BUSINESS SCHOOL OF DELHI

MARKETING MANAGEMENT
RANJEET
11/22/2009

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

MARKETING MANAGEMENT INTRODUCTION OF MARKETING MANAGEMENT

It comes in the existence in 1752 in Rome Peter Drucker However is in widely India accepted we as the C.K. Management Prahallad Guru. the accepted as

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 individual and groups obtain what they need and what through creating, offering and exchanging products and services. B. Managerial Definition:- It is essentially about providing changing, 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.

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 demand 3. Latent demand 4. Declining demand 5. Irregular demand 6. Full demand 7. Over full demand 8. Unwholesome demand

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 as Latent 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 seasonal this 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

demand. Like:- Campaign against alcohol, cigarette, polythene etc.

KEY CUSTOMER MARKET

1. Consumer Market 2. Business Market 3. Global Market 4. Non Profit Market
1. Consumer Market:- Here company sale the product with mass consumer like retail good, beverage etc. 2. Business Market:- (B2B) Here selling and buying of the 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 their

product 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 in

Society 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 & Demand 2. Target market, positioning & segmentation 3. Offering and branding 4. Competition 5. Market channel 6. Value and satisfaction

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 & segmentation Target 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 is known 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.

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 idea 2. Product idea 3. Selling idea 4. Marketing idea 5. Holistic marketing idea

1. Production Idea:It is the oldest idea. It emphasize consumer widely except the thing which Like availability china is high and inexpensive. 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.

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:- 1920

Here 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.

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 reevaluation 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 Exploration 2. Value creation 3. Value delivery

1. Value exploration:It is about how company indentifies new value opportunity. It can be correlated with three factors:a. Customer cognitive factor b. Companys competency factor c. The collaborator factor

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 mission 2. Stabilishing strategic business unit 3. Assigning resource to each SBU ( Strategic Business Unit) 4. Assigning growth opportunity

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 values C. It provide short as well as long term of view D. 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 competitive c. A separate HOD look after it.

3. Assigning

resource

to

each

SBU(Strategic

Business 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.

BCG MATRIX (1970)

BOSTON CONSULTING GROUP MATRIX
Boston Matrix has given four opportunities for any
M a r k e t i n g g r o w t h

company:-

Market Share

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 hard work. 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 opportunities are limited.

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 the opportunities 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 might become Stars and eventual Cash Cows, but they could just as easily absorb effort with little return. These opportunities need serious thought as to whether increased investment is warranted.

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 or outside 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

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 it in 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.

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 & to

increase the brand name of the company, almost all the

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 the

customer & 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 to

sell 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 all

customer 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.

Competitors:

Its

very

important

feature

of

micro

environment. 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. Macro

environment 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 environment

of 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 the company. 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 very

young 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.

Literacy Level: According to data the literacy rate of any

country 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 any project.

Economic Environment: Here we find out the economic

growth 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 level

low and how much high level income population. According to income distribution makes some strategy. This very useful 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 direct

selling 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.

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.