Marketing Management 22MBA15

1. Marketing Management
22MBA15
Manjunatha S
Faculty Member,
CMRIT-MBA.

3. Vegetable sellers

4. Kids selling products @ Kirana Shop

14. APMC Market

17. Course Objectives
1. To make students understand the fundamental
concepts of marketing and environment in which
marketing system operates.
2. To gain knowledge on consumer buying
behaviour and influencing factors
3. To describe major bases for segment marketing,
target marketing, and market positioning.
4. To develop a Conceptual framework, covering
basic elements of the marketing mix.
5. To understand fundamental premise underlying
market driven strategies and hands on practical
approach.

20. Program outcomes (Pos)
1. Students are given sufficient theoretical knowledge and
are enabled to apply them to solve practical problems in
business and other organizations/institutions of importance
2. Students are provided effective communication skills with
a high degree of lateral and critical thinking that enhances
learn ability, developed for being continuously employable.
3. Students are instilled with leadership qualities, ethically
sound, enabled with decision making skills that reflect a
high degree of social consciousness
4. Students are trained for sustained research orientation to
comprehend a growingly complex, economic, legal and
ethical environment
5. Students are equipped with self sustaining
entrepreneurship qualities that encourages calculated risk
taking

21. Course outcomes
CO1 Comprehend the concepts of Marketing Management.
L1
CO2 Gain knowledge on consumer behavior and buying
process L3
CO3 Understand concept of Product and Brand
Management, Branding and Pricing strategies L2
CO4 Identify marketing channels and the concept of product
distribution, techniques of sales promotion L4
CO5 Gain knowledge on segmenting, targeting and
positioning. L3
CO6 Identify the emerging trends in marketing. L4

22. PROGRAM SPECIFIC OUTCOMES (PSOs): The post
graduate students of the department shall be able to
PSO1) Comprehend the contemporary features and
characteristics of Business Management Science
and its administration
PSO2) Analyse and interpret the dynamic situations
for making Business Management strategies and
decisions at the national and global level
PSO3) Handle responsibility with the ethical values
for all actions undertaken by them.
PSO4) Adapt and focus on achieving the
organisational goal and objectives with complete
zeal and commitment

23. CO-PO-PSO Mapping
PO1 PO2 PO3 PO4 PO5 PSO1 PSO2 PSO3 PSO4
CO1 1 2 3
CO2 1 2 2
CO3 3 2
CO4 2 2 3
CO5 2 2
CO6 3 3

24. Module 1
• Introduction to Marketing
• Importance of marketing, Definitions of market
and marketing, Types of Needs, Elements of
Marketing Concept, Functions of Marketing,
evolution of marketing,
• Marketing V/s Selling, Customer Value and
Satisfaction,
• 4P’s of Marketing,
• Marketing Environment,
• Techniques used in environment analysis,
Characteristics (Micro and Macro),
• Marketing to the 21st century customer.

25. Introduction to Marketing
• Production and marketing of goods and services
are the essence of economic life in any society.
• All organizations perform these two basic
functions to satisfy their commitments to their
stakeholders – the owners, the customers and
the society, at large.
• They create a benefit that economists call utility
which is the want-satisfying power of a good or
service.
• There are four basic kinds of utility – form, time,
place and ownership utility.

26. Form utility
• Form utility refers to how much value a
consumer receives from a product or service
in a way that they actually need.
• The incorporation of customer needs and
wants into the features and benefits of the
products being offered by the company.

27. Time Utility
• This type of utility occurs when a company
provides goods and services when consumers
demand or need them.
• Companies analyze how to create or
maximize the time utility of their products
and adjust their production process, logistical
planning of manufacturing, and delivery.
• Cold drinks in summer.

28. Place utility
• Place utility is a marketing term that explains
making products or services readily available
to its customers.
• Place utility can be used to draw customers to
a product or service as well because it
associates a specific place to the product or
service.
• Ex: Products at billing counter.
• Catalogues, internet, retail stores.

29. Ownership utility
• It is the orderly transfer of goods and services
from the seller to the buyer; also called
possession utility.
• It can be defined as- “The increased
usefulness created by marketing through
making it possible for a consumer to own,
use, and consume a product.”
• Involved every time legal ownership of a
product changes hands.

30. Introduction to
Marketing
• Marketing management is a business process, to
manage marketing activities in profit seeking and
non-profit organisations at different levels of
management.
• Marketing management decisions are based on
strong knowledge of marketing functions and
clear understanding and application of
supervisory and managerial techniques.

