Marketing Management Unit 1 PDF

Bachelor of Business Administration Marketing Management Unit 1 Prepared by: Dr. Divyang Tiwari, Assistant Professor, Faculty of Management Studies, Marwadi University.  Organization structure Every organization has different departments which are mainly as...

Bachelor of Business Administration Marketing Management Unit 1 Prepared by: Dr. Divyang Tiwari, Assistant Professor, Faculty of Management Studies, Marwadi University.  Organization structure Every organization has different departments which are mainly as under: 1. Production department 2. HR department 3. Marketing department 4. Finance department Marketing department is the life blood of the organization through which the organization creates an image in the market. Prepared by: Dr. Divyang Tiwari, Assistant Professor, Faculty of Management Studies, Marwadi University. Introduction to Marketing management Marketing management: Planning, implementing, and controlling marketing activities. Core components: Identify customer needs, understand market trends, develop strategies. Activities: Market research, product development, pricing, distribution, promotion, CRM. Integration: Collaborate with other departments for alignment with organizational goals. Continuous improvement: Monitor metrics, adapt to market dynamics. Prepared by: Dr. Divyang Tiwari, Assistant Professor, Faculty of Management Studies, Marwadi University.  Why marketing management? Understand customer needs through market research for tailored strategies. Create value by offering differentiated products, driving revenue. Build brand awareness and reputation, fostering loyalty and trust. Generate demand through targeted marketing campaigns, stimulating sales. Facilitate exchange, sustaining operations, and fueling economic growth. Adapt to market dynamics by monitoring trends, analyzing competitors. Maximize profitability by optimizing resource allocation, minimizing costs, maximizing revenue for sustainable financial performance. Prepared by: Dr. Divyang Tiwari, Assistant Professor, Faculty of Management Studies, Marwadi University.  Why Study Marketing Management? Versatile career opportunities High demand across industries Critical business function Understand consumer behavior Strategic thinking and planning Digital marketing skills Creativity and innovation Data-driven decision making Strong communication skills Adaptability and lifelong learning Global perspective Entrepreneurial skills Networking opportunities Contribute to business growth Prepared by: Dr. Divyang Tiwari, Assistant Professor, Faculty of Management Studies, Marwadi University. Definition of Marketing Management According to American Marketing Association, Marketing management is the process of strategically planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to facilitate exchanges that meet the goals of both individuals and organizations. Strategic planning and execution of product/ service. Meeting the goals of the individuals and organizations. Prepared by: Dr. Divyang Tiwari, Assistant Professor, Faculty of Management Studies, Marwadi University. Scope of Marketing Management Goods Services People Experiences Event Personalities Places Properties Organizations Information Ideas Prepared by: Dr. Divyang Tiwari, Assistant Professor, Faculty of Management Studies, Marwadi University.  Examples in Scope of Marketing Management Goods: Marketing consumer products like electronics, clothing, and food items. Services: Promoting services such as banking, insurance, and healthcare. People: Personal branding for celebrities, athletes, and influencers. Experiences: Marketing events like concerts, travel packages, and theme parks. Events: Promoting corporate events, trade shows, and conferences. Personalities: Branding and marketing for public figures and politicians. Places: Tourism marketing for cities, countries, and attractions. Properties: Real estate marketing for residential and commercial properties. Organizations: Promoting non-profits, businesses, and educational institutions. Information: Marketing educational content, news, and research findings. Ideas: Advocacy and awareness campaigns for social causes and movements. Prepared by: Dr. Divyang Tiwari, Assistant Professor, Faculty of Management Studies, Marwadi University. Prepared by: Dr. Divyang Tiwari, Assistant Professor, Faculty of Management Studies, Marwadi University. Core Marketing concepts Exchange Concept: Transactional nature of marketing, overlooks consumer complexities. Production Concept: Focus on efficiency, neglects quality, innovation, and satisfaction. Product Concept: Emphasis on product quality, differentiation, and innovation. Selling Concept: Aggressive promotion to drive sales, prioritizes short- term gains. Marketing Concept: Customer-centric approach, focuses on satisfaction