Marketing Management: An Overview

Chapter 1: Marketing Management

• Marketing management involves decision-making, planning, and controlling marketing aspects within the marketing system.
• A manufacturer should focus on consumer needs, desires, requirements, and conveniences when designing or improving products.
• The product should fully satisfy the consumer.
• Features of the marketing concept include customer needs focus, consumer satisfaction, integrated functions, goal achievement, and innovation.
• Every organization aims to maximize consumer satisfaction by understanding consumer needs and designing appropriate products.
• The success of an organization directly correlates with consumer satisfaction.
• Innovation serves as a crucial tool for providing consumer satisfaction
• Innovative methods are essential for understanding consumers, designing appropriate products, and offering them to consumers.

Features of Marketing Management

• Marketing management is a managerial process involving planning, organizing, decision making, forecasting, directing, coordinating, and controlling.
• All marketing activities are consumer-centric, focusing on creating and retaining customers by satisfying their needs and wants.
• Marketing management involves converting potential customers into actual customers.
• Identification of consumer needs and wants is a fundamental function, requiring continuous data collection, analysis, and reporting.
• This process helps management understand consumer behavior and plan future actions.
• It involves planning and development of goods and services, with organizations constantly striving for innovation to meet evolving consumer demands.
• Marketing is more than just selling; it involves research, product development, pricing, distribution, customer relationship management, and after-sales service.
• Marketing structure depends on factors like the enterprise size, geographical coverage, product lines, and customer base.
• All marketing activities are rooted in overall organizational objectives, bridging the gap between profitability, sales maximization, and consumer satisfaction.
• The aim is to maximize sales volume and profit through effective communication about goods and services.
• Firms can provide information about products to customers through promotional and communication endeavors.
• Marketing management controls marketing activities, evaluates effectiveness, judges personnel efficiency, and takes corrective actions based on performance against standards.

Market Segmentation

• Market segmentation involves dividing customers into smaller groups based on characteristics such as age, income, personality, or behavior.
• These segments are used to optimize products and advertising strategies for different customer types.
• Market segmentation has these primary categories: demographic, firmographic, psychographic, and behavioral.
• Demographic segmentation classifies markets based on individual attributes like geography, gender, education, and income.
• Firmographic segmentation classifies markets based on company attributes like industry, location, employee count, and revenue.
• Psychographic segmentation is based on attitudes, aspirations, values, and lifestyle.
• Behavioral segmentation is based on behaviors like product usage and technology adoption.

Types of Market Segmentation

• Geographic segmentation focuses on creating target customer groups based on geographical boundaries, considering climate and regional differences.
• Demographic segmentation sorts markets by elements like age, education, income, family size, race, gender, occupation, and nationality.
• This is a commonly used form because product preferences and spending habits are impacted by these factors.
• Firmographic segmentation is similar to demographic, but looks specifically at company size and number of employees.
• Behavioral segmentation divides markets by behaviors and decision-making patterns such as purchase, consumption, lifestyle, and usage.
• Psychographic segmentation divides markets by lifestyle, values, opinions, and interests.

Marketing Mix

• The marketing mix is about having the right product, at the right place, and at the right time at the right price.
• The marketing mix is associated with the 4Ps of marketing, the 7Ps of service marketing, and the 4Cs theories.
• E. Jerome McCarthy created the Marketing 4Ps in the 1960s.
• The marketing 4Ps are the foundation of the idea of marketing mix.

Marketing 4Ps

• The product must satisfy the needs of the market, either tangible or intangible.
• During the product development phase, the marketer must do an extensive research on the life cycle of the product that they are creating.
• The price of the product is the amount that a customer pays.
• Marketers should consider the perceived value that the product offers, and consider such major pricing strategies as market penetration, skimming, or neutral pricing
• Placement or distribution involves positioning and distributing the product in an accessible location.
• Promotion is aimed at boosting brand recognition and sales.
• Promotion comprises sales organization, public relations, advertising, and sales promotion.

Marketing Mix 7Ps

• People includes those directly related to the business.
• Thorough research helps discover whether there are enough people in your target market that is in demand for certain types of products and services.
• A well-tailored process should be in place to minimize costs.
• The systems and processes of the organization affect the execution of the service.
• Physical evidence is the business presence and establishment.
• Physical evidence pertains also to how a business and it's products are perceived in the marketplace.

