We provide complete marketing management notes. Marketing management notes study material includes marketing management book, courses, case study, syllabus, question paper, MCQ, questions and answers and available in marketing management pdf form. Marketing is designed to bring about desired exchanges with target audiences for the purpose of mutual gain.
Marketing activities are concerned with the demand stimulating and demand fulfilling efforts of the enterprise. Download free ebooks at bookboon. Marketing management can be described as the complete process of planning new product development, advertising, overseeing.
If we take a example to understanding of marketing management then market management is creating an advertising plan and implementing that plan. Customer insights comprise the real value of marketing info they are fresh understandings of customers and the marketplace derived from marketing information that become the basis for creating customer value and relationships.
Objective 2: Marketing information system Companies must design effective marketing information systems to provide managers with right info and help them use it to create customer value. Marketing information system MIS consists of people and procedures dedicated to assessing information needs, developing the needed information, and helping decision makers to use the information to generate and validate actionable customer and market insights.
A well- constructed MIS provides a balance of information users would like to obtain against what they really need and is feasible to deliver.
MIS should help avoid having too much or too little info and provide decision makers with what they need to improve understanding of consumers. Lastly, the company needs to carefully consider the costs of obtaining, storing and analysing the info versus the value it provides.
Marketing information can be developed from the following sources: o Internal databases - electronic collections of customer and market information obtained from data sources within the company network providing powerful insights and competitive advantage.
They can be accessed faster and cost less than other sources, but info may be incomplete or wrong when collected for other purposes , such data quickly becomes old and complex techniques are required to update and manage such large amounts of info. The goal of the technique is to improve strategic decision making by continuously assessing opportunities and threats.
It can help gain knowledge about how consumers talk about and connect to the brand. Chief listening officers are responsible for reading through customer online chatter about brand and providing the info to decision makers. Intelligence about competitors is collected from people inside the company as well as partners, consumers and online databases. However, some techniques may involve questionable ethics, thus legitimate sources should be used to avoid this.
Objective 3: Marketing research Marketing research - the systematic design, collection, analysis and reporting of data relevant to a specific marketing situation facing an organization.
Some companies have their own departments, whereas others hire external consultants for marketing research.
The following figure underlines the 4 steps of marketing research process: 1. Defining the problem and objectives: managers who understand the decision that requires info and researchers that know how to best obtain it must work together. Objective of exploratory research - marketing research to gather preliminary information that will help define problems and suggest hypotheses. Objective of descriptive research - marketing research to better describe marketing problems, situation or markets, such as the market potential for a product or the demographics and attitudes of consumers.
Objective of casual research - marketing research to test hypotheses about cause-and-effect relationships. Developing research plan: the researchers must determine what exact information is needed and compile a plan for gathering it. Such a plan includes sources, approaches, methods and instruments that are to be used. The research objectives identified earlier are to be transformed into specific needs for info.
The plan should be presented as a written proposal especially for large and complex projects. The research plan should include gathering both: a. Secondary data - information that already exists somewhere and has been collected for another purpose. Primary data - information collected for the specific purpose at hand.
Implementing the plan: this step involves collecting, processing and analysing all the information, checking data for accuracy and completeness. Secondary data can be obtained faster, is cheaper than primary and can include data that company would not be able to collect on its own. However, secondary data is almost always incomplete, some information may not be usable, and therefore it needs evaluation of relevance, accuracy, up-to-date status and impartiality.
Research approaches: o Observational research - gathering primary data by observing relevant people, actions and situations. Also the info gained is sometimes more insightful than that gathered with formal and structured research listening to online conversations. Ethnographic research - a form of observational research that involves sending trained observers psychologists and anthropologists to watch and interact with consumers in their natural environment.
Nowadays, many researchers also use ethnography which involves observing customers on the Internet. This helps identify online and offline buying motives.
Such methods yield details that cannot be gathered from traditional approaches, like unexpressed needs and unconscious actions.
However, attitudes and private as well as long-term behaviour are often difficult to observe and the gathered data may be hard to interpret. Thus, such research is used with other methods. This method is suited for gathering descriptive data and is most widely used. This approach is flexible as it can be used for different kinds of info in different situations.
