Marketing Management:

Marketing: typically seen as the task of creating, promoting, and delivering goods and
services to consumers and businesses.

The term 'marketing concept' pertains to the fundamental premise of modern marketing. This
concept proposes that in order to satisfy the organizational objectives, an organization
should anticipate the needs and wants of consumers and satisfy these more effectively than
competitors. Marketing and marketing concepts are directly related.

The Scope of Marketing:

Places

Properties

Organizations

Information

Ideas

Types of Markets:

Consumer Markets: Consumer market refers to a market where in the seller sells
the product for a primary reason of making profits while buyer buys the products for
personal use..and volume of the profit is less...product is more in number.

Business Markets: Marketplaces where organizations purchase raw materials,

natural resources and components of other products for their resale or for use in
manufacturing another product. Business markets are generally made up of
businesses which buy products and raw materials for their own operation. And
voume of profit is more. And less supplier

Global Markets: The activity of buying or selling goods and services in all the
countries of the world, or the value of the goods and services sold. What are the
fectors that company has to keep in mind for doing business in other country.

Nonprofit and Governmental Markets: Activities and strategies employed by

a nonprofit organization that are designed to spread the message of the organization,
as well as to solicit donations and call for volunteers. Nonprofit marketing involves
the creation of logos, slogans and copy, as well as the development of a media
campaign to expose the organization to an outside audience.

A government market is a market where the consumers are federal, state, and
local governments. Governments purchase both goods and services from the private
sector. Governments buy the same types of products and services as private sector
consumers, plus some more exotic products such as aircraft carriers, fighter jets,
tanks, spy satellites, and nuclear weapons. A growing trend in the past decades has
been the outsourcing of traditional government services to private firms, such as
prisons.
 Marketing Concepts and Tools

Defining Marketing

Marketing:

Marketing management

Core Marketing Concepts

Target Markets and Segmentation: Target Marketing involves breaking a market into
segments and then concentrating your marketing efforts on one or a few key segments
consisting of the customers whose needs and desires most closely match your product or
service offerings. It can be the key to attracting new business, increasing your sales, and
making your business a success.

The beauty of target marketing is that by aiming your marketing efforts at specific groups of
consumers it makes the promotion, pricing, and distribution of your products and/or services
easier and more cost-effective.

While market segmentation can be done in many different ways, depending on how you
want to slice up the pie, three of the most common types are:

Demographic Segmentation

Demographic grouping is based on measurable statistics, such as:

gender
age
income level
marital status
education
race
religion

Demographic segmentation is usually the most important criteria for identifying target
markets, making knowledge of demographic information crucial for many businesses.

A liquor vendor, for instance, might want to target their marketing efforts based on the results
of Gallup polls, which indicate that beer is the beverage of choice for people below the age
of 54 (particularly in the 18-34-year-old age range) while those aged 55 and older prefer
wine.

Geographic Segmentation

Geographic segmentation involves segmenting the market based on location. Home

addresses are one example. However, depending on the scope of your business this could
be done by:

neighborhood
 postal/zip code
area code
city
province/state
region
country (if your business is international)

Geographic segmentation relies on the notion that groups of consumers in a particular

geographic area may have specific product or service needs; for instance, a lawn care
service may want to focus their marketing efforts in a particular village or subdivision that
has a high percentage of seniors.

Psychographic Segmentation

Psychographic segmentation divides the target market based on socio-economic class,

personality, or lifestyle preferences. The socio-economic scale ranges from the affluent and
highly educated at the top to the uneducated and unskilled at the bottom. The UK-based
National Readership Survey defines social class according to the following categories:

Social Social Status Occupation

Grade
A upper middle class
B middle class
C1 lower middle class
C2 skilled working class
D working class
E those at lowest level of
subsistence
higher managerial, administrative or professional
intermediate managerial, administrative or professional
supervisory or clerical, junior managerial, administrative or
professional
skilled manual workers
semi and unskilled manual workers
state pensioners or widows (no other earner), casual or
lowest grade workers

The lifestyle classification involves values, beliefs, interests, etc. Examples include those
who prefer an urban as opposed to rural or suburban lifestyle, or those who are pet lovers or
have a keen interest in environmental issues.

