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7/29/2019 Ch-1 Core Marketing Concepts1
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Market
The term “Market is originated from Latin
word „Marcatus‟ ware traffic or a place
where business is conducted.
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Marketing
It is a societal process by which individuals
and groups obtain what they need and want
through creating, offering, and exchanging
products and services of value freely withothers.
Acc to Philip Kotler ,“Marketing is a humanactivity directed at satisfying needs and wants
through an exchange process”.
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Classification of Markets
On the Basis of Area :-
Local
RegionalNational
International
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Classification of Markets
On the Basis of Time:-
Short Period
Long PeriodOn the Basis of transactions
Spot Transactions
Future Transactions
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Classification of Markets
On the Basis of Nature of Goods
Commodity
Capital Securities
•On the Basis of Volume of Business
Wholesaler
Retailer
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Difference Between Marketing and
Selling
Marketing focuses on
customer needs
Begins before production
Continues after sale Profits through customer
satisfaction
Long term perspective
Customer first thenproduct
Focuses on seller‟s
needs
Begins after production
Comes to end after sale Profits through sales
volume
Short term perspective
Product first thencustomer
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Marketing Management
According to American Marketing
Association :-
Marketing Management
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Functions of Marketing Management
Assessing the Market opportunities.Planning the market activities.
Evaluating and adjusting the market efforts Marketing research
Advertising Sales Promotion
Sales Planning
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MARKETING MANAGEMENT TASKSS.NO STATE OF
DEMAND
MARKETING
TASKS
FORMAL
NAME
1. Negative Demand Reverse the Negative
Demand
Conversional
Marketing
2. Latent Demand Develop demand Developmental Marketing
3. Faltering Demand Revitalize Demand Remarketing
4. Full Demand Maintain Demand Maintenance
Marketing
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Conversional Marketing
Negative demand exists for a product
or service when substantial or majority
consumers show a dislike & do not approve it.
Challenge of negative demand to
marketing management is to develop a
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Developmental Marketing
Here a substantial number of
customers in the market strongly share
the need for a product/service that does not exist at all .
Example , Growing no. of middle class demand for passenger cars at
affordable prices.
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Remarketing
A state in which the demand for a product
or service is less than it used to be & further
decline is expected in the absence of some remedial efforts.
In these days of Hi-tech products , many
traditional products loose demand.
Indian consumers exhibit a strong interest
& desire of fast foods & processed foods
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Maintenance Marketing
Full demand is a state in which the
current level of demand for a product
or service is equal to the desired level.
The task of marketing management is
to monitor the demand level continuously & maintain it.
Task is to carrying out marketing
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Core Marketing Concepts
Productsand
Services
Value, satisfaction,and quality
Needs, wants,and demands
Exchange, transactions,and relationships
Markets
CoreMarketingConcepts
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What Motivates a Consumer
to Take Action?
Needs - state of felt deprivation forbasic items such as food and
clothing and complex needs such asfor belonging. i.e. I am thirsty
Wants - form that a human needtakes as shaped by culture and
individual personality. i.e. I want aCoca-Cola.
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What Will Satisfy Consumer‟s
Needs and Wants?
Products -anything that can be offered to a market for attention,acquisition, use or consumption and that might satisfy a need or want.
Services -activities or benefits offered for sale that are essentially intangible and don’t result in the ownership of anything.
C Ch
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How Do Consumers Choose
Choose Among Products and
Services?Customer Value - benefit that
the customer gains from owning
and using a product compared tothe cost of obtaining the product.
Customer Satisfaction - dependson the product‟s perceived
performance in delivering value‟
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How do Consumers Obtain
Products and Services?
Exchanges - act of obtaining a desiredobject from someone by offering
something in return.
Transactions - trade of values betweenparties. Usually involves money and aresponse.
- -
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Who Purchases Products
and Services?
Market - buyerswho share a
particular needor want that canbe satisfied by a
company’s products or services.
ActualBuyers
PotentialBuyers
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Different Types of Markets
On the basis of Purchasing & Consumption
a) Consumer Marketb) Industrial Market
On the basis of Products in Trade
a) Basic Goods Marketb) Intermediary Goods Market
Consumer Goods Market
On the basis of Magnitude of Selling
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Marketing Management Philosophies
Production Concept
Product Concept
Selling Concept
Marketing Concept
Societal Marketing Concept
Consumers favor products that areavailable and highly affordable
Improve production and distribution
Consumers favor products that offerthe most quality, performance, and
innovative features
Consumers will buy products only if the company promotes/ sells theseproduct
Focuses on needs/ wants of targetmarkets & delivering satisfaction better than competitors
Focuses on needs/ wants of targetmarkets & delivering superior value
Society’s well-being
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The Production Concept
One of the oldest concept in business.Consumers will favor those products &
services that are readily available and highly
affordable.
