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Marketing Management

An Indian Prospective


II

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Marketing Management An Indian Prospective

Prof. Situn Krushna Sahu Kalam Institute of Techonology

Dr. Sunil Kumar Pradhan Berhampur University

EDUCREATION PUBLISHING (Since 2011)

www.educreation.in


IV

About The Authors

Prof. Situn Krushna Sahu (b. 1975) MBA,

PGDM, BE, DME is a distinguished

professional in the field of marketing. His

superior academic credential has made him in

a position exemplary and role model in

management. Prior to this he has served 15

years as Centre Head, in Imperial Institutions,

Berhampur, Lecturer in Gandhi Institute of

Management Studies, Gunupur, Manager in

ICICI Bank, Hyderabad , Consultant in March Market Research,

Hyderabad, Marketing Manager, Pawan Power Telecom Ltd,

Hyderabad. A committed person towards teaching is a hallmark in

his career. Zeal towards work and unflinching wish for doing well

in the profession is well known. His Curiosity for tracking progress

happening in the field of management and industry is distinctive.

He specializes in areas of Marketing, Operation, Human Resources

and Strategic Management. His area of interest includes Marketing

Management, Retail Management, Sales and Distribution

Management, Strategic Management, Operation Management and

Organization Behavior. He has guided various students in

completing their projects in MBA. He has participated and

presented 22 different papers, projects, training programmes, case

studies, articles and conferences. At present Prof. Sahu is working

as Assistant Professor in PG Dept. of Business Administration at

Kalam Institute of Techonology in Berhampur in Odisha.

*****


V

About The Authors

Dr. Sunil Kumar Pradhan (b.1975) MBA,

MFT, Ph.D, UGC NET(Management), is a

distinguished scholar in the field of Marketing

& International Business. He has been

conferred with his Ph.D degree by Berhampur

University in 2009. A commitment to

excellence in teaching is the hallmark of his

life. His superior academic credentials have

put him in a status as exemplary and a role

model in management .He has published 25 research papers in

different journals and magazines of National and International

repute. His extraordinary methodology and ability to teach is well

accredited .He has innate curiosity and his passion for management

and industry is unique in style. His experience in this vast field is

unparallel. He has engaged number of students in cutting edge

research. He has participated and presented 26 papers in various

National and international conferences, seminars, symposia and

workshops. His area of interest on research covers Advertising

Management, Brand Management, Sales & Distribution

Management, Consumer Behaviour and Marketing Research.

Under his able guidance, 2 Ph.D research scholars have been

awarded and 1 research scholar submitted his Ph.D thesis. To his

credit Dr.Pradhan has 16 years of teaching experience, 3 years

Industry experience along with research experience. At present Dr.

Pradhan is working as Assistant Professor in Dept. of Business

Administration at Berhampur University in Berhampur in Odisha.

*****


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“Marketing and innovation produce results; all the rest are

costs. Marketing is the distinguishing, unique function of the

business."

- Peter Drucker


VII

This book is dedicated to

my Parents and Wife

- Situn

This book is dedicated to

my Wife and Children

- Sunil


VIII

Preface

Beginning of 21st century, there is various facet of marketing. The

fundamental of marketing is utilized in every aspect. The

marketing trends are making the marketers assimilate the

innovations into marketing realities. The definitive impact is seen

in the market place. Today companies are using the mode of

application of innovations in product solution for the customer

problems. Marketing is changed a lot from 1960‘s. The

fundamental topics such as segmentation, targeting, positioning

still used by companies though there are new contemporary trends

in marketing.

Service market has grown significantly in this liberalized and

globalized economy in 21stcentury. Customers look for experiences

while consuming. Customer lifestyle has changed substantially.

New Indian customers graduating for nuclear family values,

owning number of brands, having shopping experiences in retail

outlet, flying in Airline, watching movies in multiplexes, food in

good restaurant, pleasant stay in good hotel and health checkup in

healthcare centers are becoming norms. Marketing in goods,

services, properties, persons, places, events, information, ideas or

organization is of interest to everyone. Customer feedback is

implemented by the companies. Even the companies are tracking

how many customers are clicking on what in webpage, and how

many advertisements they are seeing. It makes marketers plan their

market offerings. India‗s image now is that it is able to provide

services for the products augurs well for the country. Every chapter

in this book explains in detail about fundamentals, challenges and

contemporary issues. This book represents relevant topics for

insightful marketing for the new century.

