Bachelor of Business Administration - Marketing Unit 1

Bachelor of Business Administration - Marketing Management - Unit 1

• Organization Structure: Every organization has different departments, including Production, HR, Marketing, and Finance.
• Marketing is the lifeblood of an organization, creating its image in the market.

Introduction to Marketing Management

• Marketing Management: Planning, implementing, and controlling marketing activities.
• Core Components: Identifying customer needs, understanding market trends, and developing strategies.
• Activities: Market research, product development, pricing, distribution, promotion, and CRM.
• Integration: Collaboration with other departments to align with organizational goals.
• Continuous Improvement: Monitoring metrics and adapting to market dynamics.

Why Marketing Management?

• Understanding customer needs through market research for tailored strategies.
• Creating value through differentiated products to drive revenue.
• Building brand awareness and reputation, fostering customer loyalty and trust.
• Generating demand through targeted campaigns, stimulating sales and facilitating exchange.
• Adapting to market dynamics by monitoring trends and analyzing competitors.
• Optimizing resource allocation, minimizing costs, maximizing revenue for sustainable financial performance.

Why Study Marketing Management?

• Versatile career opportunities in high-demand industries.
• Critical business function to understand consumer behavior.
• Strategic thinking and planning skills.
• Digital marketing skills, creativity, and innovation.
• Data-driven decision making and strong communication skills.
• Adaptability, lifelong learning, global perspective, and entrepreneurial skills.
• Networking opportunities that contribute to business growth.

Definition of Marketing Management

• According to the American Marketing Association, it's strategically planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to meet the goals of individuals and organizations.
• This includes strategic planning and execution of product/service.
• It's about meeting the goals of individuals and organizations.

Scope of Marketing Management

• Goods: Consumer products like electronics, clothing, and food items.
• Services: Banking, insurance, healthcare.
• People: Personal branding for celebrities, athletes, and influencers.
• Experiences: Events like concerts, travel, and theme parks.
• Events: Corporate events, trade shows, and conferences.
• Personalities: Branding for public figures and politicians.
• Places: Tourism marketing for cities, countries, and attractions.
• Properties: Real estate marketing for residential and commercial properties.
• Organizations: Non-profits, businesses, and educational institutions.
• Information: Educational content, news, and research.
• Ideas: Advocacy campaigns for social causes and movements.

Core Concepts of Marketing

• Exchange Concept: Transactional nature of marketing, overlooks consumer complexities.
• Production Concept: Emphasis on efficiency with neglect for quality, innovation, and satisfaction.
• Product Concept: Focus on quality, differentiation, and product innovation.
• Selling Concept: Driving sales aggressively with prioritizing short-term gains.
• Marketing Concept: Meeting customer needs and focusing on customer satisfaction and building relationships.
• Societal Concept: Integrating social and environmental responsibility into marketing.
• Relationship concept: Building long term relationships for mutual benefit.

Core Marketing Concepts Examples

• Exchange Concept: Every company is involved in this.
• Production Concept: Reliance Industries (mass production, efficiency).
• Product Concept: Amul (high-quality dairy and continuous innovation).
• Selling Concept: Eureka Forbes (aggressive tactics for promoting water purifiers).
• Marketing Concept: Maruti Suzuki (customer satisfaction, relationship building).
• Societal Concept: Tata Group (integrating social/environmental responsibility).
• Relationship Concept: HDFC Bank (building long-term relationships with customers.)

Understanding Needs, Wants, and Demand

• Needs: Basic requirements for survival (physiological: food, water, shelter, and clothing; psychological: belonging, esteem, self-actualization).
• Wants: Desires shaped by culture, social, and individual factors (influenced by lifestyle, preferences, experiences, and societal norms).
• Demand: Willingness and ability to purchase goods or services (influenced by product utility, price, availability, promotion, perceptions).

Customer Value & Satisfaction

• Customer Value: Perceived benefits versus total costs of acquiring and using a product or service (benefits: quality, features, convenience, brand image; costs: monetary price, time, effort, psychological costs).
• Designing products/services with superior benefits to attract and retain customers.
• Importance: Attract, retain, differentiate, and achieve sustainable competitive advantages.

