Introduction to Marketing&Prodct Planning

8/3/2019 Introduction to Marketing&Prodct Planning

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INTRODUCTION

Marketing Management


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What is Marketing??

Selling?

Advertising?

Promotions?

Making products available in stores?Maintaining inventories?

All of the above, plus much more!


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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


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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.


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Simple Marketing System

Industry(a collection

of sellers)

Market(a collection

of Buyers)

Goods/services

Money

Communication

Information


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Marketing = ?

Marketing is the sum of all activities that take you to asales 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 Ps

product

price

place

promotion


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The 4 Ps &4Cs

Marketing

Mix

Product

Price Promotion

Place

Customer

Solution

Customer

Cost

Communication

Convenience


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Difference Between - Sales & Marketing ?

Salestryingto get the customer to want what the

companyproduces

Marketingtrying to get the company produce what the

customerwants


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Scope What do we market

Goods

Services

Events

Experiences Personalities

Place

Organizations

Properties Information

Ideas and concepts


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Core Concepts of Marketing

Based on :

Needs, Wants, Desires / demand

Products, Utility, Value & Satisfaction

Exchange, Transactions & Relationships

Markets, Marketing & Marketers.


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Needs, wantsdemands

Markets Marketing &

Marketers

Utility, Value &Satisfaction

Xchange, Transaction

Relationships

Products



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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


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Who is a Customer ??

Anyone who is in the market looking at a product /

service for attention, acquisition, use or consumption

thatsatisfiesa want or a need

CUSTOMER IS . . . . .


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Customer

CUSTOMER has needs, wants, demands anddesires

Understanding these needs is starting point of theentire marketing

These needs, wants arise within a frameworkor an ecosystem

Understanding both the needs and the ecosystem isthe starting point of a long term relationship


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How Do Consumers Choose AmongProducts & 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 performanceand expectations.

Performance > Expectations => Satisfaction

Performance < Expectations => Dissatisfaction


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Customers - Problem Solution

As a priority , we must bring to our customersWHAT THEY NEED

We must be in a position to UNDERSTANDtheir

problems

Or in a new situation to give them a chance to AVOIDthe problems


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Customer looks for Value

Value = Benefit / Cost

Benefit = FunctionalBenefit + EmotionalBenefit

Cost = Monetary Cost + Time Cost +Energy Cost + Psychic Cost


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Strategic Marketing

Strategic marketing management is concerned with

how we will create value for the customer

Asks two main questions

What is the organizations main activity at aparticular time?Customer Value

What are its primary goals and how will these beachieved? how will this valuebe delivered


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Strategic Planning

Strategic Planning is the managerial process ofcreating and maintaining a fit between theorganizations objectives and resources and the

evolving market opportunities.

Also called Strategic Management Process

All organizations have this

Can be Formal or Informal


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The Strategic-Planning, Implementation,and Control Process


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Business Strategic-Planning Process

External environment

(Opportunity &

Threat analysis)

Internal Environment

(Strength/ Weakness analysis)

Goal FormulationBusinessMission


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Strategy Formulation

Environmental Analysis

Internal AnalysisCompetitorCustomerSupplier

RegulatorySocial/ Political

Technology Know-HowManufacturing Know-How

Marketing Know-HowDistribution Know-How

Logistics

Strength & Weaknesses

Identity Core Competencies

Opportunities & Threats

Identify opportunity

Fit internal Competencies with external opportunities

Firm Strategies


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The Marketing Plan

A written document that acts as a guidebook ofmarketing activities for the marketing manager


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CONTENTS of MARKETING PLANBusiness Mission Statement

ObjectivesSituation Analysis (SWOT)

Marketing Strategy

Target Market Strategy

Marketing Mix Positioning

Product

Promotion

Price

Place Distribution People

Process

Implementation, Evaluation and Control

h k i


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The Marketing Process

BusinessMission

Statement

Objectives

Situationor SWOTAnalysis

Implementation

Evaluation, Control

Target MarketStrategy

Marketing Strategy

Product

Promotion

Place/Distribution

Price

Marketing Mix


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Marketing Environment


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Why a product like radio declined

and now once again emerging as

an entertainment medium ?


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Why Market Leaders Suffered ?

HMT vs. Titan

HLL vs. Nirma

Bajaj vs. Honda

Dot.com 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.


