UNIT I

Marketing Management

Marketing management is the process of planning, organizing, and controlling an organization's

marketing activities. The goal is to increase sales and profits by building customer relationships and
creating a positive image for the company.

• Business development: Strategic initiatives like mergers and acquisitions, and entering new
markets

• Brand management: Maintaining a brand's value over time

• Product development: Bringing new or improved products to market

How it works

• Market research

Analyze customer data to understand their buying behavior and develop a marketing strategy

• Marketing plan

A detailed document that outlines how to market products, the budget, and campaign dates

• Marketing strategy

A plan that specifies how to reach customers and what content to show them

• Marketing mix

A combination of product, price, promotion, place, people, packaging, and process.

Marketing jargon
Marketing jargon refers to the specialized marketing words, phrases, and buzzwords commonly
used by marketers. Consequently, this language can verge on being unrecognizable to newcomers,
but understanding it is crucial for success in the field.

Helps marketers communicate efficiently about campaigns, strategies, and data analysis.

1. SEO (Search Engine Optimization): The art and science of getting your website to rank higher
in search results. Think of it as ensuring your website is at the top of the search result when
someone looks for something related to your business.
 2. PPC (Pay-Per-Click): An online advertising model where you pay each time someone clicks
on your ad.
3. CRM (Customer Relationship Management): A tool that helps you manage all your customer
interactions—emails, calls, purchases, etc.
4. Social Media Marketing: Using social media platforms such as Facebook, Instagram, and
Twitter to connect with your audience and promote your brand.
5. Content Marketing: Creating and sharing valuable content (like blog posts, infographics, or
videos) to attract and engage your target audience.
6. Email Marketing: Sending targeted emails to your audience to promote your products, share
company news, or build relationships. Hence, it serves as a personalized message straight
to your customer’s inbox.
7. Lead Generation: The process of attracting potential customers who might be interested in
your product or service.
8. Brand Awareness: How familiar people are with your brand and what it stands for. Also, the
goal is to make your brand instantly recognizable.

Key concepts of Marketing

i) The Production Concept

The Production Concept is based on the idea of manufacturing the products at a cheaper
rate to make them readily available and affordable to the mass population. This concept focuses on
production processes and quantity over quality.
 ii) The Product Concept

The product concept is the opposite of the production concept and emphasizes that buyers
prioritize a product’s features, quality, and benefits. Product-focused customers seek innovation and
uniqueness rather than seeking the lowest price.

This marketing strategy thus focuses on continuous improvement of the product and its
innovation.

One best example of this type of marketing concept would be Apple.

iii) The Selling Concept

The Selling Concept believes in the philosophy that the marketing strategy needs to focus on
getting the consumer to the actual transaction, company wants or needs, buying behaviour or
making a sale, without regard for the customer’s needs or the product quality.

This concept believes that customers will not purchase an enough quantity of a product or service
unless they are actively convinced and persuaded to do so.

Cold calling or emailing on a large scale without properly qualifying leads also aligns with
the sales concept.

iv) The Marketing Concept

While the selling concept is about what the company wants or needs, the marketing concept
focuses on the customer. This concept focuses on enhancing a company’s capacity for competition
and maximizing profits by marketing the ways in which it can provide its customers with higher
value than its competitors. Knowing the target market, assessing its requirements, and efficiently
satisfying those wants and needs is key.

v) The Societal Marketing Concept

The idea behind the societal marketing concept is based on the idea that marketers have a
moral responsibility towards society and to promote what’s good for people over what people may
want, regardless of what the company’s sales goals might be. It is an emerging concept that takes
into account the welfare of the entire society.

Market Orientation Definition

Market Orientation is a marketing concept wherein the company focuses on identifying the customer
needs and preferences and, accordingly, designs and sells products and services based on those
needs and preferences with the primary objective of earning profits.

This process is conducted at different stages and differently depending on the company’s financial
and market standing.
Characteristics Of Market Orientation

#1 - Customer-Oriented

The strategy is based on the demands and requirements of the customer and advises that
enterprises shall, to be profitable, turn their focus on customer preferences. The enterprises that
follow this strategy deploy their resources to fulfil customer needs.

#2 - Realizes Competition

This strategy also realizes that it is vital to identify competition and threats to the business, apart
from identifying customer needs.

