Management Department

Master of Business
Administration
planning, organizing,
MBA-2 Semester
nd
Introduction
implementing, and
controlling
to Course
Marketing Management

Mr Shashank
Assistant Professor

CAMPUS: JHANJERI, MOHALI

 Marketing Management
• Introduction to Marketing Management
• Marketing management refers to the process of planning,
organizing, implementing, and controlling marketing activities to
achieve an organization's objectives by satisfying customer needs
and wants. It involves analyzing market opportunities, developing
marketing strategies, designing marketing programs, and
monitoring the effectiveness of marketing efforts.
 Definition’s
Philip Kotler, a renowned marketing expert, defines
marketing management as:
"The art and science of choosing target markets and
building profitable relationships with them."
• In simpler terms, marketing management focuses on
understanding customer preferences, creating value
through products or services, and effectively
communicating and delivering this value to maximize
customer satisfaction and organizational success.
• Would you like to expand this further, or add specific
concepts like the marketing mix or strategic
importance?
 Importance of Marketing
Management:

•Identifying Customer Needs: Helps understand consumer preferences, enabling

businesses to design products/services that fulfill customer expectations.
•Driving Organizational Growth: Effective marketing strategies lead to increased
sales and market share, driving growth.
•Building Brand Value: Marketing management ensures consistent brand
communication, fostering customer loyalty and trust.
•Adapting to Market Dynamics: Provides tools for businesses to stay competitive
by analyzing trends and adapting strategies.
•Efficient Resource Allocation: Helps allocate resources like budget, time, and
personnel effectively for maximum impact.
Scope of Marketing
Management:
• Market Research and Analysis: Identifying customer demographics,
behavior, and preferences.
• Product Development: Designing products/services to meet market
demands.
• Pricing Strategies: Setting competitive prices to balance customer value
and profitability.
• Promotion and Communication: Developing campaigns to inform and
attract target audiences.
• Distribution and Logistics: Ensuring timely and efficient delivery of
products/services.
• Customer Relationship Management (CRM): Building and maintaining
long-term customer relationships.
• Digital Marketing: Leveraging online platforms to reach a global
audience effectively.
 Basic Marketing Concepts:

