Marketing Management

Marketing Management. Welcome to.

Course Learning Outcomes. By the end of this course, you will be able to: Understanding Marketing Fundamentals: Students will demonstrate a comprehensive understanding of marketing concepts, including its definition, scope, historical evolution, and the distinction between marketing and selling. Analyzing Market Environment: Students will be able to analyze microenvironment and macroenvironment factors that influence marketing decisions, employing tools such as SWOT analysis and PESTEL analysis to assess internal and external business environments. Exploring Consumer Behavior: Students will gain insights into consumer behavior, including cultural, social, personal, and psychological factors that impact purchasing decisions. They will also comprehend the buyer decision process, segmentation, targeting, and positioning concepts. Managing Products and Brands: Students will learn to classify and manage products based on their life cycle stages, understand the new product development process, and recognize the significance of branding, brand equity, and brand loyalty in modern marketing strategies. Navigating E-Business Strategies: Students will grasp the fundamentals of e-business and e-commerce, explore online business models, formulate e-business strategies, and comprehend the legal and ethical considerations associated with e-business practices..

Welcome to Module 1. After the end of this Module 1 Introduction to Marketing, you will learn about • Definition and scope of marketing • Marketing history and evolution • Marketing vs. selling • Marketing philosophy and societal marketing concept.

Introduction to Marketing. Marketing is the strategic process of creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. It serves as a bridge between businesses and their target audiences, aiming to satisfy customer needs and generate profitable outcomes. At its core, marketing involves understanding customer preferences, analyzing market trends, and crafting strategies to effectively promote products or services. The concept of marketing has evolved over time from mere product promotion to a holistic approach that encompasses customer relationship management, branding, market research, and communication. In today's dynamic business landscape, successful marketing strategies consider various factors, including cultural influences, technological advancements, competitive forces, and economic conditions..

Let’s start with 1.1 Definition and scope of marketing.

3. Creating Value: Successful marketing goes beyond the product itself, focusing on the value it offers to customers. Businesses highlight unique selling propositions (USPs) that differentiate their products from competitors. For instance, Coca-Cola emphasizes its refreshing taste and emotional connections in its marketing campaigns to create value beyond the beverage itself. 4. Promotion and Communication: Marketing involves crafting compelling messages and strategies to promote products or services. This includes advertising, public relations, social media, and other communication channels. Nike's "Just Do It" campaign resonates with consumers' aspirations for self-improvement, connecting emotionally and driving brand loyalty. 5. Distribution and Delivery: Efficient distribution channels ensure that products reach the right customers at the right time. Marketing determines optimal distribution strategies, whether through retail outlets, e-commerce platforms, or direct sales. Amazon's vast distribution network ensures timely delivery, enhancing the customer experience. 6. Price Determination: Setting the right price is crucial in attracting customers while generating profit. Marketing considers factors such as production costs, competition, and perceived value to determine pricing strategies. Luxury brands like Louis Vuitton use premium pricing to maintain exclusivity and perceived quality..

7. Market Segmentation and Targeting: Markets are diverse, and marketing involves segmenting them based on characteristics like demographics, psychographics, and behaviors. This segmentation enables businesses to tailor their strategies for different customer segments. McDonald's tailors its menus and promotions to cater to different customer groups. 8. Customer Relationship Management (CRM): Building strong customer relationships is essential for long-term success. Marketing includes maintaining regular interactions, addressing customer concerns, and creating loyalty programs. Starbucks' rewards program fosters customer loyalty by offering personalized rewards and experiences. 9. Innovation and Adaptation: The marketing landscape constantly evolves due to technological advancements and changing consumer behaviors. Marketers must be agile, embracing innovation and adapting strategies to stay relevant. The rise of influencer marketing in the beauty industry is a prime example of adapting to new communication channels..

Moving on to 1.2 Marketing history and evolution.

