Marketing Managemen

8/2/2019 Marketing Managemen

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BUSINESS SCHOOL OF DELHI

MARKETING MANAGEMENT

RANJEET11/22/2009

INTRODUCTION OF MARKETING MANAGEMENT, MARKETING ENVIRONMENT (MACRO,MICRO)


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MARKETING MANAGEMENT

INTRODUCTION OF MARKETING MANAGEMENT

It comes in the existence in 1752 in Rome Peter

Drucker is widely accepted as the Management Guru.

However in India we accepted C.K. Prahallad as the

Marketing Guru.

Marketing is basically identifying and meeting social

need and organizational need. So on the basis of it we can

identify two definition of marketing.

A. Social Definition:- It is a social process by which individualand groups obtain what they need and what through

creating, offering and exchanging products and services.

B. Managerial Definition:- It is essentially about providingchanging, benefits to need and demands of customers.

Things to be Marketing:-

1. Marketing of Goods:-Marketing of all the physical visible goods like car, bikes,

laptop etc are known as Marketing of Goods.

2. Marketing of Services:-Marketing of knowledge, experience and other expertise

is known as Marketing of Services.

3. Marketing of Events:-When company takes part in different events and

marketing themselves then it is known as Marketing of

Events. Ex: - Trade show, World cup, Olympic etc.

4. Marketing of Person:-People of National and International personalities and

marketwise themselves. This is known as marketing of

person like: - Sachin Tendulkar, Amitabh Batchan etc.


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5. Marketing of Place:-Marketing of well known national or international place

having some unique qualities is known as Marketing of

Place. Like: - Shimla, Kashmir, Egypt etc.

6. Marketing of Properties:-Selling and Purchasing of the properties is known as

Marketing of Properties. Renting services also come

under it. Like: - Omax, Jaipuria etc.

7. Marketing of Organization:-Branding of the company and to increase its brand name

is known as Marketing of Organization. Like: - Maruti etc.

8. Marketing of Information:-In the present world selling and purchasing of data is in

pick position. This type of Marketing is known as

Marketing of Information.

9. Marketing of Ideas:-Awareness of all small and big things. Mostly related to

social, is known as Marketing of Ideas. Like: - Education

School chalo Abhiyan.

10. Marketing of Experience:-All the new and different experience having man mode is

known as Marketing of Experience. Like: - Fun and Food

Village.

CUSTOMER DEMAND

There are following type of Demand:-

1. Negative demand.2. No demand3. Latent demand4. Declining demand5. Irregular demand6. Full demand7. Over full demand8. Unwholesome demand


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1. Negative demand:-It is a major part of market dislike the product or

even pay price to avoid it is known as Negative

Demand.

2. No demand:-Target consumer may be uninterested about the

product this type of demand is known as No

demand. Like:- Job of finance is No demand of

marketing.

3. Latent demand:-Some time markets feel strong, need for

replacement of some product; this is known asLatent demand.

4. Declining demand:-A market of some product is declining and demands

is decreasing day by day this is known as Declinng

demand. Like: - VCR demand.

5. Irregular Demand:-Demand of many product and services are seasonalthis is known as Irregular demand. Like:- seasonal

clothes.

6. Full demand:-Some time demand of particular product is in full

this demand is known as Full demand. Like

Maruti.

7. Overfull demand:-Some time demand is higher than organization can

handle, this is known as Overfull demand. Like:-

Nano of TATA.

8. Unwholesome demand:-This is that kind of demand where unwholesome

product will attract, organize effort to decrease

consumption. This is known as unwholesome


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demand. Like:- Campaign against alcohol, cigarette,

polythene etc.

KEY CUSTOMER MARKET

1.Consumer Market2.Business Market3.Global Market4.Non Profit Market

1. Consumer Market:- Here company sale the productwith mass consumer like retail good, beverage etc.

2. Business Market:- (B2B) Here selling and buying ofthe product in between company to company, here

company used to purchase the goods from other

company. Like: - Market of Iron, Steel etc.

3. Global Market:- Some time company sell theirproduct in all over world this type of market is known

as Global Market. Here company has two things: some

aspect of Macro environment and Microenvironment.

4.Non profit Market:- Products or goods to sale inSociety like NGO, social organization is known as

much lower than normal profit. However, this market

is free from tax.

Core concept of marketing

1. Need, Wants & Demand2.Target market, positioning & segmentation3. Offering and branding4.Competition5. Market channel6.Value and satisfaction


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1.Need, Wants & Demand

Need:- it is a basic human requirement like shelter etc.Want:- The need become want when it is directed to

specific object which might satisfied the need of

particular person like need of chapatti etc.

Demand:- It is totally back by purchasing power of

individual on the basis of their income they purchases

what they want.

