Marketing Management

1. Marketing
Management
Product
Price
Place
Promotion
Akhila Ramesh
M.Com; MBA

2. Expected Outcome
• What is Marketing
• Differences between marketing & selling
• Important functions of marketing
• Role of marketing in the development of the society,
firm, economy and consumers
• Marketing mix and its elements
• Products and its different categories
• Pricing and factors affecting the same
• Channels of distribution
• Major tools of promotion like sales promotion,
advertising, personal selling and publicity
You will be able to understand:-

3. Concept & Definition
• Exchange of goods and services for money or
something of value to them
• Meeting needs profitably
• Identify a need and satisfy it
• Philip Kotler
– Marketing is a social process by which individual
groups obtain what they need and want through
creating offerings and freely exchange products
and services of value with others

4. Modern concept of Marketing
• Goods
• Services
• Ideas
• Persons
• Organisation
• Place
• Events
• Experience
• Properties
• Information
WHAT IS MARKETED? WHO IS A MARKETER?
A PERSON WHO TAKES MORE
ACTIVE PART IN THE PROCESS
OF EXCHANGE OF GOODS &
SERVICES
Concept of
Marketing
Identification of
markets
Understanding
needs and wants
of customers
Developing
goods / services
to satisfy
customer needs Satisfy the
needs better
than the
competitors
Profit
maximisation

5. Features of marketing
Needs and wants
• Needs – Basic human requirements like food, shelter, clothing
• Wants – demand of specific products
• Needs give rise to wants
Creating a market offering
• Developed after analysis of needs and preferences of potential customers
Customer value
• At a profit. Customers are made to prefer the products in relation to the
competing products
Exchange mechanism
• Essence of marketing
• Exchange of goods & services for money or something value to them
• Conditions for exchange
• Two parties | each to have something of value to be exchanged | ability to
communicate and deliver the product or services | freedom to accept or reject
the offer | willing to enter into transactions

6. Marketing Management
The process of planning and executing the conception, pricing, promotion and
distribution of ideas, goods and services to create exchanges that satisfy
individual and organisational goals
American Marketing Association
Process of
Marketing
Management
involves
Choosing a target
market
Identifying, satisfying,
retaining the customer
base
Attract more customers
so that the organisation
can grow
Creating, developing
and communicating
superior values for the
customers

7. Marketing & Selling
BASIS SELLING MARKETING
SCOPE /
PROCESS
Limited. Part of marketing process.
Concerned with promotion of
selling a product
Wider scope; consists of number of
activities such as identification of
customer needs, developing the
products as per their requirement,
fixing prices, persuading the potential
customers to buy them
FOCUS /
TRANSFER OF
TITLE
Transfer of title & possession of
products
Achieving maximum customer
satisfaction
AIM / OBJECTIVE Profit maximisation through sales
maximisation
Proft maximisation through customer
satisfaction
START & END
ACTIVITIES
Start after development of
product
Start with collection of customer needs
EMPHASIS Bending the customer according to
the product
Developing the product as per
customer needs
STRATEGIES Selling involves efforts like
promotion & persuasion
Integrated marketing efforts like
product, promotion, pricing and
physical distribution

8. Marketing Management - Philosophies
BASIS PRODUCTION CONCEPT PRODUCT CONCEPT
MEANING Profit maximisation through
large quantity of production
thereby reducing per unit
production cost
Profit maximisation through
superior quality of products
FOCUS Quantity of production Quality, performance, features
of the product
MEANS Availability and affordability of
product; improving
Continuous improvement in
quality; incorporating new
features
ENDS Profit through large volume of
production
Profit through product quality
improvements
STARTING POINT Factory factory