Therefore, management should focus on
improving production and distribution efficiency.
This concept is the guiding marketing
philosophy.
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The Product Concept
It assumes that consumers will favor
products that offer the most in quality, performance and innovative features.
Thus an organization should devote its full energy to offer quality products &
services.
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This concept assumes that consumers will not
buy a company’s products unless it
undertakes selling & promotion efforts.This concept is typically practiced in case of
non-essential goods as buyers do not normally
think of buying these products & tend to postpone them.
The company has to be good at tracking down ros ective bu ers throu h advertisin
The Selling Concept
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The Marketing Concept
It emphasizes that a company can achieve its goals by determining the needs and wants of target buyers (markets) and
delivering the desired satisfactions more effectively and efficiently than competitors.
The marketing concept starts with well
defined -:a) Target market
b) Consumer needs
c) Aspirations
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The Societal Marketing Concept
1. This emphasises that the key task of the company is not only to determine the needs
& wants of the target market & delivering
the desired satisfaction but also to
maintains or enhance the consumer’s and
the society’s well being. 2. Societal Marketing Concept differs from
marketing concept in respect of the
following -:
S.N
o
Marketing Concept Societal Marketing
Concept1. Consumers express
needs & wants
Consumers
unexpressed interest
2. Consumers interestfirst & then
Societies well being& interest- strive to
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Societal Marketing Concept
Society(Human Welfare)
Consumers(Wants)
Company(Profits)
SocietalMarketing
Concept
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Marketing & Sales Concepts Contrasted
FactoryExistingProducts
Sellingand
Promotion
Profitsthrough
Volume
MarketCustomer
Needs
IntegratedMarketing
Profitsthrough
Satisfaction
The Selling Concept
The Marketing Concept
StartingPoint
Focus Means Ends
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The Marketing Process
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Contd…
The marketing process consists of the
following activities-:
a) Analysing Market Opportunities
b) Selecting Target Markets
c) Developing marketing Mix
d) Managing the Marketing Effort
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Contd..
At the centre there are customers & our objective will be to build a strong relationship.
First step is market segmentation, targeting
& positioning, to decide which customers the company should serve & how ?
Process identifies-: Total target market
Divide them into smaller segments
Select most romisin se ments
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Contd..
Next step is to design a marketing mix (product. price, place & promotion)
For selecting best marketing mix company
engage itself into-:
Marketing analysis
Planning
Implementation
Control Activities
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INTEGRATED MARKETING
When all the company’s departments work together to serve the customers interests the
result is “INTEGRATED MARKETING”
Integrated marketing takes place at 2 levels
Various Marketing Various
Organisational
Functions
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External Vs Internal Marketing
EXTERNAL
Marketing
Directed at people
outside thecompany
INTERNAL
Task of
successfully
hiring, training, &motivating able
employees who
want to serve the‟
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PROFITABILITY
In case of private firms, the major
goal is profit
In case of non-profit & public
organisations, the major goal is
surviving & attracting enough
unds to er orm their work.
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Why organisations prefer marketing concept ?
Sales Decline
Slow Growth
Changing Buying Patterns
Increasing Competition
Increasing Marketing
Expenditures
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Customer Value
It is the difference between Total Customer
Value & Total Customer Cost
TCV-: It is the bundle of benefits
customer’s expect from product & services
TCC-: It is the bundle of costs customer’s
expect to incur in evaluating, obtaining &
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CUSTOMER VALUE
•PRUDUCT VALUE
•SERVICES VALUE
•PERSONNEL VALUE
•IMAGE VALUE
•MONETARY COST
•TIME COST
•ENERGY COST
•PSYCHIC COST
TOTAL
CUSTOMER
VALUE
TOTAL
CUSTOMER
COST
CUSTOMER
DELIVERED
VALUE
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CUSTOMER SATISFACTION
“Customer satisfaction is a person’s
feelings of pleasure or
disappointment resulting from comparing a products perceived
performance (outcome) in relation to his/her expectations.”
