Introduction to marketing-valuePresentation Transcript
INTRODUCTION TO MARKETING Ms. Anupama Gupta
Marketing management is defined as the analysis, planning, implementation, and control of programs designed to create, build, and maintain beneficial exchanges with target buyers for the purpose of achieving organizational objectives.
What do you mean by the term Market?
Particular Place or Locality, where goods are bought and sold
A market is any place where the sellers of a particular good or service can meet with the buyers of that goods and service where there is a potential for a transaction to take place. The buyers must have something they can offer in exchange for there to be a potential transaction.
Market refers to the group of consumers or organizations that is interested in the product, has the resources to purchase the product, and is permitted by law and other regulations to acquire the product.
Types of Market
Perfect competition is an economic model that describes a hypothetical market form in which no producer or consumer has the market power to influence prices.
Large number of buyers and sellers
No Government Intervention
also called competitive market, where there are a large number of independent firms which have a very small proportion of the market share.
There are many producers and many consumers in a given market.
Consumers have clearly defined preferences
Sellers attempt to differentiate their products from those of their competitors
The goods and services are heterogeneous , usually (though not always)
An oligopoly is a market form in which a market is dominated by a small number of sellers .
Few sellers and Large buyers
High Advertising Cost
A monopoly is defined as a persistent market situation where there is only one provider of a product or service, in other words a firm that has no competitors in its industry.
Monopolies are characterized by a lack of economic competition for the good or service that they provide and a lack of viable substitute goods.
What is Marketing?
Process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others.
More simply: Marketing is the delivery of customer satisfaction at a profit.
Core Marketing Concepts Products and Services Value, satisfaction, and quality Needs, wants, and demands Exchange, transactions, and relationships Markets Core Marketing Concepts
What Motivates a Customer To Take Action?
Needs - state of felt deprivation for basic items such as food and clothing and complex needs such as for belonging. i.e. I am thirsty
Wants - form that a human need takes as shaped by culture and individual personality. i.e. I want a Coca-Cola.
Demands - human wants backed by buying power. i.e. I have money to buy a Coca-Cola.
What Will Satisfy Consumer’s Needs and Wants?
Products - anything that can be offered to a market for attention, acquisition, use or consumption and that might satisfy a need or want.
Examples : persons, places, organizations, activities, and ideas .
Services - activities or benefits offered for sale that are essentially intangible and don’t result in the ownership of anything.
Examples : banking, airlines, haircuts, and hotels .
How do consumer Choose Products and services?
Customer Value - benefit that the customer gains from owning and using a product compared to the cost of obtaining the product.
Customer Satisfaction - depends on the product’s perceived performance in delivering value relative to a buyer’s expectations.
How do Consumers obtain Products and Services
Exchanges - act of obtaining a desired object from someone by offering something in return.
Transactions - trade of values between parties. Usually involves money and a response.
Relationships - building long-term relationships with consumers, distributors, dealers, and suppliers.
Who Purchase Products and Services? Market - buyers who share a particular need or want that can be satisfied by a company’s products or services. Actual Buyers Potential Buyers
Modern Marketing System Suppliers Competitors Company (Marketer) Marketing Intermediaries End User Market Environment Environment
Key Customer Markets
Institutional Market and Government Market
Changing Business and Marketing Scenario
Fundamental Marketing Concepts
Offering and Brands
Value and Satisfaction
Shift in Marketing Trends
From Marketing Does the marketing- Every One does the Marketing
Organizing by Product – Organizing by customer units
From Making Everything – Buying More goods and services from others
From using many Suppliers –working with fewer suppliers
From old market position- New areas
From emphasizing tangible assets to Intangible Assets
Brand Building through advertisement to brand Building through performance and Integrated Communication Mix
Functions of Marketing Management
Developing MARKETING Strategies and Plans
Capturing Marketing insights
Connecting With customers
Building Strong Brands
Shaping the market offerings
Creating Long Term Growth
Creating Customer Value and Satisfaction Dr. Manish Agarwal
What is Value ?
It refers to the 'output' of a function.
Personal and Culture
Is a concept that describes the beliefs of an individual or culture.
Values are considered subjective and vary across people and cultures.
Types of values include ethical/moral values, doctrinal/ideological (political, religious) values, social values, and aesthetic values.
The economic value of something is how much a product or service is worth to someone relative to other things
It can be either an assessment of what it could or should be the price (Valuation), or an explanation of its actual market value (Price).
Value of a product within the context of marketing means the relationship between the consumer’s expectations of product quality to the actual amount paid for it.
Customer Perceived Value
(CPV) is the difference between the prospective customer's evaluation of all the benefits and all the costs of an offering relative to perceived alternatives.
Total Customer Value
bundle of benefits from product
Total Customer Cost
Bundle of Cost customer expect to incur in evaluating, obtaining, using and disposing of the given market offering, including monetary , time, energy and psychic cost.
How to deliver high Customer Value?
Value Proposition :
The whole cluster of Benefits the company promises to deliver
Value Delivery System
What the Company has promised to provide the customer has to be actually provided.
CS =Product Perceived performance (outcome) – His Expectation
Covers concepts used by companies to manage their relationships with customers, including the capture, storage and analysis of customer information.
How to go about CRM?
Identify your prospects and customers.
Differentiate customers in terms of their (i)need and (ii) their value to your company
Interact with customers to improve your knowledge about their individual needs and to build stronger relationships.
Customize products , services and messages to each customer.
Aspects of CRM
Operational CRM- automation or support of customer processes that include a company’s sales or service representative
Collaborative CRM- direct communication with customers that does not include a company’s sales or service representative (“self service”)
Analytical CRM- analysis of customer data for a broad range of purposes
Operational CRM provides support to “front office" business processes, including sales, marketing and service. Each interaction with a customer is generally added to a customer's contact history, and staff can retrieve information on customers from the database as necessary.
One of the main benefits of this contact history is that customers can interact with different people or different contact “channels” in a company over time without having to repeat the history of their interaction each time.
Collaborative CRM covers the direct interaction with customers, for a variety of different purposes, including feedback and issue-reporting. Interaction can be through a variety of channels, such as email, automated phone (Automated Voice Response AVR) or SMS.
The objectives of Collaborative CRM can be broad, including cost reduction and service improvements.
Design and execution of targeted marketing campaigns to optimize marketing effectiveness.
design and execution of specific customer campaigns, including customer acquisition, cross selling- retention
analysis of customer behavior to aid product and service decision making (e.g. pricing, new product development etc.)
management decisions, e.g. financial forecasting and customer profitability analysis
prediction of the probability of customer defection (churn).