Principle of Marketing

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Principle of Marketing

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  • 1. Marketing and ManagementSyllabus Principle of marketing Strategic marketing planning The MBO system Product promotion Market segmentation Positioning and product life cycle Branding and Pricing Purchasing Organizational structure Personal management Inventory Management

2. Principles of Marketing 3. What is Marketing?- A set of processes for creating,communicating, and delivering value tocustomers and for managing customerrelationships in ways that benefit theorganization and its stakeholder.- It is the art and science of choosing targetmarkets and building profitablerelationships with them. 4. Meaning? Processes traditionally refers to 4Ps, nowinclude after sales supports, customer services. Creating and Delivering value addresscustomer needs and wants, and create highcustomer satisfaction. In business, do it in a way that is mutuallybeneficial in the long run (so focus on long-termprofits instead of short-term profits). 5. Many things can be marketed GoodsPlaces ServicesEvents ExperiencePersonsOrganizations PropertiesIdeas Information 6. Importance of customersatisfaction It is important to consistently deliver product andservice that create values for customers. Brand equity and customer loyalty are built in thisway. This can be explained in terms of theory ofuncertainty. Examples. My Spa experience at Holt Renfrew,Auto repair shop. 7. Scope of MarketingMarketing means adopting a ccuussttoommeerrffooccuuss for the organization; keeping thecustomers needs in mind all the time. Itmay not always mean making animmediate sale.What is Marketing? 8. Its All About Satisfaction The ultimate goal is customer satisfaction, whichleads to long-term profitability and success Whenever things of value are being exchanged,marketing principles apply: consider exactly whatis being exchanged (its give and get) Marketing today is applied to virtually all aspectsof a companys operation that has the potential toinfluence customer satisfaction Marketing principles apply in all organizations 9. and Creating Value Successful marketing involves meeting orexceeding customer expectations When expectations are exceeded, customersatisfaction or delight results Marketing is very much about adding valuethrough a broadly-defined value proposition Value may be created by marketers in manydifferent ways: value is not only about price 10. Marketing Everywhere!Understanding marketing helps you when: You buy a new pair of shoes, or go to thegrocery store. You open a new bank account. You apply for a job. You watch television. ..What is Marketing? 11. The Marketing Mix The conventional view of the marketing mixconsisted of four components: product, price,distribution and promotion. Generally acknowledged that this is too narrowtoday; now includes service, processes,technology. Marketers today are focused on virtually allaspects of the firms operations that have thepotential to affect the relationship with customers. 12. The Focus of Marketing Marketing involves the exchange of things ofvalue with various target groups. Much of marketings focus today is on thecreation of value for customers; those who arebest at creating value earn customer loyalty. Ultimately, successful marketers develop a closerelationship with customers and others. This is along-term strategy that guarantees the futuresuccess of the company. 13. Drivers of Customer Satisfaction Many aspects of the firms value propositioncontribute to customer satisfaction: The emotional connection with customers Interaction with the firm and it employees The technical performance of the firm Support services and systems The core product or service offered Ability to add value and to differentiate as a firmfocuses more on the top levels 14. Marketers and Markets Marketers are focused on stimulating exchangeswith customers who make up markets B2C orB2B. The market is comprised of people who play aseries of roles: decision makers, consumers,purchasers, and influencers. It is essential that marketers have a detailedunderstanding of consumers, their needs andwants. Much happens before and after the sale to affectcustomer satisfaction 15. Evolution of Marketing Thinking Marketing has evolved through five stages: in the product-focus stage, emphasis is on producingmore and better products at the sales-orientation stage, focus shift to selling,moving product from warehouse to customer at the customer-interest stage, emphasis shifts to thecustomer and the satisfaction of needs the customer-service stage places emphasis oncustomer service as well as good products the customer-relationship stage sees a much longer-termfocus on building relationships with customers 16. Figure 1-6:Marketing Thinking Drives the Value Proposition 17. Customer-Relationship Thinking The customer-relationship view ofmarketing requires some new thinking: It is very much a long-term strategy