By Prof. Saurabh S. Bhange, PRMIT&R, Badnera Marketing Management By Prof. Saurabh S. Bhange, PRMIT&R, Badnera

What is Market…?? A market consists of people with both the desire and ability to buy a specific product.

All of the above, plus much more! What is Marketing…?? Selling? Advertising? Promotions? Making products available in stores? Maintaining inventories? All of the above, plus much more!

What Is Marketing? Simple definition: Marketing is the management process responsible for identifying, anticipating, and satisfying customer requirements profitably.” (CIM,2001) Goals: Attract new customers by promising superior value. Keep and grow current customers by delivering satisfaction.

Making a sale—“telling and selling” Satisfying customer needs Marketing Defined Marketing is the activity, set of instructions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. OLD view of marketing: Making a sale—“telling and selling” NEW view of marketing: Satisfying customer needs This has come about, in part, due to the business paradigm shift experienced in many markets. In New Markets, we tend to talk about sellers markets- the seller has the power- demand outstrips demand.

Marketing 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.

HOW MARKETING BECAME SO IMPORTANT Evolution of the Market Orientation Production Era Sales Era Marketing Concept Era Societal Era

MARKETING MANAGEMENT PHILISOPHIES

Orientations towards marketing Production concept (before 1930): demand > supply Selling concept (1930-1950): supply > demand Marketing concept (post-1960s): analyze consumer needs before producing and selling, market orientation, competition…

Simple Marketing System Communication Industry (a collection of sellers) Market of Buyers) Goods/services Money Information

Marketing Marketing is all about creating a pull, sales is all about push. Marketing is all about managing the four P’s – product price place promotion

The 4 Ps & 4Cs Marketing Mix Convenience Product Place Promotion Price Customer Solution Customer Cost Communication

Marketing Mix

Product The first "P" of the marketing mix deals with the product. The positioning, packaging, etc.

The Marketing Mix PRODUCT - what is it that you are going to sell. Product Mix - range of PRODUCTS or SERVICES offered for sale Product Features- color, packaging, quality, brand name Product Support - maintenance, after-sales Service, pre-sale like advice and Quotations

Price The second "P" of the marketing mix is price. There are several options to consider regarding price: 1) price matching, 2) price making, 3) introductory penetration pricing, and 4) a competitive upgrade price strategy.

The Marketing Mix Pricing - not just how much you charge for a product but how the price fits your target market and the image you wish to develop. Pricing Methods you choose depends on: competition in the market and your marketing strategies demand for your product controlled pricing your costs perceived value

Place The 3rd "P" of the marketing mix deals with product placement--the width of distribution

The Marketing Mix Distribution - how your products or services reach your customers Distribution Methods Customers come to you You take the product/service direct to the customer You use an agent merchant franchise etc. to reach your customer

The Marketing Mix LOCATION - the place of the business "locate your business where the market is". Factors in Selecting an area: Customer accessibility Adequacy of transport/communication facilities Supply of skilled labor Population Trends

Marketing Research Definition: The systematic design, collection, analysis and reporting of data and findings relevant to a specific marketing situation facing the company. Marketing research is the systematic gathering and analysing the data about the marketing problems faced by the company. 

Definition from American Marketing Association: Gathering recording and analysing of all facts about problems relating to the transfer and sales of goods from producer to consumer.

Marketing Research Market research will give you the data you need to identify and reach your target market at a price customers are willing to pay.

Marketing research is not a perfect science Marketing research is not a perfect science. It deals with people and their constantly changing feelings and behaviors, which are influenced by countless subjective factors. To conduct marketing research, you must gather facts and opinions in an orderly, objective way to find out what people want to buy, not just what you want to sell them.

Objective Of marketing research: 1.Assessment of buyers 2.Sales Forecasting 3.Formulation of Plans 4.Advertising and Sales Promotion 5.Quality of Product 6.Marketing Channels 7.Marketing Problems 8.To know goodwill of the form 9. Reduction in Cost

Marketing research process 1.Identifying the field of research 2.Data collection 3.Analysis of data 4.Recommendation

Channels of Distribution

Channels of Distribution Distribution channel is the route, pathway or avenue through which the product of the company reaches the potential customer.

Consumer Goods Distribution Channels The common channels of distribution for consumers goods are: Direct Channel:- products are sold through manufacturer owned stores, mail order sales, door to door sales, retail shops of manufacturer e.g. Textile mills.

Consumer Goods Distribution Channels Manufacturer – Retailer – Consumer:- e.g. Departmental stores, cooperative stores, super-markets, etc Manufacturer – Wholesaler - Retailer – Consumer:- Most common channel used for distribution. e.g. Cosmetics, pharmaceuticals, groceries, etc. Manufacturer – Agent - Wholesaler - Retailer – Consumer:- e.g. Agricultural products.

Consumer Goods Distribution Channels Manufacturer – Wholesaler - Consumer:- This system is used when consumers are institutions like hospitals, government, universities or colleges, etc.

What is MARKETING ? This is how a Professor explained Marketing Concepts to a class: 1. You see a Gorgeous Girl at a party. You go up to her and say: “I am very rich. Marry me!” – That’s Direct Marketing. 2. You are at a party with a bunch of friends and see a Gorgeous Girl. One of your friends goes upto her and pointing at you says: “He’s very rich. Marry him!” – That’s Advertising. 3. You are at a party and see a Gorgeous Girl. She walks up to you and says: “You are very rich! Can I marry you?” – That’s Brand Recognition. 4. You see a Gorgeous Girl at a party. You go upto her and say: “I am very rich. Marry me!” She gives you a nice hard slap on your face. – That’s Customer Feedback. 5. You see a Gorgeous Girl at a party. You go upto her and say: “I am very rich. Marry me!” And she introduces you to her husband. – That’s Demand and Supply Gap. 6. You see a Gorgeous Girl at a party. You go upto her and before you say: “I m rich, Marry me!”, your wife arrives. – That’s Restriction for Entering New Markets.