Marketing Management

Marketing Management
Class - 1
Date - 2nd July, 2021

Lecturer - Sanjeev Verma
Email ID - [email protected]
Book - Marketing Management by Philip Kotler, reference books, research articles (journals -
research oriented with data and modeling and journals - practitioner oriented like HBR)
Section - H
Paper - Reviews by Sanjeev Verma
Contact number of Yasham (CR) - 9636838568
Contact number of Yashica (CR) - 7838136216
Contact number of Sanjeev Verma (Professor) - 900430530
About Sanjeev Verma - Teaching in NITIE since 2006, conducting executive training sessions
for various corporations (P&G, HUL, ABG etc). Has offered consultancy too, in sectors like
FMCG, Aviation, pharma, healthcare, oil & gas to >24 companies. Has been teaching for 2
decades and is a board member + lecturer professor across various B Schools. An active
researcher. He is available for 1-to-1 sessions with students. Recently working on AI in
marketing. Focus lies in customer experience, engagement and then to customer satisfaction.
Academicians are in 4 quadrants (play an important role in shaping personalities). Many
students want to go to consulting firms, manufacturing domains and do higher education.
Encouragement of peer learning via bringing relevant background experience.

Remain updated about happenings at national level, about people at IIMs and IITs. Compete
with these people, don’t remain confined only to this class. And look out how you stand, by
participating in competitions.
For some people, marketing is sales, customer engagement, promotion, advertising. But those
are subsets of what marketing is. Not the holistic definition.
What is the product, function, customer? - (Discussed later)
Why is it an organizational function? Because it’s a discipline, a department where people
perform the same function for organizational benefits
Philip Kotler (marketing guru) has said that marketing has to be defined on an organizational
level, not personal level.
Marketing isn’t a one time activity (like sales), it is more broader and holistic. It encompasses a
set of processes, which has 3 elements - creation, delivery, communication. The future concepts
of marketing refer to these 3. Every function of marketing like STP is covered by these 3
elements. These are the means for fulfilling needs and delivering satisfaction to the customers.
But we as marketers aren’t focused on needs completely, we focus on value. We don’t focus on
the product, but on value creation to the customer.
Let’s say we want to move from point A to B - we have multiple transportation choices. So
for the same need, we have a combination of actions - product (own car) / service (public
transport) / self - service (walking). So purpose, need, want, demand is more important than the
product.
Why is tech evolving up so fast and so are the startups?

They provide value, not technology. They position products as values to the consumers.
Products are means of satisfying customers.
Value = Benefit / Cost
Money is one component of cost. Other components are time we spend, research we do behind
final choice by analysing social impact, post purchase service before choosing the product.
C2C communication is playing a big role these days via social media, because a peer review
gets done and value addition is better visible. That’s why many open source and crowdfunding
platforms are also coming up.
For delivering value, we talk about value chains.
For communicating value, we use promotions, discounts and campaigns.
Why value?
We want to manage customer relationships via engagement in satisfaction, trust and loyalty. We
are managing customer relationship, because we want value for company and stakeholders
(everybody in the value chain)
Class - 2
Date - 2nd July, 2021
The definition of marketing management is a globally accepted one.

Set of processes - sales, advertising, branding, product management; or the microscopic
versions of marketing
CCD - Create, Communicate, Deliver
We create value for the customer.
Benefit is not only utilitarian benefit. It can have a hedonic, cognitive and emotional benefit also.
Hedonics are heuristics. Advertisements combine different kinds of appeals and create a trigger
to purchase the product - hedonic, utilitarian, functional benefits are targeted and marketed to
the consumers.
How can we entice them to purchase? - A module 6 subject.
Marketing mix - Combination of various strategies to offer values - product, price, promotion,
place, people, process, physical evidence strategy
Advertising is a marketing tool / communication strategy to communicate with consumers.
Marketers engage advertising and hues and create content, message to create a superior value
proposition to the consumers.
SOR Model - Stimuli, Organism, Response Model. Stimuli through marketing, so that the
organism (human) can use hedonic and cognitive hues and take a collective decision to
purchase the product.
C2C - people share experience - not direct marketing. We can get aspects of the product
Marketing is anything which offers solution to a problem - it can come in various forms like
products, services, events etc
Events - re-creation / entertainment for rejuvenation of customers
Experiences - virtual tourism (covid has impacted the tourism and hospitality sector) through a
travel agent. Customers can use VR by sitting at home. And virtually experience those places.
Consumer behavior - Is concerned about human needs, given by Maslow’s hierarchy of needs.
In response to needs, we purchase products.
Need - A basic deprivation of life. There is a need to drink water.
Want - We have a desire to satisfy the need with this particular alternative. Say, we want to
drink pure, mineral water only through Bisleri.
Demands - Want becomes supported by affordability to pay / purchasing power.
Food, water, shelter, oxygen are the basic human needs, starting from the time of evolution
(biological needs). There are certain psychological needs too, like smartphones, cars,
connectivity etc.
Netnography - understanding behavior via net response - how do we behave / respond on the
internet?
Sir’s papers (Search in those journals) -

