This document provides an overview of marketing management concepts. It discusses key marketing terms like customer, need, want, demand, product, and market. It also defines merchandising and explains the difference between marketing and selling. Additionally, it outlines the value of marketing in creating different types of value for customers. The document then discusses important marketing concepts like the marketing mix, product management, pricing strategies, and more. It provides high-level information on various fundamental aspects of marketing management.

1. Marketing Management
B.com Sem II

2. MODULE-I
INTRODUCTION TO MARKETING MANAGEMENT
• Customer
• Need
• Want
• Demand
• Product
• Market

3. Merchandising
• The term merchandising is derived from the term merchant.
• Merchandising simply refers to product planning.
• It aims at internal planning relating to products or services for
marketing at the right time, at right price and in proper colour,
qualities and sizes.
• It covers everything from the packaging of the product, to the
way in which it is offered for sale.
• It involves the whole range of activities that can be used to
increase the sale of goods through retail outlets.

4. Marketing vs Selling
Difference between Marketing and Selling
1. Selling refers to transferring goods and services to customers.
Marketing includes not only selling but also other activities connected
with selling such as advertising, marketing research etc.
2. Selling focuses on the needs of seller, while marketing focuses on the
needs of buyers.
3. Selling aims at maximum sales and profit. Marketing aims at earning
profit through customer satisfaction.

5. Difference between Marketing and Selling (Continue)
4. Selling is concerned with distribution of goods already produced. But
marketing begins before production and continues even after sales
have been effected.
5. Selling emphasises on short term objective of profit maximisation,
but marketing emphasises on long term goals such as growth and
stability.
6. Selling is an activity that converts product into cash, while marketing
is a function that converts the consumer needs into products.

6. The value of Marketing
• Value is the difference between benefits and cost of your
products or services when compared to others in the market.
(Value= Benefit-Cost)

7. The value of Marketing (Conti.)
• Marketing is the process by which a firm creates value for its
customers.
• Marketing is all about creating, communicating, delivering and
exchanging products or services that have value for customers and
society at large.
• Thus, the two core elements of marketing are value and profit,
providing value and generating profit

8. Types of value

9. Marketing creates five types of values:
1. Functional value: This is the perceived functional or physical
performance utility received from the product’s attributes.
Reliability, durability and price are the attributes a product. E.g:
Mobile phones, Smart watches etc.
2. Social value: This the perceived utility acquired because of the
association between one or more specific social groups (e.g.,
reference groups) and the product. Eg: I phone, Parker pen,
Starbucks etc.

10. 3. Emotional value: This is the capacity of a product to stimulate the
consumer’s emotions or feelings. E.g: Lifeboy, Santoor, Classmate notes.
4. Epistemic value: This comes from the product’s ability to foster
curiosity, provide novelty and satisfy and desire for knowledge. E.g:
Books, Tourism, Adventure parks etc.
5. Conditional value: This comes from some particular situation or
circumstances facing the customer. E.g. Tea, Coffee etc.

11. New Marketing Realities
• Network information technology (E.g: AI, Lenskart)
• Globalization (LPG)
• Deregulation
• Privatization
• Disintermediation
• Social Responsibility
• Sustainable marketing

12. Importance or Advantages of marketing
A. Importance of marketing To society
• Provide employment
• Raises standard of living
• Create utilities
• Reduce costs
• Solve social problem
• Enriches society

13. Importance or Advantages of marketing (Cont)
B. Importance of Marketing To Companies
• Help in Income generation
• Help in planning and decision making
• Help in distribution
• Help in exchanging information
• Expands global presence
• Helps to earn goodwill

14. Importance or Advantages of marketing (Cont)
C. Importance of Marketing To Consumers
• Provides quality product
• Provides variety of product
• Improves knowledge of consumers
• Helps in selection
• Consumer satisfaction

15. Importance or Advantages of marketing (Cont)
D. Importance of Marketing To Economy
• Saves economy from crisis
• Increase in national income
• Economic growth
• Ploughing back of resources

16. Marketing concepts
• Traditional Concept
• Exchange Concept (e.g: barter-
system)
• Production Concept (Nokia, 3rs.
pen)
• Product Concept (Ashirvad,Toyota)
• Selling Concept (LIC, Insurance)
• Modern Concept
• Marketing Concept (Merceleys)
• Societal Concept (Himalaya, Mama
earth)
• Holistic Concept (Pepsi)

17. Marketing Management
Meaning of Marketing Management
• Marketing management simply means the management of marketing
activities.
• It is the application of management tools and techniques in the
efficient utilization of available marketing resources.
• It involves planning, implementation and control of marketing
programmes included in the process of marketing.

18. Definition of MM
According to Kotler and Keller, “Marketing management is the
art and science of choosing target markets and getting,
keeping and growing customers through creating, delivering
and communicating superior customer value”.