9. Philosophies (contd.,)
BASIS SELLING CONCEPT MARKETING
CONCEPT
SOCIETAL CONCEPT
MEANING Customers will buy only if
attracted & convinced.
So aggressive selling &
promotional activities
should be undertaken
Identifying customer
needs and profit
maximisation through
customer satisfaction
Identifying customer
needs; Profit
maximisation through
customer satisfaction in
effective & efficient
manner; benefit to the
society in the long run
FOCUS Existing product Customer’s needs Customer’s needs &
society’s well being
MEANS Advertising, sales
promotion, personal
selling etc.,
Integrated marketing
involving 4Ps’
Integrated marketing
involving 4Ps’
ENDS Profit through sales
volume
Profit through customer
satisfaction
Profit through customer
satisfaction & social
welfare
STARTING
POINT
Factory Market Market, Society

10. Functions of Marketing
Gathering and Analysing Market Information
• Primary function to identify the needs of the customers
• Most important to take decisions for the successful marketing of goods and services
• Analyse opportunities and threats as well as strengths and weakness of the
organisation
• With technological explosion, it has become easier to collect necessary information
through interactive portals
Marketing planning
• Develop appropriate marketing plans covering various important aspects to achieve
organisational objective
• Also to include level of production, promotion of products, specifying action
programmes
Product designing & development
• A good design makes the product attractive to the consumer
• It also improves performance of the product and gives a competitive edge in the
market
• Hence decision regarding the design and development of the product is very crucial for
a marketing manager

11. Standardisation & grading
• Standardisation refers to producing goods as per pre-determined
specifications.
• Helps in achieving uniformity and consistency in the output.
• Reduces the need for inspection, testing and evaluation from the consumer’s
perspective
• Grading is the process of classification of products into different groups
• This is done where products are not produced as per pre-determined
specifications eg; agricultural products
• It helps in realising higher price for higher quality products
Packaging & labelling
• Both are considered as pillars of modern day marketing tools
• Packaging wraps the product and labelling forms the information printed on
the package.
• Packaging not only protects the product but also used as a promotional tool
• Quality of the product is also assessed by looking at the package and label

12. Branding
• Important decision area for marketing – to
sell in the generic name (fan pen etc.) or
specific brand name (usha, reynolds)
• Helps in creating product differentiation
• Branding strategy – each product a separate
brand name (Lux, Surf etc., ) or same brand
name for all products of a company (philips,
samsung etc.,)
Customer support services
• Includes after sales services, handling
customer complaints, procuring credit
services, maintenance services, technical
services & consumer information
• Aim at providing maximum customer
satisfaction the key to marketing successes
• Effective in bringing repeated sales and
developing brand loyalty

13. Pricing of product
• Amount of money a customer has to pay to obtain the product or
service
• Most important factor deciding the success of failure
• Demand is directly related to the price of the product
• Important decisions marketer has to take are:- pricing objective,
pricing strategy, determining and changing the price
Promotion
• Providing information to the customers regarding the product and
its features; persuading them to buy the product
• Four important tools – personal selling, advertising, publicity and
sales promotion
• Marketer has to decide on the combination of the promotional
tools and budget thereon.

14. Physical distribution
• Two major areas – choice of marketing intermediaries and selection of
physical movement of the product
• Marketer has to decide on – inventory levels, storage and warehousing &
transportation of goods from the place of production to the end user
Transportation
• End users of products are wide spread and geographically separated
• Various factors to be considered before deciding the mode of
transportation:- nature of the product, cost and location of target market
Storage and warehousing
• There is a time gap between production and procurement of goods due to
irregular demand or supply
• To maintain smooth flow & supply of the products and also to protect
against contingencies proper storage is needed
• Storage is performed by different intermediaries

15. Role of Marketing
In a firm
•Important role in achieving a firm’s
objective in a most effective manner
•Emphasises that customer satisfaction
is key to the survival and growth of the
firm
•Helps in focusing on the needs and
wants of the customer
In the economy
•Significant role in economic
development of a nation and rising the
standard of living of the people
•Inspire people to undertake new
activities and set up new enterprises
•Ensures smooth flow of goods through
efficient distribution channels
•Helps in overcoming obstacles by
bridging the gap between production &
consumption
•Accelerates economic activity leading
to higher incomes, more consumption
and increased savings and investment

