Welcome to the

world of Marketing

11/9/2012 Ms. Kashika

AKSIME
 Products &
services
Marketing
Markets
Environment

Needs,
Competition Wants &
Demands
CORE
MARKETING
CONCEPTS
Target
Supply Markets,
Chain positioning &
Segmentation

Marketing Offerings &

Channels Brands
Value &
Satisfaction
Goods

Services
Events & Experiences

Persons
Places & Properties

Organizations
Information
Ideas
11/9/2012 Ms. Kashika
AKSIME
11/9/2012 Ms. Kashika
AKSIME
 Market
Place

Market
Space

Meta
Markets
Consumer Markets Global Markets

Business Markets Nonprofit/ Government Markets

 Marketers - Attention, a
Prospects
purchase, a vote, a donation


Needs - state of felt

deprivation
including physical,
social, and
individual needs.
 Stated needs
Real needs
Unstated needs
Delight needs
Secret needs
Wants Needs
become wants
when they are
directed to
specific objects
that might satisfy
the need.
Wants Buying Power

Demand
 States of Demand

11/9/2012
 STATE OF DEMAND AND
MARKETING TASK
State of demand Marketing task
Negative Demand Conversional Mktg.
No Demand Stimulational Mktg.
Latent Demand Developmental Mktg.
Falling Demand Remarketing
Irregular Demand Synchro-marketing
Full Demand Maintenance Mktg.
Overfull Demand De-marketing
Un-wholesome Counter-marketing
Demand
 Target markets & segmentation
Differences in needs, behavior,
demographics or psychographics
are used to identify segments.
The segment served by the firm is
called the target market.
The market offering is customized
to the needs of the target market.
 Positioning is:
Differentiation from competitors
Value Proposition
Product dimensions

Identify and profile distinct groups of

buyers who might prefer or require varying
products and services mixes by examining
Demographic information
Psychographic information
Behavioral information
 Value proposition: a set of benefits they offer to
customers to satisfy their needs
Brand: is an offering from a known source
 CUSTOMER VALUE Based on
Customer Value Triad A
combination of Q, S, P.

Value = Benefits
Costs

CUSTOMER SATISFACTION A
products perceived performance in
delivering value relative to a buyers
expectation.
 Communication channels
Distribution channels
Service channels
 Task environment
Broad environment:
Demographic
Environment
Economic
Physical
Technological
Political-Legal
Social-cultural
 WHAT IS MARKETING ???
Personal Selling?
Advertising?
Making products available in stores?
Maintaining inventories?

ALL OF THE ABOVE PLUS MUCH MORE

 WHAT IS MARKETING ???

A set of activities
including
A PHILOSOPHY
PRODUCTS
AN ATTITUDE
PRICING
A PERSPECTIVE
PROMOTION
A MANAGEMENT
ORIENTATION
DISTRIBUTION
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
 2 or more people with
wants to be satisfied

Voluntary exchange
TRADE
BETWEEN
TWO PARTIES
THAT
INVOLVES Valuable Contribution

Communication
 The Marketing Mix

Product A good or service

Price the money value that customer has
to pay
Place - Distribution channel & logistics
Promotion Promotion Mix
Production Concept

Product concept

Selling Concept

Marketing Concept

Holistic Marketing
 When Henry Ford first
created the Model T,
he was the only one
mass producing cars.
He didnt have to think
about The Marketing
Concept. But, as
more and more
producers started
making cars, they had
to think about what
customers need and
want in order to stay
in business.
Build a better mousetrap and the world will beat a path to
your door." - Ralph Waldo Emerson.

What Emerson Forgot:

Market Awareness
Actual Needs
Perceived Needs
Definition of Better
The Effort of Beating the Path
 Myth 1: An ever-expanding and more
affluent population will ensure our growth.
Myth 2: There is no competitive substitute
for our industrys major product.
Myth 3: We can protect ourselves through
mass production.
Myth 4: Technical research and
development will ensure our growth.
 Product Focus Definition Need Focus Definition

Railways, Bus Services, Truck service ?

Movies, TV programmes, Audio/Visual CDs Etc ?

Beverages of various kinds, fruit juices/Fruit Drinks etc ?

Photostat machines, Fax Machines etc ?

Fairness creams, Cold creams etc ?