A business that cannot identify potential threats may incur damage in the future.

#3 - Product Development

The enterprises which follow this strategy are involved in product innovation and development to
enable themselves to meet the changing needs of customers.

#4 - Functional Coordination

In an enterprise that follows the strategy, the different functional departments tend to coordinate
with each other for the excellent quality of goods and services.

Marketing Process

The marketing process refers to the series of steps that assist businesses in planning, analyzing,
implementing, and adjusting their marketing strategy.

Steps in the Marketing Process

Analysing the Target Market/research – What the Customer Wants and Demands

When it comes to marketing in any industry nowadays, it is about being as customer-centric as

possible. The marketing process ideally starts with determining the target market, what are
customers looking for, their purchasing power, etc

• Needs (States of felt deprivation): These include physical needs for food, clothing, shelter,
warmth, and safety, as well as knowledge and self-expression. Marketers cannot generate
these needs because they are a fundamental component of human existence.

• Wants (Shaped by culture and individual personality): Wants are nothing but an evolved form
of needs; however. they are shaped by society or culture.

Ex. I want a car.

 • Demands (Backed by buying power): Demand is an index of people’s strong purchasing
power. When an enterprise addresses the demands of its clients, it brings them happiness
which is more than just satisfaction.

Crafting an Outline of Marketing Strategy

When developing a positioning strategy, a company envisions the impression it wants to make on
customers. Positioning requires a deep awareness and understanding of both the marketplace and
consumers. The company then plans how to create that perception through advertising and
marketing messages.

• SWOT analysis: The strengths, weaknesses, opportunities and threats (SWOT)

analysis technique analyzes the four elements to assess and adjust company positioning.

• PEST analysis: This analysis identifies overarching or environmental opportunities and

threats by focusing on political, economic, sociocultural and technological (PEST) indicators.

Create a marketing plan

A marketing plan is an actionable process that the business can implement, measure, adapt
and improve to reach its customers and meet its objectives.

• Brand identity
This refers to the tangible elements that help convey a company's desired image to consumers.
• Target audience
The target audience is the group of people most likely to buy a company's product or service.
• Marketing goals
These are the results a company hopes to gain from its marketing efforts, such as
increased brand awareness, improved customer engagement or boosted sales.
• Budget
The company's strategic tactics depend on the organization's available budget and resources.

Determine which marketing strategies to use

Organizations often use the following marketing strategies, known as the four Ps of marketing, to
identify their ideal marketing activities:

Product strategy

The product is the good or service the company provides to consumers, and it typically fills a need or
gap in the marketplace.

Price strategy

The company provides the product or service at a cost that allows for profit.
Place strategy

This refers to where consumers find the product, such as in stores or catalogs. The distribution
channels necessary for marketing.

Promotion strategy

A company uses promotion strategies to make consumers aware of the product or service.
This usually includes advertising and other promotional activities, like offering sales.

Implement the marketing plan

After devising a marketing plan and establishing strategic marketing tactics, the business
can complete the following actions:

• Determine and obtain the budget, platforms and staff required to fulfill the plan

• Create content types and promotion plans and a timeline for accomplishing these plans

Evaluate results and realign as necessary

The final step of the marketing process is reviewing and evaluating results. This includes tracking
elements like how many customers engage with an ad or whether the company achieved its goals.
After analyzing the data and creating detailed reports, the organization can adapt the marketing plan
to maximize future profitability.

Understanding Marketing as Creating, Communicating, and Delivering Value

"Marketing as creating, communicating, and delivering value" means that the core function of
marketing is to identify and develop products or services that hold genuine value for customers,
then effectively communicate those benefits to the target audience, and finally ensure the product
or service is accessible to them in a way that maximizes its perceived worth.

• Creating Value:

This involves understanding customer needs and developing products or services that address
those needs, providing unique features, quality, and benefits that differentiate them from
competitors.

• Communicating Value:

Once the value proposition is established, marketing activities like advertising, public relations,
content marketing, and social media are used to clearly convey the benefits of the product or
service to the target audience, highlighting how it solves their problems or improves their lives.
 • Delivering Value:

This refers to the process of making the product or service readily available to customers through
distribution channels, ensuring a smooth purchase experience, and providing excellent customer
service to maintain value perception.

