class notes of mm

8/4/2019 Class Notes of MM

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TOPICS TO BE COVERED

y Define marketing with 5 examples.

y Define selling with 5 examples.

y Difference b/t marketing and selling.

y Cash cow.y Fast moving consumer goods.

y Industrial marketing.

y Corporate selling.

y Careers in marketing.

y Know your customer- taste and preference.

y Cannibalizing.


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MEANING OF MARKETING

KOTLER

From a managerial point of view marketing is a process

of planning and executing the conception of pricingand promotion and distribution of ideas and goodsand services to create exchanges that satisfy individualand organization goals


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y Marketing is the sum of all activities that take you toa sales outlet. After that sales takes over.

y Salestrying to get the customer to want what thecompanyproduces

y

Marketingtrying to get the company produce what thecustomerwants


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Examples of sellingy ALife Insurance company suggesting its customer to

sign up for a Car/Health insurance.

y An Wholesale mobile retailer suggesting a customer tochoose a network/carrier after one purchases a mobile.

y Atelevision brand suggesting its customers to go for aHome Theater of its own brand or another


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y Selling is one activity of the entire marketing process.

y Selling is the act of persuading or influencing a

customer to buy (actually exchange something of valuefor) a product or service.


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differencey 1.Sales target on individuals or small groups. Marketing on

the other hand targets a larger group o the general public.

y2.Marketing means generating leads or prospects. salesmeans converting the leads or prospects into purchasesand orders.

y 3.Marketing involves a longer process of building a namefor a brand and pursuing the customer to buy it even if theydo not need it. Where as sales only involve a short term offinding the target consumer.


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y Sales = Push

Marketing = Pull

Sales - Push the product - end of the day numbersmatter

Marketing - Pull the customers towards the products /increase the reach and awareness of the product.(Performance and effort too matters)

Marketing has sales as a small part in it.


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reviewy Examples of maruti and alto

y End results

y Successful markety Aristocrat context---know yr customer and your

product

y Electric car rewamarketing strategy.

y Cash cowalto.


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27 th julyy Marketing is identifying the customer need and max.

the customer satisfaction and being profitable in the

long run.y C needs c satisfaction

y The process is very long.

y Eg. Telecom sector huge churn of customer.

y Achieving satisfaction is very difficult.y Ones need become luxury of other.


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y Needs, want ,desire, and then demand. These are thecertain similar terms.

yWhat is demand?

yWillingness to buy a specific quantity at a specificprice at a particular point of time.

y Differentiate b/t similar terms.

y Need-communicateyWant-how to communicate

y Desireperfect or best part to communicate.


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y Need basic

yWantsomething more

y Desireluxury.y second Creating the need.

y Selling the dreams is marketing.

y first Identify the need.

y Market people identify the need.

y Eg krack cream by pharma

y Eg- Nirma , Tata ace, mc donalds happy meal, nano etc


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y Grasim-tissue paper.

y Selling tissue wipes??

y

Hospitalsy Educational institute.

y Resorts

y Beauty parlors

y Shopping malls---food junction

y Sports complex

y Hotels

y Restaurant/club

y General store-chemist

y Saloons.

y Marriage parties.

y Media houses.


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y Railways

y Garments

y Airlinesy Health department of government.

y Construction sites.

y Testing lab rotary

y Coffee shops/pubs

y Pan stores


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Tacticsday to day handling of marketing.

Mm is art and science of choosing target markets, and

getting , keeping and growing customers throughcreating, delivering and communications superiorcustomer value.

Value-benefit/cost, for customer its price.

Examples-:Washing machine manually in Punjab.

Washing machine automatic-in Mumbai

Pure it.

Phenomenal affordability is also value creation.


