Marketing management

1. 201 GC
Marketing Management
As per Syllabus of SPPU (2019 Pattern)
By
ASST. PROF. AMOL MARATHE
BATCH 2021-23

2. MBA Syllabus – 405 - GSM
• Refer MBA Syllabus 2019 pattern

3. CHAPTER 1
PRODUCT

4. Market offerings
• Market offerings are some combination of products, services,
information, or experiences offered to a market to satisfy consumer needs
or wants.
• Market offerings are not just limited to physical products; they can also
include services such as intangible like activities or benefits offered for
sale, but have no ownership.
• Examples of service market offerings may include:
• Banking
Airline services
Medical
Hotel stays
Taxi or bus services
Home repair

6. PRODUCT MARKETING
• Shaping the Market Offering explores three important
themes:
✓ Managing products and services;
✓ Creating new products; and
✓ Developing pricing strategies.
• Product marketers are focused on understanding and
marketing to customers and positioning their company to sell
to potential customers.
• They drive demand and usage of products, which usually
includes writing positioning and messaging, launching new
products and features, and enabling marketing, sales, and
customer success teams to be successful.
• Product marketing sits at the intersection of product strategy,
sales, customer success, and marketing.

7. PRODUCT MARKETING
• Before a product launch, product
marketers typically own positioning,
messaging, gathering customer feedback,
and the overall go-to-market strategy for
a product.
• After a product launch, product marketers
help with sales enablement and focus on
driving demand, adoption, and the overall
success of the product.

8. BRANDING
• Branding is the process of creating a strong, positive
perception of a company, its products or services in the
customer’s mind by combining such elements as logo,
design, mission statement, and a consistent theme
throughout all marketing communications.
• Effective branding helps companies differentiate themselves
from their competitors and build a loyal customer base.
• In a Zendesk survey, 87% of consumers said consistent
branding across all online and traditional platforms was
important.

9. BRANDING
• This means that customers expect that your
tone of voice is the same over email, your
website, customer service, and every other
touchpoint in your business.
• If you rebrand, you need to change your logo,
and styling everywhere both online and
offline.
• Make sure you create a consistent brand so
that your customers revel in your omni-
channel presence.

16. BRANDING
• Branding in store can be very different to online
branding as in store you have to worry about
positioning of products and props that can effect
how a customer experiences your brand.
• Branding in store is more experiential as people can
walk around and pick things up, whereas customers
online are experiencing a two-dimensional scene.
• Of course certain elements of branding are
consistent with both online and in store.
• These include consistent imagery and logos.

17. BRAND STRATEGY
• Brand strategy is a long-term plan for the
development of a successful brand in order to
achieve specific goals.
• A well-defined and executed brand strategy
affects all aspects of a business and is directly
connected to consumer needs, emotions, and
competitive environments.

19. BRAND STRATEGY
• As you develop a brand strategy, it helps to start at the beginning. In
other words, begin by setting your business goals.
• Why are you creating a new brand?
• What do you hope to achieve by launching the new brand?
• Use those long-term objectives as a basis for all of your strategic
branding efforts.
• For example, are you trying to reach a new audience?
• Your brand strategy for achieving that goal is likely to be quite
different from a business that wants to steal market share from a
category leader, and that’s why goal definition is a fundamental
starting point for any brand strategy.
• The first question you have to answer is, “Why?”

20. BRAND STRATEGY
• In times of globalized economy and increasingly competitive
markets, it is critical to establish a brand positioning, the place that
the company wants to occupy in the hearts and minds of its target
audience.
• Positioning is basically the union between Segmentation and
Differentiation.
• In other words: positioning a brand is occupying a differentiated
position at the head of a specific market segment; if the company
does not offer something different, consumers see no reason not to
opt for competition.
• However, it is worth noting that brand positioning is not an act, but
a continuous process.
• In addition, the advantages and differentials offered need to be
relevant to the target audience; it is necessary to know how to
incorporate technical qualities and subjective values.

21. EXAMPLES OF SUCCESSFUL BRAND
POSITIONING

22. 1 - Coca-Cola
• When it comes to brand positioning, Coca-Cola is one
of the most successful examples.
• Number one in its segment, it is no wonder that the
company survives more than 125 years in the market.
• In its many campaigns, such as "Open Happiness", "The
Coca-Cola side of life" and "Drinking a Coke with", the
brand has always relied on values ​​such as Friendship,
Happiness, Joy, Sharing, Unity and Fun to position.
• The positioning of the brand promotes engagement
among its consumers, encouraging them to share
moments and experiences.

