Marketing Mix, Concepts in Marketing, Marketing and Selling, Importance of Marketing, Scope of Marketing, Strategic Planning, BCG Growth-Share Matrix,Customer Value, Measuring, Marketing Environment, Environmental Scanning, Rural Marketing, Market Segmentation in Rural Markets.

1. Marketing Management
Module I

2. What is Marketing?
Marketing is a human activity directed at satisfying needs & wants
through exchange process.

3. Needs , wants and demands
Needs
wants
Demands

4. Exchange
◦The provision or transfer of goods, services, or ideas in return
for something of value

5. Marketing Mix
The tools available to a business to gain the reaction it is
seeking from its target market in relation to its marketing
objectives.
Traditional 4 P’s v/s Modern 7 P’s

7. Concepts in Marketing
1.Production Concept
2.Product Concept
3.Selling Concept
4.Marketing Concept
5.Societal Marketing Concept (includes CRM)

8. Starting Point Focus Means Ends
Factory Existing Products
Selling and
promoting
Profit through
sales volume
Market Consumer Need
Integrated
Marketing
Profit through
Consumer
satisfaction
The selling concept
The marketing concept
Marketing and Selling
Soap with Fairness Property
Advertisement
Sales Promotion

9. Importance of Marketing
Developing the products or services that customers want.
Pricing the products or services correctly
Making the products or services readily available to the
customers
Promoting the product or service
Delivers Profitable Growth

10. Scope of Marketing
What is Marketing?
What is Marketed?
Who Markets?
How Business & Marketing are changing?

11. Strategic Planning
Strategic planning is defined as:
◦“The process of developing and maintaining a strategic fit between the
organization’s goals and capabilities and its changing marketing
opportunities.”

12. Strategic Planning
Defining the purpose & mission
Setting Objectives & Goals
Designing the business portfolio
Developing detailed marketing plans

13. Strategic Planning
Designing Business
Portfolio
Step 1:
Analyze the current
business portfolio
Identify strategic business
units (SBUs)
Assess each SBU:
◦ The BCG growth-share matrix
classifies SBUs into one of four
categories using the:
◦Market growth rate
◦SBU’s relative market share
within the market.

14. BCG Growth-Share MatrixBCG Growth-Share Matrix
High RelativeHigh Relative
Market ShareMarket Share
HighHigh
MarketMarket
GrowthGrowth
LowLow
MarketMarket
GrowthGrowth
StarsStars
CashCash
CowsCows
QuestionQuestion
MarksMarks
DogsDogs
Low RelativeLow Relative
Market ShareMarket Share

15. Strategic Planning
Designing Business
Portfolio
Step 2:
Shape the future
business portfolio
Determine the future role of each
SBU and choose the appropriate
resource allocation strategy:
◦ Build
◦ Hold
◦ Harvest
◦ Divest
SBUs change positions over time

16. Strategic Planning
Product/Market Expansion GridProduct/Market Expansion Grid
Existing ProductsExisting Products New ProductsNew Products
ExistingExisting
MarketsMarkets
NewNew
MarketsMarkets
MarketMarket
PenetrationPenetration
MarketMarket
DevelopmentDevelopment
ProductProduct
DevelopmentDevelopment
DiversificationDiversification

17. Marketing Planning
Process
Assessing opportunities & Threats
Establishing Marketing Objectives
Framing Marketing Strategies
Programming of Operations
Developing Marketing Mix
Designing resource-mobilization plan
Monitoring the operations

18. Customer Value
From customer point of view
◦How a customer perceive any product profitable for him/her on
different grounds
From firm point of view
◦Profitability of any customer
Customer Value Model
◦Conventional firm centric
◦Contemporary customer centric

19. Measuring the Customer
Value
Customer Satisfaction
Customer Loyalty

20. Marketing Environment
It consists of the actors & forces to the marketing that
affect marketing management's ability to develop and
maintain successful exchanges with its customers"

21. Components of Marketing
Environment
Internal Environment
External Environment
◦Micro
◦Macro

22. Components of Marketing
Environment
Micro Environment
◦Customers
◦Suppliers
◦Intermediaries
◦Employees
◦Competitors
◦Shareholders

23. Components of Marketing
Environment
Macro Environment
◦Economic Environment
◦Political Environment
◦Social & Cultural Environment
◦Demographic Environment
◦Technological Environment

24. Environmental Scanning
Gathering information & analyzing it
Forecasting the Impact
Techniques
◦Marketing Information system
◦Marketing Research
◦Sales force opinion
◦Delphi Technique
◦Quantitative Techniques

25. Rural Marketing
Rural Marketing is defined as any marketing activity in
which one dominant participant is from a rural area. This
implies that rural marketing consists of marketing of inputs
(products or services) to the rural as well as marketing of
outputs from the rural markets to other geographical areas.