31. Introduction to Marketing
• Marketing is managing profitable customer
relationships.
• The basic objective of marketing is to attract
new customers by promising and offering
superior value and to retain and grow current
customers by delivering satisfaction.
• Marketing deals with customers more than
any other business function.

32. Introduction to Marketing…
• Building customer relationships based on
customer value and satisfaction is at the very
core of modern marketing.
• Highly successful companies know that if they
take care of their customers, market share
and profits will follow.

33. Introduction to Marketing…
• Sound marketing is essential for the success
of every company
• Large or small, global or national.
• Marketing is practiced by large profit making
companies like Microsoft, IBM, Reliance, HUL,
Godrej, etc.
• It is also used by non-profit organizations like
colleges, hospitals and charitable trusts like
CRY, Help Age, etc.

34. Importance of
Marketing
• Marketing Helps in Transfer, Exchange and
Movement of Goods
• Marketing Is Helpful In Raising And Maintaining
The Standard Of Living Of The Community
• Marketing Creates Employment
• Marketing as a Source of Income and Revenue
• Marketing Acts as a Basis for Making Decisions
• Marketing Acts as a Source of New Ideas
• Marketing Is Helpful In Development Of An
Economy

35. Definitions of Market
• A market is the set of actual and potential buyers
of a product.
• It may exist in a physical environment as a
marketplace or in a virtual environment (on the
internet platform) as a market space.
• A market is a place where buyers and sellers
meet to buy or sell products, as in the case of a
fish market, vegetable market or grain market.
• A market refers to the different groups of
consumers for a product or service.

36. Examples for Market:
• Consumer market
• Business market
• Global market
• Teenagers’ market
• Children’s market
• Working women’s market
• Insurance market
• Healthcare market
• Education market

38. Definitions of
Marketing…
• According to American Marketing Association,
"Marketing is an organizational function and a
set of processes for creating, communicating and
delivering value to customers and for managing
customer relationships in ways that benefit the
organization and its stakeholders."

39. Definition of
Marketing…
• Academic and Professional marketers, defines
marketing as: “Marketing is the process of
planning and executing the conception,
pricing, promotion and distribution of ideas,
goods and services to create exchanges that
satisfy individual and organizational
objectives”

40. Definition of
Marketing…
• “Marketing is a societal process by which
individuals and groups obtain what they need
and want through creating, offering, and
freely exchanging products and services of
value with others.” (Philip Kotler)

41. Definition of Marketing…
• Marketing means managing markets to bring
about profitable exchange relationship by
creating value and satisfying needs and wants.
• It is defined as a process by which individuals and
group obtain what they need and want by
creating and exchanging products and values
with others
• Marketing involves activities such as searching
for customers, product development, market
research, communication, sales promotion
distribution, channel management, service, etc.

43. Types of Needs

47. Elements of Marketing Concept
Needs
• The concept of human needs is the fundamental
concept underlying all marketing activities.
• Human needs are states of felt deprivation.
• They are biogenic in origin and include physiological
needs for food, clothing, warmth, shelter and safety.
• Social needs are craving for belonging and affection.
• Knowledge and self-expression are the other
individual needs of human beings.
• Are not a creation by marketing people.

48. Wants
• Wants are the forms human needs take as they are shaped by
culture and individual personality characteristics.
• When an American needs food, he may want a McDonald
burger, or steak, French fries, and a Coke;
• If an Indian needs food, he may want a dosa, chapattis or rice,
• Wants are shaped by the society
• The only other difference between needs and wants is that
while human needs are limited, wants are unlimited.

49. Demand
• When human wants are backed by purchasing
power and willingness to buy
• Consumers ask for or demand products which
they feel will give them maximum value and
satisfaction.
• Most of the marketing companies take pains to
study and understand their customers’ needs,
wants and demands, based on which they plan
their strategies for products and promotions.
• Consumer behavior studies and consumer
research are primarily for identifying and
analyzing consumer needs, wants and the
related buying behavior.

50. Marketing Offers
• Marketing offers are combinations of
products, services, information, or
experiences offered to a market to satisfy a
need or want.
• It is also called ‘a value proposition’,
• Which is a set of benefits that marketing
people promise to the consumers to satisfy
their needs.
• Persons, orgns, Information, Ideas,
Experiences

51. Customer Value
• Consumers have a wide choice of products and
services which promise satisfaction of a particular
need.
• They normally decide on their choices based on their
perceptions of the value and satisfaction that different
products and services deliver, or offer.
• Customer value is the difference between the value
the customer gains from buying and using a product
and the cost of buying the product.

