Marketing Management

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UNIT 1- INTRODUCTION TO
MARKETING

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Marketing is the activity, set of institutions, and processes for
creating, communicating, delivering, and exchanging offerings
that have value for customers, clients, partners, and society at
large.
Types of Marketing
Influencer Marketing- In influencer marketing, rather than
marketing directly to a large group of consumers, a brand
inspires or compensates influencers (which can include
celebrities, content creators, customer advocates, and
employees) to get the word out on their behalf.
Relationship marketing refers to strategies and tactics for
segmenting consumers to build loyalty.

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Viral marketing is a marketing phenomenon that facilitates and
encourages people to pass along a marketing message.
Nicknamed “viral” because the number of people exposed to a
message mimics the process of passing a virus or disease from one
person to another.
Green marketing refers to the development
and marketing of products that are presumed to be environmentally
safe.
Keyword Marketing- Keyword marketing involves placing
a marketing message in front of users based on the
specific keywords and phrases they are using to search.[1]
A key advantage of this method is that it gives marketers the ability
to reach the right people with the right message at the right time. For
many marketers, keyword marketing results in the placement of
an ad when certain keywords are entered.

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Guerilla Marketing- Guerilla marketing describes an unconventional
and creative marketing strategy intended to get maximum results from
minimal resources.

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Scope of Marketing
Consumer Research: Research is the process of gathering, recording and
analyzing relevant facts about any problem. Marketing research is concerned
with all those factors that have impact on the marketing of products and
services. It deals with product planning and development, pricing policies,
advertisement and sales promotion, distribution structure, strengths and
weaknesses of competition, buyer’s behaviour, etc. By conducting research,
the risk of loss can be reduced in purchasing, pricing, forecasting and in
facing competition.
Determination of Product Policies: Product planning is the starting point of
the entire marketing activities of a concern. It refers to establishing a product,
which is in line with market needs. Product development begins with the
conception of idea to its successful commercialization.

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Determination of Distribution Channel: A channel of distribution for a
product is the route taken by which the title of the goods moves from
producer to consumer. The determination of distribution channel is very
important in marketing management. It is a bridge to cover the gap
between producers and consumers.
Promotional Decisions: One of the important requirements of modern
marketing is promotional decisions regarding product without which it is
difficult to sell the product in the market.

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Marketing Management Process
Simple Marketing Management process involves-

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The marketing management process goes through various stages to
ensure the success of a product in an organization. A company is
generally in the blind about any new product. In a tough
business environment, with a customer who knows everything beforehand
because of the presence of online portals and websites, it is tough to plan
and launch a new product or a marketing strategy.
1) Conduct market research- The very first step in the marketing
management process starts with conducting a market research. As
previously mentioned, if a product is a new launch, then the company is
likely to be in the blind for the future propects of the product. They do not
know what product the market needs, should they go for a new product or
do a product extension, what will be the expected turnover increase from
the new product, etc. Such questions are answered by market research.
Thus, to even start thinking of launching a new product, market research
is necessary.

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2) Develop a marketing strategy -Before making a marketing strategy, you
need to know the market. As market research has already been done,
marketing strategy forms the second step in marketing management process.
The marketing strategy takes several points in consideration.
Simple things such as segmentation, targeting and positioning are a part of
Marketing strategy. However, tough things like deciding the marketing mix as
well as getting the positioning strategy right are also involved. Core
competencies like financials and production are also to be analysed during the
marketing strategy stage. Taking all these things in consideration, a marketing
strategy is formed.
3) Make a marketing plan- After marketing strategy, a written marketing
plan is made. This is the third and a very important step in marketing
management process. A written marketing plan is made to analyse where the
company is and where it wants to reach in a given time period. The marketing
plan actually puts the plan on paper and the marketer can anytime refer to the
marketing plan to analyse whether he is on track or not.

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4) Feedback and control- Once a product is in the market, customers might
give further ideas for the improvement of the product. These ideas are
usually considered by the marketing department and a market research is
conducted to find the validity of the ideas. If the idea is valid, another product
can be developed or another marketing strategy implemented. On the other
hand, if the product is not received positively, then the control mechanism
needs to fall in place and implement an alteration process for the product or
in the worst case scenario – take the product out of the market before it
affects the brand.

