Marketing Management By : Vivek Birla - Assistant Professor Amity University Haryana Email : [email protected]

Topics to be covered in 1st Lecture -

Topics To Be Covered

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Reference Book

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Marketing Market, Marketing - Marketing Definition, Nature Management - Sultan Page Paul Baines, Chris Fill, Oxford Page Dr. RL Publication 4, 5, of Marketing, Areas Kelly Page & Publication 6, 8 Varshney & s 26 of Study in Adpated by Dr. SL Gupta Marketing Piyush Sinha

Market • Originate from the Latin noun ‘Marcatus’ word which means a place where business is conducted • It general is also a place where buyers & sellers personally interacts and may finalize their deals. • In marketing perspective, it is place of exchange which provides the opportunity to exchange the goods and services for money • Philip Kotler said ‘ Market’ is arena for potential exchanges.

Marketing Defined by By The Charted Institute of Marketing CIM

Definition

"Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitably."

The American Marketing is the activity, set of institutions, and processes for creating, Marketing communicating, delivering, and exchanging offerings that have value for Association AMA customers, clients, partners, and society at large

Philip Kolter

Marketing Management is the analysis, planning, implementation and control of programmes designed to bring about the desired exchanges with the target market audience for the purpose of the mutual or personal gain. It relies heavily on the adaptation and coordination of the product, price, promotion and place for achieving effective response.

Indian Perspective

Value based definition of Marketing is defined as – Marketing as a process of sensing, designing, and delivering customer value for fulfillment of the desired organisational objectives.

Nature of Marketing • Marketing long term objective is Profit Maximization through consumer satisfaction • It is integrated process based on strategies and models. • It must deliver goods or services in exchange of money. • It starts with consumers and ends with consumers by satisfying with needs • Management Process with dual aim - first to achieve its own aim and second to serve the society by satisfying the wants of the people.

Marketing Orientation

• ‘Customer Orientation’ - It is concerned with creating superior value by continuously developing and redeveloping products and service offering to meet customer needs. Also include training of frontline staffs, measuring the customer satisfaction on the continuous basis and many more. • ‘Competitor Orientation’ – Requires the organisation to develop an understanding of its competitors’ ,short terms strengths & weakness & its long terms capablitiles and strategies •

‘Interfunctional Coordination Orientation’ – Requiring all the functions of an organisation to work toghter to achive the above foci for the long term profit.

Customer and Competitor Orientation

Competitor Emphasis

Minor

Major

Minor

Self Centered

Competitor Centered

Major

Customer Centered

Market Centered

Customer Emphasis

Areas of Study of Marketing Marketing • • • • • • • •

Marketing Research Sales & Promotion Distribution Management International Management Industrial Marketing Consumer Behavior Marketing of Services Rural Marketing

Topics to be covered in 2nd Lecture -

Topics To Be Covered

Marketing as Discipline, Significance of Marketing

Text Book

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Page Reference Page Publication No Book No

Marketing Page Management - Dhanpat Rai 1.11, TN Chhabra & Publications 1.18 SK Grover

Marketing as Discipline

Marketing as Art • One of the biggest aspects of marketing is understanding human behavior. When we create buyer personas, we consider all the things that make people so amazing. The end result isn’t a caricature but an actual person, even if he or she is just in our heads. This type of creation uses little to no science, though we must base our assumptions on research and analysis. • Once that buyer is identified, marketers work hard to create campaigns that will reach the target audience. These campaigns involve copywriting and design, two distinctly artistic pursuits. As the general public receives the campaigns, some changes may be made to achieve better results. Changeability isn’t something attributed to science, so even the fluidity of the marketing materials falls into the artistic category

Marketing as Science • Though creativity plays a large role in marketing, there’s no denying data is what drives results. A study of the people most likely to use products and services is the only way to develop an accurate buyer persona. After some testing, the buyer personas are tweaked and polished. Without the data from that testing, that fluidity wouldn’t be possible. • Analytics are also important when deploying marketing campaigns. As marketers, we often use A/B testing to determine what changes should be made to achieve better results. Those changes are recommended to the writers and designers, who then use art to create new versions of the same campaign. Without that data, we would have no way to improve upon what we’ve already done.

