EVERSTUDY CLASSES

❖
Glossary of
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Unit VI (Marketing Management)

Objectives of this Document

• To provide a bird’s eye view of important terms Relevant for UGC Net
relating to Unit I i.e. Marketing Management.
• Simple and Brief Explanation of Important Terms
Paper II
alongwith examples wherever required.
(Commerce)
• Use of Pictures, Diagrams and Flowcharts wherever
possible to reinforce the concepts in minds of
learners.
 ❖ Marketing: According to the American Marketing Association (AMA) Board of
Directors, Marketing is the activity, set of institutions, and processes for creating,
communicating, delivering, and exchanging offerings that have value for customers, clients,
partners, and society at large.

Dr. Philip Kotler defines marketing as “the science and art of exploring,
creating, and delivering value to satisfy the needs of a target market at a
profit. Marketing identifies unfulfilled needs and desires. It defines, measures
and quantifies the size of the identified market and the profit potential. It
pinpoints which segments the company is capable of serving best and it
designs and promotes the appropriate products and services.”

❖ Marketing Management: According to Philip Kotler, “Marketing management is the

analysis, planning, implementation and control of programmes designed to bring about
desired exchanges with target markets for the purpose of achieving organisational objectives.

❖ Marketing management concepts:

❖ Production Concept: The idea of production concept – “Consumers will favor products
that are available and highly affordable”. This concept is one of the oldest Marketing
management orientations that guide sellers.

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 ❖ Product Concept: The product concept holds that the consumers will favor products
that offer the most in quality, performance and innovative features. Here, under this concept,
marketing strategies are focused on making continuous product improvements.

❖ Selling Concept: The selling concept holds the idea- “consumers will not buy enough of
the firm’s products unless it undertakes a large-scale selling and promotion effort”. Here the
management focuses on creating sales transactions rather than on building long-term,
profitable customer relationships.

❖ Marketing Concept: The marketing concept holds- “achieving organizational goals

depends on knowing the needs and wants of target markets and delivering the desired
satisfactions better than competitors do”. Here marketing management takes a “customer
first” approach. Under the marketing concept, customer focus and value are the routes to
achieve sales and profits.

❖ Social marketing concept: The Societal Marketing Concept puts the Human welfare on
top before profits and satisfying the wants. Societal Marketing emphasizes on social
responsibilities and suggests that to sustain long-term success, the company should develop a
marketing strategy to provide value to the customer’s to maintain and improve both the
customers and society’s wellbeing better than the competitors

❖ Marketing vs selling

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 ❖ 4Ps of Marketing:
a) Product: The first of the Four Ps of marketing is product. A product can be either a
tangible good or an intangible service that fulfills a need or want of consumers. Whether
you sell custom pallets and wood products or provide luxury accommodations, it’s
imperative that you have a clear grasp of exactly what your product is and what makes it
unique before you can successfully market it.

b) Price: Once a concrete understanding of the product offering is established we can

start making some pricing decisions. Price determinations will impact profit
margins, supply, demand and marketing.

c) Place: Often you will hear marketers saying that marketing is about putting the right

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 product, at the right price, at the right place, at the right time. It’s critical then, to evaluate
what the ideal locations are to convert potential clients into actual clients.

d) Promotion: We’ve got a product and a price now it’s time to promote it. Promotion looks
at the many ways marketing agencies disseminate relevant product information to
consumers and differentiate a particular product or service. Promotion includes elements
like: advertising, public relations, social media marketing, email marketing, search engine
marketing, video marketing and more strategies.

❖ 7Ps of Marketing: It is a wider concept and covers the following:

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 ❖ Green Marketing: Green marketing consists of marketing products and services based
on environmental factors or awareness. Green marketing, here, means that producers use
environmentally friendly processes in production, such as recycling water, using renewable
energy or reducing carbon dioxide emissions.

❖ Internet marketing: Marketing efforts done solely over the Internet. This type of
marketing uses various online advertisements to drive traffic to an advertiser's website.
Banner advertisements, pay per click (PPC), and targeted email lists are often methods used
in Internet marketing to bring the most value to the advertiser.

❖ Grey Marketing: Grey marketing refers to the trade of a commodity through

distribution channels that are legal but unintended by the original manufacturer or trade mark
proprietor.

