Marketing Management
FOURTH EDITION FOR MBS/MBA
Sushil Awale, MBA, MA, M.Phil.
Asst. Professor
Central Department of Management, TU
Bikash Shrestha, MBS, M. Phil.
Asst. Professor
Public Youth Campus, TU
Pranaya Raj Acharya, MBA, M. Phil.
Lecturer
Nepal Commerce Campus, TU
Bhushan Dahal, MBS, M Phil.
Lecturer
Shanker Dev Campus, TU
Introduction |1|
Marketing Management For MBS Semester System
Edition: First 2015
Second 2017
Third 2018
Fourth 2022
© Author
Buddha Publications Pvt. Ltd.
Publishers:
Anamnagar, Kathmandu-29, Nepal
Tel. 00977-1- 5705165, 5705210, 5705177
e-mail: info@buddhapublication.com
www.buddhapublication.com
Price Rs.495.00
ISBN: 978-9937-30-384-2
Printed in Nepal
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Preface
Principal author of this book Sushil Awale started teaching in Central
Department of Management TU from very first batch of MBS semester system.
Semester system ran only in Central Department for two semesters. This book
is different in following 5 ways.
1. This is the first book on Marketing Management for semester system since
2014. This is 4th edition with updates.
2. Our teaching experiences in top 4 business colleges of TU (Central
Department of Management, Shanker Dev Campus, Nepal Commerce
Campus and Public Youth Campus).
3. Modern teaching pedagogies like Presentation, Case Study Method, Project
Work, Group Discussion Method are explained only in this book.
4. Author’s mobile and email address is provided.
5. Case studies with solutions is another core competency of this book.
This book covers 100% syllabus of MBS with past board question sets, internal
exam question sets, case studies and case solutions. This book will also be quite
useful for MBA and marketing practitioners.
Our decades of teaching experience and publication of 11 books and 25 editions
(by the team of principal author) related to marketing have also prepared us
for this book. Network of 80 “Marketing Teachers” in facebook messenger
group that we created accommodating almost all marketing faculties of Nepal,
our connections to Philip Kotler (Father of Marketing) and Valarie Zeithaml
(Premier of Service Marketing) and our principle author Sushil Awale being
Funding Secretary of Nepalese Marketing Association made us confident to
sell this book. We are also visiting faculties of Kathmandu University, Pokhara
University, Purbanchal University, Nepal Open University and IGNOU.
First intention of this book is to address student need. Students must refer
multiple books for single subject in this level but in Nepal there are limited
materials in resource centers. Present students coming all over the Nepal cannot
afford to buy multiple books. This book has referred 54 books and numerous
research articles.
This book has come true due to contribution of Professor Doctor Pushker
Bajracharya, Professor Doctor Govinda Ram Agrawal, Professor Doctor Kundan
Data Koirala, Professor Doctor Bhoj Raj Aryal, Professor Doctor Sanjay Shrestha
and Asso. Professors Jagat Timilsina and Dr Gopal Thapa.
Finally, we like to thank publisher Nabaraj Bajgain, word processor Gyanu Karki
and our students for their feedbacks.
We dedicate this book to all teachers and students of Marketing Management.
