Marketing management
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Introduction to Marketing Management
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Basic concept of marketing management, sales and economy
Transcript of Marketing management
Introduction to Marketing Management
22
What is Marketing…??What is Marketing…??
Selling?
Advertising?
Promotions?
Making products available in stores?
Maintaining inventories?
All of the above, plus much more!
Selling?
Advertising?
Promotions?
Making products available in stores?
Maintaining inventories?
All of the above, plus much more!
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Marketing = ?Marketing = ?
Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others.
-Philip Kotler
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Marketing Management= ?Marketing Management= ?
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.
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 SystemSimple Marketing System
Industry(a collection
of sellers)
Market(a collection
of Buyers)
Goods/services
Money
Communication
Information
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Marketing = ?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
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
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The 4 Ps & 4CsThe 4 Ps & 4Cs
MarketingMix
Product
Price Promotion
Place
CustomerSolution
CustomerCost
Communication
Convenience
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Difference Between - Sales & Marketing ?
Difference Between - Sales & Marketing ?
Salestrying to get the customer to want what the company produces
Marketing trying to get the company produce what the customer wants
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Scope – What do we marketScope – What do we market
Goods Services Events Experiences Personalities Place Organizations Properties Information Ideas and concepts
Goods Services Events Experiences Personalities Place Organizations Properties Information Ideas and concepts
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Core Concepts of MarketingCore Concepts of Marketing
Based on : Needs, Wants, Desires / demand
Products, Utility, Value & Satisfaction
Exchange, Transactions & Relationships
Markets, Marketing & Marketers.
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, TransactionRelationships
Products
Core Concepts of MarketingCore Concepts of Marketing
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Core Concepts of MarketingCore 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
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In order to understand Marketing let us begin with the Marketing Triangle
In order to understand Marketing let us begin with the Marketing Triangle
Customers
CompetitionCompany
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Who is a Customer ??Who is a Customer ??
Anyone who is in the market looking at a product /
service for attention, acquisition, use or consumption
that satisfies a want or a need
CUSTOMER IS . . . . .
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Customer –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
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
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How Do Consumers Choose Among Products & Services?
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
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Customers - Problem SolutionCustomers - 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
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
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Customer looks for ValueCustomer looks for Value
Value = Benefit / Cost
Benefit = Functional Benefit + Emotional Benefit
Cost = Monetary Cost + Time Cost + Energy Cost + Psychic Cost
Value = Benefit / Cost
Benefit = Functional Benefit + Emotional Benefit
Cost = Monetary Cost + Time Cost + Energy Cost + Psychic Cost
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Strategic MarketingStrategic 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
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Strategic PlanningStrategic 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
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
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The Strategic-Planning, Implementation, and Control ProcessThe Strategic-Planning, Implementation, and Control Process
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Business Strategic-Planning ProcessBusiness Strategic-Planning Process
External environment
(Opportunity &
Threat analysis)
Internal Environment
(Strength/ Weakness analysis)
Goal FormulationBusiness Mission
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Strategy FormulationStrategy 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 PlanThe Marketing Plan
A written document that acts as a guidebook of marketing activities for the marketing manager
A written document that acts as a guidebook of marketing activities for the marketing manager
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CONTENTS of MARKETING PLAN CONTENTS of MARKETING PLAN 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
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The Marketing ProcessThe Marketing Process
Business Mission Stateme
nt
Objectives
Situation or SWOT Analysis
Implementation Evaluation,
Control
Target Market Strategy
Marketing Strategy
Product
Promotion
Place/Distribution
Price
Marketing Mix
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Why a product like radio declined and now once again
emerging as an entertainment medium ?
Why a product like radio declined and now once again
emerging as an entertainment medium ?
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What Were the Drivers of This Change ?What Were the Drivers of This Change ?
Technology ?
Government policy ?
Other media substitutes ?
Technology ?
Government policy ?
Other media substitutes ?
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Why Market Leaders Suffered ?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.