*****


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Acknowledgements

From Prof. Situn Krushna Sahu:

At this moment of my work, I have important people at my side

whose inspiration, support and encouragement are worth

mentioning. Aiming towards the personal objective of being

knowledgeable and going for the roadmap with proper planning

and enthusiasm, are the backdrops of this book preparation. The

knowledge of this thought came to my mind with the stint in

various institutes and companies, I have worked and taught. I have

made this into a complete book based on books, literatures,

journals, magazines, articles and newspapers which I have studied

and experienced. At this outset I would like to acknowledge

contribution of all the staff member of Kalam Institute of

Technology for their thoughts. I have benefited immensely from

interaction with students, colleagues and resource persons of

various institutes and companies I have worked throughout my

career. My colleagues at Kalam Institute of Technology, Imperial

Institutions, Gandhi Institute of Management Studies and ICFAI

Business School are constant inspiration in making this endeavor a

success. I am thankful to publishers for being part of making this

book. For my continuing interest in the book I am thankful to my

Parents and Wife.

From Dr. Sunil Kumar Pradhan:

I acknowledge the insight of the staff members of Kalam Insititute

of Technology in making this book. I continually get benefits from

all the colleagues of Berhampur University who are constantly

keeping me stimulated about the happenings in the field of

marketing. Thanks are due to the publishers for being part of

making this book. Special thanks to my Wife and Children.

*****


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XI

Contents

S. no. Topic Page

1. Marketing Concepts

Nucleus of Marketing Concepts

Marketing, New Marketing Realities, New

Company Capabilities, Scope of Marketing,

Market, Marketplaces, Marketspaces, and

Metamarkets, Core Concepts, Marketing

Myopia, Selling and Marketing

1

2. Marketing Mix, Marketing Environment,

Competition Analysis, Strategic Planning

Impulse of Marketing Mix, Spread of

Marketing Environment, Concern about

Competition, Clasp of Strategic Planning

Marketing Mix, Micro-Environment, Macro-

Environment, Michael Porter‘s Five Force

Model, Strategic Planning Process, Marketing

Strategy

26

3. Market Research

Goodness of Market Research

Marketing Research System, Categories of

Market Research Firms, Market Research

Process, Forecasting, Demand Measurement

49

4. Consumer Behavior

Affirming Consumer Behavior

Factors Influencing Buying Behavior, Buying

Decision process: the five- stage model

74


XII

5. Segmentation ,Targeting and Positioning

Primacy of Segmentation, Targeting and

Positioning

Kinds of Segmentation, Target Marketing,

Positioning Strategies, Points of

Difference(POD), Points of Parity (POP),

Differentiation

88

6. Product

Coherence of Product

Product Levels, Product Mix, Product Line,

Unique Selling Proposition, New Product

Development Decision process, Packaging

and Labeling

101

7. Brand Building

Greatness of Brand Building

Brand, Branding, Product vs Brand, Brand

Naming, Brand Equity, Brand Equity Model ,

Building Brand Equity, Devising Branding

Strategy, Stages of the Product Life Cycle

112

8. Pricing

Thrust of Pricing

Factors Influencing Pricing, Pricing Methods

128

9. Communication Mix

Momentum of Communication Mix

Marketing Communication Mix, Integrated

Marketing Communication

135

10.

Channel of Distribution

Reach of Channel of Distribution

Channel Levels, Types of Intermediaries,

Functions of Distribution Channel

140


XIII

11. Marketing Planning & Control

Emphasizing Marketing Plans

Nature and Contents of Marketing Plans

145

12. Contemporary Trends in Marketing

Impetus of Contemporary Trends in

Marketing

Viral Marketing, Guerrilla Marketing,

Societal Marketing, Relationship Marketing,

Green Marketing, Digital Marketing, Service

Marketing

149

13. Case Studies

Comprehending Case Studies

ITC , Cadbury, Bajaj, Hyundai, Cross Culture

159

14. References 189

15. Index 190


XIV



1

1 Marketing Concepts

______________________________________________________



Prof. SitunKrushnaSahu

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Importance of Marketing

Marketing has been often described as in 21st century with

meeting the needs of people with their behavioral inclinations and

recent trends. There are examples in this book stating about

marketing is being used in different situations. It is also being

defined in for the society and managers. Looking in today‘s

marketing function by companies in this era, it is a challenge. It

takes a lot for the companies for thinking ahead in the market

place. CEO‘s of top companies are thinking of investing majorly in

marketing. Trends of today‘s customer who are watching

television of viewing times 4.5 hours per day in rural and 23

minutes a day in urban. Though there are a lot of viewing option

and making the customer informative. Today‘s scheme of things

customer are having knowledge. Also laptops, IPADS & mobile

phones are making the communication faster, easier and likeable.

Boys & Girls are having coffee, movie and browsing experience.

