Marketing and marketing mix -BY Saurav
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Marketing and marketing mix -BY Saurav

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Marketing Notes By Saurav

Marketing Notes By Saurav

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  • 23/09/11
  • 23/09/11

Marketing and marketing mix -BY Saurav Marketing and marketing mix -BY Saurav Presentation Transcript

  • MarketingBasics of Marketing -106
  • Learning Objectives1.Introduction2.Definition Of Marketing3.Core Marketing Concepts4.Marketing orientation/ approaches5. Marketing Myopia6.Functions of Marketing7. Tangibility Spectrum/ Goods services Continuum. 2
  • What is Marketing…??Selling?Advertising?Promotions?Making products available in stores?Maintaining inventories? All of the above, plus much more! 3
  • Marketing = ?Marketing is an organizational function and a set ofprocesses for creating, communicating and deliveringvalue to customer and for managing value to customerand for managing customer relationships in ways thatbenefit the organization and its stake holders. American Marketing Association 4
  • Marketing = ?Marketing management is the art and science ofchoosing target markets and getting, keeping, andgrowing customers through creating, delivering, andcommunicating superior customer value. 5
  • Marketing=?Marketing is about identifying and meeting human and social needs.One of the shortest good definition of marketing is “Meeting needs profitably”. 6
  • Simple Marketing System Communication Goods/services Industry Market(a collection (a collection of sellers) of Buyers) Money Information 7
  • 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 P’s –  product  price  place  promotion 8
  • The 4 Ps & 4Cs Marketing Convenience Mix Place ProductCustomer Solution Price Promotion Customer Communication Cost 9
  • Marketing Mix Promotion Place Product Price2. Product variety3. Quality4. Design 1. List price 2. Channels5. Features 1. Sales promotion 2. Discounts 3. Coverage6. Brand name 2. Advertising 3. Allowances 4. Assortments7. Packaging 3. Sales force 4. Payment period 5. Locations8. Sizes 4. Public relations 5. Credit terms 6. Inventory9. Services 5. Direct marketing 7. Transport10. Warranties11. Returns 10
  • The Marketing MixThe conventional view of the marketing mix consisted of four components (4 Ps): Product, Price, Place/ distribution and Promotion.Generally acknowledged that this is too narrow today; now includes , Processes,]People [employees & Customers], Physical evidenceMarketers today are focused on virtually all aspects of the firm’s operations that have the potential to affect the relationship with customers. 11
  • Scope – What do we market  Goods  Services  Events  Experiences  Personalities  Place  Organizations  Properties  Information  Ideas and concepts 12
  • Core Concepts of MarketingBased on : Needs, Wants, Desires / demand Products, Utility, Value & Satisfaction Exchange, Transactions & Relationships Markets, Marketing & Marketers. 13
  • Core Concepts of MarketingNeeds, wants Utility, Value & Products demands Satisfaction Marketing & Exchange, Transaction Markets Marketers Relationships 14
  • Core Concepts of Marketing Need – food ( is a must ) Want – Pizza, Burger, French frys ( translation of a need as per our experience ) Demand – Burger ( translation of a want as per our willingness and ability to buy ) Desire – Have a Burger in a five star hotel 15
  • Needs, wants and Demands1.Needs- are basic human requirements. For ex- Food, Security, Clothing, and Survival.2.Wants- are needs directed to a product.3.Demand- is want accompanied by buyer’s ability to pay. 16
  • UtilityMarketers can provide four types of utility to their target customers.1.Form Utility- For Ex. Design concept and fabric into wide range of clothing2. Time Utility- For ex. ATM, Amazon.com, Dell etc.3.Place Utility-For ex. Domino Piza delivered at door step of Customer. 17
  • Utility Continued………….4. Possession Utility- For ex customer who has purchased car may use it for whatever purpose he desires. 18
  • Offerings and BrandsCompanies address needs by putting forth a value proposition, a set of benefits that they offer to customers to satisfy their needs. The Intangible value proposition is made physical by an offering, which can be a combination of products, services, Information, and experience.A brand is an offering from a known source. 19
  • Value and SatisfactionValue is central marketing concept.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 20
  • Customer looks ValueValue = Benefit / CostBenefit = Functional Benefit + Emotional BenefitCost = Monetary Cost + Time Cost+ Energy Cost + Psychic Cost 21
  • Concept Of ExchangeAn exchange arises when one person gives something of value ,in return for something of value from another person.The Conditions necessary for an exchange to take place are3. At least, two parties must be involved.4. Each party must have something that interest the other. 22
  • Exchange continued…………….3.The parties must involve themselves voluntarily and each party must consider the other desirable or at least acceptable to deal with.4.Each party must be in a position to communicate and deliver the product5. Each party must be free to accept or reject any offer from the other party. 23
  • MarketMarket is a set of existing and potential buyers for a defined product or service.Market Place- is the place where one goes for Shopping and market space is digital as when shop on the internet.Meta Market- the convergence of Suppliers of all complementary products and Services that are closely related to product in consumer markets. 24
  • Types of Markets1. Consumer Market2. Business Market/ Industrial Market3. Global Market4. Non Profit and Govt. Market 25
  • Approaches/ orientations to Marketing1. The Production Concept2. The Product Concept3. The Selling Concept4. The Marketing Concept5. The Holistic Marketing Concept 26
  • The Production ConceptThe production Concept is one of the oldest concepts in business. It holds that consumers will prefer products that are widely available and inexpensive. Managers of Production- oriented businesses concentrate on achieving high production efficiency, low costs, and Mass Distribution 27
  • Product ConceptThe Product concept Proposes that consumers favor products that offer the most quality, performances, or innovative features. Managers in these organizations focus on making superior products and improving them over time. 28