❖ Inbound Marketing: It is a technique for drawing customers to products and services

via content marketing, social media marketing, search engine optimization and branding.

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 ❖ Outbound Marketing: It is a traditional method of marketing seeking to obstruct
potential customers. It includes activities such as trade shows, seminar series and cold calling.
It is costly and the ROI is much lower than inbound.

❖ Affiliate Marketing: It is a type of performance-based marketing in which a business

rewards one or more affiliates for each visitor or customer brought by the
affiliate's own marketing efforts.

❖ Marketing Information System (MKIS): It is a management information system (MIS)

designed to support marketing decision making. Jobber (2007) defines it as a "system in which
marketing data is formally gathered, stored, analyzed and distributed to managers in
accordance with their informational needs on a regular basis.

❖ Market intelligence: It is the information relevant to a company’s markets, gathered

and analyzed specifically for the purpose of accurate and confident decision-making in
determining strategy in areas such as market opportunity, market penetration strategy,
and market development.

❖ Viral Marketing: It is a method of marketing whereby consumers are encouraged to

share information about a company's goods or services via the Internet.

❖ Demarketing: “The use of advertising to decrease demand for a product that is in short
supply.” A few other definitions include one from Dictionary Reference.com: “Advertising that
urges the public to limit the consumption of a product, as at a time of shortage.”

❖ Social Marketing: The societal marketing concept holds that the organization's task is
to determine the needs, wants, and interests of a target market and to deliver the desired

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 satisfactions more effectively and efficiently than competitors in a way that preserves or
enhances the well being of both the individual consumer and society.

❖ Market segmentation: It is the process of dividing a market of potential customers into

groups, or segments, based on different characteristics. The segments created are composed
of consumers who will respond similarly to marketing strategies and who share traits such as
similar interests, needs, or locations

❖ Guerrilla Marketing: It is an advertisement strategy concept designed for businesses to

promote their products or services in an unconventional way with little budget to spend. This
involves high energy and imagination focusing on grasping the attention of the public at a more
personal and memorable level.

❖ MetaMarketing: It is "the synthesis of all managerial, traditional, scientific, social and

historical foundations of marketing,” a term first coined by E.J. Kelly while discussing the issue
of ethics and science of marketing. Thus, Meta Marketing is an attempt to widen the horizons
of marketing by covering non-profit organizations. The best examples of Meta Marketing can
be selling family planning ideas or the idea of prohibition.

❖ Product positioning: It is the process marketers use to determine how to best

communicate their products' attributes to their target customers based on customer needs,
competitive pressures, available communication channels and carefully crafted key messages.
Effective product positioning ensures that marketing messages resonate with target
consumers and compel them to take action.

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 ❖ Product Life-cycle Management (PLM): It is the succession of strategies by business
management as a product goes through its life-cycle. The conditions in which a product is sold
(advertising, saturation) changes over time and must be managed as it moves through its
succession of stages.

❖ Double-loop Marketing: It is based upon the notion that in today's information-rich

world, marketing must of necessity be people and knowledge-driven rather than product
driven. A company must first develop "mind share” by building a site that offers genuinely-
useful information and advice to consumers. This is the first loop of the firm's interaction with
customers. Only after such a site achieves credibility among its community of readers can the
company, in the second loop of customer interaction, try to convert that "mind share" into
"wallet share." In other words, first community, then commerce. Double Loop Marketing is an
idea of online-marketing consultant, Christian Sarkar. It is related to relationship
marketing and Seth Godin's idea of permission marketing.

❖ Emotional Branding: It is a term used within marketing communication that refers to

the practice of building brands that appeal directly to a consumer's emotional state, needs
and aspirations. Emotional branding is successful when it triggers an emotional response in
the consumer, that is, a desire for the advertised brand (or product) that cannot fully be

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 rationalized. Emotional brands have a significant impact when the consumer experiences a
strong and lasting attachment to the brand comparable to a feeling of
bonding, companionship or love. Examples of emotional branding include the nostalgic
attachment to the Kodak brand of film, bonding with the Jim Beam bourbon brand, and love
for the McDonald’s brand.