Marketing Mix 4Cs

• The 4Cs marketing model was developed by Robert F. Lauterborn in 1990.
• It is a modification of the 4Ps model.
• Cost includes cost of conscience or opportunity costs.
• Companies should carefully study consumer wants and needs.
• Marketers should aim to create an open dialogue with potential clients based on their needs and wants.
• Convenience involves strategically placing products for easy availability.

Marketing Research

• Marketing research entails the development, interpretation, and interaction of decision-oriented information to be utilized throughout the marketing process.
• Elements to create priority cannot simply be deduced from common knowledge. Rather, data must be collected and examined.
• The goal of marketing research is to ensure the facts and direction that managers need to make their essential marketing decisions
• There are three basic methods of market research: exploratory, descriptive, and causal.
• Exploratory research helps businesses discover new ideas and pursue market opportunities.
• Descriptive research deals with queries such as who, what, when, where and how type questions.
• Causal research is formal research and facilitates product managers to recognize problems and the causes of the problem.

Global market research

• Global marketing involves adjusting an enterprise's marketing strategies to adapt to the situations in other countries.
• Global market research brings clarity regarding going overseas, evaluating competitive strength, choosing the right market, understanding entry methods, and formulating marketing plans.
• Market research collects information about market size and trends, while marketing research covers a broader range of activities.
• Marketing research aids in decision-making and can minimize uncertainty.

Marketing and promotion strategies

• Marketing gets a business noticed by people who want its product or services.
• Key aspects for marketing are product, price, promotion, place, people, and processes

Marketing and promotion strategies: The six ‘Ps

• Product refers to the goods or services you are offering, taking into consideration factors such as packaging, labelling, branding and quality.
• Price influences profitability and competition, also affecting consumer perception of value.
• Promotion involves advertising and selling methods including website, blogging, e-newsletters, networking, and traditional media.
• Place pertains to distribution channels, including retail, wholesale, and online platforms.
• It is important to consider the target market and logistics.
• People include suppliers, distributors, wholesalers, stakeholders and employees.

Demand Forecasting

• Predicting future demand informs planning for challenges and appropriate actions.
• Demand forecasting has two major types, short run and long run.
• Steps include identifying forecasting method, predicting factors, acquiring data, and analyzing results.
• Tools include quantitative and qualitative techniques.

Quantitative Techniques

• Quantitative techniques can be used for short run and long run forecasting

Time Series Analysis

• Time series analysis has the components of seasonal variation, cyclical variation, random variation, and irregular variation.
• Methods to measure the components of time series are Semi Average Method, Moving Average Method, Method of Least Square.
• Econometrics method for forecasting is based on several factors.

Qualitative technique

• Buying Intention Survey Method includes surveys conducted regarding the product.
• Sales Force Opinion Method involves collecting different territorial sales demands are collected to forecast the demand of a product.

Chapter -2 PRODUCT MANAGEMENT

• Day-to-day tasks of product management professionals can include a wide variety of strategic and tactical duties.
• Product management involves conducting research, developing strategy, communicating plans, and coordinating development
• Product life cycle means various stages a product sees in its complete life span of introduction, growth, maturity, and decline.
• Product must be launched to the market while considering demand, acceptance, viability, consumer preference, technological development, and government policy.

Matrix

• Boston Consulting Group, the BCG matrix – also known as the Boston or growth share matrix – provides a framework for analyzing products according to growth and market share.
• When examining marketing growth, compare yourself to your largest competitor and think in terms of growth over the next three years.
• In the four-quadrant chart, market share is shown on the horizontal line and growth rate along the vertical line.

BCG Matrix Quadrants

• Stars are business units or products generating the most cash, advised to invest in.
• Cash cows are the leaders in the marketplace and generate more cash than they consume.

BCG Matrix Quadrants (cont.)

• Dogs have both a low market share and low growth rate, considered cash traps leading to divestiture.
• Question Marks have high growth prospects but a low market share; companies are advised to invest in question marks if the product has the potential for growth, or to sell if it does not.
• Four potential strategies to follow based on the results of your BCG matrix analysis Build, Hold, Harvest, and Divest.
• Product planning includes developing product concept, studying the market, product research, product introduction, and product life cycle.