26. Profile of Rural Market in
India
Due to near saturation of urban markets, companies are
looking at rural markets for further expansion & growth.
There are 742 million rural consumers.
Good growth of agriculture during 1990s – as a result of
13 consecutive good monsoons (barring 2002 & 2003).
From 8th
to 10th
Plan, there has been 600% increase in 5-
Year Plan outlay.

27. Profile of Rural Market in
India
Between 1997-98 and 2004-05, there has been 230% increase in
flow of institutional credit for agriculture.
Since 1998, 41 million Kisan Credit Cards (KCC) have been issued
and Rs.97,700 crore worth of credit has been sanctioned.
Growth of agriculture has resulted in rapid rise of rural incomes.

28. Profile of Rural Market in
India
Census of India – any habitation with population density of
less than 400 per sq. km., where at least 75% of male
working population is engaged in agriculture & where
there exists no municipality or board.
Of the nearly 6.4 lakh villages in India, only 20,000 villages
have populations of more than 5000.
Most companies in FMCG sector would define rural as any
place with a population upto 20000.
Durable & agri-input companies would consider any town
with a population below 50000 as rural

29. Sales increased as Compare to
2010 in 2011
Milk & allied products 41%, while it was only 8% in 2010
Shampoo & Toilet soap 10 to 25%, demand of “Dove” &
“Pears” is increased drastically.
Toothpaste 47%, which was 31% in 2010
Rural Pharma market alone grew by 18.8%

30. Some facts
As per NSSO in 2010-11 per capita expenditure is now
Rs.953 per month, which is 70% more than the year 2004-
05
MGNAREGA has increased the income of rural women
Branded commodities are preferred because of increased
awareness
Rural population has grown by 12% in last decade

31. Few myths about rural
sector
Rural people do not buy brands – in fact, branded
consumption, both national & regional, accounts for
80% of sales of FMCGs.
Rural consumers buy cheap products – in reality, they
seek value for money.
Rural market is homogeneous mass – in fact it is
fascinatingly heterogeneous – a farmer in Punjab is
more progressive than his counterpart in Bihar. A
farmer in Karnataka is far more educated than one in
Rajasthan, and so on.

32. Problems of Rural
Marketing
Physical Distribution
Channels of Distribution
Sales Force Problems
Marketing Communication
Duplicated Products
Customers’ Profile

33. Channel Management in Rural
Markets
 Local Retailers & Dealers
 Co-operative Societies
 Public Distribution System
 Multipurpose distribution centers by petroleum
and oil companies
 Feeder Markets
 Hats & Melas
 Agricultural Dealers

34. Challenges of Rural
Communication
Widespread geographical dispersion (6,38,000
villages) – many beyond reach of conventional
media.
Vast variations in literacy (90% in Kerala, 44%
in Bihar)
Heterogeneous nature of consumers (16
scheduled languages, 114 local vernaculars)
Variations in reach of TV ( Kerala 63%, Bihar
17%) and print media (Kerala 65%, Bihar 9%).

35. Marketing Communication
in Rural Markets
Mass Media
◦ Electronic Media:- TV, Radio & Cinema
◦ Print Media
◦ Wall Painting & Hoardings
Market Media
◦ Haat or Mandi or Mela
◦ Video Van
◦ Point of Purchase display
Folk Media
◦ Puppet Show
◦ Music Show

36. Market Segmentation in
Rural Markets
Geographic- Region, village size, density, climate, culture etc.
Demographic: Age, family structure, income, education, house
type, occupation, religion, caste etc.
Psychographic: Social class, lifestyle, personality etc.
Behavioral: Occasion, benefits sought, user status, usage rate,
loyalty status, place of purchase etc.

37. Presented by
Dr. Dharmesh Motwani.
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