However, the major problems with this approach are subjective, dishonest answers, or even lack thereof provided by respondents. This works best for exploratory research and tries to explain cause-and-effect relationships. Contact methods: o Mail, telephone, personal interviewing the following table presents an overview of strengths and weaknesses of the contact methods. The moderator focuses the discussion on important issues encouraging a free and easy discussion.
The researchers observe from behind a one-way mirror or recordings to draw conclusions. Some challenges include high costs and thus low number for generalization, danger of having dishonest or bias participants.
To overcome these, some companies use immersion groups where consumers interact directly with product designers, or researchers change environment of focus groups. Online research can take many forms, from online discussions to following click streams, and is especially suitable for quantitative research.
It also has many advantages to traditional phone and personal approaches such as speed of distribution and lower costs independent of sample size, as well as better targeting. Internet surveys are more interactive, easier to complete and less intrusive allowing to reach customers that usually would not respond. Internet also allows gathering qualitative info through blogs, social networks and focus groups. Online focus groups is the primary qualitative data gathering approach where a small group of people online with a trained moderator to chat about a product, service or organization helping gain qualitative insights about consumer attitudes and behaviours.
Some drawbacks of internet research include controlling who is in the sample. Companies develop own social network or use existing panels to improve that. Sampling plan: o Sample - a segment of the population selected for marketing research to represent the population as a whole.
Ideally, the sample should provide opportunity for researcher to make estimates about the whole target population. When the sample is designed, 3 decisions need to be made: who is to be studied, what is the sample size, and how the participants should be chosen. The following table provides an overview of the types of samples: o i. Research instruments: o Questionnaires most common and flexible instrument that can be administered over different channels.
The former provide good answers for quantitative research that are easy to record and interpret, whereas the latter are best for exploratory research trying to find out what people think, not how many think in a certain way. When putting together a questionnaire, researchers should take care of wording and ordering of the questions.
It could be recording purchases, or who is watching a certain program, or using neuromarketing to track brain activity measuring involvement and emotional responses to find out how consumers react to brand and what is related to purchasing behaviours. Interpreting and reporting the findings: this includes drawing conclusions and reporting them to management focusing on important findings and useful insights for the given situation. Marketing managers should also contribute to interpretations to broaden its scope.
Objective 4: Analysis and use marketing information There are problems with how to best analyse and use customer data that arise from capturing info at every touch point with customer but having it scattered across the organization. To overcome such an issue, companies use customer relationship management CRM - managing detailed information about individual customers and carefully managing customer touch points to maximize customer loyalty.
It consists of complex software tools that integrate customer information from all sources. CRM analysts use this info to create data warehouses and employ data mining techniques to unveil and interpret customer info stored there leading to uncovering marketing opportunities. The purpose of such warehouse is not only to store the information but have a central accessible location for it. CRM helps develop and maintain deeper relations with customers serving their needs more effectively and being able to employ better targeting.
However, CRM can be expensive and risky, and should not be viewed as panacea for relationships, but marketer should focus on building them with the help of the software. Distributing and using marketing information needs to be taken care of by providing regular reports and updates, entering it into a database to have a quick and user- friendly way to access it anytime.
Many companies use intranet and internal CRM to facilitate the process. Additionally, companies allow supplier, customer and etc. Objective 5: Marketing information issues Marketing research in small businesses and non-profit organizations: many of the techniques discussed above can be used by small businesses and there is no need to always engage professionals.
Secondary data, observation, survey and experiments can be used with organizations with small budgets. International marketing research: researchers face different problems as markets are diverse in different countries.
It can be difficult to obtain reliable secondary data, and gathering primary data may also be challenging due to differences in socioeconomic sources. In some countries relying on mail, telephone and internet is not possible due to poorer infrastructure.
Additionally, language is an obstacle, as well as differences in attitudes and cultures. Public policy and ethics in marketing research: misuse of marketing can harm and annoy customers. Additionally, shoppers what to receive personalized products which contradicts privacy concerns. Therefore, there are codes of conduct from several organizations, but researcher need to be aware that they bear responsibility for policing conduct and reporting of the findings to protect consumers.