2.Target demand, positioning & segmentationTarget demand:- It is tough to satisfy all the persons in

the market. So, company choose target market & makes

segmentation according to it. The segmentation can be

demographic, cacographic and others.

Positioning: - company must understand the position of

their product and they use to compare positive things of

their product to the competitors.

3.Offering and brands: -All company need to make their brand in nationwide

and in international also. They can take the help of

complete marketing and advertisement tools. This isknown as offering and branding.

4.Marketing channel: -

It is a different mode to deliver the goods to

consumer like distributor, retailers, agents, or may be

any tools of IMC (Integrated Marketing Communication).

By the same way company also identify from where they

will being the raw material.


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5.Competition: -

It includes all actual, existing and all potential

rivals like surf excel vs. Arial etc.

6.Value and Satisfaction: -

By providing strong support to their goods company

tends to give(QSP)Quality Service and Price in big

company. This is also known as MR (Market Research)

process. If any companies dont satisfied the customers

then the customer move to another company.

Evaluation of Marketing Ideas

There are five main Marketing Ideas:-1. Production idea2. Product idea3. Selling idea4. Marketing idea5. Holistic marketing idea

1.Production Idea:-It is the oldest idea. It emphasize consumer widely

except the thing which availability is high and

inexpensive. Like china market/Here only think about production, they produce more and

more. They dont give more emphasize on quality.

Role of manager: - Here manager concentrate their

focus on high production and low efficiency.


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2.Product idea:-Consumers think the product having good quality,

sharp feature and high performance. Here totally focused

on quality. They target or focused for long run. Ex: -

Japan.

Role of manager: - To achieve higher quality and

product value. The use six sigma for better quality.

3.Selling Idea:- 1920Here company wants to sell the product at any

circumstances. Here company can sell his product by

hooks and cooks. It means anyhow.

Role of manager: - They apply all tools of selling.

4.Marketing idea:- (1952)It comes in the existence about 1950; from here the

concept has been shifter to consumer satisfaction. Here

believe on customer satisfaction, also taking care about

needs of customer.

Role of manager: - They emphasize more on needs

of consumer.

5.Holistic marketing idea:- (1990)To make the marketing program more fruitful now

company is given more and more space to cohesive

approach. Here company develops design, making

program and include the M.R system also.

Role of manager: - manager gives strong focus to

past M.R and after sell process.


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Integrated marketing / Marketing mix

To make the company more successful, manager

gives much strength to Marketing. The fundamental of

marketing on 4 Ps. It is Product, Price, Place and

Promotion. It is also known as Marketing mix tool.

Concept of Marketing Management in present world.

It is the process of planning, launching and re-

evaluation of product. The success of any firm depends

on this complete process. It is known as holistic

approach of the company.

Holistic approach of company:-

Basically Holistic marketing framework is design to

address three management questions:-

1. Value Exploration2. Value creation3. Value delivery

1.Value exploration:-It is about how company indentifies new value

opportunity. It can be correlated with three factors:-

a. Customer cognitive factorb. Companys competency factorc. The collaborator factor


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i. Customer cognitive factor:-This factor specified the existing and other new

demand. It can be new or reconsidering demand.

ii. Companys competence factor:-Here company looks its mission and vision and by

the same time it accesses its man and machine

capabilities.

iii. The collaborator space:-Here companies try to capture cash the market

with the help of its partner.

2.Value creation:-It is the second stage of holistic approach. Here

company try to find out the view of product compare to

their competitors and on the basis of it they do all the

positive work to increase the branding of company or

product, this is known as value creation.

3.Value delivery:-Here company prepares itself to deliver the product

to customer and it looks the after sales service. It this

process CRM will be the vital point for the particular

company.

CORPORATE OF DIVISION STRATEGIC PLANNING

Any of the corporate and big company undertake

four planning activity:-

1. Defining corporate mission2. Stabilishing strategic business unit3. Assigning resource to each SBU ( Strategic Business

Unit)

4. Assigning growth opportunity


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1.Defining corporate mission:-It is very much necessary for the corporate to

define their mission and vision. Mission is smaller and

one step of vision. Vision can be set for long term and

somehow it seems to be unexpected. It can be

achievable. A good mission consist five characters.

A.Focus on limited nos of goods.B.It emphasis measure policy and valuesC.It provide short as well as long term of viewD.It emphasis competitor space too.E. The statement should be short and meaningful.

2.Establishing strategic business unit:-On the basis of capacity all business head want to

establish separate strategic business unit. It has three

characters:-

a. It can be or cannot be depend on parent unit.

b. It has its own set of competitivec. A separate HOD look after it.

3.Assigning resource to each SBU(StrategicBusiness Unit):-

In this state parent company allow to assign the

resource to each SBU. The money has been allocated on

the basis of market potentiality.

