Marketing Management

By, Prashant Baid 1214109135

What is Marketing…??
Selling? Advertising? Promotions? Making products available in stores? Maintaining inventories?

All of the above, plus much more!

2 2

Marketing = ?
Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, services to create exchanges that satisfy individual and organizational goals
American Marketing Association

3 3

Marketing = ?
Marketing management is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value.

4 4

Simple Marketing System

(a collection of sellers)




(a collection of Buyers)



5 5

Marketing = ?
Marketing is the sum of all activities that take you to a sales outlet. After that sales takes over.  Marketing is all about creating a pull, sales is all about push.  Marketing is all about managing the four P’s –

product  price

place  promotion

6 6

The 4 Ps & 4Cs
Marketing Mix Product Customer Solution Convenience Place

Price Customer Cost

Promotion Communication
7 7

Difference Between - Sales & Difference Between - Sales & Marketing ? Marketing ?

trying to get the customer to want what the company produces

trying to get the company produce what the customer wants

8 8

Scope – What do we market
         

Goods Services Events Experiences Personalities Place Organizations Properties Information Ideas and concepts

9 9

Core Concepts of Marketing
Based on :  Needs, Wants, Desires / demand
  

Products, Utility, Value & Satisfaction Exchange, Transactions & Relationships Markets, Marketing & Marketers.

10 10

Core Concepts of Marketing

Needs, wants demands


Utility, Value & Satisfaction


Marketing & Marketers

Xchange, Transaction Relationships

11 11

Core Concepts of Marketing
 

Need – food ( is a must ) Want – Pizza, Burger, French fry's ( translation of a need as per our experience ) Demand – Burger ( translation of a want as per our willingness and ability to buy ) Desire – Have a Burger in a five star hotel

12 12

In order to understand Marketing let us begin with the Marketing Triangle




13 13

Who is a Customer ??
CUSTOMER IS . . . . .
Anyone who is in the market looking at a product / service for attention, acquisition, use or consumption that satisfies a want or a need

14 14

Customer –
CUSTOMER has needs, wants, demands and desires Understanding these needs is starting point of the entire marketing These needs, wants …… arise within a framework or an ecosystem Understanding both the needs and the ecosystem is the starting point of a long term relationship

15 15

How Do Consumers Choose Among Products & Services?
Value - the value or benefits the customers gain from using the product versus the cost of obtaining the product. Satisfaction - Based on a comparison of performance and expectations.
 Performance > Expectations => Satisfaction  Performance < Expectations => Dissatisfaction

16 16

Customers - Problem Solution
As a priority , we must bring to our customers “WHAT THEY NEED” We must be in a position to UNDERSTAND their problems Or in a new situation to give them a chance to AVOID the problems

17 17

Customer looks for Value
Value Benefit Cost = Benefit / Cost = Functional Benefit + Emotional Benefit = Monetary Cost + Time Cost + Energy Cost + Psychic Cost

18 18

Analysis Of Competition
Who are your competitors? What are their strengths and weaknesses? What have been their strategies? How are they likely to respond to your Marketing plan?

19 19

Strategic Marketing
Strategic marketing management is concerned with how we will create value for the customer Asks two main questions
 What is the organization’s main activity at a

particular time? – Customer Value
 What are its primary goals and how will these be

achieved? – how will this value be delivered

20 20

Strategic Planning
Strategic Planning is the managerial process of creating and maintaining a fit between the organization’s objectives and resources and the evolving market opportunities.
 Also called Strategic Management Process   All organizations have this   Can be Formal or Informal 

21 21

The Strategic-Planning, Implementation, and Control Process

22 22

Business Strategic-Planning Process
External environment (Opportunity & Threat analysis)

Business Mission

Goal Formulation

Internal Environment (Strength/ Weakness analysis)
23 23

Strategy Formulation
Environmental Analysis Competitor Customer Supplier Regulatory Social/ Political Internal Analysis Technology Know-How Manufacturing Know-How Marketing Know-How Distribution Know-How Logistics Opportunities & Threats Strength & Weaknesses Identity Core Competencies