The Rise of Branding: As markets expanded, businesses sought ways to stand out. This led to the rise of branding in the late 19th century. Brands like Coca-Cola and Ivory Soap established identities that resonated with consumers, transcending mere products. Advertising agencies gained prominence, refining the art of persuasion through memorable slogans and imagery. The Marketing Concept Emerges: The mid-20th century witnessed a shift towards the marketing concept – the idea that businesses should focus on understanding and meeting customer needs. The post-World War II economic boom led to increased competition, compelling companies to differentiate themselves by offering products that satisfied specific consumer desires. Market research gained importance as businesses sought insights to guide their strategies. The Digital Revolution: The late 20th century brought the digital revolution, altering the marketing landscape forever. The advent of the internet transformed how businesses reached consumers. Email marketing, websites, and online advertising paved the way for new ways of engagement. Amazon, founded in 1994, exemplified the potential of e-commerce, enabling customers to shop from the comfort of their homes. The Age of Data and Personalization: As technology advanced, so did the ability to collect and analyze vast amounts of consumer data. This heralded the age of data-driven marketing. Businesses began tailoring their strategies to individual preferences, creating personalized experiences. The rise of social media platforms like Facebook and Twitter allowed brands to engage directly with consumers in real-time, fostering relationships..

Innovations in Digital Marketing: The 21st century saw digital marketing expand further. Search engine optimization (SEO), pay-per-click (PPC) advertising, and content marketing became crucial for online visibility. Social media platforms evolved into powerful marketing tools, allowing brands to target specific demographics and create interactive campaigns. Influencer marketing also gained traction, harnessing the influence of individuals with substantial online followings. The Experience Economy: Today's marketing landscape is characterized by the experience economy. Consumers seek memorable, immersive interactions with brands. Businesses focus on delivering seamless customer journeys, whether through captivating websites, augmented reality experiences, or exceptional customer service. Apple's sleek retail stores and Disney's theme parks are prime examples of businesses embracing the experience-centric approach. Sustainability and Ethical Marketing: Recent years have seen a growing emphasis on sustainability and ethical marketing. Consumers are increasingly conscious of a brand's social and environmental impact. Businesses that align with values like sustainability, diversity, and ethical sourcing resonate more with consumers who prioritize these issues..

Continuing to 1.3 Marketing vs. selling. Defining Marketing and Selling: Marketing: At its core, marketing is a strategic process that encompasses a range of activities aimed at understanding, creating, communicating, and delivering value to customers. It involves crafting a compelling brand identity, analyzing consumer needs, and formulating strategies to promote products or services in a way that resonates with the target audience. Selling: Selling, on the other hand, is the transactional act of exchanging a product or service for money. It's the final step in the process, where the focus is on persuading potential customers to make a purchase. Selling involves direct interaction with customers, presenting the features and benefits of a product, and closing the deal..

Distinguishing Characteristics: 1. Focus: • Marketing: Marketing has a broader focus on creating customer value and building relationships. It involves understanding consumer needs, segmenting the market, and developing strategies to fulfill those needs. The goal is to create demand and awareness, often long before a product is available for purchase. • Selling: Selling is more focused on closing individual transactions. It centers on convincing a customer to make a purchase based on the immediate benefits of the product or service. The focus is on achieving sales targets and generating revenue. 2. Timeline: • Marketing: Marketing activities occur throughout the entire customer journey, from creating awareness to post-purchase engagement. It's a continuous process that aims to build a lasting relationship between the brand and the customer. • Selling: Selling takes place at the final stages of the customer journey, when the potential buyer has shown interest and is considering making a purchase. It's the point where negotiations and transactions occur. 3. Approach: • Marketing: Marketing employs a customer-centric approach, seeking to understand customer needs and tailor offerings to meet those needs. It involves storytelling, brand building, and engagement to create emotional connections with consumers. • Selling: Selling is more product-centric, emphasizing the features and benefits of the product or service. It often involves persuasive techniques, such as demonstrating how the product can solve a specific problem or fulfill a need..