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TOOLS FOR TRACKING & MEASURING
CUSTOMER SATISFACTION
COMPLAINT & SUGGESTION SYSTEMS
Customer centeredorganisations makes it easy forits customers to deliver
suggestions & complaints.Example-: Hotels & Restaurants
provide forms for guests to
report likes & dislikes
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TOOLS FOR TRACKING & MEASURING
CUSTOMER SATISFACTION
GHOST SHOPPING
Companies can hire persons to
pose as potential buyer’s toreport their findings on strong& weak points they experienced
in buying the company’sproducts.
LAST CUSTOMER ANALYSIS
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MARKET ORIENTED STRATEGIC
PLANNING
It is the managerial process for
developing & maintaining a viable fit
between the organisations objective,skills & resources & its changing
market opportunities.
The aim of strategic planning is to ’
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Marketing Mix
It is the set of marketing tools that the
firm uses to pursue its marketing
objectives in the target market. According to Philip Kotler ,“ The
marketing mix is the set of controllable ,tactical , marketing tools that the firm
blends to produce the response it wants
in tar et market .”
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Contd..
Marketing Mix Consists of -:
PRODUCT PRICE
PLACE PROMOTION
M k i Mi V i bl
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Marketing-Mix Variables
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PRODUCT
Most basic Marketing Tool
It is the firm’s tangible offer to the market which includes the product quality,features, design, branding, & packaging.
Leasing, delivery, repair, & training arealso the part of product offering.
C
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PRICE
The amount of money that customers
pay for the product .
Price should commensurate with the
offer’s perceived value. If it is not,buyer’s will turn to competitors
products.
PLACE
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PLACE
Another key Marketing-Mix tool
Includes the various activities the company undertakes to make the product accessible &
available to target customers.
Company must identify, recruit, & link various
marketing facilitators to supply its products &
services efficiently to the target market.
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PROMOTION
It includes all the activities the company undertakes to communicate &
promote its product to the target market
Company has to hire, train, &
motivate salespeople.
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MARKETING ENVIRONMENT
DEFINITION
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DEFINITION
According to Philip Kotler , “ A
company’s marketing environment
consists of the actors and forces outside marketing that affect
management’s ability to build and maintain successful relationships with
target customers .”
MICRO ENVIRONMENT
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MICRO ENVIRONMENT
The microenvironment consists of the actors close to the company that affect its ability to serve its customers.
This Includes -:(1) The company- goals, mission, vision,
administration
(2) The suppliers – raw materials, spares, semi finished goods
(3) The marketing intermediaries-
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Microenvironment
MACRO ENVIRONMENT
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MACRO ENVIRONMENT
The macro environment consists of the following larger societal forces
that affect the microenvironment.
This Includes -:
(1) Demographic – Density, location, age, gender, occupation etc.
(2) Economic – size of market, disposable income, willingness to spend etc.
(3) Natural – ecological system, prevention of environment pollution
(4) Technological – communication systems, online shopping etc.
(5) Political – system of govt., centre govt., legislative agencies etc
(6) Legal – laws of land, public & consumer protection acts
(7) Cultural.- culture, values, beliefs, customs, traditions etc
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Macro Environment
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Opportunities
Examples of Opportunities Posed by Marketing Environment in India
1. The New Economic Policies of the Government of India ingeneral.
2. The New Industrial Policy.
3. Liberalisation of industrial licensing.
4. Foreign Exchange Regulation Act (FERA) and Monopolies andRestrictive Trade Practices Act (MRTP) liberalization.
5. Curtailment of and disinvestments in public sector.
6. The New Trade Policy – lowering of import tariffs, abolition of import licenses, convertibility of rupee, globalisation, etc.
7. Fiscal and monetary reforms, banking sector reforms, capitalmarket reforms.
8. Removal or phasing out of subsidies.
9. Encouragement to foreign direct investment (FDI).
10.Dismantling of price controls and introduction of market-driven
price environment.
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Examples of Threats Posed By MarketingEnvironment In India
1.Entry of Multi-National Companies (MNCs)into the Indian market on a large scaleincreases the competition for products andservices.
2.„Survival of the fittest‟ rule forces many
weaker and small-scale companies to closedown due to non-viability.
3.Big players start buying smaller playersthrough mergers and acquisitions.