❖ Solution Selling: It is a sales methodology rather than just promoting an existing

product, the salesperson focuses on the customer's problems and addresses the issue with
appropriate offerings (product and services). The problem resolution is what constitutes a
"solution". Solution selling is usually used in sales situations where products are just one of
the elements that lead to a solution.

❖ Holistic Marketing Concept: It is probably the newest approach to marketing and the
latest business concept. It originated as a response to fundamental changes in the
current marketing environment (demographic changes, globalization, hyper
competition, Internet development, corporate social responsibility, etc.).

❖ Relationship Marketing: It was first defined as a form of marketing developed from

direct response marketing campaigns which emphasizes customer retention and satisfaction,
rather than a focus on sales transactions. Relationship marketing differs from other forms of
marketing in that it recognizes the long term value of customer relationships and extends
communication beyond intrusive advertising and sales promotional messages.

❖ Consumer Behavior: It is the study of individuals, groups, or organizations and all the
activities associated with the purchase, use and disposal of goods and services, including the
consumer's emotional, mental and behavioural responses that precede or follow these
activities.
❖ Pricing Decision: It is a process to determine what manufactures receive in exchange of
the product. Pricing depends on various factors like manufacturing cost, raw material cost,
profit margin etc.

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 ❖ Types of Buyers:

❖ Marketing control: It is the process of monitoring the proposed plans as they proceed
and adjusting where necessary. If an objective states where you want to be and the plan sets

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 out a road map to your destination, then control tells you if you are on the right route or if you
have arrived at your destination.

❖ Marketing communication (MarCom): It is a fundamental and complex part of a

company's marketing efforts. Loosely defined, MarCom can be described as all the messages
and media you deploy to communicate with the market.

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 ❖ Integrated Marketing: It is an approach to creating a unified and seamless experience
for consumers to interact with the brand/enterprise; it attempts to meld all aspects of
marketing communication such as advertising, sales promotion, public relations, direct
marketing, and social media, through their respective mix of tactics, methods, channels,
media, and activities, so that all work together as a unified force. It is a process designed to
ensure that all messaging and communications strategies are consistent across all channels
and are centered on the customer.

❖ SWOT Analysis: SWOT analysis (strengths, weaknesses, opportunities and threats

analysis) is a framework for identifying and analyzing the internal and external factors that can
have an impact on the viability of a project, product, place or person.
• Strengths: Internal attributes and resources that support a successful outcome.
• Weaknesses: Internal attributes and resources that work against a successful outcome.
• Opportunities: External factors that the entity can capitalize on or use to its advantage.
• Threats: External factors that could jeopardize the entity's success.

❖ Brand Audit: A brand audit is a thorough examination of a brand's current position in

the market compared to its competitors and a review of its effectiveness. It helps you
determine the strength of your brand together with its weaknesses or inconsistencies and
opportunities for improvement and new developments.

❖ Enterprise Resource Planning (ERP): It is the integrated management of core business

processes, often in real-time and mediated by software and technology. ERP is usually referred
to as a category of business-management software typically a suite of
integrated applications—that an organization can use to collect, store, manage, and interpret
data from these many business activities.

❖ Predictive Analytics: It encompasses a variety of statistical techniques from data

mining, predictive modeling, and machine learning, which analyze current and historical facts
to make predictions about future or otherwise unknown events.

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 ❖ Stealth Marketing: Stealth marketing, also known as undercover or buzz marketing, is
a marketing technique that advertises a product to people without them even realizing it.
Many people consider stealth marketing deceptive and unethical, and there may be backlash
against companies who use it on them.

❖ Influencer Marketing: Influencer marketing (also influence marketing) is a form of

marketing in which focus is placed on influential people rather than the target market as a
whole. It identifies the individuals that have influence over potential customers, and orients
marketing activities around these influencers.

❖ Experiential Marketing: Engagement marketing, sometimes called "experiential

marketing", "event marketing", "on-ground marketing", "live marketing", "participation
marketing", or "special events" is a marketing strategy that directly engages consumers and
invites and encourages them to participate in the evolution of a brand or a brand experience.
Rather than looking at consumers as passive receivers of messages, engagement marketers
believe that consumers should be actively involved in the production and co-creation of
marketing programs, developing a relationship with the brand.