23. 2 - Dove
• The positioning of the Dove brand against the competition
is very well defined.
• Their most recent campaigns have appealed to the
appreciation of women's natural beauty.
• Through a discourse focused primarily on emotional
aspects, Dove was able to get the audience to identify with
the message.
• An example of this is the "Real Beauty" campaign, in which
women were called to describe themselves to a
professional portraitist who designed them.
• Then a person whom these women had known quickly
before the action described them to the portraitist who
ended up drawing much prettier women from the
description of other people.

24. 3 - McDonald's
• Present in more than 117 countries, McDonald's adopts a
positioning strategy based on four complementary concepts:
segmentation, experimentation, adaptation and innovation.
• This is because each country presents different cultural
specificities and demands.
• Thus, the brand can understand the preferences and needs of
consumers in each region and offer them the best possible
experience.
• According to the company's website:
• "Who We Are: Our formula for success lies in quality. Service,
cleanliness and value. A leader in the fast food service
segment, McDonald's stands out for the quality of products
and "

25. 4 - Apple
• Apple is positioned as a brand that offers
elegance, luxury and exclusivity.
• This is perceived in your products, services,
web site and also in Apple Stores.
• Today, the company dominates the
technology market. Your positioning serves
as the basis for all your marketing
campaigns.

26. 5 - Starbucks
• Starbucks' positioning is focused on the consumer experience.
• One of its great balconies was to write the client's name on the
glass when it came to delivering his drink, which became part of the
brand's culture and generated millions of posts in various social
networks.
• What the brand wants is to make the simple act of buying a coffee
as pleasant as possible.
• For this, the company has relied on technology to be its ally.
• An example of this is the possibility that the customer has to make
their request through the mobile phone through an application.
• Thus, the consumer optimizes his time and can choose more calmly
what coffee he will take.
• The customer experience is improved, reinforcing the positioning of
the company.

27. 6 - Amazon
• To close our list of brand positioning
examples, we selected Amazon, one of the
world's leading e-commerce companies.
• Its positioning is based on the relationship
with the customer and the shopping
experience as a whole.
• In addition to offering advantages such as low
price and agility in delivery times, the
company gives its consumers the freedom to
say whether they like the product or not.

28. PRICING

29. 9 Factors Influencing Pricing
Decisions of a Company
1. Price-quality relationship: ...
2. Product line pricing: ...
3. Explicability: ...
4. Competition: ...
5. Negotiating margins: ...
6. Effect on distributors and retailers: ...
7. Political factors: ...
8. Earning very high profits:
9. Charging very low prices:

30. PRICING
• Pricing the product or service is one of the
most important business decisions you
will make.
• You must offer your products for a price
your target market is willing to pay –
and one that produces a profit for your
company – or you won’t be in business for
long.

31. PRICING
• According to Prof. K.C. Kite,
“Pricing is a managerial task that involves
establishing pricing objectives, identifying the
factors governing the price, ascertaining their
relevance and significance, determining the
product value in monetary terms and
formulation of price policies and the strategies,
implementing them and controlling them for
the best results”.

32. PRICING
• Pricing is not an end in itself but a means to
achieve marketing objectives of the firm.
• Therefore, the pricing strategy of a firm
should be designed to achieve specific
objectives.
• Like other operating objectives, the objectives
of pricing are derived from the overall
objectives of the firm.
• The basic objectives of a firm are survival and
growth.

33. PRICING
• One framework for making pricing decisions is
that takes into account your costs, the effects of
competition and the customer’s perception of
value.
(i) Cost is the total of the fixed and variable expenses
(costs to you) to manufacturer or offers your product
or service.
(ii) Price is the selling price per unit that customers
pay for your product or service.
• So, the price you set is the cost to the customer.
Ideally, it should be higher than the costs you
incurred in producing the product.

34. Pricing – Buyers’ and Sellers’
View
• In general terms price is a component of
an exchange or transaction that takes
place between two parties and refers to
what must be given up by one party (i.e.,
buyer) in order to obtain something
offered by another party (i.e., seller).
• Yet this view of price provides a somewhat
limited explanation of what price means to
participants in the transaction.