4.Removal of subsidy affects profitability andviabilit of man industries. (Fertiliser
Threats
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MARKETING&
GLOBALISATION
Globalisation
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Globalisation
How Globalisation Starts
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How Globalisation Starts
The developed capitalistic nations
pronounced the globalisation of world
economy & world markets.Many foreign economies deregulated &
encouraged market forces to operate freely
They claimed to create a new world order
through the free market system – free
movement of products, technology, services
REGULATION
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REGULATION
The rich nations (G-8) proposed the
World Trade Organisation (WTO) as a
mechanism to regulate world trade.The WTO , combined with the powers
of other world agencies like World Bank (WB) & the International
Monetary Fund (IMF) , began forcing
the develo in countries to o en their
I t f Gl b li ti I di I di
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Impact of Globalisation Indian on India
India opted for economic reforms to match the
global changes.
The reform process was initiated in the 1990s & then the congress govt. declared a new
policy on economic reforms which popularly
known as “New Economic Policy, 1991” (NEP’ 1991).
Features of NEP’1991 -:
Contd
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Contd..
NEP’ 1991
Liberalisation Privatisation GlobalisationMarket
Economy
Full freedomfor entrepreneurs
to enter any Market orIndustry
Private Sectorinvited to play
vital role in theeconomy
Integration of domesticeconomy
with globaleconomy
Allowing themarket
forces to operatefreely. Less
intervention of the State.
PLANNING
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PLANNING
Planning is a managerial activity which is a basic requirement for all organisations.
Based on overall plan, each division of the organisation will have to determine its own
plan.
Key elements of Planning Activity -:
a) Timing
LEVELS OF PLANNING
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LEVELS OF PLANNING
In an organisation planning is done at
different levels -:
a) Strategic Planning
b) Tactical Planning
c) Operational Planning
St t i Pl i
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“Strategic Planning is the overall corporate
planning. This plan typically covers the
company’s long -range goals & dictates the direction of all departments & divisions
within the company.”
According to Philip Kotler -:
“Strategic Planning is the process of
Strategic Planning
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Tactical Planning
“Tactical planning involves specifying
details which pertain to the
organisations activities for a specific
period of time, usually one year”
Features -: A tactic is a means by which a strategy
is implemented
OPERATIONAL PLANNING
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OPERATIONAL PLANNING
“This is done by supervisory
managers & it focuses its attention
on activities of narrower scope & short duration of all the marketing
planning activities.”
Example -:
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Example -:
BASIS STRATEGY TACTICS
Level of
formulation &
Implementati
on
Top management Lower level
Management
Time Element Continuous &
Irregular
Continuous
Periodic basis
The Time Longer Shorter
Basic Elements of Strategic Planning
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Basic Elements of Strategic Planning
There are five basic elements of Strategic
Planning -:
1.Mission
2.Strategic Business Units (SBUs) 3.Objectives
4.Strategic Planning Tools
MISSION
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MISSION
It is a statement in which, the organisation
define
a) Its business b) What makes it different from competitors
c) What consumers it serves d) What needs it satisfies
e) What type of products it offers
Indicates boundaries or an or anization’s
Strategic Marketing Planning
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Strategic Marketing Planning
MarketCompetitive
Profitability
Decide thenature &
scope oforg.
Determinevarious
activitiesthat makeup the
totaloperations
of acompany
Product mixgrids
BCGGE
Macro Levelto Micro
Level
• Based onthe goalsof an org.
Strategic Business Units (SBUs)
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Strategic Business Units (SBUs)
Strategic Business Units.
Strategic Business Units (SBUs)
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Characteristics of SBUsIt may be brand, or a product line or
separate division of the company.
It is having distinct mission and objectives.
Be a separately identifiable business Have a distinct mission
Have separate competitors
Have a separate group of executives
Strategic Business Units (SBUs)
Strategic Business Units (SBUs)
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Strategic Business Units (SBUs)
Strategic planning models used in assessing the existing businesses:
BCG matrix
GE matrix
BCG matrix( Boston Consultancy
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BCG matrix( Boston ConsultancyGroup)
identify company’s SBUs position in the market.
strength,
weaknesses, opportunities and threats
Growth share matrix”
2 x 2 4 quadrants
Company’s Relative Market Share
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Stars
Cash cows Dogs
Question marks
High Low
High
Low
Company s Relative Market Share
M a r k e t g r o w t
h r a t e
Contd
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Contd..
Axis components:1. Market growth rate: The rate at which market
is growing
2. Relative market share: Market share of the
SBU divided by the market share of the largest
competitor.
Model components:
Star : This category represents the high
market share and high industry growth.
SBUs in this category require large investment
Contd
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Contd…
Question Mark: This category represents
high market growth and low market share.
