The document discusses key concepts in marketing management. It begins by outlining the course outcomes for marketing management, including understanding concepts, buyer behavior, product mix, and market analysis. It then defines the differences between a market and marketing. The remainder of the document covers various marketing functions and concepts like the marketing mix, customer value, marketing environment, and changing practices in marketing.

1. Marketing Management
By
Dr.Karthick.K
Head-Department of Management
Nilgiri College of Arts & Science

2. Course Outcome
1. Understood the various concepts of
marketing.
2. Learnt the buyer behavior and market
segmentations.
3. Learnt the product mix, channels of
distribution and promotion of a product.
4. Learnt about the market and analyzing the
market conditions.

3. Market Vs Marketing
• Market
Place where buyer and seller meet each
other to exchange goods and
services.
• Marketing
Identifying the needs and wants of
customer.

4. Marketing Management
• A Market is a place or geographical areas where
buyers and sellers meet and function, goods or
services are offered for sale, and transfer of
ownership of title occur.
• Marketing: “Marking is a total system of designed
to plan, price, promote and distribute want
satisfying products and services to present
potential customers”.
• Marketing Management: “Is the process of planning
and executing the conception, pricing, promotion and
distribution of ideas, goods, services to create
exchanges that satisfy individual and organization
goals”.

5. Marketing concept:
• Production concept
• Sales concept
• Marketing concept
• Consumer oriented concept

6. Marketing functions:
1. Functions of Exchange
a) Buying (Assembling)
b) Selling (demand creation)
2. Functions of physical supply:
a)Transportation
b)Storage and warehousing
3. Facilitating Function
a) Finance
b) Risk taking
c) Standardization
d) Market Information – Collection and
interpretation

7. Market Management Functions
I Product Planning
• i) Pricing
• ii) Warehousing
• iii) Transport
• iv) Packaging
• v) Branding

8. Market Management Functions
II Sales Organization:
– Selection, Training and Motivating
Salesmen
– Territory allocation and quotas
– Sales control
– Forecasting
– Control of Expenses

9. Market Management
Functions
III Market Research
– New Market
– Market Segmentation
– Competition
– Substitutes
– Co-ordination with various other
departments

10. Market Management
Functions
IV Physical Distribution
– Channels
– Service to customers
V Advertising
a) Displays
b) Sales Campaign
c) Other Sales Promotional devices

11. Market Mix (4 Ps)
Product Price Place Promotion
1. Product variety 1. List of Price 1. Distribution Channels 1. Sales Promotion
2. Quality 2. Discount 2. Market Coverage 2. Advertising
3. Design 3. Allowances a) Intensive 3. Sales Force
4. Features 4. Payment period b) Selective 4. Public relation
5. Brand Name 5. Credit Terms c) Exclusive 5. Direct Marketing
6. Packaging 6. Pricing Strategy 3. Inventory
7. Sizes 7. Retail price 4. Warehousing
8. Services 8. Wholesale price 5. Transportation
9. Warranties 9. Seasonal pricing
10. Return 10. Price Flexibility
11. Price discrimination

12. Service Mix
• People
• Process
• Physical Evidence

13. Customer Value and
Satisfaction
• Customer value is the ratio of perceived
benefits and costs that the customer has to
incur in acquiring that product or service.
• Customer delivered value is the difference
between total customer value and total
customer cost
• Total customer value is the bundle of benefits
customers expect from a given product or
service.
• Total customer cost is the bundle of costs
customers expect to incur in evaluating
obtaining, using and disposing of the product of
service.

14. Product
Value
Service
Value
Persona
l Value
Image
Value
Total
Value
Determinants of customer delivered
value.
Product
Value
Service
Value
Persona
l Value
Image
Value
Total
Value
Customer
Delivered
Satisfaction: Is a person’s feelings of pleasure
or disappointment resulting from comparing a
product’s perceived performance (or outcome)
in relation to his or her expectations.