Assessing growth opportunity:-

This is the final step of SBU. Here HOD of unit uses

to look after the complete growth of business unit.


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BCG MATRIX (1970)

BOSTON CONSULTING GROUP MATRIX

Boston Matrix has given four opportunities for anycompany:-

A.DOGS:-It is low market share as well as low market

growth. It is for the beginner company. In these area

markets presence is week. So it required lot of hardwork. It may possible profit will be less. In these areas,

your market presence is weak, so it's going to take a lot

of hard work to get noticed. Also, you won't enjoy the

scale economies of the larger players, so it's going to be

difficult to make a profit.

B.CASH COWS:-Its a high market share and low market growth.

Here companies are well establishing. So it is easy to get

opportunities. However this phase required more

attention to reach on the pick position, because growths

are unlimited.Here, you're well-established, so it's easy

to get attention and exploit new opportunities. However

it's only worth expending a certain amount of effort,

because the market isn't growing and your opportunitiesare limited.

Market Share

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C.STARS:-High market share, high market growth. Here

company is in excel and position and it required

extremely hard work to maintain this position. Here

you're well-established, and growth is exciting! These are

fantastic opportunities, and you should work hard to

realize them.

D.QUESTION MARK(Problem child)It is also known as proven child. Here company is

low market share and high market growth. These are theopportunities where dilemma position is occurred.

Company isnt generating much revenue because they

dont have large market share. But its market growth is

good, so it may chance to reach in star position. these

are the opportunities no one knows what to do with.

They aren't generating much revenue right now because

you don't have a large market share. But, they are in high

growth markets so the potential to make money is there.

Basically question mark is extremely bad condition

for the company and their position need to think

seriously about market share. Question Marks mightbecome Stars and eventual Cash Cows, but they could

just as easily absorb effort with little return. These

opportunities need serious thought as to whetherincreased investment is warranted.


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UNIT -2 MARKETING INFORMATION

GATHERING INFORMATION

MARKETING INFORMATION SYSTEM (MIS): MIS

consists of People, Equipment & procedure to gather, sort,

analyze, Evaluate & distributes needed, timely & accurate

information to marketing manager.

DEVELOPING MARKETING INFORMATION: It can

be done via three processes

Internal Data: Here company use to rely on the several

information based on secondary data. It provides the result

data. They stored in company already.

Marketing Intelligence System: It is day to day

record of every department & Competitors. It provides the

happening data. What going on day to day basis in company oroutside competitor and work accordingly.

External data:Its based on external information. Also

watching what competitor strategy. Here company based on

the new information either from their own source or from any

other external agency.

For ex:- like sales of Serelac. Here company can sale his

product where people age between 35-40 years. So he choose

any society because in society mostly live age group person.And it obvious that those babies age group is between 3-5. So

its the very good place for any baby product company. By this

we can evaluate our marketing research strategy.

Internal data: Here are some of the important sources by

which company can collect the internal data.

The Order to payment Cycle: Here we evaluate that

how much order come for production and it has executed or

not.This is known as the heart of all internal record system. In


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this process the companies allow collect order & make assure

to deliver the good in accurate time. The marketing

information can collect the vital data from it & make assure

that the things in department should go smoothly.

Sales Information System: Here we find out how much

order executed on day to day basis or monthly basis. We also

evaluate that how much we get order and we delivered or

not.Marketing manager needs all the information about the

sales & off records. The sales information can be taken by

marketing manager by day to day basis, weekly basis or may

be on monthly basis. Big companies like Wal-Mart & Ford

Corporation maintain their day to day sale by very good &

sharp monitoring system.

Data base & Warehouse: Here we need all types of

data like customer, H.R, Finance, etc. or we can say that all

kinds of data we need to make some strategy. Making data in

to important aspect is also one the important work. In any

company data of different department exist like, Customer

database, Product database & other database. At the time to

look all the data & make it in different way one should make itin synchronies way to understand, age, income, sex ratio Etc.

Marketing Intelligence System: It is a set of

procedures in which a marketing manager obtains the data on

day to day basis about internal and as well external. It gives

complete recent information about the company &

competitors & their environment.

External Data: If the marketing information needs

something more from the market which is not available in the

internal record of company than it required to do External

Marketing Research or based on External data. External

research can be from internal source of the company or can be

from external source. Here company obtains the relevant data

which can be related to consumer, Competitors, Products &

others things.


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THE MARKETING ENVIRONMENT

Marketing Environment:A Companys Marketing environment consists of the

factor & the forces outside marketing that affects the

marketing managements ability to build & maintain

successful relationship with target customer.

All the successful company knows the process &

importance to adapt the complete changing environment.

The marketing environment basically consists of two major

factors.

