This document outlines the topics that will be covered in a marketing management course. The course will cover 6 units: Marketing Concepts, Product Decision, Price Decision, Physical Distribution Decision, Promotion Decision, and Consumer Behavior. Each unit will explore key concepts and factors related to that area of marketing. For example, the Pricing Decision unit will discuss concepts of price, factors affecting price determination, pricing policies and types of price. The document also provides an overview of some lecture topics within each unit, such as new product development, branding, pricing strategies, and distribution channels.

1. Marketing
Management
Thursday, October 1, 2020 1
B
M
2
0
5

2. Thursday, October 1, 2020 2
Marketing Management
Unit 1 – Marketing Concepts
Unit 4 – Physical Distribution Decision
Unit 2 – Product Decision
Unit 3 – Price Decision
Unit 5 – Promotion Decision
Unit 6 – Consumer Behavior

3. Meaning & Definition
Nature & Scope of Marketing
Importance of Marketing Management
Marketing orientation / Concepts
Functions of Marketing
 Marketing Mix – 7 P’s
Thursday, October 1, 2020 3
Unit 1 – Marketing Concepts

4. Thursday, October 1, 2020 4
Unit 2 – Product Decision
 Why New product fails
 Branding Functions
 Types of Branding labeling

5. Thursday, October 1, 2020 5
Unit 3 – Pricing Decision
 Concepts of Price
 Factors affecting Price determination
 Pricing Policies
 Types of Price

6. Thursday, October 1, 2020 6
Pricing Practices & Decisions

7. Thursday, October 1, 2020 7
Pricing Practices & Decisions
• Price is the amount of money charged
for a good or service
• The only marketing mix element that
produces revenue. Marketing MIX (4 P’s)
• Charging too much, chances of loosing
customers, charging too little cuts
revenue

8. 8
Pricing Practices & Decisions
“It is the process of determining the value of
a product in terms of money before it is
offered to the target market for sale”.

9. Internal Factors External Factors
Cost of the Product
The predetermined Objectives
Image of the Firm
Product Life Cycle
Credit Period Offered
The Case Study
Sensitivity Training
Business Games
In-Basket Method
Role Playing
Simulation
Lecturing
Factors affecting Price determination
Promotional Activity

10. 10
1. Cost of the Product
The most important factor affecting the
price of a product is the product cost.
While fixing the prices of a product, the
firm should consider the cost involved in
producing the product. This cost includes
both the fixed and variable cost. Thus
while fixing the prices, the firm must
recover both these costs.

11. 11
2. The predetermined Objectives
While fixing the prices of the product, the
marketer should consider the objectives of
the firm. For instance, if the objective of a
firm is to increase return on investment,
then it may charge a higher price, and if
the objective is to capture a large market
share, then it may charge a lower price.

12. 12
3. Image of the firm
The price of the product may also be
determined on the basis of the image of
the firm in the market. For instance, HUL
and Procter & Gamble can demand a
higher price for their brands, as they enjoy
goodwill in the market.

13. 13
4. Product life cycle
The stage at which the product is in its
product life cycle also affects its price. For
instance, during the introductory stage the
firm may charge lower price to attract the
customers, and during the growth stage, a
firm may increase the price.

14. 14
5. Credit period offered:
The pricing of the product is also affected
by the credit period offered by the
company. Longer the credit period, higher
may be the price, and shorter the credit
period, lower may be the price of the
product.

15. 15
6. Promotional activity:
The promotional activity undertaken by
the firm also determines the price. If the
firm incurs heavy advertising and sales
promotion costs, then the pricing of the
product shall be kept high in order to
recover the cost.

16. 16
External Factors:
1. Competition:
While fixing the price of the product, the
firm needs to study the degree of
competition in the market. If there is high
competition, the prices may be kept low to
effectively face the competition, and if
competition is low, the prices may be kept
high.

17. 17
2. Consumers:
The marketer should consider various
consumer factors while fixing the prices.
The consumer factors that must be
considered includes the price sensitivity
of the buyer, purchasing power, and so on.

18. 18
3. Government control:
Government rules and regulation must be
considered while fixing the prices. In
certain products, government may
announce administered prices, and
therefore the marketer has to consider
such regulation while fixing the prices.

19. 19
4. Economic conditions:
The marketer may also have to consider
the economic condition prevailing in the
market while fixing the prices. At the time
of recession, the consumer may have less
money to spend, so the marketer may
reduce the prices in order to influence the
buying decision of the consumers.

20. 20
5. Channel intermediaries:
The marketer must consider a number of
channel intermediaries and their
expectations. The longer the chain of
intermediaries, the higher would be the
prices of the goods.

21. Pricing strategies: or Methods of Price
Determination
1. Psychological Pricing
21
2. Price leadership
3. Value Based
4. Differentiated Pricing
5. Cost Based Pricing

22. 6. Competition Based Pricing
22
7. Demand Based Pricing
Pricing strategies: or Methods of Price
Determination

23. 1. Psychological Pricing
23
Emotional appeal to the consumer about the
reliability & accuracy of the price.
A customer who feels Rs.10 is too much for a pen
may buy the same when it is priced at Rs. 9.75/-,
Pricing @ 199.90 BATA Shoes

24. 24
Leaders set the price to be followed by others.
When leaders raise or lower the price, all other
will follow.
2. Price leadership

25. 25
Based on the value it creates for the
customer. i.e. "Pay for Performance"
3. Value Based
Consumers balance the benefits of a purchase
against its costs & if the benefits are more than the
cost, they will purchase the product.