Real-World Examples: 1. Apple: • Marketing: Apple's marketing campaigns focus on creating a unique brand identity that aligns with innovation, elegance, and creativity. Their "Think Different" campaign showcased this, highlighting the brand's values and ethos. • Selling: Apple's sales approach is customer-centric. Apple Store employees engage in personalized consultations, explaining product features that cater to specific customer needs. This approach builds upon the emotional connection established through marketing efforts. 2. Coca-Cola: • Marketing: Coca-Cola's marketing centers around creating emotional associations with happiness, joy, and sharing moments. Their holiday-themed ads evoke nostalgia and a sense of togetherness. • Selling: The selling aspect involves product placement and promotions at points of sale. When consumers encounter Coca-Cola in stores or restaurants, the marketing efforts contribute to the familiarity and positive associations that lead to purchases. 3. Amazon: • Marketing: Amazon's marketing strategy emphasizes convenience, variety, and a seamless online shopping experience. Their personalized recommendations and easy-to-use website design contribute to their brand's customer-centric image. • Selling: The selling aspect is evident in Amazon's user-friendly interface that guides customers through the purchasing process, making transactions effortless and efficient..

We have come to 1.4 Marketing philosophy and societal marketing concept.

3. Market Orientation: Market-oriented businesses put customers at the core of their strategy. They seek to understand customer needs and preferences and tailor their offerings accordingly. This approach promotes long-term relationships and customer loyalty. 4. Societal Orientation: The societal marketing concept extends the market orientation to include broader societal concerns. It goes beyond customer needs and considers the well-being of society and the environment in decision-making. Societal Marketing Concept: Balancing Profits and Ethics The societal marketing concept was first introduced in the 1970s as a response to growing concerns about environmental degradation, consumerism, and social issues. It emphasizes the need for businesses to not only satisfy customer wants but also contribute to the welfare of society. The concept aligns with a long-term view that balances profit-making with ethical and social responsibility..

Key Principles of the Societal Marketing Concept: 1. Consumer Well-Being: The central tenet of the societal marketing concept is to ensure consumer well-being. It encourages businesses to offer products that enhance the quality of life for customers. 2. Societal Well-Being: Beyond consumers, the concept considers the broader societal impact of business activities. It seeks to minimize negative effects on society, such as pollution, exploitation, and health risks. 3. Long-Term Sustainability: The societal marketing concept promotes sustainable business practices that ensure the well-being of current and future generations. This involves using resources responsibly and avoiding practices that deplete natural resources..

Implications and Real-World Examples: 1. Patagonia: • Marketing Philosophy: Patagonia, an outdoor apparel company, embodies a market-oriented philosophy. They focus on creating high-quality products that cater to the needs of outdoor enthusiasts, fostering customer loyalty. • Societal Marketing Concept: Patagonia takes societal responsibility seriously. They advocate for environmental causes, encourage customers to repair products rather than replace them, and donate a portion of profits to environmental initiatives. Their "Don't Buy This Jacket" campaign challenged consumerism and highlighted the importance of reducing waste. 2. TOMS: • Marketing Philosophy: TOMS, known for its One for One model, has a market-oriented philosophy that prioritizes customer needs. They offer stylish shoes and eyewear while creating a sense of social impact. • Societal Marketing Concept: TOMS' societal marketing concept is evident in its giving model. For every pair of shoes sold, TOMS donates a pair to a child in need. This approach aligns profit-making with the well-being of disadvantaged communities, blending business success with social responsibility..

We have come to 1.5 Marketing Mix. Product: The first "P" in the marketing mix refers to the product or service a company offers to the market. This includes not only the physical product but also its features, design, quality, brand, and packaging. Companies need to ensure their product fulfills customer needs, is distinguishable from competitors, and creates value. Product development involves understanding customer desires, innovating to meet changing preferences, and maintaining consistent quality. Price: The second "P" relates to pricing strategies. Pricing plays a crucial role in shaping consumer perceptions, demand, and profitability. Companies must determine pricing objectives, considering factors such as cost, competition, and perceived value. Pricing strategies include cost-plus pricing, value-based pricing, skimming, penetration, and psychological pricing. The right pricing strategy depends on factors like market positioning, target audience, and product lifecycle stage..

