1 defining marketing for the 21st century


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1 defining marketing for the 21st century

  1. 1. Marketing Management
  2. 2. The scope of Marketing What is Marketing?1. “…meeting needs profitably!”2. “Marketing is an organizational function and a set of processes for creating, communicating and delivering value to customers and managing customer relationships in ways that benefits organization and its stake holders.”3. “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.”4. “Marketing deals with identifying and meeting human and social needs”
  3. 3. The scope of Marketing Exchange and transaction A person can obtain a product in one of four ways • Self-produce • Use force • Beg • Exchange
  4. 4. The scope of Marketing Exchange and transactions Exchange: The process of obtaining a desired product from someone by offering something in return. Transaction: A trade of values between two or more parties. When an agreement is reached we say transaction has happened. For exchange potential five conditions must be satisfied 1. There are at least two parties 2. Each party has something that might be of value to the other party 3. Each party is capable of communication and delivery 4. Each party is free to accept or reject the exchange offer 5. Each party believes it is appropriate or desirable to deal with the other party
  5. 5. The scope of Marketing A transaction involves • At least two things of value • Agreed upon conditions • A time of agreement • A place of agreement A legal system supports and enforces compliance
  6. 6. Transfer In transfer A gives X to B but does not receive any thing tangible in return • Gifts, subsidies, charity • Transfer expects something like gratitude, changed behaviour, Thank- you notes, invitations, a business firm wants a purchase, a politician wants vote,
  7. 7. What each party expects Mahindra and Mahindra sales a tracter • Farmer wants:  High quality equipment  A fair price  Timely delivery  Good financial terms  Reliable parts and service • Mahindra and Mahindra wants  Good price for the tracter  On-time payment  Positive word of mouth
  8. 8. The scope of MarketingWhat is Marketed?2. Goods Cars, Trucks, Televisions, Machine Tools,3. Services Machines, Industrial rental, barbers, beauticians, Airlines, Hotels, Car chemicals, watches,4. Events cosmetics ……. maintenance and repair, accountants, lawyers, Trades shows, Artistic performances,5. Experiences doctors, consultants, service providers …… Sporting events (Olympics, World Cup), Amusement park, water park, Multiplexes6. Persons Celebrity marketing, Stars selling7. Places themselves through agents, PR agencies State ads like tourist or business destinations8. Properties etc. Real Estate or financial property like stocks9. Organisations and bonds Corporate, Universities ….. Companies,10. Information News channels, Encyclopedias ….11. Ideas Awareness about AIDS, Family planning, Discouraging smoking ….
  9. 9. The scope of MarketingWho Markets?A marketer is someone who seeks response from another party called prospect,Eight demand states:5. Negative Demand6. Nonexistent Demand7. Latent Demand8. Declining Demand9. Irregular Demand10. Full Demand11. Overfull Demand12. Unwholesome Demand
  10. 10. Markets Collection of buyers and sellers who transact over a particular product or product class (e.g. the housing market or grain market) Sellers: Constituting industry Market Buyers: Constituting markets
  11. 11. Markets Resources Resources Resource Money Markets Money Taxes, Services Goods Money Services Money TaxesManufacturer Government Consumer Markets Markets Markets Taxes, Services Goods Services Taxes, Money Goods Money Money Intermediary Goods & Services Goods & Services Markets
  12. 12. Key customer markets Consumer markets Business markets Global markets Non-profit and Govt Markets Communication Goods/ Services Market Industry (collection of buyers)(Collection of sellers) Money Information
  13. 13. Marketplaces, Marketspaces and Metamarkets •Marketplace: is physical as you shop a store •Marketspace: is digital as you shop on Internet •Metamarket: is a cluster of complementory productsand services that are closely related in the minds of consumers but are spread across a diverse set of Industries Automobile metamarket:Automobile Manufactures Insurance companies Auto magazinesNew car Dealers Mechanics Classified Auto ads inUsed car Dealers Spare part dealers newspapers Internet sites on AutoFinancing Companies Service shops
  14. 14. The scope of MarketingHow business and Marketing are changing?Changing TechnologyGlobalizationDeregulationsPrivatizationCustomer empowermentCustomizationHeighten competitionIndustry convergenceRetail transformationDisintermediation