SELLING VERSUS MARKETING

 GOODS VS SERVICES

Components of environment/Knowing the marketing environment

"Knowing the marketing environment" means understanding all the internal and external factors that
influence a company's ability to market and sell its products or services, including social, economic,
technological, political, cultural, competitive, legal, and regulatory forces, which are crucial for
developing effective marketing strategies and adapting to changing market conditions.

Key aspects of the marketing environment:

• Internal factors:

These are controllable elements within a company like its organizational structure, brand image, financial
resources, research and development capabilities, and employee skills.
 • External factors:

These are factors outside the company's direct control, including:

❖ Microenvironment: Customers, suppliers, distributors, competitors, and the media, organisation

❖ Macroenvironment:

1) Demographic factors: Age, gender, income, education level of the population

2) Economic factors: Interest rates, inflation, unemployment levels

3) Socio-cultural factors: Values, beliefs, lifestyles, trends within a society

4) Political and legal factors: Laws, regulations, government policies impacting business
operations

5) Technological factors: New inventions, innovations, technological advancements

Factors affecting Marketing Environment

• Demographic factors

Demographic factors in the social sciences refer to characteristics such as work status, place of living,
gender, age, marital status, and level of education that influence individuals' attitudes and decisions
regarding various interventions/interfere and behaviours.

Geographic segmentation ( regions, cities, countries, or neighborhoods.)

Psychographic segmentation(personality traits, interests, beliefs, attitudes, and lifestyle)

Behavioral segmentation (For example, a home goods retailer might target customers who make
frequent purchases. )

Benefit segmentation - Dividing the market by the benefits or advantages sought from a produc

Gender segmentation (For example, men and women might have different needs, desires, and
purchasing behaviours for certain products or services. )

• Age:

• Young adults may prioritize tech-focused products and experiences.

• Retires might favor healthcare products and leisure activities.

• Income:
• High-income earners may purchase luxury goods while lower-income individuals
opt for more budget-friendly options.
 Education:

• Higher education levels can correlate with a preference for complex products or
services requiring greater knowledge.

Location:
• Urban consumers might have different needs compared to rural residents regarding
transportation and entertainment options.

Political and legal factors

• Government policies: Government policies can impact a business's ability to serve

customers and make a profit.
• Taxation: Taxation can impact a business's profits.

Legal factors

• Legal systems: A country's legal system can impact a business by regulating how laws are
created and enforced.
• Copyright and trademark laws: Copyright and trademark laws can protect a company's
ownership of its products or brands.

Technological factors

• New ways of producing goods and services: New technologies can change how
products are made. For example, automation can replace human labour in manufacturing,
distribution, and supermarkets.
• New ways of distributing goods and services: New technologies can change how products
are distributed.
• New ways of communicating with target markets: New technologies can change how
businesses communicate with their target customers.

Economic factors

• Purchasing power: Economic factors can impact a customer's purchasing power and
spending patterns.
• Inflation: Inflation can impact a company's pricing and supply/demand

Social factors

• Cultural norms: Cultural norms and expectations can impact a company's marketing.
• Health consciousness: Health consciousness can impact a company's marketing.
• Population growth: Population growth and decline can impact a company's marketing.
Need for analysing the marketing environment
Analyzing the environment is crucial for businesses to identify potential opportunities and threats
within their market, allowing them to make informed strategic decisions, adapt to changing
conditions, and ultimately improve their chances of success by mitigating risks and capitalizing on
emerging trends; essentially, it helps businesses stay competitive and relevant by understanding
the external factors impacting their operations.

Key reasons to analyze the environment:

• Identify opportunities:

By understanding market trends, consumer behavior, and emerging technologies,

businesses can spot potential new markets, product lines, or services to develop.

• Mitigate risks:

Environmental analysis helps identify potential threats like regulatory changes, economic
downturns, or competitor actions, allowing businesses to proactively plan for and manage
risks.

• Competitive advantage:

By staying ahead of market trends and adapting to changing conditions, businesses can gain
a competitive edge over rivals.

• Regulatory compliance:

Monitoring legal and regulatory landscapes enables businesses to operate within legal
boundaries and avoid potential legal issues.

• Strategic planning:

Environmental analysis is a key component of strategic planning, providing the necessary

information to develop effective strategies aligned with the external environment.