Introduction to marketing management

1. Introduction to Marketing
Management

2. What is Marketing??
 Marketing is process of creating and delivering values to achieve
higher level of customer satisfaction through delivery of qualitative
products or services.
 Marketing is the process for engaging a target market of
costumers or other user to ultimately sell a product profitably
which are unfulfilled needs and desires.
 Marketing is the activity, set of institutions, and processes for
creating, communicating, delivering, and exchanging offerings that
have value for customers, clients, partners, and society at large.

3. What is Marketing Management??
 Marketing management is the process of planning and executing the conception
,pricing and promotion and distribution of goods, services and ideas to create
exchanges with target groups that satisfy customer and organizational objectives.
 “Marketing Management is concerned with direction of purposeful activities
towards the attainment of marketing goals.”
 There are three kinds of goals :
 Satisfaction of customers Needs.
 Increase in sales volume.
 Increase in Organizational profits.

4. Simple Marketing System
Communication
Industry
(a collection
of sellers)
Goods/services Market
(a collection
of Buyers)
Money
Information

5. Importance of Marketing:
 Marketing helps to achieve , maintain and raise of the standards of living.
• Better Marketing Mass production
• Mass production Low cost
• Low cost More buying power Higher standard of living
 Marketing increases national income
 Helps maintain economic stability and development
• by maintaining demand supply balance
 Link between producer and customer
 Marketing helps decision making process (what, when & how much to produce, stores or
transport)

6. 4 P’s of marketing:
Product
Place
Promotion
price

7. 4 P’s of Marketing
Marketing
Mix
Product
Price Promotion
Place

8. Product:
 The term product refers to what the business (or non profit) organization
offers to its prospective customers or clients.
 From customers' point of view ,the product is what which exactly suits to the
needs of the customer.
 From the organization’s point of view ,the product which assists
organization’s them in achieving competiveness in .the market.
 We can define product as: A good , service ,or idea offers a bundle of tangible
and intangible attributes to satisfy the needs of consumers of marketing as
they can be controlled and manipulated by market is termed as product .

9. Aspects for developing Product:
 1.Basic needs of customers: While developing the product, the manufacturer
must focus on the needs of customers .Failure to meet the basic needs of the
customers can lead to failure of the product.
 2.Extra features: Because customers often expect more from an organization than
basic features in tangible products, the task of manufacturer is to provide a
complete offering a –so called ‘total product’ that includes not only the basic needs
or services but also the extras that go with it.
 3.Esthetic look :External look plays an important role in the selecting in product
from the market. It is very essential to design the product such that it attracts to
customers to buy in commutative market where number of products are available
with same features at the same price.
 4.Attractive packaging :Attractive packaging is very essential to maintain the
quality of the product as well as it makes the product safe.
 5.Brand Name : Brand name speaks about the quality of the product. Brand name
are developed through consistence performance of the product as well as of the
service provided by the manufacturers.

10. Place
 Place bridges the physical separation between buyers and sellers to assure that products
are available at the right place.
 Place is decides based on the requirement of the product to the buyer.
 Place is defined as :place is the element of the marketing mix that encompasses all
aspects of getting product to the consumer in the right location at the right time.
 Place (Also referred to as Distribution)Where your business sells its products or services
and how it gets those products or services to your customers.

11. Promotion
 Promotion is element of market mix which brings the product the
attention of the consumers and persuade hem to buy.
 Various communication tools, namely advertising personal selling,
publicity public relations are adopted for promotion by the sellers.
 Promotion – The methods used to commination the features and
benefits of your products or service to your target customer.
 Effective promotion helps the organizations to capture more
market compared to poor promoted products.

12. Price:
 The amount of money or other consideration that is, something of
value given in exchange for a product is termed as price.
 How you price your product or service so that your price remains
competitive but allows you to make a good profit.
 the actual amount the end user is expected to pay for a product.
 How a product is priced will directly affect how it sells.
 Price may also be affected by distribution plans, value chain costs
and markups and how competitors price a rival product.

