chp1 2 -marketing management

8/8/2019 Chp1 2 -Marketing Management

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Marketing Management


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What is Marketing??

Selling?

Advertising?

Promotions?

Making products available in stores?

Maintaining inventories?

All of the above, plus much more!


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Marketing = ?

Marketing is the process of planning and

executing the conception, pricing, promotion,

and distribution of ideas, goods, services to

create exchanges that satisfy individual and

organizational goals

American Marketing Association


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Marketing = ?

Marketing management is the art and science of

choosing target markets and getting, keeping, and

growing customers through creating, delivering, andcommunicating superior customer value.

Marketing management is the art and science of

choosing target markets and getting, keeping, and

growing customers through creating, delivering, andcommunicating superior customer value.


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Marketing = ?

The Process That seeks to influence

voluntary exchange transactions between

a customer and a marketer. The Marketing

process involves communication and

requires a mechanism or system to carry

out th

e exch

ange of th

e marketers productfor something of the value.

The Process That seeks to influence

voluntary exchange transactions between

a customer and a marketer. The Marketing

process involves communication and

requires a mechanism or system to carry

out th

e exch

ange of th

e marketers productfor something of the value.


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Marketing as a Concept

Marketing concept involves:

(a) customer orientation

(b) competition orientation

(c) the ability to respond to environmental

changes (changes in consumer needs,

competition, government policy, technology,

etc.) before the competition.


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What is marketing orientation and

how can it be employed in

organisation?(a) Consumer-orientation

Successful marketing companies continuously

monitor customer needs, wants and preferences.

Unfulfilled consumer needs drive their new

product development efforts.


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organisation?(b) An integrated approach to exploiting market

opportunities

Integrate all elements of the marketing mix, and

not just merely advertising and selling, into a

sound business plan that could help tosuccessfully fight competition.


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organisation?(c) Futuristic approach

Money spent on marketing not an expenditure but

an investment.

Invest in market share development activities


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organisation?d) Highly developed marketing systemsHighly developed marketing systems that act as

market barometers.

Commonly used systems relate to complaint

management, customer feedback, customer

relationship management (CRM) and today even

e-CRM.e) Marketing culture pervades the organisation

f) Speed in responding to customer's problems


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Simple Marketing System

Industry(a collection

of sellers)

Market(a collection

of Buyers)

Goods/services

Money

Communication

Information


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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 Ps

product

price

place promotion


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Marketing Mix

The Specific combination of interrelated and

interdependent marketing activities in which an

organization engages to meet its objectives.

The basic elements of the marketing mix :

product, place, price, and promotion; also called

the controllable variables of marketing, because

they can be controlled and manipulated by the

marketer.

The Specific combination of interrelated and

interdependent marketing activities in which an

organization engages to meet its objectives.

The basic elements of the marketing mix :

product, place, price, and promotion; also called

the controllable variables of marketing, because

they can be controlled and manipulated by the

marketer.


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The 4 Ps & 4Cs

Marketing

Mix

Product

Price Promotion

Place

Customer

Solution

Customer

Cost

Communication

Convenience


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Place ( Distribution )

The element of the marketing mix that encompasses

all aspects of getting products to the consumer in

the right location at the right time.

Channel of Distribution Manufacturer Wholesaler

- Retailer Ultimate consumer.

The element of the marketing mix that encompasses

all aspects of getting products to the consumer in

the right location at the right time.

Channel of Distribution Manufacturer Wholesaler

- Retailer Ultimate consumer.


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Promotion

The element of the marketing mix that includes all

forms of marketing communication.

The element of the marketing mix that includes all

forms of marketing communication.


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Price

The amount of money or other consideration that

is, something of value given in exchange for a

product/service.

The amount of money or other consideration that

is, something of value given in exchange for a

product/service.


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Difference Between - Sales & Marketing ?Difference Between - Sales & Marketing ?

Salestrying to get the customer to want what the

companyproduces

Marketingtrying to get the company produce what the

customerwants


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Marketing and Selling Orientations

Orientation/

Concept

Focus Means Ends

Selling Product Aggressive selling and sales

promotion with emphasis on price

variations to close the sale. I mustsomehow hook the customer.

Maximise profits

through sales

maximization

Marketing

Marketing

Customer

Customer

Integrated marketing plan

encompassing product, price,

promotion and distribution backed up

by adequate environmental scanning,consumer research and opportunity

analysisemphasis on service "what

can we do that will make us better

than and superior to our competitors,

in the customer's eyes "?

Maximise profits

through increased

consumer satisfaction

and hence highermarket share.


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Scope What do we market

Goods

Services

Events

Experiences

Personalities

Place

Organizations

Properties Information

Ideas and concepts


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Core Concepts of Marketing

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, Transaction

Relationships

Products



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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 withthe Marketing Triangle

Customers

CompetitionCompany


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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 has needs, wants, demands anddesires

Understanding these needs is starting point of theentire marketing

These needs, wants arise within a frameworkor an ecosystem

Understanding both the needs and the ecosystemis the starting point of a long term relationship


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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 performanceand expectations.

