Marketing By (gi)ULLU -I know (“gi” Stands for Global Indian)
The 4 P’s of Marketing
A product’s strengths are sorted for analysis into the 4 P’s:
Product — Is the product what consumers want? Consider brand name appeal, packaging, quality, styling, and warrantees.
Price — Is the pricing strategy working? Consider competitive products, suggested retail price, wholesale pricing, cash discounts for volume sales, and other factors that impact on per-unit profit.
Place — Where is the product being bought by consumers? Consider “Brick and mortar” and Internet retailers.
Promotion — How well is marketing working? Consider advertising, public relations, sales force, and sales promotions.
The 4 C’s
Kotler says convert the 4 P’s into 4 C’s first
This puts the customer at the center
7 P’s Services Marketing
Additional P’s to the 4P’s, bringing the total to seven in service Marketing mix.
These extra P’s are:
People — From consumers to marketers to the people who manufacture a product, people exert a great impact on its marketplace success.
Process — The procedures and mechanisms that consumers use to acquire products (e.g., retail, Internet, direct-response or other buying systems) are essential to bring the product to market. Examples: Retail, Internet, direct-response or other buying systems.
Physical evidence — The “real world” factors that influence buying behavior, such as advertising and customers’ prior experience with a brand or specific product will also determine success in the marketplace.
The 7 Stakeholder model
Other stake Holders
Community, more local than global increasingly, within which the company exists
Suppliers who are key partners now
The government itself- How companies manage, influence and shape expectations of the government in a right way is extremely critical in a geo-politically dynamic globalizing world
4 A Framework
You cannot make a trade-off by building an acceptable product that is not affordable; or a product that is affordable but of cheap quality; or a product that is affordable and acceptable but cannot be accessed through appropriate distribution channels.
The 4 A Framework A value framework All four have to be delivered in a synergistic way
Challenges for Traditional marketing
To short –term in nature
Is seen as a cost rather than a revenue generating function
Marketing as a function has not been able to capture RoI’s
Marketing is a horizontal function but very less synergy with other functions. Case for CMO ?(Chief Marketing Officer)
Traditional Marketing : Marketers focus too much on the product or service offering, rather than on the whole consumption chain, the life-space of the customer, and the surrounding competitive environment
Holistic Marketing : Marketers need to invest in the company's relations with all stakeholders - consumers, collaborators, employees, and communities.
Companies need to go beyond customer relationship management towards whole relationship management.
Holistic marketers, succeed by managing a superior value chain that delivers a high level of product quality, service and speed.
They achieve profitable growth by expanding customer share, building loyalty, and capturing customer lifetime value
Example Lexus :operates holistically by designing the customer experience that goes beyond just selling the car
in the dealer showroom,
the customer experience in the car,
the customer experience when he or she brings the car in for service
Crafting The Competitive Platforms
The nine building blocks in the holistic marketing framework constitute a strategic foundation for crafting four key competitive platforms for establishing corporate and business strategies.
Market offerings platform:
basic building blocks : cognitive space, competency space, customer benefits and business domain
gives management strategic insight for developing market offerings.
Business architecture platform:
basic building blocks : competency space, resource space, business domain and business partners
guides management in reconfiguring the business architecture, which is made up of several value chains
Marketing activities platform:
basic building blocks : customer benefits, business domain, customer relationship management and internal resource management
helps management formulate its marketing activities to support the market offerings
Operational system platform:
basic building blocks : business domain, business partners, internal resource management and business partnership management
provides strategic insight for designing the operational system.
High-price firms should not try to win on price but by meeting other segment needs. Ted Levitt said: "You can differentiate anything.“
We have seen chicken differentiated by Frank Perdue and coffee differentiated by Starbucks.
Some famous products did little or no advertising to get noticed: Starbucks, The Body Shop, Viagra, Amazon, Yahoo!, eBay, Palm, PlayStation, Harry Potter, Red Bull, Intel and Blackberry.
IT and Marketing-Solutions/Services
These days, you place a lot of emphasis on the role of technology in marketing. But, so far, customer relationship management (CRM) has not had enough impact. What's going wrong? Are marketers rushing in to build customer relationships - when they don't really want to enter into relationships?
CRM got a bad rap mainly because firms like Siebel and Oracle sold it as a technology without paying sufficient attention to whether a company's culture was ready to use it. These suppliers should have helped their customers first become customer-centric... . CRM is not for every firm and some firms don't realize it. But it gives a competitive edge to firms that want to understand their customers as individuals and want to 'customerise' their messages, offerings, and even purchase terms.