UNIT – I INTRODUCTION Marketing – Definitions - Conceptual frame work – Marketing environment : Internal and External - Marketing interface with other functional areas – Production, Finance, Human Relations Management, Information System. Marketing in global environment – Prospects and Challenges ANNA UNIVERSITY SYLLABUS PPT FOR SEMESTER 2

1. MARKETING MANAGEMENT
BA4207 UNIT 1
Mrs. Rhema Joy Sharath, AP, MBA

2. INTRODUCTION TO MARKETING
• 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.
• 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.
• A marketer is someone who seeks a response—attention, a purchase, a
vote, a donation—from another party, called the prospect.

3. • Marketers seek to influence the level, timing, and composition of demand to meet the
organization’s objectives. Eight demand states are possible:
1. Negative demand—Consumers dislike the product and may even pay to avoid it.
2. Nonexistent demand—Consumers may be unaware of or uninterested in the product.
3. Latent demand—Consumers may share a strong need that cannot be satisfied by an
existing
4. product.
5. Declining demand—Consumers begin to buy the product less frequently or not at all.
6. Irregular demand—Consumer purchases vary on a seasonal, monthly, weekly, daily, or
even
7. hourly basis.
8. Full demand—Consumers are adequately buying all products put into the marketplace.
9. Overfull demand—More consumers would like to buy the product than can be
satisfied.
10. Unwholesome demand—Consumers may be attracted to products that have
undesirable social consequences

4. WHAT IS MARKETED?
• GOODS
• SERVICES
• EVENTS
• EXPERIENCES
• PERSONS
• PLACES
• PROPERTIES
• ORGANIZATIONS
• INFORMATION
• IDEAS

5. MARKETS
• Traditionally, a “market” was a physical place where buyers and sellers gathered to
buy and sell goods.
• Market includes both place and region in which buyers and sellers are in free
competition with one another.
• Marketers use the term market to cover various groupings of customers. They view
sellers as constituting the industry and buyers as constituting the market.
• The marketplace is physical, such as a store you shop in; the marketspace is digital,
as when you shop on the Internet.

6. A SIMPLE MARKETING SYSTEM

7. 8P’S OF MARKETING MIX

8. • Product: Creating a marketing campaign starts with an understanding of the product itself. Who needs
it, and why? What does it do that no competitor's product can do? Perhaps it's a new thing altogether
and is so compelling in its design or function that consumers will have to have it when they see it. The
job of the marketer is to define the product and its qualities and introduce it to the consumer.
• Price is the amount that consumers will be willing to pay for a product. Marketers must link the price to
the product's real and perceived value, while also considering supply costs, seasonal discounts,
competitors' prices, and retail markup.
• Place is the consideration of where the product should be available—in brick-and-mortar stores and
online—and how it will be displayed.
• The goal of promotion is to communicate to consumers that they need this product and that it is
priced appropriately. Promotion encompasses advertising, public relations, and the overall media
strategy for introducing a product.

9. • People reflects, in part, internal marketing and the fact that employees are critical to marketing success.
Marketing will only be as good as the people inside the organization. It also reflects the fact that
marketers must view consumers as people to understand their lives more broadly, and not just as they
shop for and consume products and services.
• Processes reflects all the creativity, discipline, and structure brought to marketing management.
Marketers must avoid ad hoc planning and decision making and ensure that state-of-the-art marketing
ideas and concepts play an appropriate role in all they do. Only by instituting the right set of processes
to guide activities and programs can a firm engage in mutually beneficial long-term relationships.
Another important set of processes guides the firm in imaginatively generating insights and
breakthrough products, services, and marketing activities.
• Programs reflects all the firm’s consumer-directed activities. It encompasses the old four Ps as well as a
range of other marketing activities that might not fit as neatly into the old view of market ing. Regardless
of whether they are online or offline, traditional or nontraditional, these activities must be integrated
such that their whole is greater than the sum of their parts and they accomplish multiple objectives for
the firm.
• We define performance as in holistic marketing, to capture the range of possible outcome measures that
that have financial and nonfinancial implications (profitability as well as brand and customer equity), and
implications beyond the company itself (social responsibility,legal,ethical,and community related). Finally,
these new four Ps actually apply to all disciplines within the company, and by thinking this way,
managers grow more closely aligned with the rest of the company.

