MARKETING MANAGEMENT

Prepared by G.B. Suresh

MARKETING MANAGEMENT (Two Marks question & Answer)

1) What

is Marketing Marketing deals with identifying and meeting human and social needs. One of the shortest definition of the marketing is meeting needs profitably. The American Marketing Association offers the following formal definition: Marketing is an organizational function and a set of process for creating, communicating and delivering value to the customers and for managing customer relationship in ways that benefit the organization its stake holders.

2) Integrated

Marketing

Integrated marketing takes on two levels. First, the various marketing functions-sales force, advertising, product management, marketing research, and so on must work together. Second must be well coordinated with other company departments.
3) Marketing

environment

Political, Social-cultural, Technological, Economical and Legal 4) Internal Marketing Environment Focuses on the resources the company has at hand as labor, finance, equipment, time and other factors of production. It also analyses the marketing team concerning structure, efficiency, effectiveness, correlation with internal functions and other organizations. These involve (5M's) Management
1. 2. 3. 4. 5. 5) External

Manpower Machine Method material and money.

Marketing Environment Macro factors are the one that affect the organization indirectly, these are (pestle)

Political Social-cultural Technological and Economical Legal

MARKETING MANAGEMENT

Prepared by G.B. Suresh

While Micro Factors are those which affect the organization directly it involve customers competitors
6) Marketing

suppliers and public

Audit

A marketing audit is a comprehensive, systematic, independent and periodic evaluation of a company's marketing assets. It is a effective tool in reviewing the competence of a marketing strategy, analyzing the objectives, policies and strategies of the company's marketing department as well as the manner and the means employed in attaining these goals.
7) Marketing

strategy

Is the process of planning and executing the conception(origin), pricing, promotion and distribution of ideas, goods and services that satisfies individual and organizational objectives. Strategy:A fundamental pattern of present and planned objectives, resource deployments, and interactions of an organization with markets, competitors, and other environmental factors the search for a favourable competitive position
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Marketing mix A planned mix of the controllable elements of a product's marketing plan commonly termed as 4Ps: product, price, place, and promotion. These four elements are adjusted until the right combination is found that serves the needs of the product's customers, while generating optimum income. Sometimes the first P (Product) is substituted by presentation. See also marketing and mega marketing.

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Market Orientation or Mkt Saturation

A business approach or philosophy that focuses on identifying and meeting the stated or hidden needs or wants of customers. See also product orientation and sales orientation. 10) Market penetration 1. The activity or fact of increasing the market share of an existing product, or promoting a new product, through strategies such as bundling, advertising, lower prices, or volume discounts. 2. A measure of the extent of a product's sales volume relative to the total sales volume of all competing products, expressed as a percentage. Formula: Sales volume of a product x 100 Total sales volume of all competing products.

MARKETING MANAGEMENT 11) Market orientation

Prepared by G.B. Suresh

A business approach or philosophy that focuses on identifying and meeting the stated or hidden needs or wants of customers. See also product orientation and sales orientation. 12) Market penetration pricing A strategy adopted for quickly achieving a high volume of sales and deep market penetration of a new product. Under this approach, a product is widely promoted and its introductory price is kept comparatively low. This strategy is based on the assumption that (1) the product does not have an identifiable price-market segment, (2) it has elasticity of demand (buyers are price sensitive), (3) the market is large enough to sustain relatively low profit margins, and (4) the competitors too will soon lower their prices.
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PORTERS 5 FORCE MODEL American Michael Porter was born in 1947. After initially graduating in aeronautical engineering, Porter achieved an economics doctorate at Harvard, where he was subsequently awarded university professorship, a position he continues to fulfil at Harvard Business School.

porter's five forces 1. Existing competitive rivalry between suppliers 2. Threat of new market entrants 3. Bargaining power of buyers 4. Power of suppliers

Porters Five Forces of Competitive Position 6.