13. Different Concepts of Marketing
Following are the different concepts developed :
 Production Concept
 Products Concept
 Selling Concept
 Marketing Concept

14. Production Concept:
 Production in large volume, at low cost will be acceptable to customers
 concentrates on production efficiency
 May do well in distribution
 Rarely appreciated by customer
Product concept:
 Focuses on design and quality of products
 Believes that customers will automatically buy products of high quality
 Do not bother to study in market and consumer in depth

15. Sales concept:
Believes that customers need to be persuaded to buy the products
Involves advertising ,large scale promotions, publicity, discount ,public relations etc.
Does not take care of the need of the customer
Marketing concept:
It is the opposite concept of selling concept
Marketing concept believes that sell what customers needs
This concept aims to match company’s offering with customers needs and to achieve
desired level of customer satisfaction.

16. Demand Forecasting:
 Demand forecasting is the estimation of the demand for any product for certain time
period by the customers.
 Generally the demand forecasting of the product is done by using past data of the product
demand.
 There are two types of demand forecasting:
1. Short time forecasting:
 short time forecasting is the forecasting of demand for a tenure up to one year
 Usually when the demand changes from month to month, this type forecasting is carried
out.
2. Long term forecasting:
 when an organization is entering into a new market, long term forecasting is carried out.
 Generally for more than 3 years to up to 5 to 10 years.

17. Method of Demand Forecasting
Sales forecasting techniques can be classified in to two types:
1.Qualitative method
Obtain information about the likes and dislikes of customers.
Suited for short term demand forecasting.
Demand forecasts for new products can be made only by qualitative
Demand for existing products can be forecast by using this method also.
Types of Qualitative method:
I. Jury method
II. Market survey method
III. Salesforce survey method

18. Types of Qualitative method:
Type Characteristics Strengths Weaknesses
Executive
opinion
A group of managers
meet & come up with
a forecast
Good for strategic or
new-product
forecasting
One person's opinion
can dominate the
forecast
Market
research
Uses surveys &
interviews to identify
customer preferences
Good determinant of
customer preferences
It can be difficult to
develop a good
questionnaire
Delphi
method
Seeks to develop a
consensus among a
group of experts
Excellent for
forecasting long-term
product demand,
technological
changes, and
Time consuming to
develop

19. Quantitate Method
2.Quantative method
I. Trend Analysis method
II. Moving Average method
III. Exponential Smoothing Method
IV. Least Square Method

20. Market Segmentation
 The process of dividing a market into distinct subsets (segments) of consumers
with common needs or characteristics and selecting one or more to target with a
distinct marketing mix is called Market segmentation.
Segmentation Variables
Geographic
Demographic Psychographic
BehavioralGeodemographic

21. Geographic Segmentation
 Division of the market based on the location of the target market
 People living in the same area have similar needs and wants that differ from those
living in other areas
 Climate
 Population density
 Taste
 Micromarketing

22. Partitioning of the market based on factors such
as
age
gender
marital status
income
occupation
education
ethnicity
Demographic Segmentation

23.  Age:
 Product needs and interests often vary with consumers’ age
 Gender:
 Gender is frequently a distinguishing variable
 Changes in the family and growth of the dual-income household have blurred
some of the lines
 Marital Status
 Marketers have identified specific marital status groups, such as:
1. Singles
2. Divorced individuals
3. Single parents
4. Dual-income married couples
 They then market products specifically designed for one or more groups

24.  Income, Education & Occupation
 These three variables are often related and therefore often used together as a
measure of one’s social class.
 Income is commonly used because marketers feel it is a strong indicator of ability
to pay for a particular product or service
 Income is often combined with other variables to narrow target markets:
 With age to identify the important affluent elderly
 With age and occupation to produce the yuppie segment

25. Geodemographic Segmentation
 A hybrid segmentation scheme
 Based on notion that people who live close to one another are likely to have similar
financial means, tastes, preferences, lifestyles and consumption habits

26. Psychographic Segmentation
 Partitioning of the market based on lifestyle and personality characteristics
 Marketers use it to further refine a target market
 Its appeal lies in the vivid and practical profiles of consumer segments that it can
produce
 Accomplished by using AIO inventories

27. Behavioral Segmentation
 Partitioning of the market based on attitudes toward or reactions to a product and
to its promotional appeals
 Behavioral segmentation can be done on the basis of:
1. Usage rate
2. Benefits sought from a product
3. Loyalty to a brand or a store

28. Thank You..!!!