10. CORE MARKETING CONCEPTS
• Needs, Wants, and Demands:
• Needs are the basic human requirements such as for air, food, water, clothing, and shelter. Humans also
have strong needs for recreation, education, and entertainment.
1. Stated needs (The customer wants an inexpensive car.)
2. Real needs (The customer wants a car whose operating cost, not initial price, is low.)
3. Unstated needs (The customer expects good service from the dealer.)
4. Delight needs (The customer would like the dealer to include an onboard GPS navigation system.)
5. Secret needs (The customer wants friends to see him or her as a savvy consumer.
• These needs become wants when they are directed to specific objects that might satisfy the need. Wants
are shaped by our society.
• Demands are wants for specific products backed by an ability to pay. Many people want a Mercedes;
only a few are able to buy one.

11. TARGET MARKETS, POSITIONING, AND
SEGMENTATION
• Not everyone likes the same cereal, restaurant, college, or movie.
Therefore, marketers start by dividing the market into segments. They
identify and profile distinct groups of buyers who might prefer or
require varying product and service mixes by examining demographic,
psychographic, and behavioral differences among buyers.
• After identifying market segments, the marketer decides which present
the greatest opportunities— which are its target markets. For each, the
firm develops a market offering that it positions in the minds of the
target buyers as delivering some central benefit(s).
• Volvo develops its cars for buyers to whom safety is a major concern,
positioning its vehicles as the safest a customer can buy.

12. OFFERINGS AND BRANDS
• Companies address customer needs by putting forth a value
proposition, a set of benefits that satisfy those needs. The intangible
value proposition is made physical by an offering, which can be a
combination of products, services, information, and experiences.
• A brand is an offering from a known source. A brand name such as
McDonald’s carries many associations in people’s minds that make up its
image: hamburgers, cleanliness, convenience, courteous service, and
golden arches. All companies strive to build a brand image with as
many strong, favorable, and unique brand associations as possible

13. VALUE AND SATISFACTION
• The buyer chooses the offerings he or she perceives to deliver the most
value, the sum of the tangible and intangible benefits and costs to her.
Value, a central marketing concept, is primarily a combination of quality,
service, and price (qsp), called the customer value triad. Value
perceptions increase with quality and service but decrease with price.
We can think of marketing as the identification, creation,
communication, delivery, and monitoring of customer value.
• Satisfaction reflects a person’s judgment of a product’s perceived
performance in relationship to expectations. If the performance falls
short of expectations, the cus tomer is disappointed. If it matches
expectations, the customer is satisfied. If it exceeds them, the customer
is delighted.

14. MARKETING CHANNELS
• Communication channels
• Distribution channels
• Service channels

15. SUPPLY CHAIN
• The supply chain is a longer channel stretching from raw materials to
components to finished products carried to final buyers. The supply
chain for coffee may start with Ethiopian farmers who plant, tend, and
pick the coffee beans, selling their harvest to wholesalers or perhaps a
Fair Trade cooperative.

16. COMPETITION
• Competition includes all the actual and potential rival offerings and
substitutes a buyer might con sider.

17. MARKETING ENVIRONMENT
• A marketing environment encompasses all the internal and external
factors that drive and influence an organization's marketing activities.
• Internal environment
• Micro environment / task environment
• Macro environment / broad environment

18. EXCHANGE AND TRANSACTIONS
• Exchange is the process of acquiring a desired product by giving goods or services of the same
value in return. When exchange gets completed, then it is known as “transaction”
• Transaction is an act of exchanging goods and services between 2 parties.
• Four conditions must exist for an exchange to be able to occur:
 There must be at least two parties.
 Each must have something that might be of value to the other.
 Each can communicate and deliver what they are offering.
 Each is free to accept or reject what is on offer.
 Each party trusts/respects the other sufficiently to take the exchange seriously.