5. Threat of substitute products (including technology change)

New Market Entrants, eg:

entry ease/barriers geographical factors incumbents resistance new entrant strategy

Supplier Power, eg:

Competitive Rivalry, eg:

brand reputation number and size of geographical firms buyer choice coverage industry size and trends buyers product/service size/number fixed v variable cost level quality bases change relationships with cost/frequency product/service ranges customers product/service bidding importance alan chapman 2005, based on Michael Porter's Five Forces of Competitive Position Model. processes/capabiliti

Buyer Power, eg:

MARKETING MANAGEMENT

Prepared by G.B. Suresh

Product and Technology Development, eg:

alternatives price/quality market distribution changes fashion and trends legislative effects

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TYPES OF BUYING BEHAVIOR

The four type of consumer buying behavior are: Routine Response/Programmed Behavior--buying low involvement frequently purchased low cost items; need very little search and decision effort; purchased almost automatically. Examples include soft drinks, snack foods, milk etc. Limited Decision Making--buying product occasionally. When you need to obtain information about unfamiliar brand in a familiar product category, perhaps. Requires a moderate amount of time for information gathering. Examples include Clothes--know product class but not the brand.

Extensive Decision Making/Complex high involvement, unfamiliar, expensive and/or infrequently bought products. High degree of economic/performance/psychological risk. Examples include cars, homes, computers, education. Spend alot of time seeking information and deciding. Information from the companies MM; friends and relatives, store personnel etc. Go through all six stages of the buying process. Impulse buying, no conscious planning.

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CRM:CRM (customer relationship management) is an information industry term for methodologies, software, and usually Internet capabilities that help an enterprise manage customer relationships in an organized way.

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Online marketing trends

Deals and Rewards Mobile Pull Marketing Mobile Push Marketing Three-Screen Marketing Local Online Marketing Proximity Marketing Social CRM 17) Applications of marketing research Marketing research is the gathering, recording, and analyzing of data that relates to a specific problem in marketing products or services.

MARKETING MANAGEMENT

Prepared by G.B. Suresh

Market and Economic Analysis, Product Research, Advertising Research, Sales Research
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Market segmentation

Segmentation is simply the process of dividing a particular market into sections, which display similar characteristics or behaviour. There are a number of segmentation variables that allow an organisation to divide their market into homogenous groups. These variables will be discussed briefly below-Demogrphic Segmentation, Geographic, Psychographic, ..etc
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Market opportunity Newly identified need, want, or demand trend that a firm can exploit because it is not being addressed by the competitors.

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Service marketing mix

Product, Price Place, Promotion, People Process and Promotion.

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Cause related marketing Cause-related Marketing is type of marketing involving the cooperative efforts of a "for profit" business and a non-profit organization for mutual benefit. Also referred to as cause marketing, it differs from corporate giving because the relationship between the two companies is not based around a specific donation.

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Types of markets:-

Whole sale and Retail market National & International Markets Consumer Markets Consumer markets are the markets for products and services bought by individuals for their own or family use. Goods bought in consumer markets can be categorised in several ways: Fast-moving consumer goods (FMCG's) These are high volume, low unit value, fast repurchase Examples include: Ready meals; Baked Beans; Newspapers Industrial Markets Industrial markets involve the sale of goods between businesses. These are goods that are not aimed directly at consumers. Industrial markets include Selling finished goods Examples include office furniture, computer systems

MARKETING MANAGEMENT

Prepared by G.B. Suresh

Holistic marketing

A marketing strategy that is developed by thinking about the business as a whole, its place in the broader economy and society, and in the lives of its customers. It attempts to develop and maintain multiple perspectives on the companys commercial activities. (or) Holistic marketing concept is based on development, design, and implementation of marketing programs, processes, and activities that recognize their breadth and interdependencies. Holistic marketing recognizes that "everything matters" with marketing and that a broad, integrated perspective is necessary to attain the best solution. Four main compnents of holistic marketing are: relationship marketing - integrated marketing - internal marketing - and socially responsible marketing. Definition of 'Hypermarket' A retail store that combines a department store and a grocery supermarket. Often a vary large establishment, hypermarkets offer a large variety of products such as appliances, clothing and groceries. Investopedia explains 'Hypermarket' Hypermarkets offer shoppers a one-stop shopping experience. The idea behind this big box store is to provide consumers with all the goods they require, under one roof. Some of the more popular hypermarkets include the Wal-Mart Supercenter, Fred Meyer and Super Kmart.
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Pull and Push Strategy In push marketing, you push your content or product towards the audience which may or may not be aware of it.