 Product Focus Definition Need Focus Definition

Railways, Bus Services, Truck service Transportation

Movies, TV programmes, Audio/Visual Entertainment

CDs Etc

Beverages of various kinds, fruit Nutrition

juices/Fruit Drinks etc

Photostat machines, Fax Machines etc Office productivity

Fairness creams, Cold creams etc Beauty

 Buzzword is aggressively push the product to customers
High power personal selling
Heavy advertisement
Large scale sales promotion
Heavy Price discounts

The purpose of marketing is to sell more stuff to more people

more often for more money in order to make more profit.
 Sense &
Make & Sell
Respond

Selling focus on the needs of the seller; marketing

on the needs of the buyer. Selling is preoccupied
with the sellers need to convert his product into
cash; marketing with the idea of satisfying the
needs of the customer by means of the product &
the whole cluster of things associated with
creating, delivering & finally consuming it.
 Meet
customer
needs better
than the
competition
Every
Communicate employee is a
customer marketer
needs to other convey
departments consistent
message

Marketing
Concept

Customer Customer
satisfaction is needs are
companys central to the
ultimate goal customer

It should
champion the
cause of
customer
 Selling
Selling starts with the seller, & is
preoccupied all the time with the seller &
the sellers existing products.
Seller is the Centre of the business
universe
Emphasis on saleable surplus available
with the corporation
Concerns itself with just the tricks &
techniques of getting the customers to
part with their cash for the products
available with the salesman.
Views business as a goods producing
process
Marketing
Marketing starts with the buyers &
focuses constantly on their needs
Buyer is the centre of the business
universe, activities follow the buyer & his
needs
Emphasis is on identification of a
customer need/market opportunity . The
aim is to convert customer needs into
products.
Concerns itself with the fulfilling the
needs of the customers.
Views business as a customer satisfying
process.
 Selling
Overemphasizes the exchange aspect,
without caring for the value satisfactions
inherent in the exchange
Sellers requirements & preferences
dominates the formulation of the
marketing mix
The firm makes the product & then
figures out how to sell it.
Emphasis is on staying with the existing
technology & reducing costs
Distribution functions are perceived as
mere extensions of the production
functions
Sellers motives dominate marketing
communication.
Marketing
Concerns itself primarily & truly with the
value satisfaction that should flow to the
customers from the exchange
Buyer determines the shape the
marketing mix should take.
The product is determined by the buyer.
The product is the consequence of the
marketing effort. The marketing effort
leads to products that the customers
actually want to buy in their own interest.
Emphasis is on innovation in every
sphere on providing better value to the
customer by adopting better technology.
Distribution functions are seen as vital
services to be provided to the customer,
keeping customers convenience in focus
Marketing communications is looked
upon as the tool for communicating the
benefits provided by the product
Cost determines the price
Emphasis is on somehow selling
there is no coordination among the
different functions of the total
marketing task
Consumer determines price: price
determines costs
Emphasis is on integrated marketing :
covering all the 4Ps.
 BASIC
PHILOSOPHY
PRODUCTION
CONCEPT
PRODUCT Consumers favor products
that offer the most quality,
CONCEPT performance and
innovative features
SELLING Consumers will not buy
enough products unless it
CONCEPT undertakes a large scale
selling and promotion
effort
MARKETING Needs and wants of the
target markets are to be
CONCEPT determined and desired
satisfaction is to be
delivered more effectively
and efficiently than
competitors
ORGANIZATIONS EXAMPLE
PHILOSOPHY
Management focuses on Ford
improving production and
distribution efficiency
Management focuses on Vacuum lid
making continuous product mousetrap
improvements.Consumers
favor
products that are
available and highly
affordable
Management aims at selling Music cds
what they make rather than Encyclopedias
making what the market
wants
Management focuses on Almost all successful
customer satisfaction companies
 Holistic marketing recognizes that everything matters in
marketing, & that a broad, integrated perspective is often
necessary.

It is based on Development, design & implementation of

marketing programs, processes & activities that recognizes
their breadth & interdependencies.
 Relationship Marketing
Customers
Employees
Marketing partners (Channels, suppliers,
Dealers, Distributors, Agencies)
Members of Financial Community (
Shareholders, Investors, Analysts)

11/9/2012 Ms. Kashika

AKSIME
2 key themes of marketing
1. Many different marketing activities communicate & deliver
value.
2. When coordinated, marketing activities maximize their
joint effects.

