Marketing

1. Sessions I Objectives
• What concepts underlie the discipline of
marketing
• What basic tasks do marketing managers
perform
• What is marketing concept and how does it
contrast with other philosophies of doing
business
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2. What is said?
1. The best product or service will win.
2. Attack your competitors’ weakness with your marketing.
3. You have to run an ad 3-6 times before it is
effective/profitable.
4. “I know this product like the back of my hand. I’ll be able to
sell it.”
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3. What is said?
5. Everyone loves it. I’ll have no problem selling a bunch.
6. The Internet is an easy place to make money.
7. You should cut back on your marketing and advertising
expenditures in a recession.
8. I’ll be able to get money to finance my new product.
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4. Core Concepts of Marketing
• Needs, Wants and Demands
• Product or Offering
• Value and Satisfaction
• Exchange and Transactions
• Relationships and Networks
• Marketing Channels
• Supply Chain
• Target Markets
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5. Marketing Management
Process of
analyzing,planning,implementing,coordinating
and controlling programs involving the
conception,pricing,promotion and distribution
of goods, services and ideas designed to
create and maintain beneficial exchanges with
the target markets for the purpose of
achieving organisational objectives
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6. Modern Marketing System
Suppliers
Company
Competitors
(Marketer)
Environment
Environment
Marketing
Intermediaries
End User
Market
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7. Marketing Management
Marketing Demand Profitable
Management Management Customer
Relationships
Implementing Finding and
programs increasing Attracting new
to create demand, also customers and
exchanges changing or retaining and
with target reducing building
buyers demand such relationships
to achieve as in with current
organizational Demarketing customers
goals
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8. Essential requirements of marketing
• The identification of consumer needs(What goods & services
are bought, how they are bought, by whom they are bought
and why they are bought)
• The definition of target market(grouping of customers by
common characteristics, geographic, demographic,
psychological etc)
• The creation of differential advantage by which a distinct
competitive position relative to other companies can be
established
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9. How the differential advantage can
be established?
• Manipulation of the elements in the
marketing mix
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10. The P’s of marketing
• Product-Product Management, New Product Development,
Branding, Packaging
• Pricing-Discounts, Allowances, Terms of Business etc
• Promotion-Advertising, Sales Promotion, Publicity, Public
Relations, personal selling
• Place-Channel Management ,Physical Distribution
• People-Employee selection, training, motivation
• Physical evidence-layout , décor, ease of access, forms of
presentation
• Process Management-How the customers are handled and
managed from the point of very first contact with the
organization
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11. Company orientation towards
marketplace
• The Production Concept
• The Product Concept
• The Selling Concept
• The Marketing Concept
• The Societal Marketing Concept
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12. Marketing and Sales Concepts
Contrasted
Starting
Focus Means Ends
Point
Selling Profits
Existing
Factory and through
Products Promoting Volume
The Selling Concept
Profits
Customer Integrated
Market through
Needs Marketing
Satisfaction
The Marketing Concept
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13. Societal Marketing Concept
Society
(Human Welfare)
Societal
Marketing
Concept
Consumers Company
(Want Satisfaction) (Profits)
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14. Holistic Marketing Concept
• Relationship Marketing
• Integrated Marketing
• Internal Marketing
• Socially Responsible Marketing
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15. Pillars of the Marketing Concept
• Target Market
• Customer Needs
• Integrated Marketing
• Profitability
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16. Marketing Tasks
• Target those customers most compatible with its
resources
• Develop products that meet the needs of the target
market better than the competitive products do
• Make products readily available
• Develop customer awareness of the problem solving
capabilities of the company’s product line
• Obtain feedback from the market about the
company’s products
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17. The Customer Focus
Factors influencing customer satisfaction
• Delivery system
• Product Performance
• Image
• Price Value Relationship
• Employee Performance
• Competition
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18. Requirement for developing
customer driven organization
• Instilling customer oriented values and beliefs supported by
top management
• Integrating market and customer focus into strategic planning
process
• Developing strong marketing managers and programs
• Creating market based measures of performance
• Developing customer orientation throughout the organization
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19. Marketing Myopia
• Because of myopic product focus others gain the benefits of growth
• Define the business in terms of basic customer needs rather than
product
– Transportation Business rather than railroad business- energy instead
of petroleum business, communication rather than telephone business
– Xerox changed focus from copiers when it became the document
company
• Defining a business in terms of generic need is useful in fostering
creativity and generating strategic options and avoiding internally
oriented product/production focus
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20. Dynamism in Business and Marketing
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21. ESCALATING INFULENCE OF
TECHNOLOGY
• Competitive Advantage
• High Cost
• Short Life Cycles
• Range of Choices
• Innovation Process
• Analyzing Customer Needs
• Information technology
• Environmental responsibility
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22. Gillette Sensor Case
• Gillette sensor razor introduced in 1990
• Required about $200 million do develop and start
manufacturing
• Another $110 million in commercialization
• Business Challenge was formidable
To substantially increase Gillette’s profits sensor must
perform a marketing miracle: halt a 15 year old trend towards
inexpensive disposable razors at double the cost of shaving
using disposables - sensor will be a hard sell
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23. Challenges …
Customers
Expect higher quality and service and customization
Perceive fewer real product differences
Show greater price sensitivity
Can obtain extensive product information
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24. Challenges …
Brand Manufacturers
Intense competition from local and foreign
brands
Rising promotional costs and shrinking
profits
Bargaining power of retailers who command
limited shelf space
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25. Challenges …
Store based retailers
Small retailers versus the giant retailers
Store retailing versus non store retailing
Large retailers selling “experience” rather than
only product assortment
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26. Shifts
• Marketing does marketing-Everyone does marketing
• Making everything-outsourcing
• Many Suppliers- Few suppliers- Partnerships
• Relying on old market positions- uncovering new ones
• Emphasizing on tangible assets- emphasis on intangible assets
• Advertising- IMC
• Store retailing-non store retailing
• Selling to everyone- Selling to well defined target market
• Market Share- Customer Share
• Local- Glocal
• Focusing on financial scorecard- Marketing Score card
• Shareholder focus – Stakeholder focus
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27. Company responses and adjustments to
challenges
Reengineering
Outsourcing-virtual companies
E-commerce
Benchmarking-study world class performers and adopt
best practices
Alliances
Partner suppliers
Market Centered
Global
Decentralized
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28. Marketer responses and adjustments to
challenges
Relationship Marketing
Customer lifetime value
Customer Share instead of market share-Variety
to existing customers
Target Marketing
Individualization
Customer Database
Integrated Marketing Communication
Channels as partners
Every employee a marketer
Model based decision making
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29. The five major elements of
strategy
Where will we be active? How will
we obtain
Arenas
our
returns?
What will be our speed
Staging Economic Logic Vehicles How will we get
and sequence of moves? there?
Differentiators
How will we win in the market place?
13/03/12 Pratap Rawal 29