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Introductory Session on Marketing
Introductory Session on Marketing
Introductory Session on Marketing
Introductory Session on Marketing
Introductory Session on Marketing
Introductory Session on Marketing
Introductory Session on Marketing
Introductory Session on Marketing
Introductory Session on Marketing
Introductory Session on Marketing
Introductory Session on Marketing
Introductory Session on Marketing
Introductory Session on Marketing
Introductory Session on Marketing
Introductory Session on Marketing
Introductory Session on Marketing
Introductory Session on Marketing
Introductory Session on Marketing
Introductory Session on Marketing
Introductory Session on Marketing
Introductory Session on Marketing
Introductory Session on Marketing
Introductory Session on Marketing
Introductory Session on Marketing
Introductory Session on Marketing
Introductory Session on Marketing
Introductory Session on Marketing
Introductory Session on Marketing
Introductory Session on Marketing
Introductory Session on Marketing
Introductory Session on Marketing
Introductory Session on Marketing
Introductory Session on Marketing
Introductory Session on Marketing
Introductory Session on Marketing
Introductory Session on Marketing
Introductory Session on Marketing
Introductory Session on Marketing
Introductory Session on Marketing
Introductory Session on Marketing
Introductory Session on Marketing
Introductory Session on Marketing
Introductory Session on Marketing
Introductory Session on Marketing
Introductory Session on Marketing
Introductory Session on Marketing
Introductory Session on Marketing
Introductory Session on Marketing
Introductory Session on Marketing
Introductory Session on Marketing
Introductory Session on Marketing
Introductory Session on Marketing
Introductory Session on Marketing
Introductory Session on Marketing
Introductory Session on Marketing
Introductory Session on Marketing
Introductory Session on Marketing
Introductory Session on Marketing
Introductory Session on Marketing
Introductory Session on Marketing
Introductory Session on Marketing
Introductory Session on Marketing
Introductory Session on Marketing
Introductory Session on Marketing
Introductory Session on Marketing
Introductory Session on Marketing
Introductory Session on Marketing
Introductory Session on Marketing
Introductory Session on Marketing
Introductory Session on Marketing
Introductory Session on Marketing
Introductory Session on Marketing
Introductory Session on Marketing
Introductory Session on Marketing
Introductory Session on Marketing
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Introductory Session on Marketing

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Typically my first session for MBA students,,,,

Typically my first session for MBA students,,,,

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  • 1. The New Economy
    • Globalization:
    • Worldwide Trends in consumer needs
    • Cos launching world products
    • Consumers happily acquiring products and services manufactured in distant countries
    • Currency becoming freely exchangeable
  • 2. Speed…the Currency of the New Economy
    • Rapid rate of obsolescence in
    • Technology and Fashion Markets
    • Automobiles
    • Cellphones
    • Computers
    • Internet Services
  • 3. Floppy Drives Flash Drives Minicomputers Personal Computers ISDN ADSL/Cable Fixed Telephony Mobile Telephony Photographic Films Digital cameras Canals Railways Typewriters Personal Computers Manuscript Printing Press Displaced Technologies Disruptive Technologies
  • 4. The New Empowered Customer
    • Power flows from right of choice
    • More information about more choices
    • Consumers setting prices: Reverse Auctions
    • Consumers demanding and getting services at their convenience
    • Consumers sharing their experiences
  • 5. New capability for cos
    • Powerful information and sales channel
    • Wider geographic reach
    • Internet powerful tool to know consumers better
    • Faster communication internally
    • Customization of offerings
    • More efficient Value Chain
    • Efficiency in Recruitment and Training
  • 6. Promise of the Information Age
    • More accurate levels of production
    • More targeted communication
    • More relevant pricing
  • 7. Two sides of Marketing
    • Formulated
    • Creative
  • 8. Formulated Marketing
    • Focus:
    • Advertising
    • Market Research
    • Sales Management
  • 9. Formulated Marketing Practitioners
    • Hindustan Unilever Ltd
    • P & G
  • 10. Creative Marketing
    • Focus
    • Creativity
    • Passion
  • 11. Creative Marketing Practitioners
    • Amazon
    • Air Deccan
  • 12. Scope of Marketing
    • Starting Point: Organizational Objectives
    • Usually set in terms like:
    • Financial: Returns on Investments
    • Marketing: Market share
  • 13. Job of the Marketing Manager
    • Seek to influence the:
    • LEVEL
    • TIMING
    • COMPOSITION
    • Of Demand
  • 14. Different entities a marketer markets
    • Goods
    • Services
    • Events
    • Persons
    • Places
    • Properties
    • Organization
    • Information
    • Ideas
  • 15. Marketing management
    • Problem of Regulating the
    • Level
    • Timing
    • Character
    • Of Demand for one or more products of an organization
  • 16. The Basic Marketing Tasks Countermarketing Destroy Demand Unwholesome Demand Demarketing Reduce Demand Overfull Demand Maintenance Demand Maintain Demand Full Demand Synchromarketing Synchronize Demand Irregular Demand Remarketing Revitalize Demand Faltering Demand Developmental Marketing Develop Demand Latent Demand Stimulational Marketing Create Demand No Demand Conversional Marketing Disabuse Demand Negative Demand Formal Name Marketing Task Demand State
  • 17. Negative Demand
    • All/most potential customers dislike the product
    • Try avoiding the product
    • The challenge : Develop a plan that will cause attitude to change from negative to positive
  • 18. Marketing Tasks for Negative Demand-Conversional Marketing
    • Analyze sources of resistance
    • BELIEFS
    • VALUES
    • COSTS
    • Communication Program
  • 19. No Demand
    • All/most important customer segments uninterested or indifferent to a particular product
    • Three categories:
    • Familiar objects perceived to have no value
    • Familiar objects,has perceived value, but not in particular market
    • No Demand as no knowledge of unfamilar objects
  • 20. Marketing Task for No Demand….Stimulational Marketing
    • Connect object with some existing need
    • Distribute Information/Increase Exposure
  • 21. Latent Demand
    • When substantial number of people share a strong need for something that does not exist
    • Opportunity to develop a product
    • When right products developed and marketed, market is assured
  • 22. Marketing Task for Latent Demand- Developmental Marketing
    • Recognition of latent need
    • Development of the right product
    • Choosing the right price
    • Right channel of distribution
    • Adequate/convincing product information dissemination
  • 23. Faltering Demand
    • Demand for a product less than formal level and where further decline is expected in the absence of remedial efforts
  • 24. Marketing Tasks for faltering Demand
    • Revise:
    • Target Market
    • Product
    • Marketing Efforts
    • Challenge: Revitalization
  • 25. Irregular Demand
    • Current Timing Pattern of demand is marked by seasonal or volatile fluctuations that depart from the timing pattern of supply
    • Examples:
    • Mass transport
    • Hotels
    • Airconditioner compressors
  • 26. Irregular Demand-Another version
    • Supply is also variable and fluctuates
    • E.g. Mango ripens in summer
    • In demand all through the year
  • 27. Irregular Demand-Options
    • Alter the supply pattern to meet the demand pattern
    • Alter the demand pattern to fit the natural supply pattern
    • Alter Both
  • 28. Synchromarketing
    • Steps
    • Promotion of new uses.desires during off season
    • Seasonal pricing
    • Off season advertising
  • 29. Full Demand
    • Current level and timing of demand is equal to the desired level and timing of demand
    • Two erosive forces:
    • Changing Needs and tastes
    • Active competition
  • 30. Maintenance Marketing
    • Primarily tactical issues
    • Keeping the price right
    • Keeping the salesforce/dealers motivated
    • Keeping tight control over costs
  • 31. Overfull Demand
    • Demand exceeds the level at which the marketer feels able/motivated to supply
    • Demarketing : attempts to discourage customers in general or a certain class of customers either temporarily or permanent basis
  • 32. General Demarketing
    • Undertaken by a seller when he wants to discourage overall demand for his products
    • Arises because of two reasons:
    • Temporary shortage of goods
    • Products suffer from chronic overpopularity
  • 33. Selective Demarketing
    • Attempts to reduce demand selectively
    • Certain unprofitable and undesirable customers discouraged
    • Hotels
    • Clubs
    • Discos
    • Universities
  • 34. Unwholesome Demand
    • Undesirable qualities associated with product
    • Countermarketing/Unselling
    • Vice Products: Alcohol,cigarettes and drugs
    • Wars
    • Idea of Large families
    • Eating tasty but nutritionally poor foods
    • Unselling competitor procuts/brands
  • 35. Marketers Decisions
    • Some common decisions
    • How do we spot/choose attractive target markets?
