
– That’s Advertising.
3. You are at a party and see a Gorgeous Girl.
She walks up to you and says: “You are very rich! Can I marry you?”
– That’s Brand Recognition.
4. You see a Gorgeous Girl at a party. You go upto her and say: “I am very rich.
Marry me!”
She gives you a nice hard slap on your face.
– That’s Customer Feedback.
5. You see a Gorgeous Girl at a party. You go upto her and say: “I am very rich.
Marry me!”
And she introduces you to her husband.
– That’s Demand and Supply Gap.
6. You see a Gorgeous Girl at a party. You go upto her and before you say: “I m rich,
Marry me!”, your wife arrives.
– That’s Restriction for Entering New Markets.