Conversely, in a pull-marketing scenario, the customer pulls your content or product towards themselves, because they are interested in learning more about it. 24) Customer perceived value The anticipated benefit from a consumer's perspective of a product or service. The customer perceived value stems from tangible, psychological and social advantages, and since it affects demand for a product, it needs to be taken into account when setting prices. (Or) Customers will buy from the firm that they see as offering the highest perceived value . Customer perceived value (CPV) is the difference between the prospective customers evaluation of all the benefits and all the costs of an offering and the perceived alternatives. Total customer value is the perceived monetary value of the bundle or economic, functional, and psychological benefits customers expect from a given market offering. Total customer cost is the bundle of costs customers expect to incur in evaluating, obtaining , using, and disposing of the given marketing offering.

MARKETING MANAGEMENT

Prepared by G.B. Suresh

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Cost Plus Pricing Cost-plus pricing is a pricing method used by companies to maximize their profits. Cost-plus pricing, also called mark-up pricing is the practice by a company of determining the cost of their product to them and then adding a percentage on top of that price to determine the selling price to the customer.

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Product Positioning "Product positioning refers to consumers' perceptions of a product's attributes, uses, quality, and advantages and disadvantages relative to competing brands. Positioning involves symbol and message manipulation, including displays and packaging.

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Short notes on Online-Marketing In Online marketing a customer can reach a market via computer & internet. It gives convenience, needed information, few hassles, lower cost and build relationship between marketer and customer.

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Five Types of consumer needs:1. Stated needs- Customer wants to by inexpensive car 2. Real needs- Customer wants a car with operating cost, not its initial pricing is low. 3. Unstated needs- Customer expects good service from the dealer 4. Delight needs- Customer would like the dealer to include onboard navigation syste (Todays desire tomorrows expectation.) 5. Secret needs- Customer wants to be seen by friends as a savvy (senses) consumers.

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Value Chain

A high-level model of how businesses receive raw materials as input, add value to the raw materials through various processes, and sell finished products to customers. Investopedia explains 'Value Chain' Value-chain analysis looks at every step a business goes through, from raw materials to the eventual end-user. The goal is to deliver maximum value for the least possible total cost.
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Value Chain Analysis Value Chain Analysis describes the activities that take place in a business and relates them to an analysis of the competitive strength of the business. Influential work by Michael Porter suggested that the activities of a business could be grouped under two headings:

MARKETING MANAGEMENT

Prepared by G.B. Suresh

(1) Primary Activities - those that are directly concerned with creating and delivering a product (e.g. component assembly); and (2) Support Activities, which whilst they are not directly involved in production, may increase effectiveness or efficiency (e.g. human resource management). It is rare for a business to undertake all primary and support activities. Value Chain Analysis is one way of identifying which activities are best undertaken by a business and which are best provided by others ("out sourced").
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Company demand & Company sales forecast.

Company demand is the companies estimated share of the market demand at alternative levels of the company marketing efforts in a given period of time. Company sales forecast is the expected level of company sales based on a chosen marketing plan and an assumed marketing environment.
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Stages in PLC Introduction, Growth, Maturity, Decline.

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Bench Marking

Benchmarking is the process of identifying "best practice" in relation to both products (including) and the processes by which those products are created and delivered. The search for "best practice" can taker place both inside a particular industry, and also in other industries (for example - are there lessons to be learned from other industries?). The objective of benchmarking is to understand and evaluate the current position of a business or organisation in relation to "best practice" and to identify areas and means of performance improvement.
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Process of Bench marking ( Step by step approach)

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Boston Matrix

MARKETING MANAGEMENT

Prepared by G.B. Suresh

The Boston Consulting Group Box ("BCG Box")

