01 marketing concepts


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  • 04/04/11
  • 04/04/11 Drucker, Yogi Berra, A Chinese Proverb, William Davidow, David Packard
  • 01 marketing concepts

    1. 1. <ul><li>MARKETING </li></ul><ul><li>CONCEPTS </li></ul><ul><li>& </li></ul><ul><li>ITS ENVIRONMENT </li></ul>
    2. 2. What is Marketing…?? <ul><li>Selling? </li></ul><ul><li>Advertising? </li></ul><ul><li>Promotions? </li></ul><ul><li>Making products available in stores? </li></ul><ul><li>Maintaining inventories? </li></ul><ul><li>All of the above, plus much more! </li></ul>
    3. 3. Marketing = ? <ul><li>Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, services to create exchanges that satisfy individual and organizational goals </li></ul><ul><li>American Marketing Association </li></ul>
    4. 4. Marketing = ? <ul><li>Marketing management is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value. </li></ul>
    5. 5. Simple Marketing System Goods/services Money Information Industry (a collection of sellers) Market (a collection of Buyers) Communication
    6. 6. Marketing = ? <ul><li>Marketing is the sum of all activities that take you to a sales outlet. After that sales takes over. </li></ul><ul><li>Marketing is all about creating a pull, sales is all about push. </li></ul><ul><li>Marketing is all about managing the four P’s – </li></ul><ul><ul><li>product </li></ul></ul><ul><ul><li>price </li></ul></ul><ul><ul><li>place </li></ul></ul><ul><ul><li>promotion </li></ul></ul>
    7. 7. The 4 Ps & 4Cs Marketing Mix Customer Solution Customer Cost Communication Convenience Product Price Promotion Place
    8. 8. Difference Between - Sales & Marketing ? Sales trying to get the customer to want what the company produces Marketing trying to get the company produce what the customer wants
    9. 9. Scope – What do we market <ul><li>Goods </li></ul><ul><li>Services </li></ul><ul><li>Events </li></ul><ul><li>Experiences </li></ul><ul><li>Personalities </li></ul><ul><li>Place </li></ul><ul><li>Organizations </li></ul><ul><li>Properties </li></ul><ul><li>Information </li></ul><ul><li>Ideas and concepts </li></ul>
    10. 10. Core Concepts of Marketing <ul><li>Based on : </li></ul><ul><li>Needs, Wants, Desires / demand </li></ul><ul><li>Products, Utility, Value & Satisfaction </li></ul><ul><li>Exchange, Transactions & Relationships </li></ul><ul><li>Markets, Marketing & Marketers. </li></ul>
    11. 11. Core Concepts of Marketing Needs, wants demands Markets Marketing & Marketers Utility, Value & Satisfaction Xchange, Transaction Relationships Products
    12. 12. In order to understand Marketing let us begin with the Marketing Triangle Customers Competition Company
    13. 13. Who is a Customer ?? Anyone who is in the market looking at a product / service for attention, acquisition, use or consumption that satisfies a want or a need CUSTOMER IS . . . . .
    14. 14. Customer – <ul><li>CUSTOMER has needs, wants, demands and desires </li></ul><ul><li>Understanding these needs is starting point of the entire marketing </li></ul><ul><li>These needs, wants …… arise within a framework or an ecosystem </li></ul><ul><li>Understanding both the needs and the ecosystem is the starting point of a long term relationship </li></ul>
    15. 15. How Do Consumers Choose Among Products & Services? <ul><li>Value - the value or benefits the customers gain from using the product versus the cost of obtaining the product. </li></ul><ul><li>Satisfaction - Based on a comparison of performance and expectations. </li></ul><ul><ul><li>Performance > Expectations => Satisfaction </li></ul></ul><ul><ul><li>Performance < Expectations => Dissatisfaction </li></ul></ul>
    16. 16. Customers - Problem Solution <ul><li>As a priority , we must bring to our customers “ WHAT THEY NEED ” </li></ul><ul><li>We must be in a position to UNDERSTAND their problems </li></ul><ul><li>Or in a new situation to give them a chance to AVOID the problems </li></ul>
    17. 17. Customer looks for Value <ul><li>Value = Benefit / Cost </li></ul><ul><li>Benefit = Functional Benefit + Emotional Benefit </li></ul><ul><li>Cost = Monetary Cost + Time Cost + Energy Cost + Psychic Cost </li></ul>
    18. 18. The Marketing Plan <ul><li>A written document that acts as a guidebook of marketing activities for the marketing manager </li></ul>
    19. 19. CONTENTS of MARKETING PLAN <ul><li>Business Mission Statement </li></ul><ul><li>Objectives </li></ul><ul><li>Situation Analysis (SWOT) </li></ul><ul><li>Marketing Strategy </li></ul><ul><ul><li>Target Market Strategy </li></ul></ul><ul><ul><li>Marketing Mix </li></ul></ul><ul><ul><ul><li>Positioning </li></ul></ul></ul><ul><ul><ul><li>Product </li></ul></ul></ul><ul><ul><ul><li>Promotion </li></ul></ul></ul><ul><ul><ul><li>Price </li></ul></ul></ul><ul><ul><ul><li>Place – Distribution </li></ul></ul></ul><ul><ul><ul><li>People </li></ul></ul></ul><ul><ul><ul><li>Process </li></ul></ul></ul><ul><li>Implementation, Evaluation and Control </li></ul>
    20. 20. The Marketing Process Target Market Strategy Marketing Strategy Product Promotion Place/Distribution Price Marketing Mix Business Mission Statement Objectives Situation or SWOT Analysis Implementation Evaluation, Control
    21. 21. Factors Influencing Company’s Marketing Strategy
    22. 22. External Marketing Environment Physical / Natural Demographics Social Change Economic Conditions Political & Legal Factors Technology Competition Environmental Scanning Target Market Product Distribution Promotion Price External Environment is not controllable Ever-Changing Marketplace
    23. 23. The macro-environment is the assessment of the external forces that act upon the firm and its customers, that create threats & opportunities
    24. 24. P r o d u c t
    25. 25. Anything that is offered to the market for attention, acquisition, use or consumption that satisfies a want or a need Product is . . . . .