16. Elements of Marketing Mix
Product
• Product mix
• Quality
• New product
• Design &
development
• Packaging
• Labelling
• Branding
Price
• Level
• Margins
• Policy
• Strategy
• change
Place
• Channel
strategy
• Selection
• Conflict
• Cooperation
• Physical
distribution
Promotion
• Mix
• Advertising
• Personal
Selling
• Sales
Promotion
• Publicity
• Public
Relations

17. What is a Product
Product means goods or
services or ‘anything of
value’ which is offered to
the market for sale
It also relates to the
benefits offered by it from
the consumers view point
Also include the extended
product or what is offered
to the consumers by way of
after sales service, handling
complaints, availability of
spare parts etc.,
Important product
decisions include features,
quality, packaging, labelling
and branding

18. Classification of Products
Products
Consumer
Durability
Non-durable Durable Services
Shopping
Convenience Shopping Speciality
Industrial

19. Durability Products
Non-durable
• Products normally
consumed in one
or few uses
• Ex: tooth Paste,
stationery
Products, Toiletry
Products
• Requires small
margin,
• Need to be made
available in many
locations
• Need for heavy
advertising
Durable
• Tangible consumer
products which
survive many uses
• Ex; Fridge, TV,
Mobile etc.,
• Used for a longer
period, command
higher margin
• Requires greater
personal selling
efforts, guarantees
& after sales
services
Services
• Intangible nature
• Inseparable from
its source
• Cannot be stored.
Highly perishable in
nature
• Highly variable as
their type and
quality depends on
the person
providing them

20. Shopping Products
Convenience
• Purchased frequently,
immediately and with
least time and effort
• Low unit value and
bought in small
quantities
• Have regular and
continuous demand
• Standardised prices and
mostly branded
• Competition is more as
supply is greater than the
demand
• Sales promotion and
short term incentives
plays a major role in
marketing such products
Shopping
• Purchased after
comparing the quality,
price, style, suitablity
etc.,
• Ex: clothes, shoes,
jewellery, etc.,
• Generally of durable
nature
• Unit price and profit
margin is high
• Purchases are pre-
planned very little degree
of impulse purchases
• Retailers play an
important role as lot of
persuasive effort is
needed
Speciality
• Demand is limited as
small number of people
buy these products
• Generally costly and unit
price is very high
• Available for sale in very
few places; customers are
willing to take extra
efforts to purchase these
products
• Aggressive promotion is
required
• After sales services is
required for many of the
products

21. Industrial Products
Used as inputs in producing other products
• Ex: raw materials, engineering products etc.,
Characteristics
• Number of buyers are very less – sugar cane and sugar
• Shorter channels of distribution is used – direct selling or one level
• Markets are geographically concentrated – textile industry to
Mumbai, Sholapur, Tiruppur, Coimbatore
• Demand derived from consumer products
• Complex in nature – technical considerations assume greater
significance
• Reciprocal buying – supply raw materials and buy finished products
• New trend- instead of outright purchase leasing them due to the
heavy price of the industrial products

22. Classification
Industrial
Goods
Materials &
parts
Raw material
Farm products
Natural
products
Mfd materials
& parts
Component
material
Component
parts
Capital Items
Installations Equipments
Supplies &
Business
Services
Maint. &
Repair Items
Operating
Supplies

23. • Branding is creating a corporate brand identity
for consumer and getting that identity
imprinted on the minds of the consumers,
which require brand positioning & brand
management

24. Related terms
Brand
• Name, term, sign, symbol or a
combination of all
Brand Name
• Verbal component of the
brand
Brand Mark
• Distinct colour scheme or
lettering
Trade Mark
• Brand registered and given
legal protection

25. Advantages to Marketers
Product differentiation
• Distinguishing its product from that of competitors
• Enables to secure and control the market
Advertising & display programmes
• Without brand image, advertising will not be successful. Only can create
awareness
Differential pricing
• If customers like the brand, they become loyal to it. Hence advantage
over competitors
Introduction of new products
• New products can be launched under a renowned brand to get off to an
excellent start
• Ex: samsung, Maggie etc.,