SBUs in this category has two options, either to invest heavily and bring them to star position
or divest / liquidate from that position.
Dogs: SBUs in this category generates less
cash for the company as it operates in low
growth and low market share.
Usually companies will not invest in this
GE / McKinsey Matrix
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GE / McKinsey Matrix
GE/McKinsey Matrix is another great
portfolio analysis tool developed by
McKinsey & Company in the 70s.First-class consultants like McKinsey &
Company and CEOs and COOs like to use
them to better assess their business units.
Consultants would plot the business units
in the chart and decide whether they should
GE MATRIX
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GE MATRIX
GE Matrix (General Electric)
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GE Matrix (General Electric)
Management can use the GE business
matrix to classify SBU‟s on the basis of
two factors -:
a. Market / Industry Attractiveness :might be determined by such factors
as the rate of industry growth, thenumber of competitors in an industry,and the weakness of competitors
within an industry.
GE M t i
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GE Matrix
Invest strategy In this position SBU
a. Should receive ample resources
b. Should be supported by well financedmarketing efforts.
Protect strategy SBU’s in this position should
a. Allocate the resources selectively.
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Harvest strategy
a. SBUs should not receive substantial newresources and if required, sell them.
Divest strategy a. SBUs which falls into this category
should not receive any resources and sell it
GE Matrix
Marketing Planning
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Marketing Planning
“ Marketing Planning is the direction of company‟s marketing efforts & resourcestowards present marketing objectives of -:
GrowthSurvivalMinimisation of risksMaintaining status quo
Profit maximizationService to customersDiversification
Image building & so on.” “
MARKETING PLAN
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MARKETING PLAN
“ The Marketing plan is the detailed
scheme of the marketing strategies
& activities associated with each product’s marketing mix.”
or
“ Marketing plan is the document of
uture course o action that s ells
MARKETING PLANNING PROCESS
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Marketing Planning Process
1) Assessing Opportunities & Threats
2) Establishing Marketing Objectives
3) Framing marketing strategies & Polici
4) Programming Operations
5) Developing Marketing Mix
6) Designing Resource Mobilization Plan
7) Monitoring the Operations
Step-1 Assessing Opportunities &
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p g ppThreats
Assesses major threats & opportunities that the product might face.
It helps management to anticipate
important positive or negative developments
that might have impact on the firm & its
strategies.
Major steps are -:
Step-2 Establishing Marketing
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An objective is a temporary estimate of
desirable future result that cannot be
predicted with accuracy but is achievable through efforts
It states the marketing objectives that the company would like to attain
during the plan’s term and discuss key
issues that will a ect their attainment
Step-2 Establishing Marketing Objectives
Step-3 Framing marketing strategies &
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It outlines the broad marketing logic by
which the business unit hopes to achieve its
marketing objectives & the specifics of -:a) Target markets
b) Positioning
c) Market expenditures etc.
It outlines specific strategies for each
Step 3 Framing marketing strategies &
Policies
Step-4 Programming
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This step spells out how marketing strategies will be turned into specific action programs.
These are based on the input of policies &
strategies
Various operations can be -:1) Product mix Plan
2) Sales force Plan
3) Adv. & sales promotion Plan
p g gOperations
Step-5 Developing Marketing
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It involves the integration of various
activities & the critical evaluation of
sub-plans in relation to others in terms of costs incurred & benefits derived.
EXAMPLE -:
Advertising Plan needs to think about
Step 5 Developing Marketing Mix
Step-6 Designing Resource Mobilization
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Step 6 es g g esou ce ob at o
This is basically an implementationstage
Resource mobilization plan portrays -:
a)Quantum of resources
b)Types of resourcesc)Costs of resources
to be used to implement the master plan
Step-7 Monitoring the Operations
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p g p
Control is the counter side of planning.
Control will be used to monitor progress &
allow higher management to review implementation results & spot products that
are not meeting their goals.
Monitoring has four major aspects
1) Fixing the standards
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Marketing Information System
DEFINITION
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According to Prof. Cundiff, Still & Govani
“ Marketing Information System (MIS) is an
organised set of procedures, information
handling, routines & reporting techniquesdesigned to provide information required
for making marketing decisions.”
According to Kotler
“ A marketing information system is a
continuing and interacting structure of
NEED OF MARKETING INFORMATION
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Because of Dynamic & Highly competitive environment theorganisations are undercontinuous threat & to survive
they need to be updated withthe recent information.
