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Marketing Management

The scope of Marketing


What is Marketing? 1. meeting needs profitably! 2. Marketing is an organizational function and a set of processes for creating, communicating and delivering value to customers and managing customer relationships in ways that benefits organization and its stake holders. 3. Marketing is a societal process by which individuals and groups obtain what they need and want through creating offering and freely exchanging products and services of value with others. 4. Marketing deals with identifying and meeting human and social needs

The scope of Marketing

Exchange and transaction A person can obtain a product in one of four ways
Self-produce Use force Beg Exchange

The scope of Marketing


Exchange and transactions Exchange: The process of obtaining a desired product from someone by offering something in return. Transaction: A trade of values between two or more parties. When an agreement is reached we say transaction has happened. For exchange potential five conditions must be satisfied
1. 2. 3. 4. 5. There are at least two parties Each party has something that might be of value to the other party Each party is capable of communication and delivery Each party is free to accept or reject the exchange offer Each party believes it is appropriate or desirable to deal with the other party

The scope of Marketing

A transaction involves
At least two things of value Agreed upon conditions A time of agreement A place of agreement
A legal system supports and enforces compliance

Transfer

In transfer A gives X to B but does not receive any thing tangible in return
Gifts, subsidies, charity Transfer expects something like gratitude, changed behaviour, Thankyou notes, invitations, a business firm wants a purchase, a politician wants vote,

What each party expects

Mahindra and Mahindra sales a tracter


Farmer wants:

High quality equipment A fair price Timely delivery Good financial terms Reliable parts and service Good price for the tracter On-time payment Positive word of mouth

Mahindra and Mahindra wants


The scope of Marketing


What is Marketed?
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Goods Services Events Experiences Persons Places Properties Organisations Information Ideas
Cars, Trucks, Televisions, Machine Tools, Machines, Industrial chemicals, watches, Airlines, Hotels, Car rental, barbers, beauticians, cosmetics . maintenance and repair, accountants, lawyers, Trades shows, Artistic performances, doctors, consultants, service providers Sporting events (Olympics, World Cup), Amusement park, water park, Multiplexes Celebrity marketing, Stars selling themselves through PR agencies State ads like touristagents, or business destinations etc. Real Estate or financial property like stocks and bonds Corporate, Universities .. Companies, News channels, Encyclopedias . Awareness about AIDS, Family planning, Discouraging smoking .

The scope of Marketing


Who Markets?
A marketer is someone who seeks response from another party called prospect,

Eight demand states:


1. 2. 3. 4. 5. 6. 7. 8. Negative Demand Nonexistent Demand Latent Demand Declining Demand Irregular Demand Full Demand Overfull Demand Unwholesome Demand

Markets

Collection of buyers and sellers who transact over a particular product or product class (e.g. the housing market or grain market) Sellers: Constituting industry Market Buyers: Constituting markets

Markets
Resources Resources

Money

Resource Markets

Money

Manufacturer Markets

Taxes, Goods Services Money

Services Money Taxes

Taxes, Goods

Government Markets

Services

Consumer Markets

Services Money Money Goods & Services

Taxes, Goods Money

Intermediary Markets

Goods & Services

Key customer markets

Consumer markets Business markets Global markets Non-profit and Govt Markets
Communication Goods/ Services

Industry (Collection of sellers)

Market (collection of buyers)

Money Information

Marketplaces, Marketspaces and Metamarkets


Marketplace: is physical as you shop a store Marketspace: is digital as you shop on Internet

Metamarket: is a cluster of complementory productsand services that are closely related in the minds of consumers but are spread across a diverse set of Industries Automobile metamarket:
Automobile Manufactures Insurance companies Auto magazines New car Dealers Mechanics Classified Auto ads in newspapers Used car Dealers Spare part dealers Internet sites on Auto Financing Companies Service shops

The scope of Marketing


How business and Marketing are changing?
Changing Technology Globalization Deregulations Privatization Customer empowerment Customization Heighten competition Industry convergence Retail transformation Disintermediation

