marketing introduction and scope

8/3/2019 Marketing Introduction and Scope

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MarketingScope &Nature

DISCLAIMER

These notes are for the sole purpose of

understanding the concepts of marketingand are to be used for class room purposesonly. The logos of certain manufactures usedare owned by their respective owners andunauthorized use of them may lead to legalpersecution.

This presentation also may containcopyrighted material which on no accountshould be reproduced / reprinted in anyform without permission.


marketingESSENTIALS


Ranjan Paul

[email protected]

Mobile: +91 98919 84804


Course Goals

To outline the marketing function and its role within acorporations business strategies, also hopefully generating apassion for the Marketing discipline and empowering you toevaluate Marketing as a possible career choice

To introduce you to marketing strategyand to the elementsof marketing analysis: customer analysis, company analysis,and competitor analysis

To familiarize you with the elements of the marketing mix(product, pricing, promotion, and distribution strategies) andenhance your problem solving and decision making abilities inthese operational areas ofmarketing tactics


Course Books

Marketing Management A South Asian

Perspective by Kotler, Keller, Koshy & Jha

Marketing Management Arun Kumar & N.

Meenakshi

Other Readings

Business Newspapers & Magazines

Research on the Internet


Session Questions

Why is marketing important?

What is the scope of marketing?

What are some fundamental marketingconcepts?

How has marketing management changed?

What are the tasks necessary for successful

marketing management?


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Scope & Nature


MarketingMarketingScope &Nature

Good Marketing is No Accident

The roaring successof four-wheeler Tata

Ace, in a marketearlier dominated bythree-wheeler load

carriers, was due to adeep understandingof the market needs

and customerrequirements.


What is Marketing?

Marketing is an organizational functionand a set of processes for creating,

communicating, and delivering value

to customers and for managingcustomer relationshipsin ways that benefit the

organization and its stakeholders.


What is Marketing Management?

Marketing management is the

art and scienceof choosing target markets

and getting, keeping, and growing

customers throughcreating, delivering, and communicating

superior customer value.


Selling is only the tip of the iceberg

There will always be a need for

some selling. But the aim of marketingis to make selling superfluous. The aimof marketing is to know and understandthe customer so well that the product orservice fits him and sells itself. Ideally,marketing should result in a customerwho is ready to buy. All that should be

needed is to make the product orservice available.

Peter Drucker


What is Marketed?

Goods

Services

Events & Experiences

Persons

Places & Properties

Organizations

Information

Ideas


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Core Marketing Concepts

1.1.Needs, Wants, and DemandsNeeds, Wants, and Demands

2.2.Products and ServicesProducts and Services3.3.Value, Satisfaction and QualityValue, Satisfaction and Quality4.4.Exchange, Transactions andExchange, Transactions and

RelationshipsRelationships5.5.MarketsMarkets


What is a Market?

The set of actual and potential buyers of a

product.

These people share a need or want that

can be satisfied through exchange

relationships.


This Is a Need

Needs - state of felt deprivation including

physical, social, and individual needs.


This Is a Want

Wants - form that a human need takes, as

shaped by culture and individual

personality.


This Is Demand

Demand

Wants Buying Power


Need / Want Fulfillment

Needs and Wants Fulfilled through a Marketing Offer:

Some combination of products, services, information, or

experiences offered to a market to satisfy a need or want.


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A Simple Marketing SystemMarketingScope &Nature

Key Customer Markets

Consumer Markets

Business Markets

Global Markets

Nonprofit/ Government Markets


Value and Satisfaction

If performance is lower than expectations, satisfaction is low.


Functions of CMOs

Strengthening the brands

Measuring marketing effectiveness

Driving new product development based oncustomer needs

Gathering meaningful customer insights

Utilizing new marketing technology


Improving CMO Success

Make the mission and responsibilities clear

Fit the role to the marketing culture and structure

Ensure the CMO is compatible with the CEO

Remember that show people dont succeed

Match the personality with the CMO type

Make line managers marketing heroes

Infiltrate the line organization

Require right-brain and left-brain skills


Core Marketing Concepts

Needs, wants, anddemands

Target markets,

positioning, segmentation Offerings and brands

Value and satisfaction

Marketing channels

Supply chain

Competition Marketing environment


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Segmentation and Target

Marketing

Market Segmentation:Divide the market intosegments of customers

Target Marketing:

Select the segment tocultivate

#1 #2


Marketing management

process

Analysis/Audit- where are wenow

Objectives -where do we

want to be?

Strategies - which way is best?Tactics - how do we get there?(Implementation - Getting there!)Control - Ensuring arrival


The marketplace isnt what it used to

be

Information technology

Globalization

Deregulation

Privatization

Competition

Convergence

Consumer resistance

Retail transformation


New Consumer Capabilities

A substantial increase in buying power A greater variety of available goods and

services

A great amount of information aboutpractically anything

Greater ease in interacting and placing andreceiving orders

An ability to compare notes on products andservices

An amplified voice to influence public opinion


Company Orientations

Production

Selling Marketing

Product


Holistic Marketing Dimensions


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The Four PsMarketingScope &Nature

Elements of a Modern Marketing

System


The Marketing Concept itself

has evolved

1) Catering to the customer

2) Anticipating the customer2) Anticipating the customer

3) Leading the customer3) Leading the customer


Internal Marketing

Internal marketing is the task of hiring,

training, and motivating able employees

who want to serve customers well.