1. Needs, Wants, and Demands:

•Needs are basic human requirements.
•Wants are needs shaped by culture and personality.
•Demands are wants backed by purchasing power.
2. Value and Satisfaction: Delivering products/services that meet or exceed
customer expectations.
3. Exchange and Transactions: The process of giving something of value (money,
time) in return for products or services.
4. Markets: The collective pool of potential and actual buyers for a product/service.
 The Marketing Mix
(4Ps)
1. Product:
•Refers to the goods or services offered to meet customer needs.
•Includes features, quality, design, branding, and after-sales service.
2. Price:
•The cost customers pay to acquire the product/service.
•Includes strategies like discounts, payment terms, and pricing models.
3. Place (Distribution):
•Ensures availability of the product/service at the right place and time.
•Includes supply chain management, distribution channels, and logistics.
4. Promotion:
•Involves communication strategies to inform and persuade customers.
•Includes advertising, sales promotions, public relations, and digital marketing.
 Marketing vs. Selling
While marketing and selling are closely related concepts in business,
they are distinct in their approaches, focus areas, and objectives.
Here's a comparison to highlight their differences:
Marketing:
(i) Definition:The process of identifying and satisfying customer
needs through product development, promotion, pricing, and
distribution.
(ii) Focus:Customer-oriented: Focuses on understanding customer
needs and delivering value.
(iii) Objective:Build long-term relationships, customer satisfaction,
and loyalty.
(iv) Approach:Holistic: Encompasses market research, branding,
advertising, and customer engagement.
Strategy: Pull strategy: Attracts customers by creating demand through
value, trust, and branding.
Perspective
Long-term: Focuses on creating sustainable business growth and
customer retention.
Tools/Techniques: Market research, segmentation, pricing strategy,
product design, advertising, and CRM.
Role in the 4Ps: Encompasses all 4Ps of marketing: Product, Price,
Place, and Promotion.
Selling:
Definition: The process of persuading customers to buy a product or
service, focusing on closing the sale.
Focus: Product-oriented: Focuses on the product and
convincing customers to purchase it.
Objective: Achieve short-term goals by maximizing sales
and revenue.
Approach: Transactional: Primarily emphasizes sales
tactics and closing deals.
Strategy: Push strategy: Encourages customers to
purchase through persuasion and promotional efforts.
Perspective: Short-term: Aims for immediate sales and
revenue generation.
Tools/ Techniques: Direct selling, sales pitches, promotional
discounts, and personal selling techniques.
Role in the 4Ps: Primarily associated with the "Promotion"
aspect of the marketing mix.
• Key Insights:
• Marketing creates demand and awareness, ensuring the
product aligns with customer needs, while selling is the final
step to convert that demand into a transaction.
• A business that focuses only on selling might see immediate
gains but risks losing customers in the long run due to a lack
of focus on satisfaction and loyalty.
• Companies today emphasize marketing over selling,
adopting customer-centric approaches for sustained growth.
Customer Value:
• Customer Value is the perceived worth of a product or
service in the eyes of the customer, measured by the
balance between the benefits received and the costs
incurred. It’s a key determinant of customer satisfaction,
loyalty, and long-term business success.
• Perceived Benefits: Quality, features, brand reputation,
customer experience, convenience, etc.
• Perceived Costs: Price, time, effort, and risk involved in
the purchase.
 Techniques to Enhance Customer Value:
• Understanding Customer Needs: Conduct surveys, focus groups, and market
research to identify customer preferences.
• Offering High-Quality Products/Service:Focus on product reliability, durability, and
innovation to meet or exceed expectations.
• Pricing Strategies: Competitive pricing, discounts, and value-for-money offers ensure
customers feel they are getting good deals.
• Exceptional Customer Service: Provide prompt support, personalization, and
problem resolution to enhance the customer experience.
• Personalization: Tailor products, services, and marketing messages to individual
customer preferences.
• Building Trust and Transparency: Foster trust through clear communication, ethical
practices, and delivering on promises.
• Leveraging Technology: Use tools like AI, CRM, and data analytics to predict
customer needs and deliver customized solutions.
• Reward Programs: Implement loyalty programs, discounts for repeat customers, or
exclusive benefits to build long-term relationships.
