13-06-26 Drucker, Yogi Berra, A Chinese Proverb, William Davidow, David Packard
Introduction to Marketing Management
2What is Marketing…??Selling?Advertising?Promotions?Making products available in stores?Maintaining inventories?All of the above, plus much more!
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
4Marketing Management= ?Marketing management is the art and science ofchoosing target markets and getting, keeping, andgrowing customers through creating, delivering, andcommunicating superior customer value.
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
8Difference Between - Sales & Marketing ?Salestrying to get the customer to want what thecompany producesMarketingtrying to get the company produce whatthe customer wants
9Scope – What do we market Goods Services Events Experiences Personalities Place Organizations Properties Information Ideas and concepts
10Core Concepts of MarketingBased on : Needs, Wants, Desires / demand Products, Utility, Value & Satisfaction Exchange, Transactions & Relationships Markets, Marketing & Marketers.
11Needs, wantsdemandsMarkets Marketing &MarketersUtility, Value &SatisfactionXchange, TransactionRelationshipsProductsCore Concepts of Marketing
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
13In order to understand Marketing let us begin with theMarketing TriangleCustomersCompetitionCompany
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 . . . . .
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
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
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
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
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
22The Strategic-Planning, Implementation,and Control Process
28Why a product like radio declinedand now once again emerging asan entertainment medium ?
29What Were the Drivers of This Change ?Technology ?Government policy ?Other media substitutes ?
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.
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.
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
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
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.
42Product planning process• New product ideas• Screening• Concept Development and testing• Business Analysis• Product Development Programme• Test Marketing• Commercialization
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.
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.
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
46Promotion mixIt is a set of controllable variables like personalselling, advertising, publicity, sales promotionincluding dealers aids and consumers aids.
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.”
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
51So what will the differentiators be :So what will the differentiators be :• Technology ?• Brand ?