Urban customers are having a lot of bargain power whereas rural

customers are conscious about different company products.

Marketing is everywhere. Formally or informally, people and

organizations engage in a number of activities that we could call

marketing. It is embedded in everything we do – from the clothes

we wear, to the websites we click on, to the ads we see. For

example two girls goes to the Café Coffee Day outlet one drinks

coffee and other does work with her Lenovo ThinkPad laptop uses

internet with Airtel data card. She plays with her Googles band

searches for some music. If you click on a ads button Google will

be paid for it. The first girl shows to her friend MOTORAZR

mobile gifted by her parents. Both started looking for the

compatible ringtones for the mobile in net.

Here it is both art and science as there are formulated side and

creative side. Good marketing is lot about careful planning and

execution. In stating their business priorities, CEO‘s acknowledge



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the importance of marketing. One survey of the top 10 challenges

CEOs face around the world in 2006 revealed that among the top 5

were both ―sustained and steady top line growth‖ and ―customer

loyalty/retention,‖ challenges whose achievement depends heavily

on marketing.

The New Marketing Realities

We can say with some confidence that the marketplace isn‘t what

it used to be. It is dramatically different from what it was even 10

years ago.

Major Societal Forces

Today, major, and sometimes interlinking, societal forces have

created new marketing behaviors, opportunities and challenges.

Here are 12 key ones.

1) Network Information Technology: The digital revolution has

created an information age that promises to lead to more

accurate levels of production, more targeted communications,

and more relevant pricing.

2) Globalization: Technological advances in transportation,

shipping, and communication have made it easier for

companies to market in, and consumers to buy from, almost

any country in the world. International travel has continued to

grow as more people work and stay in other countries.

3) Deregulation: Many countries have deregulated industries to

create greater competition and growth opportunities. In the

United States, laws restricting financial services,

telecommunications, and electric utilities have all been relaxed

in the spirit of greater competition.

4) Privatization: Many countries have converted public

companies to private ownership and management to increase

their efficiency, such as the massive telecom company

Telefónica CTC in Chile and the international airline British

Airways in the United Kingdom.



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5) Heightened Competition: Intense competition among

domestic and foreign brands raises marketing costs and shrinks

profit margins. Brand manufacturers are further buffeted by

powerful retailers those market their own store brands. Many

strong brands have become megabrands and extended into a

wide variety of related product categories, presenting a

significant competitive threat.

6) Industry Convergence: Industry boundaries are blurring as

companies recognize new opportunities at the intersection of

two or more industries. The computing and consumer

electronics industries are converging, for example such as

Apple, Sony, and Samsung release a stream of entertainment

devices from MP3 players to plasma TVs and camcorders.

Digital technology fuels this massive convergence.

7) Retail Transformation: Store-based retailers face competition

from catalog houses, direct mail firms, newspaper, magazine,

TV direct-to-customer ads, home shopping TV, and e-

commerce. In response, entrepreneurial retailers are building

entertainment into their stores with coffee bars,

demonstrations, and performances, marketing an ―experience‖

rather than a product assortment. Dick‘s Sporting Goods has

grown from single bait-and tackle store in Binghamton, New

York, into a 300-store sporting goods retailer in 30 states. Part

of its success springs from the interactive features of its stores.

Customers can test golf clubs in indoor ranges, sample shoes

on its footwear track, and shoot bows in its archery range.

8) Disintermediation: The amazing success of early dot-coms

such as AOL, Amazon.com, Yahoo!, eBay, E*TRADE, and

others created disintermediation in the delivery of products and

services by intervening in the traditional flow of goods through

distribution channels. These firms struck terror into the hearts

of established manufacturers and retailers. In response,

traditional companies engaged in reinter mediation and became

―brick-and-click‖ retailers, adding online services to their

offerings. Some became stronger contenders than pure-click

firms, because they had a larger pool of resources to work with

and established brand names.



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9) Consumer Buying Power: In part, due to disintermediation

via the Internet, consumers have substantially increased their

buying power. From the home, office, or mobile phone, they

can compare product prices and features and order goods

online from anywhere in the world24 hours a day, 7 days a

week, bypassing limited local offerings and realizing

significant price savings. Even business buyers can run a

reverse auction in which sellers compete to capture their

business. They can readily join others to aggregate their

purchases and achieve deeper volume discounts.

