Marketing Management MAKUT MBA Second Sem

MODULE 1

Chapter 1: Introduction to Marketing Management

1.1.

Marketing

13

1.1.1.

Meaning and Definition of Marketing

13

1.1.2.

Nature of Marketing

13

1.1.3.

Scope of Marketing

14

1.1.4.

Core Concepts of Marketing

15

1.1.4.1.

Needs, Wants and Demands

15

1.1.4.2.

Goods-Services Continuum

15

1.1.4.3.

Products

16

1.1.4.4.

Utility

16

1.1.4.5.

Customer Value

17

1.1.4.6.

Cost, Satisfaction and Quality

17

1.1.4.7.

Exchange and Transactions

18

1.1.4.8.

Relationship Marketing & Networks

18

1.1.4.9.

Market

18

1.1.4.10.

Marketers

18

1.1.5.

Functions of Marketing

19

1.1.6.

Importance of Marketing

20

1.1.7.

Selling versus Marketing

21

1.2.

Marketing Management

22

1.2.1.

Introduction

22

1.2.2.

Objectives of Marketing Management

22

1.2.3.

Marketing Management Tasks/ Functions of Marketing Management

22

1.2.4.

Process of Marketing Management

23

1.3.

Target Marketing: STP Approach

24

1.3.1.

Introduction

24

1.3.2.

Steps in Target Marketing

24

1.4.

Market Segmentation

25

1.4.1.

Meaning and Concept of Market Segmentation

25

1.4.2.

Various Bases for Market Segmentation

26

1.4.3.

Identification of Market Segments: Process of Market Segmentation

28

1.4.4.

Factors Influencing Segmentation

30

1.4.5.

Importance of Market Segmentation

30

1.5.

Targeting: Target Market

31

1.5.1.

Concept of Target Market

31

1.5.2.

Process of Targeting the Market

31

1.5.3.

Evaluating Market Segments to Target: Bases for Identifying Target Customers

31

1.5.4.

Selecting Target Markets: Target Market Strategies

32

1.5.5.

Limited Market Coverage Targeting

32

1.5.6.

Full Market Coverage Targeting

33

1.5.6.1.

Mass Marketing/Undifferentiated Marketing

33

1.5.6.2.

Segment Marketing/Differentiated Marketing

33

1.5.6.3.

Niche/Concentrated Marketing

33

1.5.7.

Micro Marketing

34

1.5.7.1.

Local Marketing

34

1.5.7.2.

Individual Marketing and Customisation

34

1.5.8.

Criteria for Selection of Target Market

35

1.5.9.

Benefits of Targeting

36

1.5.10.

Difference between Segmentation and Market Targeting

36

1.6.

Positioning and Differentiation

37

1.6.1.

Concept of Differentiation and Positioning

37

1.6.2.

Tasks Involved in Positioning: Process of Positioning

37

1.6.3.

Importance of Positioning

38

1.6.4.

Positioning Strategies

38

1.6.5.

Differentiation Strategies

39

1.6.6.

Value Proposition & Unique Selling Proposition (USP)

41

1.7.

Marketing Concepts/ Evolution of Marketing

42

1.7.1.

Introduction

42

1.7.2.

Production Concept

42

1.7.3.

Product Concept

43

1.7.4.

Selling Concept

43

1.7.5.

Marketing Concept: Modern Concept of Marketing

43

1.7.6.

Societal Marketing Concept

44

1.7.7.

Transactional Marketing Concept

45

1.8.

Exercise

45

Chapter 2: Marketing Planning
and Strategy

2.1.

Marketing Planning

47

2.1.1.

Meaning and Definition of Marketing Planning

47

2.1.2.

Concepts/Components of Marketing Planning

47

2.1.3.

Steps Involved in Marketing Planning

48

2.1.4.

Importance of Marketing Planning

49

2.2.

Marketing Strategy

50

2.2.1.

Introduction

50

2.2.2.

Elements of Marketing Strategy

50

2.2.3.

Process of Developing Marketing Strategy

51

2.2.4.

Essentials of Marketing Strategy

52

2.3.

Marketing Mix

53

2.3.1.

Introduction

53

2.3.2.

Elements of Marketing Mix

53

2.3.2.1.

4Ps/Traditional Marketing Mix/4P’s of Marketing

53

2.3.2.2.

7Ps/Service Marketing Mix (7P’s)

54

2.3.2.3.

4C’s of Marketing

56

2.3.3.

Factors Affecting Marketing Mix

57

2.3.4.

Importance of Marketing Mix

58

2.4.

Marketing Information System (MkIS)

58

2.4.1.

Introduction

58

2.4.2.

Components of MkIS

58

2.4.2.1.

Internal Marketing Information

59

2.4.2.2.

Marketing Intelligence System

59

2.4.2.3.

Marketing Research

60

2.4.2.4.

Analysis and Processing of Information

60

2.4.3.

Importance of MkIS

60

2.5.

Marketing Environment

61

2.5.1.

Introduction

61

2.5.2.

Various Environmental Factors Affecting the Marketing Functions/Factors Affecting Marketing Environment

61

2.5.3.

Internal Marketing Environment

61

2.5.4.

External Marketing Environment

62

2.5.4.1.

Analysing the Organisation’s Micro Environment

62

2.5.4.2.

Company’s Macro Environment

63

2.5.5.

Differences between Macro and Micro Environment

65

2.5.6.

Significance of Marketing Environment Analysis

65

2.5.7.

Methods and Techniques used for External Environment Analysis

66

2.5.7.1.

ETOP Study

66

2.5.7.2.

QUEST Analysis

67

2.5.7.3.

SWOT Analysis

68

2.5.7.4.

PESTEL/ PEST Analysis

70

2.6.

Marketing Plan

70

2.6.1.

Introduction

70

2.6.2.

Nature of Marketing Plans

71

2.6.3.

Elements of Marketing Plan/Contents of Marketing Plans

71

2.6.3.1.

Executive Summary

71

2.6.3.2.

Situation Analysis

72

2.6.3.3.

SWOT Analysis

72

2.6.3.4.

Marketing Strategy

72

2.6.3.5.

Financials/Financial Projections

72

2.6.3.6.

Control/Marketing Control

72

2.6.4.

Importance of Marketing Plan

73

2.7.

Corporate Level Strategies

73

2.7.1.

Introduction

73

2.7.2.

Types of Corporate Level Strategies/Directional Strategy

74

2.7.2.1.

Expansion/Growth Strategies

74

2.7.2.2.

Stability Strategy

75

2.7.2.3.

Retrenchment Strategy

75

2.7.2.4.

Combination Strategy

76

2.8.

Strategic Business Unit (SBU)

77

2.8.1.

Concept of Strategic Business Unit (SBU)

77

2.8.2.

Nature of SBU

78

2.8.3.

Merits of SBU

78

2.8.4.

Demerits of SBU

78

2.9.

Strategic Choice

78

2.9.1.

Introduction

78

2.9.2.

Process of Strategic Choice

79

2.9.3.

Criteria for Strategic Choice

80

2.9.4.

Tools and Techniques of Strategic Choice

80

2.9.4.1.

BCG model

80

2.9.4.2.

Product-Market Grid

82

2.9.5.

Porter’s Five Forces Model

83

2.9.5.1.

Rivalry inside Industry

84