  • The selling ConceptThe selling concept holds that consumers and businesses if left alone, won’t buy enough of the organization’s products. The organization must, therefore, undertake an aggressive selling and promotion effort.The selling concept is practiced most aggressively with unsought goods such as Insurance, encyclopedias and cemetery pots. 29
  • Marketing ConceptThe Marketing Concept emerged in the mid -1950s. Instead of product – centered ,Make and sell philosophy business shifted to sense and respond. 30
  • The Holistic Marketing conceptThe holistic marketing concept is based on the development, design, and implementation of marketing programs, processes and activities that recognizes their breadth and interdependencies. Holistic Marketing is thus an approach that attempts to recognize and reconcile the scope and complexities of marketing activities. 31
  • Over View Of Holistic Marketing 32
  • Relationship MarketingMarketing is to establish, maintain and enhance relationship with customer and other partners at profit, so that the objective of the parties involved are met. This is achieved by mutual exchange and fulfillment of promises. 33
  • Why is it important?• 5 times costlier than old one• 5% improvement in customer retention= 25 to 85% increase in profit• deliver additional products and services to an existing customer 34
  • Basis of building relationship• Mutual benefits• Mutual commitment• Trust• Connective links 35
  • The Firm’s Potential Marketing Relationships Supplier Partnerships Goods Services Suppliers Suppliers Lateral Partnerships Business Competitors Units Employees Focal Nonprofit Organizations Firm Functional Departments GovernmentInternalPartnerships Intermediate Ultimate Customers Customers Buyer Partnerships 36
  • Marketing MyopiaTheodore Levit in his classical article “ Marketing Myopia” in the Harvard Business Review argues that industries fail not because markets are saturated but because of the failure and short- sightedness of the Management.Marketing Myopia occurs when a marketer is excessively preoccupied with product development, manufacturing or selling & ignores customer needs , wants and Interests. 37
  • Marketing Myopia Continued……….For example- Radio and Pager.Ways to overcome Marketing Myopia1.Be Customer Oriented, not product oriented2. Market orientation should permeate throughout the organization.3. Managers need to be proactive and Visionary. 38
  • Difference between Selling and Marketing Selling Marketing1.Emphasis on Product. 1. Emphasis on consumer2.Company manufactures the needs and wants. product first and then decide 2. Company first determines to sell it. consumer needs and wants3.Management is sales volume and then decides on how to oriented. deliver a product to satisfy these wants. 3. Management is profit oriented 39
  • Difference between Selling and Marketing Selling Marketing4.Views business as a goods 4. Views business as consumer producing process. satisfying process.5.Cost determines price. 5.Consumer determine price,6. Customers as the last link in price determines cost. business. 6. Customer as the Very beginning of a business. 40
  • Functions Of MarketingMarketing as a managerial activity involves analyzing the marketing opportunities, planning the marketing activities, implementing marketing plans and setting control mechanism in such a way that organizational objectives are accomplished at minimum cost.2. Understanding Consumer needs.3. Environmental Scanning and Marketing Opportunity analysis. 41
  • Functions of MarketingContinued….3.Development of Marketing Plan and Strategy4.Implementation Of Marketing Plan5. Development of Control Mechanisms. 42
  • 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 43
  • Customer –CUSTOMER has needs, wants, demands and desiresUnderstanding these needs is starting point of the entire marketingThese needs, wants …… arise within a framework or an ecosystemUnderstanding both the needs and the ecosystem is the starting point of a long term relationship 44
  • 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 45
  • Product 46
  • Product is . . . . . Anything that is offered to the market forattention, acquisition, use or consumption that satisfies a want or a need 47
  • Types of Products PRODUCTS Consumer Industrial Services Products Products 48
  • Product Items, Lines, and Mixes A specific version of a product that can be designated as aProduct Item distinct offering among an organization’s products. A group of closely-relatedProduct Line product items. All products that anProduct Mix organization sells. 49
  • Product 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 50
  • Gillette’s Product Lines & Mix Width of the product mixDepth of the product lines Blades and Writing razors Toiletries instruments Lighters Fusion – 5 blade Mach 3 Turbo Mach 3 Series Paper Mate Cricket Sensor Adorn Flair S.T. Dupont Trac II Toni S.T. Dupont Atra Right Guard Swivel Silkience Double-Edge Soft and Dri Lady Gillette Foamy Super Speed Dry Look Twin Injector Dry Idea Techmatic Brush Plus 51
  • What is a Service? Definingthe EssenceAn act or performance offered by one party to another(performances are intangible, but may involve use ofphysical products)An economic activity that does not result in ownershipA process that creates benefits by facilitating a desiredchange in customers themselves, or their physicalpossessions, or intangible assets 52
  • Some Industries - Service Sector Banking, stock broking Health care Lodging Education Restaurants, bars, Wholesaling and retailing catering Laundries, dry-cleaning Insurance Repair and maintenance News and entertainment Professional (e.g., law, architecture, consulting) Transportation (freight and passenger) 53
  • Goods services continuum Pure Intangible Banking Service Good Transportation Major Service with Minor Product Business Hotels Product = Service Computers Major Product with Minor Services Materials / ComponentsPure Tangible Product 54
  • Major Characteristic of Services Intangibility – Services are intangibility cannot be seen, tasted, felt, heard or smelled before purchase. Inseparability - Services are produced and consumed simultaneously. Variability or Heterogeneity – Services are highly variable Perishability – Services cannot be stored. Non Ownership - Services are rendered but there is no transfer of title 55
  • Books Recommended1. Principles Of Marketing- Philip Kotler and Gary Armstrong2. Marketing Management- Rajan saxena3. Marketing Management- V.S. Ramaswamy and S. Namakumari4. Marketing Management- ICFAI University5. Marketing Management- Dr. K. Karunakaran 56
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