10) Consumer Information: Consumers can collect information

in as much breadth and depth as they want about practically

anything. They can access online encyclopedias, dictionaries,

medical information, movie ratings, consumer reports,

newspapers, and other information sources in many languages

from anywhere in the world. Personal connections and user-

generated content thrive on social media such as Facebook,

Flickr (photos),Del.icio.us (links), Digg (news stories),

Wikipedia (encyclopedia articles), and YouTube(video).Social

networking sites—such as Dogster for dog lovers, Trip Advisor

for ardent travelers, and Moterus for bikers—bring together

consumers with a common interest. AtCarSpace.com auto

enthusiasts talk about chrome rims, the latest BMW models,

and where to find a great local mechanic.

11) Consumer Participation: Consumers have found an amplified

voice to influence peer and public opinion. In recognition,

companies are inviting them to participate in designing and

even marketing offerings to heighten their sense of connection

and ownership. Consumers see their favorite companies as

workshops from which they can draw out the offerings they

want.

12) Consumer Resistance: Many customers today feel there are

fewer real product differences, so they show less brand loyal

and become more price and quality sensitive in their search for

value, and less tolerant about undesired marketing. A

Yankelovich study Modern retailers increasingly emphasize in-

store experiences for their customers, as does Dick‘s Sporting

Goods found record levels of marketing resistance from



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consumers; a majority reported negative opinions about

marketing and advertising, and said they avoid products they

feel are over marketed.

New Company Capabilities

The following major societal forces create complex challenges for

marketers, but they have also generated a new set of capabilities to

help companies cope and respond.

1) Marketers can use the internet as a powerful information and

sales channel.

2) Marketers can collect fuller and richer information about

markets, customers, prospects, and competitors.

3) Marketers can tap into social media to amplify their brand

message.

4) Marketers can facilitate and speed external communication

among customers.

5) Marketers can send ads, coupons, samples, and information to

customers who have requested them or given the company

permission to send them.

6) Marketers can reach consumers on the move with mobile

marketing.

7) Companies can make and sell individually differentiated goods.

8) Companies can improve purchasing, recruiting, training, and

internal and external communications.

9) Companies can improve their cost efficiency by skillful use of

the internet.

10) Online recruiting of new employees.

Defining Marketing

Marketing is about identifying and meeting human and social

needs. One of the shortest good definitions of marketing is

―meeting needs profitably.‖When eBay recognized that people

were unable to locate some of the items they desired most, it

created an online auction clearing house. When IKEA noticed that



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people wanted good furnishings at substantially lower prices, it

created knockdown furniture. These two firms demonstrated

marketing savvy and turned a private or social need into a

profitable business opportunity.

The American Marketing Association offers this managerial

definition: Marketing Management 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. As in managerial definition,

marketing has often been described as ―The art of selling

products‖. But Peter Drucker, a leading management theorist, says

that ―The aim of marketing is to make selling superfluous. The aim

of marketing is to know and understand the customer so well that

the product or service fits him and sells itself. Ideally, marketing

should result in a customer who is ready to buy.‖

Marketing management as the art and science of choosing

target markets and getting, keeping, and growing customers

through creating, delivering, and communicating superior customer

value. According to a social definition, marketing is a societal

process by which individuals and groups obtain what they need

and want through creating, offering, and freely exchanging

products and services of value with others.

Scope of Marketing

The task of marketing is of creating, promoting and delivering

goods and services to consumers and businesses. Actually,

marketing people are included in marketing 10 types of entities:

goods, services, experiences, events, persons, places, properties,

organizations, information and ideas. Marketing concepts can be

used effectively to market these entities.

1. Goods: Good is defined as something tangible that can be

offered to market to satisfy a need or want. Physical goods

constitute the bulk of most countries production and marketing



8


effort. In a developing country like India fast moving consumer

goods (shampoo, bread, ketchup, cigarettes, newspapers etc.) and

consumer durables (television, refrigerator, air conditioners etc.)

are produced and consumed in large quantities every year.

2. Services: As economies advance, the share of service in gross

domestic product increases. For example, in USA, service jobs

account for 79% of all jobs and 74%of GDP. A service can be

defined as any performance that one party can offer to another that

is essentially intangible and does not result in the ownership of

anything. Its production may or may not be tied to a physical

product. Services include the work of hotels, airlines, banks,

insurance companies, transportation corporations etc. as well as

professional‘s work like lawyers, doctors, teachers etc. Many

market offerings consist of a variable mix of goods and services.

At the pure service end would be doctor listening to a patient or

watching movie in a cinema hall; at another level would be the

landline or mobile phone call that is supported by a huge

investment in plant and equipment; and at a more tangible level

would be a fast food establishment where the consumer consume

both a good and a service.

3. Experiences: By mixing several services and goods, one can

create, stage and market experiences. For example water parks,

zoos, museums etc. provide the experiences which are not the part

of routine life. There is a market for different experiences such as

climbing Mount Everest or Kanchanjunga, travelling in Palace on

Wheels, river rafting, a trip to Moon, travelling in Trans-Siberian

Railways across five time zones etc.

