UNIT-I

Marketing Management
Definition: The art and science of choosing target markets and getting, keeping, rowing
customers through creating, delivering and communicating superior customer value.
(or)
Meeting needs profitably.

Marketing Mix
The Marketing Mix is also known as the 4 Ps, can be used by marketers as a tool to assist in
implementing the Marketing strategy. This method is used to generate the optimal response in
the target market by blending 4 variables in an optimal way. These four Ps are controllable
variables. These 4ps are adjusted on a frequent basis to meet the changing needs of the target
group and the other dynamics of the Marketing environment.
Product: A product is customer solutions and firms must define the characteristics of product or
service that meet the needs of customers
Price: It is the amount the customers willing to pay for the product. And firms must be
conscious in deciding the price of the product as customers are very sensible to it.
Place: Making the product available at right time, right place in right quantities.
Promotion: Its all about how chosen target markets are informed about organizations products
and services and includes tools like advertising, sales promotion, publicity, public relations and
direct marketing

Expanded Marketing Mix

The 7-Ps model is more useful for services industries and also for knowledge-intensive
environments.
5. People: All people directly or indirectly involved in the consumption of a service are an
important part of the extended marketing mix. Knowledge Workers, Employees, Management
and other Consumers often add significant value to the total product or service offering.
6. Process: Procedure, mechanisms and flow of activities by which services are consumed
(customer management processes) are an essential element of the marketing strategy.
7. Physical Evidence: The ability and environment in which the service is delivered, both
tangible goods that help to communicate and perform the service and intangible experience of
PREPARED BY E S RANGANADH, MBA (Ph.D) RONALD ROSS PG COLLEGE

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existing customers and the ability of the business to relay that customer satisfaction to potential
customers.

MARKETING TASKS: (OR) TASKS OF MARKETING

Developing marketing plan and strategies: The first step is to identify the long run
opportunities and core competencies for the company, thereby marketer designs marketing plans
and strategy and move forwards.
Capturing marketing insights: Every company needs reliable marketing information to
understand what is happening inside and outside the company.(marketing environment). MIS
also includes marketing research,which assess buyer wants and behaviour, actual and potential
market size.
Connecting with customers: Marketing must consider how to create best value for its
products/services for chosen target markets and develop, strong profitable, long run relationship
with customers.
Building strong brands: Every company must understand the strength and weakness of the
brands with customers. Companies must initiate new product development based on their
product positioning that helps build strong brands. At the same time they must think about life
cycle stages and competition and other activities.
Shape Market offerings: Firms offers variety of products to cater the needs of customers. And
product is the heart for any marketing program that includes product quality, design, features,
packaging and also provides support services which gives competitive advantage over the
competition. Pricing is the one of the critical decision, and it must based on their product
perceived value.
Delivering value: Every company must properly deliver value embodied in products through
careful identification and selection of channel intermediaries who performs channel activities. It
must also understand the various types of middleman like retailers, wholesalers and physical
distribution firms and how they make decisions.
Communication value: Firms need to communicate the value in products/services. Marketing
communication are the means by which firms attempt to inform, persuade and remind customers
directly or indirectly about the products or brands. One can opt for mass communication or
personal communication channels or integrated communication.
Creating long-term profits: Another important task of marketing is to have long-term view of
its products and profitability. Companies must continuously search for opportunities and develop
new products to meet the changing needs of consumers

PREPARED BY E S RANGANADH, MBA (Ph.D) RONALD ROSS PG COLLEGE

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PHILOSOPHIES OF MARKETING MANAGEMENT:

What philosophies should guide the marketing efforts. There six alternative concepts under
which organization carryout their marketing strategies.
Production Concept: The concept is of the idea that consumers will favor those products which
are widely available and highly affordable. Therefore, management should focus on production
and distribution efficiency.
Product Concept: The product concept hold that consumer will favor a product that offers Most
quality, performance and innovative feature. So under this, marketing strategy focuses on
product improvement through design, packaging and price.
Selling Concept: The concepts hold that consumers will not buy the products unless aggressive
marketing efforts are pursued. This concept is mainly applicable incase of unsought goods (like
insurance).
Marketing Concept: The concept holds that achieving goals depends o knowing the needs and
wants of target markets and delivering the desired satisfaction better than competitors. The
concept mainly focuses on customer.
Societal Marketing: The social marketing concept holds that marketing strategy should deliver
value to customers in a way that maintains or improves the customers and society well-being.