Need of MIS arises because of underlinedreasons -:
Knowledge of consumer demand
Growing complexity of marketing
Benefits Of MIS
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It allows marketing managers to carry outtheir analysis, planning, implementation& control responsibilities more effectively.
It ensures effective tapping of marketingopportunities & enables the company todevelop effective safeguard against
emerging marketing threats.It provides marketing intelligence to the
firm & helps in early spotting of changing
trends.
Types of Marketing Information
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A Marketing information System supplies 3 types of information -:
a)Recurrent Informationb)Monitoring Information
c)Problem Related or Customized
Information
Recurrent Information
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It is the data that MIS supplies periodically at a weekly, monthly, quarterly or annually.
This includes data such as -:a)Sales data
b)Market Share
c)Sales call reports
d)Inventory Levels
e)Payables & Receivables
Monitoring Information
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It is the data obtained from regular scanning of certain sources such as trade
journals & other publications.
Relevant data from external data is
captured to monitor changes & trends related to marketing situation
Problem Related or Customized Information
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It is the information which is developed in response to some specific requirement
related to a marketing problem or any other particular data requested by a manager.
Primary Data or Secondary Data are collected through survey research in
response to a specific need.
COMPONENETS OF MIS
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Marketing Information System
Marketing Information System
Analytical
Marketing System
Internal
Reports System
MarketingResearch System
MarketingIntelligence System
Marketing Managers ( AnalysisPlanning
ImplementationControl)
Marketing Environment ( Target MarketsMarketing ChannelsCompetitors PublicsMacro Environment)
M a r k e t i n g D e c i s i o n s a n
d C o m m u n i c a t i o
n s
COMPONENETS
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INTERNAL REPORT SYSTEM
MARKETING INTELLIGENCE
SYSTEMMARKETING RESEARCH
SYSTEM
ANALYTICAL MARKETING
SYSTEM
INTERNAL REPORT SYSTEM
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The internal accounting system involvesusing marketing data available from withinthe company as a means of indicating thecost effectiveness of the firm.
Relationship of internal forces & theirrelationship to good information
management influence the decisionmaking.
Internal data includes-:
1) Operation reports- prod’ schedules,
MARKETING INTELLIGENCE
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SYSTEM
It involves the collection & analysis of publicly available information about
competitors & developments in the marketing
information.Goal of Marketing intelligence is to improve
strategic decision making, assesses & track
competitors actions & provide early warning of opportunities & threats.
-
MARKETING RESEARCH SYSTE
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It provides intense but short lived insight into particular areas of marketing.
Marketing research information includes -:
a) Buyer behaviour
b) Product or Brand preferences
c) Product Usage
d) Advertising Awareness
ANALYTICAL MARKETING SYSTEM
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Application of scientific methodology & quantitative techniques to business or other
operating problems.
Operation researchers use mathematical models
in their analysis
These models are used for -:
1) Media Selection
MARKEITNG RESEARCH
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According to AMA (American Marketing Association)
“ Marketing Research is the function which links the consumer, customers, & public to
the marketer through information –
information used to identify & define marketing opportunities & problems ;
generate, refine, evaluate marketing actions
monitor mar etin er ormance &
FEATURES OF MARKETING RESEARC
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IT IS A SYSTEMATIC PROCESS - It has to
be carried out in a stepwise & systematic
manner & the whole process needs to be
planned with a clear objective.
IT SHOULD BE OBJECTIVE – It is
important that the methods employed &interpretations are objective. The research
should not be carried out to establish an
opinion nor should it be intentionally suited
OBJECTIVES OF MARKETING
RESEARCH
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Marketing Research may be conductedfor different purposes -:
1) To understand why customers buy a product.
2) To forecast the probable volume of future
sales or expected market share.
3) To assesses competitive strengths &
strategies.
RESEARCH
MARKETING RESEARCH PROCESS
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Marketing Research Process
1) Define the Problem & Research
2) Develop the Research Plan & Designs
3) Collect the Information
4) Analyze the Information
7) Present the Findings
SAMPLING
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Sampling is a selection of units from the entire group called the population or universe of
interest.
