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Marketing for the 21st Century

Executive MBA SCIT Fundamentals of Marketing - Topic 1

Deepa Sahasrabuddhe

What is Marketing?

What is marketing

Exchange

Marketer

Prospect

The one who seeks a response The one response if sought from
What kind of response?
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What is marketing
Marketing is an organisational function and a set of processes for identifying, creating, communicating and
delivering value to customers and

for managing customer relationships in ways that benefit the organisation and its stakeholders

What is `marketing management

Art and Science of choosing target markets and getting,


keeping and growing customers by creating, communicating and delivering superior customer value

Goods

Services

EVENTS

Experiences

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PERSONS

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PLACES

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PROPERTY

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ORGANISATIONS

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INFORMATION

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IDEAS

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Entities Marketed
Goods
Services

Events
Experiences Persons

Places
Properties

Organisations
Information Ideas
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What is a market?
A place or space to buy and sell
Marketplace - local bazaar

Marketspace - chembargains.com
Metamarket - makemytrip.com

Grouping of customers based on


Need Product

Demography
Geography
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Governm - ent & NGO

Global

Types of Markets

Consumer

Business
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Core Concepts

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Need, Want and Demand

Hungry person NEEDS nourishment / food WANTS roti / burger / pasta / milkshake
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Need, Want and Demand


Tent
Entertainment Thirst

Need to Want is many to many


Different types of needs -

Club

Membership Transportation An SUV

Physiological, psychological Needs common across human race Needs already exist Marketer enhances need & creates drive/motive and directs to `want Wants are `created `influenced

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Types of Needs
STATED NEED
GOOD WATCH MULTIPLE FEATURES; STURDY

REAL NEED
UNSTATED NEED DELIGHT NEED

ACCURATE
LIFETIME WARRANTY PERCEIVED AS FASHIONABLE / SUCCESSFUL

SECRET NEED
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Why understand needs?


OPERA TIONAL

BUSIN ESS

STRATEGIC: Expands vision & identify new opportunities BUSINESS: Tailor marketing mix

STRAT EGIC

OPERATIONAL Communication tailoring

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Core concept
Value proposition, Offering and brand

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Company Orientation towards market

Production Concept

Product Concept

Selling Concept

Marketing Concept

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The world its a-changing ......

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Society
Information Age Globalisation De-regulation Competition Convergence Disintermediation Retail

Consumer
More savvy Bargaining Power Less loyalty Resistance to marketing

Company
Customer insight Targeting Tailoring offering Communication Delivery

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What changes do we see in marketing

From marketing does marketing to everyone does

it
From brand building thru advertising to 360 degree communication

From asking customer to come to store to taking product to customer


From transaction profitability to `lifetime value

Being local to being global to being glocal

What changes do we see? From focusing on shareholders to stakeholders Outsourcing


Fewer suppliers Targeted customers / niche marketing / customisation From emphasizing tangibles to emphasising Intangible assets (brand, employees, intellectual capital)

Salesmen changing from `information resources to `value providers

Company Orientation towards market

Integrated Marketing

Internal Marketing

Holistic Marketing
Performance Marketing
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Relationship Marketing

Marketing Manager Activities/Role


UNCOVERING VALUE /Customer Insight : studying industry, environment, consumers, competition

(market research) Understanding benefits, translating into attributes, retranslating into benefits for customer
CREATING VALUE Developing strategies (STP and Branding) Shaping market offerings mktg mix

COMMUNICATING VALUE integrated mktg.


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communication (advertising, promotions, mass/personalised, media, 360 deg)

Marketing Manager Activities/Role


DELIVERING VALUE PLACE channel

members, locations et al.


RELATIONSHIPS customer connect,

channel, strategic partners


OPERATIONAL (Implementation and

Control)
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Demand Management

Now for some fun...