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Purpose of marketingy People dont buy physical products they buy bundle of

satisfactiontheodore levitt

y E

g: kingfishers airlines.y Eg: garners fairness cream.

y Eg: anti wrinkle products

y Eg: soaps like dove.

y Eg: enamel , Revlon nail polish

y Selling beauty, confidence, hope, solution.

y Cosmetic surgeryabove 40 yrs and above.

y Re-construction


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25 th aug-scope of marketing

yPhysical goods, services, , experience, events, persons,places, properties, organizations, information, ideas

y nature, tangibility, consistency, why???

y Challenge in services

yMood , mindset of customer.

y For product the challenge is 4p

y For service the challenge is receiver, sender, awareness,infrastructure, mindset, pace, physical evidence.

yAura created while we walk in for service

y Quality is eessential


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y Six sigma??

y Care or dont care for customer?

y Examplegovernment care or not care??

y Customer defection rate is high in telecom sector

y

Competitor orientation---:customer is a light house. He isking

y He is sovereign. Take customer into consideration.

y Purpose is not one time

y S

ustain existing customersy Sustain loyal customer.


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Customer relationship

management

Transactionmarketing

y Building relationship with customer

y Customer feedback

y Expectations

y Updating the customers

y Giving offersy Giving the quality

y No feedback

y No initiative

y One time selling


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Marketing orientation

y What business we are?if we dont able to define vision then we

become very narrow, and this is known as marketing myopia.y Integrated marketingthe philosophy where from top to bottom yu

have same thinking. All should speak one language . What sales deptfacing??

y Logistic dept??

y

Marketing mixcombination of 4 p s or 7 py Relationship marketing--

y Societal marketing-corporate social responsibility

y What kind of sales yu are??

y Acquiring new v/s new customer---under relationship management

yCutomer life time value----have to find??????????

y Product ,price, promotion, place

y Under productvariety, quality, design, features, brand name,packaging, sixe, service, warrantees

y Under pricelist price, discount price, allowance, payment method,credit terms


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Marketing mix strategyy Offering mix communication mix distribution channel target customer

y Project???????????have to find???

y Value, satisfaction and quality---

y

How would yu calculate consumer value iny consuming cocola

y Joining a healthy club

y Buying a lottery ticket

y Enjoying a maassage at spa

y

Thinking abt yr experience where yu feely satisfied or dissatisied???


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Criteriaorientation, approach,d

irection, emphasis, businessdefination, time frame

selling marketing

y Production capability

ySelling

y Push

y Aggressive

y In terms of product

y Short run

y Selling is heart of marketing

y Market acceptability

yNeed identification

y Pull

y Creative a niche

y In terms of company operates

y

medium


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Targeting , positioning,

segmentationy Next topic

y Need , want ,demand---find??

y Product and servicefind??y Difference-find???

y Can product be converted into service and vice versa find???


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Core marketing concept

y Needs , wants, demands

y

Target market, positioning, segmentationy Offering and brand

y Products and services

y Value , satisfaction, (quality service and pride traid)

y Marketing channels

y Supply chain]

y Competitionat various levels

y Marketing environmentverydynamic internal and external

y Marketing planning---remind??????????


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Customer life time valuey

CLV is generally defined as the present value of allfuture profits obtained from a customer over his or herlife of relationship with a firm.

y Companies can look at their investments in terms of

cost per sale, rate of customer retention, and alsoconversion of prospects.

y The inherent danger of over focusing on customerlifetime value is that companies will invest in programs

which try to wring profits from only the most active,heaviest spending customers


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Target markety Atargetmarket is a group of customers that the

business has decided to aim its marketing efforts and

ultimately its merchandise.

y Awell-defined target market is the first element to amarketing strategy.

y The target market and the marketing mix variables of

product, place(distribution), promotion and price arethe four elements of a marketing mix strategy thatdetermine the success of a product in the marketplace.