Consumer markets and buyer behaviour The consumer market consists of all the individuals and households that buy or acquire goods and services for personal consumption. Consumer buyer behaviour is influenced by four key sets of buyer characteristics: cultural, social, personal, and psychological. Buying behaviour may vary greatly across different types of products and buying decisions. Example GoPro: GoPro engages that customers to become dedicated to the brand and encourages video sharing. This leads to very fast growth of the company.
The cameras offered by GoPro combine great quality and attractive price. The company focuses on what the cameras allow the customers do in terms of capturing experiences.
GoPro s success is based on understanding customers needs and motivations and turning them into loyalty and enthusiasm by allowing sharing emotions. Objective 1: Consumer market and model of consumer behaviour Consumer buyer behaviour - the buying behaviour of final consumers individuals and households that buy goods and services for personal consumption.
All the individuals and households that buy or acquire goods and services for personal consumption constitute a consumer market. It is important to examine factors that affect consumer behaviour. Model of consumer behaviour: Marketers try to study why consumers buy, which can be difficult as sometimes it is unexplainable by consumers themselves.
Therefore, the central question described by the model is how consumers respond to various stimuli used in the company s marketing. Marketers want to find out how the stimuli are processes into responses. Cultural factors: they have a deep influence on consumer behaviour. Cultural influences vary greatly across and within countries. Marketers aim at discovering cultural shifts to create new products that may be wanted. Subcultures include nationalities, religions, racial groups and geographic regions.
It is measured by a combination of income, occupation, education, wealth and etc. Social classes show distinct product and brand preferences. Social factors: o Group - two or more people who interact to accomplish individual or mutual goals. Marketers try to identify these. Marketers try to identify and direct their efforts towards them.
Buzz marketing involves enlisting or even creating opinion leaders to spread the word about products. These are used by marketers to promote products and build customer relationships. Although most brands have a social media presence, this requires marketers to be careful as they are hard to measure and control. Moreover the typical roles of husbands and wives are shifting and marketers need to adapt.
In addition, children have a strong influence on all family decisions. It profiles the whole pattern of interactions with the world. It can help observe changes in values and buying behaviours. Brands are also supposed to have personalities attributed to them by marketing and consumers are likely to choose those that match their own. Psychological factors: o Motive - need that is sufficiently pressing to direct the person to seek satisfaction of the need.
There are 2 most popular theories of human motivation. This influences a person in different ways as perceptions are diverse because of the following perceptive processes.
Selective distortion - tendency of people to interpret information in a way that will support what they already believe. Selective retention means that consumers are more likely to memorize positive characteristics of their favoured brand, and forget such of a competing brand. Therefore, marketers worry whether consumers will at all perceive their offers. Consumers are worried whether they are affected by marketing messages without knowing it subliminal advertising - as there are so many out there.
Drive describes an internal stimulus calling for action and it turns into a motive once directed at stimulus object. Cues determine when, where and how a person responds influencing response in interest to buy the product. They are hard to change and thus, companies try to fit their products into existing ones.
Objective 3: Types of buying decision behaviour and the buyer decision process Types of buying decision behaviour: 1. Complex buying behaviour - consumer buying behaviour in situations characterized by high consumer involvement expensive, risky, rare product in a purchase and significant perceived differences among brands.
Buyer goes through a learning process developing attitudes and beliefs toward products. Dissonance-reducing buying behaviour - Consumer buying behaviour in situations characterized by high involvement but few perceived difference among brands. Customers may respond to price and convenience. No extensive search occurs, and buyers are not highly committed to any brands. Variety-seeking buyer behaviour - consumer buyer behaviour in situations characterized by low consumer involvement but significant perceived brand differences.
Consumers switch brands often and try something different. In such situations marketing strategy of leaders and minors differs.
The buyer decision process: Speed of passing through the stages may differ, and some stages may be skipped with routine purchases. Need recognition - the first stage of the buyer decision process, in which the consumer recognizes a problem or need, triggered by either internal or external stimuli.