Using the BCG Box (an example is illustrated above) a company classifies all its SBU's according to two dimensions: On the horizontal axis: relative market share - this serves as a measure of SBU strength in the market On the vertical axis: market growth rate - this provides a measure of market attractiveness By dividing the matrix into four areas, four types of SBU can be distinguished: Stars - Stars are high growth businesses or products competing in markets where they are relatively strong compared with the competition. Often they need heavy investment to sustain their growth. Eventually their growth will slow and, assuming they maintain their relative market share, will become cash cows. Cash Cows - Cash cows are low-growth businesses or products with a relatively high market share. These are mature, successful businesses with relatively little need for investment. They need to be managed for continued profit - so that they continue to generate the strong cash flows that the company needs for its Stars. Question marks - Question marks are businesses or products with low market share but which operate in higher growth markets. This suggests that they have potential, but may require substantial investment in order to grow market share at the expense of more powerful competitors. Management have to think hard about "question marks" - which ones should they invest in? Which ones should they allow to fail or shrink? Dogs - Unsurprisingly, the term "dogs" refers to businesses or products that have low relative share in unattractive, low-growth markets. Dogs may generate enough cash to break-even, but they are rarely, if ever, worth investing in.

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Selling & Marketing S:No Marketing

Selling

MARKETING MANAGEMENT

Prepared by G.B. Suresh

1 2 3. 4.

It starts at very beginning before product is manufactured It is identifying customer needs and wants to design the product accordingly. Marketing concept is just placing the product in the market. Anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need. It includes physical objects, services, persons, places, organizations, and ideas.

It starts after manufacturing the products A sale is the act of selling a product or service in return for money or other compensation. It is an act of completion of a commercial activity. Selling concept is making the people to but the product. Any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything.

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Marketing Intelligence Marketing Intelligence (MI) is the information relevant to a companys markets, gathered and analyzed specifically for the purpose of accurate and confident decision-making in determining market opportunity, market penetration strategy, and market development metrics. Marketing intelligence is necessary when entering a foreign market. Marketing Intelligence is not the same as Market Intelligence (MARKINT). Marketing Intelligence determines the intelligence needed, collects it by searching environment and delivers it to marketing managers who need it.

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Marketing Concept

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Niche Market A niche market is the subset of the market on which a specific product is focusing. So the market niche defines the specific product features aimed at satisfying specific market needs, as well as the price range,

MARKETING MANAGEMENT

Prepared by G.B. Suresh

production quality and the demographics that is intended to impact. It is also a small market segment. For example, sports channels like STAR Sports, ESPN, STAR Cricket, and Fox target a niche of sports lovers.
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customer value The difference between the values the customer gains from owning and using a product and the costs of obtaining the product. customer satisfaction The extent to which a product's perceived performance matches a buyer's expectations. If the product's performance falls short of expectations, the buyer is dissatisfied. If performance matches or exceeds expectations, the buyer is satisfied or delighted. Total quality management (TQM) Programs designed to constantly improve the quality of products, services, and marketing processes. Transaction A trade between two parties that involves at least two things of value, agreed-upon conditions, a time of agreement, and a place of agreement. Relationship marketing The process of creating, maintaining, and enhancing strong, value-laden relationships with customers and other stakeholders. Market The set of all actual and potential buyers of a product or service. marketing management The analysis, planning, implementation, and control of programs designed to create, build, and maintain beneficial exchanges with target buyers for the purpose of achieving organizational objectives. Demarketing Marketing to reduce demand temporarily or permanently; the aim is not to destroy demand, but only to reduce or shift it. Production concept The philosophy that consumers will favor products that are available and highly affordable and that management should therefore focus on improving production and distribution efficiency. Product concept The idea that consumers will favor products that offer the most quality, performance, and features and that the organization should therefore devote its energy to making continuous product improvements. A detailed version of the new-product idea stated in meaningful consumer terms. Selling concept The idea that consumers will not buy enough of the organization's products unless the organization undertakes a large-scale selling and promotion effort. Marketing concept The marketing management philosophy that holds that achieving organizational goals depends on determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors do.

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MARKETING MANAGEMENT 52) Societal marketing concept

Prepared by G.B. Suresh

The idea that the organization should determine the needs, wants, and interests of target markets and deliver the desired satisfactions more effectively and efficiently than do competitors in a way that maintains or improves the consumer's and society's well being. 53) Customer loyalty Customer loyalty is the process of creating and maintaining Faithfulness, trustworthiness and reliability through our product or service.