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Strategies for Reaching

Target Markets

yy UndifferentiatedMarketing:UndifferentiatedMarketing: when a firm producesonly one product or product line and promotes it to allcustomers with a single marketing mix

yy DifferentiatedMarketing:DifferentiatedMarketing: when a firm producesnumerous products and promotes them with adifferent marketing mix designed to satisfy smallersegments


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Strategies for Reaching

Target Markets

yy ConcentratedMarketing (nichemarketing):ConcentratedMarketing (nichemarketing): whena firm commits all of its marketing resources to serve a

single market segment

yy Micromarketing:Micromarketing: involves targeting potentialcustomers at a very basic level, such as by ZIP code,specific occupation, lifestyle, or individual household


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The Role ofMarket Segmentation

yyMarket SegmentationMarket SegmentationDivision of the total market into smaller, relativelyhomogeneous groups

y No single marketing mix can satisfy everyone.Therefore, separate marketing mixes should be usedfor different market segments.


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Criteria for Effective Segmentationy Market segmentation cannot be used in all cases. To

be effective, segmentation must meet the followingbasic requirements.y The market segments must be measurable in terms of

both purchasing power and size.

y

Marketers must be able to effectively promote to andserve a market segment.

y Market segments must be sufficiently large to bepotentially profitable.

y The number of segments must match the firms

capabilities.


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Segmenting Consumer MarketsyyGeographic Segmentation:Geographic Segmentation: Dividing an overallmarket into homogeneous groups on the basis of theirlocationsy Does not ensure that all consumers in a location will

make the same buying decision.

y Help in identifying some general patterns.yy Segmenting byGenderSegmenting byGender

y Marketers must ensure that traditional assumptions arenot false

y Recently, the lines have increasingly blurred

y Some companies market successfully to both genders


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Segmenting Consumer Marketsyy

Segm

en

tin

g by AgeSegm

en

tin

g by Agey Identify market segments on the basis of age

y Products designed to meet the specific needs of certainage groups

yy Demographic Segmentation:Demographic Segmentation: dividing consumergroups according to characteristics such as sex, age,income, occupation, education, household size, andstage in the family life cycle

y Aprimary source for demographic data in the UnitedStates is the Census Bureau


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Segmenting Consumer Markets

Segm

en

tin

g by Ho

useho

ld

TypeSegm

en

tin

g by Ho

useho

ld

Type Todays U.S. households are very diverse

Married couples and their children

Blended by divorce or loss of spouse

Headed by single parent, same-sex parents, grandparents

yy Psychographic SegmentationPsychographic Segmentationy Divides a population into groups that have similar

psychological characteristics, values, and lifestylesy Lifestyle: peoples decisions about how to live their daily

lives, including family, job, social, and consumer activitiesy The most common method for developing psychographic

profiles of a population is to conduct a large-scale surveyy Attitude Interest Opinion statementsy Value Attitude Life Style and VALS 2


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Segmenting Consumer Marketsyy U

sin

gP

sycho

graphic Segm

en

tationU

sin

gP

sycho

graphic Segm

en

tation

y Psychographic profiles produce rich descriptions ofpotential target markets

y Greater detail aids in matching a companys image andits offerings with the types of consumers who are likely

purchasersyy ProductProduct--Related SegmentationRelated Segmentation

Dividing a consumer population into homogeneousgroups based on characteristics of their relationshipsto the producty Can take the form of segmenting based on:

y Benefits that people seek when they buy

y Usage rates for a product

y Consumers brand loyalty toward a product


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POSITIONING

yy Positioning:Positioning: a marketing strategy that emphasizesserving a specific market segment by achieving a certainposition in buyers minds

y Attributes

y

Price/qualityy Competitors

y Application

y Product user

y Product class


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15-40

Develop Product Positioningy Positioning the product relative to competing products

in the minds of consumers

y

By attributey By use or application

y By product user

y By product class

y

By competitors


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30 th aug 2011y 1

E

ffectiveness+y 2 efficient===

y It is very important to be efficient .

y Doing thing right =effectiveness

y doing right thing=efficienty If we are not doing what we are supposed to do, then we

are not efficient.

yWhy segmentation???slide no 7-3

yWhy internet banking is not taking up??

yBranding>>>>>>>have to find?????


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