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Fundamentals of Marketing ManagementCMO FunctionsStrengthen the BrandsMeasure Marketing EffectivenessDrive new Product Development based on customer needsGather meaningful customer insightsUtilise new marketing technology

New Consumer CapabilitiesIncrease in buyer powerAmount of information availableEase in placing and receiving ordersAbility to compare ratesAbility to influence public opinionNew Company CapabilitiesWeb Based ChannelsMore information available for researchSpeedy Internal communicationSpeedy External CommunicationTarget Marketing and two way communication easier

New Company CapabilitiesConsumers can be reached on the moveMass Customisation possiblePurchase more efficient using net based tools

Ten CommandmentsSegment market, target the best segmentMap customer needs, perceptions, preferences, behaviour and serve with obsessive commitmentKnow major competitorsMake stakeholders partners, reward generouslySystem for identifying opportunitiesTen CommandmentsInsightful Long Term & Short Term Marketing PlanningControl Product and Service MixBuild Strong Brands Cost EffectivelyMarketing Leadership through Team BuildingTechnology for Competitive EdgeMarketing MyopiaAssumptionsAn ever expanding and affluent population will ensure our growthThere is no competitive substitute for our industrys major productWe can protect ourself through mass productionTechnical research and development will ensure our growthMarketing MyopiaCompanies which failedCentury TextilesHMT WatchesIndian Telephone IndustriesMTNL/ BSNLHindustan Aeronauticals LimitedSamtelMarketing MyopiaCompanies which SucceededTELCOBajaj AutoVSNL/ Tata IndicomSamsungBHELTheodore Levitt- Marketing MyopiaCompanyProduct DefinitionMarket DefinitionXeroxCopier CompanyOffice AutomationReliancePetrochemicalEnergyTata MotorAutomobileTransportationCarrierAir ConditioningClimate ControlBenett & ColemanNewspaperMediaDisneyCartoon PicturesEntertainmentTheodore Levitt- Marketing MyopiaCompanyProduct DefinitionMarket DefinitionAirtelCellular Phone ServiceCommunication CompanyHPPetroleum CompanyEnergy CompanyBHELThermal/ Hydro Power ProductsIntegrated Power Products CompanyIBMComputer ManufacturerIntegrated IT Services CompanyCompany Orientation towards the MarketplaceCompany Orientation toward MarketplaceProduction ConceptProduct ConceptSelling ConceptMarketing ConceptThe Production ConceptThe Production Concept holds that Consumers will favour those Products that are widely available and low in cost.Managers of Production Oriented companies concentrate on achieving high production efficiency and wide distribution coverageThe Product ConceptThe Product Concept holds that Consumers will favour those products that offer the most Quality Performance and FeaturesManagers of Product Oriented Companies focus their energy on making good products and improving them over timeThe Selling ConceptThe Selling Concept holds that Consumers if left alone will ordinarily not buy enough of the companys products.The company must therefore undertake an aggressive selling and promotion effortThe Marketing ConceptThe Marketing Concept holds that the key to achieving the companys goals lies in determining the needs and wants of target markets and delivering the desired satisfaction more effectively and efficiently than competitorsThe Marketing ConceptMake and Sell vs Sense and RespondSelling is preoccupied with the sellers need to convert product into cashMarketing is about satisfying the needs of the customer by means of the productThe Societal Marketing ConceptThe Societal Marketing Concept holds that the companys task is to determine the needs, wants and interests of target markets and to deliver the desired satisfaction more effectively and efficiently than competitors in a way that preserves or enhances the consumers and societys wellbeingHolistic MarketingInternal MarketingPerformance MarketingIntegrated MarketingRelationship MarketingInternal MarketingResearch and DevelopmentPurchaseManufacturingMarketingSalesInternal MarketingLogisticsAccountingFinancePublic RelationsPerformance MarketingFinancial AccountabilitySocial Responsibility Marketing

Integrated MarketingProductPricePlacePromotionIntegrated Marketing-ProductGeneric ProductVarietyFeaturesQualityDesignPackagingSizesServiceWarranties

Integrated Marketing-PriceList PriceDiscountsAllowancesPayment PeriodCredit Terms

Integrated Marketing-PromotionAdvertisingSales PromotionSales ForcePublic RelationsDirect Marketing

Integrated Marketing-PlaceChannelsCoverageLocationsInventoryTransport

Relationship MarketingCustomersChannel PartnersFinancial CommunityEmployeesCustomer Relationship ManagementAcquisition vs RetentionTargeted Customers, not AnybodyPrice for ProfitHigh Price, High Service LevelsTotal Customer Satisfaction vs Moderately Satisfied Customers

Strategic Business UnitStrategic Business Unit (SBU) is a profit center which focuses on product offering and market segment. SBUs typically have a discrete marketing plan, analysis of competition, and marketing campaign, even though they may be part of a larger business entity.

Strategic Business UnitCorporations may be composed of multiple SBUs, each of which is responsible for its own profitability

Strategic Business UnitHindustan UnileverPersonal Care- Dental CarePersonal Care- Soaps and ShampoosHome Care- DetergentsFood and DrinkWater PurifierAssessing Growth OpportunitiesIntensive GrowthIntegrative GrowthDiversification GrowthDownsizing and divesting older businessesStrategic Planning Gap

Growth OpportunitiesAnsoffs Product Market Expansion Grid

Integrative Growth- HorizantalHULSamsungSonyTata MotorsTitan

Integrative Growth- HorizantalBHELITCGeneral ElectricICICIReliance Energy

Integrative Growth- VerticalBHELReliance IndustriesIndian RailwaysRaymondsReliance Energy

DiversificationITC Welcomgroup HotelsApple iPodL&TPepsi LaysMahindraBajaj AutoTransaction Vs. Relationship MarketingTransaction OrientedRelationship OrientedGet New AccountsRetain Existing AccountsGet the orderBecome the preferred supplierCut price to get the salePrice for profitManage all accounts to maximise short term salesManage each targeted account for long term profitSell to anyoneConcentrate on high profit potential accountsProfit Impact of 5% of Retention Rate

Core CompetenciesSource of competitive advantageApplication in a wide range of marketsDifficult for competitors to imitateQuestions for Discussion If you become the CMO of a company what will your major priorities? What new consumer capabilities do marketers have to contend with? What new capabilities can companies leverage Explain the concept of Marketing Myopia. Identify a company which did not succumb to Marketing Myopia How will you redefine the business of a company of your choice? Give an example of a company which has used the Production Concept Give an example of a company which has used the product concept Give an example of a company which has used the Marketing Concept Explain Customer Relationship Management End of Section