4. Events: Marketers promote time based, theme-based or special

events such as Olympics, company anniversaries, sports events

(Samsung Cup. India Pakistan Cricket Series), artistic

performances (Lata Mangeshkar live concert, Jagjit Singh live

concert), trade shows (International Book Fair at PragatiMaidan,

Automobile fair), award ceremonies (Filmfare awards, Screen

awards), beauty contests (Miss World, Miss Universe, Miss India,

Miss Chandigarh), model hunts (Gladrags Mega Model). There is a

whole profession of event planners who work out the details of an

event and stage it. In India event management companies are

growing and incase of organizing Miss World at Bangalore and



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World Cricket Cup (Hero Cup) it won the acclaim from all over

the world. Our election commission organizes biggest event in the

world. It is elections for upper house in the largest democracy in

the world. Other notable example is organizing of Ardh Kumbh

and Maha Kumbh at Hardwar, Ujjain, Nasik etc. during different

years.

5. Persons: Celebrity marketing has become major business years

ago, someone seeking fame would hire a press agent to plant

stories in newspapers and magazines. Today most of cricket

players like ViratKohli, Mahendra Singh Dhoni, Sachin Tendulkar,

Saurav Ganguly, Rahul Dravid etc. are drawing help from celebrity

marketers to get the maximum benefit. Even Star Plus TV channel

focused more on Amitabh Bachhan to promote their programme

Kaun Banega Crorepati and this programme turned around

fortunes of both Star Plus and Amitabh Bachhan. Even in the 16th

LokSabha election BJP election strategy revolved around

Mr.Narendra Modi, that is power of personality. Mr Shiv Khera is

busy in building his business empire and is busy telling others how

to become winners through books and lectures. Ramdev is

becoming well known business personality as Patanjali Ayurved is

making impressions.

6. Places: Places, cities, states, regions and whole nations, compete

actively to attract foreign companies and tourists. India and China

are competing actively to attract foreign companies to make their

production hub. Cities like Bangalore, Hyderabad and Gurgaon are

promoted as center for development of software. Bangalore is

regarded as software capital of India and Hyderabad is emerging as

the hub of biotechnology industry. Gurgaon and Noida are

competing for call centers to open their offices. Kerala, Himachal

Pradesh, Uttaranchal Pradesh and Rajasthan states are aggressively

promoting themselves to attract local as well as foreign tourists.

Due to its cost effectiveness and competitive ability of Indian

doctors coupled with ancient therapies, India is fast emerging as

country that can provide excellent medical treatment at minimum

costs. If developed properly, Bihar has strong potential to emerge

as ultimate destination for Buddhists.

7. Properties: Properties are intangible rights of ownership of

either real property (real estate) or financial property (share and


https://en.wikipedia.org/wiki/Lok_Sabha

https://en.wikipedia.org/wiki/Narendra_Modi


10


debt. instruments). Properties are bought and sold, and this

necessitates marketing effort. Property dealers in India work for

property owners or seekers to sell or buy plots, residential or

commercial real estate. In India some builders like Ansal, Sahara

Group, both build and market their residential and commercial real

estates. Brokers and sub-brokers buy and sell securities on behalf

of individual and institutional buyers.

8. Organizations: Organizations actively work to build a strong,

favorable image in the mind of their customers. We see ads of

Reliance Jio which is providing service offers at free rates.

Companies can gain immensely by associating themselves with the

social causes. Universities and colleges are trying to boost their

image to compete successfully for attracting the students by

mentioning their NAAC grades in the advertisements and

information brochures.

9. Information: Information can be produced and marketed as a

product. This is essentially what schools, colleges and universities

produce and distribute at a price to parents, students and

communities. Encyclopedias and most non-fiction books provide

market information. Magazines such as Fitness and Muscle

provide information about staying healthy. Business India,

Business Today and Business World provide information about

business activities that are taking place in various organizations.

Outlook Traveler provides information about various national and

international tourist destinations. There are number of magazines

which are focused an automobiles, architecture and interior

designing, computers, audio system, television programs etc.

which cater to the information needs of the customers. We buy

DVDs and visit internet sites to obtain information. In fact,

production, packaging and distribution of information is one of the

society‘s major industry. Many companies are using professional

research agencies to obtained information they need.

10. Ideas: Film makers, marketing and advertising departments

continuously look for a creative spark or an idea that can

immortalize them and their work. Idea here means the social cause

or an issue that can change the life of many. Narmada Bachao



11

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