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What is Marketing…??
Selling? Advertising? Promotions? Making products available in stores? Maintaining inventories?
All of the above, plus much more!
Marketing = ?
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
American Marketing Association
and growing customers through creating. delivering. keeping.Marketing = ? Marketing management is the art and science of choosing target markets and getting. and communicating superior customer value. 4 4 .
Simple Marketing System Communication (a collection of sellers) Industry Goods/services Money (a collection of Buyers) Market Information 5 5 .
Marketing is all about creating a pull. sales is all about push.Marketing = ? Marketing is the sum of all activities that take you to a sales outlet. After that sales takes over. Marketing is all about managing the four P’s – product price place promotion 6 6 .
The 4 Ps & 4Cs Marketing Mix Product Customer Solution Convenience Place Price Customer Cost Promotion Communication 7 7 .
Sales & Marketing ? Marketing ? Sales trying to get the customer to want what the company produces Marketing trying to get the company produce what the customer wants 8 8 .Sales & Difference Between .Difference Between .
Scope – What do we market Goods Services Events Experiences Personalities Place Organizations Properties Information Ideas and concepts 9 9 .
Transactions & Relationships Markets. Value & Satisfaction Exchange. 10 10 . Desires / demand Products.Core Concepts of Marketing Based on : Needs. Wants. Utility. Marketing & Marketers.
Value & Satisfaction Markets Marketing & Marketers Xchange. Transaction Relationships 11 11 . wants demands Products Utility.Core Concepts of Marketing Needs.
French fry's ( translation of a need as per our experience ) Demand – Burger ( translation of a want as per our willingness and ability to buy ) Desire – Have a Burger in a five star hotel 12 12 .Core Concepts of Marketing Need – food ( is a must ) Want – Pizza. Burger.
In order to understand Marketing let us begin with the Marketing Triangle Customers Company Competition 13 13 .
Anyone who is in the market looking at a product / service for attention. . . .Who is a Customer ?? CUSTOMER IS . . acquisition. use or consumption that satisfies a want or a need 14 14 .
Customer – CUSTOMER has needs. wants. demands and desires Understanding these needs is starting point of the entire marketing These needs. wants …… arise within a framework or an ecosystem Understanding both the needs and the ecosystem is the starting point of a long term relationship 15 15 .
Performance > Expectations => Satisfaction Performance < Expectations => Dissatisfaction 16 16 .the value or benefits the customers gain from using the product versus the cost of obtaining the product.Based on a comparison of performance and expectations.How Do Consumers Choose Among Products & Services? Value . Satisfaction .
Customers .Problem Solution As a priority . we must bring to our customers “WHAT THEY NEED” We must be in a position to UNDERSTAND their problems Or in a new situation to give them a chance to AVOID the problems 17 17 .
Customer looks for Value Value Benefit Cost = Benefit / Cost = Functional Benefit + Emotional Benefit = Monetary Cost + Time Cost + Energy Cost + Psychic Cost 18 18 .
Analysis Of Competition Who are your competitors? What are their strengths and weaknesses? What have been their strategies? How are they likely to respond to your Marketing plan? 19 19 .
Strategic Marketing Strategic marketing management is concerned with how we will create value for the customer Asks two main questions What is the organization’s main activity at a particular time? – Customer Value What are its primary goals and how will these be achieved? – how will this value be delivered 20 20 .
Also called Strategic Management Process All organizations have this Can be Formal or Informal 21 21 .Strategic Planning Strategic Planning is the managerial process of creating and maintaining a fit between the organization’s objectives and resources and the evolving market opportunities.
and Control Process 22 22 . Implementation.The Strategic-Planning.
Business Strategic-Planning Process External environment (Opportunity & Threat analysis) Business Mission Goal Formulation Internal Environment (Strength/ Weakness analysis) 23 23 .