Chapter 3: BRAND MANAGEMENT

• Brands are unique in many ways as they are characterized by an enormous amount of complexity, which results from the service attributes of the retailers as well as from the multiplicity of the brand attributes.
• Elements of branding are studied under the concepts of brand identity, brand image, brand position, and brand equity.
• Brand identity is how the brand strategist aspires to create or maintain.
• Brand Equity is one of the popular and widely used concepts in marketing and is because of the fact that several marketing researchers have concluded that brands are one of the most valuable assets that a company has.

Brand Equity Elements

• Financial: measures price premium that a brand holds over a generic product.
• Brand Extensions: takes benefits of brand awareness thus reducing the advertising expenditures and risk associated with new launch.
• Consumer-related: is the consumer's attitude strength toward the product associated with the brand.
• Brand differentiation is designed to ensures a brand stands out from their competitions'.

To Differentiate Your Brand

• Have a meaningful concept
• Consider Aesthetics
• Have a good On-Site User Experience
• Consider Accessibility and Smart & Adaptable Pricing
• Use of Emotions and a Different Style of Competition
• Be Caring of Customer Service
• Consider Segment-Specific Orientation
• Expanded Appeal
• Innovation and Redefine
• Consider Giving Something Back

How to Measure Brand Equity

• Customer knowledge of your products and services is an important part of brand equity.
• It is measured in surveys and focus groups, web traffic, search volume, and social mentions and reviews
• Consumer preference is the reason a customer may decide to travel further and spend more money to access a product or service they really like.
• Emotional connection and Brand value are ways to measure customer prefence.
• Brand equity is measured through Price premium over competition, average transaction value, Customer lifetime value, and Rate of sustained growth
• Tools for building are Improving your brand position,Telling your brand story, Improving your tools for international brand consistency, Using consumer and local marketer feedback to improve brand messaging.

Chapter 4- CONSUMER BUYING BEHAVIOR

• Consumer buying behavior is the decision-making process and actions influencing purchasing.
• Purchasing is based on emotions and reasoning.
• Freud's psychoanalytical theory discusses an unconscious nature of personality as a result of childhood conflicts.

Personality Theories

• The id is the source of psychic energy and seeks immediate gratification for biological and instinctual needs like hunger, sex, and self-preservation
• superego is the leash on the id and works against its impulses.
• Ego is the individual's self-concept and is the manifestation of objective reality as it develops after interaction with the external world.

Buyers

• Industrial (organizational) buyer
• Individual consumer
• Organization has distinctive features of being a formal organization related to cost.
• Joint decision-making process.
• Conflict occurs

Economic Man Model

• Follows the principle of maximum utility based on the law of diminishing marginal utility.
• Factors are Price Effect – Lower,Substituition, and Income
• Also, Post purchase behavior can be satisfied or dissatisfied.
• Marketing research Provides Basis For Proper Planning and Aides In Reducing Marketing Costs

Data Collection Methods

• Survey Method or Questionnaire Method: said as communication method as the data are collected by communicating with the respondents
• Observation Method: This is another type of widely used method for primary data collection
• Experimental Method: Under, a cause and effect relationship is established
• Panel Method: hybrid method used to collect data from the panel

Integrated Marketing Communications (IMC)

• Integrated Marketing Communications or IMC involve coordinating the various promotional elements and other marketing activities that communicate with the firm's customers.
• The communications objective are referred to as the promotional mix, including channels like advertising, sales promotion, PR, personal selling, events etc.
• Elements include advertising, public relations, personal selling, public relations

Chapter 5: SALES

Personal selling

• Personal selling is where businesses use people (the "sales force") to sell the product after meeting face-to-face with the customer.
• A good example of personal selling is found in department stores on the perfume and cosmetic counters.

Selling Process

• Professional selling involves a series of seven distinct steps.
• Prospecting is finding and qualifying potential customers based on specific criteria.
• Building a long-term relationship with your customer for purposes of repeat sales.
• Example include line sales organization, line and staff sales organization, functional sales organization, committee sales organization.