• Convenience: Streamline processes like online ordering, fast delivery, and hassle-free
returns to reduce effort for the customer.
 Relevance of Customer
Value:
•Driving Customer Loyalty: High perceived value encourages repeat purchases
and fosters brand loyalty.
•Differentiation in Competitive Markets: Providing superior value helps
businesses stand out and attract more customers.
•Enhancing Customer Satisfaction: When customers perceive value, they are
more likely to be satisfied with their purchase.
•Encouraging Positive Word-of-Mouth: Satisfied customers often share their
experiences, contributing to organic brand growth.
•Sustainable Business Growth: By prioritizing value, companies can build lasting
relationships and ensure steady revenue streams.
•Supporting Premium Pricing: Businesses that deliver exceptional value can
charge premium prices, boosting profitability.
 Marketing Environment
and Competition:
The marketing environment refers to the external and internal factors that
influence a company's marketing activities and decision-making.
Understanding this environment is essential for businesses to adapt
strategies, identify opportunities, and maintain a competitive edge.
Components of the Marketing Environment:
Internal Environment:
• Factors within the company that impact marketing activities.
• Includes resources, management structure, company culture, and
employee capabilities.
• Example: A company's financial health may dictate its ability to invest in
advertising campaigns.
• External Environment
• Divided into Microenvironment and Macro environment:
• a. Microenvironment (Close to the organization):
• Customers: Understanding customer preferences and behavior is critical for designing
products/services.
• Competitors: Businesses must analyze competitors' strategies to differentiate themselves.
• Suppliers: Reliable suppliers ensure smooth operations and influence product pricing.
• Intermediaries: Distributors, retailers, and agents play a role in making products available
to customers.
• Publics: Groups like the media, government, and local communities can impact a
company’s image and operations.
• b. Macro environment (Broader societal forces):
• Economic Factors: Economic conditions, inflation, and purchasing power affect consumer
spending.
• Technological Factors: Advancements in technology influence marketing channels and
customer expectations.
• Social and Cultural Factors: Changes in societal values, lifestyles, and demographics shape
demand.
• Political and Legal Factors: Government regulations and legal frameworks impact
marketing strategies.
• Environmental Factors: Climate concerns and sustainability efforts influence consumer
choices and corporate practices.
Strategies to Address
Competition:
• Differentiation:
• Develop unique features, superior quality, or branding to stand out.
• Cost Leadership:
• Optimize operations to offer products at lower prices.
• Customer Focus:
• Build loyalty by prioritizing customer satisfaction and personalizing
experiences.
• Innovation:
• Invest in R&D to stay ahead in product development and technology.
• Market Segmentation:
• Identify niche markets and tailor offerings to specific customer groups.
• Collaboration:
• Form strategic partnerships with suppliers or distributors to enhance
efficiency.
Impact of Marketing
Environment on
Marketing:
• Positive Impacts:
• Identifying Opportunities:
• Understanding customer needs helps companies launch new products/services.
• Example: E-commerce businesses capitalized on the increased demand for online shopping during
the pandemic.
• Staying Competitive:
• Analyzing competitors’ strategies allows businesses to stay ahead in innovation and pricing.
• Customer-Centric Strategies:
• Insights into social and cultural trends help tailor marketing campaigns to specific audiences.
• Technological Leverage:
• Adopting advanced technologies enhances marketing efficiency and reach.
• Example: Social media platforms allow businesses to target audiences with precision.
• Negative Impacts:
• Economic Downturns:
• Reduced purchasing power affects sales and forces businesses to re-evaluate pricing strategies.
• Regulatory Challenges:
• Compliance with new laws can increase operational costs and require strategy adjustments.
•Rapid Market Changes:
•Failure to adapt to technological or societal shifts can lead to loss of market
relevance.
•Example: Traditional brick-and-mortar stores that didn’t embrace online channels
faced declining sales.
•Intense Competition:
•In a saturated market, standing out requires significant investment in marketing and
innovation.
• Steps to Analyze the Marketing Environment
• Conduct a SWOT Analysis:
• Identify Strengths, Weaknesses, Opportunities, and Threats within the market.