    • What feautures do we incorporate in our products?
    • What is the positioning of our offering?
    • How do we increase volume of sales
    • What is the size of the sales force that we employ?
  • 36. Consumer Markets
    • Companies selling mass-consumed products and services:
    • Books
    • Televisions
    • Airtravel
    • Healthcare
    • Education
    • Writing Pens
  • 37. Consumer Marketer-Activities and Decisions Research Consumer Needs Develop offering to profitably meet consumer needs Develop products Set Prices Communicate Offerings Make Offerings accessible Decisions: Features Quality Levels Decision: Pricing Strategy Decisions: Differentiation Positioning Strategy What media Channel Strategy Selection of channel members
  • 38. Toyota India….Activities and Decisions
    • 800 cc planned end 2010
    • Target: Europe with fuel efficient cars
    • India,a production hub
    • Fortune R SUV:
    • < 4 m Length Excise Duty: 8%
    • >4 m Length,Excise Duty: 20%
    • Initially targeted: 10% Market share by 2010
    • : Pushed back to 2015
    • 2009 Targets: 40,000 Innovas
    • : 10,000 Corolla Altia
  • 39. Sub-Rs. 7,000 Refrigerators the new battleground
    • Sub Rs. 7,000: new price point
    • Tier II,III and IV markets
    • Highly price sensitive markets
    • Godrej will announce product soon
  • 40. Chotukool from Godrej
    • World’s lowest priced refrigerator@Rs. 3,500
    • 7.8 Kg
    • No Compressor
    • Battery and Cooling Chips
  • 41. Competitors rev up
    • LG and Whirlpool likely to launch sub-Rs.7,000 fridge also
    • Refrigerator penetration@18% (Consumer electronics and Appliances Manaufacturers Association): Plenty of potential
  • 42. Lowering Price Points
    • Critical for success in Indian markets
    • Category Expansion and Price Points
    • From B&W TV to Colour to LCD
    • Lowering Price Points with each Technology Leap
    • TV penetration: 45%
  • 43. Business Markets
    • Primary Motivation of buyers: Profits
    • Products are bought either for:
    • INPUTS
    • RESALE
  • 44. Business Buyers
    • Need to be convinced on how product acquisition will lead to:
    • Higher Revenues
    • Lower Costs
    • Relatively minor role of advertising
    • Strong Role: Sales Force
    • Company Reputation
  • 45. A typical business buyer-Durgapur Steel Plant,WB
    • ERP system implemented
    • 15 months/Rs. 35 Cr
    • HP: Implementation Partner
    • Software:SAP
    • Key functions: PPC
    • QC
    • Material Management
    • Plant Management
    • Sales and Distribution
  • 46. Profile of a Business Marketer-SAP SAP Finance & Public Services Manufacturing Services
  • 47. The Finance & PS Vertical at SAP SAP Finance & PS Banking Defense Healthcare Higher Education, Research Insurance
  • 48. The Manufacturing Vertical at SAP SAP Manufacturing Aerospace Automotive Chemical Consumer Products Engg, Construction
  • 49. The Services Vertical at SAP SAP Services Media Professional Services Retail Telecom Travel Logistics
  • 50. SAP in Media
    • 1600 Media customers worldwide
    • Unique demands
    • Wide ranging customer profiles:
    • Broadcast cos
    • Entertainment cos
    • Premium content suppliers
    • Newspaper and magazine suppliers
    • Book suppliers
  • 51. Global Markets
    • Which markets to enter?
    • Mode of entry?
