You are on page 1of 40

MARKETING

MANAGEMENT
Module-I
What is Marketing?
 “Human activities directed at the
satisfaction of needs and wants
through exchange processes”
(Kotler, Northwestern
University)
Marketing Management
Philosophies

Societal
Societal Marketing
Marketing Concept
Concept

Marketing
Marketing Concept
Concept

Selling
Selling Concept
Concept

Product
Product Concept
Concept

Production
Production Concept
Concept
Production Concept
 Consumer will buy goods that are
widely available and inexpensive;
focus is on improving efficiency in
production and distribution.
 Motto is “ one size fits all”.
 Standard products.
 Economies of scale.
 Mass distribution.
Example:
The Product concept:

 Customer favour products that are


highly engineered.
 Products of high quality.
 Innovative products.
 Stress on superior products and
improving them.
The Product Concept
Selling Concept
 Consumer will not buy enough of your
product if you leave them alone; focus
on advertising and contact with
potential customers.
 Buying inertia.
 Coax and cajoled in buying products.
 Invest heavily in aggressive selling and
promotion.
 “Selling Mindset”
Marketing Myopia

 Concept given by Theodore Levitt.


 Symptoms:

 Narrow definition of business

Levitt stated that “customer buy ¼” holes


and not “1/4 drill bits”.
 Preoccupation with product or
technology.
 Product is forever and has no substitute.
 Mass production.
 Over optimism about growing
markets.
Marketing Concept
 Consumers will buy your products if
you identifies their needs and
satisfy those needs better than the
competitors.
 It is a pull function
 5 Pillars of M.C
1. Target markets

2. Understanding customer needs

3. Creating products to satisfy those needs

4. Integrated marketing

5. Profitability through customer satisfaction


Differentiation b/w Selling &
Marketing concept:
Societal Marketing Concept
 Focus on satisfying customer needs and
wants while enhancing individual and
societal well-being
 Is the idea that a company should make
good marketing decisions by considering
consumers’ wants, the company’s
requirements, consumers’ long-term
interests, and society’s long-run interests
 Marketing that preserves or enhances
an individual’s and society’s long-term
best interests
- Less toxic products
- More durable products
- Products with reusable
or recyclable materials
Holistic Concept

 Based on the development, design


and implementation of marketing
programs, processes and activities.
 “Everything matters” is the motto
here.
 It lays emphasis on integration of all
the functions.
Integrated
Marketing

Socially
Internal Holistic
Responsible
Marketing Marketing
Marketing

Relationship
Marketing
Core concept of
marketing:
“NEED”
 Basic human
requirement.
 State of felt
deprivation
including physical,
social, and
individual needs.
“Want”
 When need is
directed to specific
objects it becomes
want.
 Here it has taken a
tangible form.
 It has become very
evident.
 Wants are shaped
by one's society.
“Demand”
Wants Buying Power

“Demand”
“Demand”

 Are wants for specific products


backed by an ability to pay.
Market Offerings—
Products, Services, and
Experiences
Market offerings are some
combination of products, services,
information, or experiences offered
to a market to satisfy a need or want
Customer Value &
Satisfaction:
What is Value?
 VALUE =BENEFITS (the customer receives):
COST (incur to acquire the benefits).
 Value = Functional Benfits + Emotional
Benefits.
 Cost = Monetary + Time+ Energy+
Psychic
Customer perceived value is the
difference between total customer
value and total customer cost

Customer satisfaction is the extent to


which a product’s perceived
performance matches a buyer’s
expectations
Understanding the Marketplace
and Customer Needs
Markets are the set of actual and
potential buyers of a product
Marketing system consists of all of
the actors (suppliers, company,
competitors, intermediaries, and end
users) in the system who are
affected by major environmental
forces
 Economic

 Physical

 Technological

 Political–legal

 Demographic

 Socio-cultural
Choosing a Value
Proposition

The value proposition is the set of


benefits or values a company
promises to deliver to customers to
satisfy their needs
Customer Relationship
Management
(CRM)
Customer relationship
management is the overall process
of building and maintaining profitable
customer relationships by delivering
superior value and satisfaction
Customer Relationship
Levels and Tools

 Basic relationship
 Full relationships
 Frequency marketing programs
 Club marketing programs
The Changing Nature of
Customer Relationships

Relating with more carefully selected customers


uses selective relationship management to
target fewer, more profitable customers
Relating directly uses direct marketing tools
(telephone, mail order, kiosks, Internet) to make
direct connections with customers
Partner relationship management
refers to 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
Supply chain is a channel that
stretches from raw materials to
components to final products to final
buyers
 Supply management

 Strategic partners

 Strategic alliances
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
Growing Share of Customer

Share of customer is the portion of


the customer’s purchasing that a
company gets in its product
categories
Building Customer Equity

Customer equity is the total


combined customer lifetime values of
all of the company’s 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