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Marketing Management, VTU, Module 1 revised

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Marketing Management, VTU, Module 1 revised

  1. 1. MODULE 1DEFINING MARKETINGFOR THE 21ST CENTURY
  2. 2. Market The term “Market” originates from Latin noun„Marcatus‟ which means a place where business areconducted. Place concept: as a convenient meeting place, wherebuyers and sellers gather together. Area Concept: it is known as Economic concept tomeet “Unmet wants, Products to meet demand &Means of interaction” Demand Concept: it is known as TotalDemand, hence group of people having unmetwants, purchasing power to make their demandeffective to fulfill.2Prof. Raghavendran V, Dept ofMBA, AIET, Mijar
  3. 3. Good Marketing is No Accident The roaring successof four-wheeler TataNano, in a marketearlier dominated byFour-wheelerVehicles, was due toa deepunderstanding of themarket needs andcustomerrequirements.3Prof. Raghavendran V, Dept ofMBA, AIET, Mijar
  4. 4. Importance of marketing Success often depends on marketing ability.Finance, operations, accounting and otherbusiness functions will not really matter, ifthere is no sufficient demand for products andservices so the company can make a profit.4Prof. Raghavendran V, Dept of MBA, AIET,Mijar
  5. 5. What is Marketing? According to American ManagementAssociation Marketing is an organizationalfunction and a set of processes forcreating, communicating, and delivering valueto customers and for managing customerrelationships in ways that benefit theorganization and its stakeholders.5Prof. Raghavendran V, Dept ofMBA, AIET, Mijar
  6. 6. Nature of MarketingProf. Raghavendran V, Dept ofMBA, AIET, Mijar6 It is both consumer and competitors oriented. It starts with consumers and ends withconsumers. Important function of management. Long term objective is to make profitmaximization. Integrated process based on strategies andmodels. It must deliver goods & services in exchange ofmoney.
  7. 7. Scope of MarketingProf. Raghavendran V, Dept ofMBA, AIET, Mijar7 Scope is very wide, must be analyzed in terms ofmarketing performance through various function.Marketing FunctionsFunctions of Exchange Buying, Assembling, SellingFunctions of Physical DistributionTransportation, Inventory, Warehousing, MaterialFunctions of FacilitiesFinancing, Insurance, Standardization, After salesServices
  8. 8. What is Marketing Management? Marketing management is the art andscience of choosing target markets andgetting, keeping, and growing customersthrough creating, delivering, andcommunicating superior customer value.8Prof. Raghavendran V, Dept ofMBA, AIET, Mijar
  9. 9. Selling is only the tip of theiceberg “There will always be a needfor some selling. But the aimof marketing is to makeselling superfluous. The aimof marketing is to know andunderstand the customer sowell that the product orservice fits him and sellsitself. Ideally, marketingshould result in a customerwho is ready to buy. All thatshould be needed is to makethe product or serviceavailable.”9Prof. Raghavendran V, Dept of MBA, AIET,Mijar
  10. 10. Exchanges and TransactionsA person can obtain a product in one of four waysand they are……. i.e.1.One can produce for himself2.One can force to get the product (Robbery)3.One can beg (Homeless), lastly4.One can offer a product in EXCHANGE ofmoney/ any other products.10Prof. Raghavendran V, Dept ofMBA, AIET, Mijar
  11. 11. Exchange Exchange is the core concept of marketing. It isprocess of obtaining a desired product fromsomeone by something in return. For anyexchanges 5conditions must be satisfied and theyare:1. There are at least 2 parties.2. Each party has something that might value tothe other party.3. Each party is capable of communication &delivery.4. Each party is free to accept or reject theexchange offer5. Each party believes it is appropriate to deal with11Prof. Raghavendran V, Dept of MBA, AIET,Mijar
  12. 12. Transaction When an agreement is reached between twoparties, we say that a transaction take place.Transaction is a trade of values between two ormore parties.Then what is transfer??12Prof. Raghavendran V, Dept of MBA, AIET,Mijar
