MARKETING MANAGEMENT

EXCHANGE AND TRANSACTION

EXCHANGE

Two parties Offer of value Capacity to communicate and deliver

Freewill for acceptance and rejection Appropriation and desirability

TRANSACTION

Two things of value Agreed conditions Time of agreement A place of agreement

EVOLUTION OF MARKETING

Production concept

Customer will prefer products that are widely available and inexpensive.

Product concept

Customers prefer those product that offer most quality, performance, innovative features.

Selling concept

The aim is to sell what is made rather then sell what is wanted.

Marketing concept

The job is to deliver a right product for your customer.

Holistic Marketing
Internal marketing Mktg Dept Sn. Mgt Integrated marketing Communicati on Products and Holistic marketing services Channels

Others Socially responsible marketing

Relationship marketing

Ethics Environmen Legal Community t

Customer Channe Partner l

WHAT IS MARKETING?

The art and science of choosing target market and getting, keeping and growing customers through creating, delivering and communicating superior customer value. Marketing is the function that adjusts an organization’s offering to the changing needs of the market place. Marketing is a civilized form of warfare in which most battles are won with words, ideas and disciplined thinking.

PURPOSE OF MARKETING

 

 

Lowers the cost of attracting new customers Encourages loyalty Enhances and promote positive word of mouth Reduces failure cost Creates competitive advantage

Contd..

Shaping the market offerings Building strong brand Delivering value Capturing market insights

FUNCTIONS OF MARKETING

Merchandising function

Product planning and Development Standardizing and Grading Buying and Assembling Selling

Physical Distribution Function

Storage Transportation

Auxiliary function

Arrangement of finance Risk Bearing Market information Pricing

IMPORTANCE OF MARKETING

Delivery of standard of living Decrease in distribution cost Increase in employment opportunities Increase in national income Protection against business slump

WHAT IS MARKETED?

Goods

Services

Events

Experiences

Persons

Places

Properties

Organizations

Information

Ideas

WHO MARKETS?

Marketers are responsible for demand management. They influence the level, timing, and composition of demand to meet the organizational objectives.

MARKET?
Resources Money Resource market Taxes Services Manufacturer market Govt. market Taxes Service s Taxes Money Goods and services Services Resources Money Services Taxes Consumer market

Money

Goods and services

Intermediary market

DYNAMICS OF TRANSFORMATION

Changing technology

News paper to e-paper

Global Markets Privatization Customer Empowerment

Cont..

Competition Retailing Disintermediation

MARKETING MIX

PRODUCT

PRICE

PLACE

PROMOTION

FRAMEWORK OF MARKETING MANAGEMENT
CUSTOME R ANALYSIS COMPITION ANALYSIS COMPAN Y ANALYSI S

TARGET SEGMENT SELECTION AND POSITIONING

PRODUCT, PRICE, PROMOTION, PLACE

MARKETING ENVIRONMENT
Macro Technology Demograp hic Economical Marketin g capabilit y Market demand Competition Socio- cultural Political Personne l capability Internal Technica l Financia capabilit l y capabili ty Suppliers Legal

Consumer tastes and preferences Micro

STRATEGIC MARKETING PLANNING

INTRODUCTION

STRATEGY A plan for successful action based on the rationality and inter -dependence of the moves of opposing participants  TACTICS The procedures adopted to carry out a scheme or achieve an end

ADVANTAGES

Clear sense of vision Focus on the important Understanding the environment

CHALLENGES
Globalization E-commerce

• •

IMPACT OF THE INTERNET  Customers Networking  Disintermediation  Faster business pace  Boundaries dissolving  Intellectual capital

THE BASIC MODEL
ENVIRONMENTAL SCANNING FORMULATI ON IMPLEMENTATI ON EVALUATION & CONTROL

ENVIRONMENTAL SCANNING

SWOT Strategic Factors

FORMULATION

MISSION  OBJECTIVES  STRATEGIES  POLICIES

IMPLEMENTATION

PROGRAMS  BUDGETS  PROCEDURES

EVALUATION

Performance

TYPES

CORPORATE  BUSINESS  FUNCTIONAL

CORPORATE

  

STABILITY GROWTH RETRENCHMENT

BUSINESS

COMPETITIVE COOPERATIVE

FUNCTIONAL
DISTINCTIVE COMPETENCE

DECISION MAKING APPROACHES
ENTREPRENEU RIAL PLANNING ADAPTIVE

LOGICAL INCREMENTALI SM

CHARACTERISTICS

RARE  CONSEQUENTIAL  DIRECTIVE

THE CONCEPT OF SYNERGY

Focus when Diversification Strategy is chosen 1. VERTICAL INTEGRATION 2. HORIZONTAL DIVERSIFICATION

EXAMPLES
FLEET VERTIC O UPSTRE AM

W/S FISH MKT RETAIL JEWEL RY HORIZI NC DOWNSTREA

RETAIL FOOD