The term marketing is very wide. It does not mean only to sale and purchase of goods and services. It means entire process of satisfying the needs of consumers. It start with discovery of needs and wants of the consumer and it continues till these needs and wants are satisfied.
According to Americanmarketing association.Marketing is a performance of business activities that direct the flow of goods and services from the producer to consumer or user.
Old marketing characteristics Product oriented concept of marketing. It stresses upon production. Marketing start with after goods have been produced and it ends after the goods have been sold. The ultimate object of marketing is to maximize the profits by maximizing the sale.
New and modern concept ofmarketingCostumer oriented concept of marketing.According to this concept consumer is thekey of market and his needs and wants arethe goals of the business activities.
Continued….This concept assumes that the object ofearning the profit can be achieved onlywhen the needs of society are satisfied.Acc to this concept marketing is thecreation and delivery of standard of livingto the society.
Keys for becoming a brand…. Set your specialty… Set standards which must be globally accepted and followed. Make market to move with you.
Building Brand Equity…..MARKETING IS THE ART OF BRAND BUILDING*IF YOU ARE NOT A BRAND,YOU ARE A COMMODITY.*THEN PRICE IS EVERYTHINGAND THE LOW-COST PRODUCERIS THE ONLY WINNER!
1. How Important is Branding? The NUMMI plant in California produces two nearly identical models called the Toyota Corolla and the Chevrolet Prizm. Toyota sold 230,000 Corollas compared to sales of 52,000 Prizms. And Toyota’s net price is $650 higher!
A Brand Must be More Than a Name…… A brand must trigger words or associations (features and benefits). A brand should depict a process (McDonald’s, Amazon). A great brand triggers emotions (Harley-Davidson). A great brand represents a promise of value (Sony). The ultimate brand builders are your employees and operations, i.e., your performance, not your marketing communications.
How Do You Promote a Brand?“How do I justify spending millions oncreating an image. That’s millions mycustomers have to spend when they buyfrom us.” Tom Parker, CEO of Clark’sshoes.Brands are built by performance, notadvertising.
What Makes a Strong Brand? Strong brand = Product Benefits x Distinct Identity x Emotional Values Peter Doyle, Marketing Management & Strategy, 1997
Strong Brands Supply Use Value as Wellas Purchase Value Nestle: Sells baby food Provides free dietitian phone line Nestops along the highway Home Depot: Sells home improvement products, such as paint, electrical supplies, plumbing Offers free kitchen remodeling design service Offers free workshops on how to paint, fix faucets, etc. Volvo Teaches safe driving, Supports lower insurance rates for safe drivers
What Are the Most Frequent Causes ofBrand Failure? Failure to live up to the brand promise. Failure to adequately support the brand. Failure to adequately control the brand. Failure to properly balance consistency and change with the brand. Failure to do brand equity measurement and management.
Marketing Work-Flow Process Tools Project management Product management New product development Campaign management
Challenges….Product differentiation is harder to achieve.New products unfortunately fail more times than theysucceed.Price cutting doesn’t work because competitors willmatch.Cost cutting has eliminated much of the fat but is nowrisking cutting the muscles.