35. Pricing – Buyers’ and Sellers’
View
1. Buyers’ View:
• For those making a purchase, such as final
customers, price refers to what must be
given up to obtain benefits. In most cases
what is given up is financial consideration
(e.g., money) in exchange for acquiring
access to a good or service. But financial
consideration is not always what the buyer
gives up.

36. Pricing – Buyers’ and Sellers’
View
2. Sellers’ View:
• To sellers in a transaction, price reflects the
revenue generated for each product sold and,
thus, is an important factor in determining
profit. For marketing organizations price also
serves as a marketing tool and is a key
element in marketing promotions. For
example – most retailers highlight product
pricing in their advertising campaigns.

37. TRANSFER PRICE
• Transfer price, also known as transfer cost, is the price
at which related parties transact with each other, such
as during the trade of supplies or labor between
departments.
• Transfer prices that differ from market value will be
advantageous for one entity, while lowering the profits
of the other entity.
• Multinational companies can manipulate transfer
prices in order to shift profits to low tax regions.
• To remedy this, regulations enforce an arm's length
transaction rule that requires pricing to be based on
similar transactions done between unrelated parties.

38. Understanding Transfer Price
• Transfer prices are used when individual
entities of a larger multi-entity firm are
treated and measured as separately run
entities.
• It is common for multi-entity corporations to
be consolidated on a financial reporting basis;
however, they may report each entity
separately for tax purposes.

39. Understanding Transfer Price
• A transfer price arises for accounting purposes
when related parties, such as divisions within a
company or a company and its subsidiary, report
their own profits.
• When these related parties are required to
transact with each other, a transfer price is used
to determine costs.
• Transfer prices generally do not differ much from
the market price.
• If the price does differ, then one of the entities is
at a disadvantage and would ultimately start
buying from the market to get a better price.

40. Why Is Transfer Price Used?
• Transfer prices are used when individual entities
of a larger multi-entity firm are treated and
measured as separately run entities.
• While it is common for multi-entity corporations
to be consolidated on a financial reporting basis,
they may report each entity separately for tax
purposes.
• When these entities report their own profits a
transfer price may be necessary for accounting
purposes to determine costs of the transactions.

41. What Are the Benefits of Transfer
Pricing?
• Transfer prices will usually be equal to, or
lower than, market prices which will result in
cost savings for the entity buying the product
or service.
• It increases transparency in intra-entity
transactions.
• Finally, the desired product is readily available
so supply chain issues can be mitigated.

42. What Are the Disadvantages of
Transfer Pricing?
• Since transfer prices are usually equal to, or lower
than, market prices, the entity selling the product
is liable to get less revenue.
• There is also the fact that it is a complicated
process.
• Market prices are based on supply-demand
relationships, whereas transfer prices may be
subject to other organizational forces.
• Additionally, intra-entity animosity might arise,
especially if the transfer price is appreciably
higher or lower than market price as one of the
parties will fell cheated.

43. Ambani announces Rs 75,000 cr
investment in clean energy
• https://economictimes.indiatimes.com/ambani-
announces-rs-75000-cr-investment-in-clean-
energy/articleshow/83806723.cms?utm_source=
newsletter&utm_medium=email&utm_campaign
=NewsDigest&utm_content=recommended&utm
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561473d4905db005b16fcc73fb3107db7f59551ef
72510ce953980af6a6851977e85ede573b319

44. Channels of Distribution
And there role in marketing

45. Marketing channels and distribution
• Marketing channels are set of interdependent
organizations involved in the process of
making the product or service available for
use or consumption.
• They are the set of pathways a product or
service follow after production.

46. Importance of channels
• Decisions about the marketing channels are
among the most critical management decisions.
• They just not serve markets, they make market.
• Channels chosen affects all other marketing
decisions.
• Firm’s sale depends upon training and motivation
of dealers.

47. Classification of channels/channel levels
Channels of distribution
0-level 1-level 2-level 3-level

48. 0-level 1-level 2-level 3-level
manufacture
consumer
Manufacturer manufacturer manufacturer
retailer
consumer
wholesaler
retailer
consumer
wholesaler
jobber
retailer
consumer

49. intermediaries
• Intermediaries are the middlemen and signify
those individuals in the channels that either
take title to take goods and sell at profit.
• They are directly involved in process of flow of
goods from manufacturer to consumer.