Customer Satisfaction

• Definition: Measures the degree to which a product/service meets or exceeds expectations.
• Reflects: Subjective evaluation of overall experience (includes product performance, service quality, reliability, after-sales support.)
• Impact: High satisfaction leads to repeat purchases, positive referrals, and brand loyalty; low satisfaction can lead to defection and negative reviews.
• Monitoring: Surveys, feedback mechanisms, and analytics.
• Importance: Identifying areas for improvement and enhancing customer experience.

Functions of Marketing

• Understanding Consumer Needs: Conducting research to align offerings with preferences.
• Strategic Planning: Setting clear objectives and plans aligned with organizational goals.
• Product Development: Creating offerings informed by consumer insights.
• Standardization and Grading: Ensuring uniformity for informed choices.
• Packaging and Labeling: Enhancing visibility and appeal for consumer perception.
• Branding: Establishing credibility and recognition for consumer trust and loyalty.
• Customer Service: Providing comprehensive support for positive experiences and loyalty.
• Pricing: Determining strategies for product success and profitability.
• Promotion: Raising awareness and stimulating demand through various channels.
• Distribution: Efficient movement of goods to ensure timely availability.
• Transportation: Physical transportation based on market geography and needs.
• Warehousing: Facilitating storage for time utility and efficient supply management.

Eras in Marketing

• Production Era (Pre-1920s): Focus on maximizing production efficiency to meet demand (Mass production, assembly lines, belief that efficient production naturally creates a market. Example: Henry Ford).
• Product Era (1920s-1950s): Focus on product quality and innovation to attract customers (Emphasis on product features, design, and quality. Example: Coca-Cola, Kellogg's).
• Sales Era (1950s-1980s): Focus on aggressive sales promotions to drive demand (Dependence on sales techniques, regardless of customer needs. Example: Door-to-door sales, high-pressure tactics).
• Marketing Concept Era (1950s-Present): Focus on understanding and fulfilling customer needs (Customer-centric approach, market research, targeting. Example: Integration of market research, segmentation, targeted advertising).
• Societal Marketing Era (1980s-Present): Focus on addressing social issues and ethical responsibilities (Integrating social and environmental considerations into marketing. Example: CSR initiatives, cause-related marketing, sustainability).
• Relationship Marketing Era (1990s-Present): Focus on building and maintaining relationships with customers (Prioritizing customer relationships, retention, and loyalty. Example: Loyalty programs, personalized marketing, CRM systems).
• Digital Marketing Era (2000s-Present): Focus on leveraging digital technologies to promote products (Leveraging social media, search engines, e-commerce tools. Example: Google Ads, Facebook advertising, Amazon's recommendations).

Marketing Environment

• Encompasses internal (resources, structure) and external factors (customers, competitors).
• Influences customer responses and business growth.
• Benefits include insights into competitors, customer segments, future strategies, and trend evaluation.

Types of Marketing Environments

• Internal: Resources, values, systems, and processes within the organization, influencing the tasks and development of marketing campaigns.
• Micro: Relationships outside the organization (customers, suppliers, agencies), crucial for navigating competition and meeting customer needs.
• Macro: Broader market context (economic, socio-cultural, technological, regulatory factors and their indirect impact on businesses).

Marketing Mix

• Strategic tools forming a comprehensive plan.
• Origin: 4 P's (product, price, place, promotion).
• Expansion: Additional elements (people, packaging, process).
• Purpose: Framework for coordinating and optimizing marketing efforts to meet customer needs and achieve competitive advantage.

Role of Marketing Manager

• Strategic Planning: Developing strategies aligned with organizational objectives.
• Product Development: Conceptualizing, launching, and managing products/services.
• Market Segmentation: Identifying target segments and tailoring marketing efforts.
• Marketing Communications: Overseeing advertising, PR, and digital marketing.
• Brand Management: Maintaining brand integrity and reputation.
• Market Analysis: Monitoring trends and competitive activities, measuring performance metrics.
• Cross-Functional Collaboration: Aligning marketing efforts with business objectives.
• Customer Relationship Management: Building and nurturing customer relationships.

Explore the foundational concepts of Marketing Management in this quiz, including organizational structure and the core components of marketing activities. Understand the importance of market research, strategy development, and collaboration with other departments to achieve organizational goals.