Performance Marketing

Financial

Accountability

Social

Responsibility

Marketing

Social Initiatives Corporate social marketing Cause marketing

Cause-related marketing Corporate philanthropy Corporate community

involvement Socially responsible

business practices


Why is marketing planning

necessary?

Systematic futuristic thinking by management

better co-ordination of a companys efforts

development of performance standards forcontrol

sharpening of objectives and policies

better prepare for sudden developments


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Transactions vs. Relationship

Orientations


Transaction Modeling for Marketing

Transaction modeling can be used for a largenumber of marketing applications, fromresponse modeling and acquisition performancemodeling, product cross-sell/up-sell, attritionprediction and life-event detection to revenueenhancement and affinity partner selection.


Response modeling

Transaction data can be used to predict which cardholders willrespond to marketing campaigns. Both general responder andspecific campaign models can be built.

From the data such things as cardholder gender, age, pet-ownership, hobbies, travel habits, family size andcomposition, price sensitivity, quality sensitivity and loyaltycan be derived.

This is very valuable in terms of executing highly targeted andhigh-margin marketing campaigns.


Merchant profiling

A great deal can be understood about a merchant byanalyzing who buys its products, where they buy them, howmuch they spend and how often merchandise is purchased.

This data is obviously very valuable both to financialinstitutions and to merchants themselves, and provides allkinds of marketing opportunities.

It is also possible to compare merchants to their competitorsto evaluate possible cross-marketing campaign opportunities.


Attrition prediction

Transaction data tracks customers behavior and

can therefore be a very powerful tool to create

models to predict attrition, just as it can be used

to predict bankruptcy and fraud.


Marketing Management Tasks

Develop market strategies and plans

Capture marketing insights

Connect with customers

Build strong brands

Shape market offerings

Deliver value

Communicate value

Create long-term growth


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The Next Wave

New Paradigms in

Marketing




Social Media

Social media describes the online technologies and practices that people use to share opinions, insights,experiences, perspectives and media itself. Social media can take many different forms, including text,images, audio, and video. These sites typically use technologies such as blogs, message boards, podcasts,wikis, and vlogs to allow users to interact. Source: Wikipedia


Word of Mouth Marketing

WOMM: Umbrella term

Buzz marketing Special hook, event, promotion. AquaTeenHunger Force Boston

Bomb Scare

Viral marketing Branded material, websites, widgets, bligets, videos, utilities,

collaboration tools etc. that sneezers spread. ParkRidge47, VoteDifferent

Influencer marketing Identifying and finding the influencers

Evangelist marketing Turning most loyal customers into citizen marketers

Street marketing Interacting at popular offline places like Buzz Oven

Stealth / Undercover marketing Bree, lonelyGirl15

Source:

Justin Kirby, & Paul Marsden (2006). Connected marketing. Oxford, UK: Butterworth-Heinemann. 198

YouTube

Aqua Teen

Buzz Oven

Bree


Widget Marketing

Cool plug-n-play things foryour sidebar


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DefinitionMarketing centered around obtaining customer consent to

receive information from a company. Information

Coined and popularized by Seth Godin,permissionmarketing is the opposite of traditional interruptionmarketing. Permission marketing is about building anongoing relationship of increasing depth with customers.In the words of Seth Godin, "turning strangers into friends,and friends into customers."

Permission marketing has been hailed as a way formarketers to succeed in a world increasingly clutteredwith marketing messages.

Source: http://www.sethgodin.com/permission/


Definition

Unconventional marketing intended to get maximum results

from minimal resources.

Information

Coined by Jay Conrad Levinson, guerilla marketing is moreabout matching wits than matching budgets. Guerillamarketing can be as different from traditional marketing asguerilla warfare is from traditional warfare. Rather thanmarching their marketing dollars forth like infantry divisions,guerilla marketers snipe away with their marketing resourcesfor maximum impact.


New Paradigm

Democratization of 4Ps paradigmCitizen brandingCollective collaborationCollective risk sharingCollective product innovationCollective IP ownership

Citizen marketers will sell remarkable ideas Innovators should adopt the 1% rule

If you dont find the sneezers or connectors, the 80/20% rule wont matter

Work backwards Build your brand around your idea first. If the community you are targeting does not

coalesce and rally around the idea, continuing to build the product is irrelevant

Create your own blue ocean If you play it safe and go by the rules of your industry, value chain, and business model

youre dead! Most industries and markets are saturated and highly concentrated.


Its About Social Behavior

Its not about a cheaper product or your idea. Try to change customerbehavior.

