marketing concept 3 (1)

VALUE AND SATISFACTION • Value = Perceived(Tangible benefits + intangible benefits)

Cost

• Dairy Milk = Perceived (Good chocolate + nostalgic brand)

VFM Price

• Bournville = Perceived (Better chocolate + not ordinary Dairy Milk)

Premium Price

H ·K ·T 2

VALUE AND SATISFACTION • Satisfaction = Tangible (Ranking) + Intangible (Ranking) Price

H ·K ·T

Below

•Dissatisfaction

Expectation

•Satisfaction

Above

•Delight

3

MARKETING CHANNELS – THE SUPPLY CHAIN

• The Supply Chain is the longest chain stretching from raw materials to components to final products (buyers)

• It is a „value-delivery system‟

• Iron Ore Steel Engine components Engines Multiple cars [Buyers]

• Each firm gets a different piece of this chain.

• So, sometimes, companies try to move up (upstream – towards raw material) or down (downstream – towards finished product) in this chain.

• The “VALUE CHAIN”.

H ·K ·T 4

COMPETITION AND SUBSTITUTION

• Coffee – Nescafe , BRU, Mr. Bean

• Products - Tea, Soft Drinks, Chaas,

Health Drinks, healthier drinks

• Services - CCD

H ·K ·T 5

MARKETING ENVIRONMENT • Participants engaged in producing, distributing, and promoting the offering.

• Company

• Suppliers

• Distributors

• Dealers

• Customers

TASK

• Demographic

• Economic

• Physical

• Technological

• Politico-legal

• Socio-cultural

BROAD

H ·K ·T 6

MARKETING REALITIES Societal Forces

•Networks and IT

•Globalization

•Deregulation

•Privatization

•Competitive Rivalry

•Industry Convergence

•Customer Resistance

•Retail transformation

•Disintermediation

Consumer Capabilities

• Increase in buyer power

•Greater variety

• Information availability

•Buyer convenience

•Ability to compare

•More visibility and audibility

Company Capabilities

•Information and sales channel

•Richer market research

•Better internal and external communication

•Targeted marketing

•Personalization of communication

•Mobile marketing

•Better supplier and supply chain management

•Online recruitment and training

H ·K ·T 7

COMPANY

ORIENTATIONS

OR

MARKETING

CONCEPTS

H ·K ·T 8

THE 4 PS

• Product

• Price

• Place

• Promotion

H ·K ·T 9

PRODUCTION CONCEPT • “Consumers prefer products that are widely available and

inexpensive [2Ps – Place and Price]

• Target • High production efficiency

• Low costs

• Mass distribution

• FOR • Market expansion

• Market domination

• Eg. FORD, China

H ·K ·T 10

PRODUCT CONCEPT • “Consumers prefer products with the best quality, performance

or innovative features” [1P – Product]

• Target • Superior products

• Improvements over time

• FOR • Market consolidation

• Eg. German car makers, Japanese technology companies

H ·K ·T 11

SELLING CONCEPT • “Consumer, if left alone, will not buy enough” [1P –

Promotion]

• Target • Aggressive selling and promotion

• FOR • “Unsought” goods.

• Goods closer to wants than needs.

• Eg. Insurance companies, Tablet computers.

H ·K ·T 12

MARKETING CONCEPT • “Consumer is at the center of all activities. Create,

Deliver and Communicate Value” [4Ps]

• Target • Creating products on the basis of consumer needs

• FOR • Industries where consumer needs can be identified easily.

• Eg. Insurance companies, Tablet computers.

H ·K ·T 13

GROUP WORK • Identify and explain

• A company that believes in the product concept today.

• But also the marketing concept.

H ·K ·T 14

HOLISTIC MARKETING CONCEPT • “Complete cohesive approach to engaging the customer‟s needs in ways

that are profitable to the company” [4+ Ps]

• Target

• Creating ways for the customer to interact with the company in ways that generate

• REVENUE FOR THE FIRM

• DELIGHT FOR THE CUSTOMER

• Amazon, Kindle, E-Ink, Kindle Fire.

• Google, Maps, Street View, Android, Chrome OS, Internet Access, Plus.

• Vodafone Services, Team Sponsorships, Reality Shows.

• NIKE – The Big Daddy

H ·K ·T 15