16/04/2013

Marketing Management
Session 1,2,3

Marketing
Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, services to create exchanges that satisfy individual and organizational goals
American Marketing Association

What is Marketing??
Selling? Advertising? Promotions? Making products available in stores? Maintaining inventories?

All of the above, plus much more!

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Evolution of the Marketing Concept

Production Concept
Can we produce the product? Can we produce enough of it?

Marketing Concept
What do customers want? Can we develop it while they still want it? How can we keep our customers satisfied? In response to these discerning customers, firms began to adopt the marketing concept, which involves: Focusing on customer needs before developing the product Aligning all functions of the company to focus on those needs Realizing a profit by successfully satisfying customer needs over the long-term

Sales Concept
Can we sell the product? Can we charge enough for it?

Product (orientation) concept

focus was the product and the effectiveness the development and research was at the forth front because of changed needs it was important to produce the right things and to be innovative.

Marketing Concept

Simple Marketing System

Communication

Marketing = ?
Marketing is the sum of all activities that take you to a sales outlet. After that sales takes over. Marketing is all about creating a pull, sales is all about push. Marketing is all about managing the four Ps
product price place promotion

Goods/services Industry
(a collection of sellers)

Market
(a collection of Buyers)

Money

Information
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Marketing Environment

Difference Between - Sales & Marketing ?

Sales
trying to get the customer to want what the company produces

Marketing
trying to get the company produce what the customer wants

Scope What do we market

Goods Services Events Experiences Personalities Place Organizations Properties Information Ideas and concepts

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Differentiating services from goods

Pure tangible goods

Wheat ,sugar, soap, cosmetic etc.

Tangible good Accompanied service Computer, cars air conditioners, machinery-after sales service

Major service accompanying minor goods & service

Beauty saloon providing cosmetics Child care centers providing baby food.

Pure service

Surgery, consultancy teaching

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Who is a Customer ??
CUSTOMER IS . . . . .
Anyone who is in the market looking at a product / service for attention, acquisition, use or consumption that satisfies a want or a need

How Do Consumers Choose Among Products & Services?

Value - the value or benefits the customers gain from using the product versus the cost of obtaining the product. Satisfaction - Based on a comparison of performance and expectations. Performance > Expectations => Satisfaction Performance < Expectations => Dissatisfaction

CUSTOMER has needs, wants, demands and desires Understanding these needs is starting point of the entire marketing These needs, wants arise within a framework or an ecosystem Understanding both the needs and the ecosystem is the starting point of a long term relationship

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Customers - Problem Solution

As a priority , we must bring to our customers WHAT THEY NEED We must be in a position to UNDERSTAND their problems Or in a new situation to give them a chance to AVOID the problems

Strategic Marketing
Strategic marketing management is concerned with how we will create value for the customer Asks two main questions What is the organizations main activity at a particular time? Customer Value What are its primary goals and how will these be achieved? how will this value be delivered

Customer looks for Value

Value = Benefit / Cost Benefit = Functional Benefit + Emotional Benefit Cost = Monetary Cost + Time Cost + Energy Cost + Psychic Cost
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Strategic Planning
Strategic Planning is the managerial process of creating and maintaining a fit between the organizations objectives and resources and the evolving market opportunities. Also called Strategic Management Process All organizations have this Can be Formal or Informal

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The Strategic-Planning, Implementation, and Control Process

Business Strategic-Planning Process

External environment (Opportunity & Threat analysis)

Business Mission

Goal Formulation

Internal Environment (Strength/ Weakness analysis)

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Strategy Formulation
Environmental Analysis Competitor Customer Supplier Regulatory Social/ Political Internal Analysis Technology Know-How Manufacturing Know-How Marketing Know-How Distribution Know-How Logistics Opportunities & Threats Strength & Weaknesses Identity Core Competencies

The Marketing Plan

A written document that acts as a guidebook of marketing activities for the marketing manager
CONTENTS of MARKETING PLAN
Business Mission Statement Objectives Situation Analysis (SWOT) Marketing Strategy Target Market Strategy Marketing Mix Positioning Product Promotion Price Place Distribution People Process

Identify opportunity

Fit internal Competencies with external opportunities

Implementation, Evaluation and Control

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Firm Strategies

The Marketing Process

Business Mission Statemen t Objective s Situation or SWOT Analysis

Why a product like radio declined and now once again emerging as an entertainment medium ?

What Were the Drivers of This Change ?

Technology ? Government policy ? Other media substitutes ?

Marketing Strategy
Target Market Strategy

Marketing Mix
Product Promotion Place/Distribution Price

Implementation Evaluation, Control 21 22

Why Market Leaders Suffered ?

HMT vs. Titan HLL vs. Nirma Bajaj vs. Honda Dot.com boom, then bust and now resurgence Market leadership today cannot be taken for granted. New and more efficient companies are able to upstage leaders in a much shorter period. Factors Influencing Companys Marketing Strategy

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The macro-environment

The 4 Ps
Marketing Mix Product Place

Price
is the assessment of the external forces that act upon the firm and its customers, that create threats & opportunities

Promotion

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