Place: Also known as distribution, "place" involves deciding how products reach the target market. This aspect considers channels of distribution, such as wholesalers, retailers, and e-commerce platforms, as well as the physical locations where products are available. Efficient distribution ensures products are accessible to customers at the right time and place. Companies must choose the most suitable distribution channels to ensure products are available to customers conveniently. Promotion: The final "P" encompasses promotional activities aimed at creating awareness, generating interest, and persuading consumers to buy the product. Promotion includes advertising, sales promotions, public relations, personal selling, and direct marketing. Effective promotion communicates the product's value proposition and benefits, differentiates it from competitors, and influences consumer behavior. Successful promotion strategies align with the target audience's preferences and the overall marketing message. These extensions are particularly relevant in service-oriented industries. • People: In service industries, the people who interact with customers play a vital role in customer satisfaction and experience. This includes employees, customer service representatives, and other personnel involved in delivering the service. • Process: Refers to the procedures, systems, and methods used to deliver the product or service to the customer. A streamlined and efficient process contributes to customer satisfaction and operational effectiveness. • Physical Evidence: Especially relevant in service industries, physical evidence represents the tangible elements that support the service delivery, such as the appearance of the location, facilities, branding, and any tangible materials..

Let’s discuss a Case Study on Coca-Cola's Marketing Triumph.

Strategic Marketing Initiatives: 1. Brand Identity and Storytelling: Coca-Cola's branding has been consistently centered around positivity, happiness, and sharing moments of joy. Their iconic red logo and scripted font became synonymous with the brand. The "Share a Coke" campaign personalized bottles with individual names, fostering a sense of connection among consumers. 2. Emotional Connections: Coca-Cola's marketing focuses on evoking emotions, aiming to associate the brand with special occasions, celebrations, and happiness. Their annual holiday campaigns featuring Santa Claus have become part of global Christmas traditions. 3. Global Localization: While maintaining a consistent brand identity, Coca-Cola adapts its marketing to resonate with local cultures. Their "Open Happiness" campaign took a universal approach, but they also customize campaigns to reflect cultural nuances in different regions. 4. Innovative Marketing Channels: Coca-Cola embraced emerging media channels to engage consumers. Their "Happiness Machine" video, where a vending machine dispensed unexpected surprises, went viral on social media, reinforcing the brand's commitment to spreading happiness..

Impact and Success: Coca-Cola's strategic marketing efforts have yielded remarkable results: 1. Global Reach: Coca-Cola operates in more than 200 countries, making it one of the most recognizable and widely distributed brands worldwide. 2. Brand Value: Coca-Cola consistently ranks among the world's most valuable brands, thanks to its strong brand equity and customer loyalty. 3. Cultural Icon: The brand has woven itself into the fabric of global culture, shaping how people celebrate and share moments of joy. 4. Emotional Resonance: Coca-Cola's emotional marketing approach has created a strong emotional bond between the brand and its consumers, fostering long-term loyalty..

Key Takeaways: 1. Emotion Drives Engagement: Coca-Cola's focus on evoking emotions and creating positive associations has been pivotal in connecting with consumers on a deeper level. 2. Consistent Brand Identity: Maintaining a consistent brand identity while adapting to local cultures showcases the brand's flexibility without diluting its core message. 3. Innovation in Marketing Channels: Embracing new media channels and technology has allowed Coca-Cola to remain relevant and engage with a younger audience. 4. Customer-Centric Approach: Coca-Cola's campaigns often involve customer participation, fostering a sense of ownership and belonging..

Conclusion: Coca-Cola's success story exemplifies the principles of marketing introduced in Module 1. By creating a strong brand identity, establishing emotional connections, and adapting to changing times, Coca-Cola has achieved global dominance while remaining a symbol of happiness and celebration. This case study underscores the enduring value of effective marketing strategies in creating lasting impressions and forging strong consumer relationships..

Glossary of Key Terms- Module 1. 1. Marketing: The process of creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. 2. Market: The potential group of customers or consumers who share a particular need or want for a product or service. 3. Customer Segmentation: Dividing the market into distinct groups of customers with similar characteristics, needs, or behaviors. 4. Target Market: The specific group of customers that a company aims to serve with its products or services. 5. Value Proposition: The unique benefits and value that a product or service offers to customers compared to alternatives in the market. 6. Market Orientation: A business approach that prioritizes understanding and meeting customer needs and preferences. 7. Marketing Mix (4Ps): A set of marketing tools that a company uses to pursue its marketing objectives: Product, Price, Place, and Promotion..