Choosing small no. of items picked up from a
large no. of items, that sample will tend to
possess almost the same characteristics as the larger or the whole group of items
A sampling plan must indicate -:
1) Sampling Unit (Respondents)
Classification of Sampling Techniques
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Sampling Techniques
Nonprobability
Sampling Techniques
Probability
Sampling Techniques
ConvenienceSampling
JudgmentalSampling
QuotaSampling
SnowballSampling
SystematicSampling
StratifiedSampling
ClusterSampling
Other SamplingTechniques
Simple RandomSampling
Convenience Sampling
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Convenience sampling attempts toobtain a sample of convenientelements. Often, respondents areselected because they happen tobe in the right place at the righttime.
use of students, and members of socialorganizations
mall interce t interviews without ualif in
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Quota Sampling
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Quota sampling may be viewed astwo-stage restricted judgmentalsampling.The first stage consists of developing control
categories, or quotas, of population elements.In the second stage, sample elements are
selected based on convenience or judgment.
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PROBABILIT Y
SAMPLING
TECHNIQUE S
Simple Random Sampling
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Each element in the population has aknown and equal probability of selection.
Each possible sample of a given size (n)
has a known and equal probability of
being the sample actually selected.
This implies that every element is
selected independently of every other
element.
Systematic Sampling
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The sample is chosen by selecting arandom starting point and then pickingevery ith element in succession from thesampling frame.
The sampling interval, i, is determined by dividing the population size N by thesample size n and rounding to the nearest
integer.
If the ordering of the elements produces acyclical pattern, systematic sampling may decrease the re resentativeness of the
Stratified Sampling
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A two-step process in which thepopulation is partitioned intosubpopulations, or strata.
The strata should be that where every population element should be assigned toone and only one stratum and nopopulation elements should be omitted.
Next, elements are selected from eachstratum by a random procedure, usually SRS.
The elements within a stratum should be
as homogeneous as possible, but the
Cluster Sampling
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The target population is first divided intosubpopulations, or clusters.
Then a random sample of clusters is
selected, based on a probability samplingtechnique such as SRS.
For each selected cluster, either all the
elements are included in the sample (one-stage) or a sample of elements is drawnprobabilistically (two-stage).
Elements within a cluster should be as
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SOURCES OF DATA
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SOURCES OF DATA
MARKETINGRESEARCH
DATA
PRIMARY DATA
SECONDRY DATA
Primary vs. Secondary Data
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y y
Primary Data are originated by aresearcher for the specific purposeof addressing the problem at hand.
The collection of primary datainvolves all six steps of themarketing research process
Secondary Data - which havealready been collected for purposes
other than the problem at hand.
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METHODS OF DATA COLLECTION
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Survey Techniques
Observation Approach
Focus Group ResearchBehavioral Research
Experimental Research
Survey Techniques
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Most common of the approaches whereinsurveys are undertaken with the help of a
questionnaire to learn about peoples
knowledge, benefits & behaviour.Observation Approach
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Experimental Research
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The most scientific method of research is experimental research which tries to capture cause & effect
relationships.
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CONSUMER BEHAVIOUR
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According to Prof. Leon G. Sciffman &Leslie Lazon Kanuk
“The behaviour that consumers display
in searching for, purchasing, using,
evaluating & disposing of, if products
& services will satisfy their needs.”
According to Blackwell & Miniard
“Consumer Behaviour refers to actions
Block Diagram
Characteristics/Determinants/Factors
Influencing Consumer Behavior
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BUYER
CULTURAL SOCIAL PERSONAL CONCEPT
Influencing Consumer Behavior
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CULTURE
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Most fundamental determinant of aperson‟s wants & behavior
It is a set of values, perceptions,
preferences & behavior through his/her family or other kind of institution.
Example -:
Majority of Indians are vegetarians & a
company which sells non-veg items
should analyze these values of the
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Social Class
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Social classes are relativelyhomogeneous & enduring divisions in a
society which are hierarically ordered &
whose members share similar values,interests & behaviour.
Social class do not reflect income onlybut
1)Occupation
2)Education
SOCIAL
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In addition to cultural factors, aconsumer’s behaviour is influenced by some social factors.
The roles are played by the -:
a) Reference Groupsb) Family
c) Roles
FACTORS
Reference Groups
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A person‟s Reference Groups consists of all the groups that have direct (face-to-
face) or indirect influence on the person‟s
attitudes or behavior.
Groups having direct influence on a
persons are called Membership Groups.
Membership Groups are-:
Contd..
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Primary Groups
Family
FriendsNeighbors
Co-workers
With whom the person interacts fairlycontinuously & informally
Secondary Groups
A i ti l G
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Aspirational Groups
People are also influenced bythe groups in which they are notmembers.