Performance > Expectations => Satisfaction

Performance < Expectations =>Dissatisfaction


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Customers - Problem Solution

As a priority , we must bring to our customers

WHAT THEY NEED

We must be in a position toUNDERSTAND

theirproblems

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


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Analysis Of CompetitionAnalysis Of Competition

Whoare your competitors?

Whatare their strengths and weaknesses?

Whathave been their strategies?

Howare they likely to respond to your

Marketing plan?


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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 organizations main activity at aparticular 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

organizations 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

organizations 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 Process

The Strategic-Planning, Implementation,

and Control Process


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Business Strategic-Planning Process

External environment

(Opportunity &

Threat analysis)

Internal Environment

(Strength/ Weakness analysis)

Goal FormulationBusiness Mission


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Strategy Formulation

Environmental Analysis

Internal AnalysisCompetitor

Customer

Supplier

Regulatory

Social/ Political

Technology Know-How

Manufacturing Know-How

Marketing Know-How

Distribution Know-HowLogistics

Strength & Weaknesses

Identity Core Competencies

Opportunities & Threats

Identify opportunity

Fit internal Competencies with external opportunities

Firm Strategies


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The 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 PLANCONTENTS of MARKETING PLANBusiness 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

MissionStatemen

t

Objectives

Situationor SWOT

Analysis

ImplementationEvaluation, Control

Target MarketStrategy

Marketing Strategy

Product

Promotion

Place/Distribution

Price

Marketing Mix


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Marketing Environment


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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 ?

Technology ?

Government policy ?

Other media substitutes ?


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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.


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Factors

Influencing

Companys

Marketing

Strategy

Factors

Influencing

Companys

Marketing

Strategy


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Demographics

SocialChange

EconomicConditions

Political &Legal Factors

Technology

Competition

EnvironmentalScanning

EnvironmentalScanning

Target Market

ProductDistributionPromotion

Price

External Environmentis not controllable

External Environmentis 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 actupon the

firm and its customers, that create threats & opportunities

Th M k ti Mi I t d


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The Marketing Mix In todays

world

The conventional view of the marketing mix consisted offour components (4 Ps): Product, Price, Place/

distribution andPromotion.

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

firms operations that have the potential to affect the

relationship with customers.


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The Give and Get of Marketing


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GreatWords on Marketing

1. The purpose of a company is to create a customerThe only

profit center is the customer.2. A business has twoand only twobasic 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, greatproducts are invented in the Marketing department.

5. Marketing is too important to be left to the marketing

department.


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Drivers of Customer Satisfaction

Many aspects of the firms value proposition contribute tocustomer satisfaction:

The core product or service offered

Support services and systems

The technical performance of the firm Interaction with the firm and it employees

The emotional connection with customers

Ability to add value and to differentiate as a firm focuses

more on the top levels


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Marketers and Markets

Marketers are focused on stimulatingexchanges with customers who make upmarkets B2C or B2B.

The market is comprised of people who play aseries of roles: decision makers,

consumers, purchasers, and influencers.It is absolutely essential that marketers have adetailed understanding of consumers, theirneeds and wants.

Much happens before and afterthe sale to

affect customer satisfaction


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Stages of Customer Interaction


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What Changed in Marketing

Organize by product units Focus on profitable transactions

Look primarily at financialscorecard Focus on shareholdersMarketing does the marketing Build brands through advertising Focus on customer acquisitionNo customer satisfaction

measurementOver-promise, under-deliver

Organize by product units Focus on profitable transactions

Look primarily at financialscorecard Focus on shareholdersMarketing does the marketing Build brands through advertising Focus on customer acquisitionNo customer satisfaction

measurementOver-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 andretention rate

Under-promise, over-deliver

Old Economy New Economy


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Check Your Understanding

1. Marketing is the process of --------------- and----------- the conception, pricing, promotion,and distribution of ideas, goods, services tocreate exchanges that satisfy individual andorganizational goals.

2. Marketing management is the ------- and------------ of choosing target markets andgetting, keeping, and growing customersthrough creating, delivering, and

communicating superior customer value.


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3.Consumer-orientation Successfulmarketing companies continuously monitor

customer needs, wants and preferences.

Unfulfilled consumer needs drive their new

product development efforts. ( True / False

)


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4. Marketing is all about creating a -----------, sales is all about --------------.

5. Marketing is all about managing the four Ps

product

price

place

---------------

6. Marketing triangle is Customer , Company and ---------------.


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7. Value = Benefit / ---------

8. Performance < Expectations => Dissatisfaction (True

/ False )

9. SWOT = -----------------------------------------------------

10. Demographic environment is a macro environment

aspect in marketing. ( True / False )

Ch k Y U d t di


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Check Your Understanding -

Answers

1. Planning , executing2. Art , Science

3. True

4. Pull , Push

5. Promotion6. Competitors

7. Cost

8. True

9. Strength, Weakness, Opportunity, Threat10. True


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Thank You

chp1 2 -marketing management

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