19. EVOLUTION OF MARKETING
• The Production Concept
• The Product Concept
• The Selling Concept
• The Marketing Concept
• Societal Marketing Concept

20. HOLISTIC MARKETING

21. MARKETING PLANNING PROCESS
Business Mission SWOT Analysis
Goal
Formulation
Strategy
Formulation
Program
Formulation
Implementation
Feedback
And
control

22. • BUSINESS MISSION: Each business unit needs to define its specific mission within the broader company
mission.
• SWOT analysis: A successful business activity is built on the company's core competences. The SWOT
analysis is a popular concept to conduct an overall evaluation of a company's strengths (S), weaknesses
(W) - the internal environment - and opportunities (O) and threats (T) - the external environment. Based
on contrasting the company's strengths and weaknesses with market opportunities and (potential)
threats, it gives recommendations for actions in the resulting cells.
• Goal formulation: Goals are objectives that are specific with respect to magnitude and time.
• When conducting management by objectives, there are four relevant criteria:
• Objectives must be arranged hierarchically, from the most to the least important.
• Objectives should be quantitative whenever possible.
• Goals should be realistic.
• Objectives must be consistent (for example, sales and profit cannot be maximized simultaneously).
• Strategy formulation:
• Cost leadership - 'being cheaper than ...'
• Differentiation - 'being different from ...’
• Concentration/focus - 'being narrower/more specialized than ...'

23. • Strategic Alliances:
• Product or service alliances
• Promotional alliances
• Logistics alliances
• Pricing collaborations
• Program Formulation and Implementation: Even a great marketing strategy can be sabotaged by poor
implementation.
• Strategy is only one of seven elements—all of which start with the letter s—in successful business practice.
The first three—strategy, structure, and systems—are considered the “hardware” of success. The next four—
style, skills, staff, and shared values—are the “software.”
• Feedback and Control
It is more important to “do the right thing”—to be effective—than “to do things right”—to be efficient.
• The key to organizational health is willingness to examine the changing environment and adopt new goals
and behaviors.

24. FUNCTIONS OF MARKETING
• Market information
• Exchange functions
• Product designing and development
• Physical distribution
• Standardising and grading
• Financing
• Risk taking
• Packaging, Labelling and branding
• Customer support
• Research
• Buying function
• Promotion
• Pricing

25. SCANNING THE BUSINESS
ENVIRONMENT

28. VALUE CHAIN
• Harvard’s Michael Porter has proposed the value chain as a tool for
identifying ways to create more customer value.
• To be successful, a firm also needs to look for competitive advantages
beyond its own operations, into the value chains of suppliers,
distributors, and customers.

29. PORTER’S VALUE CHAIN

30. VALUE CHAIN ANALYSIS (VCA)
Identification of Sub activities for each primary
activity
Identification of Sub activities for each secondary
activity
Identify & Establish links
Look for opportunities to enhance value

31. CORE COMPETENCIES
• Core competencies are the defining characteristics that make a business or an individual
stand out from the competition.
 Core competencies should be:
a) Pervasive in nature
b) Accessible
c) Valuable
d) Rare
e) Difficult to imitate
f) Non-substitutable
 BUILDING CORE COMPETENCE: Sustainable Competitive Advantage & VCA

32. MARKETING INTERFACE WITH OTHER
FUNCTIONAL AREAS
MARKETING
PRODUCTION
R&D
ACCOUNTING
OPERATIONS
PURCHASING
Information
System
HRM
FINANCE

33. MARKETING IN GLOBAL ENVIRONMENT
• Global marketing refers to the strategic practice of promoting and
selling products or services globally.
• Domestic marketing
• Foreign marketing
• Comparative marketing
• International trade

34. PROSPECTS OF GLOBAL MARKETING
• EXPORTING
A. ESTABLISHMENT
B. JOINT VENTURE/COLLABORATION
C. LICENSING ARRANGEMENTS
D. CONSULTANCY SERVICES
E. TECHNICAL AND MANAGERIAL KNOW HOW
• IMPORTING
• RE-EXPORTING
• MANAGEMENT OF INTERNATIONAL OPERATIONS

35. IMPORTANCE/OPPORTUNITES OF
INTERNATIONAL MARKETING
• Diversification
• Expansion opportunities
• Increased market share
• Career opportunities
• Global recognition
• Investment opportunities
• Increased standard of living
• Mobility of factors of production
• Cooperative Agreeements