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What kind of product is

Goods Services Events

being marketed? Medipoint Hospital Disneyland IPL Save Pune Traffic initiative Reliance Media Mutual Fund Videocon
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Experiences
Persons Places

Properties
Organisations

Information
Ideas

In class group exercise 30 mins


Describe how each of the following may go beyond

`selling to `relationship marketing w.r.t. customer 1. A local grocer 2. An insurance agent 3. Blood bank 4. a durables manufacturer 5. non-durables manufacturer

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Internal Evaluation
Describe how each of the following may go beyond

`selling to `relationship marketing w.r.t. customer (10 marks) 1. An insurance agent 2. A restaurant
Identify what is being marketed (5 marks)
Cinthol Soap
Rowhouse in Lavasa

`Mothers Against Drunk Driving


CRIS INFAC Industry Analysis Service
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Miss Universe Beauty Pageant

Take-home Assignment
Is 'socially responsible / social responsibility

marketing' practicable? Discuss examples of this in business. (5 marks)

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Take-away from Topic 1


What is marketing
What are the approaches to marketplace

What are different products marketed


How is marketing changing What does a Marketing Manager do

What is `marketing mix

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Environment Scanning
Executive MBA SCIT Fundamentals of Marketing - Topic 2

Deepa Sahasrabuddhe

Ground to cover
What is environment scanning
What is a marketing information system

Components of a MIS
Sources of information Environment Forces to monitor

Fads, Trends and Megatrends

Business Landscape
Political unrest in Bangkok May 2010 impacts business operations for more than a month. Companies look towards Vietnam and Indonesia as alternatives

ECONOMIC TIMES REPORTS Wal-Mart seeks US govt help in getting into Indian retail market 30 May 2010, 1551 hrs IST,PTI

Business Landscape
Indian Govt. Policy does not permit FDI in multi brand retail. Wal Mart restricted to wholesale cash and carry business.

Business Landscape
4 Billion people with an income annual income less 1500 USD in PPP ... Pocket economy of availability , accessibility and affordability

YET
Business Landscape
E-books, Digital book readers and online retailers put pressure on business models of publishing industry

Who does environment scanning?


Everyone..... But more so the marketing personnel. Why?

Marketing Information Systems


People, equipment, procedures to COLLECT, COLLATE, ANALYSE, EVALUATE, DISTRIBUTE
Needed, Timely, Accurate Information To help in decision making

MIS components
What is happening
What has happened
Databases and data mining

What could happen

Internal Records Mktg Intelligence

Order to Payment Sales Information Marketing Costs


Macro Environment Micro Environment

MACROENVIRONMENT Demographic Economic Cultural Competitor Political and legal Technological Natural

MICROENVIRONMENT Suppliers Marketing Intermediaries Customers Employees

Sources of information
Secondary sources

Primary sources

Published material like newspapers/ magazines/trade journals / internet Industry associations Financial Analysts Government publications/policies/ official websites Aggregating services

Employees Consultants Customers Suppliers Dealers / distributors Intermediaries / mystery shoppers Competitors

Fads, Trends and Megatrends


Fads : Unpredictable, short lived, no impact on

macro-factors
Trends: Sequence/direction of some momentum and

durability. Observable across several mkt areas. (health/envmt consciousness; back to roots; multi tasking; self gratification; role blurring)
Mega trends: slow to form but BIG in impact (large

sections of society affected, impacts macro factors), long lasting. Driven by multiple trends

Some mega - trends


Globalisation Digital world More for less

!!!!!!
Less for less Lesser Choice Better technology and `fulfillent focus leading to less mobility

Personal touch Divergent demographics


Increasing mobility Big Business Accountability Terror is here to stay

Demographic
Age composition 70% less than 35 yrs; 7% > 60 yrs Gender composition Occupation Education levels Geographic distribution Urban / Rural Coast / inland

ECONOMIC
Current and anticipated stage of economic cycle
Inflation

Interest rates & credit availability Income distribution pattern


India: SEC classification

CULTURAL
Culture manifests in language, values and attitudes, lifestyles Some trends: Changing gender roles Concern for natural environment Premium on time
Physical fitness and health Return to religion and roots

CULTURAL
Effect of culture on work place values: Geert Hofstede Dimensions India Avg High
Power Distance Individualism Uncertainty Avoidance LTO Masculinity 77 48 40 65 56 56.5 104 (Malaysia) 42 91 (USA) 65 112 (Greece) 48 118 (China) 51 79 (Austria)

NATURAL TECHNOLOGY
POLITICAL AND LEGAL

Take-away from Topic 2


What environmental forces impact business

performance What to look for while scanning environment. Fads, Trends and Mega trends What are sources of information for environment scanning What is the role of MIS in the business

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