Psychographic segmentation is based on the theory that the choices that people make when
purchasing goods or services are reflections of their lifestyle preferences or socio-economic
class.

A Simple Marketing System

Marketing Concepts
and Tools

Marketplace: A market consists of all the potential customers sharing a

particular need or want who might be willing and able to engage in exchange
to satisfy that need or want.
 Marketspace: Market space is a relatively new concept in marketing which is
a virtual market place. It is an electronic information exchange environment in
which the constraints of physical boundaries are eliminated. A market space
is an integration of several market places through technology. This is the
reason it is also called an electronic market space.

Characteristics of market space:

Transactions happen through internet or online media
Content: There is information about the products available, not products themselves
Context: Instead of a face-to-face transaction, it is through electronic medium
Infrastructure: Actual stores and showrooms are replaced by computers and
internet

Metamarket : An online website such as the Maruti suzuki website for second hand cars
which promotes the purchase of physical goods (Maruti suzuki cars) is known as a meta
market. Lets take a look at the automobile industry. Whatever company it may be, an
automobile company would involve suppliers, channels, service providers so and so forth.
Thus the meta market will bring all these buyers and sellers online in one place for one
purpose only. Rather than giving multiple products to one customer, the meta market brings
together different customers of the same product.

It can also be said that the combination of various entities within the same industry can be
known as a meta market.

Marketers and Prospects: When one party is more actively seeking an

exchange than the other party, we call the first party a marketer and the
second party a prospect. A marketer is some one seeking one or more
prospects who might engage in an exchange of values. A prospect is
someone whom the marketer identifies as potentially wiling and able to
engage in an exchange of values
 Needs, Wants, and Demands:

Product, Offering, and Brand: The following are the major differences between product
and brand:

1. The product is an item or service produced and offered by the company for sale in the
market. A brand is an entity like the logo, symbol or name used by the companies, to make
their products identifiable among other products in the marketplace.
2. A product can be your need, but the brand is something more than that. You can understand
it with an example like it is your need to wear outfits and footwear, but it is your want to wear
outfits of Gucci and footwear of Nike.
3. Copying a product is easy, but its hard or says impossible to copy a brand.
4. Companies create products. On the other hand, Brand is created by us i.e. customers; it
takes years and years to build a brand loyalty.
5. Products can be replaced by other products because it becomes obsolete over time. In
contrast to this, brands are forever.
6. Product performs its general functions, but a brand offers value to the customers.
7. The product is tangible or intangible in nature. However, a brand is intangible it can only be
experienced.

Value and Satisfaction: Value: It is the ratio between what the customer gets and what he
gives. The customer gets benefits and gives costs. Product choice is guided by the value
provided by the product.
Benefits of customer may be functional and emotional
Cost of products can be monetary, time, energy and psychic.

Marketing should provide value to the customers by raising benefits and reducing costs.

b) Satisfaction: It is the customers perceived performance from a product in relation to the

expectations.
The customer is dissatisfied if the performance matches the expectations; delighted if the
performance exceeds expectations. Marketing aims for total customer satisfaction by
matching product performance with expectations.

Value
Value = Benefits / Costs =
(Functional benefits + Emotional benefits) /
(Monetary costs + Time costs + Energy costs + Psychic costs)

Exchange and Transactions

Exchange: A marketing exchange is what happens any time two or

more people trade goods or services. In marketing theory, every
exchange is supposed to produce "utility," which means the value of
what you trade is less than the value of what you receive from the
trade. Of course, all exchanges in the real world are much more
complicated.

Transaction: Transactional marketing is a business strategy that

focuses on single, "point of sale" transactions. The emphasis is on
maximizing the efficiency and volume of individual sales rather than
developing a relationship with the buyer.