❖ International marketing: International marketing is simply the application of marketing

principles to more than one country. However, there is a crossover between what is commonly
expressed as international marketing and global marketing, which is a similar term. For the

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 purposes of this lesson on international marketing and those that follow it, international
marketing and global marketing are interchangeable.

❖ Marketing Environment : Marketing Environment is the combination of external and

internal factors and forces which affect the company’s ability to establish a relationship and
serve its customers.

❖ Components of Marketing Environment: The marketing environment is made up of the

internal and external environment of the business. While internal environment can be
controlled, the business has very less or no control over the external environment.

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 ❖ States of demand - Eight demand states possible:

a) Negative demand - consumers dislike the product and may even pay to avoid it.

b) Nonexistent demand - consumers may be unaware of or uninterested in the product.

c) Latent demand - consumers may share a strong need that cannot be satisfied by an
existing product.

d) Declining demand - consumers begin to buy the product less frequently or not at all.

e) Irregular demand - consumer purchases vary on a seasonal, monthly, weekly, daily or

even hourly basis.

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 f) Full demand - consumers are adequately buying all products put into the marketplace.

g) Overfull demand - more consumers would like to buy the product than can be satisfied.

h) Unwholesome demand - consumers may be attracted to products that have

undesirable social consequences.

❖ Straight rebuy: This situation is similar to repeat buying situations of

consumer/household buying; in this buying situation, only purchasing department is involved.
They get information from inventory control department or section to reorder the material or
item and they seek quotations from vendors in an approved list. In this the buyer keeps on
placing the order on routine basis without changing any product specifications.

❖ Modified rebuy: In a modified re-buy situation, a buyer may change the product
specifications or may even change to a substitute product for economic and performance
considerations. Executives apart from the purchasing department are involved in the buying
decisions. The company is looking for additional suppliers or is ready to modify the approved
vendors list based on the technical capabilities and delivery capabilities.

❖ New task buy: In this situation, the buyer is buying the product for the first time. As the
cost of the product or consumption value becomes higher, more number of executives are
involved in the process. The stages of awareness, interest, evaluation, trial, and adoption will
be there for the products of each potential supplier. Only the products which pass all the
stages will be on the approved list and price competition will follow subsequently.

❖ Market Segmentation - Market segmentation is the process of dividing a market of

potential customers into groups, or segments, based on different characteristics. The

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 segments created are composed of consumers who will respond similarly to marketing
strategies and who share traits such as similar interests, needs, or locations.
CRITERIA FOR SEGMENTATION:

❖ Diffusion and Adoption Of Innovations: Diffusion is the process by which an innovation

is communicated through certain channels, over time, among the members of a social system.
It is a special type of communication concerned with the spread of messages that are
perceived as new ideas and which will necessarily be received with some degree of
uncertainty. The four main elements in the diffusion of new ideas are: (1) innovation, (2)
communication channels, (3) time, and (4) the social system.

❖ Marketing research-Marketing research is "the process or set of processes that links the
producers, customers, and end users to the marketer through information used to identify and
define marketing opportunities and problems; generate, refine, and evaluate marketing
actions; monitor marketing performance; and improve understanding of marketing as a
process.

❖ Types Of Marketing Research - There are different types of marketing research

classified on the basis of the research objective for which the study is to be carried out and the

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 sources of data used to gather the information. The widely used classification of marketing
research is based on the functional objectives of the research and are identified as:

❖ AIDA approach

The AIDA marketing model is a marketing, advertising and sales approach methodology
designed to provide insight into the customer's mind and represent the steps needed to
cultivate leads and generate sales. The AIDA model was introduced by businessman Elias St.
Elmo Lewis in the late 19th century. As an acronym, AIDA breaks down into the steps required
for successful marketing: Attention, Interest, Desire (or, in some variations, Decision) and
Action. The AIDA marketing model is a cornerstone of modern marketing, to the extent that
missing one step is thought to almost guarantee an unsuccessful result.

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 ❖ DAGMAR approach: The DAGMAR approach of advertising was devised by Mr Russell
Colley who was much appreciated for his work, as till date, DAGMAR is a concept used in
advertising to set advertising objectives and goals. DAGMAR is an abbreviation for “Defining
advertising goals to measure advertising results”. The 2 core things on which the DAGMAR
Model stood were:

a) Creation of a communication task to achieve goals

b) Defining the objective of the communication tasks in a manner that the results can be
measured.