4 principles of good marketing science 1st Marketing as a science is about objectively using data to support decision making. It’s about understanding how to interpret data — and how to identify common errors or misrepresentations in interpretations. It’s also about critically questioning data, its source, its quality, the context in which it was collected, and alternative interpretations that it supports. It’s not just taking pre-canned metrics as a given. It’s about recognizing what data is missing. It’s about trying as much as possible to minimize biases to make good judgments with imperfect information in an uncertain world

2nd: Marketing as a science is about looking for patterns in the market and in customer behaviors — within data, but also through more qualitative sources of information, such as conversations with prospects, peers, and third-parties. This is where data science is applied in the exploration of marketing data. It’s about whittling those patterns into models and hypotheses that can be tested. It’s about figuring out ways to operationalize good responses to those patterns with a relative degree of precision. But it’s also about recognizing the probabilities and limitations of those patterns and being vigilant to changes over time and interaction effects with other events and activities. It’s about managing the complex system dynamics of marketing as best as possible.

3rd Marketing as a science is about embracing ideas from other scientific and engineering disciplines: psychology, economics, computer science, neuroscience, biology, industrial engineering, anthropology, sociology, etc. It’s about translating the work of other scientists and engineers into the context of marketing, at least as an inspiration for new models and hypotheses. It’s about keeping an open mind to new theories, while also critically examining their reliability and relevance. It’s about a constant drive for new learning on the frontier of marketing thinking.

• Marketing as a science is really about running good controlled experiments to test hypotheses. This is the heart of the scientific method applied to any discipline. It’s about designing good experiments. It’s about choosing meaningful hypotheses to test. It’s about minimizing confounding variables in such tests — while acknowledging that real-world marketing experiments are inevitably subject to uncontrolled influences. It’s about decidinghow much formality should be applied to a marketing experiment. It’s about intellectual honesty in the analysis of outcomes, knowing the difference between proving something versus merely providing corroborating evidence. It’s about iterating experiments in a smart way to methodically make progress in the pursuit of a theory. It’s about knowing when to stop pursuing a theory. It’s about carefully considering how the outcome of an experiment can be generalized and expanded to other contexts — or not. It’s about assessing when to reuse the learning from a past experiment and when to revalidate it. It’s about advocating that the answer to many marketing management questions is: test it.

Marketing as Discipline

Significance of Marketing Marketing should satisfy customer need & wants. Marketing should remove the hindrance between the marketer and customers by creating utility for them by adding value to the product. Marketing ensures smooth exchange of the goods and services between marketer and customer

Creation of Utility

Topics to be covered in 3rd Lecture -

Topics To Be Covered

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Reference Page Publication Book No

Marketing Marketing System – Manage Marketing (Simple & Modern), ment - Dr. Sultan Management - Dhanpat Rai Page Scope & Function RL Publication TN Chhabra & Publications 1.11, 1.18 Organisational Varshney s SK Grover Marketing Chart & Dr. SL Gupta

Page 7,14 (Fig 1.3) 24 25

Marketing System - Simple

Marketing System - Modern

A) Functions of Research A1. Marketing Research – It is intelligence service of the organization. Helps in analysing the buyers habits, relative popularity of 4P’s pr marketing Main role is to provide the marketing manager with timely and accurate information Helps in decision making It covers all areas of the business and marketing function.

“Marketing Research is the systematic search for and analysis of facts related to marketing problem.

Functions of Research A2.

Product Planning & Development –

A Product is something which is offered by the business firm to coustomers to satify their needs. Helps in planning and development of the product which meets the specifications of the customers. Products are foundations of the marketing programme. Prodcut planning and development involves number of decisions like what to manufacture, what to buy, where to , packaging decsions, how to fix the prices, how to sell, etc..

B) Functions of Exchange B1.

