Unit 1

Introduction to Marketing Management

1
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Inside this Unit

 Market

 Marketing

 Marketing Management and Marketing Concepts

 Company Orientation Towards the Market Place

 Capturing Customer Value from Customers

 Role of Marketing Manager in the Current Scenario

st
 Marketing Challenges of the 21 Century and Firm’s Responses to the Challenges

 Marketing Environmental Trend and Forces

 Nature and Contents of a Marketing Plan

 Contemporary Nepalese Marketing Environment

 Market
3

 Marketplace: The market is the arena for potential exchange. A market is

also the physical size of buyers and sellers who have some need or want,
have resources and are also willing to participate in the transaction.

 Market-space: The market-space is the digital presentation of offerings,

buying, and selling activities on the Internet.

 Meta-market: Meta-markets are cluster of related products and services

offered by a variety of firms.
 MARKETING
4

 Development of marketing is tied up with the development of human

society.

 Some form of marketing was practiced by the human society since

people produced surplus of food and other necessary items.
 Barter System
 Use of Money
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 Marketing is a social process.

 The practice of marketing is closely associated with the socio-economic

development of a society.

 Marketing comes in a wide variety of flavors based on audience,

media platform and business in today’s evolving and dynamic
marketplace.
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AMERICAN MARKETING ASSOCIATION (AMA) DEFINITIONS

 Marketing was formally defined for the first time in 1960 by the

American Marketing Association (AMA).

 In 1960, the major issue in marketing was distribution. Accordingly,

AMA viewed marketing as:
"The performance of business activities that direct the flow of goods and
services from the producer to consumer or user.”
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 AMA revised the definition of marketing in 1985.

 Marketing in 1985 was defined as a management process that

involved planning and implementation of the marketing mix (4Ps).

 AMA’s 1985 definition was as follows:

"Marketing is the process of planning and executing the conception,
pricing, promotion and distribution of ideas, goods and services to create
exchanges that satisfy individual and organizational objectives."
8

 AMA’s definition of marketing in 2013 is as follows:

“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. (Approved July 2013)”
9

PHILIP KOTLER’S DEFINITIONS

 In 1990, Kotler’s definition of marketing was as follows:

“Marketing is a social and managerial process by which individuals and groups

obtain what they need and want through creating and exchanging products and value
with others.”

 Kotler’s definition of marketing in 2010 was as follows:

“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".

 In 2014, Kotler’s definition of marketing was as follows:

"Marketing as the science and art of exploring, creating, and delivering value to
satisfy the needs of a target market at a profit.”
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IMPLICATIONS OF THE DEFINITIONS

The definitions so far presented before us imply that:
 Marketing deals with identifying and meeting human and social needs; or
more specifically, marketing means meeting customers’ needs profitably
through the exchange and transaction process.
In view of the emerging marketing thoughts and practices, our
definition of marketing is as follows:
 Marketing is exploring, creating and delivering value and satisfaction to
the target market with appropriate design and implementation of
marketing mix.
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Entities that are Marketed

• Goods

• Services

• Experiences

• Events

• Persons
• Places
• Properties
• Organizations
• Information
• Ideas
 Marketing Management
12

 CONCEPT
Marketing management is the process of decision making, planning, and
controlling the marketing aspects of a company.
The broad functions of marketing management are generally centered
on three major activities:
 Understanding demand
 Stimulating demand

 Servicing demand
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 TASKS OF MARKETING MANAGEMENT

 Analyze marketing opportunities
 Understand market dynamics

 Develop marketing strategies and plans

 Connect with customers

 Build strong brands

 Design offers (Marketing mix)

 Deliver and communicate customer value

 Create sustainable growth

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 THE MARKETING MANAGEMENT PROCESS

Market Opportunity Analysis

Product/Market Selection
Market Segmentation

Develop Marketing Plan

Market Targeting

Market Positioning Implement and Control

Develop Marketing Mix

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 Stage 1: Opportunity analysis

 Stage 2: Market targeting

 Stage 3: Positioning

 Stage 4: Develop Marketing mix

 CORE MARKETING CONCEPTS
16

1. 2. 3.
Needs, Wants, Target Markets, Offerings
& Positioning & &
Demands Segmentation Brands

