Mantra of Marketing Marketing’s job is to create, communicate and deliver value to a target marketat a profit. Market Management needs to “Create Value,” “Communicate Value,” and “Deliver Value.”There are three businesses here: Product Management; Brand Management; and Customer Management. (Kotler at London Business Forum)
Marketing Vs. SellingSELLING MARKETING1 Emphasis is on the product 1 Emphasis on consumer needs wants2 Company Manufactures the 2 Company first determines customersproduct first needs and wants and then decides out3 Management is sales how to deliver a product to satisfy thesevolume oriented wants4 Planning is short-run- 3 Management is profit orientedoriented in terms of today’s 4 Planning is long-run-oriented in today’sproducts and markets products and terms of new5 Stresses needs of seller products, tomorrow’s markets6 Views business as a good and future growthproducing process 5 Stresses needs and wants of buyers 6 Views business as consumer producing process satisfying process
Marketing Vs. SellingSelling Marketing7 Emphasis on staying with 7 Emphasis on innovation on every existingexisting technology and technology and reducing every sphere, onreducing costs providing better costs value to the customer by adopting a superior technology8 Different departmentswork as in a highly separate 8 All departments of the business integratedwater tight compartments manner, the sole purpose being generation of consumer satisfaction9 Cost determines Price 9. Consumer determine price, price determines cost10 Selling views customeras a last link in business 10. Marketing views the customer last link in business as the very purpose of the business
Marketing Mix Marketing Mix is the combination of fourelements, called the 4P’s (Product, Price, Promotion and Place), that every company has the option of adding, subtracting, or modifying in order to create a desired marketing strategy. (Philip Kotler)
Marketing Mix - A mixture of several ideas and plans followed by a marketingrepresentative to promote a particular product or brand is called marketing mix. Severalconcepts and ideas combined together to formulate final strategies helpful in making abrand popular amongst the masses form marketing mix.Elements of Marketing MixThe elements of marketing mix are often called the four P’s of marketing.• Product- Goods manufactured by organizations for the end-users are called products. (Tangible Product and Intangible Product -Services)• Price - The money which a buyer pays for a product is called as price of the product.• Place - Place refers to the location where the products are available and can be sold or purchased.• Promotion - Advertising, Print media, Television, radio , Billboards, hoardings, banners, Taglines , Word of mouth.Lately three more P’s have been added to the marketing mix. Theyare as follows:• People - The individuals involved in the sale and purchase of products or services come under people.• Process - Process includes the various mechanisms and procedures which help the product to finally reach its target market• Physical Evidence - With the help of physical evidence, a marketer tries to communicate the USP’s and benefits of a product to the end users
Product Mix• Set of all product offered for sale by a company.• It consist of various product line.• Any company’s product mix has four dimension :1. Width,2. Length,3. Depth,4. Consistency.
Product Mix• Width : Number of different product lines carries by the company.• Length : Total number of items in the product mix of the company.• Depth : Assortment of size, color and models offered in each item of a product line.• Consistency : It refers to the relationship of various product line either in their end use, production requirement, distribution channel or other way.
Customer Life time Value customer lifetime value (CLV), lifetime customer value (LCV), or user lifetime value (LTV) is a prediction of the net profitattributed to the entire future relationship with a customer.
Customer Lifetime ValueAdvantages of CLV:• management of customer relationship as an asset• monitoring the impact of management strategies and marketing investments on the value of customer assets• determination of the optimal level of investments in marketing and sales activities• encourages marketers to focus on the long-term value of customers instead of investing resources in acquiring "cheap" customers with low total revenue value• implementation of sensitivity analysis in order to determinate getting impact by spending extra money on each customer.• optimal allocation of limited resources for on going marketing activities in order to achieve a maximum return• a good basis for selecting customers and for decision making regarding customer specific communication strategies• measurement of customer loyalty (proportion of purchase, probability of purchase and repurchase, purchase frequency and sequence etc.