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Marketing Management Session 1 & 2


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Marketing Management Session 1 & 2

  1. 1. Defining Marketing for the Twenty-First Century
  2. 2. Good Marketing is No Accident The roaring success of four-wheeler Tata Ace, in a market earlier dominated by three-wheeler load carriers, was due to a deep understanding of the market needs and customer requirements.
  3. 3. IMPORTANCE OF MARKETING <ul><li>Backbone of any organization </li></ul>
  4. 4. The New Economy <ul><li>Consumer benefits from the digital revolution include: </li></ul><ul><ul><li>Increased buying power. </li></ul></ul><ul><ul><li>Greater variety of goods and services. </li></ul></ul><ul><ul><li>Increased information. </li></ul></ul><ul><ul><li>Enhanced shopping convenience. </li></ul></ul><ul><ul><li>Greater opportunities to compare product information with others. </li></ul></ul>
  5. 5. The New Economy <ul><li>Firm benefits from the digital revolution include: </li></ul><ul><ul><li>New promotional medium. </li></ul></ul><ul><ul><li>Access to richer research data. </li></ul></ul><ul><ul><li>Enhanced employee and customer communication. </li></ul></ul><ul><ul><li>Ability to customize promotions. </li></ul></ul>
  6. 6. What is Marketed? Goods Services Events & Experiences Persons Places & Properties Organizations Information Ideas
  7. 7. Successful New Product Launches Require Careful Planning
  8. 8. Marketing Can Promote Ideas
  9. 9. Marketing Defined <ul><li>Kotler’s social definition: </li></ul><ul><ul><li>“Marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others.” </li></ul></ul>
  10. 10. Marketing Defined <ul><li>The AMA managerial definition: </li></ul><ul><ul><li>“Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.” </li></ul></ul>
  11. 11. What is Marketing? Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.
  12. 12. What is Marketing Management? 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.
  13. 13. Selling is only the tip of the iceberg “ There will always be a need for some selling. But the aim of marketing is to make selling superfluous. The aim of marketing is to know and understand the customer so well that the product or service fits him and sells itself. Ideally, marketing should result in a customer who is ready to buy. All that should be needed is to make the product or service available.” Peter Drucker
  14. 14. Core Marketing Concepts <ul><li>Target markets and market segmentation </li></ul><ul><li>Marketplace, market-space, metamarkets </li></ul><ul><li>Marketers & prospects </li></ul><ul><li>Needs, wants, demands </li></ul><ul><li>Product offering and brand </li></ul><ul><li>Value and satisfaction </li></ul><ul><li>Exchange and transactions </li></ul><ul><li>Relationship and networks </li></ul><ul><li>Marketing channels </li></ul><ul><li>Supply chain </li></ul><ul><li>Competition </li></ul><ul><li>Marketing environment </li></ul><ul><li>Marketing program </li></ul>
  15. 15. Core Marketing Concepts <ul><li>Target markets & segmentation </li></ul><ul><ul><li>Differences in needs, behavior, demographics or psychographics are used to identify segments . </li></ul></ul><ul><ul><li>The segment served by the firm is called the target market. </li></ul></ul><ul><ul><li>The market offering is customized to the needs of the target market. </li></ul></ul>
  16. 16. Core Marketing Concepts A Simple Marketing System
  17. 17. Core Marketing Concepts <ul><li>Shopping can take place in a: </li></ul><ul><ul><li>Marketplace (physical entity) </li></ul></ul><ul><ul><li>Marketspace (virtual entity) </li></ul></ul><ul><li>Metamarkets refer to complementary goods and services that are related in the minds of consumers. </li></ul><ul><li>Marketers seek responses from prospects . </li></ul>
  18. 18. Core Marketing Concepts <ul><li>Needs describe basic human requirements such as food, air, water, clothing, shelter, recreation, education, and entertainment. </li></ul><ul><li>Needs become wants when they are directed to specific objects that might satisfy the need. (Fast food) </li></ul><ul><li>Demands are wants for specific products backed by an ability to pay. </li></ul>
  19. 19. Demand States Nonexistent Latent Declining Irregular Full Unwholesome Overfull Negative
  20. 20. Core Marketing Concepts <ul><li>A product is any offering that can satisfy a need or want, while a brand is a specific offering from a known source. </li></ul><ul><li>When offerings deliver value and satisfaction to the buyer, they are successful. </li></ul>
  21. 21. Core Marketing Concepts <ul><li>Marketers can enhance the value of an offering to the customer by: </li></ul><ul><ul><li>Raising benefits. </li></ul></ul><ul><ul><li>Reducing costs. </li></ul></ul><ul><ul><li>Raising benefits while lowering costs. </li></ul></ul><ul><ul><li>Raising benefits by more than the increase in costs. </li></ul></ul><ul><ul><li>Lowering benefits by less than the reduction in costs. </li></ul></ul>
