MARKETING MANAGEMENT research, analysis, and understanding your

ideal customer's interests. marketing pertains

(Reviewer)
to all aspects of a business, including product
What Is Marketing? development, distribution methods, sales,
and advertising.
marketing is the activity, set of institutions,
and processes for creating, communicating, Marketing At 21st Century.
delivering, and exchanging offerings that
Marketing in the 21st century is very different
have value for customers, clients, partners,
from its early beginnings. today's marketers
and society at large.
have more choices in terms of support, media
What Is Management? opportunities, and communications. they also
have more competition from varied sources,
management is a set of principles relating to especially as the internet has made it
the functions of planning, organizing, possible for companies around the globe to
directing and controlling, and the application compete virtually.
of these principles in harnessing physical,
financial, human, and informational resources Marketing At 21st Century
efficiently and effectively to achieve
 More communication choices
organizational goals.
 More creative options
What Is Marketing Management?  More consumer choices
- "marketing management is 'the art and  Social media streamlines word-of-mouth
science of choosing target markets and  Tried and true marketing techniques still
getting, keeping, and growing customers work
through creating, delivering, and Marketing Challenges In 21st Century
communicating superior customer value'
(kotler and keller, 2008: 5).“ The marketing concept has changed
dramatically over the last several decades,
- the concept reviews the process used to and recently the focus has increasingly
determine what products or services may be moved to customers (versus products and
of interest to customers and the strategy to selling) marketing globally and the various
use for marketing mix. it also explores the technology issues that impact the market. in
process of understanding, creating and addition, there is renewed emphasis in
delivering value to targeted business markets marketing on creating and innovating with
and customers. new and better products and services rather
- marketing is the process used to determine than just competing against other firms and
what products or services may be of interest following the marketing patterns established
to customers and the strategy to use in sales, by competitors.
communications and business development Marketing Challenges In 21st Century
(kotler et al. 1996). the american association
of marketing define marketing management  Threat of new entrants
as the process of planning and executing the  Bargaining power of buyers
conception, pricing promotion and distribution  Threat of substitute
of ideas, goods and services in order to  Bargaining power of suppliers
create, exchange and satisfy individual and  Rivalry among competing firms in industry
organisational objectives (grönroos, 1989).
WHAT IS THE PURPOSE OF MARKETING?
marketing is the process of getting people
interested in your company's product or
service. this happens through market
PRODUCT FLOW Building Customer Satisfaction, Value,
And Retention
Kotler On Marketing
“It is no longer enough to satisfy customers;
you must delight them.”
Measuring Satisfaction
How Do Companies Measure Satisfaction?
 Complaints and suggestion systems
Marketing To the New Economy
 Customer satisfaction surveys
 Digitalization and connectivity  Ghost shopping
 Disintermediation and reintermediation  Lost customer analysis
 Customization and customization
 Industry convergence
Segmentation And Targeting

OLD ECONOMY To segment a market, you divide your

potential customers into different groups.
1. Organize by product unit.
- millennials, generation x and baby boomers,
2. Focus on profitable transaction. for instance, or fans of thrillers, paranormal
3. Focus on financial scoreboard. romance, and horror. Then you target the
different segments with different ad
4. Focus on shareholders. campaigns. This takes more work than a one-
5. Marketing does the marketing. size-fits-all advertising blitz, but it's more
effective
6. Build brands through advertising.
- after you have the segmentation data, you
7. Focus on customer acquisition. have to decide which segments to target. It's
8. No customer satisfaction measurement. better to be more specific than less. It's easier
to target, say, "pregnant single mothers
9. Overpromise, under-deliver. attending college" than "pregnant women."
choosing precise segments lets you tailor
NEW ECONOMY your advertising with equal precision. Of
course you can target multiple segments:
1. Organize by customer segments. "pregnant single mothers attending college,"
"married women expecting a second child,"
2. Focus on customer lifetime value.
and "older women pregnant with their first
3. Look at marketing scoreboard. child" using different advertising for each.
4. Focus on stakeholders. ADDED PROFIT AND ADDED COSTS
5. Everyone does the marketing. Targeting specific market segments can
increase your profits. Customers who feel
6. Build brands through performance.
your product or service is tailored to them and
7. Focus on customer retention. their needs respond better than they do to a
generic ad. However, targeting comes with
8. Measure customer satisfaction & retention
added costs, on top of paying for the market
rate.
research. If you target more than one market
9. Under-promise, over-deliver. segment, you'll need to pay for multiple ad
campaigns, one designed for each segment.
If you brand the product in different ways for
different markets or vendors, that'll add to  Differentiation is at work any time you’re
your costs too. Before committing to a choosing between two products in the
segmentation plan, figure out just how much same category.
targeting you can afford to do.
- For example, when you’re buying a soft
Are Segments Worth Targeting? drink, why do you choose Coke, Pepsi,
Sprite, or Mountain Dew? Is it because of
Some market segments aren't a good
the taste? The cost? The level of sugar or
investment. If you find only 50 or 60 people caffeine? Or is it something less tangible,
are in one segment, designing a targeted ad like the way you just want to smile when
campaign just for that group may cost more you drink Coke, or you feel amped up
than it's worth. Compare the potential when you drink Mountain Dew? These
response and the potential profit to the cost tangible and intangible qualities are what
before deciding. There are other reasons for differentiate one soft drink from another.
not targeting particular segments. If the only
POSITIONING
way to reach segment x is through national tv
advertising, they might be out of your price Positioning is a strategic process that
range. If segment y is reachable but can't marketers use to determine the place or
afford your product, cross them off the list too. “niche” an offering should occupy in a given
Segmentation and targeting are worthwhile market, relative to other customer alternatives.
only when it benefits your bottom line. When you position a product or service, you
answer these questions:
Differentiation on Competition and
Place: What place does the offering occupy
Positioning
in its market?
The differentiation and positioning process
Rank: How does the product or service fare
consists of three steps: against its competitors in the areas evaluated
by customers deciding what to buy?
 Identifying a set of differentiating
competitive advantages on which to build Attitude: How do we want customers to think
a position about this offering and the benefits it offers
 Choosing the right competitive them?
advantages
Outcomes: What must we do to ensure the
 Selecting an overall positioning strategy. product or service delivers on the positioning
Differentiation we select?