9. 4.
Marketing Core Marketing Concepts Value
Planning &
Satiafaction

8. 5.
Marketing 7. 6. Marketing
Environment Competition Supply Chain Channels
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Philip Kotler has explained the following nine core concepts of marketing
that has a sequential relationship as shown in the figure above:
1. NEEDS, WANTS, AND DEMANDS
Needs are a state of self-deprivation
Wants are desires for specific satisfiers of needs
Demands are human wants backed by ability and willingness to buy
2.TARGET MARKETS, POSITIONING AND SEGMENTATION
3. OFFERINGS AND BRANDS
4. VALUE AND SATISFACTION
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5. MARKETING CHANNELS
 Communication channel
 Distribution channel
 Service channel

6. SUPPLY CHAIN
7. COMPETITION
8. MARKETING ENVIRONMENT
9. MARKETING PLANNING
 COMPANY ORIENTATIONS TOWARDS THE MARKETPLACE
19

(BUSINESS PHILOSOPHIES FOR PRACTICING MARKETING OR MARKETING

CONCEPTS)
 PRODUCTION ORIENTATION
 PRODUCT ORIENTATION

 SELLING ORIENTATION
 MARKETING ORIENTATION

 HOLISTIC MARKETING ORIENTATION

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 PRODUCTION ORIENTATION
The production concept believes that consumers will favor those products
that are widely available and low in cost.
 Characteristics Marketing Focus
21

Production efficiency through economies Low priced standardized products

of scale

Mass production Mass distribution and selling

Achieve lowest production and High faith in production managers

distribution costs

Price-key marketing variable Cost reduction efforts

Key role in organization Production manager

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 PRODUCT ORIENTATION
The product concept believes that consumers respond to good quality
products that are reasonably priced.
 Characteristics Marketing Focus
23

Product quality High performing durable products

supported by long-term warranties

Reasonable price Cost reduction

Product design High faith on engineers

Key role in organization Design engineers

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 SELLING ORIENTATION
The selling concept is based on the idea that people will buy more goods
and services if aggressive selling methods are used.
It believes that people ordinarily will not buy the organization's product
unless they are persuaded to buy.
 Characteristics Marketing Focus
25

Persuasive selling High faith on powerful salesmanship

and sales promotions

Transaction marketing Focus on one-time sales

No consideration for customer Useful in political marketing and

satisfaction and repeat buying marketing of unsought products

Key role in organization Sales manager

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 MARKETING ORIENTATION
The marketing concept believes that the key to achieving organizational
objectives lies in being more effective than competitors in integrating
marketing activities toward determining and satisfying the needs and
want of the target markets.
 Characteristics Marketing Focus

27

Target market focus Identification of the target market through

market segmentation, targeting, and product
positioning
Knowledge of customers' needs, Marketing research, produce and deliver
wants and values products that match the customers' needs,
wants and values
Customer satisfaction and repeat Relationship marketing
buying

Integration and coordination of Marketing mix planning and integrated

various tools and techniques of marketing
marketing
Key role in organization Marketing manager
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Fundamental Principles of Marketing Concept

 Target Market Focus
 Customer Orientation

 Integrated Marketing

 Profitability
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 Target Market Focus

An organization can do better if it can define the boundaries of its
operation and follow a market tailored business strategy.
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 Customer Orientation
Once an organization adopts the marketing concept customer satisfaction
becomes its main focus.
Customer-oriented Organization Chart

Customers

Front-line people

Middle
management
Top
manage-
ment
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 Integrated Marketing
The principle of integrated marketing calls for a full coordination and
integration of the various marketing activities performed within the
organization.
The coordination has to be achieved at three levels.
1. Marketing activities
2. Interdepartmental coordination
3. External partners
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 Profitability

The principle of profitability calls for an analysis of every business

opportunity from the view point of profitability and survival of the
organization.
 Selling Factors Marketing

Product Emphasis Customers’ needs and wants

33
First manufacturing and then Process First determining market
selling prospects and then
manufacturing
Sales volumes Orientations Customers’ needs

Aggressive salesmanship Tools Identifying needs

Advertisements Discovering demands
Sales Promotions Delivering satisfaction
Transaction marketing Obtaining loyalty
Maintaining relationships

Marketing function wise operation. Approach Integration of all marketing

Each department works functions and processes to
independently. achieve common marketing goals

Short-term focusing on current Planning Long-term focusing on future

products and competition products and potential
competition
Costs determines price Pricing Customers determine price
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 HOLISTIC MARKETING ORIENTATION

