8/14/2019 Marketing Management 4 August

1/29

MARKETINGMANAGEMENT - I

BY:

Dr SADAF SIRAJ

8/14/2019 Marketing Management 4 August

2/29

ACCORDING TO AMERICAN MARKETINGASSOCIATION:

Marketing is an organizational function

& a set of processes for creating,communicating & delivering value tocustomers and for managing customerrelationships in ways that benefit the

organization and its stakeholders

8/14/2019 Marketing Management 4 August

3/29

Communicatingvalue

Deliveringvalue

Customer

Creating value

Marketing

Organization

Stakeholders

8/14/2019 Marketing Management 4 August

4/29

CORE CONCEPTS OF MARKETING:

EXCHANGE

TRANSACTION

NEEDS, WANTS & DEMANDS

OFFERINGS & BRANDS

VALUE & SATISFACTION

SEGMENTATION

TARGET MARKETS

POSITIONING

MARKETING CHANNELS

SUPPLY CHAIN

COMPETITION

MARKETING ENVIRONMENT

8/14/2019 Marketing Management 4 August

5/29

EXCHANGE, TRANSACTION

Exchange is the Process of obtaining adesired product from someone by offeringsomething in return

There are at least two parties Something ofvalue

Ability to communicate and deliver

Freedom to accept or reject

Desirabilityto deal

Transaction is the trade of values betweentwo or more parties

8/14/2019 Marketing Management 4 August

6/29

NEEDS

basic human requirements

WANTS

specific ways of satisfyingthe need

DEMANDS

wants backed by ability topay

StatedNeedsReal Needs

UnstatedNeedsDelight Needs

NEEDS, WANTS & DEMANDS

8/14/2019 Marketing Management 4 August

7/29

SEGMENTATIONIdentification & Profiling of distinctgroup of buyers with varyingpreferences

TARGET MARKETSegment presenting the greatestopportunity

POSITIONINGCreation of distinct image in theminds of consumer

SEGMENTATION, TARGET MARKET &POSITIONING

8/14/2019 Marketing Management 4 August

8/29

OFFERINGS & BRANDS

OFFERINGS - Physical form of theintangible value propositions or set of

benefits

BRAND refers to a name, term, symbolor design or a combination of them

intended to differentiate the products &services ofseller from competition

8/14/2019 Marketing Management 4 August

9/29

VALUE & SATISFACTION

VALUE - Perceived tangible andintangible benefits and costs to

consumers

SATISFACTION - Persons comparativejudgments resulting from a products

perceivedperformance in relation to hisexpectations

8/14/2019 Marketing Management 4 August

10/29

MARKETING CHANNELS

COMMUNICATION CHANNELS - Deliver and Receivemessages from the target buyers e.g. Newspapers,television, radio, magazines, telephone, internet

etc.

DISTRIBUTION CHANNELS Display, Sell or Deliverphysical product/ service to buyers e.g. distributors,retailers, wholesalers etc.

SERVICE CHANNELS Carry out transactions withpotential buyers e.g. warehouse, transportation,bank etc

8/14/2019 Marketing Management 4 August

11/29

SUPPLY CHAIN & COMPETITION

SUPPLY CHAIN - Channel stretchingfrom raw material to components to final

products delivered to final buyers.

COMPETITION - All the actual andpotential rival offerings and substitutes

that a buyer might consider

8/14/2019 Marketing Management 4 August

12/29

MARKETING ENVIRONMENT

TASK ENVIRONMENT Immediate actorsin producing, distributing and promotingthe offering

BROAD ENVIRONMENT DEMOGRAPHIC

ECONOMIC

PHYSICAL TECHNOLOGICAL

POLITICO-LEGAL

SOCIO-CULTURAL

8/14/2019 Marketing Management 4 August

13/29

MARKETING MIX

THE 4 PS OF MARKETING

8/14/2019 Marketing Management 4 August

14/29

PRODUCTPRODUCT VARIETY

QUALITY

DESIGN

FEATURES

BRAND NAME

PACKAGING

SIZE

WARRANTIES

RETURNS

PRICE

LIST PRICE

DISCOUNTS

PAYMENT

PERIOD

CREDIT TERMS

PROMOTION

SALES PROMOTION

ADVERTISING

SALES FORCE

PUBLIC RELATIONS

DIRECT

MARKETING

PLACE

CHANNELS

COVERAGE

ASSORTMENT

LOCATION

INVENTORY

TRANSPORT

TARGET MARKET

MARKETING MIX

8/14/2019 Marketing Management 4 August

15/29

THE 4 AS

PROMOTION

PLACE

PRICE

PRODUCT ACCEPTABILITY

AFFORDABILITY

ACCESSABILITY

AWARENESS

8/14/2019 Marketing Management 4 August

16/29

THE 7 PS OF MARKETING

PRODUCT

PRICE

PLACEPROMOTION

PROCESS

PERSONEL

PHYSICAL EVIDENCE

8/14/2019 Marketing Management 4 August

17/29

THE EVOLUTION OF MARKETINGCONCEPT

8/14/2019 Marketing Management 4 August

18/29

PHILOSOPHY

HOW ?