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Concept of Marketing Mix
The marketing mix refers to the set of actions, or tactics,
that a company uses to promote its brand or product in the
market. The 4Ps make up a typical marketing mix - Price,
Product, Promotion and Place.
Price: refers to the value that is put for a product. It depends
on costs of production, segment targeted, ability of the
market to pay, supply - demand and a host of other direct
and indirect factors. There can be several types of pricing
strategies, each tied in with an overall business plan. Pricing
can also be used a demarcation, to differentiate and
enhance the image of a product.
Product: refers to the item actually being sold. The product
must deliver a minimum level of performance; otherwise
even the best work on the other elements of the marketing
mix won't do any good.

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Place: refers to the point of sale. In every industry, catching the eye of the
consumer and making it easy for her to buy it is the main aim of a good
distribution or 'place' strategy. Retailers pay a premium for the right location.
In fact, the mantra of a successful retail business is 'location, location,
location'.
Promotion: this refers to all the activities undertaken to make the product or
service known to the user and trade. This can include advertising, word of
mouth, press reports, incentives, commissions and awards to the trade. It can
also include consumer schemes, direct marketing, contests and prizes.

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•Marketing mix is the crux of marketing process:Marketing mix
involves many crucial decisions relating to each element of the mix. The
impact of the mix will be the best when proper weightage is assigned to
each element and they are integrated so that the combined effect leads to
the best results.
•Marketing mix has to be reviewed constantly in order to meet the
changing requirements:The marketing manager has to constantly review
the mix and conditions of the market and make necessary changes in the
marketing mix according to changes in the conditions and complexity of
the market.
•Changes in external environment necessitate alterations in the
mix:Changes keep on taking place in the external environment. For many
industries, the customer is the most fluctuating variable of environment.
Customers’ tastes and preferences change very fast. Brand loyalty and
purchasing power also change over a period. The marketing manager has
to carry out market analysis constantly to make necessary changes in the
marketing mix.
Nature of Marketing Mix:

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Applicable to business and non-business organization:Marketing mix is
applicable not only to business organizations but also to non-business
organizations, such as clubs and educational institutions. For instance, an
educational institution is expected to provide the right courses (product),
charge the right fees (price), promote the institution and the courses, and
provide the courses at the right place.
Concentrates on customers:A thorough understanding of the customer is
common to all the four elements. The focus point of marketing mix is the
customer, and the marketing mix is expected to provide maximum customer
satisfaction

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Understanding Marketing Environment
A company’s marketing environment consists of the actors and forces outside of
marketing that affect marketing management ability to build and maintain
successful relationships with target customers”. – Philip Kotler
The marketing environment is made up of the internal and external environment
of the business.
Internal Environment
The internal environment of the business includes all the forces and factors
inside the organisation which affect its marketing operations. These components
can be grouped under the Five Ms of the business, which are:
Men: The people of the organisation including both skilled and unskilled
workers.
Minutes: Time taken for the processes of the business to complete.
Machinery: Equipment required by the business to facilitate or complete the
processes.
Materials: The factors of production or supplies required by the business to
complete the processes or production.
Money: Money is the financial resource used to purchase machinery, materials,
, and pay the employees.

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External Environment-The external environment constitutes factors and
forces which are external to the business and on which the marketer has
little or no control. The external environment is of two types:
Micro Environment
Macro Environment
The micro-component of the external environment is also known as the task
environment. It comprises of external forces and factors that are directly
related to the business. These include suppliers, market intermediaries,
customers, partners, competitors and the public.

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• Suppliers include all the parties which provide resources needed
by the organisation.
• Market intermediaries include parties involved in distributing the
product or service of the organisation.
• Partners are all the separate entities like advertising agencies,
market research organisations, banking and insurance companies,
transportation companies, brokers, etc. which conduct business with
the organisation.
• Customers comprise of the target group of the organisation.
• Competitors are the players in the same market who targets similar
customers as that of the organisation.
• Public is made up of any other group that has an actual or potential
interest or affects the company’s ability to serve its customers.

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Macro Environment-The macro component of the marketing environment is also
known as the broad environment. It constitutes the external factors and forces
which affect the industry as a whole but don’t have a direct effect on the business.
The macro-environment can be divided into 6 parts.
Demographic Environment-The demographic environment is made up of the
people who constitute the market. It is characterised as the factual investigation
and segregation of the population according to their size, density, location, age,
gender, race, and occupation.
Economic Environment-The economic environment constitutes factors which
influence customers’ purchasing power and spending patterns. These factors
include the GDP, GNP, interest rates, inflation, income distribution, government
funding and subsidies, and other major economic variables.
Physical Environment- The physical environment includes the natural
environment in which the business operates. This includes the climatic conditions,
environmental change, accessibility to water and raw materials, natural disasters,
pollution etc.