  13. 13. What is Marketed?GoodsServicesEvents & ExperiencesPersonsPlaces & PropertiesOrganizationsInformationIdeas13Prof. Raghavendran V, Dept ofMBA, AIET, Mijar
  14. 14. Successful New Product LaunchesRequire Careful Planning14Prof. Raghavendran V, Dept ofMBA, AIET, Mijar
  15. 15. Marketing Can Promote Ideas15Prof. Raghavendran V, Dept of MBA, AIET,Mijar
  16. 16. A Simple Marketing System16Prof. Raghavendran V, Dept ofMBA, AIET, Mijar
  17. 17. Structure of Flows in a Modern Exchange Economy17Prof. Raghavendran V, Dept of MBA, AIET,Mijar
  18. 18. Who markets?A marketer is someone who seeks a responsefrom another party, called the prospect.Marketers are responsible for demandmanagement.18Prof. Raghavendran V, Dept of MBA, AIET,Mijar
  19. 19. Demand StatesNonexistent LatentDeclining IrregularFull UnwholesomeOverfullNegative19Prof. Raghavendran V, Dept of MBA, AIET,Mijar
  20. 20. Key Customer MarketsConsumer MarketsBusiness MarketsGlobal MarketsNonprofit/ Government Markets20Prof. Raghavendran V, Dept ofMBA, AIET, Mijar
  21. 21. www.marutitruevalue.com21Prof. Raghavendran V, Dept ofMBA, AIET, Mijar
  22. 22. Functions of Chief Marketing Officers Strengthening the brands Measuring marketing effectiveness Driving new product development based oncustomer needs Gathering meaningful customer insights Utilizing new marketing technology22Prof. Raghavendran V, Dept ofMBA, AIET, Mijar
  23. 23. Improving CMO Success Make the mission and responsibilities clear Fit the role to the marketing culture andstructure Ensure the CMO is compatible with the CEO Remember that show people don‟t succeed Match the personality with the CMO type Make line managers marketing heroes Infiltrate the line organization Require right-brain and left-brain skills23Prof. Raghavendran V, Dept ofMBA, AIET, Mijar
  24. 24. Core Marketing Concepts Needs, wants, anddemands Targetmarkets, positioning, segmentation Offerings andbrands Value andsatisfaction Marketing channels Supply chain Competition Marketingenvironment24Prof. Raghavendran V, Dept ofMBA, AIET, Mijar
  25. 25. New Consumer Capabilities A substantial increase in buying power A greater variety of available goods andservices A great amount of information aboutpractically anything Greater ease in interacting and placing andreceiving orders An ability to compare notes on products andservices An amplified voice to influence public opinion25Prof. Raghavendran V, Dept of MBA, AIET,Mijar
  26. 26. Company Orientations/Concepts ofMarketingProf. Raghavendran V, Dept of MBA, AIET,Mijar26 Since Industrial Revolution, Businessmanagement has undergone 6 (4) distinctconcepts of Marketing. The exchange orientations The production orientation The product orientation The sales orientation The Marketing orientation Societal Marketing orientation
  27. 27. Holistic Marketing Dimensions27Prof. Raghavendran V, Dept ofMBA, AIET, Mijar
  28. 28. RBC emphasizes arelationship marketing approachProf. Raghavendran V, Dept of MBA, AIET,Mijar28
  29. 29. The Four P‟s29Prof. Raghavendran V, Dept ofMBA, AIET, Mijar
  30. 30. Internal MarketingInternal marketing is the task ofhiring, training, and motivating able employeeswho want to serve customers well.30Prof. Raghavendran V, Dept ofMBA, AIET, Mijar
  31. 31. Performance MarketingProf. Raghavendran V, Dept ofMBA, AIET, Mijar31 Financial Accountability Social Responsibility Marketing Social Initiatives Corporate social marketing Cause marketing Cause-related marketing Corporate philanthropy Corporate community involvement Socially responsible business practices
  32. 32. Marketing Management Tasks Develop market strategies and plans Capture marketing insights Connect with customers Build strong brands Shape market offerings Deliver value Communicate value Create long-term growth32Prof. Raghavendran V, Dept ofMBA, AIET, Mijar
  33. 33. Prof. Raghavendran V, Dept of MBA, AIET,MijarAnalyzing the Environment :Needsand TrendsFadTrendMegatrend