The transactional approach is based on the four traditional elements of marketing,

sometimes referred to as the four P's:

Product -- Creating a product that meets consumer needs.

Pricing -- Establishing a product price that will be profitable while still attractive to
consumers.

Placement -- Establishing an efficient distribution chain for the product.

Promotion -- Creating a visible profile for the product that makes it appealing to
customers.

Barter: To exchange goods or services directly without the use of money.

Transfer: A change in ownership of an asset, or a movement of funds and/or assets from

one account to another. A transfer may involve an exchange of funds when it involves a
change in ownership, such as when an investor sells a real estate holding. In this case, there
is a transfer of title from the seller to the buyer and a simultaneous transfer of funds, equal to
the negotiated price, from the buyer to the seller.

The term transfer may also refer to the movement of an account from one bank or brokerage
to another.
Two-Party Exchange Map Showing Want Lists of Both Parties:

Relationships and Networks

Relationship marketing: Relationship marketing is a facet of customer

relationship management (CRM) that focuses on customer loyalty and long-
term customer engagement rather than shorter-term goals like customer
acquisition and individual sales. The goal of relationship marketing (or
customer relationship marketing) is to create strong, even emotional,
customer connections to a brand that can lead to ongoing business, free
word-of-mouth promotion and information from customers that can generate
leads.

Relationship marketing stands in contrast to the more traditional transactional

marketingapproach, which focuses on increasing the number of individual sales. In the
transactional model, the return on customer acquisition cost may be insufficient. A customer
may be convinced to select that brand one time, but without a strong relationship marketing
strategy, the customer may not come back to that brand in the future. While organizations
combine elements of both relationship and transactional marketing, customer relationship
marketing is starting to play a more important role for many companies.

Marketing network: A business model in which a distributor network is needed to build the
business. Usually such businesses are also multilevel marketing in nature in that payouts
occur at more than one level. .

Network marketing is a type of business opportunity that is very popular with people looking
for part-time, flexible businesses. Some of the best-known companies in America, including
Avon, Mary Kay Cosmetics and Tupperware, fall under the network marketing umbrella.

Marketing Channels: A marketing channel is the people, organizations,

and activities necessary to transfer the ownership of goods from the point
 of production to the point of consumption. It is the way products and services
get to the end-user, the consumer; and is also known as a distribution
channel.[1] A marketing channel is a useful tool for management,[2] and is
crucial to creating an effective and well-planned marketing strategy.

Supply Chain: the management of the flow of goods and services,[2] involves
the movement and storage of raw materials, of work-in-process inventory,
and of finished goods from point of origin to point of consumption.

Competition:
Brand competition: A lot of brand positioning work relates to an
organizations competitiona brand might be positioned this way, but
compared to what? A strong brand identity is built in part on a competitive
position and, in turn, communicates that position to its intended audience.

Firms marketing differentiated products frequently develop and compete on the

basis of brands or labels. Coca Cola vs. Pepsi-Cola, Levi vs. GWG jeans,
Kelloggs Corn Flakes vs. Nabiscos Bran Flakes are a few examples of inter-
brand competition. Each of these brands may be preferred by different buyers
willing to pay a higher price or make more frequent purchases of one branded
product over another.

Intra-brand competition is competition among retailers or distributors of the same

brand. Intra-brand competition may be on price or non-price terms. As an
example, a pair of Levi jeans may be sold at a lower price in a discount or
specialty store as compared to a department store but without the amenities in
services that a department store provides. The amenities in services constitute
intra-brand non-price competition. Some manufacturers seek to maintain uniform
retail prices for their products and prevent intra-brand price competition through
business practices such as resale price maintenance (RPM), in order to stimulate
intra-brand non-price competition if it will increase sales of their product.

Industry competition: Industry rivalry usually takes the form of jockeying for position using
various tactics (for example, price competition, advertising battles, product introductions).
This rivalry tends to increase in intensity when companies either feel competitive pressure or
see an opportunity to improve their position.