Company orientation/ Philosophies


The Production Concept
High production efficiency, Low cost and mass distribution

The Product Concept


The Selling concept

Total focus on product and no focus on other needs

Intention is to sell more and more

The Marketing Concept

The Holistic Marketing Concept

No HUNTING but GARDENING, Understanding EXPRESSED needs Reactive Market Orientation) Understanding LATENT needs (Proactive Market Orientation) And TOTAL Market Orientation Relationship Marketing Integrated Marketing Internal Marketing Social Responsibility Marketing

Marketing Department

Senior Management

Company orientation
Other Departments Communications Products & Services Channels

Internal Marketing

Integrated Marketing

Holistic Marketing

Socially Responsible Marketing

Relationship Marketing

Ethics

Environment

Legal

Community

Customers

Partners

Channel

Relationship Marketing

Has a aim of building mutually satisfying long term relationships with key parties- Customers, Suppliers, Distributors and Other marketing partners- in order to earn and retain their business. Marketing must not only do customer relationship management (CRM) but also partner relationship management (PRM) Key constituents are Customers Employees Marketing partners (channels, suppliers, distributors, dealers, agencies) Members of financial community (shareholders, investors, analysts) Ultimate outcome is a Marketing Network

Integrated Marketing Marketing Mix


Products
Marketing Mix
Product variety Quality Design Features Brand name Packaging Target Market Sizes Services Warranties Price Returns List price Discounts Allowances Payment period Credit terms

Place

Channels Coverage Assortments Locations Inventory Transport

Promotion

Sales promotion Advertising Sales force Public relations Direct Marketing

Integrated Marketing Marketing Mix


Four Ps Product Price Place Promotion Four Cs Customer solution Customer cost Convenience Communication

Internal Marketing
Marketing must be embraced by the other departments

Social Responsibility Marketing


Incorporates social responsibility and understands broader concerns and the ethical, environmental, legal and social context.

Fundamental Marketing Concepts:


Core concepts: Needs, wants and Demands Target Markets, Positioning and Segmentation (STP) Marketing Environment: 1.1. Divide into segments Offerings and Brands Task market Environment Marketing Planning 1. Stated needs 2. Profile distinct groups using Company Value and satisfaction Supply channel describes a longer channel Analysing Marketing 2. Real needs opportunities demographic, psychographic Suppliers 1.reflects Communication from Competition Value includes the perceived all channels the actual tangible Selecting target 3. Unstated market needs and behavioral differences Marketing channels Distributors A brand is an offering from a Known source 2. Distribution channels Raw material to and intangible potential rival benefits offerings and costs and Designing marketing 4. Delight strategies needs 3. Decide segment with greatestto Dealers 3. Service channels Supply chain Components to customers. substitutes Value that acan buyer be might seen as a Developing 5. marketing Secret needs programmes opportunity Target Customers Final products combination consider of target Quality, Service and Managing marketing efforts 4. For chosen market Competition 1. Broad Environment Supply chain offering represents Value delivery Price develop Demographic Marketing Environment system Economic Marketing planning Physical
Technological Political-legal Social-cultural

Factors Influencing company Marketing Strategy


Demographic/ economic environment Marketing intermediaries Technological/ physical environment

Product

Suppliers

Target customers

Publics

Promotion

Competitions Political/ Legal environment Social/ Cultural environment

Future of Marketing

From Marketing does the marketing to everyone does the Marketing From organizing by product units to organising by customer segments From making everything to buying more goods and services from outside From using many suppliers to working with fewer suppliers in a partnership From relying on old market positions to uncovering new ones From emphasizing tangible assets to emphasizing intangible assets From building brands through advertising to building brands through performance and integrated communications

Future of Marketing

From attracting customers through stores and salespeople to making products available online From selling to everything to trying to be the best firm serving well defined target markets From focusing on profitable transactions to focusing on customer lifetime value From a focus on gaining market share to a focus on building customer share From being local to being glocal- both local and local From focusing on the financial scorecard to focusing on the marketing scorecard From focusing on shareholders to focusing on stakeholders