Chapter 1

Defining Marketing for the New Realities

 Marketing a quick look What can be marketed ?

Marketing Management
How a Market Works

Marketing Management is the process of

planning and executing the conception, pricing
and promotion and distribution of goods,
services and ideas to create exchanges with
target groups that satisfy customer and
organizational objectives
 Types of Demands
Declining: Frequency of purchasing decreases (eg.
Diaries)
Full: All products supplied being bought
Irregular: Seasonal at intervals (eg. Umbrellas,wollen
clothes)
Latent : Product doesnt exist for a certain need
Negative: Pay for avoiding something (eg. Fat free
milk)
Non-existent: Unaware or uninterested in a product
Overfull: Supply cant match demand here
Unwholesome: Product bought despite being
harmful (eg. Tobacco)
Structure of Flows in a Modern
Exchange Economy
Types of Needs
Delight needs: Customer would like the dealer to
include an onboard GPS system
Real needs: Customer wants a car whose
operating cost, not initial price, is low
Stated needs: Customer wants an inexpensive car
Secret needs: Customer wants friends to see him
or her as a savvy consumer.
Unstated needs: Customer expects good service
from the dealer
 Marketing Management Orientations

Production Concept: This concept holds that
customers prefer products that are inexpensive
and widely available.eg. Micromax
Holistic Marketing Concept: This concept
acknowledges that everything matters in marketing
i.e development, design and implementation of
marketing programs, processes, and activities that
recognize their breadth and interdependencies.

Selling Concept: Customers if left alone would

not buy an organizations products. Credit Cards

Marketing Concept: This concept is to find the

right products for your customers rather than
finding the right customers for you product. Eg.
Telecom offers

Product Concept: stresses the fact that

customers prefer products offering the best
quality, performance or other innovative
features. Eg. High end smartphones
 The Four Ps

Marketing Management Tasks

Developing Marketing Strategies and Plans

Capturing Marketing Insights

Connecting with Customers / Customer Satisfaction

Building Strong Brands

Creating Value
Modern Marketing Management
Four Ps Communicating Value

People Processes Delivering Value

Programs Performance Conducting Marketing Responsibly for Long-Term Success

Customer Equity

What is Customer Equity

Customer equity is the total combined Customer lifetime

values of all of the companys customers

The more loyal a customer, the more is the customer

equity. Firms like Apple and Facebook have very high
customer equity and that is why they have an amazing
and sustainable competitive advantage
Chapter 5 Understanding the market
place and consumers

- Nikhila G (PGP/20/208)
 Supporting Marketing Decisions

What is marketing information Demographic

system? Population age mix
Consists of people, equipment and ethnic
procedures to gather, sort, analyze, educational Economic
and distribute needed timely, and Political legal household patterns
Consumer psychology
accurate information to marketing Business legislation Income distribution
decision makers Growth of special- Income, savings, debt &
interest groups credit
Types of marketing information?
Internal records of sales, prices, Major forces in
inventory levels, orders, macro environment
receivables and payables Technological
Marketing intelligence system Pace of change
Every day information about opportunities for Socio-cultural
developments in the marketing innovation Values
environment R&D budgets Subcultures
regulation of
Analyzing the microenvironment technological change
Needs and trends Natural

- Nikhila G (PGP/20/208)
 Marketing Information System

Scope

Consists of people and

procedures dedicated to
assessing information
needs, developing the
needed information, and
helping decision makers to
use the information to
generate and validate
actionable customer and
market insights
 Marketing Research Process
Steps Involved

1
Defining the problem and
What it entails ?
research objectives
Systematic design,
collection, analysis, and 2
reporting of data relevant to
Developing the research plan for
a specific marketing collecting information
situation facing an
organization 3
Implementing the research plan
collecting and analyzing data

Interpreting and reporting and 4

findings
 1 2
Defining the problem and research
objectives
Research Objectives
Gather preliminary information
Exploratory
to define problems and suggest
Research
hypothesis
Describe marketing problems,
situations or markets, such as
Descriptive the market potential for a
Research product or the demographics
and attitudes of consumers
Test hypothesis about the
Casual Research
cause-and-effect relationships
Developing the research plan for
collecting information
Sources of data collection
Information collected for
the specific purpose at hand
Observational research
Survey Research
Primary Data
Experimental Research
Conducted primarily via
mail, telephone, interviews
and online
Information collected for the
specific purpose at hand
Observational research
Secondary Data Survey Research
Experimental Research
Conducted primarily via mail,
telephone, interviews and
online
 Conducting marketing research

Marketing research Function that links the consumer, customer and public to the marketer through
information information used to identify and define marketing opportunities and problems

Marketing research firms fall into three categories:

1. Syndicated-service research firms These firms gather consumer and trade information, which they sell for
fee. Ex: Nielsen company, Kantar Group and IRI
2. Custom marketing research firms These firms are hired to carry out specific projects. They design the study
and report the findings
3. Specialty-line marketing research firms These firms provide specialized research services

Online research
Pros Cons
Online research is inexpensive Samples can be small and skewed
Online research is expansive Online panels and communities can suffer
Online research is fast excessive turnover
Responses tend to be honest and Online market research can suffer
thoughtful technological problems and
Online research is versatile inconsistencies - Nikhila G (PGP/20/208)
 The marketing research process

Make the
decision
Present the
findings
Analyze the
information
Collect the
information
Develop the
research
Define the plan
problem and
research
objectives

- Nikhila G (PGP/20/208)
 Develop the research plan

Data sources Research approaches Sampling plan Contact methods

Primary data Observational Sampling unit Mail contacts

Secondary data research Whom should we Telephone contacts
Focus group research survey? Personal contacts
Survey research Sample size How Online contacts
Behavioral research many people should
we survey?
Research
instruments Sampling procedure
How should we
Technological
choose the
devices
respondents?
- Nikhila G (PGP/20/208)
 Measuring marketing productivity

Scientific method Observation, hypothesis, prediction, and testing

Research creativity Be innovative and focused on results that matter most

Multiple methods Dont get hooked on one method as the best or only way to do research

Interdependence of The research results (data) is limited by the research method. Dont be
models and data tempted to read too much into the results

Value and cost of It is easy to determine the cost of research, but the results have to be
valuable enough so that management will make decisions based on the
information the results. Stop doing research once this threshold has been reached

Healthy skepticism Be alert to flaws and blind acceptance of myths or urban legends

Dont mix-up marketing research with lead development or other sales

Ethical marketing related activities

- Nikhila G (PGP/20/208)