● Journal of Internet Commerce
● Journal of Philanthropy and marketing
● AI and Marketing
Kingfisher Airlines boosted their sales and customer acquisition by introducing imli candy in
their travel portfolio.
Enticements are value perceptions and then marketers communicate in a way so that
customers buy them.
Difference between well established and newly introduced product

Product life cycle has introduction, growth, maturity / saturation decline stages. All products
pass through these stages. A newly established product is in the introduction stage. That
product has to differentiate on 2 strategies - value attributes (different from matured products.
JND - Just Noticeable Differences need to be present)
STP
Segmentation - Market has demographic dividends - clustering consumers into different
segments - appropriate for my products. There are different segments for These clusters /
buckets are known as segments. We then match the product and segment profiles.
Targeting - From all available segments, we target the segment which is more likeable to
purchase our product and profitable for us.
Positioning - And then position ourselves, create a unique propositioning into our targeted
segment
Value and Brand

Anything we offer to consumers as a solution to their problems is called value.
When we create a unique image (marketing, names, campaign) for the value, we call it a brand.
Brand gives a trust
Customer Value Triad

How can a customer get value / higher value ?
It is via quality, service and price.
Satisfaction
It uses Expectancy disconfirmation model - Every consumer has certain expectations. It can
be from the points of the customer / consumer. All human brains have 2 states of mind - before
purchasing state, which are expectations and after purchasing state, which is experience. We
compare experience with expectation.
If experience = expectations = satisfaction
If experience < expectation = dissatisfaction
If experience > expectation = delightfulness
Customer and consumer

Customer is someone who is involved in the purchase cycle - he/she can be a buyer, influencer
and decision maker.
Consumer is someone who finally uses / consumes the product.
We as marketers need to focus on both consumer and customer.
Channels - Bridge gap between provider and user.

Communication channel - Establishment of comms with our consumer. Social media,
previews, outdoor media. We communicate with other stakeholders / shareholders. Social
media has a 2 way communication. Traditional media is 1 way communication.
Distribution channel - Distributes the product to our final consumer. Bridges the supply of
products between manufacturer and consumer
Service channel - Service can be product allied service or intangible service. We offer service
to consumers via this channel.
For eg, in education industry, we have primary sales provider / franchisee
Production Strategy
Producers feel they have a perception about consumers and that consumers will buy those only.
Assumption that consumers are passive.They keep on focusing upon production efficiency and
mass distribution and building economies of scale. Typically price sensitive industries.
Product Strategy
Consumers will buy products that have quality and features and improve those features over
time. Consumers are the ultimate decision makers.
Hot marketing - prioritize production over product

Branded firms - prioritise product over production
Selling Concept
They believe in aggressive sales and promotions. Pitching and pitching. Their aim is to make
the sale happen.
Marketing Concept
Focus on customer needs. Not on product. Find right products for customers, not right
customers for products.
Push - production and selling

Pull - product strategy and buying
Marketing insights - marketing research
These are the tasks done in marketing
Big firms go on brand dimension. They capture database, they don’t prefer cold calls, or show
professionalism in their calls.
Class - 3
Date - 9th July, 2021

Section - H
Task - Chapter 2 of Kotler Keller and submit PPT of Nike’s case study’s marketing strategy
This is an HBR Paper