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Essential For Planning-An understanding of the external and internal
environment is essential for planning for the future. A marketer needs to be
fully aware of the current scenario, dynamism, and future predictions of the
marketing environment if he wants his plans to succeed.
Understanding Customers-Thorough knowledge of the marketing
environment helps marketers acknowledge and predict what the customer
actually wants. In-depth analysis of the marketing environment reduces
(and even removes) the noise between the marketer and customers and
helps the marketer to understand consumer behaviour better.
Tapping Trends-Breaking into new markets and capitalizing on new
trends requires a lot of insight about the marketing environment. The
marketer needs to research about every aspect of the environment to
create a foolproof plan.
Threats And Opportunities-Sound knowledge of the market environment
often gives a first-mover advantage to the marketer as he makes sure that
his business is safe from future threats and taps the future opportunities.
Importance Of Marketing Environment

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Organizational Buying Behavior:
Meaning and Features
The behavior of an organization shown in buying goods or services is called
organizational buying behavior. The organizations buy goods or services for
business use, resale, produce other goods or provide services. Business
and industrial organizations buy goods to use in business or produce other
goods. Resellers buy goods for reselling them at profitable price. Similarly,
government bodies buy goods for office and conducting development
program. Non-governmental organizations, hospitals, educational institutes,
social organizations, religious organizations etc. buy goods to provide
services to their followers or customers.
“Organizational buying behavior is the decision making process by which a
buying group establishes the needs for goods and services and identifies,
evaluate, and chooses among alternative brand and suppliers.”

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Features of Organizational Buying
Behavior
1. Few buyers-As organization itself become buyer, organizational buyers are
few in number. But they buy in huge quantity. Organization buyers live scattered
in different places.
2. Close relationship-Organizational buyers and suppliers have close relations.
It may be long lasting. Such relation has positive effect on future buying.
Generally all organizational buyer and suppliers have close relation.
3. Rational buyers-Buyer becomes rational in organizational buying.
Professional and trained buyers are involved in buying. So, buying decision
becomes rational.
4. Direct channel-As organizational buyers buy a huge quantity, they buy goods
directly from producer. So, marketing channel becomes direct. But
some organizations buy goods through intermediaries or agencies.
5. Purchase policy-The buying method of organization and persons become
different. An organization makes certain policy for buying and buys goods
according to the policy. Buying through quotation, buying through tender, buying
through contract etc. are the major buying policies of organizations.

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Organizational Buying Process

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1. Need recognition-Organizational buying process starts from need
recognition. In an organization, a certain person recognizes need of certain
goods and after buying the needed goods, need is fulfilled. Needs in
organization can be recognized in two ways. They are: external stimuli and
internal stimuli. If a company decides to produce new goods, it is internal
stimuli. It needs to buy new goods and equipments. Similarly, when a
buyer observes trade exhibition, s/he may make his/her idea to buy
new goods. Such idea is external stimuli, because this idea is made from
outer environment and materials should be purchased for this.
2. Need description-After the need is recognized, the buyers
should describe need. This task is completed in the second stage of
organizational buying process. While describing need, features of needed
goods and needed quantity should be described. If the goods have
standard, this task becomes easy; if otherwise, it becomes complicated.
Help of engineers, users and consultants should be taken for complex
goods.

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3.Product specification-The task of preparing specific description of
goods is the third stage of organizational buying process. In this stage,
description performance of goods is prepared to solve the problems.
Technician’s help should be taken for this task. In this stage, the value of
goods is analyzed.
4. Supplier search-At this stage of organizational buying process, the
buyer searches proper suppliers or sellers. Buyer prepares a list of
suppliers to select good and proper suppliers. This list is prepared by
looking at trade directory, searching in Internet, asking other companies for
suggestions etc. If the goods to be bought are new, complicated and costly,
it needs long time to search suppliers.
5. Proposal solicitation-Proposal solicitation is the fifth stage of
organizational buying process. At this stage, buyer calls best suppliers for
submitting proposal. As the reaction, some send catalog or sellers to the
organization. If the product is costly and complicated, the buyer demands
detailed proposal, and if the product is technical, business
organization calls for presenting the product itself.