36. CHALLENGES IN GLOBAL MARKETING
• Self Reference Criterion (SRC) & Ethnocentrism
• Market difference
i. Political and legal difference
ii. Cultural difference
iii. Economic difference
iv. Currency difference
v. Language difference
vi. Infrastructure difference
vii. Trade Practice difference
viii. High costs of distance
• MANAGEMENT MYOPIA
• BRAND HISTORY
• ORGANISATIONAL CULTURE
• NATIONAL CONTROLS AND BARRIERS

37. RURAL MARKETING
• Rural marketing is buying, selling and promoting goods & services in
rural areas.
• About 70 per cent of India’s population lives in villages. More than 800
million people live in villages of India.
• The urban to rural flow consists of agricultural inputs, consumer
durables, fast-moving consumer goods (FMCG) such as soaps,
detergents, cosmetics, textiles, and so on. The rural to urban flow
consists of agricultural produce such as rice, wheat, sugar, and cotton.
There is also a movement of rural products within rural areas for
consumption.

38. FEATURES OF RURAL MARKETING
• LARGE AND SCATTERED MARKET
• MAJOR INCOME FROM AGRICULTURE
• IMPROVEMENTS IN AGRICULTURAL PRODUCTS
• IMPROVEMENTS IN STANDARD OF LIVING
• TRADITIONAL OUTLOOK, BUT NO STEREOTYPE CONSUMER
• INFRASTRUCTURE FACILITIES
• DYNAMIC
• INNOVATION-DRIVEN

39. PROSPECTS AND SCOPE OF RURAL
MARKETING
• AGRICULTURAL CONSULTANCY
• BANKING, MICROFINANCE AND LOAN FACILITIES
• HEALTHCARE
• TELECOM SERVICES
• AUTOMOBILE SERVICES
• TV CHANNEL SERVICES
• EVENT MANAGEMENT
• BEAUTY PARLOURS

40. CHALLENGES IN RURAL MARKETING
• Barter system
• Underdeveloped people and markets
• Lack of proper physical communication facilities
• Diverse languages
• Low levels of literacy
• Seasonal and irregular demands
• Economic and social backwardness
• Prevalence of spurious brands
• Different way of thinking Problems in physical distribution

41. BARTER SYSTEM
• Trading goods or services between 2 or more parties without the use of
money.
• This is still in practice in many villages of the world.

42. UNDERDEVELOPED PEOPLE AND
MARKETS
• People in rural segments spend their most times in household chores
and farming which takes a large toll on their personal development. It
leads to the underdeveloped personality of consumers which makes the
consumer highly dependent on its surroundings for buying decisions.

43. LACK OF PROPER PHYSICAL
COMMUNICATION FACILITIES
• Nearly 50% of the villages in India do not have proper roads, especially
during the monsoon. Around 600 villages are not feasible for
electrification.

44. DIVERSE LANGUAGES
• The number of languages and dialects vary widely from state to state,
region to region and from district to district.
• The messages have to be delivered in the local languages and dialect.

45. LOW LEVELS OF LITERACY
• The literacy rate is low in rural areas as compared to urban areas. This
again leads to problem of communication for promotion purposes. Print
medium becomes ineffective and to an extent irrelevant in rural areas
since its reach is poor.

46. SEASONAL AND IRREGULAR DEMANDS
• The demand for goods is irregular and seasonal. As agriculture is the predom-
inant occupation in villages, demand for goods generally depends on the harvest
periods. Their cash flows are better after harvest. The demand is also festival and
marriage linked. For example, the demand for sweets goes up during Diwali or
Pongal.

47. ECONOMIC AND SOCIAL
BACKWARDNESS
• Caste systems, subcastes, false beliefs

48. PREVALENCE OF SPURIOUS BRANDS
• For any branded product there are a multitude of local variants, which
are cheaper and therefore more desirable to villagers.

50. DIFFERENT WAY OF THINKING
• There is a vast difference in the lifestyles of the people. The choice of brands that an urban
customer enjoys is not available to the rural customer, who usually has two to three choices.
As such, the rural customer has a fairly simple thinking and their decisions are still governed
by customs and traditions. It is difficult to make them adopt new practices.
• (belief, attitude, perceptions, reluctant to change)

51. PROBLEMS IN PHYSICAL DISTRIBUTION
• transportation
• difficult roads
• warehousing problems
• communication problems