  34. 34. Prof. Raghavendran V, Deptof MBA, AIET, MijarTrends Shaping theBusiness Landscape Profound shifts incenters of economicactivity Increases in public-sector activity Change in consumerlandscape Technologicalconnectivity Scarcity of well-trainedtalent Increase in demand fornatural resources Emergence of newglobal industrystructures Ubiquitous access toinformation Management shifts fromart to science Increase in scrutiny ofbig business practices34
  35. 35. Prof. Raghavendran V, Deptof MBA, AIET, MijarMarketing Micro EnvironmentalForcesProducersManufacturersSuppliers/MiddlemenCustomersCompetitors35Public
  36. 36. Prof. Raghavendran V, Deptof MBA, AIET, MijarMarketing Macro EnvironmentalForcesDemographicEconomicPolitical-LegalSocio-CulturalTechnologicalNatural36
  37. 37. Prof. Raghavendran V, Deptof MBA, AIET, MijarPopulation and Demographics Population growth Population age mix Ethnic markets Educational groups Household patterns Geographical shifts37
  38. 38. Prof. Raghavendran V, Deptof MBA, AIET, MijarMobilink-Disney D 100Mobile Phone38
  39. 39. Prof. Raghavendran V, Deptof MBA, AIET, MijarPopulation Age GroupsPreschoolSchool-ageTeens25-4040-6565+39
  40. 40. Prof. Raghavendran V, Dept of MBA, AIET,MijarHousehold Patterns
  41. 41. Prof. Raghavendran V, Dept ofMBA, AIET, MijarEconomic Environment Income Distribution Savings, Debt, andCredit Levi’s has responded tochanges in incomedistribution by offeringan upscale line and amass market line
  42. 42. Prof. Raghavendran V, Deptof MBA, AIET, MijarSocial-Cultural EnvironmentViews of themselvesViews of othersViews of natureViews of organizationsViews of societyViews of the universe42
  43. 43. Prof. Raghavendran V, Deptof MBA, AIET, MijarIslamic Banking: Reflecting Religiousand Cultural Sensitivities• Consistent with principles of Islamic Laws(Shariah)• Prohibits investing in business that are consideredunlawful• Growth is due to disenchantment with value-neutral capitalist and socialist financial systems• Popular in Pakistan and Bangladesh,• National and international banks want to startIslamic banking in India43
  44. 44. Prof. Raghavendran V, Deptof MBA, AIET, MijarCartoon Network‟s New GenerationSurvey Achieving good grades at school – all respondents Looking good – 90% of respondents Being religious/traditional – 84% of respondents Having boyfriend/girlfriend – 40% of respondents Career aspirations – One-third wanted to bedoctor, 21% of wanted to be engineer44
  45. 45. Prof. Raghavendran V, Deptof MBA, AIET, MijarNatural EnvironmentShortage ofraw materialsIncreasedenergy costsAnti-pollutionpressuresGovernmentalprotections45
  46. 46. Prof. Raghavendran V, Deptof MBA, AIET, MijarToyota Experienced Successwith Green Cars46
  47. 47. Prof. Raghavendran V, Deptof MBA, AIET, MijarConsumerEnvironmental SegmentsTrue Blue Greens (30%)Greenback Greens (10%)Sprouts (26%)Apathetics (18%)Grousers (15%)47
  48. 48. Prof. Raghavendran V, Deptof MBA, AIET, MijarKeys to AvoidingGreen Marketing Myopia Consumer Value Positioning Calibration of Consumer Knowledge Credibility of Product Claims48
  49. 49. Prof. Raghavendran V, Deptof MBA, AIET, MijarTechnological EnvironmentPace of changeOpportunitiesfor innovationVarying R&DbudgetsIncreased regulationof change49
  50. 50. Prof. Raghavendran V, Deptof MBA, AIET, MijarPolitical-Legal EnvironmentIncrease inbusiness legislationGrowth of specialinterest groups50
  51. 51. Marketing Debate:Take a Position!Does marketing shape consumer needs?orDoes marketing merely reflect the needs and wantsof consumers?51Prof. Raghavendran V, Dept of MBA, AIET,Mijar
  52. 52. Assignment Time:1. Why is marketing important?2. What is the scope of marketing?3. What are some fundamental marketingconcepts?4. How has marketing management changed?5. What are the tasks necessary for successfulmarketing management?6. Explain in detail of company orientations.7. Explain in detail of the all forces contributing tomacro environment.8. What are some important micro environmentdevelopments9. Explain the challenges faced at globalizedmarketing scenario?52Prof. Raghavendran V, Dept ofMBA, AIET, Mijar

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