The Marketing Management

1. Target Market

• Definition: The specific group of consumers that a business focuses its marketing efforts on.
• Example: Targeting youth, women, teenagers, or professionals in a certain field like doctors or engineers.

2. Mass Market

• Definition: A broad, undifferentiated market that targets all consumers rather than specific segments.
• Example: Products like milk or bread, which are meant for general consumption without catering to a particular segment.

3. Marketing Mix

• Definition: A set of factors controlled by a company to influence consumers’ purchasing decisions. It’s foundational to developing marketing strategies.
• Origin: Coined by Professor Neil Borden in 1964, and later expanded to include the 4Ps by Professor Jerome McCarthy in 1960.
• 4Ps of Marketing:
  • Product: What you’re selling.
  • Price: How much the product costs.
  • Place: Distribution channels used to sell the product.
  • Promotion: Marketing communication strategies used to reach the target market.

4. Additional P's in Marketing

• Over time, the 4Ps have been expanded, especially with the rise of digital and service industries.

5Ps

• 5th P: Often includes Packaging, People, Positioning, or Performance.
• Example: In digital marketing, “Performance Marketing” is a focus area that tracks measurable outcomes.

6Ps

• 6th P: Can include Political Power, Public Opinion, or Production.

7Ps

• Service Industry Focus: Extends beyond the 4Ps to include People, Process, and Physical Evidence.
• Example: A haircut is a service, where aspects like the barber's skill (People), the hygiene of the salon (Process), and client testimonials (Physical Evidence) are essential for quality.

5. Business Market vs. Consumer Market

• Business Market: Focuses on B2B transactions, where products are sold for business purposes, not for direct consumption.
• Example: A soap manufacturer buying coconut oil from a producer for soap production.
• Consumer Market: B2C transactions where products are sold for end-consumer use.
• Example: Retailers selling soap directly to individuals.

6. Customer vs. Consumer

• Customer: The individual or organization that purchases a product.
• Consumer: The end-user of the product, which may or may not be the customer.
• Example: A parent buying toothpaste for their children is the customer, while the children are the consumers.

7. Customer Relationship Management (CRM)

• Definition: Techniques for managing a company’s relationship with current and potential customers, fostering loyalty, and maintaining long-term engagement.
• Goal: To build lasting relationships with customers, beyond merely selling products or services.

8. Social Marketing

• Definition: Marketing that promotes social causes and contributes to societal well-being.
• Example: Campaigns focusing on public health, environmental protection, or social justice.

9. Digital Marketing

• Definition: Marketing that uses digital channels to deliver value and reach consumers in ways traditional marketing cannot.
• Example: Utilizing social media platforms like Facebook, Twitter, Instagram, and YouTube to reach a broad audience.

10. Digital Marketing Platforms

• Social Media: Channels like Facebook and Instagram provide tools for connecting with consumers and enhancing brand reach.
• Other Digital Channels: Include search engine marketing, content marketing, and email marketing.

1.5.2 Introduction to the Marketing Management

Managerial Definition of Marketing

One recognized managerial definition of marketing, provided by Philip Kotler, is:

"Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational goals."

Key Components in Kotler’s Definition

1. Process-Oriented: Marketing management emphasizes a structured process (conception, pricing, promotion, distribution).
2. Marketing Mix: The 4 Ps (Product, Price, Place, Promotion) are crucial in creating a strategic framework to reach customers.
3. Value of Ideas, Goods, and Services: This definition recognizes that ideas (e.g., social causes like blood donation) and services (e.g., Spotify's streaming) can also be marketed alongside goods.
4. Creating Exchanges: Marketing creates exchanges that meet the needs of both individuals and organizations.
5. Organizational and Individual Goals: For an exchange to be successful, it must satisfy the organization (profit, market share, etc.) and the individual (utility, satisfaction).

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Differences Between Marketing and Marketing Management

1. Focus on Organization: Marketing exists to meet societal needs, whereas marketing management narrows this to organizational objectives (e.g., profit or market share).
2. Planning and Execution: Marketing management requires careful planning and execution to align marketing activities with organizational goals.
3. Value for Both Parties: The organization gets value (profits, brand loyalty), and the customer gains satisfaction from products, services, or ideas.

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Summary of Key Marketing Principles

1. Customer-Centric: The core philosophy is that customer satisfaction should be the focus of all marketing activities.
2. Anticipating Needs: Marketers must identify and anticipate customer needs, using the 4 Ps (and sometimes up to the 7 Ps in services).
3. Profit Orientation: For private sector organizations, profitability is typically a key focus, though public and non-profit sectors can also adopt marketing without profit being the primary goal.
4. Relationship Building: Customer Relationship Marketing (CRM) focuses on building and maintaining relationships, fostering customer loyalty.
5. Organizational-Wide Philosophy: Customer satisfaction should be embraced across all levels, not solely by the marketing team.

1.5.3 What can be Marketed?

Marketing is versatile and encompasses a vast range of things that can satisfy human needs or wants. Essentially, anything under the sun that holds value for someone can be marketed. Below is a breakdown of different elements that can be marketed with examples for clarity.

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1. Products

Definition: Tangible items that fulfill a specific need or want.

• Example: Electronics like smartphones, fashion products, and household goods.

2. Services

Definition: Intangible offerings that provide a benefit or solution to customers.

• Example: Streaming services like Netflix or Spotify, which provide on-demand access to media.

3. Events

Definition: Special occurrences or organized activities that can be promoted.

• Example: Music concerts, art exhibitions, and cultural festivals.
• Explanation: For instance, a concert or a city-wide event can be marketed to attract attendees, creating an experience for the audience.

4. Experiences

Definition: Memorable activities or emotions associated with a place or service.