MARKETING STRATEGY:
Marketing strategy of a firm is the plan or instrument designed specifically for attaining the firms
marketing objectives. The companies marketing objectives will guide us where the firm want to
go, and marketing strategy will provide the path for getting there.
According to Philip Kotler, Marketing strategy is the basic approach that the business unit will
use to attain its goals and which comprises of elaborate decision on largest markets, market
positioning and mix and marketing expenditure allocation. Moreover, the marketer should take
care of the other two strategic aspects viz, expected environment and competitive conditions
while determining the marketing strategy.
Marketing strategy involves careful scanning of the internal and external environments. Internal
environmental factors include the marketing mix, performance analysis and strategic constraints.
External environmental factors include customer analysis, competitor analysis, target market
analysis, as well as evaluation of the technological, economic, cultural or political/legal
environment likely to impact success. A key component of marketing strategy is often to keep
marketing in line with a company's overarching mission statement.

PREPARED BY E S RANGANADH, MBA (Ph.D) RONALD ROSS PG COLLEGE

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Formulating marketing strategy consist of four steps:

Segmenting the market
Selecting the target market
Positioning the offer
Deciding the marketing mix
Marketing Program:
It is a means for attaining the marketing objectives. Once the marketing objectives are
determined, marketing program is prepared by

Identifying the activities to be performed

Mentioning the course of actions to carryout the predetermined activities in consistent

with the time horizon, and directing the marketing people to follow the mentioned course
of action towards the goal accomplishment.

MARKETING ENVIRONMENT
A companys marketing environment consists of the factors and forces outside marketing
that affect the marketing management ability to develop and maintain successful transactions
with its target customers(Kotler & Armstrong ).
Marketing Environment is composed of a micro environment and macroenvironment. The
Microenvironment consists of the following factors close to the company that affect its ability
to serve its customers.
1)
2)
3)
4)
5)
6)

The company
Suppliers
Marketing intermediaries
Customer
Competitors
Publics

Company: Marketing mangers while formulating the marketing program and plans must consider
other groups such top management, R&D, production and purchasing and accounting and think
about consumers and work in harmony
Suppliers: Suppliers are very important in value delivering system who provides resources for
the company to achieve its goals. Any change in the suppliers environment such as price change,
labour strike, supply shortage can impact marketing operations seriously.

PREPARED BY E S RANGANADH, MBA (Ph.D) RONALD ROSS PG COLLEGE

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Marketing intermediaries: Marketing intermediaries are the firms engaged in selling and
distributing the goods/services to end users. These include middlemen, physical distribution
firms, marketing service agencies, and financial intermediaries. Middlemen include retailers,
wholesales, dealers, and agents
Customers: The organization must know customers needs and wants, what they require and their
characteristics. Customers may come from consumer market, business, resellers, and government
markets.
Competitors: Marketing must try to gain strategic advantage over its competitors through proper
positioning of their offer in the consumer minds. While designing and implementing marketing
strategies, one has to track the competitors activities and strategies.
Publics: The companys marketing environment includes various groups such financial, media
government, citizen, and general public.
Macroenvironment:
Economic environment: Marketer requires to study the buying power of people. Changes in
income and spending pattern would influence marketing environment. So marketer has to study
income levels and distribution.
Political Factor: Most of marketing decisions are strongly affected by development in the
political environment. This environment includes government agencies and other pressure
groups that influence organizations.
Cultural factors: The cultural environment is made of up institutions and other forces that affect
societys basic values, perceptions, preferences and behavior. Marketer must focus on the
cultural shifts.
Technological factors: The major impact on the society is the technological advancement and
changes in product that effect on consumers. Technology will be advanced further and consumer
demands better and sophisticated product and services. These factors effect the company and
consumers.
Deomographic Environment: Demography means the study of human population in terms of age,
sex, occupation, income and other statistics. Any change in demographic environment would
impact business organizations. So, marketing manager has to identify the changes in these
factors that would affect businesses.
What is a market?
A market is an aggregate of people who, as individuals or organizations, have needs for products
in a product class and who have the ability, willingness and authority to purchase such products.
TYPES OF MARKETS
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Consumer market: It is made up of individuals and households that purchase products for their
own personal consumption.
Organizational/ Business market: It is made up of the following sub-sectors;
The industrial market:
It is made up of manufacturing concerns that purchase products to create their own finished
products.
The resellers market:
It consists of wholesalers, retailers, distributors, and dealers etc. that purchase products for resale
to make a profit.
The government market;
It consists of government departments and ministries that purchase products in order to offer
government services.
The institutional market;
It is made up of hotels, hospitals, schools, colleges and other institutions that also buy goods and
services.