According to Philip Kotler, “the holistic marketing concept is based on the
development, design, and implementation of marketing programs,
processes, and activities that recognizes their breadth and
interdependencies”.
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Internal Integrated
Marketing Marketing

Senior management Communication

Marketing department Products and services
Other departments Holistic Channels
Marketing

Performance Relationship
Marketing Marketing

Sales Revenue Channel

Brand & customer equity Customers
Environment Parterns
Legal
Ethics
Community
 Characteristics Marketing Focus
36

Broad integrated perspective on Integration of the marketing concept

marketing and societal marketing concept

Endowed with four basic principles Relationship marketing, Integrated

marketing, Internal marketing, and
Performance marketing

Key role in organization All stakeholders

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 Relationship Marketing
Relationship marketing has the aim of building mutually satisfying long-term
relations with key parties – customers, suppliers, distributors - in order to earn
and retain business.
 Integrated Marketing
Four Ps Four Cs
Product Customer Solution
Price Customer Cost
Place Customer Convenience
Promotion Communication
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 Internal Marketing
 Marketingdepartment level
 Other departments’ level

 Performance Marketing
 Financial accountability
 Social responsibility
 Business Concepts-A Comparison
Business Starting Main focus Means Offer to buyers Organizational Goal
concepts point
39 Production Factory Product Production efficiency Low priced products Profit through mass production and
Concept merchandising
Product Concept Factory Product Product quality and Product quality and Profit through long-lasting and high
performance performance performance products
guarantee
Selling Concept Factory Product Aggressive selling Promises of product Profit through high sales volume
and promotion superiority and extra
benefits

Marketing Market Customers' Integrated marketing Customer satisfaction Profit through customer satisfaction
Concept needs
Societal Market Customers' Integrated marketing Consumer welfare Profit through social welfare
Marketing needs
Concept
Holistic Society Individual and Relationship Social Welfare Profit through customer satisfaction,
Marketing Social Needs Marketing strong brands and social welfare
Concept Integrated Marketing
Internal Marketing
Performance
Marketing
 Capturing Customer Value from Customers
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CUSTOMER VALUE,
CUSTOMER SATISFACTION, AND
CREATING LONG-TERM LOYALTY RELATIONSHIPS WITH CUSTOMERS
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CUSTOMER VALUE
Customer delivered value = Total customer value – Total customer costs
 Total customer value (TCV)

Reputation/Promise Brand
Value

Product
Customer
Delivery/Use
Value Value

Custome Experence Relationship

Value
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 Total Customer Costs (TCC)

 Monetary Costs
 Time Cost
 Energy Cost
 Psychic Cost
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CUSTOMER SATISFACTION
Satisfaction refers to the buyer’s state of being adequately rewarded by
the purchase decision.

Quality Value

Customer
Satisfaction

Service
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Service quality Price Product quality Service quality Price Product quality

Perception of actual Pre-purchase

outcome (P) expectations (E)
Disconfirmation
(comparison)

Preceptions are btter than Preceptions are equal Preceptions are worse
expectations to expectations than expectations
i.e. P > E i.e. P = E i.e. P < E
Very Very
Neutral
satisfied dissatisfied

Sources: Oliver (1993) and Parasuraman et al. (1994)

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 Pre-purchase Expectations
 Experiential

 Social

 Commercial

 Post-purchase Experience
 Satisfaction

 Dissatisfaction

 Delight
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QUALITY AND CUSTOMER SATISFACTION

From the customers’ perspective “quality is the totality of features and
characteristics of a product or service that bear on its ability to satisfy
stated or implied needs” (American Society of Quality Control, cited in
Kotler and Armstrong, 1996: 583)
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 Total Quality Marketing

 Return on Quality Approach (ROQ Approach)

The approach is based on the following philosophy of quality
improvement:
1. Quality is an investment.
2. Quality efforts must be financially accountable.
3. It is possible to spend too much on quality.
4. Not all quality expenditures are equally valid.
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 DELIVERY OF CUSTOMER VALUE AND SATISFACTION

Marketing Framework for Delivering Customer Value and Satisfaction

Company's
Customer Core Collaborators
Focus Network
Compoetence
Value Cognitive Resource
Exploration Space Competency Space