26. Advantages to customers
Helps in product identification
• facilitates repeat purchase of the product
• Creates brand loyalty
Ensures quality
• Builds up confidence of the customers
• Increasing his level of satisfaction
Status symbol
• Due to the quality of the product it becomes a status symbol
• Feel proud and adds to the level of satisfaction

27. Characteristics of a good Brand Name
Brand
Name
Easy to
pronounce
Benefits &
qualities
Distinctive
Adaptabilit
y
Versatility
Legally
protected
Staying
power

28. Packaging refers to designing
and developing the package for
the products

29. Levels of packaging
Primary
• Immediate container / packing :
Eg: toothpaste, Match box
Secondary
• Additional layer of protection till
the product is used: toothpaste
box
Tertiary
• Storage & transportation
package
• Eg: corrugated boxes containing
number of toothpaste tubes

30. Labelling
• Labelling refers to designing the label to be
put on the package
– Simple tag attached to the product
– Complex graphics on the package

31. Functions / Importance
• Identification
• Protection
• Promotion
• Differentiation
• Easy handling
• Rising standards of health
& sanitation
• Innovational opportunity

32. Functions / Importance
• Describe the products /
specify the contents
• Identification of the
product / brand
• Grading of products
• Help in promotion of
products
• Providing information
required by law

33. Pricing
• Amount of money paid by the customer in lieu
of the product or service purchased
• Crucial for manufacturers, intermediaries and
consumers

34. Factors affecting pricing strategy
Objectives
Product cost
Competition
Utility and
demand
Govt.
regulations
Marketing
Methods

35. Utility & Demand
• Utility provided by the
product and intensive
demand will impact
price fixation
• Demand inelastic –
higher price – no
change in quantity
demanded
• Demand elastic – small
rise in price – results in
decrease in demand.
Hence lower price to be
fixed
Government &
Legal Regulations
• Protect public interest
against unfair practices,
government fixes prices
of essential
commodities
• A firm cannot fix a
higher price than the
government price
Marketing methods
• Distribution system
used
• Quality of salesmen
employed
• Quality of advertising
• Type of packaging
• Eg; Home delivery then
a relatively higher price
will be fixed

36. Objectives
• Profit
maximisation
• Obtaining market
leadership
• Surviving in the
competitive
market
• Attaining product
quality leadership
Product cost
• Procuring +
production +
distribution +
selling
• Fixed cost &
variable cost
• Margin of profit
over and above
total cost
Competition
• No competition –
absolute freedom
in fixing the price
• Intense
competition – fix
lower price to
capture large
market share

37. Channels of Distribution

38. Types
Manufacturer Customer
Manufacturer Retailer Customer
Manufacturer Wholesaler Retailer Customer
Manufacturer Agent Wholesaler Retailer Customer
Direct Selling / Direct distribution
One Level
Two Level
Three Level / Multi Level

39. Market
factors
•Size of market
•Geographical
concentration
•Size of order /
quantity purchased
Product
related
•Nature
•Durability
•Unit Value
•Complexity
Company
characteri
stics
•Financial strength
•Degree of control
Competiti
ve factors
•To utilise or avoid
the method used by
the competitors
Environm
ental
Factors
•Economic condition
•Legal factors
Factors
determining
selection

40. Factors criterion Shorter channel Longer channel
Market
Size of market Small number of buyers
/ industrial goods
Large number of buyers /
consumer products
Geographical Concentration of
potential buyers
Potential buyers scattered
over a large area
Size of order Small quantity
purchased
Large quantity purchased
Product
Nature Industrial / technical /
expensive products
purchased occasionally
Standardised / less
expensive / less bulky /
frequently bought
consumer goods
Durability Perishable products like
milk, egg, vegetables
Non perishable goods like
soap, paste etc
Unit Value High value goods like
gold, industrial machines
Inexpensive products /
consumer goods
complexity Engineering products,
technical products
Non complex items, which
do not require much
detailing

