Course Objectives

• A broad overview of marketing as a discipline, the

basic concepts, marketing practices, and
terminology, and explore marketing’s relationship
with other functions of the organization

• An understanding of marketing environment,

marketing information, basics of buyer behavior, how
value is created and delivered to the customer and
tools and techniques for market analysis particularly
competitor analysis
 Course Objectives
• Various facets of market segmentation,
differentiation and positioning, product, services and
branding strategy, new product development and
product lifecycles.

• An opportunity for presenting and defending their

own analysis (both written and verbal), and for
critically examining and discussing the analysis done
by other fellow students.
 I-Defining Marketing for the New
Realities
• The value of marketing
• The scope of marketing
• Core marketing concepts
• The new marketing realities
• Company orientation towards the
marketplace
II-Developing Marketing Strategies
and Plans
• Marketing and customer value
• Corporate and division strategic
planning
• Business unit strategic planning
• The nature and contents of a marketing
plan
 III-Creating Long- Term Loyalty
Relationships
• Building customer value
• satisfaction and loyalty
• Maximizing customer lifetime value
• Cultivating customer relationships
 IV- Collecting Information and
Forecasting Demand

• Components of a modern marketing

information system
• Marketing intelligence
• Analyzing the macro environment
• Forecasting and demand measurement
V- Conducting Marketing Research

• The scope of marketing research

• The marketing research process
• Measuring marketing productivity
VI- Analyzing Consumer Markets

• Factors influencing consumer behavior

• Key psychological processes
• Buying decision process
• Behavioral decision theory and
behavioral economics
 VII- Analyzing Business Markets
• Understanding organizational buying
• The purchasing/procurement process
• stages in the buying process
• Developing effective business to
business marketing programs
VIII- Identifying Market Segments
and Targets
• Bases for segmenting consumer
markets
• Segmentation of business markets
• Market targeting
• Effective segmentation criteria
IX- Crafting the Brand Positioning

• Developing a brand positioning

• Choosing a competitive frame of
reference
• Establishing a brand positioning
 X- Creating Brand Equity

• Building, measuring and managing

brand equity
• Devising a branding strategy
• Customer equity
 XI- Addressing Competition and
Driving Growth
• Growth strategies
• Competitive strategies for market
leaders
• Product life-cycle marketing strategies
 XII- Setting Product strategy

• Product Characteristics &

Classifications
• Differentiation
• Product & Brand Relationships
• Product mix
• Co-branding and ingredient branding
• EVALUATION PARAMETERS:
• Mid Term Test 20 marks
• End Term Examination 40 marks
• Internal Assessment 40 marks

• Internal Assessment break-up

• Case Presentation 10 marks

• Live Project 20 marks
• Class Assignment 05 marks
• Quiz 05 marks
 Text Books
• Philip Kotler, Kevin Keller, (2016), “Marketing
Management”, 15th edition, Pearson
Education

•V.S. Ramaswamy and Namakumari S,

Marketing Management: Global Perspective,
Indian Context, 4th edition 2010, Macmillan India
•Lamb, Hair, Sharma & McDaniel, MKTG : A
South Asian Perspective , Cengage Learning
Fundamentals of
Marketing
Management
 Presentation Objectives
• What is marketing?
• What is the scope of marketing?
• What are some fundamental marketing
concepts?
• How has marketing management
changed?
• What are the tasks necessary for
successful marketing management?
 What is Marketing?

Marketing is an organizational function

and a set of processes for creating,
communicating, and delivering value
to customers and for managing
customer relationships
in ways that benefit the
organization and its stakeholders.
Development of the
Marketing Concept
 Production Orientation

• From the 1850s to the late 1920s

• Companies focus on production
capabilities
• Consumer demand exceeded supply
 Sales Orientation

• From the 1930s to the mid 1950s

• Focus on selling
• Supply exceeded customer demand
 Marketing Concept
• 1950s to current - Focus on the
customer!
• Determine the needs and wants of
specific target markets
• Deliver satisfaction better than
competition
 Understand Marketing by Checking ‘What does it do’
• Meeting Human/Customer Needs

 Marketing must know

• Who are our customers?
• What are their needs?
• What must we do to meet their needs?

 Meeting latent and future needs

• Marketing searches/spots/visualises the latent and future
needs of customers.

 Meeting needs at a profit

• Marketing meets customer needs at a profit.
 Understand Marketing by Checking ‘What does it do’

• Being Empathetic to Customers

 Generating customer satisfaction

• Product/Service
• Ambience associated with product/service
• Speed of response

 Measuring customer satisfaction

• Satisfaction generated may fall short of or match or exceed
the expectations of customers.

 Is it then correct to assume Marketing = Customers?

 Understand Marketing by Checking ‘What does it do’

• What Else is Embedded in Marketing?