Its not about better coffee its about the place

I am not looking for a drill bit I need to make a hole Its not about the hog, i ts about a lifestyle Its not about the sound its about how it makes me feel Its not about the sound its about being hip Its about my space

Its about my video

Its about my opinion Its about the experience

Its about your choices, places, and time Examples

Apple, Starbucks, JetBlue, MySpace, Harley-Davidson, Tivo, Stew

Leonards, Threadless


Implications

Reached the tipping point The static web maturing Monologue marketing out

Live Web (a/k/a Blogosphere) is makinginformation transparent Word travels fast People are more likely to act on a peers

recommendation by factor X Marketing is a reflection of social paradigms The new social media and networks changing

customer expectation and behavior


TRENDS


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Changes in Consumer

Demographics

MaturityPolarization: some a lot and others little

Value orientation

Skepticism

Disloyalty


Changes in Consumer

Technology: Products and services will havemuch more technology and will becommercialized in more technological way

Product and brand (Product loses out totechnological factor)

Publicity: (From TV to Internet)

Prices: Mixture of strategies

MarketingScope &NatureChanges in Consumer

Competition Companies have to understand themselves: Look for loyalty

Sales force in reconstruction: specialized and with more

technology

Channels of distribution: vertical integration and new roles

Prices: when the competition is concentrated, the consumer

pays

Products and brands: companies tend to innovate less when

they are alone, but they have learned that the best way to

stay alone is to innovate


Emerging Consumer Markets in

the 21st Century

Electronic Articles (HDTV, WebTV, digitalphotography)

In their free time, consumers will look for

intense experiences that relieve stress

(rafting, rappel)

Allan J. Magrath


Emerging Consumer Markets

in the 21st Century

Health as a National Pastime (nutrition,diets, personal care)

Products and Services anti-ageing (Creams,treatments)

Sport Equipment and Articles (Golf,Mountain Climbing, Tennis)

Allan J. Magrath


Emerging Consumer Markets in

the 21st Century

Caring for the environment (recyclable

packages) Outdoor articles ( garden, patio, swimming

pool)

Allan J. Magrath


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Marketing In The Indian

Context

Circa: 2011



ET~Jun14,2001


Internet Usage and Population

Statistics

YEAR Users Population % Pen. Usage Source

1998 1,400,000 1,094,870,677 0.1 % ITU

1999 2,800,000 1,094,870,677 0.3 % ITU

2000 5,500,000 1,094,870,677 0.5 % ITU

2001 7,000,000 1,094,870,677 0.7 % ITU

2002 16,500,000 1,094,870,677 1.6 % ITU

2003 22,500,000 1,094,870,677 2.1 % ITU

2004 39,200,000 1,094,870,677 3.6 % C.I. Almanac

2005 50,600,000 1,112,225,812 4.5 % C.I. Almanac

2006 40,000,000 1,112,225,812 3.6 % IAMAI

2007 42,000,000 1,129,667,528 3.7 % IWS

2009 81,000,000 1,156,897,766 7.0 % ITU

2010 81,000,000 1,173,108,018 6.9 %

http://www.internetworldstats.com/asia/in.htm


Cellular Phone Story

City/Circle May'2010 Jun'2010% Growth overprevious month

All Metros 55,827,786 57,535,005 3.06%

A' Circle 148,719,464 152,757,251 2.72%

B' Circle 171,258,663 175,786,096 2.64%

C' Circle 68,489,798 70,507,810 2.95%

All India 444,295,711 456,586,162 2.77%

http://www.coai.com/statistics.php


Source: SIAM

Automobile Domestic Sales Trends(Number

of Vehicles)

Category 2003-04 004-05 2005-06 2006-07 2007-08 2008-09 2009-10

Passenger

Vehicles9 02 ,09 6 1 ,06 1, 572 1 ,14 3,0 76 1, 379 ,97 9 1, 549 ,88 2 1, 55 2, 703 1 ,94 9, 776

Commercial

Vehicles260,114 18,430 351,041 467,765 490,494 384,194 531,395

Three

Wheelers284,078 07,862 359,920 403,910 364,781 349,727 440,368

Two

Wheelers5 ,3 64, 249 , 20 9, 765 7 ,05 2,3 91 7, 872 ,33 4 7, 249 ,27 8 7, 43 7, 619 9 ,37 1, 231

Gra ndTotal 6 ,8 10 ,5 37 7 ,8 97 ,6 29 8 ,9 06 ,4 28 1 0,12 3,98 8 9 ,6 54 ,4 35 9 ,7 24 ,2 43 1 2,29 2,77 0


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References:

Marketing Management A South Asian Perspective 13the ByKotler, Keller, Koshy, Jha

Principles of Marketing 11the Kotler & Armstrong

Mckinsey Global Institute

SIAM

Marketing Whitebook 2006, Business World

Economic Times

Mint

Times of India

Multiple Resources on Internet

marketing introduction and scope

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