OBJECTIVEHigh Production Efficiency, Low Cost

& Mass Distribution

Focus on Production and DistributionEfficiency

PRODUCTION CONCEPT

Products widely available ataffordable prices sell themselves

8/14/2019 Marketing Management 4 August

19/29

PHILOSOPHY

HOW ?

OBJECTIVE Produce superior quality product andimprove over time

Focus on innovation andimprovement

PRODUCT CONCEPT

Innovative, superior qualityproducts are preferred by

consumers

8/14/2019 Marketing Management 4 August

20/29

PHILOSOPHY

HOW ?

OBJECTIVE

Product dont necessarily sellthemselves. Customers must be

convinced to buy them

Maximize Sales revenues

Aggressive Promotion to createDemand

SELLING CONCEPT

8/14/2019 Marketing Management 4 August

21/29

PHILOSOPHY

HOW ?

OBJECTIVE

Customer centered ; Sense &Respond

Creating, delivering &communicating superior

customer value

Focus on Total Marketing

MARKETING CONCEPT

8/14/2019 Marketing Management 4 August

22/29

HOLISTIC MARKETING

EVERYTHING MATTERS- Emphasis on Broad &Integrative perspective

Development, Design & Implementation of

marketing programs, processes & activities

Recognizes their interdependencies, scope andcomplexities

4 Components- Relationship Marketing, IntegratedMarketing, Internal marketing & SocialResponsibility Marketing

8/14/2019 Marketing Management 4 August

23/29

ETHICS

ENVIRONMENT& LEGAL

COMMUNITY

CUSTOMER

CHANNEL

PARTNER

COMMUNICATIONS

PRODUCT & SERVICES

CHANNELS

MARKETING DEPT.

SENIOR MANAGEMENT

OTHER DEPT

HOLISTIC

MARKETING

RELATIONSHIPMARKETINGSOCIETALMARKETING

INTERNALMARKETING

INTEGRATEDMARKETING

8/14/2019 Marketing Management 4 August

24/29

PHILOSOPHY

HOW ?

OBJECTIVE

Build mutually satisfying, longterm relationship with

Customers, Channels & Partners

To build unique marketingnetwork

Focus on CRM as well as PRM

RELATIONSHIP MARKETING

8/14/2019 Marketing Management 4 August

25/29

PHILOSOPHY

HOW ?

OBJECTIVE

Devise & assemble fullyintegrated marketing

activities

To Create, Communicate &Deliver Value to customers

Coordination of Marketingactivities to maximize the

joint effects

INTEGRATED MARKETING

8/14/2019 Marketing Management 4 August

26/29

PHILOSOPHY

HOW ?

OBJECTIVE

Broader concerns Social,Ethical, Environmental and

Legal

Build Social & Ethicalconsiderations into their

marketing practices

Balance & Juggle objectives likeCompany Profits, Consumer

Satisfaction & Public Interest

SOCIAL RESPOSIBILITY MARKETING

8/14/2019 Marketing Management 4 August

27/29

PHILOSOPHY

HOW ?

OBJECTIVE

Collaboration & Team workwithin the organization

Hiring, Training & Motivatingable employees to serve

customers well

Synchronization of manpowerto achieve common goals

INTERNAL MARKETING

8/14/2019 Marketing Management 4 August

28/29

MARKETING MYOPIA

Narrow-minded approach to a marketingsituation where only short-range goals are

considered or where the marketing focuses ononly one aspect out of many possiblemarketing attributes.

Too much product orientation rather thancustomer orientation

http://upload.wikimedia.org/wikipedia/commons/thumb/b/b2/Spectacles_(PSF).png/800px-Spectacles_(PSF).png

8/14/2019 Marketing Management 4 August

29/29

MARKETING MYOPIA (cont)

Signs of being myopic:

Belief that growth is assured by an expanding& more affluent population

Belief that there is no competitive substitute forindustrys major product

Too much faith in mass production

Preoccupation with the product