 Demand
• Generating the demand
• Meeting the demand

 Competition
• Understand objectives and strategies of competitors.
• Anticipate actions and reaction patterns of competitors.
 Understand Marketing by Checking ‘What does it do’

• What is Meant by ‘Market’?

 People/consumers with purchasing power
 Demand

• Marketing as a Process
 Is a process of exchange
 Means offering something and getting something in return
 Involves a buyer and a seller.
 The transaction takes place as per agreed upon conditions
 The transaction succeeds when both parties are satisfied.
 What is Marketing Management?

Marketing management is the

art and science
of choosing target markets
and getting, keeping, and growing
customers through
creating, delivering, and communicating
superior customer value.
A Simple Marketing System
Structure of Flows in a Modern Exchange
Economy
 Key Markets
Consumer Markets Global Markets

Business Markets Nonprofit/ Government Markets

 Holistic Marketing Concept

• Holistic Marketing Concept is based on

the development, design and
implementation of marketing programs,
processes, and activities that
recognizes their interdependencies
• Holistic Marketing recognizes that
“everything matters” in marketing
Holistic Marketing Dimensions

Performance
Marketing
 Internal Marketing

Internal marketing is the task of

hiring, training, and motivating
employees who want to serve
customers well.
Integrated Marketing (Marketing
Mix)
4 P’s of Marketing
Old Four Ps New Four Ps

Product People

Price Processes

Place Programs

Promotion Performance
 The New Four Ps
• People: reflect internal marketing and the fact that
employees are critical to marketing success.

• Processes: reflect all the creativity, discipline, and

structure brought to marketing management.

• Programs: reflect all of the firm’s consumer-directed

activities.

• Performance: is holistic marketing to capture the range of

possible outcomes/measures that have financial and non-
financial implications, and implications beyond the
company itself.
 Buyer’s point of View

• Solution: How can i solve my problem?

• Information: Where can i learn more
about it?
• Value: What is my total sacrifice to get
the solution?
• Access: Where can i find it?
 Performance Marketing

• Financial Accountability
• Social Responsibility Marketing
 Relationship Marketing

• It aims to build mutually long term

relationships with key constituents in order to
earn and retain their business
Developing Marketing
Strategies and Plans
 Objectives

• How does marketing affect customer

value?
• How is strategic planning carried out at
different levels of the organization?
• What does a marketing plan include?
Three V’s Approach to Marketing

Define
Define the
the value
value segment
segment

Define
Define the
the value
value proposition
proposition

Define
Define the
the value
value network
network
 What is the Value Chain?

The value chain is a tool for identifying

ways to create more customer value
because every firm is a synthesis of
primary and support activities
performed to design, produce, market,
deliver, and support its product.
 Core Business Processes

• Market-Sensing Process
• New-offering realization process
• Customer acquisition process
• Customer relationship management
process
• Fulfillment management process
 Market-Sensing Process

• All the activities in gathering market

intelligence, disseminating it within the
organization, and acting on the
information
New-Offering Realization Process

• All the activities in researching,

developing and launching new high
quality offering quickly and within the
budget
 Customer acquisition process

• All the activities in defining target

markets and prospecting the new
customers
Customer Relationship Management
Process
• All the activities in building deeper
understanding, relationships, and
offerings to individuals customers
Fulfillment Management Process

• All the activities in receiving and

approving orders, shipping the goods
on time and collecting payment
 Core Competencies

• The main strengths or strategic

advantages of a business. Core
competencies are the combination of
pooled knowledge and technical
capacities that allow a business to be
competitive in the marketplace.
Characteristics of Core Competencies

• A source of competitive advantage

• Difficult to imitate
 What is a Marketing Plan?

A marketing plan is the central

instrument for directing and
coordinating the marketing effort.

It operates at a
strategic and tactical level.
 Levels of a Marketing Plan

• Strategic • Tactical
• Target marketing • Promotion
decisions • Merchandising
• Value proposition • Service
• Analysis of
marketing
opportunities
Marketing Plan Contents

 Executive summary
 Table of contents
 Situation analysis
 Marketing strategy
 Financial projections
 Implementation controls
The Strategic Planning,
Implementation,
and Control Processes
 Corporate Planning/Corporate
headquarters
• Corporate headquarters is responsible
for designing a corporate strategic plan
to guide the whole enterprise
• Which business to start or eliminate
 Corporate Headquarters’
Planning Activities

• Define the corporate mission

• Establish strategic business units
(SBUs)
• Assign resources to each SBU
• Assess growth opportunities
 Good Mission Statements

Focus
Focus on
on limited
limited number
number of
of goals
goals

Stress
Stress major
major policies
policies and
and values
values

Define
Define major
major competitive
competitive spheres
spheres

Take
Take aa long-term
long-term view
view

Short,
Short, memorable,
memorable, meaningful
meaningful
 Infosys Technologies Limited

“To achieve our objectives in an environment

of fairness, honesty, and courtesy towards
our clients, employees, vendors, and society
at large.”
 Biocon

“To be an integrated biotechnology enterprise

of global distinction.”
 eBay

“We help people trade anything on earth.

