Professional Documents
Culture Documents
Class Prez 1-2
Class Prez 1-2
Management
Peter Drucker, David Packard
on Marketing /Customer Focus
• "Marketing encompasses the entire business. It is the
whole business, seen from the point of view of its final
result, that is, from the customers’ point of view…. There
Why Marketing? is only one valid definition of business purpose: to create a
customer…. It is customer who determines what a
business is.”
• "Because the purpose of business is to create a customer,
the business enterprise has two‐‐and only two‐‐basic
functions: marketing and innovation. Marketing and
innovation produce results; all the rest are costs.
Marketing is the distinguishing, unique function of the
business." Drucker, 1954
Were these companies customer “the iconic car”
oriented ?
• 90% market share of photographic films sales in
USA in 1976
• “Kodak Moment”
• Slow to recognise changes and stay relevant to
changing times
• First digital camera in 1975
• Filed for bankruptcy in Jan 2012
• Eastman Kodak
1
Were these companies customer
oriented ?
• Born 1957; stood for style and status
• Suspended production in May 2014; Letter to BSE cited “very
low productivity, growing indiscipline, critical shortage of
funds, lack of demand for its core products and a large What is Marketing?
accumulation of liabilities”
• Sales 24000 cars a year in 1980’s to 6000 in 2000 and less
than five cars a day in 2014
• India’s oldest car
• Ambassador
• Hindustan Motors
Bricks for sale @ $1000 each
• Bricks not made of Gold but of golden memories!!
• The Indian Institute of Science is selling bricks that A Capitalist will sell a rope to his
once formed hostel blocks, for $1,000 (more than
Rs 40,000) each. hangman
• 8,000 bricks from four old hostel blocks, built in
1956, demolished this year. Lenin
• The bricks will be sold online. Pictures of these
bricks placed in compact glass cases displayed at
the IISc Global Conference
Marketing as Concept
Why do customers buy? • Customers buy product/ brands that have
superior value
Why do they buy one brand over • Value = Benefits/ Cost
another?
2
What’s the Value!
Marketing is an organizational function and a set
of processes for creating, communicating and
delivering value to customers and for customer
relationships in ways that benefit the organization
and its stakeholders
American Marketing Association
Texas BullShit Jamban Cafe
Case
HAG
3
The Quadruple Bypass Burger with 9,982 calories (41.76 MJ)
has been identified as one of the "world's worst junk
foods".
4
5
What is Parachute?
Most Shown Restaurant on TV
Marketing as Function
• Exploring Value: Identifying and Exploiting
Opportunities
•Marketing Information System
•Buyer behavior
• Choosing Value: Develop Strategies
•STP (Segmentation, Targeting, Positioning)
• Delivering Value: Implementing
• Implement strategies using Marketing Mix(4Ps)
• Shaping Value: Offer Mix – Product & Price
• Communicating and Supplying Value: Channel Mix – Place
and Promotion
6
Marketing Functions and
Marketing as Process
Organization
VP-Marketing
Communication
Goods/services
Industry Market
(a collection (a collection
of sellers) Money of Buyers)
Advertising & Marketing Marketing
New Products
Sales Promotion Sales Manager Administration Research
Manager
Manager Manager Manager
Information
Brand Management System Brand Management System
• The type of organization structure in which brands or
products are assigned to managers who are responsible for
their performance Advertising
Agency
• Does not Replace functional organization as seen in earlier Manufacturing &
Media
slide but acts as another layer of mangement Logistics
• Conceptualized & Started at P&G by Neil McElroy in 1931
• Most popular among multiproduct companies in consumer R&D
Promotion
markets Brand Services
Manager
• A typical hierarchy in the system has Product Manager
supported by category mangers who in turn are supported by
Brand Managers/ Specific Product Executives Legal Packaging
• Brand Managers are central coordinators of all marketing
activities for their brand and are responsible for developing Market
Sales force
and implementing the marketing plan & programs Research
Brand Management & Marketing Indicative Organization of HUL
• Soaps and Detergents (100)
• “The product management concept,
– Personal Wash
• Lux, Lifebuoy, Dove
– Fabric Wash
• Surf Excel, Rin, Wheel
executed well, is the marketing concept in – Household Care
• Vim, Domex
• Personal Products (65)
its finest form” (Collier, 1964) – Skin Applications
• Fair & Lovely, Pears, Vaseline, Ponds
• “The brand manger idea is the very
– Hair Care
• Clinic Plus, Sunsilk, Nihar
– Oral Care
• Pepsodent, CloseUp
backbone of revolutionized marketing” – Deodorants & Talcum Powder
• Axe, Rexona
– Specialty
(Keith, 1960 in The Marketing Revolution) •
• Lakmé
Beverages (28)
– Tea
• Lipton, Brooke Bond
– Coffee
• Bru, Deluxe Green Label
• Foods (15)
– Culinary Products
• Kissan, Knorr
– Staples
• Annapurna
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Understanding Push and Pull of
Plan
Marketing
Planning Corporate Business Marketing
Product/ Brand Management Sales/ channel Management Framework Plan Plan Plan
• Demand generation • Ensuring Supply Situation Macro Macro Micro
• Focus on Consumer • Focus on Customers Analysis Environment, Environment, Environment,
PEST PEST 4Cs
• Concerned with Secondary Sales • Concerned with Primary Sales
• Building Brand – Consumer • Building Firm‐Channel Goals Market Profit, Innovation, Market Share,
Relations in long‐term Relationships in long‐term Capitalization, Reputation Sales Revenue
Growth
• National/ Centralized function • Regional/ Localized function
• Structured around Products/ • Structured around Territories/ Strategy/ Business Portfolio Product/ Market Target Segment,
Brands Channels Resource Planning - Decisions Positioning
Allocation Integration, Product Portfolio (Value
• Primary drivers in Consumers • Primary drivers in Business
Decisions Diversification Planning Proposition)
Markets Markets
Means/ Tools Business Mix Product Mix, Marketing Mix
Business
Function mix