8. Consumer Behavior: The study of how individuals, groups, or organizations select, buy, use, and dispose of products, services, ideas, or experiences. 9. Market Research: The systematic collection, analysis, and interpretation of data relevant to a company's market, customers, and competition. 10. Competitive Analysis: Evaluating the strengths and weaknesses of competitors to identify opportunities and threats in the market. 11. SWOT Analysis: An analysis of an organization's internal strengths and weaknesses, and external opportunities and threats. 12. Marketing Strategy: The overall plan outlining a company's goals and objectives, target market, value proposition, and marketing mix decisions. 13. Positioning: The way a product or brand is perceived in the minds of consumers in relation to competitors..

14. Segmentation: The process of dividing a larger market into smaller, more manageable groups based on shared characteristics. 15. Brand: A unique name, symbol, design, or combination thereof that identifies and distinguishes a product, service, or company. 16. Marketing Communication: The various strategies and tactics used to communicate with target customers and promote products or services. 17. Market Penetration: A growth strategy focused on increasing sales of existing products within the current market. 18. Marketing Channels: The pathways through which products or services reach consumers, including wholesalers, retailers, and online platforms. 19. Value Chain: The series of activities that a company undertakes to create, produce, market, and deliver its products or services to customers. 20. Market Share: The portion of a market's total sales that a particular company or brand captures within a specific time period..

Test your Knowledge, with the following Multiple Choice Questions.

Answer is b) Creating customer value.

Question 2) Marketing is defined as: a) Selling products to customers b) Advertising and promotion activities c) Exchanging offerings for money d) Creating, communicating, delivering, and exchanging value.

Answer is d) Creating, communicating, delivering, and exchanging value.

Question 3) Which era of marketing history focused on producing goods without much concern for customer needs? a) Production era b) Sales era c) Marketing era d) Relationship era.

Answer is: a) Production era.

Question 4) Marketing orientation emphasizes: a) Maximizing profits through aggressive sales tactics b) Focusing solely on product quality and features c) Understanding and satisfying customer needs and wants d) Ignoring competition and market trends.

Answer is: c) Understanding and satisfying customer needs and wants.

Question 5) What distinguishes marketing from selling? a) Marketing focuses on long-term customer relationships, while selling is transactional. b) Marketing focuses on persuading customers, while selling focuses on product development. c) Marketing focuses on minimizing costs, while selling focuses on generating revenue. d) Marketing focuses on production, while selling focuses on distribution..

Answer is: a) Marketing focuses on long-term customer relationships, while selling is transactional.

Question 6) Which marketing philosophy focuses on the belief that a product should meet the needs and wants of target customers? a) Production orientation b) Sales orientation c) Product orientation d) Marketing orientation.

Answer is: c) Product orientation.

Question 7) The societal marketing concept emphasizes: a) Maximizing profits regardless of societal impact b) Meeting only the needs of the target market c) Balancing company profits with societal well-being d) Focusing solely on short-term financial gains.

Answer is: c) Balancing company profits with societal well-being.

Question 8) The practice of understanding customer needs and creating products to meet those needs is called: a) Sales orientation b) Selling concept c) Marketing concept d) Production orientation.

Answer is: c) Marketing concept.

Question 9) Which era in marketing history saw businesses focus on aggressive promotion and persuasion to increase sales? a) Sales era b) Marketing era c) Relationship era d) Production era.

Answer is: a) Sales era.

Question 10) What does the term "value proposition" refer to? a) The cost of a product or service b) The unique benefits a product offers to customers c) The total revenue generated by a marketing campaign d) The place where products are sold.

Answer is: b) The unique benefits a product offers to customers.

Assignment Style Question. Situation 1: John is the owner of a traditional bookstore facing declining sales in recent years due to online competitors. He believes that his personal customer service and curated selection can set him apart. How can John's understanding of marketing concepts help him revitalize his business and attract customers in this digital age? Situation 2: A tech startup has developed a revolutionary new gadget with advanced features. They are now deciding on their marketing approach. Should they focus solely on the product's features, or should they consider a broader strategy that aligns with customer needs and preferences? How could an effective marketing philosophy influence their decision-making process?.

End of Module 1. Thank you for watching!.