Microenvironment Macro environment Microenvironment:Its related to company continuously

or directly. This effect generally in small level. There is a

space to make improvements.The Microenvironment

consists of factor close to company that affects its ability

to serve its customer. They may be:-

The Company Supplier Marketing Intermediaries Customer marketing Competitors

The Company: To making any product success & toincrease the brand name of the company, almost all the


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department of the company should work together. Groups

like Finance, Marketing, R& D, Purchas, Operation puts their

different opinion & View. On the basis of it one direction

prepared & under one roof of board of director one plan is

executed. So the balance attitude of all the dept should be

necessary. Company:- Mkt:-Prod:-Fin:-Hr.

Supplier: They are the important link between thecustomer & company. Supplier from the different parts of

the country & even abroad affects the company heavily. It

is the sole responsibility of the purchase deptt to keep

strong vigil to the entire supplier so that delivery of goods

should be in proper way to move the production smoothly.

Wall mart is the fine example of it.

Marketing Intermediaries: They help the company tosell the goods & promote them in right direction. It gives us

idea that how to capture the complete branding process of

company. We cannot fight with competitor, thats why it

may be that companys graph decrease gradually. Usually

company gives responsibility to any third party for

advertisement because they have sharp experience. What

they advertise for branding of any company they have to his

strategies. All the components which include the complete

transaction of goods to the Customer via different mode &

those who are responsible for the complete branding of

company, are the main source of Marketing Intermediaries.

Customer market: Here we have to study the allcustomer market. It will easy for the company to

understand where the good of company is required to sale.

Study about need, demand and all about which is related to

customer needs. We have also evaluated that this particular

area is beneficial for selling this product or not.


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Competitors: Its very important feature of microenvironment. Here we have to look everything inside it. By

which way they can attract the customer. The marketing

concept says that that company must produce better goods& more customer satisfaction compare to Competitors. Its

the only way to increase the market share in present world.

Macro environment: Its complete atmosphere. Macroenvironment not comes under the company. Its not in the

control of company. The Macro environment consists of

larger societal forces that affect microenvironment.

Demographic, Economic, Technological, Political & Cultural

Forces are some factors comes under it:-

Demographic Environment:The complete environmentof Population may affect in all way to the company. We

cannot change these factors. The taste of people, Literacy

Rate, sex Ratio, Income gap gives all the effect to thecompany. Company has to think many times to enter in that

country where the entire factor is not according to the

circumstances. It consists following factor.

Population & Age Mix: Mexico is the country of veryyoung population & Japan is the country of world oldest

population. Much of the factor is depend on the population

of the country. Here marketer continuously recognizes the

youth population of the world & try to make the market of

these places. Generation gap is also play an important role

for it. For ex:- If u want to lounch any product that is for

young people it may be that in Mexico demand will very

high.


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Literacy Level:According to data the literacy rate of anycountry play an important role for purchasing anything?

Literate people can look the thing better than other one. So

company also looks it as broader aspect for launching anyproject.

Economic Environment:Here we find out the economicgrowth and in coming 5 years also we have to find. And

make strategy accordingly. The GDP of south Asia is 1.1

trillion. GDP of any country decide the complete economic

growth of that country. It indicates the present & future of

the country. The GDP of India is approx 42000 billion. So all

the company looks this aspect before entering the product

market. China, Singapore, is some of the favorite country

for investor.

Income Distribution: Here we find out how much levellow and how much high level income population. According

to income distribution makes some strategy. This veryuseful in B2C market. Income distribution of country & their

complete income may give the clear picture to the company

where the things are going to invest. Here company make

their complete analysis on the basis of it & allow the

product according to it.

Socio-Culture Environment: If the product directselling in the market. Then company need to find out the

social culture. Here company cannot avoid these norms.

Beliefs, values, Norms, & Religion play an important part &

in some extant may be the decision factor any company to

entering the market. Each & every product is going to make

according to these above mentioned factor. Six major

faiths, 1600 language, 22 officials, 33 spoken by more than

lakhs people. Norms and value have to understand in Macro

level. For ex:- McDonald dont use the cow meat in India.


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But once upon a time some pieces of cow meat find in

burger at that time this company has to suffer so many

damages. So company cant ignore cultural values.

Natural Environment:its a major issue for any company.Here company have to maintain company standard. First

company have to maintain ISO then after it can run

production process.Now all the country is maintaining

complete parameter of environment as well natural

environment. Every thing is now going to the international

norms. ISO-9000 SERIES, ISO-, 14000 are some of the

standard which company has to follow. But in India if any

accident happens then they ready to take ISO certificate. In

foreign country first they have to take ISO certificate then

after they can produce his product.

Political & Legal Environment: Stability in politics,Crime ratio, Legal aspect & other Govt related issue comes

under it. It is major part for any company. Here we analyze

legal atmosphere and also find out the stability of govt. Like

China, there no any against party. What they want they can

do.


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Marketing Managemen