Marketing management

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Basic concept of marketing management, sales and economy

Basic concept of marketing management, sales and economy

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  • 13-06-26
  • 13-06-26
  • 13-06-26 Drucker, Yogi Berra, A Chinese Proverb, William Davidow, David Packard

Transcript

  • 1. Introduction to Marketing Management
  • 2. 2What is Marketing…??Selling?Advertising?Promotions?Making products available in stores?Maintaining inventories?All of the above, plus much more!
  • 3. 3Marketing = ?Marketing is a social and managerial processby which individuals and groups obtain whatthey need and want through creating andexchanging products and value with others.-Philip Kotler
  • 4. 4Marketing Management= ?Marketing management is the art and science ofchoosing target markets and getting, keeping, andgrowing customers through creating, delivering, andcommunicating superior customer value.
  • 5. 5Simple Marketing SystemIndustry(a collectionof sellers)Market(a collectionof Buyers)Goods/servicesMoneyCommunicationInformation
  • 6. 6Marketing = ? Marketing is the sum of all activities that take you to asales outlet. After that sales takes over. Marketing is all about creating a pull, sales is all aboutpush. Marketing is all about managing the four P’s – product price place promotion
  • 7. 7The 4 Ps & 4CsMarketingMixProductPrice PromotionPlaceCustomerSolutionCustomerCostCommunicationConvenience
  • 8. 8Difference Between - Sales & Marketing ?Salestrying to get the customer to want what thecompany producesMarketingtrying to get the company produce whatthe customer wants
  • 9. 9Scope – What do we market Goods Services Events Experiences Personalities Place Organizations Properties Information Ideas and concepts
  • 10. 10Core Concepts of MarketingBased on : Needs, Wants, Desires / demand Products, Utility, Value & Satisfaction Exchange, Transactions & Relationships Markets, Marketing & Marketers.
  • 11. 11Needs, wantsdemandsMarkets Marketing &MarketersUtility, Value &SatisfactionXchange, TransactionRelationshipsProductsCore Concepts of Marketing
  • 12. 12Core Concepts of Marketing Need – food ( is a must ) Want – Pizza, Burger, French frys ( translation of a needas per our experience ) Demand – Burger ( translation of a want as per ourwillingness and ability to buy ) Desire – Have a Burger in a five star hotel
  • 13. 13In order to understand Marketing let us begin with theMarketing TriangleCustomersCompetitionCompany
  • 14. 14Who is a Customer ??Anyone who is in the market looking at a product /service for attention, acquisition, use or consumptionthat satisfies a want or a needCUSTOMER IS . . . . .
  • 15. 15Customer –CUSTOMER has needs, wants, demands anddesiresUnderstanding these needs is starting point of theentire marketingThese needs, wants …… arise within a frameworkor an ecosystemUnderstanding both the needs and the ecosystem isthe starting point of a long term relationship
  • 16. 16How Do Consumers Choose AmongProducts & Services?Value - the value or benefits the customers gain fromusing the product versus the cost of obtaining theproduct.Satisfaction - Based on a comparison of performanceand expectations. Performance > Expectations => Satisfaction Performance < Expectations => Dissatisfaction
  • 17. 17Customers - Problem SolutionAs a priority , we must bring to our customers“WHAT THEY NEED”We must be in a position to UNDERSTAND theirproblemsOr in a new situation to give them a chance to AVOIDthe problems
  • 18. 18Customer looks for ValueValue = Benefit / CostBenefit = Functional Benefit + EmotionalBenefitCost = Monetary Cost + Time Cost +Energy Cost + Psychic Cost
  • 19. 20Strategic MarketingStrategic marketing management is concerned withhow we will create value for the customerAsks two main questions What is the organization’s main activity at aparticular time? – Customer Value What are its primary goals and how will these beachieved? – how will this value be delivered
  • 20. 21Strategic PlanningStrategic Planning is the managerial process ofcreating and maintaining a fit between theorganization’s objectives and resources and theevolving market opportunities. Also called Strategic Management Process All organizations have this Can be Formal or Informal
  • 21. 22The Strategic-Planning, Implementation,and Control Process
  • 22. 23Business Strategic-Planning ProcessExternal environment(Opportunity &Threat analysis)Internal Environment(Strength/ Weakness analysis)Goal FormulationBusiness Mission
  • 23. 24Strategy FormulationEnvironmental AnalysisInternal AnalysisCompetitorCustomerSupplierRegulatorySocial/ PoliticalTechnology Know-HowManufacturing Know-HowMarketing Know-HowDistribution Know-HowLogisticsStrength & WeaknessesIdentity Core CompetenciesOpportunities & ThreatsIdentify opportunityFit internal Competencies with external opportunitiesFirm Strategies
  • 24. 25The Marketing PlanA written document that acts as a guidebook ofmarketing activities for the marketing manager
  • 25. 26CONTENTS of MARKETING PLANBusiness Mission StatementObjectivesSituation Analysis (SWOT)Marketing Strategy Target Market Strategy Marketing Mix Positioning Product Promotion Price Place – Distribution People ProcessImplementation, Evaluation and Control