Identify opportunity

Fit internal Competencies with external opportunities

Firm Strategies

24 24

The Marketing Plan
A written document that acts as a guidebook of marketing activities for the marketing manager

25 25

Business Mission Statement Objectives Situation Analysis (SWOT) Marketing Strategy  Target Market Strategy  Marketing Mix
       Positioning Product Promotion Price Place – Distribution People Process

Implementation, Evaluation and Control
26 26

The Marketing Process
Business Mission Stateme nt Objectiv es Situation or SWOT Analysis

Marketing Strategy
Target Market Strategy

Marketing Mix
Product Promotion Place/Distribution Price

Implementation Evaluation, Control

27 27

Marketing Environment

Why a product like radio declined and now once again emerging as an entertainment medium ?

29 29

What Were the Drivers of This Change ? Technology ? Government policy ? Other media substitutes ?

30 30

Why Market Leaders Suffered ?
    

HMT vs. Titan HLL vs. Nirma Bajaj vs. Honda boom, then bust and now resurgence Market leadership today cannot be taken for granted.New and more efficient companies are able to upstage leaders in a much shorter period.

31 31

Factors Influencing Company’s Marketing Strategy

32 32

External Marketing Environment External Marketing Environment
External Environment is not controllable
Demographics Demographics Economic Economic Conditions Conditions Social Social Change Change Ever-Changing Marketplace

Product Product Distribution Distribution Promotion Promotion Price Price

Physical / Natural

Competition Competition

Target Market
Political & Political & Legal Factors Legal Factors

Environmental Scanning

Technology Technology

33 33

The macro-environment

is the assessment of the external forces that act upon the firm and its customers, that create threats & opportunities

34 34

P r o d u c tt Produc

35 35

Product is . . . . .

Anything that is offered to the market for attention, acquisition, use or consumption that satisfies a want or a need

36 36

Types of Products

Consumer Products


Industrial Products

37 37

Product Items, Lines, and Mixes
A specific version of a product A specific version of a product that can be designated as a that can be designated as a distinct offering among an distinct offering among an organization’s products. organization’s products. A group of closely-related A group of closely-related product items. product items.

Product Item Product Item

Product Line Product Line

Product Mix Product Mix

All products that an All products that an organization sells. organization sells.
38 38

Product Mix
Width – how many product lines a company has Length – how many products are there in a product line Depth – how many variants of each product exist within a product line Consistency – how closely related the product lines are in end use

39 39

Gillette’s Product Lines & Mix
Width of the product mix
Blades and razors
Fusion – 5 blade Mach 3 Turbo Mach 3 Sensor Trac II Atra Swivel Double-Edge Lady Gillette Super Speed Twin Injector Techmatic

Depth of the product lines

Series Adorn Toni Right Guard Silkience Soft and Dri Foamy Dry Look Dry Idea Brush Plus

Writing instruments
Paper Mate Flair S.T. Dupont

Cricket S.T. Dupont

40 40

What is a Service? Defining the Essence
An act or performance offered by one party to another (performances are intangible, but may involve use of physical products) An economic activity that does not result in ownership A process that creates benefits by facilitating a desired change in customers themselves, or their physical possessions, or intangible assets

41 41

Some Industries - Service Sector
Banking, stock broking Lodging Restaurants, bars, catering Insurance News and entertainment Transportation (freight and passenger) Health care Education Wholesaling and retailing Laundries, dry-cleaning Repair and maintenance Professional (e.g., law, architecture, consulting)

42 42

Classification of Services

Pure Intangible Service

Good Transportation Major Service with Minor Product Business Hotels Product = Service Computers Major Product with Minor Services Materials / Components

Pure Tangible Product
43 43

Major Characteristic of Services

Intangibility – Services are intangibility cannot be seen, tasted, felt, heard or smelled before purchase. Inseparability - Services are produced and consumed simultaneously. Variability or Heterogeneity – Services are highly variable Perishability – Services cannot be stored. Non Ownership - Services are rendered but there is no transfer of title

  

44 44

The Marketing Mix
The conventional view of the marketing mix consisted of four components (4 Ps): Product, Price, Place/ distribution and Promotion. Generally acknowledged that this is too narrow today; now includes , Processes, Productivity [technology ] People [employees], Physical evidence Marketers today are focused on virtually all aspects of the firm’s operations that have the potential to affect the relationship with customers.