52. Customer Satisfaction
• Customer satisfaction with a purchase depends on how
well the product’s performance lives up to the
customer’s expectations.
• Customer satisfaction is a key influence on the future
buying behavior of the people.
• Satisfied customers will buy the product again and tell
the others about their good buying experiences.
• Dissatisfied customers, on the other hand, switch to a
competitor’s products and also discourage others from
buying the product.
• Customer value and customer satisfaction are key
building blocks for developing and managing customer
relationships.

53. Exchanges
• Exchange is another core concept of marketing.
• It is the act of obtaining an object which one needs from another
by offering some other thing in return.
For exchange potential to exist, the following conditions must be
fulfilled:
• There must be at least two parties.
• Each party has something of value for other party.
• Each party is capable of communication & delivery
• Each party is free to accept/ reject the exchange offer.
• Each party believes it is appropriate to deal with the other party.

54. Transactions
• Event that happens at the end of an exchange.
• Exchange is a process towards an agreement.
• When agreement is reached, we say a transaction has taken place.
a) Barter transaction.
b) Monetary Transaction.
• At least two things of value.
• Condition agreed upon.
• Time of agreement.
• Place of agreement.
• May have legal system for compliance.
• Proof of transaction is BILL/ INVOICE.

55. Relationships
• Marketing does not stop with a single transaction
• The marketer wants the customer to be fully satisfied
• A long-term relationship can be built up in the form of
customer loyalty.
• Marketing consists of actions taken to build and
maintain desirable exchange relationships
• Beyond simply attracting new customers and creating
transactions,
• The goal is to retain customers and grow their
business with the company.

56. Functions of Marketing
• Exchange function
– Buying
– Selling
• Physical distribution
– Transporting
– Storing
• Facilitating functions
– Standardizing and
grading
– Financing
– Risk taking
– Securing marketing
information

57. Evolution of Marketing
• Production Era
– Consumers favour products that are available and
highly affordable
– Improve production and distribution
– Availability and affordability is what the customer
wants’

58. • Product Era
– Consumers favour products that offer the most
quality, performance and innovative features
– ‘A good product will sell itself’
• Sales Era
– Consumers will buy products only if the company
promotes/ sells these products
– ‘Creative advertising and selling will overcome
consumers’ resistance and convince them to buy’

59. • Marketing Era
– Focuses on needs/ wants of target markets and
delivering satisfaction better than competitors
– ‘The consumer is king! Find a need and fill it’
• Relationship marketing Era
– Focuses on needs/ wants of target markets and
delivering superior value
– ‘Long-term relationships with customers and
other partners lead to success’

63. Marketing Environment
• According to Philip Kotler, “A company’s marketing
environment consists of the factors and forces outside
marketing that affect management’s ability to build
and maintain successful relationships with target
customers”.
• The marketing environment offers both opportunities
and threats.
• Successful companies constantly watching and
adapting to the changing environment.
• A company’s marketers take the major responsibility
for identifying significant changes in the environment.

64. Types of the marketing environment:
❖ Micro environment - forces close to the
company that affect its ability to serve its
customers
❖ Macro environment - larger societal forces
that affect the whole macro environment.

65. Micro-environment:
(a) The company
(b) Company’s Suppliers
(c) Marketing Intermediaries
(d) Customers
(e) Competitors
(f) Public (financial, media, Govt[consumer
orgns], Citizen, Local, general, internal)

66. Macro Environment
(a) Demographic Environment
(b) Economic Environment
(c) Physical Environment
(d) Technological Environment
(e) Political Environment
(f) Legal Environment
(g) Social and Cultural Environment

67. Marketing to the 21st century customer.
• Influencer marketing will evolve into a common
marketing tactic.
• Video marketers will keep content short.
• Social media will become a customer service
tool.
• More businesses will leverage SEO to concur
search traffic.
• Mobile optimization will be even more
important.
• More companies will prioritize social
responsibility.

68. Marketing to the 21st century customer…
• Aligned marketing and sales teams will win.
• Experiential marketing could make a
comeback.
• Inbound marketing will remain a best practice
for growing brands.
• Virtual reality (VR) and augmented reality
(AR) will experience slow adoption in the
marketing sphere.
• More brands will test out native ads.

69. • Inbound marketing is a business methodology
that attracts customers by creating valuable
content and experiences tailored to them.

70. • Native advertising, also called sponsored
content, is a type of advertising that matches
the form and function of the platform upon
which it appears.