15. Marketing Environment
• Environment plays a critical role in
business, especially in marketing. The
marketing environment is constantly
changing and thus presenting new
opportunities and threats.
• ‘A Marketer’s task is to correctly
analyse the environment and design a
marketing mix, which will fit the
environment.

16. Two types of environmental
forces
Macro environment
 Political
 Economic
 Socio-cultural
 Technological
 Legal
 Ecological

17. Micro Environment
Consumer
Competitors
Company
Market
Suppliers
Intermediaries
Public

18. Environmental Scanning
• The major components of
environmental scanning are
1. External Environmental analysis
2. Customer analysis
3. Competitor analysis
4. Market analysis
5. Company analysis

19. Customer Analysis
“Who are our Customers”
– Existing
– Potential
– Customer Segmentation
– Customer Motivation
– Price sensitivity of customers
– Unmet needs

20. Competitor Analysis
1. Who are the competitors?
– Against whom to we usually compete?
– Who are most intense competitors?
– Who are the markers of the substitute products
– Who are the potential competitive entrants
– What can be done to discourage them?
2. Evaluating the competitors
– What are their objectives and strategies?
– What are their entry and exit barriers?
– What is their cost structure
– Do they have cost advantages or disadvantage?
– What are their strengths and weakness?
– What are their assets and competencies?
3. Under standing the competitors.
– Their size
– growth and profitability
– Their image and positioning strategy
– Their level of commitment

21. Market Analysis
• Actual and Potential Market size
• Market growth rate
• Market Profitability
• Cost structure
• Distribution System
• Trends and developments
• Key success factors – skills and competencies
• Competitive of nature of the Market

22. Company Analysis
• Organization's current market position.
• Nature of environmental opportunities and
threats
• Organization's resource capability to capitalize on
the opportunities and its ability to guard itself
against threats.
The company has to review “SWOT” its
– Strength
– Weakness
– Opportunities
– Threats

23. Super
Markets,
Shopping
Complex,
Malls
Buyers Target
Group
Marketing
Research Agencies
Advertising
Agencies
Marketing
Communications
Marketing Intermediaries
Advertising, Sales Promotion
Personal Selling, Publicity Telemarketing
Online Shopping etc,
Flow of Flow of Money
Goods & Service & Credit Card
Producers and
Sellers
Feed backs
Adapting Marketing to new Liberalized Economy – Digitalization, customization
Dimension of Exchange Process under Modern Complex Marketing

24. CHANGING MARKETING
PRACTICES
CHANGING MARKETING PRACTICES
1. Customer Concept
2. Social Marketing Concept
3. Relationship Marketing
How the Business Environment is changing?
(I) As a result of major radical societal Forces:
i) Technological Advances
ii) Globalization
iii) Deregulation

25. Marketers are also
switching to new concepts
1.Customer relationship marketing
2. Customer life time value
3. Customer share
4. Target marketing
5. Integrated Marketing
Communications

26. E-Business –setting up
Websites
• Banners or side panels
• Sponsorships
• pop-up and pop-under
• portal use
• E-mail

27. Marketing Information
System (MIS)
• MIS assesses the information needs
of different managers and develops
the required information from
supplied data in time regarding
competition, prices, advertising
expenditures, sales, distribution and
market intelligence, etc.

28. Boston Consulting Group (BCG) Matrix
1. Using the BCG, where a company
classifies all its SBUs according to
the growth – share matrix
2. The vertical axis, market growth
rate, provides a measure of market
attractiveness.
3. The horizontal axis, relative market
share, serve as a measure of company
strength in the market.

29. Stars
* * *
Question
marks
? ? ?
Cash Cows Dogs
Market growth rate
high
Competitive Positions (Relation share of largest competition
BCG Growth Share
Matrix

30. Developing Growth Strategies.
Product / Market Growth Matrix
Existing Products New Products
Existing
Market
New
Markets
1. Market
Penetration
2. Market
Development
3. Product
Development
4. Diversification