Marketer should research what needs arise and what lead to products. Information search - the stage of the buyer decision process in which the consumer is aroused to search for more information the consumer may simply have heightened attention or may go into an active information search.
Info is obtained from several sources: personal, commercial, public, experiential. Personal are the most effective sources as they evaluate product for the buyer, although most info is received commercially. Companies should make information available so that consumers are able to gain knowledge about the brand. Evaluation of alternatives - the stage in which the consumer uses information to evaluate alternative brands in the choice set.
Several evaluation processes are involved and marketers need to study buyers and attributes of products to identify how evaluative processes occur and how decisions can be affected. Purchase decision - the buyer s decision about which brand to purchase.
Post-purchase behaviour - the stage in which the consumer takes further action after purchase based on their satisfaction or dissatisfaction with a purchase. Satisfaction is determined by expectations and perceived performance of the product. Marketers should try to satisfy customers and can go beyond that by delighting them.
By studying the whole process marketers are able to help consumers go through it. Objective 4: Adoption and diffusion process for new products New product - good, service or idea that is perceived by some potential customers as new. Adoption process - the mental process through which an individual passes from first hearing about an innovation to final adoption.
Adoption is when one begins to regularly use the product. Stages in adoption process: 1. Awareness of new product, but lack of info 2. Interest in seeking info about product 3.
Evaluation of the product 4. Trial of the new product on a small scale 5. Adoption in terms of decision to make full and regular use of the product Marketers should help consumers move through these stages. Individual differences in innovativeness: some are consumption pioneers or early adopters, whereas others lag adoption. This suggests that innovative companies should identify characteristics of innovators and early adopters and target them with marketing. They are the following.
Relative advantage: whether innovation is superior compared to existing products 2. Compatibility: whether innovation fits existing values and experiences of potential consumers 3. Divisibility: whether innovation may be tried on limited basis 5.
Business markets and buyer behaviour The business market comprises all organizations that buy goods and services for use in the production of other products and services or for the purpose of reselling or renting them to others at a profit.
As compared to consumer markets, business markets usually have fewer but larger buyers. Business buyers make decisions that vary with the three types of buying situations: straight rebuys, modified rebuys, and new tasks. The business buying decision process itself can be quite involved, with eight basic stages.
The institutional markets consists of schools, hospitals, prisons, and other institutions that provide goods and services to people in their care. Example KarmSolar: KarmSolar faced challenges of convincing customer that solar energy is cheaper than alternatives and competing with heavily governmentally subsidized conventional energy sources. It built long lasting relationships with clients and providing them with comprehensive solutions and personal approach providing not only energy but solutions and explanations.
Objective 1: Business markets Business buyer behaviour - the buying behaviour of organizations that buy goods and services for use in the production of other products and services that are sold, rented or supplied to others. Business buying process - the decision process by which business buyers determine which products and services their organizations need to purchase and then find, evaluate and choose among alternative suppliers and brands.
B2B marketers attempt to understand the concepts and build profitable relationships with business buyers. The following provides an overview of the differences of business markets compared to consumer markets. Derived demand is the demand that ultimately comes from derives from the demand for consumer goods and constitutes business demand.
Business markets display unrealistic and fluctuating demand that changes quicker and more. Objective 2: Business buyer behaviour Model of business buyer behaviour: In organizations buying comprises of buying centre and buying decision process. Major types of buying situations: 1. Straight rebuy - a business buying situation in which the buy routinely reorders something without any modifications. Modified rebuy - a business buying situation in which the buyer wants to modify the product specifications, prices terms or suppliers.
New task - a business buying situation in which the buyer purchases a product or service for the first time. Systems selling or solutions selling - buying a packaged solution to a problem from a single seller, thus avoiding all the separate decisions involved in a complex buying situation.
Participants in the business buying process: Buying centre - all the individuals and units that play a role in the purchase decision making process comprise the decision making unit of a buying organization. The centre is not fixed and formally identified, but is flexible and roles can be fulfilled by different people. The center includes the following roles: 1. Users - members of the buying organization, who will actually use the purchased product or service. Buyers - people in an organization s buying centre, who actually make the purchase.