One of the new realities which is changing the world is COVID - It has led to the rise of
digitization and digital mode of life - teaching, training, consulting, office work - interaction,
transaction, exchange. If someone doesn’t think in terms of value, then he/she is bound to fail.
Market reality should be known by any manager, in whatever domain.
A group of researchers researched 439 organisations globally - changes in business world and
level of preparedness of these marketing organisations.
Focus on value makes an org flexible to changes and makes them think about the
improvisations needed in customers’ lives
Digitization, automation, sustainability
Marketing Science Institute - brings a lot of industry practitioners for brainstorming - they have
kept technology and sustainability in their agenda
Customer value and organizational value and finding an intersection (value stream mapping)
between the two values
NIKE CASE STUDY

Physical innovation - waffle patterned sole and lightest shoes
Endorsements - Collaboration with Jordan and NBA, bringing out a new line of basketball
shoes called Air Jordan
Imbibing technology - partnership with apple - nike + sensor, fuel band - (allows people to
keep track of health goals - fuel band) , (tracks their progress, provides entertainment and social
connections - nike+ sensor)
Sustainability - lesser competition for resources, lesser production costs, non-reliance on
scarce resources; leading to reduction of water, chemicals, waste in their Color Dry System
Mission, vision, marketing strategies for these companies, chances of innovating for product
improvement.
Nike is the market leader, competition includes Adidas, Reebok, Puma
How to decide if someone is a market leader ? - Via their market share
Problem with the case study -
How would we approach developing a marketing strategy ? - which markets shall we enter?
How to be a market leader in that market? Framework of making marketing strategy (how
should I communicate and deliver value)
Don’t confine yourself with information given in caselet for formulating a marketing strategy
Short term plan is tactical plan, long term is strategic plan. Sustainable competitive advantage is
important to ensure our product innovation isn’t copied
STEP 1 - DEFINING THE MISSION AND VISION STATEMENT
Every org has a mission and a vision - what exactly they want to achieve, whats is the overall
objective of the company
STEP 2 - SITUATION ANALYSIS
Situation analysis can be done using PESTEL analysis. Market environment scanning, both
outside and within the organisation. PESTEL is applicable for external market analysis
PESTEL - Political, economic, social, technological, environmental, legal environment
In India, sensors in Nike’s shoes might not
Strengths, weaknesses lie within
Opportunities, threats lie outside
Green one is buyer power
STEP 3 - IDENTIFYING AND EVALUATING OPPORTUNITIES
(POSITIONING)
STEP 4 - IMPLEMENTATION
STEP 5 - EVALUATING PERFORMANCE
BCG Matrix
ANSOFF MATRIX
Class - 4

Section - H
Presentation by Vinayni
For solving any case study, we have different approaches. The only difference is relative
superiority of solutions - Vinayni used Ansoff Matrix and MarCom mix approach in terms of new
products and markets, collaborators roles
Presentation by Shubham Singh
Presentation by Lekha Warrier
Presentation by Vivek Kumar
Class - 5

Section - H
Decision is selection of best alternative
First thing is introspection by empathising with customers. The producers are the business
visionary leaders, can foresee the future and can know what can be the trend. Sometimes
called intuition / learning curve. They think of certain ideas - alternate fuels, quantum computing,
air cars etc
Leaders sense the needs and then call for brainstorming sessions within the company for
purification, internal introspection and building of ideas.
Once it’s said yes (due to trend / need), they sense the market via some research via their own
company / 3rd party marketing agencies. This is retrospection - reflecting on own experience
and asking the opinions, asking the expectations
Where is the need gap? Latent needs? What’s not being offered by some products / services?
What more could have been done?
Catch the expectants who are not planning - for they dream. This is called prospection -
something which adds value to their lives (in case of car - saving time / sustainability) These let
us know the latent need in the markets and give the researchers the direction.
TV Projo is looking for forward integration
● Retrospection - ask people to reflect their previous experience

● Introspection - happening at an internal level. Other 3 happen at an external level.
Internal - inside world. Not asking anybody external for their opinions. Is there any need?
But for validation of our thought process, we need the other 3.
● Perspective - angle of view from which the research is conducted
● Prospective - It observes the study group for the period of research and then come with
inferences from the observations.
They haven’t done prospective research. The research process of Alpha Corp was demand
based research. They hired an agency for conducting research.
How to determine sources of information?

