2. Overview of Marketing_Draft_Final

1 2015 Sekhar Kondepudi

Marketing : Bringing Successful Products

to Market - What/Why/How

Sekhar Kondepudi Ph.D

Certificate in International Economics and Business 20 April 04 May 2015

[email protected]


Economics Executive Programs

2015 Sekhar Kondepudi

Agenda

Quick Overview of Marketing

An Integrated Marketing Plan

New Product Development (NPD)

Product Management & Role of Product Managers

Go To Market Strategies

Innovation & Case Studies

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What is Marketing?Customers

- Value & RelationshipsThe Marketplace & Customer Needs

Todays Marketing Landscape

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What Is Marketing?

The process by which companies create value for customers and build strong customer relationships to capture value from customers in return

The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, services, organizations, and events to create and maintain relationships that will satisfy individual and organizational objectives.

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Is Marketing Selling ?

NO !!

Selling is part of Marketing Marketing starts long before the company

has a product or service Marketing involves homework to asses

needs, measure their extent, and determine if a profitable opportunity exists

Selling only occurs only after a product is manufactured or a service is created

Marketing continues throughout a products life, finding new customers, improving product appeal and performance, and managing repeat sales

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Philip Kotler




Is Marketing Advertising ?

NO !!

Advertising is part of Marketing Marketing starts long before the company places

and ad or develops an advertising strategy Advertising becomes part of an over-all Marketing

Plan Advertising only occurs only after a product is

manufactured or a service is created

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John Eichenberger




Is Marketing a Department

NO !!

Yes, companies do have Marketing DepartmentsBUT

All departments should be at least customer oriented if not customer driven

In highly competitive markets, all departments must focus on winning customer preference

Companies cant give job security. Only customers can Jack Welch, General Electric CEO

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Philip Kotler




American Marketing Association

Marketing 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 stakeholders.

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The 4 Ps

Need to address customer satisfactiopn

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Customer Needs, Wantsand Demands

Needs are states of deprivation Physicalfood, clothing, warmth, safety Socialbelonging and affection Individualknowledge and self-expression

Wants are the form that needs take as they are shaped by culture and individual personality

Demands are wants backed by buying power

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Customer Value Chain

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Perception of Luxury

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Converting Needs to Wants

The need for a vacation becomes a desire to take Caribbean Holiday

The need for fitness becomes a desire for exercise classes

Brooks Focuses on the Benefit of Comfort in Marketing Its Running Shoes

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Fulfilling the Need for PRIVACY

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Products, Services, Experiences

Market offerings are some combination of products, services, information, or experiences offered to a market to satisfy a need or want

Marketing myopia is focusing only on existing wants and losing sight of underlying consumer needs

Exchange is the act of obtaining a desired object from someone by offering something in return

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Exchanges and Relationships

Exchange is the act of obtaining a desired object from someone by offering something in return

Relationships consist of actions to build and maintain desirable relationships

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Markets & Marketing Systems

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 Demographic

Economic

Physical

Technological

Politicallegal

Socio-cultural

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Marketing Management

Marketing management is the art and science of choosing target markets and building profitable relationships with them

Customer management What customers will we serve? Demand management How can we best serve these customers?

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Selecting Customers to Serve

Market segmentation: Dividing the markets into segments of customers

Target marketing: Which segments to go after

Choice of a value proposition i.e. the set of benefits or values a company promises to deliver to customers to satisfy their needs

De-marketing: Marketing to reduce demand temporarily or permanently; the aim is not to destroy demand but to reduce or shift it.

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Marketing Management Concepts

Production concept

Product concept

Selling concept

Marketing concept

Societal concept

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Production concept

the idea that consumers will favor products that are available or highly affordable

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Product Concept

the idea that consumers will favor products that offer the most quality, performance, and features for which the organization should therefore devote its energy to making continuous improvements

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Selling Concept

the idea that consumers will not buy enough of the firms products unless it undertakes a large scale selling and promotion effort

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Marketing Concept

the idea that consumers will not buy enough of the firms products unless it undertakes a large scale selling and promotion effort

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Societal Concept

is the idea that a company should make good marketing decisions by considering consumers wants, the companys requirements, consumers long-term interests, and societys long-run interests

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Example of Societal Concept

Anheuser-Busch

Persuasive message aimed at Reducing the incidence of underage drinking

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Creating Customers

Identifying customer needs Designing goods and services that meet those

needs Communicating information about those goods

and services to prospective buyers Making the goods or services available at times

and places that meet customers needs Pricing goods and services to reflect costs,

competition, and customers ability to buy Providing for the necessary service and follow-up

to ensure customer satisfaction after the purchase

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Examples to create customers

Creating customers that want to stay with you is all about identifying needs, providing goods and services that meet those needs, pricing, and follow-up service.