• PESTEL Analysis:
• Examine Political, Economic, Social, Technological, Environmental, and Legal factors
in the macro environment.
• Competitor Analysis:
• Evaluate competitors’ strategies, strengths, and weaknesses to position your brand
effectively.
•Customer Analysis:
•Use surveys, focus groups, and analytics to understand customer needs and
preferences.
•Trend Monitoring:
•Stay updated on market trends, technological advancements, and regulatory
changes.
• Corporate Strategic Planning
• Corporate Strategic Planning is the process of defining an organization's long-term goals,
allocating resources, and determining the actions required to achieve these objectives. It
serves as a roadmap for aligning the company’s mission and vision with its operational
and market strategies.
• Key Components of Corporate Strategic Planning
• 1. Mission Statement
• Defines the organization's purpose and primary objectives.
• Example: Nike's mission is "To bring inspiration and innovation to every athlete in the
world."
• Vision Statement
• Outlines the organization’s long-term aspirations and desired future position.
• Example: Tesla's vision is "To create the most compelling car company of the 21st century by driving the world’s
transition to electric vehicles."
• 3. Core Values
• Represents the principles and ethical standards guiding the organization’s actions.
• 4. Situation Analysis
• SWOT Analysis: Examines the company’s Strengths, Weaknesses, Opportunities, and Threats.
• PESTEL Analysis: Analyzes external macro environment factors (Political, Economic, Social, Technological,
Environmental, and Legal).
• 5. Corporate Objectives
• Set measurable, specific, and time-bound goals aligned with the mission and vision.
• Example: "Increase market share by 15% within three years."
• 6. Strategic Alternatives and Choices
• Identify potential strategies to achieve objectives, such as:
• Growth Strategies: Market penetration, market development, product development, or diversification.
• Stability Strategies: Maintaining current operations without significant change.
• Retrenchment Strategies: Reducing scale or scope of operations to improve efficiency.
• 7. Resource Allocation
• Allocate financial, human, and technological resources to implement chosen strategies effectively.
• 8. Implementation Plan
• Develop detailed action plans, assign responsibilities, and establish timelines.
• 9. Monitoring and Evaluation
• Track progress using key performance indicators (KPIs) and adapt strategies based on performance data.
Levels of Strategic
Planning:
• Corporate-Level Strategy:
• Focuses on the overall direction of the organization and portfolio management of its business
units.
• Example: Deciding to enter new markets or divest from non-performing businesses.
• 2. Business-Level Strategy:
• Focuses on competitive positioning within individual markets or industries.
• Example: Differentiating products in a competitive market segment.
• 3. Functional-Level Strategy:
• Focuses on operational efficiency in specific functions like marketing, production, or HR.
• Example: Automating production processes to reduce costs.
• Benefits of Corporate Strategic Planning
• Clarity of Direction: Provides a clear path for achieving long-term goals.
• Resource Optimization: Ensures efficient use of resources aligned with strategic priorities.
• Adaptability: Enables organizations to respond effectively to market changes and challenges.
• Competitive Advantage: Helps businesses stay ahead by identifying opportunities and leveraging
strengths.
• Alignment: Aligns the efforts of various departments and business units toward common
objectives.
• Frameworks Used in Strategic Planning
• Porter’s Five Forces: Analyzes industry competition and market dynamics.
• BCG Matrix: Helps manage a portfolio of business units by categorizing them as Stars, Cash
Cows, Question Marks, or Dogs.
• An off Matrix: Guides growth strategies by exploring market penetration, market
development, product development, and diversification.
• Balanced Scorecard: Tracks performance across financial, customer, internal process, and
learning & growth perspectives.
• Defining the Role of Marketing Strategies
• Marketing strategies play a pivotal role in achieving business goals by aligning marketing
activities with organizational objectives. They are long-term plans designed to create value
for customers, differentiate from competitors, and achieve sustainable growth.
• Key Roles of Marketing Strategies
• Customer Focus:
• Helps identify and understand target audiences to create products and campaigns that meet their
needs.
• Market Differentiation:
• Establishes unique selling propositions (USPs) to distinguish products/services from competitors.
• Alignment with Business Objectives:
• Ensures marketing efforts contribute to achieving broader corporate goals like revenue growth, market
share, or brand awareness.
• Resource Optimization:
• Guides efficient allocation of budgets, time, and personnel for maximum impact.
• Competitive Advantage:
• Enables businesses to stay ahead of competitors by anticipating market trends and customer
preferences.
• Driving Brand Value:
• Builds brand recognition, trust, and loyalty through consistent messaging and customer engagement.
• Adaptability to Change:
• Provides a framework to adjust strategies in response to evolving market conditions or technological
advancements.
• Revenue Generation:
• Ultimately drives sales by attracting, retaining, and converting customers through targeted efforts.
Marketing Planning
Process:
The marketing planning process is a systematic approach to designing, implementing,
and evaluating marketing strategies. It ensures that marketing activities are focused,
coherent, and effective.
• Steps in the Marketing Planning Process
• Situation Analysis:
• Assess the internal and external environment using tools like:
• SWOT Analysis: Strengths, Weaknesses, Opportunities, Threats.
• PESTEL Analysis: Political, Economic, Social, Technological, Environmental, and Legal factors.
• Understand market trends, customer needs, and competitor strategies.
• Setting Marketing Objectives:
• Define clear, specific, measurable, achievable, relevant, and time-bound (SMART)
goals.
• Example: "Increase online sales by 20% in the next 12 months.“
• Target Market Identification:
• Segment the market based on demographics, psychographics, behavior, or geography.
• Choose a target audience that aligns with the company’s goals and resources.
•Developing Marketing Strategies:
•Define how to position the product/service in the market.
•Focus on the 4Ps of Marketing:
•Product: Features, design, branding.
•Price: Pricing strategies (premium, competitive, discount).
•Place: Distribution channels (online, retail, direct).
•Promotion: Advertising, PR, sales promotions, and digital marketing.
•Budget Allocation:
•Determine the financial resources required for each marketing activity.
•Example: Allocate 40% of the budget to digital marketing and 20% to offline
campaigns.
•Implementation:
•Execute the marketing plan with specific timelines and assigned responsibilities.
•Coordinate between departments like sales, product development, and customer
service.
•Monitoring and Control:
• Track performance using key performance indicators (KPIs) such as:
• Conversion rates.
• Customer acquisition cost (CAC).
Example: Use analytics tools to measure the effectiveness of digital
campaigns.
• Evaluation and Adjustment:
• Review the outcomes against objectives and make necessary
adjustments to improve future performance.
• Example of a Marketing Plan Outline
• Executive Summary: Overview of the marketing plan.
• Market Research Insights: Key findings from situation analysis.
• Target Market Description: Detailed profile of the target audience.
• Marketing Objectives: Specific goals to achieve.
• Marketing Strategies: Tactics for product, pricing, promotion, and
distribution.
• Budget: Breakdown of resources for each activity.
• Implementation Timeline: Schedule for executing strategies.
• Performance Metrics: Criteria for measuring success.
Components of a
Marketing Information
System:
• Internal Records System:
• Includes data from within the organization, such as sales reports, customer databases, inventory levels, and financial
records.
• Example: Sales trends from CRM tools help forecast future demand.
• Marketing Intelligence System:
• Collects information from external sources like competitors, industry reports, customer feedback, and public data.
• Example: Tracking competitor pricing and promotional strategies through market research.
• Marketing Research System:
• Involves systematic collection and analysis of data for specific marketing challenges.
• Methods include surveys, focus groups, interviews, and experiments.
• Example: Conducting customer satisfaction surveys to refine a product offering.
• Analytical Tools and Models:
• Techniques and software that help analyze collected data, such as:
• Predictive analytics.
• Data visualization tools.
• Statistical models.
• Example: Google Analytics for tracking website traffic and customer behavior.
• Decision Support System (DSS):
• Combines tools, models, and software to assist in decision-making.
• Example: A retail business using DSS to decide optimal pricing strategies based on past sales trends.
 Functions of a Marketing
Information System:
•Data Collection:
•Gathers relevant internal and external data continuously
.
•Data Analysis and Interpretation:
•Processes raw data to extract actionable insights.