GLOBAL MARKETING
A Global Firm is one that, in operating in more than one country, captures R&D, production,
logistical, marketing and financial advantages in its costs and reputation that are not available to
purely domestic competitors. Global firms plan, operate and coordinate their activities on a
world wide basis.
Each national market has unique features that must be grasped. A global firm has to take into
account economic, political legal and cultural factors of target country while planning its
expansion programmes.
Economic Environment:
Three characteristics reflect a countrys attractiveness as an export market.
Size of countrys population: Large countries are more attractive to exporters than small
markets.
Countrys industrial structures, four types of industrial structures can be distinguished: Subsistence Economics: - In Subsistence economics the vast majority of people engage
in simple agriculture. They consume most of their output and barter the rest for simple
goods and services. They offer few opportunities for exporters.
Raw Material Exporting Economics: - These economics are rich in one or more natural
recourses but poor in other respects. Much of their revenue comes from exporting these
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resources Examples are Chile (tin and copper); Zaire (rubber). These countries are good
markets for extracting equipment, tools and supplies, materials handling equipment and
trucks. Depending on the number of foreign residents and wealthy native rulers and
landlords, they are also a market for western style commodities and luxury goods.
Industrializing Economies: - In an industrializing economy, manufacturing begins to
account for between 10 and 20 percent of the countrys grogs national product. Examples
include India, Egypt etc. As manufacturing increases, the country relies more on imports
of textile raw materials, steel and heavy machinery and less on imports of finished
textiles, papers products and automobiles. The industrialization creates a new rich class
and small but growing middle class, both demanding new types of goods, some of which
can be satisfied only by imports.
Industrial Economies: - Industrial economies are major exporters of manufactured goods
and investment founds. They trade manufactured goods among themselves and also
export them to other type of economies in exchange of raw materials and semi-finished
goods. The large and varied manufacturing activities of these industrial nations and their
sizable middle class make them rich markets for all sorts of goods.

Economic characteristics of the country: characters like income distribution. Income

distribution is related to a countrys industrial structure but is also offered by the political system.

Political Legal Environment

A company should consider four factors in deciding whether to do business in a particular
country.
Attitude towards International Buying: - Some nations are very receptive, indeed encouraging to
foreign firms and others are very protectionist. For example, Mexico for a number of years has
been attracting foreign investment by offering investment incentives, while India in the post
required the exporter to cope with import quotes, blocked currencies and so on.
Political Stability: - Government in some countries changes hands, sometimes quite violently.
And with changes in government foreign trade policies also change. The foreign companys
property might be expropriated, or its currency holdings might be blocked. In such conditions
international marketers might prefer export marketing to direct foreign investment. They will
convert their currency rapidly. As a result, the people in the host country pay higher prices, have
fewer jobs and get less satisfactory products.
Monetary Regulation: - Sellers want to realize profits in a currency of value to them. Foreign
firms want payments in hand currency with profit repatriation rights, but that may not be
available in many markets.
Government Bureaucracy: - A fourth factor is the extent to which the host government runs an
efficient system for assisting foreign companies: quick licensing procedures, efficient custom
handling adequate market information and other factors conductive to doing business.

Cultural Environment: - Each nation has its own values, customs and taboos. Foreign
business people, if they are to be effective, must drop their ethnocentrism and try to understand
the culture and business practices of their hosts, who often out on different concepts of time,
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space and etiquette. The way foreign consumers perceive and use certain products must be
checked out by the seller before planning the marketing programme.

PREPARED BY E S RANGANADH, MBA (Ph.D) RONALD ROSS PG COLLEGE

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