In our times, we might take data from ecommerce firms. We will collect data, build models.
SM marketing, analytics, ethnographic / netnographic marketing.
After this, we determine the research process. Analyze the data. And then come up with the
right ideas to give to the marketing team.
Think in terms of mind share - loyalty. When consumers find a better version of a need, they will
switch brands. Think of superior values and then provide recommendations to the marketing
team. Can I use Cloud Computing / Quantum Computing / Blockchain for market research?
Secondary is something which is not collected first hand (via internet / journals etc)
When we collect it ourselves, it is primary data.
Field based data - collecting data from the market via survey tools.
Quantitative data and qualitative data discrimination depend upon collection and usage.
We don’t rely on a single methodology - quantitative or qualitative. We may take both and can
apply a mixed research method. We can use objective and subjective assessment of
phenomena.
Recommender system’s success - Increase time spent by consumers on screen. It creates
interesting reco and maps the catalogue of ecommerce inventory with the latent needs of
customers.
Converting quali into quanti is possible but vice versa is not possible.
I will get text mining or text analytics - that is the future. Data in the future will become qualitative
in nature, that’s why we talk about humanising the technology
Qualitative - why (latent needs)
Quantitative - what (existing)
Class - 6

Section - H
Case study discussion

Class - 7

Section - H
Product is the manifestation of value for customers

Competitiveness is our response to the needs of the market
In order to execute marketing strategy, we need to work on marketing mix elements (4P)
Additional P’s are added to marketing strategy for non physical products (7P)
How to calculate / create value proposition
Value = Total benefit / Total cost
It can be utilitarian / financial benefits

Cost can be in terms of time / money etc
Customer orientation is psychologically understanding them - UI / ethnicity / geography
Brand is an identified entity of a company.
Products carry a personality - it’s checked whether package personality matches individual
personality or not
We can also connect products with nature
This is a product hierarchy
The nucleus of a product is not a tangible / intangible benefit, it is the benefit being offered to
consumers
Generic product - People come to restaurants, say, for dining / partying / meeting. It has
common attributes across all the brands. No food, no restaurant
Expected level product - In a restaurant, we think of ambience / cutlery / waiter around us, apart
from food.
Augmented product - product builders are exceeding customer expectations. Sweet after dinner
from a restaurant, or artifact etc
Potential product - Human brain is never satisfied. What can be done in the future - potential
product. It addresses latent needs
Depth in FMCG is more complex than product width
Product lines - number of products (length)
Product depth - variants
SKUs fall within depth
There is a relationship between product life cycle and BCG matrix
Product extension can be done by incremental innovations
Harvest phase is when we draw maximum profits
Class - 8

Section - H
Case Study discussion of CavinKare.

Class - 9
Date - 3rd August, 2021

Section - H
Creation of value requires understanding of customers.

Focus, needs, demands, wants, context need to be understood and is a fundamental part of any
marketing mix strategy.
Value is the focus of customer centricity.
Customer Lifetime Value (CLTV) - Looking at a customer in the longer run, in terms of
profitability. Customer value increases if they stay for longer. That’s why customer retention is
important.
Social media has increased the number (50-100).
This is called Leaky Bucket Theory.
Price isn’t the only way for marketing strategy.
The tendency to do experimentation reduces and the tendency to buy more increases (in terms
of volume and frequency) as time passes by. They also share referrals. Dissatisfied customers
will share their negative experience. But satisfied ones may or may not pass positive referrals.
There is something called advocate customers, who spread our positive referrals.
CLTV Parameters = Frequency, volume, age factor, exponential factor in time scale (like price
factor).
Customers are experience sensitive, not only price / brand / product sensitive.
Fwd tracking - citations are given below a paper. Apply a recency factor in a paper - current
research going on in the phenomenon in recent times. Then meta synthesis and meta analysis
starts. The concepts of CLTV are applicable even today.
Managing customer expectations by HBR
This is a creative thinking technique.

Value = Total customer benefit / Total customer cost
The attributes are given different weightages in the equation.

For example, Maruti Suzuki doesn’t offer the best product, but it scores high on reliability and
service and quality. It is a market leader.
Class - 10
Date - 6th August, 2021

Section - H
Case Study discussion of CavinKare part B.

