The presentation explains some of the basic concepts of marketing

1. Marketing
Management
Basics
By: Dr. Deepa Rohit
Associate Professor, Weschool

2. ““There are three kinds of companies:
those who make things happen;
those who watch things happen; &
those who wonder what’s happened.”
― Philip Kotler
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Dr. Deepa Rohit

3. What do we
explore
today ?
▪ Selling and Marketing
▪ Significance of Marketing
▪ Some of the basic terms of marketing
▪ Need, want, demand
▪ Value proposition, offering, brand,
satisfaction, value
▪ Evolution of Marketing
▪ Marketing Realities - Today
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Dr. Deepa Rohit

4. 4
Selling
Marketing
Dr. Deepa Rohit

5. “
“Selling is only the tip of the marketing iceberg.”
“There will always be need for selling, but the aim
of marketing is to make selling superfluous”
- Peter Drucker
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Dr. Deepa Rohit

6. Significance of
Marketing
https://www.youtube.com/watch?v=M
8Ro3bZ3WoM&t=9s
Dr. Deepa Rohit

7. 7

8. What is
Marketing?
About
identifying and
meeting needs
profitably
The American Marketing
Association (AMA)
Marketing is the activity,
set of institutions and
processes for creating,
communicating, delivering
and exchanging offering
that have value for
customers, clients,
partners and society at
large
Kotler & Keller
Marketing Management
is the art and science of
choosing target
markets, getting,
keeping and growing
customers through
creating, delivering and
communicating superior
customer value
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Dr. Deepa Rohit

9. What is
marketed?
○ Goods
○ Services
○ Events
○ Experiences
○ Persons
○ Places
○ Properties
○ Organizations
○ Information
○ Ideas
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Dr. Deepa Rohit

10. Typical
Marketing
Process
10Analysing
marketing
opportunities
Selecting
target markets
Designing
marketing
strategies
Developing
marketing
programs
Managing and
execution of
programs
Dr. Deepa Rohit

11. Core Marketing
Concepts
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Dr. Deepa Rohit

12. Need
Want
Demand
Does Marketing
create needs?
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Dr. Deepa Rohit

13. Types of
Needs
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Dr. Deepa Rohit

14. Types of
Needs
1. Stated need : The customer wants an
inexpensive car
2. Real need : low maintenance car
3. Unstated need : expects good service
4. Delight need : additional covers/ insurance free
5. Secret need : social approval / customer
friendly
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Dr. Deepa Rohit

15. Demand
States
○ Negative Demand – consumers
dislike the product and even pay
to avoid it
○ Non-existent demand – unaware/
uninterested in the product
○ Latent demand – strong need but
not satisfied by an existing
product
○ Declining demand – less frequent
purchase
○Irregular demand – purchases
vary based on season, hour etc.
○Full demand – customers are
adequately buying all products
○Overfull demand – excess
demand
○Unwholesome demand –
undesirable social
consequences
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Dr. Deepa Rohit

16. Markets,
Marketer &
Prospect
○ Marketer – someone who seeks response, seller
○ Prospect – the buyer
○ Markets – Traditionally, a physical place where buyers and
sellers are gathered to sell and buy products
○ In marketing, the term ‘Market’ describe customer groups
○ Sellers as Industry
○ Key Customer Markets – Consumer Markets, Business
Markets, Global Market, Non-profit & Government
Market
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Dr. Deepa Rohit

17. It is a combination of
products, services,
information and
experiences
Offering
Offering from a known
source
Brand
A set of benefits that
satisfy customer needs
Value Proposition
The intangible value
proposition is made
physical by an offering
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Dr. Deepa Rohit

18. 18
Value
The sum of
tangible and
intangible benefits
and costs
Quality
Service
Price
Dr. Deepa Rohit

19. 19

20. Reflects person’s judgments of a product’s perceived
performance in relation to the expectations
Satisfaction 20
Expectations Performance
Dr. Deepa Rohit

21. The Production Concept
The Product Concept
The Selling Concept
The Marketing Concept
Evolution of
Marketing
Concepts
The Marketing Concept
The Societal Marketing Concept
https://www.youtube.com/watch?v=-ZNXVaj5LJY
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Dr. Deepa Rohit

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Dr. Deepa Rohit

23. • Product
Quality
• Design
• Features
• Brand name
• Warranties
• Packaging
• Pricing
method
• Discounts
• Payment
method
• Credit period
• Channels
• Assortments
• Locations
• Inventory
• Logistics.
• Advertising
• Sales
Promotion
• PR
• Direct
Marketing
• Personal
Selling
• Social Media
Marketing
Product
Price
Place
Promotion
Marketing Mix- by McCarthy 23
Dr. Deepa Rohit

24. Acceptability
Affordability
Accessibility
Awareness
4As – Customer Centric Values
Proposed by Jagdish Sheth & Rajendra Sisodia
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Dr. Deepa Rohit

25. Value
Delivery
Process
1. Choosing the value
2. Providing/ Delivering the value
3. Communicate Value
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Dr. Deepa Rohit

26. The Value
Chain
○ Michael Porter has proposed the value chain as a
tool for identifying ways to create more customer
value https://www.youtube.com/watch?v=aeshYi6lj2Y
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Dr. Deepa Rohit

27. Core
Competencies
1. It is a source of competitive advantage
and makes a significant contribution to
perceived customer benefits
2. It has applications in wide variety of
markets
3. It is difficult for competitors to imitate in
short run
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Dr. Deepa Rohit

28. Customer
Profitability
Analysis
○ Return on Customer (ROC)
○ A profitable customer is a person, household
or company that over time yields a revenue
exceeding the company’s cost of attracting,
selling, and serving that customer
○ Using activity-based costing
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C1 C2 C3
P1
+ + + Highly Profitable Product
P2
+ Profitable Product
P3
- - unprofitable Product
P4
- Highly unprofitable Product
Dr. Deepa Rohit

29. Customer
Lifetime Value
(CLV)
○ CLV describes the net present value of the stream of
future profits expected over the customer’s lifetime
purchases
○ Attracting & Retaining customers
○ Reducing customer churn (defection)
○ Retention rates – Building brand loyalty, CRM
○ Managing the customer base
1. Reducing the churn rate
2. Increase longevity of the customer relationships
3. Enhancing – Share of Wallet, Cross Selling and Up
selling
4. Making low profit customers more profitable or
terminating them
5. Focusing on disproportionate efforts on high profit
customers
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Dr. Deepa Rohit

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Dr. Deepa Rohit

31. New Marketing
Realities
○ Technology https://www.youtube.com/watch?v=lhXW8_7CaHM
○ Globalization
○ Social Responsibility
◦ Marketing 3.0 – value-driven, collaborative and
thinking marketing focused on sustainable
technological development, culturally rooted,
customer-co-creation
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Dr. Deepa Rohit

32. Thanks!
Any questions?
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