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6. Supplier selection-At the sixth stage of organizational buying process,
buyers assess the proposal and select one or more suppliers. For selecting
the suppliers, a list is prepared and rating is made on the basis of their
attribute and importance. Then the best supplier is selected. Analysis of the
suppliers is done in the following ways.
7. Order routine specification-After the best suppliers have been selected,
the buyer prepares final order. In this order, all the matters such as attribute
of goods, quantity, specification, time for supply, warranty, method of
payment, service after sale etc. should be clearly mentioned.
8. Performance review-This is the last process of organizational buying. At
this stage, the buyer reviews suppliers’ performance. This type of review
helps to take decision whether to continue relation with the supplier or
change or end the relation. If the performance of the supplier is satisfactory,
the relation can be continued; if it is somewhat defective, if partial correction
is made and the relation is maintained. But if the performance
is disagreeable, it is broken.

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Buying behaviour is the decision processes and acts of people/prospective
customers involved in buying and using products.
It helps in understanding:
•Why consumers make the purchases that they make?
•What factors influence consumer purchases?
• The changing factors in our society.
Stages of the Consumer Buying Process:
Problem/need recognition-This is often identified as the first and most
important step in the customer’s decision process. A purchase cannot take
place without the recognition of the need. The need may have been triggered
by internal stimuli (such as hunger or thirst) or external stimuli (such as
advertising or word of mouth).
Consumer Buying Behavior

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Information search-Having recognised a problem or need, the next
step a customer may take is the information search stage, in order to
find out what they feel is the best solution. This is the buyer’s effort to
search internal and external business environments, in order to identify
and evaluate information sources related to the central buying decision.
Your customer may rely on print, visual, online media or word of mouth
for obtaining information.
Evaluation of alternatives- As you might expect, individuals will
evaluate different products or brands at this stage on the basis of
alternative product attributes – those which have the ability to deliver
the benefits the customer is seeking. A factor that heavily influences this
stage is the customer’s attitude. Involvement is another factor that
influences the evaluation process. For example, if the customer’s
attitude is positive and involvement is high, then they will evaluate a
number of companies or brands; but if it is low, only one company or
brand will be evaluated.

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Purchase decision-The penultimate stage is where the purchase takes
place. Philip Kotler (2009) states that the final purchase decision may be
‘disrupted’ by two factors: negative feedback from other customers and the
level of motivation to accept the feedback. For example, having gone
through the previous three stages, a customer chooses to buy a new
telescope. However, because his very good friend, a keen astronomer, gives
him negative feedback, he will then be bound to change his preference.
Furthermore, the decision may be disrupted due to unforeseen situations
such as a sudden job loss or relocation.
Post-purchase behaviour-In brief, customers will compare products with
their previous expectations and will be either satisfied or dissatisfied.
Therefore, these stages are critical in retaining customers. This can greatly
affect the decision process for similar purchases from the same company in
the future, having a knock-on effect at the information search stage and
evaluation of alternatives stage. If your customer is satisfied, this will result
in brand loyalty, and the Information search and Evaluation of alternative
stages will often be fast-tracked or skipped altogether.
On the basis of being either satisfied or dissatisfied, it is common for
customers to distribute their positive or negative feedback about the
product. This may be through reviews on website, social media networks or
word of mouth. Companies should be very careful to create positive post-
purchase communication, in order to engage customers and make the

