Welcome to the world of

Marketing !!

Dr Vandana Sonwaney
MBA I 10-12 SEM I
The famed florist Max Schling once
ran a brilliant ad in The New York Times:

The copy, entirely in shorthand,

was clipped by thousands of curious businessmen

who naturally asked their secretaries for a translation.

The ad - addressed to these very secretaries

-asked them

-to remember Schling when the boss wanted flowers for his
wife!
Marketing Incidents

What’s your Review ?

-A movement for direction and alignment of internal and
external chain and for imbibing that marketing zeal and
spirit to prove that our work is our reflection of customer
focused attitude.

“ Because the purpose of business is to CREATE and

KEEP customers, it has only two central functions –
Marketing & Innovation. The basic function of Marketing
is to attract and retain customers at profit”. -----Peter
Drucker

What
How
Marketing Management -Introduction
 What is marketing really?
 Core concepts
 Core processes for value delivery
 Companies orientations towards marketing
 Marketing Management

 Organizations satisfy commitments to

customer, society and owners by creating a
benefit called “Utility”----Form, time, place
and ownership utility.

 Successful companies are :Strongly

“customer focused’, heavily committed to
marketing
 What is Marketing?
 Is it : advertising, or personal selling or
making products available in outlets
arranging window display etc.

 American Marketing Association-

“Marketing management is the process of
planning and executing the conception,
pricing, promotion and distribution of ideas,
goods and services to create exchanges that
satisfy individual and organizational goals”
 Meaning
 It is the total system of business activities
designed to plan, price, promote and
distribute want satisfying products to target
markets to achieve organizational activities”.

 “It is the creation and delivery of standard of

living”.

 “It is meeting needs profitably”.

 Meaning

 Marketing as an exchange process -----

 Marketing as a societal process -----

 Marketing as an organizational process---

 Core Concepts
 Needs ?
 Wants ?
 Demand ?
 Target market & Segments
 Value (QSP)= Benefits
Costs
 Core Concepts

 Marketing Environment
 Marketing Program
 Exchange & transaction
 Competition
Core Business Processes for value
delivery – Marketing wise

– The market sensing process

– The new offering realization process
– The customer acquisition process
– The fulfillment management process
– The customer relationship management process
 Company Orientations Toward the
Marketplace
Firms vary in the perceptions about this
business of achieving desired exchange
outcome.

 Production Concept- Produce & Sell

 Product concept- Make & Sell
 Selling Concept – Sell & Sell
 Marketing Concept – Sense & Respond
 Product-Oriented versus Market-
Oriented Definitions of a Business

Company Product Definition Market Definition

Logistics company We run a railroad We are a people-and-goods
mover
Xerox We make copying We help improve office
equipment productivity
Oil Company We sell gasoline We supply energy

Balaji Pictures We make movies We market entertainment

Encyclopaedia We sell encyclopedias We distribute Information

Carrier We make air conditioners We provide climate control in

and furnaces the home
 Marketing Concept
Marketing Concept
Achieving Corporate goals through meeting & exceeding
customer needs better than competition

Customer Goal Achievement

Orientation Belief that corporate goals
Corporate activities can be achieved through
focused on providing customer satisfaction
Customer Satisfaction
Integrated efforts
All staff accept the
responsibility fro creating
customer satisfaction
 Adapting Marketing to the New
Economy
– Everyone does the marketing

– Build brands through performance, not just advertising

– Customer retention rather than just customer acquisition

– From none to in-depth customer satisfaction measurement

– From over-promise, under-deliver to under-promise, over-

deliver

– Serving the New Hybrid Customer

 How Marketing Practices are
Changing
 E-Business : Internet Domains: B2C , B2B , Pure Click vs.
Brick and Click Companies
 Customer Relationship Marketing
– Reduce rate of customer defection
– Increase longevity of customer relationship
– Enhance growth potential
through cross-selling and up-selling
– Make low profit customers more profitable or terminate them
– Talk of “our future together”
– On the continuum from Mass Marketing to Micro marketing
– Database mining & then marketing
 Case 1
 If you build a better mouse trap, it is said; the world will beat a path to
your door, but will it really? The M. T. Company has manufactured
traps for catching all kinds of animals, form elephants to rears. One
day, the firm decided to design and manufacture a streamlined mouse
trap.

 A product designer was engaged to design a trap that would look

interesting enough for people to notice the change. The final product
was made of plastic and looked like a can with an arched doorway at
floor level through which mice could enter. Any mice coming through
the doorway trip a spring and are choked to death by a wire which
acting like an upside-down guillotine, would snap up from below.

 The company called the new product “Little Champ” and priced it at
Rs. 250/- in contrast to the wooden mouse traps, which was sold at Rs.
175/- each. Although the price was higher than the average, the trap
was easier to set, extremely efficient and perhaps best of all, could be
cleaned and reused. It did not have to be thrown out with the mouse.
 Case 1
 Expecting a fairly demand, the company sent the traps out to hardware
dealers throughout the country. But the mouse-traps just remained on
the shelves of the hardware dealers gathering expensive dust. Despite
the changes in the traps, efficiency features, no one wanted to buy
them.

 Why?

 The venture failed. Mohan Tirupathy, the company Chairman, unable

to generate interest in the product although he tried his best, for
example, during a strike of Corporation garbage workers, M. T.
Company offered the Mayor to sell a million rat traps for at throw away
price. But the Mayor was not interested and the M. T. Company finally
gave up on the product.