The buying centre concept is a challenge for marketing, as marketers need to learn who participates in the process and what the extent of their power is. Some participants are formal and some are informal and less obvious. Objective 3: Business buying process and e-procurement Buying business process: 1. Problem recognition when someone in the company recognizes a problem or a need that can be met by acquiring a good or a service.
In advertising business marketers make potential customers aware of advantages of products and services. General need description - A buyer describes the general characteristics and quantity of a needed item, often by working with other departments. Product specification - the buying organization decides on and specifies the best technical product characteristics for a needed item.
Product value analysis can be used to reduce costs by studying how components can be redesigned or standardized. Supplier search - the buyer tries to find the best vendors by putting together a list through directory or internet search and contacting companies. Proposal solicitation - the buyer invites qualified suppliers to submit proposals. Supplier selection - the buyer reviews proposals and selects a supplier or suppliers based on a variety of qualities such as reputation, on-time delivery, prices, ethics etc.
Order-routine specification - the buyer writes the final order with the chosen suppliers, listing the technical specifications, quantity needed, and expected time of delivery, return policies and warranties. Many buyers use vendor- managed inventory, where ordering and inventory becomes responsibility of suppliers.
Performance review - the buyer assesses the performance of the supplier and decides to continue, modify or drop the arrangement. E-procurement - purchasing through electronic connections between buyers and sellers usually online. Is gives buyers access to more suppliers, lower costs and makes ordering easier. Marketers can connect customers online and maintain relationships.
E-procurement yields many benefits, such as reducing transaction costs, increasing efficiency, eliminating paperwork and freeing purchasers from spending time doing it.
Objective 4: Institutional and government markets Institutional markets are school, hospitals, nursing homes, prisons and other institutions that provide goods and services to people in their care. Each institutions needs different resources, has limited budgets and captive patrons. Separate divisions are often set up to market products for institutions. Government markets are governmental units federal, state and local that purchase or rent goods and services for carrying out the main functions of the government.
IN many countries they are major buyers of goods and services. Governments often require suppliers to submit bids and pay on negotiate contract basis.
Domestic suppliers are usually favoured. Governments are affected by the same factors, and additionally require more paperwork as they are subject to public view.
Government selling requires less marketing efforts as spending is determined by elected officials where price is emphasized and differentiation is not that important. Customer-driven marketing strategy There are 4 major elements of customer-driven marketing strategy: segmentation, tapering, differentiation, and positioning.
There are multiple ways to segment the market which can be used together. Target market is a set of buyers sharing common needs or characteristic that the company decides to serve. Target marketing can be carried out on 4 levels and best strategy depends on resources. A position of a product consists of a sophisticated set of perceptions, impressions and feelings of consumers for the products compared to a competing one.
The company has been cutting costs through more seats on the planes, secondary airports and not frequent flyer programs. Best possible service is provided to customers over the internet. The company has been successful so far; however, it is facing challenges due to rising operational costs.
Objective 1: Customer-driven marketing strategy Most companies have moved away from mass marketing and use target marketing: developing products and services tailored to one of the specific identified market segments, focusing on consumers who have the greatest interest in the values company can deliver best.
Market targeting - the process of evaluating each market segment s attractiveness and selecting one or more segments to enter. Differentiation - differentiating the market offering to create superior customer value. Positioning - Arranging for a market offering to occupy a clear, distinctive and desirable place relative to competing products in the minds of target consumers. Objective 2: Market segmentation Geographic segmentation - dividing a market into different geographical units, such as nations, states, regions, counties, cities or even neighbourhoods.
Demographic segmentation - dividing the market into segments based upon variables such as age, gender, family size, life cycle, income, occupation, education, religion, race, generation and nationality. These factors are the most popular segmentation basis because they are close to needs and wants and easy to measure.
Psychographic segmentation - dividing a market into different segments based on social class, lifestyle or personality characteristics. People may be in the same demographic group but have different psychographic characteristics. Behavioral segmentation - dividing a market into segments based on consumer knowledge, attitudes, uses or responses to a product.
