Marketing

Prakash Sharma Asst. Business Development Officer IndiaReport Metrix Web Services (P) Ltd.

The Importance of Marketing 
Financial

success depends on MARKETING success  CMO - just as CEO and CFO  ³Tricky´ - Kodak, Sony, Xerox  A never-ending pursuit - Microsoft, Nike, Apple

Fundamental concepts 
Needs:

Basic human requirements - food, shelter, clothing, recreation, education, entertainment  Wants: When the above needs are directed to specific objects that might satisfy needs  Wants are shaped by one¶s society  Demands are wants for specific products backed by an ability to pay

Fundamental concepts
is the customer¶s perception of all of the benefits of a product or service weighed against all the costs of acquiring and consuming it  Benefits can be functional, emotional or self-expressive (Dettol, Nike, Maruti 800) 
Value

What is Marketing? 
³Marketing

is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stake holders´
AMA

Exchange and Transactions 
Exchange is

the core concept of marketing  Exchange is the process of obtaining a desired product from someone by offering something in return - therefore, there are at least two parties and each party is capable of communication and delivery  Exchange is a value creation process because it leaves both parties better off

Exchange and Transactions 
When

an agreement is reached after negotiation, we say that a transaction takes place  A transaction is a trade of values between two or more parties

What is Marketed? 
Goods  Services  Events  Experiences  Persons

What is Marketed? 
Places  Properties  Organizations  Information  Ideas

Marketing Mix: Product 
A product

exists within a product category e.g. Nike, Reebok, Adidas exist in the athletic shoe category  What product attributes and benefits are important to the consumer?

Marketing Mix: Product 
How is

the product perceived relative to competitive offerings?  Includes product design, product operation and performance, the physical dimensions of packaging and branding

Marketing Mix: Place 
Includes

the channels used in moving the product from the manufacturer to the buyer  Distribution channels: Manufacturer Wholesaler - Retailer - Consumer  Also includes geographical coverage  Storage (Warehouse)

Marketing Mix: Price 
Includes

the price at which the product or service is offered for sale and the level of profitability  It is important to consider while pricing how much the market can bear, competitive pricing and the value the consumer sees in the product

Marketing Mix: Promotion 
Personal

selling  Advertising  Sales Promotion  Direct Marketing  Marketing/Public Relations  Point-of-sale/Packaging

Macro Marketing
Macro marketing refers to the overall social process that directs the flow of goods and services from producer to consumer. It is the economic system that determines what and how much is to be produced and distributed by whom, when, and to whom

8 Macro Marketing Functions 
Buying, which

refers to consumers seeking and evaluating goods and services  Selling, which involves promoting the offering  Transporting, which refers to the movement of goods from one place to another

8 Macro Marketing Functions 
Storing, which

involves holding goods until customers need them  Standardisation and grading, which entails sorting products according to size and quality  Financing, which delivers the cash and credit needed to perform the first five functions

8 Macro Marketing Functions 
Risk

taking, which involves bearing the uncertainties that are part of the marketing process  Market information, which refers to the gathering, analysis, and distribution of the data necessary to execute these marketing functions

Sales & Marketing 
Selling is  Selling is

one activity of the entire marketing process the act of persuading or influencing a customer to buy (actually exchange something of value for) a product or service

Sales & Marketing 
Marketing

activities are usually the most significant force in stimulating sales  Oftentimes, marketing activities must occur before a sale can be made; they sometimes follow the sale as well, to pave the way for future sales and referrals

Sales & Marketing
At the heart of the sales concept is the desire to sell a product that the business has made as quickly as possible to fulfil sales volume objectives. When viewed through the marketing concept lens, however, businesses must first and foremost fulfil consumers' wants and needs. The belief is that when those wants and needs are fulfilled, a profit will be made

Marketing and customer value

The Value Chain 
Proposed

by Michael Porter as a tool for identifying ways to create more customer value  Every firm is a synthesis of activities performed to design, produce, market, deliver, and support its product

The Value Chain 
The

firm¶s task is to examine its costs and performance in each value-creating activity and to look for ways to improve it  The firm should estimate its competitors¶ costs and performances as benchmarks  It should go further and study the µbest of class¶ practices of the world¶s best companies

Core Business Processes 
The

market sensing process  The new offering realization process  The customer acquisition process  The customer relationship management process  The fulfillment management process

Core Business Processes 
Strong companies

develop superior capabilities in managing and linking their core business processes (Walmart - VMI)  To be successful, a firm also needs to look for competitive advantages beyond its own operations, into the value chains of suppliers, distributors, and customers Value delivery network - Supply chain

Core Competencies 
3

characteristics: Makes a significant contribution to perceived customer benefits It has application in wide variety of markets It is difficult for competitors to imitate (Nike - shoe design and merchandising. Manufacturing is outsourced)

Core Competencies 
Competitive

advantage also accrues to companies that possess distinctive capabilities  Core competencies tend to refer to areas of special technical and production expertise  Distinctive capabilities tend to describe excellence in broader business processes

Activity Systems 
Competitive

advantage ultimately derives from how well the company has fitted its core competencies and distinctive capabilities into tightly interlocking µactivity systems¶  (Dell/IKEA)

SWOT Analysis 
STRENGTHS:

internal capabilities,

resources  WEAKNESSES: internal limitations  OPPORTUNITIES: favourable factors or trends in the external environment  THREATS: unfavourable external factors

Feedback and Control 
 

As it implements its strategy, a firm needs to track the results and monitor new developments The marketplace will change; and a review and revision of implementation, programs, strategies, or even objectives is required Once an organization fails to respond to a changed environment, it becomes increasingly hard to recapture its lost position (Lotus 1-2-3)

Thanx

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