Value Customer Business Business

Creation Benefits Domain Partners

Customer Internal Business

Value
Relationship Resource Partner
Delivery
Management Management Management
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This framework is based on two key variables

 Valuerelated activities
 The means
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 Value Exploration
According to Kotler (2013), value exploration can be targeted at three
spaces:
 Customers’ cognitive space
 Company’s competence space

 Collaborator’s resource space

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 Value Creation
C. K. Prahalad and Gary Hamel (1990) introduced the concept of core
competence.
Core competence is “an area of specialized expertise that is the result of
harmonizing complex streams of technology and work activity.”
A core competence has three sources of competitive advantages:
1. It provides potential access to a wide variety of markets
2. It increases perceived customer benefits
3. It is hard for competitors to imitate
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 VALUE CREATION AND VALUE CHAIN

Firm Infrastructure

Human Resource Management

Technology Development

Procurement

Inbound Operations Outbound Marketing Service

Logistics Logistics & Sales

Primary Activities
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 Primary Activities
 Inbound logistics
 Operations
 Outbound logistics
 Marketing and sales
 Service

 Support Activities
 Procurement
 Technology development
 Human resource management (HRM)
 Firm’s infrastructure
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According to Kotler (2013) value creation has three important domains:

 Customer benefits
 Business domain

 Business partner’s domain

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 VALUE DELIVERY
 Customer relationship management (CRM)
 Internal resource management

 Business partner management

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 Value Delivery Network

1. Choose the Value

Customer Market Value Strategic

Segmentation Selection Positioning Marketing

2. Provide the Value

Product Service Sourcing, Distributing,
Pricing
Development Development Making Servicing

3. Communicate the Value Tactial

Marketing

Sales Sales
Advertising
Force Promotion
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 Creating Long-term Loyalty Relationship

 Relationship Marketing
 Relationship Marketing and Transaction Marketing
Relationship marketing has the aim of building mutually satisfying long-term relations
with key parties – customers, suppliers, distributors- in order to earn and retain business.
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New Dimensions of Relationship Marketing

Modern relationship marketing has three dimensions:
1. The view of companies about customers is changing. The emphasis is
shifting from transaction marketing to relationship based marketing.
2. A broader view is emerging of the markets with which a company
interacts.
3. A new marketing strategy emerging that integrates quality, customer
service, and marketing activities to produce synergistic effects.
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 Importance of Relationship Marketing

 Buildthe trust factor
 Use power of word of mouth referrals
 Create new business opportunities
 Meet customers’ need more precisely
 Provide unique style and positioning
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 Relationship Building Process

Partners

Advocates

Supporters

Clients

Customers

Prospects
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 Winning Back Lost Customers

 Define retention rate
 Identify causes of defection
 Measure the loss from defection
 Estimate the cost of reducing the defection
 Arrange efficient customer feed-back system

 Levels of Relationship Marketing

 Basic Marketing
 Reactive Marketing
 Accountable Marketing
 Proactive Marketing
 Partnership Marketing
 Practice of Relationship Marketing

62

Number of Customers Size of Profit Margin

High Margin Medium Margin Low Margin

Many Customers Accountable marketing Reactive marketing Reactive marketing

Medium number of Proactive marketing Accountable marketing Reactive marketing

Customers

Few Customers Partnership marketing Proactive marketing Accountable marketing

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 Customer Life-time Value

For example:
Marketing: How much should I spend to acquire a customer?
Product: Who are my best customers? How can I offer products and services tailored for
them?
Customer support: How much should I spend to service and retain a customer?
Sales: What types of customers should sales representatives spend the most time on?
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 Customer Profitability Assessment

According to Kotler (2013),"a profitable customer is a person, household or a
company that overtime, yields a revenue stream that exceeds by an acceptable
amount the company's cost stream of attracting, selling and servicing the
customer.“
Cost to Acquire

Expected Customer
Lifetime
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Loyal Profitable brand Driven

High Potentials Loyal Profitables

Customer
Profitables

Brand Killers Bargain Hunters

Price Sensitive Value Driven

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 CUSTOMER LOYALTY

A satisfied customer is a great asset to a firm in the following

ways:
 Remains loyal for longer periods
 Buys more of the firm’s products
 Talks favorably about the firm and its products
 Pays less attention to competitors’ advertisements and offers
 Provides ideas to the firm
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 Types of Loyalty
 Behavioral loyalty
 Attitudinal loyalty