Can you think of examples? How would you get customers to stay with you in

your business?

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Customer Relationship Management (CRM)

Customer relationship management is the overall process of building and maintaining profitable customer relationships by delivering superior value and satisfaction

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Customer Value and Satisfaction

Customer perceived value is the difference between total customer value and total customer cost

Customer satisfaction is the extent to which a products perceived performance matches a buyers expectations

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Customer Relationship Levels & Tools

Basic relationships

Full relationships

Frequency marketing programs

Club marketing programs

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Changing Nature of Customer Relationships

Relating with more carefully selected customers uses selective relationship management to target fewer, more profitable customers

Relating for the long term uses customer relationship management to retain current customers and build profitable, long-term relationships

Relating directly uses direct marketing tools (telephone, mail order, kiosks, Internet) to make direct connections with customers

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Partner Relationships

Partner relationship management refers to working closely with partners in other company departments and outside the company to jointly bring greater value to customers

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Partner Relationship Management

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

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Partner Relationship Management

Supply chain is a channel that stretches from raw materials to components to final products to final buyers

Supply management Strategic partners Strategic alliances

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Capturing Value from Customers

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 customers purchasing that a company gets in its product categories

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Capturing Value from Customers - Equity

Customer equity is the total combined customer lifetime values of all of the companys customers

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

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Major Shifts

Digital age

Globalization

Ethics and social responsibility

Not-for-profit marketing

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The New Digital Age

Globalization

Urbanization

Internetcreates marketplaces and marketspaces

Information

Entertainment

Communication

Think Globally Act Locally ( concept of Glocal)

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The New Digital Age & Internet

Recent technology has had a major impact on the ways marketers connect with and bring value to their customers

Market research - Learning about and tracking customers

Create new customized products

Distribution

Communication Video conferencing Online data services

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The Technology Revolution in Marketing

Technology: Application to business of knowledge based on scientific discoveries, inventions, and innovations

Technological advances are revolutionizing marketing WSJ articles

Interactive marketing: refers to buyer-seller communications in which the customer controls the amount and type of information received from a marketer

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The Internet as a Marketing Tool

The Internet is an all-purpose global network composed of more than 50,000 different networks around the globe that allows those with access to a computer send and receive images and text anywhere

World Wide Web is an interlinked collection of graphically rich resources within the larger Internet

Broadband technology is extremely high speed, always-on Internet connection

Wireless Internet connections for laptops and PDAs

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Using the Web as a Marketing Tool

How Marketers Use the Web Interactive brochures Online newsletters Virtual storefronts Information clearinghouses Customer service tools

What other ways can you think of?

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From Transaction-Based Marketing to Relationship Marketing

Transactionbased marketing (Simple exchanges)

Relationship marketing Lifetime value of a customer

Converting new customers to advocates

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Relationship Marketing

Holiday Inn building a relationship beyond selling a place to sleep

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One to One Marketing

Customized marketing program designed to build long-term relationships with individual customers.

Identifying a firms best customers and increasing their loyalty.

Sbarro Pizza chain reaches teens with LidRock.

Sip and Spin with personalized entertainment

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Non-Traditional Marketing

Person Marketing

Place Marketing

Cause Marketing

Event Marketing

Organization Marketing

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Person Marketing

Efforts to cultivate the attention, interest, and preferences of a target market toward a celebrity or authority figure

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Place Marketing

Attempt to attract people and organizations to a particular geographic area.

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Cause Marketing

Identification and marketing of a social issue, cause, or idea to selected target markets

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Event Marketing

The marketing of sporting, cultural, and charitable activities to selected target markets

Visa, one of many sponsors of the Summer 2004 Olympic Games

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Organization Marketing

Involves attempts to influence others to accept the goals of, receive the services of, or contribute in some way to an organization.

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2. Overview of Marketing_Draft_Final

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