Breakdown of Marketing efforts with respect to Customer:

Solution How can I solve my problem?
Information Where can I learn more about it?
Value What is my total sacrifice to get this solution?
Access Where can I find it?
 Internal marketing is the task of hiring, training, and
motivating able employees who want to serve customers well.

2 levels:
1. Various marketing functions sales force, advertising,
customer service, product management, marketing
research all must work in tandem.
2. Other departments must also embrace marketing, they
must also think customer
 Financial Accountability
Social responsibility marketing
Social Initiatives
Corporate social marketing - Lead India
Cause marketing -
Cause-related marketing
Corporate philanthropy
Corporate community involvement
Socially responsible business practices
 What happens when a company reaches a mid-life crisis?
People often hear about the problems of a mid-life crisis declining health, too much
stress, changing physical appearance, or withdrawal from social relationships. As you
probably know, an entire industry has emerged to help people through their mid-life
crises. But what about companies? Do they experience mid-life crises also? The answer
is yes, and researchers have begun to analyze the mid-life doldrums that many of
Americas top companies are experiencing. Of particular interest is how mid-life
companies deal with disappointing growth.
Wal-Mart experienced exceptional growth during the last three decades. Over the past
two years, however, Wal-Marts performance has started to show signs of stress and
fatigue. Growth averaging only 2% does not send out positive signals to the people who
watch this retailing giant. This small growth percentage is especially troubling since major
competitors, such as Costco, Target, Kroger, CVS, and Best Buy, have enjoyed
increases averaging five times Wal-Marts meagre rate.
The economic and competitive environment Wal-Mart faces has become increasingly
difficult. Also, mismanagement, increasing inventories, loss of market share, and
distribution difficulties have begun to plague the industrys cost and price leader. New
turnaround strategies that management will try include increased advertising, a more
holistic approach to marketing strategies, a specific focus on upscale and affluent
consumers, store refurbishment and redesign, a renewed commitment to everyday low
pricing and cost control, and an aggressive global expansion strategy. A mid-life crisis
can be a difficult challenge. It will be interesting to see how Wal-Mart ages and how the
company handles the difficulties that come with its increased years.
 Adapted from Wal-Marts Midlife Crisis, by
Anthony Bianco, Business Week, April 30,
2007, pp. 46-56.

How is a person's mid-life crisis similar to a

company's?
Why should Wal-Mart be worried about a mid-
life crisis?
How might Wal-Mart use holistic marketing to
address its mid-life crisis?
Information technology

Globalization
Deregulation

Privatization

Competition

Convergence
Consumer resistance

Retail transformation
 A substantial increase in buying power
A greater variety of available goods and services
A great amount of information about practically
anything
Greater ease in interacting and placing and
receiving orders
An ability to compare notes on products and
services
An amplified voice to influence public opinion
 Internet
Research
Speed of internal information
Speed of external information buzz
Better target marketing
Mobile marketing
Differentiated goods
Improved purchasing, recruiting, training, and
communications
 Marketing Management Tasks
Developing Marketing Strategies & Plans
Capturing marketing Insights
Connecting with Customers
Building Strong Brands
Shaping the market offering
Delivering Value
Communicating Value
Creating Long term Growth

11/9/2012 Ms. Kashika

AKSIME
Building Customer Relationships
Customer Relationship Management (CRM)

The overall process of building and

maintaining profitable customer relationships
by delivering superior customer value and
satisfaction

Customer- perceived
Customer satisfaction
value
The customers evaluation The extent to which a
of the difference between products perceived
all the benefits & all the performance matches a
costs of a marketing offer buyers expectations
relative to those of
competing offers.
 Building Customer Relationships
Customer Relationship Levels and Tools

Basic Full
Relationships Partnerships
Building Customer Relationships
The Changing Nature of Customer Relationships

Relating with more carefully selected

customers - uses selective relationship
management to target fewer, more profitable
customers
Relating more deeply and interactively - by
incorporating more interactive two way
relationships through blogs, Websites, online
communities and social networks
 Todays marketers are incorporating interactive
approaches that help build targeted, two-way customer
relationships.
Increasingly, marketers are using new communications
approaches in building closer customer relationships.
Consumers have more information about brands than
ever before.
Companies can no longer rely on marketing by intrusion.
Companies must practice marketing by attraction
creating market offerings and messages that involve
consumers rather than interrupt them.