 Determinants of Customer loyalty

 Perceived quality
 Product design and innovation
 Services
 Value
Loyalty

Design and
Quality Innovation Service Value
 MARKETING OPPORTUNITY ANALYSIS
68
 MARKETING ENVIRONMENTAL TREND AND FORCES
69

 Marketing environment consists of forces that directly or indirectly

influence the organization's marketing activities.
 Marketing environment can be categorized into two groups:
 MicroEnvironment
 Macro Environment
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MACRO (EXTERNAL) ENVIRONMENT FORCES

Apparel
Retailing
Firm
71

 For successful marketing, the organization should be able to anticipate

and predict the changes in the environment.
 Marketing managers should be able to anticipate the following key
factors:
1. Which technology will dominate in the near future?
2. How consumers' taste and preferences are changing?
3. Which political party will come to power?
4. What the trends in the macro-economic indicators are?
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 Demographic Environment
 Population size
 Population growth

 Population migration

 Urbanization

 Economic Environment
 General economic condition
 Business or Trade Cycles (Prosperity to Recession - to Depression - to Recovery)
 Buying power of consumers
73

 Socio-cultural Environment
(Tangible & Intangible)
 Sub-culturalbehavior
 Cultural dynamism

 Technological Environment
 Levelsof technology
 Pace of technological change
74

 Political and Legal Environment

 Laws

 Government policies
 Pressure groups

 Power blocks

 Regional groups
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 Natural Environment
 Natural resources
 Location

 Topography

 Climate
76

MACRO ENVIRONMENT TRENDS AND MEGA-TRENDS

 Fad

 Trend

 Mega-trends
77

MEGA-TRENDS IN NEPAL’S MACRO ENVIRONMENT

 Westernization

 Urbanization

 Liberalization

 Globalization

 Foreign employment

 Political instability

 Corruption

 Information Communication Technology (ICT)

 Pollution

 Warming
 NATURE AND CONTENTS OF A MARKETING PLAN
78
 CONCEPT OF MARKETING PLANNING
79

 A comprehensive document which outlines an organization's missions,

goals, marketing strategies, and programs.
 A predetermined course of action that provides direction to an
organization to design strategies and undertake marketing programs.
 A marketing plan involves the following five key decisions:
 What to achieve
 How to do
 With what resources
 When to do
 By whom to do
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CHARACTERISTICS OF A GOOD MARKETING PLAN

 Clearly defined objectives
 Simple

 Specific targets and actions

 Flexible

 Best utilization of existing resources

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IMPORTANCE OF A MARKETING PLAN

 Identify emerging opportunities
 Minimize risks and uncertainty

 Face competition effectively

 Meet technological changes

 Achieve goals

 Facilitate control
82

THE MARKETING PLANNING PROCESS

 Participation

 Scheduling

 Review

 Monitoring
83

Steps in Preparation of the Marketing Plan

Corporate Mission, Strategies and Objectives

Marketing Plan
Marketing Audit and Analysis

Marketing Objectives

Marketing Strategy

Overall Tactical Plans

Sales Communication Service Research

Evaluation

Marketing Plan
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 SITUATION ANALYSIS/SWOT ANALYSIS

 Review of the external environment
 Review of the internal environment
 Review of current marketing strategies
 Review of the marketing system

The SWOT analysis poses the following strategic questions

that need to be solved by the firm:
 Should the firm maintain its current strength and weakness status and try to capitalize on the new
opportunity?
 Should the firm rectify its current weaknesses and capitalize on the opportunity with a higher
confidence level?
 Should the firm consolidate its strengths and capitalize the opportunity more aggressively than its
competitors?
85

 MARKETING GOAL FORMULATION

 The goals should be in terms of sales, profitability, market share, risk, ROI,
and innovation.
 Marketing objectives may be written in the following statements:
 Increase the current market share of 12 percent to 15 percent.
 Raise the current level of customer satisfaction of 65 percent to 90 percent.
 Raise current profit by 5 percent.
86

 MARKETING STRATEGY FORMULATION

It is the game plan for achieving the specific goals and the firm’s
mission including:
 Product-market scope
 Positioning
 Marketing mix

For example, based on the three major marketing objectives

strategies may be formulated in the following manner:
 Marketing Marketing Product Strategies Pricing Strategies Distribution Promotion
Objectives Strategy Strategies Strategies