19. Nature of Marketing management
• Managerial Function
• Goal Oriented
• Determining appropriate marketing mix
• Specialized function
• Marketing concept in action
• Universal function

20. Marketing management Tasks
1. Conversional marketing
When there is a negative demand
Plan or strategy to convert negative demand into positive. Eg. Flight
2. Developmental marketing
When there is a latent demand (unrealized dd or dd for a product does not exist)
Developing latent demand for a product or service into its actual demand Eg. Nano

21. Marketing management Tasks (Cont.)
3. Remarketing
When dd is Falling, The task of finding or creating new uses or
users or satisfaction for an existing product is also known as
remarketing. Eg. Fast food
4. Maintenance marketing
When full DD, The task of continuously monitoring the demand
level and maintaining at the full level is known as maintenance
marketing.

22. • Market segmentation
• Service marketing
• Rural marketing

23. MODULE-II
Fundamentals of Product Management
• Product is everything a purchaser gets in exchange for money
• Product is any tangible offering that might satisfy the needs or
aspirations of the consumers.
Definition
• According to Jobber (2004), “a product is anything that has the ability
to satisfy a customer need”.

24. Levels of Product (Customer Value Hierarchy)

25. 1. Core product (core benefit): The most fundamental level is core
benefit or core product. It is the fundamental benefit that a product
delivers. For example, rest and sleep in hiring a room in a hotel, tasty
meal in a hotel, entertainment in case of rock music etc.
2. Basic product: This is the actual product a consumer is buying. For
example, a hotel room includes basic products such as be, bathroom,
towels, fan, table, chair water etc.
3. Expected product: This is a set of attributes and conditions buyers
normally expect when they purchase a product. E.G: Clean bathroom,
clean sheets, clean towels etc.

26. 4. Augmented product: This is what the customer gets more than his
expectations in products. For example, Colour TV, shampoo, room
slippers, room telephone, air conditioner etc.
5. Potential products: This is the highest level which can incorporate all
the possible benefits the product provides today and tomorrow. For
example, free breakfast, welcome drink, high speed internet etc.

27. Classification of Products or Goods
1. On the basic of Durability:
1. Durable : Goods used for long time. E.g: Machines, Vehicles, Refrigerator ..
2. Non-durable: Goods consumed and purchased frequently. e.g: fruits,
Vegetables etc.
3. Services: Activities, benefits and satisfaction offered for sale. It is intangible,
inseparable, perishable. E.g: doctor, CA etc

28. 2. On the basic of Consumption:
1. Consumer Goods:
Consumed for final consumption. Purchased by ultimate consumer for
personal or family use. e.g: Soap, Toothpaste, Shoes etc.
I. Convenient Goods: Rice, Milk, Bread, Medicine etc
II. Shopping goods: Clothes, Furniture, Jwellery, Footwear etc
III. Specialty goods: Car, TV, Bike, Watches Etc
IV. Unsought Goods: Insurance policy, flight ticket etc
2. Industrial goods:
These are goods used for production of other goods or some business or
institutional purpose. Not directly used by consumers.
I. Production facilities and equipments
II. Production materials
III. Production supplies
IV. Management materials

29. 3. On the basic of Tangibility:
1. Tangible : Pen, TV etc
2. Intangible: repairs, services, Insurance etc

30. Difference between Consumer Goods and Industrial Goods

33. PRICING
• Price is the amount paid by the buyer to the seller for a
product.
• It is the exchange value of a product or service in terms of
money. Price is different from value. Warren Buffett has
simply put the difference between value and price.
Definition
• According to W. Buffet, “Price is what you pay. Value is what
you get”.

34. Steps in Setting the Price (steps in pricing decisions)
1. Studying target market:
2. Selecting the pricing objective
3. Determining demand:
4. Estimating costs
5. Analyzing prices of competitors
6. Selecting the pricing method
7. Setting the final price

35. Objective of Pricing
1. To maximise profit
2. To maintain or improve the market share
3. To achieve a desired rate of return on investment
4. To meet or prevent competition
5. To stabilise the product prices

36. Factors Influencing Pricing Decisions or Pricing Policies
Internal Factors
1. Costs
2. Objectives
3. Organisational factors
4. Marketing mix:
5. Product differentiation
6. Product life cycle

37. •External Factors
1. Demand
2. Competition
3. Distribution channels
4. General economic conditions
5. Govt. policy

38. Pricing Policies
The pricing objectives such as maximization of profit,
maximisation of sales, targeted rate of return, survival, stability
in prices, meeting or preventing competition etc. are
collectively known as pricing policies.

39. Method of Pricing
There are three basic pricing policies. They are:
1. Cost-based pricing policies
2. Demand-based pricing policies
3. Competition – based pricing policies

40. Cost- based Pricing Policy
1.Cost plus pricing
2.Target pricing
3.Marginal cost pricing
4.Break even pricing

41. Demand-based pricing policies
1. Differential pricing
2. Premium pricing

42. Competition-based Pricing Policy
1. Going rate pricing
2.Customary or Conventional pricing

43. Methods or Strategies of Pricing of New Products
1.Skimming price policy
1.Penetration price Policy

44. Important Pricing Strategies
1.Psychological pricing
2.Geographical pricing
3.Base point pricing
4.Zone pricing
5.Dual pricing
6. Administered pricing
7. Mark-up pricing
8. Product line pricing
9. Captive product pricing
10. Price bundling