  22. 22. Core Marketing Concepts <ul><li>Exchange involves obtaining a desired product from someone by offering something in return. Five conditions must be satisfied for exchange to occur. </li></ul><ul><li>Transactions involve at least two things of value, agreed-upon conditions, a time of agreement, and a place of agreement. </li></ul>
  23. 23. Core Marketing Concepts <ul><li>Relationship marketing aims to build long-term mutually satisfying relations with key parties, which ultimately results in marketing network between the company and its supporting stakeholders. </li></ul>
  24. 24. Core Marketing Concepts <ul><li>Marketing Channels </li></ul><ul><li>Communication channels </li></ul><ul><li>Distribution channels </li></ul><ul><li>Service channels </li></ul><ul><li>Deliver messages to and receive messages from target buyers. </li></ul><ul><li>Includes traditional media, non-verbal communication, and store atmospherics. </li></ul>
  25. 25. Core Marketing Concepts <ul><li>Marketing Channels </li></ul><ul><li>Communication channels </li></ul><ul><li>Distribution channels </li></ul><ul><li>Service channels </li></ul><ul><li>Display or deliver the physical products or services to the buyer / user. </li></ul>
  26. 26. Core Marketing Concepts <ul><li>Marketing Channels </li></ul><ul><li>Communication channels </li></ul><ul><li>Distribution channels </li></ul><ul><li>Service channels </li></ul><ul><li>Carry out transactions with potential buyers by facilitating the transaction. </li></ul>
  27. 27. Core Marketing Concepts <ul><li>A supply chain stretches from raw materials to components to final products that are carried to final buyers. </li></ul><ul><li>Each company captures only a certain percentage of the total value generated by the supply chain. </li></ul>
  28. 28. Core Marketing Tools Forces Impacting the Task Environment Socio-cultural Environment Technological Environment Legal-Political Environment Natural Environment Demographics Economics
  29. 29. Core Marketing Concepts The Four P Components of the Marketing Mix
  30. 30. Company Orientations Societal Marketing Concept The orientation of the firm typically guides marketing efforts Marketing Concept Customer Concept Product Concept Selling Concept Production Concept
  31. 31. The Marketing Concept <ul><li>Achieving organizational goals requires that company be more effective than competitors in creating, delivering, and communicating customer value. </li></ul><ul><li>Four pillars of the marketing concept: </li></ul><ul><ul><li>Target market </li></ul></ul><ul><ul><li>Customer needs </li></ul></ul><ul><ul><li>Integrated marketing </li></ul></ul><ul><ul><li>Profitability </li></ul></ul>
  32. 32. HOLISTIC MARKETING CONCEPT <ul><li>Relationship Marketing </li></ul><ul><li>Integrated Marketing </li></ul><ul><li>Internal Marketing </li></ul><ul><li>Socially Responsible Marketing </li></ul>
  33. 33. Changes in the Marketplace <ul><li>Globalization, technological advances, and deregulation have created many challenges: </li></ul><ul><ul><li>Customers </li></ul></ul><ul><ul><li>Brand manufacturers </li></ul></ul><ul><ul><li>Store-based retailers </li></ul></ul><ul><li>Both companies and marketers have been forced to respond and adjust. </li></ul>
  34. 34. Discussion <ul><li>Does Marketing Create or Satisfy Needs? </li></ul>
  35. 35. CASELET : COCA-COLA <ul><li>Each day, people in 200 countries around the world drink some 1.2 billion 8-ounce servings of the cola. </li></ul><ul><li>Coca-Cola which got its start in 1883, has successfully kept its brand relevant for over 100 years. </li></ul><ul><li>Revenues in 2003 topped $21 billion. </li></ul>
  36. 36. CASELET: COCA- COLA <ul><li>COCA- COLA also expanded overseas. </li></ul><ul><li>During World- War II, when the armies shipped the Cokes to soldiers in Europe and Asia, Coke cemented its image as the “All-American Beverage” </li></ul>
  37. 37. CASELET:COCA-COLA <ul><li>But over a period of time, Coke realized it needs to give a local flavour to the brand in each country. </li></ul><ul><li>Coca- Cola gets two third of its revenues from outside the United States. </li></ul>
  38. 38. CASELET- COCA COLA <ul><li>Coke is not present in only Myanmar, Cuba and Syria. </li></ul><ul><li>Coca- Cola remains the topmost in brand value. </li></ul>
  39. 39. CASELET: COCA-COLA <ul><li>What have been the key success factors for Coca- Cola? </li></ul><ul><li>Where is Coca- Cola vulnerable? What should they watch out for? </li></ul><ul><li>What recommendations would you make to their senior marketing executives going forward? What should they be sure to do with their marketing? </li></ul>