Strategy Formulation Environmental Analysis Competitor Customer Supplier Regulatory Social/ Political Internal Analysis Technology Know-How Manufacturing Know-How Marketing Know-How Distribution Know-How Logistics Opportunities & Threats Strength & Weaknesses Identity Core Competencies Identify opportunity Fit internal Competencies with external opportunities Firm Strategies 24 24 .
The Marketing Plan A written document that acts as a guidebook of marketing activities for the marketing manager 25 25 .
Evaluation and Control 26 26 .CONTENTS of MARKETING PLAN Business Mission Statement Objectives Situation Analysis (SWOT) Marketing Strategy Target Market Strategy Marketing Mix Positioning Product Promotion Price Place – Distribution People Process Implementation.
Control 27 27 .The Marketing Process Business Mission Stateme nt Objectiv es Situation or SWOT Analysis Marketing Strategy Target Market Strategy Marketing Mix Product Promotion Place/Distribution Price Implementation Evaluation.
Marketing Environment .
Why a product like radio declined and now once again emerging as an entertainment medium ? 29 29 .
What Were the Drivers of This Change ? Technology ? Government policy ? Other media substitutes ? 30 30 .
Nirma Bajaj vs.Why Market Leaders Suffered ? HMT vs. Titan HLL vs. Honda Dot. 31 31 .com boom.New and more efficient companies are able to upstage leaders in a much shorter period. then bust and now resurgence Market leadership today cannot be taken for granted.
Factors Influencing Company’s Marketing Strategy 32 32 .
External Marketing Environment External Marketing Environment External Environment is not controllable Demographics Demographics Economic Economic Conditions Conditions Social Social Change Change Ever-Changing Marketplace Product Product Distribution Distribution Promotion Promotion Price Price Physical / Natural Competition Competition Target Market Political & Political & Legal Factors Legal Factors Environmental Scanning Technology Technology 33 33 .
The macro-environment is the assessment of the external forces that act upon the firm and its customers. that create threats & opportunities 34 34 .
P r o d u c tt Produc 35 35 .
. acquisition. use or consumption that satisfies a want or a need 36 36 . . . . Anything that is offered to the market for attention.Product is .
Types of Products PRODUCTS Consumer Products Services Industrial Products 37 37 .
Product Items. organization sells. Product Item Product Item Product Line Product Line Product Mix Product Mix All products that an All products that an organization sells. Lines. product items. A group of closely-related A group of closely-related product items. 38 38 . and Mixes A specific version of a product A specific version of a product that can be designated as a that can be designated as a distinct offering among an distinct offering among an organization’s products. organization’s products.
Product Mix Width – how many product lines a company has Length – how many products are there in a product line Depth – how many variants of each product exist within a product line Consistency – how closely related the product lines are in end use 39 39 .
Dupont 40 40 .Gillette’s Product Lines & Mix Width of the product mix Blades and razors Fusion – 5 blade Mach 3 Turbo Mach 3 Sensor Trac II Atra Swivel Double-Edge Lady Gillette Super Speed Twin Injector Techmatic Depth of the product lines Toiletries Series Adorn Toni Right Guard Silkience Soft and Dri Foamy Dry Look Dry Idea Brush Plus Writing instruments Paper Mate Flair S.T.T. Dupont Lighters Cricket S.
but may involve use of physical products) An economic activity that does not result in ownership A process that creates benefits by facilitating a desired change in customers themselves. or their physical possessions.What is a Service? Defining the Essence An act or performance offered by one party to another (performances are intangible. or intangible assets 41 41 .
architecture.g. consulting) 42 42 .Service Sector Banking. bars. catering Insurance News and entertainment Transportation (freight and passenger) Health care Education Wholesaling and retailing Laundries. stock broking Lodging Restaurants.. law. dry-cleaning Repair and maintenance Professional (e.Some Industries .
Classification of Services Banking Pure Intangible Service Good Transportation Major Service with Minor Product Business Hotels Product = Service Computers Major Product with Minor Services Materials / Components Pure Tangible Product 43 43 .