50. Types of intermediaries
1. Merchant middlemen
i. Wholesalers
ii. Retailers
2. Agents
i. Brokers
ii. Commission agents
iii. Selling agents
iv. Factors
v. Clearing agents
vi. auctioneer

51. wholesalers
• Functions of wholesalers:
1) Assembling and buying.
2) Warehousing.
3) Transporting.
4) Financing.
5) Risk bearing.
6) Grading, packing and packaging.
7) Dispersing and selling.
8) Providing market information.

52. Services of wholesalers
1.Service to manufacturers-
• Economies of scale.
• Saving in time and trouble.
• Better use of capital.
• Price stabilization.
2. Services to retailers-
i. Saving in cost and time.
ii. Economy in transport an packing.
iii. Better use of limited factors.
iv. Expert knowledge.

53. retailers
• Retailing includes all activities directly related
to the sale of goods and services to the
ultimate consumer for personal or non-
personal use.

54. functions
1. Buying and assembling.
2. Warehousing.
3. Selling.
4. Grading and packing.
5. Financing.
6. Advertising.

55. Services of retailer
• To manufacturer and wholesaler
1. Offer opportunity.
2. A big relief.
3. Provision of information.
4. Reduce the risk of loss.
• To the consumers
1. Largest choice.
2. Relief from storage.
3. Extra service.
4. Supply of information.

56. Agent middlemen
• Agent middlemen are those channel
components who help in the transfer of goods
from the hands of ultimate users without
acquiring the ownership of these goods.
• They operate for a commission.

57. Types of middle agents
1. Commission agents.
2. Brokers.
3. Factors.
4. Auctioneers.
5. Selling agents.
6. Clearing agents.

58. Factors governing the choice of channel of
distribution
FACTORS
Products
factors
Market
factors
Institutional
factors
Unit factors
Environmental factors

59. PRODUCT FACTORS
1. Product nature.
2. Technical nature: simple or complex.
3. The length of product line.
4. The market position: market position of
manufacturer.

60. The market forces-
1. The existing market structure.
2. The nature of purchase deliberations.
3. Availability channel.
4. competitior's channels.

61. Institutional factors
1. The financial ability of channel members.
2. The promotional ability of channel
members.
3. The post-sale service ability.

62. Unit factors
1. The company’s financial position.
2. The extent of market control desired.
3. The company reputation.
4. The company marketing policies.

63. Factors governing the choice of
intermediary
1. Economic factors
2. The legal restrictions.
3. Fiscal policies.
4. The financial position.
5. The facilities available.

64. Integrated Marketing
Communication Strategy

65. Promotion
The way in which information
is provided to the potential
customers.

66. Integrated Marketing
Communications
The concept under which a company
carefully integrates and coordinates its
many communications channels to deliver
a clear, consistent, and compelling
message about the organization and its
products

67. Marketing Communications Mix
Various tools used to pursue
advertising and marketing
objectives.
The communication mix includes:
- Advertising
- Personal Selling
- Sales Promotion
- Public Relations
- Direct Marketing

68. Tool # 1: Advertising
• Reaches large, geographically dispersed
audiences, often with high frequency
• Low cost per exposure, though overall
costs are high
• Consumers perceive advertised goods as
more legitimate
• Builds brand image; may stimulate short-
term sales
• Impersonal; one-way communication

69. Tool # 2: Personal Selling
• Most effective tool for building buyers’
preferences, confidence, and actions
• Personal interaction allows for feedback
and adjustments
• Relationship-oriented
• Buyers are more attentive

70. Tool # 3: Sales Promotions
• May be targeted at the trade or final consumer
• Makes use of a variety of formats: offer,
coupons, contests, etc.
• Attracts attention, offers strong purchase
incentives, dramatizes offers, boosts sagging
sales
• Stimulates quick response
• Short-lived
• Not effective at building long-term brand
preferences

71. Tool # 4: Public Relations
• Highly credible
• Many forms: news stories, news features,
events and sponsorships, etc.
• Reaches many prospects missed via other
forms of promotion
• Dramatizes company or benefits
• Often the most underused element in the
promotional mix

72. Tool # 5: Direct marketing
• Many forms: Telephone marketing, direct
mail, online marketing, etc.
• Four distinctive characteristics:
– Nonpublic
– Immediate
– Customized
– Interactive
• Well-suited to highly targeted marketing
efforts