• Example: Theme parks like Wonderla or Disney World market the experience of thrill rides and family fun.
• Explanation: Marketing experiences appeals to customers looking for activities to make their vacation enjoyable, whether through adventure or relaxation.

5. Places

Definition: Destinations that attract tourists or visitors by offering unique environments or attractions.

• Example: Hotels, scenic locations, vacation properties, or restaurants.
• Explanation: Many vacation destinations promote either relaxing atmospheres or numerous daily activities, catering to different vacation preferences.

6. People (Personal Branding)

Definition: Promoting an individual, often a public figure or celebrity, to enhance their public image or value.

• Example: Celebrities like actors, athletes, and influencers market themselves for endorsements and brand partnerships.

7. Properties

Definition: Real estate or any physical asset that holds value.

• Example: Residential projects like 3BHK or 4BHK apartments.
• Explanation: Builders often market different properties by highlighting location, amenities, and lifestyle benefits to attract potential buyers or investors.

8. Organizations

Definition: Companies or institutions that promote themselves to attract investors, employees, or customers.

• Example: Major brands like Amazon and SBI mutual funds promote their brand value to build trust with consumers and investors.

9. Ideas

Definition: Concepts or messages that aim to change beliefs or behaviors.

• Example: Campaigns promoting savings, environmental conservation, or social causes.
• Explanation: For example, mutual funds not only market products but also the concept of saving for the future.

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Examples of Marketing Multiple Elements Together

1. SBI Mutual Funds:
   • Organization: SBI markets itself as a trusted financial institution.
   • Product: They market mutual funds as a financial product.
   • Idea: They emphasize the importance of saving for the future.
2. Insurance Products:
   • Types of Insurance: Today, there are multiple insurance types—life, vehicle, property, and gadget insurance.
   • Awareness Marketing: Companies not only sell policies but also promote the necessity of protection against unforeseen circumstances.
   • Explanation: Health and life insurance campaigns are common, aiming to reassure individuals and families that they will be financially secure.

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Conclusion

Ultimately, anything that fulfills a need or want can be marketed. Whether it’s tangible like a product, intangible like a service, or even an idea, marketing enables businesses and organizations to communicate the value of their offerings effectively.

1.5.4 Social Marketing and Relationship Marketing

Marketing is not only about driving sales and achieving profit; it can also positively impact society. There are two key concepts that illustrate this broader approach:

1. Societal Marketing: Focuses on the well-being of both consumers and society at large.
2. Relationship Marketing: Centers on building long-term relationships with customers to foster loyalty.

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1. Societal Marketing

Definition: Societal marketing is a concept that emphasizes delivering value to consumers in a way that also benefits society. It goes beyond traditional marketing by addressing social well-being and environmental impacts.

Key Aspects:

• Understanding Needs and Interests: Identifying the needs, wants, and interests of the target market.
• Efficient Satisfaction: Providing desired products or services more effectively than competitors.
• Societal Well-being: Ensuring that the satisfaction of consumer needs does not compromise the well-being of society.

Examples and Explanations:

1. Avoiding Harmful Products: Marketing should not promote products that may lead to addiction or health issues (e.g., tobacco, alcohol, or drugs), as these do not align with societal well-being.
2. Product Quality and Health: Reducing essential ingredients to cut costs can negatively impact consumers’ health. For example, lowering oil content in soap to reduce costs might dry out consumers' skin, which is not beneficial for society.
3. Environmental Impact: Companies should avoid materials or production methods with high carbon footprints (e.g., excessive use of petrol or single-use plastics), as these harm the environment and society.

Origin and Purpose:

The concept of societal marketing was introduced by Kotler and Zaltman in 1971, proposing that marketing could help solve social and health problems. By influencing behavior, marketing can encourage people to adopt healthier and socially responsible habits.

Applications:

1. Public Health: Campaigns against smoking, unsafe driving, and teenage pregnancies are examples of societal marketing aimed at improving public health and safety.
2. Environmental Conservation: Campaigns that discourage single-use plastics or promote recycling efforts contribute to the well-being of society.

Conclusion:

Societal marketing demonstrates that marketing can serve not only to promote products but also to encourage positive societal change. For instance, it can help prevent issues like traffic accidents or promote lifestyle changes that benefit the health of individuals and society as a whole.

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2. Relationship Marketing

Definition: Relationship marketing is an approach focused on building a close, long-term relationship with customers, often referred to as customer engagement. It prioritizes customer loyalty and satisfaction, which encourages repeat business.

Importance:

• Repeat Business: Especially in service industries, building loyalty is essential for ongoing business.
• Cost-Effectiveness: Acquiring new customers is often more challenging and costly than retaining existing ones. Loyal customers bring recurring revenue and can become advocates for the brand.

Elements of Relationship Marketing:

1. Customer Satisfaction: Satisfied customers are more likely to stay loyal to a brand.
2. Customer Connection: Engaging with customers creates a deeper bond that goes beyond product satisfaction, encouraging them to return.

Concept by Tom Peters:

Tom Peters, a renowned management expert, described relationship marketing as the “relentless pursuit of an almost familial bond between the customer and the product.” Today, brands succeed not only by delivering quality products but also by fostering a meaningful connection with their audience.

Why Relationship Marketing Matters:

• Product Substitution: In a world where many products (e.g., soap, toothpaste) have substitutes, customers are motivated to stick with a brand if they feel a connection.
• Brand Loyalty: Even if similar options are available, loyal customers prefer to support brands they connect with personally.

Techniques to Strengthen Relationships:

• Personalized communications, loyalty programs, and consistent customer support help build a relationship with customers, ensuring they feel valued and appreciated by the brand.