 is closely related to positioning. POSITIONING

Differentiation is the process companies - If we place ourselves in the position of the
use to make a product or service stand consumer, we often tend to ask questions
out from its competitors in ways that like “Why should I choose you? What
provide unique value to the customer. makes you so special? Why should I care
Differentiation identifies a set of about you? You say you’re the best option
characteristics and benefits that make a in the market, prove it to me.” These are
product different and better for a target the usual thoughts of consumers.
audience. Ideally these qualities are
things that: - Brand Positioning is a necessity which
1) customers value when they are evaluating targets the part of the consumers’ mind
choices in a purchasing decision, and which is aimed at creating a distinct image
of that particular brand. An effective brand
2) competitors cannot easily copy. When positioning will build an emotional
both conditions exist, the offering is more relevance to the customers providing a
attractive to target customers. distinctive nature to the brand and
increase the brand marketing value.\
Brand Positioning – Symbolic, functional, The customers buy the product basis the
Expiremental availability. They will prefer buying the
product from a nearest location.
- Promotion, Product , Price, People, Place Organisations have limited control over price.
A change in price will enable customers to
COMPETITION switch to a competitor product. The price is
determined by supply and demand factors.
- Competition is the rivalry between For example, agricultural products,
companies selling similar products and cigarettes.
services with the goal of achieving
revenue, profit, and market share growth. Monopolistic competition – It is similar to
- Market competition motivates companies pure competition (no barriers to
to increase sales volume by utilizing the competition and large number of suppliers)
four components of the marketing mix, except the sellers try to differentiate the
also referred to as the four P's. These P's offerings basis the quality, packaging, style,
stand for product, place, promotion, and convenience, and location.
price. Knowing and understanding your
competition is a critical step in designing a For example, soaps, shampoo, gasoline,
successful marketing strategy. greeting cards, barbers, restaurants, etc. The
sellers advertise their products as better in
Types of Competitors various aspects to justify the higher price.
Direct competitors - A direct competitor Oligopoly – High barrier to enter the market
offers the same products and services aimed and limited sellers. Limited number of
at the same target market and customer base, organizations in the market compete to get
with the same goal of profit and market share maximum customers. For example, car
growth. This means that your direct manufacturers. The manufacturing set up
competitors are targeting the same audience usually requires high investments which
as you, selling the same products as you, in a becomes a barrier for many companies to
similar distribution model as you. enter the market. The supply in the market is
usually high by a manufacturer as less
Indirect Competitors - Indirect competitors competitors are present. Because of this the
are businesses in the same category that sell manufacturer has control over the price. But
different products or services to solve the the organisations are forced to give
same problem. These competitors are competitive prices to increase market share.
seeking to grow revenue with a different
strategy. For Example, banking, insurance, mobile
service providers, airline fares, etc.
Replacement Competitors - A replacement
competitor is another company that is offering Pure Monopoly – High barriers to entry and
a product or service that the consumer could the market is dominated by one large
use instead of choosing your products or company. The organization has a say on
services. The important concept with setting the price. It can be because of
replacement competitors is that they are exclusive rights to raw-materials, patent,
using the same resources to purchase the government policy. For example, railways
replacement product or service that could and electricity supply in India, many drug
have been used to buy your offerings. manufacturers have patent on their medicines,
Microsoft windows operating system.
Types of Competition
CONSUMER BEHAVIOR
Pure competition – No barriers to
competition and large number of suppliers. Consumer
There are large number of sellers, and - a person who purchases goods and
customers have a wide variety of brands to services for personal use.
select from. Mostly the prices are set basis
the economy of target market or markets.
- a person or thing that eats or uses Psychological Tricks to Influence
something Consumer Behavior

Behavior  Decoy Effect – price of the product,

- the way in which one acts or conducts small, medium, large
oneself, especially toward others.  Scarcity Illusion – the limited edition
- the way in which an animal or person acts  Loss aversion- free trial like on You
in response to a particular situation or tube
stimulus.  Reciprocity- reciprocated

Consumer Behavior
Consumer behavior is the study of individuals
and organizations and how they select and
use products and services. It is mainly
concerned with psychology, motivations, and
behavior.

The study of consumer behavior includes:

 How consumers think and feel about
different alternatives (brands, products,
services, and retailers)
 How consumers reason and select
between different alternatives
 The behavior of consumers while
researching and shopping
 How consumer behavior is influenced by
their environment (peers, culture, media)
 How marketing campaigns can be
adapted and improved to more effectively
influence the consumer
Considerations Are Influenced by Three
Factors
Personal factors – A person’s interests and
opinions. These will be affected by
demographics such as age, gender, culture,
profession, background and so on.
Psychological factors – Everybody’s
response to a particular marketing campaign
will be based on their perceptions and
attitudes. A person’s ability to comprehend
information, their perception of their need,
their attitude, will all play a part.
Social factors – Peer groups, from family
and friends to social media influence. This
factor also includes social class, income, and
education level.