Developing Pricing
Strategies and Programs
Synonyms for Price
 Rent  Dues
 Tuition  Salary
 Fee  Commission
 Fare  Wage
 Rate
 Toll
 Premium
 Honorarium
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
14-3
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
14-4
Step 1: Selecting the Pricing Objective
 Survival
 Maximum current profit
 Maximum market share
 Maximum market skimming
 Product-quality leadership
Step 2: Determining Demand
Price Sensitivity
Estimating
Demand Curves
Price Elasticity
of Demand
Inelastic and Elastic Demand
Step 3: Estimating Costs
Types of Costs
Accumulated
Production
Activity-Based
Cost Accounting
Target Costing
Cost Terms and Production
 Fixed costs
 Variable costs
 Total costs
 Average cost
 Cost at different
levels of
production
Cost per Unit as a Function of
Accumulated Production
Step 5: Selecting a Pricing Method
 Markup pricing
 Target-return pricing
 Perceived-value
pricing
 Value pricing
 Going-rate pricing
 Auction-type pricing
Setting Price Based on Costs
Break-Even Chart
Step 6: Selecting the Final Price
 Impact of other marketing activities

 Company pricing policies
 Gain-and-risk sharing pricing
 Impact of price on other parties
Price-Adaptation Strategies
Geographical Pricing
Discounts/Allowances
Promotional Pricing
Differentiated Pricing
Promotional Pricing Tactics
 Loss-leader pricing
 Special-event pricing
 Cash rebates
 Low-interest financing
 Longer payment terms
 Warranties and service
contracts
 Psychological
discounting
Differentiated Pricing
 Customer-segment pricing
 Product-form pricing
 Image pricing
 Channel pricing
 Location pricing
 Time pricing
 Yield pricing
Profits Before and After a Price
Increase
Increasing Prices
Delayed quotation pricing
Escalator clauses
Unbundling
Reduction of discounts
Brand Leader Responses to
Competitive Price Cuts
 Maintain price
 Maintain price and add value
 Reduce price
 Increase price and improve quality
 Launch a low-price fighter line
9/3/2021
Marketing communications are the

means by which firms attempt to inform,
persuade, and remind consumers, directly
or indirectly, about the products and
brands they sell.
Any Paid Form of Non-personal

Advertising Presentation by an Identified
Sponsor.
Short-term Incentives to
Sales Promotion Encourage Trial or Purchase.
Protect and/or Promote

Public Relations Company’s Image/products.
Personal Selling Personal Presentations.
Direct Communications With

Direct Marketing Individuals to Obtain Immediate
Response.
9/3/2021 18-3
1
9/3/2021
Selective Attention
Selective Distortion
Selective Retention
9/3/2021 18-5
Step 1. Identifying the Target Audience
Step 2. Determining the Communication Objectives

Buyer Readiness Stages
Awareness
Knowledge
Liking
Preference
Conviction
Purchase
9/3/2021 18-6
2
9/3/2021
Message Content
Rational Appeals
Emotional Appeals
Moral Appeals
Message Structure
Draw Conclusions
Argument Type
Argument Order
Message Format
Layout,
Words, & Sounds,
Body Language
Message Source
Expertise,
Trustworthiness,
Congruity
9/3/2021 18-8
Personal Communication
Channels
Nonpersonal Communication
Channels
9/3/2021 18-9
3
9/3/2021
% Of
Affordable
Sales
Competitive Objective
Parity & Task
9/3/2021 18-10
10
Advertising
Public, Pervasive, Amplified Expressive, Control
Sales Promotion
Attention Catching, Incentive, Invitation
Public Relations & Publicity

Credibility, Ability to reach hard to find buyers, Dramatization
Personal Selling
Personal Interaction, Cultivation, Response
Direct Marketing
Nonpublic, Customized, Up-to-Date, Interactive
9/3/2021 18-11
11
12
12
4
9/3/2021
Step 7. Measure Results
Step 8. Manage the IMC Process
9/3/2021 18-13
13
Type of Buyer/
Product/ Readiness
Market Stage
Push vs. Pull Product Life-

Strategy Cycle Stage
9/3/2021 18-14
14
5
Class - 14

Book - Marketing Management by Philip Kotler, reference books, research articles
(journals - research oriented with data and modeling and journals - practitioner oriented
like HBR)
Section - H
Case Study discussion of Loreal Paris.

