Caiibgbmmarketingmngtmodule d
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  • 04/04/12
  • 04/04/12
  • Drucker, Yogi Berra, A Chinese Proverb, William Davidow, David Packard

Caiibgbmmarketingmngtmodule d Caiibgbmmarketingmngtmodule d Presentation Transcript

  • General Bank ManagementMarketing Management for Bankers MODULE D C AIIB
  • What is Marketing…??Selling?Advertising?Promotions?Making products available in stores?Maintaining inventories? All of the above, plus much more! 2
  • Marketing = ?Marketing is the process of planning and executing theconception, pricing, promotion, and distribution of ideas,goods, services to create exchanges that satisfyindividual and organizational goals American Marketing Association 3
  • Marketing = ?Marketing management is the art and science ofchoosing target markets and getting, keeping, andgrowing customers through creating, delivering, andcommunicating superior customer value. 4
  • Simple Marketing System Communication Goods/services Industry Market(a collection (a collection of sellers) of Buyers) Money Information 5
  • 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 6
  • The 4 Ps & 4Cs Marketing Convenience Mix Place ProductCustomer Solution Price Promotion Customer Communication Cost 7
  • Difference Between - Sales & Marketing ?Sales trying to get the customer to want what the company producesMarketing trying to get the company produce what the customer wants 8
  • Scope – What do we market  Goods  Services  Events  Experiences  Personalities  Place  Organizations  Properties  Information  Ideas and concepts 9
  • Core Concepts of MarketingBased on : Needs, Wants, Desires / demand Products, Utility, Value & Satisfaction Exchange, Transactions & Relationships Markets, Marketing & Marketers. 10
  • Core Concepts of MarketingNeeds, wants Utility, Value & Products demands Satisfaction Marketing & Xchange, Transaction Markets Marketers Relationships 11
  • 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 12
  • In order to understand Marketing let us begin with the Marketing Triangle Customers Company Competition 13
  • 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 14
  • 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 15
  • How Do Consumers Choose Among Products & Services?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 16
  • 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 17
  • Customer looks for ValueValue = Benefit / CostBenefit = Functional Benefit + Emotional BenefitCost = Monetary Cost + Time Cost + Energy Cost + Psychic Cost 18
  • A lysis OfCompetition naW ae yourcompet or ho r it s?W ae t stengt a w knesses? hat r heir r hs nd eaW ha e been t staegies? hat v heir r tHow ae t l yt r r hey ikel o espond t yourM r ingpl n? o aket a 19
  • Strategic Marketing Strategic marketing management is concerned with how we will create value for the customer Asks two main questions  What is the organization’s main activity at a particular time? – Customer Value  What are its primary goals and how will these be achieved? – how will this value be delivered 20
  • Strategic PlanningStrategic Planning is the managerial process of creating and maintaining a fit between the organization’s objectives and resources and the evolving market opportunities. Also called Strategic Management Process All organizations have this Can be Formal or Informal 21
  • The Strategic-Planning, Implementation,and Control Process 22
  • Business Strategic-Planning Process External environment (Opportunity & Threat analysis)Business Mission Goal Formulation Internal Environment (Strength/ Weakness analysis) 23
  • Strategy Formulation Environmental Analysis Competitor Internal Analysis Customer Supplier Technology Know-How Regulatory Manufacturing Know-How Social/ Political Marketing Know-How Distribution Know-How Logistics Opportunities & Threats Strength & Weaknesses Identity Core Competencies Identify opportunity Fit internal Competencies with external opportunities 24 Firm Strategies
  • The Marketing PlanA written document that acts as a guidebook of marketing activities for the marketing manager 25
  • CONTENTS of MARKETING PLAN Business Mission Statement Objectives Situation Analysis (SWOT) Marketing Strategy  Target Market Strategy  Marketing Mix  Positioning  Product  Promotion  Price  Place – Distribution  People  Process Implementation, Evaluation and Control 26
  • The Marketing Process Business Mission Statemen t Objective s Situation or SWOT Analysis Marketing Strategy Target Market Strategy Marketing Mix Product Place/Distribution Promotion Price Implementation Evaluation, Control 27
  • Marketing Environment
  • Why a product like radio declinedand now once again emerging as an entertainment medium ? 29
  • What Were the Drivers of This Change ? Technology ? Government policy ? Other media substitutes ? 30
  • Why Market Leaders Suffered ? HMT vs. Titan HLL vs. Nirma Bajaj vs. Honda boom, then bust and now resurgence Market leadership today cannot be taken for granted.New and more efficient companies are able to upstage leaders in a much shorter period. 31