    26. 26. Types of Products Consumer Products Industrial Products PRODUCTS Services
    27. 27. Product Items, Lines, and Mixes Product Item Product Line Product Mix A specific version of a product that can be designated as a distinct offering among an organization’s products. A group of closely-related product items. All products that an organization sells.
    28. 28. Product Mix <ul><li>Width – how many product lines a company has </li></ul><ul><li>Length – how many products are there in a product line </li></ul><ul><li>Depth – how many variants of each product exist within a product line </li></ul><ul><li>Consistency – how closely related the product lines are in end use </li></ul>
    29. 29. The Marketing Mix <ul><li>The conventional view of the marketing mix consisted of four components (4 Ps): Product, Price, Place/ distribution and Promotion . </li></ul><ul><li>Generally acknowledged that this is too narrow today; now includes , P rocesses , P roductivity [technology ] P eople [employees], P hysical evidence </li></ul><ul><li>Marketers today are focused on virtually all aspects of the firm’s operations that have the potential to affect the relationship with customers. </li></ul>
    30. 30. The “8Ps” of Integrated Service Management vs. the Traditional “4Ps” <ul><li>Product elements </li></ul><ul><li>Place, cyberspace, and time </li></ul><ul><li>Process </li></ul><ul><li>Productivity and quality </li></ul><ul><li>People </li></ul><ul><li>Promotion and education </li></ul><ul><li>Physical evidence </li></ul><ul><li>Price and other user outlays </li></ul>
    31. 31. The Give and Get of Marketing
    32. 32. Great Words on Marketing <ul><li>“ The purpose of a company is ‘to create a customer…The only profit center is the customer.’” </li></ul><ul><li>“ A business has two—and only two—basic functions: marketing and innovation. Marketing and innovation produce results: all the rest are costs.” </li></ul><ul><li>“ The aim of marketing is to make selling unnecessary.” </li></ul><ul><li>“ While great devices are invented in the Laboratory, great products are invented in the Marketing department.” </li></ul><ul><li>“ Marketing is too important to be left to the marketing department.” </li></ul>
    33. 33. Drivers of Customer Satisfaction <ul><li>Many aspects of the firm’s value proposition contribute to customer satisfaction: </li></ul><ul><ul><li>The core product or service offered </li></ul></ul><ul><ul><li>Support services and systems </li></ul></ul><ul><ul><li>The technical performance of the firm </li></ul></ul><ul><ul><li>Interaction with the firm and it employees </li></ul></ul><ul><ul><li>The emotional connection with customers </li></ul></ul><ul><li>Ability to add value and to differentiate as a firm focuses more on the top levels </li></ul>
    34. 34. Marketers and Markets <ul><li>Marketers are focused on stimulating exchanges with customers who make up markets – B2C or B2B. </li></ul><ul><li>The market is comprised of people who play a series of roles: decision makers, consumers, purchasers, and influencers. </li></ul><ul><li>It is absolutely essential that marketers have a detailed understanding of consumers, their needs and wants . </li></ul><ul><li>Much happens before and after the sale to affect customer satisfaction </li></ul>
    35. 35. Stages of Customer Interaction
    36. 36. What Changed in Marketing… <ul><li>Organize by product units </li></ul><ul><li>Focus on profitable transactions </li></ul><ul><li>Look primarily at financial scorecard </li></ul><ul><li>Focus on shareholders </li></ul><ul><li>Marketing does the marketing </li></ul><ul><li>Build brands through advertising </li></ul><ul><li>Focus on customer acquisition </li></ul><ul><li>No customer satisfaction measurement </li></ul><ul><li>Over-promise, under-deliver </li></ul><ul><li>Organize by customer segments </li></ul><ul><li>Focus on customer lifetime value </li></ul><ul><li>Look also at marketing scorecard </li></ul><ul><li>Focus on stakeholders </li></ul><ul><li>Everyone does the marketing </li></ul><ul><li>Build brands through performance </li></ul><ul><li>Focus on customer retention </li></ul><ul><li>Measure customer satisfaction and retention rate </li></ul><ul><li>Under-promise, over-deliver </li></ul>Old Economy New Economy
    37. 37. <ul><li>THANK YOU…. </li></ul>