41. Factors criterion Shorter channel Longer channel
Company
characteristi
cs
Financial
Strength
Company with sound
financial position – own
retail houses, large
number of sales persons
Huge funds not available –
go for indirect channels
Degree of control Greater control on
distribution
Management does not
want more control over
middlemen – loner
channels / large
intermediaries
Competitive
Factors
Same kind of products
like toothpaste, shaving
products – through
chemist
Exclusive brand image –
some times avoid channels
/ intermediaries chosen by
the competitors
Environment
al Factors
Depressed economy –
shorter channel
Otherwise longer channels

42. Functions of
intermediaries
Intermediaries
/ Wholesalers
Sorting
• Homogeneous groups on
the basis of quality &
size
Accumulation
• To maintain
continuous flow of
supply
Allocation
• Repacking into
marketable smaller
lots
Assorting
• Procuring from
different sources
& deliver in
combinations
Product promotion
• Sales promotion
activities as
demonstrations,
contests etc.,
Negotiation
• Negotiate price,
quality,
guarantee with
customers
Risk taking
• Price & demand
fluctuations,
pilferage, spoilage etc

43. Advertising
Concept
• Any paid form of non personal
presentation & promotion of
ideas, goods or services by an
identified sponsor
Features:
• Paid form : marketer has to bear
the cost of communication
• Impersonal method : no direct
face to face contact with the
prospective buyer
• Identified sponsor: advertising is
done by an identified individual or
company who bears the cost

44. Role of Advertising
• By making people aware of new products and new
uses of existing products
Creates Demand
• By providing useful information about the product
• Also educates on the new product development and
new features of the existing product
Educates customer
• As consumers feel more assured and confident about
the product advertised
Enhances consumer
confidence
• Through advertisement, people come to know about
how organisation stands for the society
Creates organisational
image
• Communicating the positive features of the newly
introduced product
Facilitates introduction
of new products
• Through repeated communication, creates customer
loyalty
Creates customer
loyalty

45. Advantages
Mass Reach
• Reach a large number of people over a vast geographical area
Expressiveness
• With developments in art, computer designs and graphics, has become the
most powerful medium of communication; very attractive; increases sales
volume; creates image and reputation of the company
Enhancing customer satisfaction & confidence
• Gives stress on quality; customers are assured of quality; hence feel satisfied
and comfortable; creates confidence
Economy
• Has wider reach and coverage; total expenditure gets spread over numerous
communication links; per unit cost of production decreases de to economies
of scale

46. Limitations / Disadvantages
Less Forceful
• No direct communication between the consumer & the marketer. Sometimes, the
message does not gets conveyed.
Lack of feedback
• Evaluation of the effectiveness and feedback is not possible as this is an indirect form
of communication
Inflexibility
• Message is standardised. Cannot be adjusted to the need of the consumers.
Low effectiveness
• This is one way communication. So customer is not able to gets his doubts clarified
Difficulty in Media choice
• Various media are available – print media, electronic media etc., each has its own
merits and demerits. If choice is not made correctly, it will not reach the target
customer

47. Criticisms & Justifications
Objections Detail Is it Justified?
Adds to cost Cost is very high for a few seconds
visual or in the newspaper or a
magazine. This cost is included in
the price of the good and passed
on to the buyers
This is not correct.
Advertisement demand for product
increases and sales also increases.
Due to economies of scale, cost per
unit is reduced. Thus increase in cost
due to advertisement is compensated.
Undermines social
value
Advertisement promotes
materialism and multiplies the
need. Buyers are induced to buy
new latest products even when
the old ones are functional.
This is not entirely true
Advertisements only inform the buyers
about the new and improved
products. The final choice of purchase
lies with the customers. Consumers
being rational, can judge their needs
and take a decision accordingly.
Encourages sale of
inferior products
The primary purpose of
advertisement is to promote sale
of goods. It does not distinguish
between superior and inferior
products
This is not correct
What is inferior and superior depends
upon the economic status and
preference of the customers.
Everyone cannot afford to buy
superior quality expensive products.