Major Characteristic of Services Intangibility – Services are intangibility cannot be seen. Inseparability . heard or smelled before purchase. Non Ownership .Services are produced and consumed simultaneously.Services are rendered but there is no transfer of title 44 44 . Variability or Heterogeneity – Services are highly variable Perishability – Services cannot be stored. tasted. felt.
Physical evidence Marketers today are focused on virtually all aspects of the firm’s operations that have the potential to affect the relationship with customers. Productivity [technology ] People [employees]. Price. Place/ distribution and Promotion. now includes . 45 45 .The Marketing Mix The conventional view of the marketing mix consisted of four components (4 Ps): Product. Processes. Generally acknowledged that this is too narrow today.
The “8Ps” of Integrated Service Management vs. the Traditional “4Ps” ► ► ► ► ► ► ► ► Product elements Place. cyberspace. and time Process Productivity and quality People Promotion and education Physical evidence Price and other user outlays 46 46 .
The Give and Get of Marketing 47 47 .
Great Words on Marketing
“The purpose of a company is ‘to create a customer…The only profit center is the customer.’” “A business has two—and only two—basic functions: marketing and innovation. Marketing and innovation produce results: all the rest are costs.” “The aim of marketing is to make selling unnecessary.” “While great devices are invented in the Laboratory, great products are invented in the Marketing department.” “Marketing is too important to be left to the marketing department.”
3. 4. 5.
Drivers of Customer Satisfaction
Many aspects of the firm’s value proposition contribute to customer satisfaction:
The core product or service offered Support services and systems The technical performance of the firm Interaction with the firm and it employees The emotional connection with customers
Ability to add value and to differentiate as a firm focuses more on the top levels
Marketers and Markets
Marketers are focused on stimulating exchanges with customers who make up markets – B2C or B2B. The market is comprised of people who play a series of roles: decision makers, consumers, purchasers, and influencers. It is absolutely essential that marketers have a detailed understanding of consumers, their needs and wants. Much happens before and after the sale to affect customer satisfaction
Stages of Customer Interaction 51 51 .
under-deliver New Economy • Organize by customer segments • Focus on customer lifetime value • Look also at marketing scorecard • • • • • Focus on stakeholders Everyone does the marketing Build brands through performance Focus on customer retention Measure customer satisfaction and retention rate • Under-promise.What Changed in Marketing… Old Economy • • • • • • • • • Organize by product units Focus on profitable transactions Look primarily at financial scorecard Focus on shareholders Marketing does the marketing Build brands through advertising Focus on customer acquisition No customer satisfaction measurement Over-promise. over-deliver 52 52 .
centric? 53 53 .Are Banks truly Are Banks truly marketing-savvy and marketing-savvy and customer .centric? customer .
Mythbuster – The range of products has emerged from being competition-centric. 54 54 .Myth 1 – The larger the range of products. the more customer-centric I am.
helps people do. 55 55 . Mythbuster – Technology alone does not deliver.Myth 2 – Better technology (read CRM) leads to better customer service.
Give a customer a card and he will learn how to play with it immediately Mythbuster – Customers need To be educated too… 56 56 . .Myth 3 – Launch a product and the customer will start using instantly.
Mythbuster – Customers are not only present where competition is.Myth 4 – The only way to get a customer is from competition. 57 57 .
Myth 5 – Just advertise and .You will sell. Mythbuster – Advertising will only sell. Not retain customers. 58 58 .
marketing on the needs of the buyer. 59 59 .Myth 6 – No difference between marketing & selling Mythbuster – “Selling focuses on the needs of the seller.
Myth 7 – In the absence of relationships ‘trust’ builds financial brands Mythbuster – Trust is not a differentiator at all… it is the very minimum that the customer expects!! 60 60 .
So what will the differentiators be : So what will the differentiators be : • Technology ? • Brand ? 61 61 .
The real differentiator of customer – centricity in a commoditised world of financial products - Customer Service ! 62 62 .
Thank You email@example.com 63 63 .