and relationships. Societal Concept: Integrates social and environmental responsibility into marketing. Relationship Marketing Concept: Focuses on building long-term relationships for mutual benefit. Prepared by: Dr. Divyang Tiwari, Assistant Professor, Faculty of Management Studies, Marwadi University. Core Marketing concepts Examples Exchange Concept: Every company works on this concept. Production Concept: Reliance Industries – Known for its massive scale of production and efficiency. Product Concept: Amul – Focuses on high-quality dairy products and constant innovation. Selling Concept: Eureka Forbes – Uses aggressive sales tactics to promote its water purifiers and vacuum cleaners. Marketing Concept: Maruti Suzuki – Emphasizes customer satisfaction and building strong customer relationships. Societal Concept: Tata Group – Integrates social and environmental responsibility into its business practices. Relationship Marketing Concept: HDFC Bank – Focuses on building long-term relationshipsPrepared withby: customers forProfessor, Dr. Divyang Tiwari, Assistant mutual Faculty benefit. of Management Studies, Marwadi University. Understanding – Needs, Wants and Demand Needs: Basic requirements for survival and well-being. Physiological: Food, water, shelter, clothing. Psychological: Belongingness, esteem, self-actualization. Wants: Desires shaped by cultural, social, and individual factors. Influenced by lifestyle, preferences, experiences, societal norms. Demand: Willingness and ability to purchase goods or services. Influenced by product utility, price, availability, promotion, perceptions. Critical for businesses to address customer needs, cater to wants, and capitalize on demand through effective marketing strategies. Prepared by: Dr. Divyang Tiwari, Assistant Professor, Faculty of Management Studies, Marwadi University. Customer Value & Satisfaction Customer value: Perceived benefits vs. total costs of acquiring and using a product or service. Benefits: Quality, features, convenience, brand image. Costs: Monetary price, time, effort, psychological costs. Understand customer needs and preferences. Design products/services with superior benefits. Importance: Attract and retain customers. Differentiate in the market. Achieve sustainable competitive advantage. Prepared by: Dr. Divyang Tiwari, Assistant Professor, Faculty of Management Studies, Marwadi University. Customer Satisfaction Definition: Measures product/service meeting/exceeding expectations. Reflects subjective evaluation of overall experience. Includes product performance, service quality, reliability, after-sales support. Impact: High satisfaction: Repeat purchases, positive referrals, brand loyalty. Low satisfaction: Customer defection, negative reviews. Monitoring: Surveys, feedback mechanisms, analytics. Importance: Identify improvement areas, enhance overall customer experience. Prepared by: Dr. Divyang Tiwari, Assistant Professor, Faculty of Management Studies, Marwadi University. Functions of Marketing Understanding Consumer Needs: Conduct research to align offerings with preferences. Strategic Planning: Set clear objectives and plans aligned with organizational goals. Product Development: Create offerings informed by consumer insights for acceptance. Standardization and Grading: Ensure uniformity and aid informed choices. Packaging and Labeling: Enhance visibility and appeal for consumer perception. Branding: Establish credibility and recognition for consumer trust and loyalty. Prepared by: Dr. Divyang Tiwari, Assistant Professor, Faculty of Management Studies, Marwadi University. Functions of Marketing Customer Service: Provide comprehensive support for positive experiences and loyalty. Pricing: Determine strategies for product success and profitability. Promotion: Raise awareness and stimulate demand through various channels. Distribution: Efficient movement of goods to ensure timely availability. Transportation: Physical transportation based on market geography and needs. Warehousing: Facilitate storage for time utility and efficient supply management. Prepared by: Dr. Divyang Tiwari, Assistant Professor, Faculty of Management Studies, Marwadi University. Eras in Marketing Production Era (Pre-1920s): Focus: Maximize production efficiency to meet industrialization demand. Key Characteristics: Introduction of mass production techniques like assembly lines to streamline manufacturing. Marketing Philosophy: Belief that efficient production would inherently create a market. Example: Henry Ford’s revolutionized manufacturing with mass production. Prepared by: Dr. Divyang Tiwari, Assistant Professor, Faculty of Management Studies, Marwadi University. Eras in Marketing Product Era (1920s-1950s): Focus: Shift from production efficiency to product quality and innovation. Key Characteristics: Emphasis on product