  • FactorsInfluencingCompany’sMarketingStrategy 32
  • External Marketing EnvironmentExternal Environment Social Ever-Changing is not controllable Change Marketplace Demographics Economic Product Physical / Natural ConditionsDistributionPromotion Price Competition Target Market Political & Legal Factors Technology Environmental Scanning 33
  • The macro-environment is the assessment of the external forces that act upon the firm and its customers, that create threats & opportunities 34
  • Product 35
  • Product is . . . . . Anything that is offered to the market forattention, acquisition, use or consumption that satisfies a want or a need 36
  • Types of Products PRODUCTS Consumer Industrial Services Products Products 37
  • 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. 38
  • 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 39
  • 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 40
  • 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 41
  • 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) 42
  • Classification of Services 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 43
  • 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 44
  • 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, Productivity [technology ]People [employees], Physical evidenceMarketers today are focused on virtually all aspects of the firm’s operations that have the potential to affect the relationship with customers. 45
  • The “8Ps” of Integrated ServiceManagement vs. the Traditional “4Ps” ► Product elements ► Place, cyberspace, and time ► Process ► Productivity and quality ► People ► Promotion and education ► Physical evidence ► Price and other user outlays 46
  • The Give and Get of Marketing 47
  • Great Words on Marketing• “The purpose of a company is ‘to create a customer…The only profit center is the customer.’”• “A business has two—and only two—basic functions: marketing and innovation. Marketing and innovation produce results: all the rest are costs.”• “The aim of marketing is to make selling unnecessary.”• “While great devices are invented in the Laboratory, great products are invented in the Marketing department.”• “Marketing is too important to be left to the marketing department.” 48
  • Drivers of Customer Satisfaction Many aspects of the firm’s value proposition contribute to customer satisfaction:  The core product or service offered  Support services and systems  The technical performance of the firm  Interaction with the firm and it employees  The emotional connection with customers Ability to add value and to differentiate as a firm focuses more on the top levels 49
  • Marketers and MarketsMarketers are focused on stimulating exchanges with customers who make up markets – B2C or B2B.The market is comprised of people who play a series of roles: decision makers, consumers, purchasers, and influencers.It is absolutely essential that marketers have a detailed understanding of consumers, their needs and wants.Much happens before and after the sale to affect customer satisfaction 50
  • Stages of Customer Interaction 51
  • What Changed in Marketing… Old Economy New Economy• Organize by product units • Organize by customer segments• Focus on profitable transactions • Focus on customer lifetime value• Look primarily at financial • Look also at marketing scorecard scorecard• Focus on shareholders • Focus on stakeholders• Marketing does the marketing • Everyone does the marketing• Build brands through advertising • Build brands through performance• Focus on customer acquisition • Focus on customer retention• No customer satisfaction • Measure customer satisfaction and measurement retention rate• Over-promise, under-deliver • Under-promise, over-deliver 52
  • Are Banks trulymarketing-savvy andcustomer - centric? 53
  • Myth 1 – The larger the range of products, the more customer-centric I am.Mythbuster – The range of products hasemerged from beingcompetition-centric. 54
  • Myth 2 – Better technology (read CRM) leads tobetter customer service. Mythbuster – Technology alone does not deliver, helps people do. 55
  • Myth 3 – Launch a product and the customer will startusing instantly. - Give a customer a card and he will learn how to play with it immediatelyMythbuster – Customers needTo be educated too… 56
  • Myth 4 – The only way to get a customer is fromcompetition. Mythbuster – Customers are not only present where competition is. 57
  • Myth 5 – Just advertise and - You will sell. Mythbuster – Advertising will only sell, Not retain customers. 58
  • Myth 6 – No difference between marketing & selling Mythbuster – “Selling focuses on the needs of the seller; marketing on the needs of the buyer. 59
  • Myth 7 – In the absence of relationships ‘trust’ buildsfinancial brands Mythbuster – Trust is not a differentiator at all… it is the very minimum that the customer expects!! 60
  • So what will the differentiators be : • Technology ? • Brand ? 61
  • The real differentiator of customer – centricity in acommoditised world of financial products - Customer Service ! 62
  • Thank 63