Sales Forecast

• A forecast estimates revenues, informing strategic decisions and requiring accurate data.
• A custom forecast model, which is the reliance on a combination of all the above mentioned models is best because it also makes use of lead scoring.
• A sales strategy involves understanding your unique selling points, identifying your target market, developing your pitch, and identifying the best sales channels

The importance of Sales Strategy

• A carefully-crafted sales strategy is critical to the survival and growth of your company.
• Components to cover are to have a Company vision, Revenue goals, Ideal customer profile,Marketing strategy, and Action plan.

Sales promotion

• It is designed to be used as a short-term tactic to boost sales – it is rarely suitable as a method of building long-term customer loyalty.
• May include money off coupons, a voucher, a free gifts, and a point of sale.

Advantages of Sales Promotion

• A sales effect that is only on a short-term
• May damage brand image

Sakes monitoring System

• Helps facilitate the activities within your sales and tracks leads
• Sales helps sales teams focus less on manual tasks so they can do what they do best sell
• This includes sales automation, a visual sales process, remote selling capabilities

Sales Reporting

• A sales report, or sales analysis report, gives an overview of the state of the sales activities within a company
• It gives a snapshot of the company's exercise at a specific moment in time to assess the situation and determine the best decision to make and the type of action to undertake.
• To make it, to find 4 steps are to provide aContext, Create a list define your audience, to define the purpose, to use the right Data.

Chapter 6: RETAIL MARKETING

• Marketing creates awareness about products and services among customers for selling It consists of:
• Visual Merchandising: developing floor plans and three-dimensional displays in order to engage customers and boost sales.
• Retail Advertising: on communication media. The retailer can advertise on electronic media such as television, radio, mobile, and Internet.
• Sales promotion is the communication strategy designed to act directly as an inducement, as added value, or as incentive for the product to the customer.
• It includes POP and POS displays, promotional pricing, and loyalty programs.

CRM

• identification, satisfaction, and management of customers' stated and unstated needs and demands by the retailer for mutual benefit
• These four phases must be included are Develop and Customize, Interact and Deliver, Acquire and Retain, and Understand and Differentiate A retailer must consider all of these for retail strategies:
• Retail positioning & Location of the retail store: Product assortment and services, price, promotion, and store atmosphere
• Retail promotion: advertising, public relations, publicity and sales promotion

Retail Management

• Managing the Retail Supply Chain and monitoring, promotional pricing, with sales Directly reduces prices drastically for a short duration Stores either being
• Independent retailer: Own and operates only one retail.
• Chain retailer: when two or more retail outlets are under a common ownership it is called a retail chain.

Types of retail owners

• Franchise: allow the franchisee to conduct a business under an established name as per the business format.
• Leased Department: when a section or a department in a retail store is rented to the outside party it is called leased department.
• Or operate consumer Co-operatives: is a retail organisation owned by its member customers
• or be Departmental Stores & Convenience stores and Super Market also

Types of Retail

• A hyperstore which combines a supermarket and a department store
• A specialty store is a store that offers specific and specialized types of items
• They can be non-store retailers or use direct selling
• Others include Mail order, marketting, automatic vending

Retailing Strategies

• Warehouse: is a concept of selling a large quantities of goods at deeper discounts

To successfully manage Retailing:

• All actions must entice customers - Maximize spacing , with more Sales
• Companies also use a Global presence
• With business and technology working as key point
• and knowing What exactly must they focus on such as - Unorganized to Organized Retailing, better Store Design, beaware and adapt to Competition
• and bettering Entertainment

Chapter 7: SERVICES MARKETING

• Involves all marketing strategies for nonphysical products, like medical care and rental vehicles, and valid methods that can communicate service's appeal Examples include:
• LVCVA sold experience of visiting New Delhi - wide Variety of marketing communication material
• Is is a must for all organization that provide individuals or other organizations (B2B) services
• Companies can research consumer behavior to create better advertisements

Elements of Service

• Unique identity,
• Serves Customer needs
• To be different than the competition for service
• And to show a valuable position
• Convenience - Making things easy
• All to have Better Technology and Information

MIS System

• Information System is used make day to day
• For the effective decision and communications within system it uses are SMS & Email used
• For data they consider people, data, procedures, hardware & software
• Also there are 3 decision structures suchas-
• Operationa L Management,
• Strategic Management,
• Tactical Information

System Types

This includes :-

• Transaction Processing systems [TPS]
• social Media Optimization
• Social media Marketing