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 ❖ Customer Relationship Management : Customer relationship management (CRM) is a
term that refers to practices, strategies and technologies that companies use to manage
and analyze customer interactions and data throughout the customer lifecycle, with the
goal of improving customer service relationships and assisting in customer retention and
driving sales growth.

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 ❖ Marketing Myopia: A short-sighted and inward looking approach to marketing that
focuses on the needs of the company instead of defining the company and its products in
terms of the customers' needs and wants. It results in the failure to see and adjust to the rapid
changes in their markets.

❖ Market aggregation: "Market aggregation" is defined as the marketing of

standardized goods and services to a large population of people that have similar needs.
Another name for market aggregation is "mass marketing," a strategy that treats all customers
as a single group that is handled homogeneously.

❖ B2B: Business to Business: This type of websites for business is suitable for the
companies that sell products or services to another company, which is an intermediate buyer
who then sells the product to the final customer. They help other companies establish a solid
foundation for the long-term commercial interrelations between the companies. B2B websites
may come in various types. One of them helps to receive information from partners, the other
creates accounts for payment for the products or services and establish contracts. An example
of B2B web-platform would be a website selling vehicle's components that some auto
manufacturer will purchase in order to produce his own product. For instance, among the most
well-known B2B websites is the Alibaba B2B Marketplace.

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 ❖ B2C: Business to Consumer: B2C websites for business are the most popular. Web
platforms that follow the B2C model are suitable for companies which sell products or services
directly to a customer online. One of the largest B2C websites is Amazon. A customer can view
products on the page, choose a product and order it. The Business to Consumer model doesn’t
require a middleman and reduces the cost of the goods for the ultimate consumers. B2C sites
aim to make easy for shoppers to buy products end enjoy this process.

❖ C2C: Consumer to Consumer: Consumer to Consumer website serves as a mediator

between the clients and gives an opportunity to sell or purchase goods directly. Through C2C
web-service consumers can sell their assets like cars, or rent a room by publishing their
information on the website. One customer may buy a product of another consumer by viewing
the description on the website. For instance, eBay and Airbnb are typical C2C web-services.
Airbnb allows travellers to book homes or to rent apartments all over the world, while on eBay
they can purchase everything from fashionable clothes to antique masterpieces.

❖ C2B: Consumer to Business: Websites following C2B business models are the least
widespread among the other types of business models. In the C2B individuals offer goods
and services to companies in exchange for pay. It is a complete reversal of B2B or B2C, where
companies offer their services to customers. C2B web-services provide an opportunity for
the consumers to set prices for the products they would like to buy. The C2B website finds
the seller who is eager to sell the goods for the price that the consumer wants. C2B
businesses, as well as consumers, profit from the flexibility of such services. Survey
scout and Survey Monkey are typical C2B models.

❖ Levels of product :

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 ❖ Vertical marketing system : Vertical marketing system (VMS) is one in which the main
members of a distribution channel—producer, wholesaler, and retailer—work together as
a unified group in order to meet consumer needs. In conventional marketing systems,
producers, wholesalers, and retailers are separate businesses that are all trying to maximize
their profits. When the effort of one channel member to maximize profits comes at the
expense of other members, conflicts can arise that reduce profits for the entire channel. To
address this problem, more and more companies are forming vertical marketing systems.

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 ❖ Unique Selling Point: A unique selling proposition (USP, also seen as unique selling point)
is a factor that differentiates a product from its competitors, such as the lowest cost, the
highest quality or the first-ever product of its kind. A USP could be thought of as “what you
have that competitors don’t.”

❖ 360 Degree Customer View: The 360-degree customer view is the idea, sometimes
considered unattainable, that companies can get a complete view of customers by
aggregating data from the various touch points that a customer may use to contact a
company to purchase products and receive service and support. With the advent of
technologies such as mobile devices, video customer support, online communities, social
media platforms, and more, the various touch points with which customers may interact
has proliferated, which can make the task of aggregating the data from these various
interactions more difficult to achieve.

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