features, design, and quality. Marketing Philosophy: Building better products to attract and retain customers. Example: Brands like Coca-Cola and Kellogg's capitalized on innovation and branding. Prepared by: Dr. Divyang Tiwari, Assistant Professor, Faculty of Management Studies, Marwadi University. Eras in Marketing Sales Era (1950s-1980s): Focus: Shift to aggressive sales and promotions to drive demand. Key Characteristics: Dependence on influential sales techniques and campaigns. Marketing Philosophy: Aggressive selling regardless of customer needs. Example: Door-to-door sales, telemarketing, high-pressure tactics. Prepared by: Dr. Divyang Tiwari, Assistant Professor, Faculty of Management Studies, Marwadi University. Eras in Marketing Marketing Concept Era (1950s-Present): Focus: Shift to understanding and fulfilling customer needs. Key Characteristics: Customer-centric approach with market research and targeting. Marketing Philosophy: Satisfy customer needs for long-term success. Example: Integration of market research, segmentation, targeted advertising. Prepared by: Dr. Divyang Tiwari, Assistant Professor, Faculty of Management Studies, Marwadi University. Eras in Marketing Societal Marketing Era (1980s-Present): Focus: Addressing societal issues and ethical responsibilities. Key Characteristics: Integrating social and environmental considerations. Marketing Philosophy: Balancing profit with social good and sustainability. Example: CSR initiatives, cause-related marketing, sustainability efforts. Prepared by: Dr. Divyang Tiwari, Assistant Professor, Faculty of Management Studies, Marwadi University. Eras in Marketing Relationship Marketing Era (1990s-Present): Focus: Shift from transactional to relational marketing. Key Characteristics: Prioritizing customer relationships, retention, loyalty. Marketing Philosophy: Strong relationships lead to loyalty and positive word-of-mouth. Example: Loyalty programs, personalized marketing, CRM systems. Prepared by: Dr. Divyang Tiwari, Assistant Professor, Faculty of Management Studies, Marwadi University. Eras in Marketing Digital Marketing Era (2000s-Present): Focus: Adoption of digital technologies for marketing. Key Characteristics: Leveraging social media, search engines, e- commerce. Marketing Philosophy: Digital tools and data drive targeted, personalized marketing. Example: Google Ads, Facebook advertising, Amazon's personalized recommendations. Prepared by: Dr. Divyang Tiwari, Assistant Professor, Faculty of Management Studies, Marwadi University. Marketing Environment Encompasses internal (resources, structure) and external factors (customers, competitors). Influences customer responses and business growth. Benefits: Insights into competitors, customer segments, future strategies, trend evaluation. Prepared by: Dr. Divyang Tiwari, Assistant Professor, Faculty of Management Studies, Marwadi University. Types of marketing environments Internal Marketing Environment: Comprises resources, values, systems, processes within the organization. Influences tasks of marketing teams and campaign development. External Microenvironment: Relationships outside immediate boundaries: customers, suppliers, agencies. Crucial for navigating competition and meeting customer needs. External Macroenvironment: Broader market context: economic, socio-cultural, technological, regulatory factors. Indirect impact on individual companies, crucial for anticipating shifts and ensuring sustainability. Prepared by: Dr. Divyang Tiwari, Assistant Professor, Faculty of Management Studies, Marwadi University. Marketing Mix Marketing mix: Strategic tools forming a comprehensive plan. Origin: 4 P's (product, price, placement, promotion). Expansion: Additional elements (people, packaging, process). Purpose: Framework for coordinating and optimizing marketing efforts. Goals: Meet customer needs, achieve competitive advantage, drive growth. Prepared by: Dr. Divyang Tiwari, Assistant Professor, Faculty of Management Studies, Marwadi University. Role of marketing manager Strategic Planning: Develop comprehensive strategies aligned with objectives. Product Development: Conceptualize, launch, and manage products/services. Market Segmentation: Identify target segments and tailor marketing efforts. Marketing Communications: Oversee advertising, PR, digital marketing. Brand Management: Maintain brand integrity and enhance reputation. Market Analysis: Monitor trends, competitive activities, performance metrics. Cross-Functional Collaboration: Align marketing efforts with business objectives. Customer Relationship Management: Build and nurture customer relationships. Prepared by: Dr. Divyang Tiwari, Assistant Professor, Faculty of Management Studies, Marwadi University. Prepared by: Dr. Divyang Tiwari, Assistant Professor, Faculty of Management Studies, Marwadi University.