Consumer-generated marketing - has

become a significant marketing force.
 Building Customer Relationships

Partner relationship management involves working

closely with partners in other company departments
and outside the company to jointly bring greater value
to customers
 Partners inside the company is every function area interacting
with customers
Electronically
Cross-functional teams
Partners outside the company is how marketers connect with
their suppliers, channel partners, and competitors by
developing partnerships
Partners Inside the Company
Every employee must be customer focused.
David Packard, late co-founder of Hewlett-Packard, said,
Marketing is far too important to be left only to the marketing
department.
Today, firms are linking all departments in the cause of
creating customer value.
Rather than assigning only sales and marketing people to
customers, they are forming cross-functional customer teams.
 Supply chain is a channel that stretches from raw
materials to components to final products to final buyers
Supply management
Strategic partners
Strategic alliances
Marketing channels consist of distributors, retailers, and
others who connect the company to its buyers.
The supply chain describes a longer channel, stretching
from raw materials to components to final products that
are carried to final buyers.
Through supply chain management, many companies
today are strengthening their connections with partners
all along the supply chain.
Capturing Value from Customers
Creating Customer Loyalty and Retention

Customer lifetime value is the value of the entire

stream of purchases that the customer would
make over a lifetime of patronage.
The aim of customer relationship management is to
create not just customer satisfaction, but customer
delight.
This means that companies must aim high in building
customer relationships.
Customer delight creates an emotional relationship
with a product or service, not just a rational
preference.
Companies are realizing that losing a customer means
losing more than a single sale. It means losing
customer lifetime value.
 Your Green Card is your passport to a whole
new world of exclusive benefits and privileges.
Instant discount* for every time you shop at
Pantaloons
Exclusive shopping days to get hold of latest
merchandise
Regular updates on collections and promos via
catalogues, sms and email
Special invites to the most happening events
Extended exchange periods and complimentary
drops for alterations
Exclusive billing counters and much more
 Capturing Value from Customers
Growing Share of Customer
Share of customer is the portion of the customers purchasing
that a company gets in its product categories

Customer equity is the total combined customer lifetime values

of all of the companys customers

Customer equity is the total combined customer lifetime

values of all of the companys current and potential
customers.
Clearly, the more loyal the firms profitable customers, the
higher the firms customer equity.
Customer equity may be a better measure of a firms
performance than current sales or market share.
Capturing Value from Customers
Building Customer Equity

Building the right relationships with the

right customers involves treating
customers as assets that need to be
managed and maximized

Different types of customers require

different relationship management
strategies
Build the right relationship with the
right customers
 Customer Relationship Groups
are potentially profitable but are both profitable and loyal.
not loyal. The company should There is a strong fit between
use promotional blitzes to their needs and the companys
attract them, create satisfying offerings. The firm wants to
and profitable transactions make continuous relationship
with them, and then cease investments to delight these
investing in them until the next customers and retain and grow
time around. them.

True
High Profitability

Butterflies
friends

Strangers Barnacles
Low Profitability

show low potential are highly loyal but not very

profitability and little projected profitable. There is a limited fit
loyalty. The relationship between their needs and the
management strategy for these companys offerings.
customers is simple: Dont
invest anything in them.

Short Term Customer Long Term Customer

 Adapting Marketing to new
Liberalized Economy

E-business
Digitalization Customization setting up a
website

Ethics &
Not for profit
Globalization Social
Marketing
Responsibility
 Mass Customization
Tailoring products & Marketing Programs to the needs &
preferences of individual customers
Also labeled one to one marketing, customized
marketing, markets of one marketing
http://www.mymms.com/

Almost every company, large or small, is touched in

some way by global competition.

McDonalds now serves 52 million customers daily in

31,600 restaurants worldwidesome 65 percent of its
revenues come from outside the United States.
 Click-only companies operate only on the Internet.
They include a wide array of firms, from e-tailers such
as Amazon to search engines and portals (Google),
transaction sites (eBay), and content sites
(Encyclopedia Britannica Online).

Click-and-mortar companies operate both as existing

brick-and-mortar retailers and online.