  15. 15. Company orientation/ Philosophies•The Production Concept High production efficiency, Low cost and mass distribution•The Product Concept Total focus on product and no focus on other needs•The Selling concept Intention is to sell more and more•The Marketing Concept No HUNTING but GARDENING, Understanding EXPRESSED needs Reactive Market Orientation) Understanding LATENT needs (Proactive Market Orientation) And TOTAL Market Orientation•The Holistic Marketing Concept Relationship Marketing Integrated Marketing Internal Marketing Social Responsibility Marketing
  16. 16. Marketing Company orientation Senior Other Communications Products & Services ChannelsDepartment Management Departments Internal Integrated Marketing Marketing Holistic Marketing Socially Relationship Responsible Marketing Marketing Partners CustomersEthics Community Channel Environment Legal
  17. 17. Relationship Marketing Has a aim of building mutually satisfying long term relationships with key parties- Customers, Suppliers, Distributors and Other marketing partners- in order to earn and retain their business. Marketing must not only do ‘customer relationship management’ (CRM) but also ‘partner relationship management’ (PRM) Key constituents are • Customers • Employees • Marketing partners (channels, suppliers, distributors, dealers, agencies) • Members of financial community (shareholders, investors, analysts) Ultimate outcome is a Marketing Network
  18. 18. Integrated Marketing Marketing Mix Marketing MixProducts PlaceProduct variety ChannelsQuality CoverageDesign AssortmentsFeatures LocationsBrand name InventoryPackaging Transport Target MarketSizesServicesWarranties Promotion PriceReturns Sales promotion List price Discounts Advertising Allowances Sales force Payment period Public relations Credit terms Direct Marketing
  19. 19. Integrated Marketing Marketing MixFour P’s Four C’sProduct Customer solutionPrice Customer costPlace ConveniencePromotion Communication
  20. 20. Internal Marketing Marketing must be embraced by the other departmentsSocial Responsibility MarketingIncorporates social responsibility and understands broader concerns and the ethical, environmental, legal and social context.
  21. 21. Fundamental Marketing Concepts:Core concepts:• Needs, wants and Demands• Target Markets, Positioning and Segmentation (STP) Marketing Environment:• Offerings and Brands 1.2. Task market into segments Divide Environment Marketing Planning needs 1. Stated 2. Profile distinct groups using• Value and satisfaction Company Supplydemographic, psychographic channel 2. Real needs describes a longer channel Analysing Marketing opportunities 1. Suppliers from channels Communication Competition target perceivedactual Value reflects3. Unstated needs Selecting includesdifferences• Marketing channels and behavioral allathe tangible the market Distributors channels A brand is an offering from Known source and2. Distribution offerings costs to 3. DecideRawbenefits strategies potential4. materialand and Delight to intangiblerival Designingsegment with greatest marketing needs• Supply chain Dealers channels to 3. Service Components seen customers. Value can be mightas a substitutes that a buyerprogrammes Developing 5. Secret needs opportunitymarketing Target Customers• Competition 4.8. BroadFinal products combinationconsider market and For chosen Quality, Service of target Managing marketing efforts Environment Supply chain offering develop represents Value delivery Price• Marketing Environment Demographic system Economic• Marketing planning Physical Technological Political-legal Social-cultural
  22. 22. Factors Influencing company Marketing Strategy Demographic/ Technological/ economic physical environment environment Marketing intermediaries Mk s sy tg sys fo in pl an g kt ni M Product ng Target Price Place customers Publics Suppliers s sy n ta g Mk Promotion tio en o r tg em tg c s y o nt pl Mk s ro l im & Competitions Political/ Social/ Legal Cultural environment environment
  23. 23. Future of Marketing From Marketing does the marketing to everyone does the Marketing From organizing by product units to organising by customer segments From making everything to buying more goods and services from outside From using many suppliers to working with fewer suppliers in a ‘partnership’ From relying on old market positions to uncovering new ones From emphasizing tangible assets to emphasizing intangible assets From building brands through advertising to building brands through performance and integrated communications
  24. 24. Future of Marketing From attracting customers through stores and salespeople to making products available online From selling to everything to trying to be the best firm serving well defined target markets From focusing on profitable transactions to focusing on customer lifetime value From a focus on gaining market share to a focus on building customer share From being local to being ‘glocal’- both local and local From focusing on the financial scorecard to focusing on the marketing scorecard From focusing on shareholders to focusing on stakeholders