    • Product: Adaptation/motivation
    • Pricing: How to set pricing in different countries
    • Communication: How to adapt
  • 52. Nonprofit and Government Markets
    • Limited purchasing power
    • Lowest bid system: Little room for quality
  • 53. Definition of Marketing
    • The Social Perspective:
    • Process by which individuals and groups obtain what they need and want through:
    • Creating
    • Offering
    • Exchanging
    • Products and Services of Value with others
  • 54. Definition of Marketing
    • The Management Perspective
    • Process of planning and executing the
    • Conception
    • Pricing
    • Promotion
    • Distribution of
    • Ideas
    • Goods
    • Services
    • To create exchanges that satisfy individual and organizational goals
  • 55. Target Markets and Segmentation
    • No marketer can expect to satisfy everyone with same offering
    • Need for marketer to choose its customer
    • Step 1: Marketer divides a market by identifying and profiling different buyer groups: Segmentation
  • 56. Segmentation Market is composed of several elements-there are elements of homogeneity and hetreogeneity Segmentation brings like minded decision makers to gether Before After
  • 57. STP-T
    • Step 2
    • Targeting
    • Process of selection of one or more segments
    • The marketer develops a market offering for selected target market
  • 58. STP-P
    • Create a position in the mind of the targeted buyer through communication
  • 59.
    • Leading brand from Wipro Consumer Care
    • Other Brand: Chandrika
    • Indian soap market: Rs. 7500 Cr
    • Third largest brand after Lifebuoy and Lux
    • Leader in the South
    • More than 50% from rural markets
    Positioning Santoor
  • 60. Santoor….VFM
    • Early 1990s: Small 5-gm packs@Rs. 5
    • Benefits from customer downtrading
    • Santoor still have packs@Rs. 6 and Rs. 10
  • 61. Santoor….Distribution
    • Early mover advantage
    • Available at 1.3 Million outlets(21% of outlets)
    • Gaps in the North
  • 62. Santoor….the original positioning
    • Launched in 1984
    • “Natural Ingredients”
    • Many brands positioned similarly
  • 63. Repositioning Santoor
    • Younger-looking skin
    • Stuck to it
  • 64. A Simple Marketing System Industry (A collection of sellers) Market (A collection Of buyers) Communication Goods/ Services Money Information
  • 65. Markets
    • Groupings of Buyers
    • Different types of markets
    • Needs Markets : Buyers share common needs
    • The Health Tourism Market
    • The Adventure Tourism Market
    • The Golf Tourism Market
    • The Spritual Tourism Market
  • 66. Product Market
    • Buyers share needs of products
    • E.g The Branded menswear market
    • Market: All buyers of branded menswear products
    • Industry: All sellers of branded menswear products
  • 67. The Swiss Watch Market
  • 68. The Swiss Watch Market
    • Total Exports in 2009= 13.2 Billion Swiss Francs = 12.3 Billion US $
    • Major Brands:
    • Rolex
    • Omega
    • Cartier
  • 69.
    • Geneva,based Giant luxury watch mfr
    • One of the world’s most valuable brands
    • Largest single luxury watch brand
    • 2000 watches a day, Revenues: $ 3 Billion
  • 70. The Rolex SubmarineR
  • 71. Rolex GMT MasterGold
  • 72.
    • French Jewellery and Watch mnaufacturer
    • Owned by Switzerland’s Richemont Group
    • Founded by Cartier Family
    • Long history of serving royalty, stars and celebrities
    • No. 1 seller of luxury Jewellery in the world
    • No. 2 seller of luxury watches in the world
  • 73. Cartier Jewellery
  • 74. A Cartier Model
  • 75.