73. How to Develop
Effective
Communication?

74. Step 1: Identifying the Target Audience
– Affects decisions related to what, how, when, and
where message will be said, as well as who will
say it
Step 2: Determining Communication Objectives
– Increase awareness, Inform, Persuade,
Developing Effective
Communication

75. Step 3: Designing a Message
– Message Format: Design, layout, copy, color,
shape, movement, words, sounds, voice,
body language, dress, etc.
– Message content contains appeals or themes
designed to produce desired results
• Rational appeals
• Emotional appeals
– Love, pride, joy, humor, fear, guilt, shame
Developing Effective
Communication

76. • Step 4: Choosing Media
– Personal communication channels
• Includes face-to-face, phone, mail, and
Internet chat communications
• Word-of-mouth influence is often critical
• Buzz marketing cultivates opinion leaders
– Non-personal communication channels
• Includes media, atmosphere, and events
Developing Effective
Communication

77. Step 5: Selecting the Message Source
Highly credible sources are more persuasive
– A poor spokesperson can tarnish a brand
Step 6: Collecting Feedback
– Recognition, recall, and behavioral measures are
assessed
– May suggest changes in product/promotion
Developing Effective
Communication

79. What is a Marketing Audit?
A marketing audit is a detailed and systematic
analysis of a company's problem areas in terms of
market penetration. The analysis is done
independently by the company itself. The analysis
analyses the market environment, the marketing
strategies, and company objectives to better see
where the company may be falling behind.

80. The salient features or
characteristics of marketing audit
are as follows:
• Marketing audit is a comprehensive study of all marketing
activities.
• It is a systematic-process that follows a step-by-step
procedure.
• It is a periodic activity and must be conducted regularly.
• It is conducted by an independent person who is not from
company.

81. Cont….
• It is a critical review of marketing activities of
company.
• It is an evaluation of marketing activities of company.
• It finds out marketing opportunities and weaknesses
of company.
• It is a preventative and curative marketing medicine.

82. Scope, Areas or Types of
Marketing Audit
There are no fixed guidelines regarding the scope, areas or
types of marketing audit. In other words, the scope of
marketing audit is not fixed. It changes from company to
company. Each company can make its own marketing
audit plan. However, the scope of marketing audit must
include the following areas or types:
The six important types of marketing audit are:
• Marketing Environment Audit.
• Marketing Strategy Audit.

83. Cont….
• Marketing Organization Audit.
• Marketing Systems Audit.
• Marketing Productivity Audit.
• Marketing Function Audit.

84. How to conduct a marketing audit:
• The marketing audit is a fundamental part of the
marketing planning process. It is conducted not only
at the beginning of the process, but also at a series
of points during the implementation of the plan.
The marketing audit considers both internal and
external influences on marketing planning, as well
as a review of the plan itself.

85. Cont….
Lets consider the marketing audit under three key
headings:
• The Internal Marketing Environment.
• The External Marketing Environment.
• A Review of Our Current Marketing Plan.

86. Cont….
• There are a number of tools and audits that can be used, for
example SWOT analysis for the internal environment, as well
as the external environment. Other examples
include PEST and Five Forces Analyses, which focus solely on
the external environment.
• In many ways the marketing audit clarifies opportunities and
threats, and allows the marketing manager to make
alterations to the plan if necessary.

87. 1.The Internal Marketing
Environment.
What resources do we have at hand? (i.e. The FIVE
'M's):
• MEN (Labour).
• MONEY (Finances).
• MACHINERY (Equipment).
• MINUTES (Time).
• MATERIALS (Factors of Production).

88. 2. The External Marketing
Environment:
• As a market orientated organisation, we must start by
asking - What is the nature of our 'customer?' Such as:
• Their needs and how we satisfy them.
• Their buyer decision process and consumer behaviour.
• Their perception of our brand, and loyalty to it.
• The nature of segmentation, targeting and positioning in
our markets.
• What customers 'value' and how we provide that 'value?.'
• What is the nature of competition in our target markets?

89. Cont….
• Our competitors' level of profitability.
• Their number/concentration.
• The relative strengths and weaknesses of competition.
• The marketing plans and strategies of our competition.
• What is the cultural nature of the environment(s)?
• Beliefs and religions.
• The standards and average levels of education.

90. THANK YOU