Increase market Increase sales by Raise product Offer image Enter new Launch new
share to 15 percent 10 percent. quality level. based pricing to distribution promotion
Win 10 percent of Add features to appeal to status channels. campaign focusing
87 competitors’ the product. conscious buyers. Provide channel on product quality.
customers Offer product incentives for high
exchange schemes volume sales
targeting
competitors’
customers

Raise customer Conduct an annual Evaluate Reduce customers’ Make the product Focus promotion on
satisfaction level to customer customers’ current costs by focusing available in new product
90 percent satisfaction survey problems with the on reducing additional 1000 features and
in all market product. psychic costs retail outlets by increased
segments. Add features on resulting from increasing number distribution. Launch
Study and correct the product to dissatisfaction of dealers. reassuring ad.
points of customer match customers’ Campaign
dissatisfaction needs

Raise profit by 5 Reevaluate the Tie up product Cover all possible Enter into new Promote products
percent cost components in features with the price points at market segments through high-
the company’s price. medium to high through image- image magazines
value chain. Raise profit level price segments. based outlets that reach the
Increase from the high- upper middle-class
productivity levels volume sales of homes.
by 5 percent. high-feature
Focus profit on products.
sales volume.
88

 MARKETING PROGRAM FORMULATION

 Itinvolves designing specific programs to support the strategy.
 For example, for the marketing objective of increasing market share by 15
percent through a sales increase of 10 percent, the following program
framework may be evolved.
 Marketing Objectives: Increase market share to 15 percent
 Marketing Strategy: Increase sales by 10 percent
89

Specific Activities Costs Implementati Timings Risks

Strategy on involved
Responsibilit
y
Product Import new Rs. 10 million R&D and August – Competitors
modifications technology Production December, may preempt
departments 2023 the
technology
High volume Add 5 Rs. 1.5 million Sales and January- Lack of
distribution distributors as incentives distribution March, 2023 distributors’
department interest

Win Introduce Rs. 2.6 million Sales and April- Brand loyalty
competitors’ product advertising December, of
customers exchange department 2023 competitors’
schemes customers
90

 Feed-back and Control

 Itinvolves designing the monitoring, reporting and control system for keeping
the implementation in the right track.
 The marketing planner needs to develop a reporting system based on the
information technology.
 The performance is measured in terms of profits, market share, sales, and
costs.
91

CONTENTS OF A MARKETING PLAN

Section 1: Executive Summary
It should briefly describe the following aspects of the marketing plan:
 Plan objectives and goals
 Major thrusts

 Policies changes required

 Total expenditures to implement the plan

 Expected results from the plan in specific terms

 Major risks involved in the implementation

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Section 2: Situation Analysis

 The situation analysis describes the firm’s current situation.

 It includes analysis of the following issues:

 Situation of the firm’s micro and macro environment forces

 Situation of the firm’s market, sales, and market share

 Situation of the firm’s profits, ROI, and costs

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 Followed by an analysis of the general situation, the planner has to

present the findings of the SWOT analysis.
 It should focus on the following issues:
 Strengths and weaknesses of the firm in terms of the organization, marketing,
finance, operations, and human resources
 Current and emerging opportunities

 Current and emerging threats

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Section 3: Marketing Objectives

 The plan document should provide the marketing objectives including

specific targets in terms of sales, market share, and profits.

 The objectives should be specific, measurable, achievable, realistic, and
time bound (SMART).
95

Section 4: Marketing Strategy

 The marketing strategies describes the game plan to achieve the

objectives.
 It outlines the basic strategies relating to the product, price, place, and
promotion.
 The strategies are formulated in relation to specific product markets.
96

Section 5: Action Programs

Action programs provides a detailed description of the following
implementation issues:
 What actions will be taken?
 When will the actions be taken?

 Who are responsible for specific actions?

 How much will it cost for each action?