Authors
Introduction |3|
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Contents
CHAPTER 1 : Introduction
Marketing Concept............................................................................ 1
Importance of Marketing .................................................................. 5
Core Marketing Concepts.................................................................. 9
Marketing Mix and its Components............................................... 11
Additional Tools for Service Marketing: Additional 3Ps .............. 12
Marketing Program.......................................................................... 14
Company Orientations towards the Market Place......................... 14
Customer Value............................................................................... 18
Customer Satisfaction..................................................................... 19
Cost of Lost Customer..................................................................... 22
Relationship among Satisfaction,
Expectation and Perception................................................................... 23
Buyers’ Behaviour .......................................................................... 29
Marketing Management Process..................................................... 35
Emerging Concepts in Marketing................................................... 37
Modes of Global Market Entry........................................................ 52
Focus on Customer Value and Satisfaction in Nepal .....................54
CHAPTER 2 : Marketing Opportunity Analysis
Situation Analysis............................................................................60
Environmental Analysis .................................................................61
Macro Environment Trends ............................................................69
SWOT Analysis................................................................................71
Corporate and Division Strategic Planning, Business Unit Strategic
Planning and Marketing Planning...................................................76
Nature of Marketing Plan.................................................................80
Contents of a Marketing Plan...........................................................81
Assigning Resources to SBUs: SBU Model, BCG Model and GE
Model........................................................................................................ 83
CHAPTER 3 : Marketing Information System and Demand Measurement
Marketing Information System (MIS)............................................. 92
Marketing Research......................................................................... 94
Introduction |5|
Marketing Research Process .......................................................... 94
Area of Marketing Research............................................................ 96
Role of Marketing Information in Marketing Decision Making..... 98
Market Demand and Its Measurement........................................... 99
Concept of Need, Drive, Want, Demand....................................... 100
Types of Market ............................................................................ 100
Demand Terminology ................................................................... 101
Estimating Current Demand......................................................... 102
Estimating Future Demand........................................................... 104
Practice of Marketing Information System (MKIS)
in Nepal......................................................................................... 106
CHAPTER 4 : Identifying Market Segment, Target and Position Strategies
Meaning of Market.........................................................................110
Types of Market..............................................................................111
Market Segmentation ....................................................................111
Market Research for Identifying Segments...................................112
Bases for Consumer Market Segmentation...................................114
Bases for Segmenting Business Markets ......................................120
Process of Market Segmentation....................................................121
Evaluation and Selection of Target Market...................................122
Developing Positioning Strategies.................................................125
Market Segmentation Practices in Nepal......................................127
CHAPTER 5 : Competitors Analysis
Concept of Competition.................................................................130
Types of Competition ....................................................................130
Key Competitor Analysis...............................................................131
Estimating Reaction Patterns of Competitors................................135
Analyzing and Creating Competitive Advantage: Value Chain ...136
Strategic Response to Competition ...............................................142
Balancing Customer and Competitor Orientation........................150
Competitors Analysis in Nepal......................................................150
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Chapter 6 : Implementation of Marketing Program: Product Strategies
Product ..........................................................................................152
Levels of Product............................................................................153
Concept of New Product................................................................154
Need for Product Innovations .......................................................155
New Product Development Process...............................................156
Product Classification....................................................................157
Product Line and Product Mix Strategies......................................160
Service Product..............................................................................162
Service Marketing Mix...................................................................167
The Service Marketing Triangle ...................................................168
Service Quality Dimensions..........................................................171
Branding.........................................................................................174
Branding Policies and Strategies...................................................177
Brand Positioning Process..............................................................182
Marketing Strategies in the Various Stages of Product Life Cycle......
..............................................................................................190
Style, Fashion, and Fad Life Cycles...............................................193
Product Life Cycle..........................................................................195
Product Repositioning ...................................................................197
Product Adoption and Diffusion ..................................................200
Product and Branding Practice in Nepal.......................................201
CHAPTER 7 : Implementation of Marketing Program: Pricig Strategies
Pricing ............................................................................................206
Pricing Objectives..........................................................................207
Pricing Approaches/ Methods........................................................208
Developing Pricing Strategies and Program..................................209
Pricing Practices in Nepal..............................................................219
CHAPTER 8 : Implementation of Marketing Program: Channel & Logistics Stategies
Distribution Decisions ..................................................................222
Functions of Marketing Channels..................................................222
Selection of Channel Design Decision..........................................223
Channel Dynamics (Changes)....................................................... 227
Introduction |7|
Logistics Management Decisions.................................................. 229
Selecting the Distribution Strategies ........................................... 230
Distribution System in Nepal....................................................... 231
CHAPTER 9 : Implementation of Marketing Program: Integrated Marketing
Communication Strategies
Marketing Communication(Promotion)....................................... 234
Integrated Marketing Communication......................................... 236
Steps in Developing Effective Communication/Promotion......... 237
Promotional Strategy .................................................................... 239
Promotion Practices in Nepal....................................................... 241
CHAPTER 10 : Evaluation and Control Marketing
Concept ......................................................................................... 246
Evaluation and Feedback System ................................................ 248
Requirements for Effective Evaluation ........................................ 250
Types of Marketing Control.......................................................... 252
Marketing Control in Nepal.......................................................... 259
Appendices..............................................................................261
What is Case Study....................................................................... 261
Presentation................................................................................... 262
Group Discussion.......................................................................... 264
Project Work.................................................................................. 265
Case Studies with solutions.......................................................... 270
Board Exam & Internal Exam ................................................290
Bibliography............................................................................302
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Syllabus
MKT 511: Marketing Management
Credits: 3
Lecture Hours: 48
Course Objectives
The objective of this course is to equip students with knowledge and skills to take
decisions in marketing management.