It can help firms increase product usage. Multiple segmentation bases are often used to identify better-defined, smaller target customer groups. PRIZM is a tool by the Nielsen Company to classify households based on demographic, behavioural and lifestyle factors. Such tools help identify and understand key segments and reach them more efficiently adjusting offering to their wants and needs. Segmenting international markets can be done by combining several variables based on for instance, geographic location, and economic, political and legal factors.
Intermarket segmentation cross-market segmentation can be used, forming segments of consumers who have similar needs and buying behaviour even though they are located in different countries.
Objective 3: Market targeting Evaluating market segments: 3 factors need to be taken into consideration size and growth, structural attractiveness, and company objectives and resources. The company should evaluate threats of competition, new entrants and substitute products, as well as power of buyers and suppliers. The segments the company enters have to provide potential to create superior value for the customers and become better than competitors.
Selecting target market segments: Target market is a set of buyers sharing common needs or characteristic that the company decides to serve. It is difficult to ensure the product satisfies all the customers and is able to compete with focused firms. By offering such variation companies aim at higher sales and stronger market position. However, it can also increase costs of conducting business. The firm achieves string market position as its knowledge of needs deepens and reputation improves.
Limited resources can be targeted at reaching deep niches and companies can become highly profitable. However, such firm also bear higher risks of competition and loss of segment. Advances in technology enable highly localized marketing where consumers can be engaged locally via their GPS, for example. Such marketing drives up costs and reduces economies of scale. In this case relationships with customers become most important. Choosing targeting strategy: best strategy depends on company s resources.
When they are limited concentrated marketing is the most suitable. Undifferentiated marketing is better for uniform products, and those that vary in design work better with differentiation and concentration. Life cycle stage of product should also be considered. New products should use undifferentiated or concentrated marketing. With low market variability buyers with same tastes undifferentiated marketing work best.
Socially responsible target marketing: targeting can generate controversy and concerns if vulnerable or disadvantaged customers are targeted with potentially harmful products. Also problems may appear when marketing of adult products also move onto children. Especially internet allows for targeting most vulnerable with questionable products. Objective 4: Differentiation and positioning Product position - the way the product is defined by consumers on important attributes the place the product occupies in consumers minds relative to competing products.
Positioning maps show consumer perceptions of brands versus competitors. Choosing differentiation and positioning strategy: the strategy must serve the needs to identified target segment. The task consists of 3 steps: 1. To identify a set of differentiating competitive advantages on which to build position marketers must understand needs and deliver value and gain competitive advantage - an advantage over competitors gained by offering greater customer value, either by having lower prices or providing more benefits that justify higher prices.
The company needs to definitely deliver what it offers in the position. Companies can differentiate themselves along the lines of: o Product features, performance, style and design.
Choosing the right competitive advantages entails deciding how many differences to promote and which ones: o How many differences to promote: one opinion is that company should develop a unique selling proposition and focus on one difference and become number one brand in it. The other is that companies should use more than one differentiator to avoid situations where more than one firm claims to be the best in the attribute. Selecting an overall positioning strategy leads to establishing value proposition - the full propositioning of a brand the full mix of benefits on which it is positioned.
There are 5 winning value propositions: o More for more: providing superior product or service for a higher price; it gives prestige to buyer and provide higher quality symbolizing status; it can be a vulnerable strategy, as imitators can provide the same at lower price.
Communicating and delivering the chosen position: the company s marketing mix should support the positing strategy. Company needs to deliver the position it describes and design marketing mix accordingly.
The pitfall is that it is easier to come up with a good strategy than implement and maintain it. The position needs to be monitored closely and adapted to the changing market environment to remain sustainable. Products, services and brands Products are key part of market offering as marketing mix planning starts with creating an offering for customer value delivery which becomes the basis for profitable relationships.
Often the offering consists of both products and services. There are various product attributes and service characteristics. Sometimes brands are defined as major enduring assets of companies outliving specific products and services. Principles of Marketing Handwritten Notes Source: ddegjust. Principles of Marketing Handwritten Notes Source: vssdcollege. Principles of Marketing Lecture Notes Source: egyankosh. Principles of Marketing Lecture Notes Source: uou.
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