30. CONSUMER BUYING
BEHAVIOR
• The individual consumers buy
goods and services for ultimate
use or satisfy their needs. The
buying purpose of such
consumers is not to earn profit by
reselling the goods and services.
• The organizations buy goods and
services for their business needs.
The buying purpose of them is to
earn profit by using and reselling
the goods and services.
ORGANIZATIONAL
BUYING BEHAVIOR
DIFFERENCE BETWEEN CONSUMER
BUYING BEHAVIOR AND
ORGANIZATIONAL BUYING BEHAVIOR
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31. CONSUMER BUYING
BEHAVIOR
• Although consumers buy various
kinds of goods, the quantity of
goods remains small. They buy
only the necessary quantity of
goods, which they need for
regular use.
• Organizational buying is done in
large quantities. There are
several reasons
why organizations must buy the
goods they need in bulk. In the
first place, they use large
quantities of each item and must
maintain inventories at a level
high enough that they will not run
out of stock. Secondly, it is
cheaper and more efficient to
make large-volume purchases.
ORGANIZATIONAL
BUYING BEHAVIOR
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32. CONSUMER BUYING
BEHAVIOR
• Consumer buying takes
decision by consumers
themselves. Sometimes they
can consult
with family members and
friends. They need not fulfill any
formality like organizational
buying.
• Organizational purchasing is a
rational process because the
purchasing behavior
of organizations is guided by
objective factors having to do
with production and distribution.
It takes long time than
consumer buying.
ORGANIZATIONAL
BUYING BEHAVIOR
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33. CONSUMER BUYING
BEHAVIOR
• Most of the consumers may not
have adequate knowledge and
information about market
situation, available goods and
services, etc. The educated
customers may be aware and
have knowledge about market
and goods.
• Organizational purchase criteria
are specifically defined.
Organizational buyers usually
have fewer brands to choose
from than do individuals, and
their purchases must be
evaluated on the basis of
criteria that are specific to the
overall needs of the
organization. The
organizational buyers have full
knowledge of market and
suppliers.
ORGANIZATIONAL
BUYING BEHAVIOR
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34. CONSUMER BUYING
BEHAVIOR
• Consumers buy many goods to
use to satisfy personal
or family needs.
• Consumer buying behavior is
effected by age, occupation,
income level, education, gender
etc. of consumers.
• Organizational buyers buy
limited goods to use
to conduct business.
• Many individuals are involved in
the buying process. Within
large organizations, rarely is
one individual solely
responsible for the purchase of
products for the purchase of
products or services. Instead,
many individuals and
departments may be involved
and departments may be
involved in the buying process.
ORGANIZATIONAL
BUYING BEHAVIOR
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35. CONSUMER BUYING
BEHAVIOR
• The consumer buying process
is very simple. No need to fulfill
any formality. There is also no
need to maintain extensive
contact with sellers.
• Buyers and sellers in the
organizational market must
maintain extensive contact.
ORGANIZATIONAL
BUYING BEHAVIOR
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Demand Forecasting
It is a technique for estimation of probable demand for a product or
services in the future. It is based on the analysis of past demand for that
product or service in the present market condition. Demand forecasting
should be done on a scientific basis and facts and events related to
forecasting should be considered.
Usefulness of Demand Forecasting
Demand plays a vital role in the decision making of a business. In
competitive market conditions, there is a need to take correct decision
and make planning for future events related to business like a sale,
production, etc. The effectiveness of a decision taken by business
managers depends upon the accuracy of the decision taken by them.
Demand is the most important aspect for business for achieving its
objectives. Many decisions of business depend on demand like
production, sales, staff requirement, etc. Forecasting is the necessity of
business at an international level as well as domestic level.

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Demand forecasting reduces risk related to business activities and helps it to take
efficient decisions. For firms having production at the mass level, the importance
of forecasting had increased more. A good forecasting helps a firm in
better planning related to business goals.
Demand forecasting provides reasonable data for the
organization’s capital investment and expansion decision. It also provides a way
for the formulation of suitable pricing and advertisement strategies.
Types of Forecasting- There are two types of forecasting:
• Based on Economy
• Based on the time period

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Based on Economy- There are three types of forecasting based on the
economy:
• Macro-level forecasting: It deals with the general
economic environment relating to the economy as measured by the Index of
Industrial Production(IIP), national income and general level of employment,
etc.
• Industry level forecasting: Industry level forecasting deals with the demand
for the industry’s products as a whole. For example demand for cement in
India, demand for clothes in India, etc.
• Firm-level forecasting: It means forecasting the demand for a particular
firm’s product. For example, demand for Birla cement, demand for Raymond
clothes, etc.

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Based on the Time Period-
Forecasting based on time may be short-term forecasting and long-term
forecasting
Short-term forecasting: It covers a short period of time, depending upon the
nature of the industry. It is done generally for six months or less than one year.
Short-term forecasting is generally useful in tactical decisions.
Long-term forecasting casting: Long-term forecasts are for a longer period of
time say, two to five years or more. It gives information for major strategic
decisions of the firm. For example, expansion of plant capacity, opening a new unit
of business, etc.

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CASE STUDY- TATA NANO
ENVIRONMENT ANALYSIS

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