45 45

The “8Ps” of Integrated Service Management vs. the Traditional “4Ps”
► ► ► ► ► ► ► ►

Product elements Place, cyberspace, and time Process Productivity and quality People Promotion and education Physical evidence Price and other user outlays

46 46

The Give and Get of Marketing

47 47

Great Words on Marketing
1. 2.

3. 4. 5.

“The purpose of a company is ‘to create a customer…The only profit center is the customer.’” “A business has two—and only two—basic functions: marketing and innovation. Marketing and innovation produce results: all the rest are costs.” “The aim of marketing is to make selling unnecessary.” “While great devices are invented in the Laboratory, great products are invented in the Marketing department.” “Marketing is too important to be left to the marketing department.”

48 48

Drivers of Customer Satisfaction
Many aspects of the firm’s value proposition contribute to customer satisfaction:
 The core product or service offered  Support services and systems  The technical performance of the firm  Interaction with the firm and it employees  The emotional connection with customers

Ability to add value and to differentiate as a firm focuses more on the top levels

49 49

Marketers and Markets
Marketers are focused on stimulating exchanges with customers who make up markets – B2C or B2B. The market is comprised of people who play a series of roles: decision makers, consumers, purchasers, and influencers. It is absolutely essential that marketers have a detailed understanding of consumers, their needs and wants. Much happens before and after the sale to affect customer satisfaction

50 50

Stages of Customer Interaction

51 51

What Changed in Marketing…
Old Economy
• • • • • • • • • • • • • • • • • •
Organize by product units Organize by product units Focus on profitable transactions Focus on profitable transactions Look primarily at financial Look primarily at financial scorecard scorecard Focus on shareholders Focus on shareholders Marketing does the marketing Marketing does the marketing Build brands through advertising Build brands through advertising Focus on customer acquisition Focus on customer acquisition No customer satisfaction No customer satisfaction measurement measurement Over-promise, under-deliver Over-promise, under-deliver

New Economy
• Organize by customer segments • Focus on customer lifetime value • Look also at marketing scorecard • • • • • Focus on stakeholders Everyone does the marketing Build brands through performance Focus on customer retention Measure customer satisfaction and retention rate • Under-promise, over-deliver

52 52

Are Banks truly Are Banks truly marketing-savvy and marketing-savvy and customer - centric? customer - centric?

53 53

Myth 1 – The larger the range of products, the more customer-centric I am.

Mythbuster – The range of products has emerged from being competition-centric.

54 54

Myth 2 – Better technology (read CRM) leads to better customer service.

Mythbuster – Technology alone does not deliver, helps people do.

55 55

Myth 3 – Launch a product and the customer will start

using instantly.
- Give a customer a card and he will learn how to play

with it immediately

Mythbuster – Customers need To be educated too…

56 56

Myth 4 – The only way to get a customer is from competition.

Mythbuster – Customers are not only present where competition is.

57 57

Myth 5 – Just advertise and - You will sell.

Mythbuster – Advertising will only sell, Not retain customers.
58 58

Myth 6 – No difference between marketing & selling

Mythbuster – “Selling focuses on the needs of the seller; marketing on the needs of the buyer.

59 59

Myth 7 – In the absence of relationships ‘trust’ builds financial brands

Mythbuster – Trust is not a differentiator at all… it is the very minimum that the customer expects!!

60 60

So what will the differentiators be : So what will the differentiators be :
• Technology ? • Brand ?

61 61

The real differentiator of customer – centricity in a commoditised world of financial products -

Customer Service !
62 62

Thank You

63 63