    • Subsidiary of the Swiss Swatch Group
    • One of the most recognized and known brands
    • First watch in moon in 1969
    • Worn by James Bond since 1995
    • Worn by JFK, Prince Williams, George Clooney,Nicole Kidman and Cindy Crawford
  • 76. Swiss Watches by Material
  • 77. Swiss Watches….The Main Markets
  • 78. Swiss watches….the Top Markets
  • 79. Leading Watch Exporting coutries
  • 80. Leading Watch Exporting Countries
  • 81. Demographic Market
    • Buyers share common demographic characteristics
    • e.g the DINK Family
  • 82. Geographic Market
    • Buyers share common geographic coordinates
    • e.g. the Maharashtra market
  • 83. Other Markets
    • Commodity Markets
    • Job Markets
    • Donor Markets
  • 84. Consumer Markets Government Markets Manufacturers Market Resource Markets Intermediary Markets
  • 85. Marketplace versus Marketspace
    • Marketplace: Physical
    • Going to Foodworld to buy a packet of Maggi
    • Marketspace: Digital
    • Going to www.irctc.co.in to buy a train ticket
  • 86. Shift from Marketplace to Marketspace
    • Physical location of inventory irrelevant
    • Actual site of buying and selling irrelevant
    • Traditional marketplace interaction eliminated
  • 87. Difference between marketspace transaction and marketplace transaction
    • Content
    • Context
    • Infrastructure
  • 88. The Networked Economy
    • Disintermediation: Removal of the intermediaries
    • Reintermediation:
    • Portals (Yahoo,Rediff)
    • Auctions (eBay,UBid)
    • Matchmakers (Naukri,Indiamarkets)
    • Comparison Shopping Engines (Shopping.com,Froogle)
  • 89. IndiaMarkets.com
    • India’s first B2B Infomediary
    • 140 product categories
    • Few listed categories: Electrical & Power equipements,Healthcare,Plastic,Rubber and rubber products,Electronics,Gems and Jewelleries,Paper
  • 90. Procurement Management Services(PMS) from IndiaMarkets.com
    • Extensive database of validated suppliers
    • Physical nationwide network of business centres
    • Proven online auction mechanism
  • 91. The Net Connects…..Disintermediation
    • The Net connects :
    • Firm with firm
    • Firm with customers
    • People with people
    • At far lower costs and far greater flexibility
  • 92. Buying Alliance
    • The Net brings buyers together
    • Worldwide Retail Exchange( www.worldretailexchange.com )
    • 17 Major Retailers came together :
    • Bestbuy
    • J C Penney
    • M&S
    • Target
    • Tesco
  • 93. The Net brings buyers and sellers together
    • IndiMarkets.com
    • MarketRx.com
    • Improved connectivity reducing cost of communication and co-ordination of exchange transactions
    • Possible to bypass meditators who have traditionally facilitated flow of information and goods
  • 94. Disintermediation
    • Several industries:
    • Travel(cleartrip,makemytrip,Yatra)
    • Bookstores(Flipkart,FirstandSecond)
    • Stockmarkets(NSE)
  • 95. Disintermediation threatens middlemen
    • Travel Agents
    • Stockbrokers
    • Marriagebrokers
    • Retail Banks
    • Bookstores
    • Automobile Retailers
    • Education Consultants
  • 96. Disintermediation creates new middlemen
    • For every mediator eliminated,several new intermediaries created
    • Flipkart disintermediates book retailers
    • Flipkart employs UPS for order fulfilment
  • 97. For most products
    • Products:
    • Two components:
    • Physical Component
    • Information Component
  • 98. Internet Enables Seperation
    • Information from Physical Product
    • Core Product from Complementary Product
  • 99. Accessories Financing Insurance Warranty Car Film Lens Camera Internet Connection Software Computer Complementary Product Core Product
  • 100. Buying a car….Analog World
    • Buyer depends on Automobile dealer for:
    • Information
    • Negotiation
    • Financing
    • Warranties
    • Delivery
  • 101. Buying a car….Analog World
    • Advantage:
    • One Stop Convenience
    • Disadvantage:
    • Middlemen often not the best/lowest cost providers of information and complementary products
  • 102. Buying a car….Digital World
    • Customers can:
    • Search for information
    • Negotiate
    • Pay for
    • Receive Delivery
    • At different points of time from different providers
  • 103. The New Mediators
    • Integrated Mediators replaced by
    • Combination of:
    • Marketspace Mediators : Manages Information Flows
    • Marketplace Mediators: Manages Physical Flows
  • 104. The New Mediators-The Dark Side
    • Need to deal with a number of specialized mediators
    • High Search and Evaluation Costs
  • 105. Customers connect with firms
    • Gather Info
    • Evaluate products
    • Configure Products
    • Place Orders
    • Get Technical Support

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