26. 26
Different prices are charged for the same
product or service in different zones or areas
of the market
4. Differentiated Pricing

27. 27
The firm calculates the cost for producing the
product and adds on a percentage (profit) to
that price to give the selling price.
5. Cost Based Pricing
Price = Direct costs + Overhead Costs + Profit Margin

28. 28
Setting the price based upon prices of the
similar competitor products.
6. Competition Based Pricing

29. 29
The service firm needs to understand
relationship between demand & price, to see
how demand varies at different price levels.
7. Demand Based Pricing

30. New Product Pricing
30
Skimming
Pricing
A very high price is fixed in the
initial stages so as to skim the
cream of demand & earn enormous
profit

31. New Product Pricing
31
Penetration
Pricing
Setting a low price for the product in the
beginning
Increase the sales on a large scale
Cut down or prevent the new competitors
from entering the market.

32. Thursday, October 1, 2020 32
Major Channels of Distribution

33. 13-33
Channel of Distribution
Is the 4th Component of Marketing Mix
Primary function
Find out suitable ways through which
goods have to be moved from Producers
to final Consumers.

34. 13-34
Channel of Distribution
Pathway composed of Intermediaries who
perform such functions to ensure smooth
flow of goods & services from producers to
final consumers.

35. Retailer
Wholesaler
Agents and
Brokers
A channel intermediary that
sells mainly to customers.
Is an intermediary entity in the
distribution channel that buys in bulk
and sells to resellers rather than to
consumers
A broker is an individual or firm that
charges a fee or commission for
executing buy and sell orders .
Names for Marketing Intermediaries

36. Channel alternatives available to the
marketing Manager:
Broadly divided into two categories namely
13-36
Direct ( Zero Level)
Indirect

37. Direct Marketing Channel ( Zero Level):
13-37
Producer
Direct
Selling at Manufacturers Plant
Door to Door Selling (Salesman)
Mail Order Houses
Sales by Opening Own Shops
Shortest channel a producer can adopt
Goods move directly from the producers to the
consumers without any middleman
Methods of Selling

38. 13-38
• Types of Marketing Channels
– Consumer Goods

39. 13-39
Indirect Marketing Channel
• Producer sells through various middlemen
like Agents, Wholesalers, Retailers.
• Manufacturer loses personal contact with his
consumers but collects information through retailers
about the trend.

40. 13-40
 Types of Marketing Channels
 Business Goods
 Services

41. Thursday, October 1, 2020 41
Major Channels of Distribution

42. Producer Factors
Product Factors
Market Factors
Factors
Affecting
Channel
Choice
Exclusive Distribution
Selective Distribution
Intensive Distribution
Level of
Distribution
Intensity
What makes you choose a particular
channel?

43. Product Factors
that Affect
Channel
Choices
PRODUCT FACTORS
Product characteristics play an
important role in influencing the
channel selection.
The Marketing Executives must study
the
 uses of a product,
 its frequency of purchase;
 perish ability, the service required etc

44. Product Factors
That Affect
Channel
Choices
Purchase frequency
Perishability
Industrial & Technical Products
Seasonal Products
PRODUCT FACTORS
Need Direct Channel Of
Distribution
So as to Reduce The Cost and
burden of distribution of
such products.

45. Product Factors
That Affect
Channel
Choices
Purchase frequency
Perishability
Industrial & Technical Products
Seasonal Products
PRODUCT FACTORS
Nature need lesser number of
the intermediaries or agents
for their sale

46. Product Factors
That Affect
Channel
Choices
Purchase frequency
Perishability
Industrial & Technical Products
Seasonal Products
PRODUCT FACTORS Products which are highly
technical in nature are
usually distributed Directly
To The Industrial Users
and take lesser time and
adopt shorter channel of
distribution

47. Product Factors
That Affect
Channel
Choices
Purchase frequency
Perishability
Industrial & Technical Products
Seasonal Products
PRODUCT FACTORS such as woolen goods,
umbrellas, rain coats etc… can
be distributed through selling
agents to retailers &
customers
• Selling agents who
undertake the sale of
production by booking orders
from retailers

48. Market Factors
That Affect
Channel
Choices
Customer Profiles
Consumer or Industrial
Customer
Size of Market
Geographic Location
MARKET FACTORS
Large no of consumers
Indirect channel is desirable
(Scattered)
Small no of consumers Direct
channel is desirable

49. Market Factors
That Affect
Channel
Choices
Customer Profiles
Consumer or Industrial
Customer
Size of Market
Geographic Location
MARKET FACTORS
If the size of the order placed by the
customers is big, direct selling can be
undertaken by the manufacturer as in
case of industrial goods. But where
the size of the order is small,
middlemen are appointed to distribute
the products.

50. Market Factors
That Affect
Channel
Choices
Customer Profiles
Consumer or Industrial
Customer
Size of Market
Geographic Location
MARKET FACTORS
Customers scattered
Indirect channel is desirable
Customers concentrated
Direct channel is desirable

51. Producer Factors
That Affect
Channel
Choices
Producer Resources
Number of Product Lines
Desire for Channel Control
PRODUCER FACTORS
A company having good financial
resources may engage itself in
direct marketing in a profitable
manner.

52. Thursday, October 1, 2020 52

53. Thursday, October 1, 2020 53
Unit 4 – Marketing Mix
C
Factors influencing Channel Selection
Channel Policies & Promotional
Decisions