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Section 6: Projected Profit and Loss Statement

 The marketing plan should provide an approximate profit and
loss statement.
 This statement is based on the implementation of the action

programs.
 The projection must include a projection of sales and a projection

of costs.
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Section 7: Evaluation and Control Mechanism

It should describe the following components:
 Feed-back system: It includes the reporting systems and the reporting cycle.
 Monitoring and evaluation: It describes the supervision and monitoring
mechanisms to be followed.
 Performance indicators: It describes the indicators for measuring the
performance of various units and personnel. Sales, costs, and profits are the
major indicators used in marketing plans.
99

Section 8: Contingency Plan

 The plan should describe what should be done if a major variable in

the macro environment changes and the plan targets becomes

unachievable.
 The contingency plan provides a degree of flexibility for effective

implementation.
 Role of a Marketing Manager in the Current
Scenario
100

 Oversee all marketing campaigns for their company or department

 Implement strategy
 Promote a business, product, or service
 Ensure the company is communicating the right messaging to attract
prospective customers and retain existing ones
 Represent the marketing team to cross-functional groups including
product management, sales, or customer support
 Updating senior leadership on the progress of marketing activities and
reporting on the results of campaigns
 Marketing Challenges of the 21st Century
101

 Porter’s Five Forces Model of Competition

 The Threat of new entrants
 Bargaining power of customers
 The Threat of substitute products
 Bargaining power of suppliers
 Competitive rivalry within an industry

 Budget and Resource Allocation

 Differentiation
 Brand Awareness/Recall
 Brand Positioning
 Firm’s Reponses to the Challenges
102

 Developing marketing plans that are designed to build long-term

profitability.
 Developing cogent arguments to protect, or increase, the investment in
marketing.
 Develop a framework of marketing strategy that balances the needs of
customers and the organization.
 Developing effective strategies that engage those outsides of the marketing
firm but were crucial in delivering the promise to consumers.
 Developing the right metrics to monitor progress and provide accountability.
 Motivating others to be passionate about data quality, as ‘fit for purpose’
data is vital in direct, digital, and CRM-based marketing. Moreover, it is
important in monitoring performance against marketing goals.
 Contemporary Nepalese Marketing Environment
103

 Emergence of Open Market Economy

 Increasing Roles of the Private Sector
 Private Investment in Infrastructure Development
 Emergence of Multinational Companies
 Growth of Service Sectors
 Development of Information Technology (IT)
 Emergence of Consumerism
 Emerging Trends and Practices in Marketing
104

 Digital Marketing
 Social Media Marketing
 SME Marketing
 Green Marketing
 Digital Marketing
105

Digital marketing refers to any marketing methods conducted through

electronic devices which utilize some form of a computer, including online
marketing efforts conducted on the internet.
In the process of conducting digital marketing, a business might leverage
websites, search engines, blogs, social media, video, email and similar
channels to reach customers.
Common methods for conducting digital marketing:
Search Engine Optimization (SEO), Search Engine Marketing (SEM),
Pay-Per-Click (PPC), Social Media Marketing (SMM), Email Marketing,
Affiliate Marketing, Content Marketing, etc.
106

Benefits of Digital Marketing

1. Global Reach
2. Low Cost of Entry
3. Measurable ROI
4. Improved Targeting
5. Dynamic Adaptability
6. Immediate Connection
7. Relationship Building
 Social Media Marketing
107

Social Media Marketing is a form of digital marketing that leverages the

power of popular social media network to achieve marketing and branding
goals.
Social media marketing requires an evolving strategy with measurable
goals and includes:
 Maintaining and optimizing the profiles.

 Posting pictures, videos, stories, and live videos that represent the brand
and attract a relevant audience.
 Responding to comments, shares, and likes and monitoring the reputation.

 Following and engaging with followers, customers, and influencers to build

a community around the brand.
 SME Marketing
108

SMEs (small to medium-sized enterprises) cannot do conventional marketing

because of the limitations of resources which are inherent to all SMEs and also
because SME owner/managers behave and think differently from conventional
marketing decision-making practices in large companies.
SME Marketing Approach:
Owner/manager’s “network”: personal contact networks, social networks,
business networks, industry and marketing networks
Marketing Touch Points for SMEs: Social Media, Websites & Landing Pages,
Search and Display Ads, In-Person Touch Points, Email, Third-Party Platforms,
Customer Service, Content Marketing, Mobile Apps, etc.
 Green Marketing
109

The objective of green marketing is to improve brand perception. It

ensures that the brand is perceived to have a positive environmental
impact.
Some of the strategies employed are as follows:
 Making eco-friendly products

 Using packaging that isn’t harmful to the environment or is recyclable

 Reducing the environmental impact of production processes

 Investing in environmentally beneficial initiatives that align with the

principles of corporate social responsibility (CSR)
 End of Unit 1
110

Thank You!!!

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