Course Description
This course deals on the management aspects of marketing. It includes a study
of the marketing system and organization, environment and segment analysis,
information system, demand analysis, buyer analysis and competitor analysis,
strategic marketing planning, implementation of marketing program and
marketing control.
Course Details
Unit 1: Introduction LH 6
• Definition of Marketing and Core Marketing Concepts
• Company Orientation Towards the Market Place
• Customer Value, Satisfaction and Creating Long Tern Loyalty Relationship
• Concept of Marketing Management
• Marketing Management Process
Unit 2: Marketing Opportunity Analysis LH 6
• Macro Environmental Trend and forces
• Corporate and Division Strategic Planning, Business Unit Strategic
Planning
• Assigning Resources to SBUs: SBU Model, BCG Model and GE Model
• Nature and Contents of a Marketing Plan
Unit 3: Marketing Information System and Demand Measurement LH 6
• Marketing Information System and its Components
• Marketing Research: Areas and Process
• Market Demand and Its Measurement
• Methods of Estimating Current and Future Market Demand
• Practice of Marketing Information System (MKIS) in Nepal
Unit 4: Identifying Market Segment, Target and Position Strategies LH 6
• Bases for Consumer and Industrial Market Segmentation
• Process of Market Segmentation
• Evaluation and Selection of Target Market
• Developing Positioning Strategies
• Market Segmentation Practices in Nepal
Unit 5: Competitors Analysis LH 4
• Concept of Competition
• Key Competitor Analysis
• Competitive Strategies for Market Leader
• Competitors Analysis in Nepal
Unit 6: Implementation of Marketing Program: Product Strategies LH 8
• Concepts and Types of New Products
• New Product Development Process
• Product Line and Product Mix Strategies
• Brand Positioning, Branding Policies and Strategies
• Marketing Strategies in the Various Stages of Product Life Cycle
• Product and Branding Practice in Nepal
Unit 7: Implementation of Marketing Program: Pricing Strategies LH 4
• Objectives and Methods of Pricing
• Developing Pricing Strategies and Program
• Pricing Practices in Nepal
Unit 8: Implementation of Marketing Program:
Channel & Logistic Strategies LH 3
• Selection of Channel Design Decision
• Channel Dynamics
• Logistics Management Decisions
• Distribution System in Nepal
Unit 9: Implementation of Marketing Program: Integrated Marketing
Communication Strategies LH 3
• Designing and Managing Integrated Marketing Communications
• Steps in Developing Effective Communication
• Promotion Practices in Nepal
Unit 10: Evaluation and Control of Marketing LH 2
• Concept of Marketing Control
• Types of marketing Control
• Marketing Control in Nepal
Note: At least one case study should be conducted after the completion of each
chapter.
Basic Books
Kotler,P & Keller, K.L Marketing Management, New Delhi, Person Education
Limited.
Reference Books
Aaker D., Strategic Market Management, Singapore John, Wiley & Sons,
Stanton, E. and Walker, B.J., Fundamentals of Marketing, MC Graw Hill International
Editions.
Introduction |11|
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