We will continue to enhance the online
trading experiences of all—collectors,
dealers, small businesses, unique item
seekers, bargain hunters, opportunity
sellers, and browsers.”
 SBUs

An SBU is separately identifiable business;

have a distinct mission, have its own
executive team with profit responsibility
 Characteristics of SBUs

• It is a single business or collection of

related businesses
• It has its own set of competitors
• It has a leader responsible for strategic
planning and profitability
Assigning Resources to SBU’s
 Analyzing SBU’s ::
Analyzing SBU’s
Boston
Boston Consulting
Consulting Group
Group Approach
Approach

Relative Market Share

High Low
Stars Question
QuestionMarks
Market Growth Rate

Marks
High

• High growth & share ••High

Highgrowth,
growth,low
lowshare
share
• Profit potential ••Build
Build into Stars/ phaseout
into Stars/ phase out
• May need heavy ••Requires cash to hold
Requires cash to hold
investment to grow market
marketshare
share
Cash
CashCows
Cows Dogs
Dogs
••Low
Lowgrowth
growth&&share
Low

••Low
Lowgrowth,
growth,high
highshare
share share
••Established, successful ••Low profit potential
Low profit potential
Established, successful
SBU’s
SBU’s
••Produces
Producescash
cash
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Assumptions Of BCG
1. This matrix assumes that a larger
market share in a growth market leads
to profitability. An effort to obtain a
large market share in a slowly growing
market requires too much cash.

2. The higher the growth rate, the easier

to gain market share.
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9
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HUL Product Mix

The entire product range of HUL can be visualized in terms of the following of
the following segments:

• FOOD BRANDS
(KISSAN, ANNAPURNA, KNORR, KWALITY WALLS, BROKE BOND,
TAJ MAHAL)

• HOME CARE BRANDS

(SURF EXCEL, VIM, WHEEL, RIN, BLEACH, DOMEX)

• PERSONAL CARE BRANDS

(PEPSODENT, CLOSE UP, AXE, REXONA, SUNSILK, DOVE ,
LIFEBUOY, LIRIL, LUX, PEARS, FAIR & LOVELY, LAKME, PONDS,
VASELINE, ETC.)
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Growth And Market Share

7
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Market Growth Analysis

Figures are acc. To CII survey, braket are for previous figures.
7
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Market Share Analysis

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4
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BCG of HUL
Assessing growth opportunities
Assessing Growth Opportunities

• Assessing growth opportunities

includes planning new businesses,
downsizing, and terminate older
business
• Gap Analysis
The Strategic Planning Gap
 Intensive Growth

• Identify the opportunities to achieve

further growth within current business
Framework for Intensive Growth--Ansoff’s
Product-Market Expansion Grid

• Market penetration
• Market development
• Product development
• Diversification
 Strategies Suggested by Ansoff’s
Product-Market Expansion Grid
Current New
Products Products

1. Market- 3. Product-
Current Penetration development
Markets Strategy Strategy

2. Market- (Diversification
Development Strategy)
New
Strategy
Markets
 Market- Penetration Strategy

• Influence current customers to buy

more by showing benefits
• Attract competitor’s customers by
showing its competitive advantage
• Convince non users in current market
 Market development

• Attract Institutional customers

• Add new distribution channel
• Enter untapped domestic markets
(small towns, rural areas) and explore
export opportunities in the international
market
 Integrative Growth

• Identify the opportunities to build or

acquire businesses that are related to
current business
 Integrative Growth

• Backward Integration: Acquiring one or

more of its suppliers
• Forward Integration: Entering in
wholesaling or retiling
• Horizontal Integration: Acquiring one or
more of its competitors
 Diversification Growth

• Identify the opportunities to add

attractive business unrelated to current
business
 Diversification Growth
• Concentric Diversification: The company could
seek new products that have technological or
marketing synergies with existing product lines
appealing to a new group of customers
• Horizontal Diversification: The company can
develop new products that are technologically
unrelated to its current product line and could
appeal to current customers
• Conglomerate Diversification: The company
may seek new opportunities that have no relation
with its current technology, products, or market
 Business Unit
Strategic Planning Process
SWOT Analysis

Strengths

Weaknesses

Opportunities

Threats
 Goal Formulation

• Goals should be quantitative

• Goals should be realistic
• Objectives must be consistent
 Goal Setting

• S- Specific
• M- Measurable
• A- Action Oriented
• R- Realistic
• T- Time Bound
 Strategic Formulation:
Porter’s Generic Strategies

Overall Cost Leadership

Differentiation

Focus