Buying and Assembling –

Procurement of Raw material, semi finished goods, finished products Raw Material is purchased for production and finished goods for the resale by the commercial enterprise. Marketing department gives the information for the needs& taste of the customer. Coordination between the purchasing officials and marketing officials is imp

Purchasing is determination of the demands, requirements, finding the sources of the supply, placing the order, receiving the goods Assembling is collection of the goods, already purchased from various sources, at a common point

Functions of Exchange B2. Selling – Important function of the Marketing by which ownership of goods are transferred from seller to buyers. Sale may be in form of – a) Negotiated Sale b) Auction Sale Negotiated Sale – Terms & conditions between the buyer and sellers are arrived at by bargaining or hailing. It can be through i) Sale by inspection ii) Sale by Sample iii) Sale by Description iv) Sale by grade v) Sale by brand Auction Sale – No possibilty of negotiation. Sale by Bid process , at a common place where both buyers and sellers meet. Buyers bid against each other and good sold at highest bid.

C) Function of Physical Treatment C1. Standardization, Grading and Branding – Standardisation means setting up the specification of the products. Grades of any product are based on the standrds and specifications of the product Branding is done for the goods to convey to the customers about the standards beeing followed and thus helps in promotion

C) Function of Physical Treatment C2. Packaging – It is done to protects goods from damage in transit & to facilitate transfer of goods to customers. Also used as promotional to establish their products as brand. It helps to identify the goods. Facilitate the sale of product & acts a silent salesman. Labeling – Putting identification marks on the pacakge. It contains information about the product, manufacturer, producer. It may be tag or on packaging.

C) Function of Physical Treatment C3.

Storage –

Goods produced in anticipated of the demand and hence needed to be stored properly in warehouse to protect from damage (by Mositure, sun, theft, rat, ants, etc..) Producers, Manufacturers, Traders, mercantile agents, importers, exporters, retailers, etc store their goods till actually they are sold off in the market. Hence warehouse create time utility.

C) Function of Physical Treatment C4. Transportation – It includes transportation of goods from place of production to place of consumption. It provide physical means which facilitate the movements. Play important role in economic, social and political development of the country. It is essential parameter for the rapid growth. It creates the time utility. Also plays important role in price mechanism. Try to move the goods uniformly from surplus areas to scare areas.

C) Function of Physical Treatment C4. Transportation – It includes transportation of goods from place of production to place of consumption. It provide physical means which facilitate the movements. Play important role in economic, social and political development of the country. It is essential parameter for the rapid growth. It creates the time utility. Also plays important role in price mechanism. Try to move the goods uniformly from surplus areas to scare areas.

Functions Facilitating Exchange D1 - Salesmanship Personal Selling or Salesmanship involves direct selling through personal contacts of the seller, his representatives, etc. This is oldest form of selling. Now salesman focus on customer needs.

Functions Facilitating Exchange D2 - Advertising It is important function of marketing in competitive world. Helps to spread the message about the product & promote sale. It facilitates and creates the non personal link between advertiser and receiver. Tools are – newspapers, magazines, radio, TV, Media, Cinema Halls, Bilboards, hoardings, window display etc..

Functions Facilitating Exchange D3 - Pricing Determining the price of the product is an important function of marketing. Price of the product is influenced by the cost of the product, services offered, profit margin desired, prices fixed by rival firms and governmental policy. Good pricing policy is important factor of selling the product. Good pricing helps in determine the varieties of the product to be made or procured so as to satisfy the demands of various customers.

Functions Facilitating Exchange D4 - Financing Financing and Marketing as interlinked with each other. Financing of the customers purchasing has become integral part of the modern marketing. Credit sales helps in increasing the volume of the sales. It is for all channels of marketing.

Functions Facilitating Exchange D5 - Insurance Number of risk is involved in the exchange of the goods and services. Insurance helps in cover of this risk. It faciliate in the smooth exchange of the goods by covering the risk in storage and transportation.

Topics to be covered in 4th Lecture -

Topics To Be Covered

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Understanding Marketing Mix - 4 Ps, 4 Cs & 4 O's . Definition & Marketing Importance of Marketing Management - Dr. Sultan Page 92-93 Mix, Determining RL Varshney & Publications Marketing Mix, Dr. SL Gupta Expanded Marketing Mix - 7Ps

Reference Page Publication Book No

Marketing Manageme Dhanpat Rai nt - TN Publications Chhabra & SK Grover

Marketing 4 P’s & 4 C’s

4 E’s of Marketing