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 Company’s Marketing Strategy
Factors Influencing Company’s Marketing Strategy
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DemographicsDemographics
SocialChangeSocial
Change
EconomicConditionsEconomicConditions
Political & Legal FactorsPolitical &
Legal Factors
TechnologyTechnology
CompetitionCompetition
EnvironmentalScanning
EnvironmentalScanning
Target Market
ProductDistributionPromotion
Price
ProductDistributionPromotion
Price
External Environment is not controllable
External Environment is not controllable Ever-Changing
MarketplaceEver-Changing
Marketplace
External Marketing EnvironmentExternal Marketing Environment
Physical / Natural
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The macro-environmentThe macro-environment
is the assessment of the external forces that act upon the firm and its customers, that create threats & opportunities
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P r o d u c tP r o d u c tP r o d u c tP 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 . . . . . Product is . . . . .
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Types of ProductsTypes of Products
ConsumerProducts
IndustrialProducts
PRODUCTS
Services
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Product Life CycleProduct Life Cycle
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Product Items, Lines, and MixesProduct Items, Lines, and Mixes
Product ItemProduct Item
Product LineProduct Line
Product MixProduct Mix
A specific version of a product that can be designated as a distinct offering among an organization’s products.
A specific version of a product that can be designated as a distinct offering among an organization’s products.
A group of closely-related product items.
A group of closely-related product items.
All products that an organization sells.
All products that an organization sells.
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Gillette’s Product Lines & MixGillette’s Product Lines & Mix
Blades and Writingrazors Toiletries instruments Lighters
Fusion – 5 bladeMach 3 TurboMach 3 Series Paper Mate CricketSensor Adorn Flair S.T. Dupont Trac II Toni S.T. DupontAtra Right GuardSwivel Silkience Double-Edge Soft and Dri Lady Gillette Foamy Super Speed Dry LookTwin Injector Dry Idea Techmatic Brush Plus
Width of the product mixWidth of the product mix
De
pth
of
the
pro
du
ct
line
sD
ep
th o
f th
e p
rod
uc
t lin
es
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Product MixProduct 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
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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Product PlanningProduct Planning
It is a systematic decision making relating to all aspects of the development and management of a firm’s products, including branding and packaging that satisfy consumers.
It is a systematic decision making relating to all aspects of the development and management of a firm’s products, including branding and packaging that satisfy consumers.
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Product planning processProduct planning process
• New product ideas
• Screening
• Concept Development and testing
• Business Analysis
• Product Development Programme
• Test Marketing
• Commercialization
• New product ideas
• Screening
• Concept Development and testing
• Business Analysis
• Product Development Programme
• Test Marketing
• Commercialization
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Branding & PackagingBranding & Packaging
Brand- all identifying marks such as trade names, trade marks, trdae symbols, picture, package design, distinctive colouring or lettering with or without attractive slogan.
Packaging- An act of designing and producing the package for product.
Brand- all identifying marks such as trade names, trade marks, trdae symbols, picture, package design, distinctive colouring or lettering with or without attractive slogan.
Packaging- An act of designing and producing the package for product.
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The Marketing MixThe 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.
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.
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The “8Ps” of Integrated Service Management vs. the Traditional “4Ps”
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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Promotion mixPromotion mix
It is a set of controllable variables like personal selling, advertising, publicity, sales promotion including dealers aids and consumers aids.
It is a set of controllable variables like personal selling, advertising, publicity, sales promotion including dealers aids and consumers aids.
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The Give and Get of MarketingThe Give and Get of Marketing
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Great Words on MarketingGreat Words on Marketing
1. “The purpose of a company is ‘to create a customer…The only profit center is the customer.’”
2. “A business has two—and only two—basic functions: marketing and innovation. Marketing and innovation produce results: all the rest are costs.”
3. “The aim of marketing is to make selling unnecessary.”
4. “While great devices are invented in the Laboratory, great products are invented in the Marketing department.”
5. “Marketing is too important to be left to the marketing department.”
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Stages of Customer InteractionStages of Customer Interaction
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What Changed in Marketing…What Changed in Marketing…
• Organize by product units• Focus on profitable transactions• Look primarily at financial
scorecard• Focus on shareholders• Marketing does the marketing• Build brands through advertising• Focus on customer acquisition• No customer satisfaction
measurement• Over-promise, under-deliver
• Organize by product units• Focus on profitable transactions• Look primarily at financial
scorecard• Focus on shareholders• Marketing does the marketing• Build brands through advertising• Focus on customer acquisition• No customer satisfaction
measurement• 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 and
retention rate• Under-promise, over-deliver
Old Economy New Economy
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So what will the differentiators be :So what will the differentiators be :So what will the differentiators be :So what will the differentiators be :
• Technology ?
• Brand ?