In most industries, one companys competitive moves will have a noticeable impact on the
competition, who will then retaliate to counter those efforts. Companies are mutually
dependent, so the pattern of action and reaction may harm all companies and the industry.

Some types of competition (for example, price competition) are very unstable and negatively
influence industry profitability. Other tactics (for example, advertising battles) may positively
influence the industry, as they increase demand or enhance product differentiation.

Form competition

Generic competition: among products that are different, but solve the same
problem or provide the same benefit or utility, such as audio cassettes and
CDs, adhesive tape and glue-sticks, carpets and tiles.
 Marketing environment

Task environment

The marketing environment consists of the task environment and the broad environment. The task
environment includes the actors engaged in producing, distributing, and promoting the offering.
These are the company, suppliers, distributors, dealers, and target customers. In the supplier group
are material suppliers and service suppliers, such as marketing research agencies, advertising agencies,
banking and insurance companies, transportation companies, and telecommunications companies.
Distributors and dealers include agents, brokers, manufacturer representatives, and others
who facilitate finding and selling to customers.
Broad environment

The broad environment consists of six components: demographic environment, economic environment,
social-cultural environment, natural environment, technological environment, and political-
legal environment. Marketers must pay close attention to the trends and developments in
these and adjust their marketing strategies as needed. New opportunities are constantly emerging
that await the right marketing savvy and ingenuity. Here are two good examples.

Marketing Program

Marketing program

Marketing mix: The marketing mix refers to the set of actions, or tactics, that
a company uses to promote its brand or product in the market. The 4Ps make
up a typical marketing mix - Price, Product, Promotion and Place. However,
nowadays, the marketing mix increasingly includes several other Ps like
Packaging, Positioning, People and even Politics as vital mix elements.

The Four P Components of the Marketing Mix:

Company Orientations toward the Marketplace:

Production Concept

Product concept

Selling Concept

Marketing Concept

Societal Marketing Concept

Contrasts Between the Sales Concept and the Marketing Concept:

Company Orientations Toward the Marketplace:

Target Market

Customer Needs

Integrated Marketing: Integrated Marketing is an approach to creating a

unified and seamless experience for consumers to interact with the
brand/enterprise; it attempts to meld all aspects of marketing communication
such as advertising, sales promotion, public relations, direct marketing, and
social media, through their respective mix of tactics, methods, channels,
media, and activities, so that all work together as a unified force. It is a
process designed to ensure that all messaging and communications
strategies are consistent across all channels and are centered on the
customer.

External marketing:

Internal marketing
Internal Marketing External Marketing

Target group is employees Target group is customers

Communication between firm Communication between firm and

(management) and employees customers

Promotional features include salary Promotional features include word-of-

increase, transfers, staff benefits, mouth, advertising, newsletters

recognition

Increase job satisfaction Increase customer

satisfaction/experience

Incentives are in addition to salary Incentives are by way of quality

service

Analysis and disciplinary action is Public relations is needed

needed

Keyword: Partnership Keyword: Relationship

Retention of employees is vital Retention of customers is vital

Requires vision and planning Requires control and feedback

Strategic and tactical Operational

Traditional Organizational Chart versus Modern Customer-Oriented Company
Organization Chart:

Societal Marketing Concept: The societal marketing is a marketing concept that

holds that a company should make marketing decisions by considering consumers'
wants, the company's requirements, and society's long-term interests.

Examples: The Body Shop: The Body Shop International plc is the original, natural and
ethical beauty brand. The company uses only plant based materials for its products. It is
against Animal testing, supports community trade, activate Self Esteem, Defend Human
Rights, and overall protection of the planet. They have also their own charity, The Body
Shop Foundation, to assist those working to achieve progress in the areas of human and
civil rights, environmental and animal protection. Thus Body shop is really following the
concept of Societal Marketing.