Class - 15

Book - Marketing Management by Philip Kotler, reference books, research articles
(journals - research oriented with data and modeling and journals - practitioner oriented
like HBR)
Section - H
Class - 16

Section - H
Book by Bert Rosen Bloom - Marketing channels
It is how to provide accessibility of our products and services to consumers via marketing
channels.
Zero channel system - Utilisation of sales force to reach out to consumers directly, eg - Eureka
Forbes (they are using other channels too)
FMCG - multiple channels. Based on the products, channels are decided to reach out.
There are ecommerce, franchisee, agents
We have B2B - B2C, product - service types of requirements
Intermediaries of channels - upstream and downstream value chain shareholders - to make the
product and service available to the final consumers
Sometimes distribution channels also make us the market leaders, not only the products.
Place strategy is the hardest to implement, among the 4Ps.
Distributors build the market
Intermediaries are also interested in the pull strategy
7P - 4P + physical evidence, processes and people
Marketing mix - translate strategy into action to achieve corporate strategy
Sustainable competitive advantage - My R&D (long term) costs must give me returns after a
long period of time. But these products are imitated, both products and brands
Pricing is not a sustainable method of CCD’ing values.
Promotion is a communication technique, but unpredictable.
Place strategy is a competent strategy, and very hard to replicate / imitate. This gives a
sustainable competitive advantage.
The most critical component of 7P is people.
In case of self employed service sector (doctors / lawyers), people is more important than the
brand
Here title means brand
COCO, COFO, FOCO, FOFO - Distribution of roles and responsibilities among promoters.
Advertisement is done by the manufacturer. Regional promotion is taken care of by
Franchisees.
Class - 17

Section - H
I need to position promotion, place, pricing strategies as per the stage of the product life cycle.
The strategies at introduction won’t work in the maturity stage.
As a marketer, I need to influence my customer during the customer purchase cycle. How will I
tune in my marketing strategies?
Difference between sales and marketing

Sales is short term, transactional. Marketing is long term, value creation.
Class - 18
Date - 3rd September, 2021

Section - H

Marketing Management

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Marketing Management

Date - 2nd July, 2021

Encouragement of peer learning via bringing relevant background experience.

Why is tech evolving up so fast and so are the startups?

Value = Benefit / Cost

For delivering value, we talk about value chains.

For communicating value, we use promotions, discounts and campaigns.

Date - 2nd July, 2021

The definition of marketing management is a globally accepted one.

Sir’s papers (Search in those journals) -

Difference between well established and newly introduced product

Value and Brand

Customer Value Triad

Customer and consumer

We as marketers need to focus on both consumer and customer.

Channels - Bridge gap between provider and user.

Hot marketing - prioritize production over product

Push - production and selling

Date - 9th July, 2021

This is an HBR Paper

NIKE CASE STUDY

Date - 13th July, 2021

Date - 16th July, 2021

Decision is selection of best alternative

TV Projo is looking for forward integration

● Retrospection - ask people to reflect their previous experience

How to determine sources of information?

Date - 20th July, 2021

Case study discussion

Date - 20th July, 2021

Product is the manifestation of value for customers

How to calculate / create value proposition

Value = Total benefit / Total cost

It can be utilitarian / financial benefits

Date - 27th July, 2021

Case Study discussion of CavinKare.

Date - 3rd August, 2021

Creation of value requires understanding of customers.

This is a creative thinking technique.

The attributes are given different weightages in the equation.

Date - 6th August, 2021

Case Study discussion of CavinKare part B.

 Impact of other marketing activities

Delayed quotation pricing

Marketing communications are the

Any Paid Form of Non-personal

Protect and/or Promote

Personal Selling Personal Presentations.

Direct Communications With

Step 1. Identifying the Target Audience

Step 2. Determining the Communication Objectives

Public Relations & Publicity

Step 7. Measure Results

Step 8. Manage the IMC Process

Push vs. Pull Product Life-

Date - 17th August, 2021

Case Study discussion of Loreal Paris.

Date - 24th August, 2021

Date - 27th August, 2021

Date - 31th August, 2021