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Factors

Influencing

CompanysMarketing

Strategy


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Demographics

SocialChange

Economic

Conditions

Political &Legal Factors

Technology

Competition

EnvironmentalScanning

Target Market

ProductDistributionPromotion

Price

External Environmentis not controllable Ever-Changing

Marketplace

External Marketing Environment

Physical / Natural


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The macro-environment

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


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P r o d u c t


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Anything that is offered to the market for

attention, acquisition, use or consumption that

satisfies a want or a need

Product is . . . . .


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Types of Products

ConsumerProducts

IndustrialProducts

PRODUCTS

Services


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Product Items, Lines, and Mixes

Product Item

Product Line

Product Mix

A specific version of a productthat can be designated as adistinct offering among anorganizations products.

A group of closely-relatedproduct items.

All products that anorganization sells.


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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


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Gillettes Product Lines & Mix

Blades and Writingrazors Toiletries instruments Lighters

Fusion 5 bladeMach 3 TurboMach 3 Series Paper Mate CricketSensor Adorn Flair S.T. DupontTrac II Toni S.T. DupontAtra Right GuardSwivel SilkienceDouble-Edge Soft and DriLady Gillette FoamySuper Speed Dry LookTwin Injector Dry IdeaTechmatic Brush Plus

Width of the product mix

Deptho

ftheproductlines

What is a Service? Defining


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What is a Service? Definingthe 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


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Some Industries - Service Sector

Banking, stock broking

Lodging

Restaurants, bars,

cateringInsurance

News and entertainment

Transportation (freight andpassenger)

Health care

Education

Wholesaling and retailing

Laundries, dry-cleaningRepair and maintenance

Professional (e.g., law,architecture, consulting)


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Classification of Services

Pure Tangible Product

Materials / Components

Computers

Major Product withMinor Services

Product = Service

Major Service with

Minor ProductBusiness Hotels

Good Transportation

Banking

Pure Intangible

Service


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IntangibilityServices 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 notransfer of title

Major Characteristic of Services

Th M k ti Mi


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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 ofthe firms operations that have the potential to affect

the relationshipwith customers.

The 8Ps of Integrated Service


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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


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The Give and Get of Marketing

Great Words on Marketing


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Great Words on Marketing

1. The purpose of a company is to create a customerThe onlyprofit center is the customer.

2. A business has twoand only twobasic functions: marketingand innovation. Marketing and innovation produce results: all therest are costs.

3. The aim of marketing is to make selling unnecessary.

4. While great devices are invented in the Laboratory, greatproducts are invented in the Marketing department.

5. Marketing is too important to be left to the marketingdepartment.


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Drivers of Customer Satisfaction

Many aspects of the firms 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


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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 detailedunderstanding of consumers, their needs andwants.

Much happens beforeand afterthe sale to affect

customer satisfaction

S f C I i


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Stages of Customer Interaction

Wh t Ch d i M k ti


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What Changed in Marketing

Organize by product units

Focus on profitable transactions

Look primarily at financialscorecard

Focus on shareholders

Marketing does the marketing

Build brands through advertising

Focus on customer acquisition

No customer satisfactionmeasurement

Over-promise, under-deliver

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 andretention rate

Under-promise, over-deliver

Old Economy New Economy


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Are Banks truly

marketing-savvy andcustomer - centric?


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Myth 1 The larger the range of products, the more

customer-centric I am.

Mythbuster The range of products hasemerged from being

competition-centric.


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Myth 2 Better technology (read CRM) leads to

better customer service.

Mythbuster Technology

alone does not deliver,

helps people do.


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Myth 3Launch 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


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Mythbuster Customersare not only presentwhere competition is.

Myth 4 The only way to get a customer is from

competition.


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Myth 5 Just advertise and - You will sell.

Mythbuster Advertising will only sell,

Not retain customers.


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Myth 6 No difference between marketing & selling

MythbusterSelling focuses on the needs of theseller; marketing on the needs of the buyer.


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Myth 7 In the absence of relationshipstrust buildsfinancial brands

Mythbuster Trust is not a differentiator at all

it is the very minimum that the customer expects!!


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So what will the differentiators be :

Technology ?

Brand ?


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The real differentiator of

customer centricity in a

commoditised world of financial

products -

Customer Service !


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Thank You

[email protected]

Introduction to Marketing&Prodct Planning

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