Groups to which a personwould like to belong
Dissociative Groups
FAMILY
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The family is the most importantconsumer buying organisation in society
& it has been researched extensively.
Family members constitute the most
influential primary reference group.
We can distinguish between two families
in the buyers life
Contd..
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Family of Orientation -:
It consists of ones parents & siblings
From parents a person acquires anorientation toward religion, politics &economics & a sense of personal ambition,self worth & love.
Family of Procreation -:
It consists of ones spouse & children–
PERSONAL
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FACTORS Buyer behaviour is influenced by the
buyers personal characteristics. These
includes -:
1. Age & Life cycle Stages
2. Occupation
3. Economic Circumstances
4. Lifestyle
5. Personality & Self-Concept
Age & Life cycle Stages
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Buyers tastes in food, clothes, furniture &recreation are all related to age.
Family life cycle consists of stages likeyoung singles, newly married, married
with children, elderly couple living alone &
single parents.
Consumption is shaped by the stage in
which the buyer is presently.
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Bachelor stage:
Young, single, not living at home Few
financial burdens. Fashion opinion
leaders. Recreation oriented. Buy: basichome equipment, furniture, cars,
equipment for the vacations.
Newly married couples:
Young, no children Highest purchase rate
and highest average purchase of
Occupation
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A factory worker may buy work clothes,work shoes, lunch boxes etc.
A company executive may buy expensivesuits, watches, travel accessories, tickets
for air travel, luxury car etc.
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Personality & Self-Concept
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Personality is the person‟s distinguishingpsychological characteristics that lead to
relatively consistent & enduring
responses to his / her own environment.
It is described in terms of such traits like
self confidence, dominance, sociability,defensiveness & adaptability.
Personality plays a very important role in
PSYCHOLOGICAL
FACTORS
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These factors include -:
1) Motivation
2) Perception
3) Learning
4) Beliefs
5) Attitudes
FACTORS
MOTIVATION
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Buyer‟s needs are normally biogenic &physiological.
When needs are aroused to a sufficient
level of intensity they become motives &urging the buyer to seek satisfaction.
Abraham Maslow explained the driving
force of people‟s need hierarchy.
MASLOW‟S Hierarchy of Needs
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Perception
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“It is the process by which anindividual selects, organizes &
interprets information inputs to create
a meaningful picture of the world.”
Marketer Researches his consumer‟sprofile & then communicate the
message through radio, demo or
television.
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LEARNIN
G
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It involves changes in an individual‟sbehaviour arising from experience.
Most human behavior is learned.
G
BELIEFS
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Through doing & learning. People acquirebeliefs & attitudes.
“A Belief is a descriptive thought that a person holds about something .”
These beliefs make up product & brand
images & people often act on these
images.
ATTITUDES
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Attitudes puts people into a frame of mindof liking or disliking an object.
“An attitude is a person’s enduring favorable or unfavorable evaluations,emotional feelings & actions tendencies
toward some object or idea .”
People have attitude towards almost
everything : religion, politics, clothes,
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Buying Process
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Problem or need recognition
Information search
Evaluation of alternatives
Purchase decision
Post purchase behavior
Problem or need
iti
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Consumer recognizes a need
Example: Consumer recognizes that he needs
to upgrade his computer. He wants faster processing, more memory, and several other features.
recognition
InformationSearch
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Consumer seeks out information to fulfillthe need.
Example: Consumer searches through PC World and other magazines for information on computers.
Search
Evaluation of Alternatives
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Consumer evaluates the options that mayfulfill his needs.
Example: Consumer selects several different brands and models of computers to consider and evaluates them.
Alternatives
Purchase Decision
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Consumer decides which product or brand to
purchase.
Example: Consumer decides to buy a Dell Computer by mail.
Post-PurchaseBehavior
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Consumer will use the product and evaluate
his or her decision.
Example: Consumer decides the brand was a good choice.
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NewMarketing
New Marketing Challenges
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Emerging
Challenges
NonprofitMarketing
Landscape &InformationTechnology
EthicalConcerns Globalization
ChangingWorld
Economy
Modern Marketing SystemSuppliers
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End UserMarket
MarketingIntermediaries
CompetitorsCompany(Marketer)
E n v i r o n
m e n t
E nvi r onm en t
Marketing Management
Marketing ManagementImplementing programs to create exchanges
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p g p g g
with target buyers to achieve organizationalgoals
Finding and increasing demand, alsochanging or reducing demand
Demand Management