48. Objections Detail Is it Justified?
Confuses the buyer
rather than helps
There are hundreds of
advertisements about a single
product. Each brand claims that
they are the best. It becomes
very difficult for the customer to
make the right choice.
This is not correct.
Advertisements give wide choice to
customers and today’s customers are
smart and can make the right choice
suitable for him. Buyers can analyse
the information based on several
factors.
Some
advertisements are
in bad taste
They are not based on values and
ethics. Objectionable words and
scenes have undesirable effect on
the viewers
This is true to certain extent
But individuals differ in their taste and
perception. Also standard of taste also
change over a period of time.
But it will be acceptable if they follow
certain values and ethics and give
respect to all quarters of consumers
Make false claim Exaggerate about the feature or
quality of the product
This is correct
No company should make false
promises or claim about the quality of
the product. If found true, the
company must be prosecuted for the
same.

49. Personal Selling
Selling Products Personally
a very effective prom otional tool

50. Features
• Personal form of communication
• Develop personal relationships
• Flexible tool of promotion
Prospecting
Pre-approach
Approach Presentation
Meeting
objections
Closing the sale Follow-up
Process of
Personal Selling
Start

51. Qualities of a good salesperson
Good looking,
sound health &
stamina
Sweet natured,
good behavior,
presence of mind,
sharp memory,
intelligence
Sound technical
knowledge
Confident,
convincing
conversationalist
Honest and of
sound character
Polite, tactful and
courteous
Discipline & loyal
Ability to inspire
trust

52. Advertising Vs Personal Selling
Basis Advertising Personal Selling
Nature Impersonal form Personal Form
Reach Large number – Wide area Only limited number – narrow specific
area
Cost Cost per person reached is low High
Media used TV, Radio, Newspapers &
Magazines
Salespersons to contact prospective
buyers personally
Flexibility Inflexible; the message cannot
be adjusted to the needs of the
buyer
Highly flexible;
Time /
Coverage
Less time – more coverage A lot of time to cover the entire area
Role Creating & building interest
about the firm’s products
Important role in the awareness stage of
decision making
Suitability Useful in reaching to large
number of ultimate consumers
Selling products to industrial users /
intermediaries who are few in numbers

53. Role of Personal Selling
Businessmen
• Flexible tool
• Direct feedback
• Minimises wastage of
efforts
• Role in introduction
stage
• Customer attention &
lasting relationship
• Effective promotional
tool
Customers
• Helps in improving
standards of living
• Gets latest market
information
• Identifying needs and
wants and how they can
be satisfied
• Get expert advice
Society
• Economic growth
• Growth of employment
& career opportunities
• Mobility of sales people
– promotes travel and
tourism industry
• Increases product
standardisation &
uniformity in
consumption pattern in
a diverse society

54. Sales
Promotion
Short term incentives designed to encourage the buyers
to make immediate purchase of product or service with
an objective to increase the sales of the company
 Used for retailers and middle men also : dealer
discount, extra goods free, novelties
 For salespersons – bonus, sales contests, special offers
etc.,

55. Sales promotion
techniques
Rebates
Discounts
Refunds
Product
Combinations
Quantity gift
Sampling
Contests
Lucky draw
Assigned gift
& instant
draw
Financing
Usable
benefit

56. Includes a variety of programmes to promote
and protect a company’s image or its products,
strengthen relationships with various
stakeholders

57. Public Relation Tools

58. Role of Public Relation
Smooth functioning of business and achievement of objectives
Building corporate image that impacts favourably on its products
Build interest in the established product and help in launching a
new product
Defending products facing adverse / negative publicity
Supplement to advertising in promotion of products

59. Publicity
An effective unpaid form of communication. No cost.
No identified sponsor needed. Message goes as a
news item
Merits
• Message has more
credibility as information is
disseminated by the press
in the form of a news
• Mass reach
Limitations
• Media would cover
information of newsworthy.
• A firm cannot use this as a
marketing tool

60. Thank you