Requires that management take thecustomers view The value proposition must be defined verybroadly Different measures of success are needed 18. The New View of Marketing The marketing emphasis today is onkeeping existing customers as well asgetting new ones Four principles guide marketing: retention: keeping them coming back referrals: encourage them to recommend us relationships: build an emotional connection recovery: solve problems as they arise 19. The Modern Marketing Concept All planning and operations are designed to create long-termcustomer satisfaction: everyone in the firm isinvolved in marketing All of the marketing activities of the organization shouldbe consistently designed and delivered, and should becoordinated across departments All of the organizations planning and operations arecustomer-oriented, meeting customer needs and achievingprofitability All activities are focused on the long-term and designed tocreate an emotional connection with customers 20. Marketing challenges Technological advances, rapid globalizationand continuing social and economic shiftsare causing marketplace changes. Major marketing developments can begrouped under the theme of connectingvia technology ( advance in computers,telecommunications, video conference etc.are major forces.) 21. The Purpose of a BusinessIs to Create and Retain theRight Customer 22. TThhee FFoouurr PPssMarketingMixProductPrice PromotionPlace(Distribution) 23. The Promotional Mix Advertising Sales promotion Packaging Personal selling Public relations 24. Defining MarketingMarketing is a societal process by whichindividuals and groups obtain what theyneed and want through creating,offering, and exchanging products andvalue with others. 25. Core Marketing ConceptsNeeds, wants,and demandsProductsValue,satisfaction,and qualityMarketsExchange,transactions,and relationships 26. Need, Wants, Demands Need. A human need is a state of felt deprivation.Examples include the need for food, clothing,warmth and safety. Wants. Wants are how people communicate theirneeds. A hungry person may want a hamburger,noodles, or cheese and bread. Demands. When backed by buying power, wantsbecome demands. 27. ProductA product is anything that can be offered to satisfy aneed or a want. 28. Value, Satisfaction, and Quality Customer value is the difference between thebenefits that the customer gains from owning and/orusing a product and the costs of obtaining theproduct. Customer satisfaction depends on a productsperceived performance in delivering value relative toa buyers expectations. Quality begins with customer needs and ends withcustomer satisfaction. 29. Satisfaction and Customer Behavior633086525107060504030201001 2 31 = Very Satisfied, 7=Very Dissatisfied* Even though 3 is still a "positive"score on the above 7 point scale, fewcustomers giving that rating will returnPercentDefinitely RecommendDefinitely Return 30. Why Satisfaction May Not Lead ToCustomer Loyalty Some customers never return to an area butthey can still recommend Some customers shop for the best price -differentiate your product Some customers like to have different purchaseexperiences like to stay or dine at differentplaces 31. Why Managers Should Be ConcernedAbout Customer Loyalty Customer loyalty leads to increased profit Customer loyalty leads to increasedpartnership Lower marketing and sales costs 32. Exchange, Transactions, andRelationships Exchange is the act of obtaining a desired objectfrom someone by offering something in return. A transaction is marketings unit of measurementand consists of a trade of values between twoparties. Relationship marketing builds relationships withvalued customers, distributors, dealers, andsuppliers by promising and consistently deliveringhigh-quality products, good service, and fairprices. 33. MarketsA market is a set of actual and potential buyersA market is a set of actual and potential buyerswho might transact with a seller.who might transact with a seller. 34. Marketing and Sales ConceptsContrastedStartingPoint Focus Means EndsFactory ExistingProductsSellingandPromotingProfitsthroughVolumeTThhee SSeelllliinngg CCoonncceeppttMarket CustomerNeedsIntegratedMarketingProfitsthroughSatisfactionTThhee MMaarrkkeettiinngg CCoonncceepptt 35. Marketing ManagementPhilosophiesProduction ConceptProduct ConceptSelling ConceptMarketing ConceptSocietal Marketing ConceptConsumers favor products that areavailable and highly affordable.Improve production and distribution.Consumers favor products that offerthe most quality, performance, andinnovative features.Consumers will buy products only ifthe company promotes/ sells theseproducts.Focuses on needs/ wants of targetmarkets & delivering satisfactionbetter than competitors.Focuses on needs/ wants of targetmarkets & delivering superior value. 36. Marketings Future It (marketing) encompasses the entirebusiness. It is the whole business seen fromthe point of view of the final result, that is,from the customers point of view. Peter Drucker Marketing has becom