  • 26. 27The Marketing ProcessBusinessMissionStatementObjectivesSituationor SWOTAnalysisImplementationEvaluation, ControlTarget MarketStrategyMarketing StrategyProductPromotionPlace/DistributionPriceMarketing Mix
  • 27. 28Why a product like radio declinedand now once again emerging asan entertainment medium ?
  • 28. 29What Were the Drivers of This Change ?Technology ?Government policy ?Other media substitutes ?
  • 29. 30Why 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 forgranted.New and more efficient companies are ableto upstage leaders in a much shorter period.
  • 30. 31FactorsInfluencingCompany’sMarketingStrategy
  • 31. 32DemographicsDemographicsSocialChangeSocialChangeEconomicConditionsEconomicConditionsPolitical &Legal FactorsPolitical &Legal FactorsTechnologyTechnologyCompetitionCompetitionEnvironmentalScanningTarget MarketProductDistributionPromotionPriceProductDistributionPromotionPriceExternal Environmentis not controllable Ever-ChangingMarketplaceExternal Marketing EnvironmentPhysical / Natural
  • 32. 33The macro-environmentis the assessment of the external forces that act upon thefirm and its customers, that create threats & opportunities
  • 33. 34P r o d u c tP r o d u c t
  • 34. 35Anything that is offered to the market forattention, acquisition, use or consumption thatsatisfies a want or a needProduct is . . . . .
  • 35. 36Types of ProductsConsumerProductsIndustrialProductsPRODUCTSServices
  • 36. 37Product Life Cycle
  • 37. 38Product Items, Lines, and MixesProduct ItemProduct ItemProduct LineProduct LineProduct MixProduct MixA specific version of a productthat can be designated as adistinct offering among anorganization’s products.A specific version of a productthat can be designated as adistinct offering among anorganization’s products.A group of closely-relatedproduct items.A group of closely-relatedproduct items.All products that anorganization sells.All products that anorganization sells.
  • 38. 39Gillette’s Product Lines & MixBlades and Writingrazors Toiletries instruments LightersFusion – 5 bladeMach 3 TurboMach 3 Series Paper Mate CricketSensor Adorn Flair S.T. DupontTrac II Toni S.T. DupontAtra Right GuardSwivel SilkienceDouble-Edge Soft and DriLady Gillette FoamySuper Speed Dry LookTwin Injector Dry IdeaTechmatic Brush PlusWidth of the product mixWidth of the product mixDepthoftheproductlinesDepthoftheproductlines
  • 39. 40Product MixWidth – how many product lines a company hasLength – how many products are there in a product lineDepth – how many variants of each product exist within aproduct lineConsistency – how closely related the product lines are inend use
  • 40. 41Product PlanningIt is a systematic decision making relating to allaspects of the development and management of afirm’s products, including branding andpackaging that satisfy consumers.
  • 41. 42Product planning process• New product ideas• Screening• Concept Development and testing• Business Analysis• Product Development Programme• Test Marketing• Commercialization
  • 42. 43Branding & PackagingBrand- all identifying marks such as trade names,trade marks, trdae symbols, picture, packagedesign, distinctive colouring or lettering with orwithout attractive slogan.Packaging- An act of designing and producing thepackage for product.
  • 43. 44The Marketing MixThe conventional view of the marketing mix consisted offour components (4 Ps): Product, Price, Place/distribution and Promotion.Generally acknowledged that this is too narrow today;now includes , Processes, Productivity [technology]People [employees], Physical evidenceMarketers today are focused on virtually all aspects ofthe firm’s operations that have the potential to affectthe relationship with customers.
  • 44. 45The “8Ps” of Integrated ServiceManagement vs. the Traditional“4Ps”► Product elements► Place, cyberspace, and time► Process► Productivity and quality► People► Promotion and education► Physical evidence► Price and other user outlays
  • 45. 46Promotion mixIt is a set of controllable variables like personalselling, advertising, publicity, sales promotionincluding dealers aids and consumers aids.
  • 46. 47The Give and Get of Marketing
  • 47. 48Great Words on Marketing1. “The purpose of a company is ‘to create a customer…The onlyprofit center is the customer.’”2. “A business has two—and only two—basic functions: marketingand innovation. Marketing and innovation produce results: all therest are costs.”3. “The aim of marketing is to make selling unnecessary.”4. “While great devices are invented in the Laboratory, greatproducts are invented in the Marketing department.”5. “Marketing is too important to be left to the marketingdepartment.”
  • 48. 49Stages of Customer Interaction
  • 49. 50What Changed in Marketing…• Organize by product units• Focus on profitable transactions• Look primarily at financialscorecard• Focus on shareholders• Marketing does the marketing• Build brands through advertising• Focus on customer acquisition• No customer satisfactionmeasurement• Over-promise, under-deliver• Organize by customer segments• Focus on customer lifetime value• Look also at marketing scorecard• Focus on stakeholders• Everyone does the marketing• Build brands through performance• Focus on customer retention• Measure customer satisfaction andretention rate• Under-promise, over-deliverOld Economy New Economy
  • 50. 51So what will the differentiators be :So what will the differentiators be :• Technology ?• Brand ?
  • 51. 52Thank YouShauvik_debu@yahoo.co.in