•Information Storage and Retrieval:

•Organizes data in a way that it is easily accessible for future use.

•Decision Support:
•Provides decision-makers with real-time, relevant, and accurate information.

•Monitoring Marketing Activities:

•Tracks the performance of marketing campaigns and provides feedback for
improvement.
Importance of a
Marketing Information
•System:
Improved Decision-Making:
•Access to accurate and timely data enables better strategic and operational
decisions.
•Market Understanding:
•Provides insights into customer preferences, market trends, and competitor
actions.
•Enhanced Customer Satisfaction:
•By understanding customer needs, businesses can deliver tailored products and
services.
•Resource Optimization:
•Helps allocate marketing budgets and resources efficiently.
•Competitive Advantage:
•Enables companies to stay ahead by identifying opportunities and responding to
threats effectively.
•Speed and Agility:
•Quick access to information allows businesses to respond promptly to market
changes.
 Challenges in
Implementing MIS:
• Data Overload:
• Managing large volumes of data can be overwhelming without proper tools.
• Data Accuracy:
• Inaccurate or outdated information can lead to poor decision-making.
• Cost of Implementation:
• Setting up and maintaining an Management Information System (MIS) requires investment in technology and
skilled personnel.
• Integration Issues:
• Difficulty in integrating data from various sources into a cohesive system.
• Privacy and Security Concerns:
• Ensuring compliance with data protection regulations and safeguarding customer information.
• Examples of MIS in Action
• Retail:
• MIS integrates POS systems, inventory management, and customer purchase history to optimize stock levels and
enhance customer experience.
• E-commerce:
• Amazon uses advanced MIS to track customer behavior, recommend products, and personalize marketing
campaigns.
• Healthcare:
• Pharmaceutical companies use MIS to track prescription trends and design targeted marketing for doctors and
patients.
• Consumer Behavior refers to the study of how individuals, groups, or organizations
select, buy, use, and dispose of goods, services, or ideas to satisfy their needs and
desires. It involves understanding the psychological, social, cultural, and economic
factors that influence a buyer's decision-making process.
• Components of Consumer Behavior
• Cultural Factors:
• Culture, subculture, and social class shape consumer preferences and behavior.
• Example: Food preferences differ significantly between cultures, such as
vegetarian diets in India vs. meat-heavy diets in Western countries.
• Social Factors:
• Influence from family, friends, social groups, and role models.
• Example: A teenager might buy a particular smartphone because their peers use the
same model.
• Personal Factors:
• Individual characteristics such as age, gender, occupation, lifestyle, and
personality.
• Example: A luxury car appeals more to middle-aged professionals than to college
students.
• Psychological Factors:
• Motivation, perception, learning, beliefs, and attitudes.
• Example: Fear of missing out (FOMO) can motivate consumers to purchase limited-time
offers.
• Economic Factors:
• Disposable income, spending patterns, and economic conditions.
• Example: During an economic downturn, consumers may prioritize essential items over
luxury goods.
• Consumer Buying Process:
• The consumer buying process outlines the steps consumers go through when making a
purchase decision. It consists of five stages:
• Problem Recognition:
• The consumer identifies a need or a problem.
• Example: Feeling hungry prompts a person to look for food options.
• Information Search:
• The consumer seeks information about products or services to solve their problem.
• Example: Reading reviews, asking friends, or searching online for the best smartphone.
• Evaluation of Alternatives:
• The consumer compares different options based on features, price, and value.
• Example: Comparing features of different laptops before making a choice.
• Purchase Decision:
• The consumer selects the product or service and makes the purchase.
• Example: Choosing and buying a specific brand of running shoes after deliberation.
• Post-Purchase Behavior:
• The consumer evaluates their satisfaction with the purchase.
• Example: Feeling satisfied with a product may lead to repeat purchases, while
dissatisfaction may lead to returns or complaints.
• Factors Influencing Consumer Buying Behavior
• 1. Cultural Factors
• Culture: The fundamental determinant of a person’s wants and behavior.
• Example: Celebrations like Christmas or Diwali impact purchasing patterns.
• Subculture: Groups within a culture with shared values, like regional or religious
influences.
• Social Class: Economic and social status influences preferences and purchasing
power.
• Social Factors
• Reference Groups: Groups that influence attitudes and behavior.
• Example: A sports team fan might prefer products endorsed by their favorite athlete.
• Family: Family members heavily influence purchasing decisions, especially for household goods.
• Roles and Status: A person's position in society or within a group shapes buying preferences.
• 3. Personal Factors
• Age and Life Cycle: Different age groups and stages in life affect choices.
• Example: Young professionals may prioritize gadgets, while retirees focus on healthcare products.
• Occupation: Profession determines needs and purchasing patterns.
• Lifestyle: Interests, activities, and opinions influence choices.
• Personality and Self-Concept: Unique traits and self-image impact brand preferences.
• 4. Psychological Factors
• Motivation: Driven by needs like safety, social belonging, or self-actualization (Maslow’s Hierarchy of
Needs).
• Perception: How consumers interpret information about a product or brand.
• Learning: Past experiences shape future decisions.
• Example: A good experience with a brand leads to loyalty.
• Beliefs and Attitudes: Long-held opinions about products or brands influence buying behavior.
• 5. Economic Factors
• Income Levels: Higher disposable income leads to greater spending on luxury goods.
• Economic Conditions: Inflation, unemployment, or economic growth shape consumer confidence.