marketing session 2
Post on 13-Sep-2014
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shantanu sir's pptTRANSCRIPT
Metamarkets:Metamarkets: Markets in the Minds of the Markets in the Minds of the CustomerCustomer
Customers think of Customers think of activitiesactivities,firms think of ,firms think of productsproducts
e.g. The Home Ownership Experiencee.g. The Home Ownership Experience
Customers think ofCustomers think of logically relatedlogically related activity clusteractivity cluster
*Buying and financing a home*Buying and financing a home*Repair and Maintenance*Repair and Maintenance
•Home ImprovementHome Improvement
Home Ownership MetamarketHome Ownership Metamarket
Real Estate AgentsReal Estate Agents
BuildersBuilders
Municipal CorporationsMunicipal Corporations
Electricity CosElectricity Cos
PlumbersPlumbers
ElectriciansElectricians
Lawncare Service ProvidersLawncare Service Providers
ArchitectsArchitects
Interior DesignersInterior Designers
MetamarketsMetamarkets
Around major life events:Around major life events:WeddingWedding
ChildbirthChildbirth
EducationEducation
Career ChangesCareer Changes
RetirementRetirement
Around Major AssetsAround Major AssetsHome OwnershipHome Ownership
Automobile OwenershipAutomobile Owenership
Financial AssetsFinancial Assets
MetamediariesMetamediaries
Trusted Trusted third partiesthird parties that provide a that provide a single point of contact single point of contact betweenbetween
A community of customersA community of customers
AndAnd
A community of sellers in a marketplaceA community of sellers in a marketplace
Marketer and ProspectMarketer and Prospect
A marketer seeks a A marketer seeks a response response from a prospectfrom a prospect
Response could be in several forms:Response could be in several forms:
– PurchasePurchase
– VoteVote
– Expression of InterestExpression of Interest
– ContributionContribution
Needs,Wants and DemandsNeeds,Wants and Demands
Needs: Needs:
Basic Human RequirementsBasic Human RequirementsFoodFoodAirAirClothingClothingShelterShelterRecreationRecreationEducationEducationEntertainmentEntertainment
WantsWants
Needs directed to Needs directed to specific objects specific objects that that satisfy the needssatisfy the needs
An American and an Indian: Both need An American and an Indian: Both need food. American wants hamburger,Indian food. American wants hamburger,Indian wants rotiwants roti
Wants are Wants are shaped by one’s societyshaped by one’s society
DemandsDemands
Wants for specific products Wants for specific products backed by backed by ability to payability to pay
Point to RememberPoint to Remember
Marketers do not create needs,Marketers do not create needs,
They influence wantsThey influence wants
Value PropositionValue Proposition
Set of Benefits Set of Benefits offered by marketersoffered by marketers to to customers to satisfy their needscustomers to satisfy their needs
India-An attractive value proposition for India-An attractive value proposition for outsourceresoutsourceres
Set of Benefits:Set of Benefits:
Reduction of process costs by 40-60%Reduction of process costs by 40-60%
Abundant supply of qualified workforceAbundant supply of qualified workforce
Good English speaking skillsGood English speaking skills
Lower Establishment CostsLower Establishment Costs
Improving Telecom InfrastructureImproving Telecom Infrastructure
Government support for IT/ITESGovernment support for IT/ITES
Market OfferingMarket Offering
Value Proposition is not concreteValue Proposition is not concrete
Market Offering: A Tangible offer from a Market Offering: A Tangible offer from a companycompany
Combination of:Combination of:ProductProductAnd/or ServiceAnd/or ServiceInformationInformationExperienceExperience
BrandBrand
Offering from a Offering from a known sourceknown source
is a is a
NameName
TermTerm
DesignDesign
SymbolSymbol
Any other FeatureAny other Feature
That That identifiesidentifies one sellers’ goods and services as one sellers’ goods and services as distinctdistinct from from othersothers
Fundamentals of Customer ValueFundamentals of Customer Value
What customers care about?What customers care about?
What Vale Proposition appeals to them?What Vale Proposition appeals to them?
Value-The Dictionary MeaningValue-The Dictionary Meaning
““Worth” in usefulness or importance to the Worth” in usefulness or importance to the possessor”possessor”
Value…An assessmentValue…An assessment
An assessment of:An assessment of:
ALL THAT YOU GETALL THAT YOU GET
In return forIn return for
ALL THAT YOU GIVEALL THAT YOU GIVE
In an exchangeIn an exchange
Value….A better DefinitionValue….A better Definition
Perceived Worth Perceived Worth of a set of benefits of a set of benefits received in exchange for the received in exchange for the Total Cost Total Cost of of an offering,taking into consideration an offering,taking into consideration available available competing competing offerings and pricesofferings and prices
A new BMW buyerA new BMW buyer
What does she getWhat does she get
Benefits from the ProductBenefits from the Product
PerformancePerformance
ComfortComfort
SafetySafety
Benefits from ServiceBenefits from Service
FinancingFinancing
WarrantyWarranty
RepairsRepairs
Scheduled MaintenanceScheduled Maintenance
Roadside AssistanceRoadside Assistance
Emotional Benefits: Emotional Benefits: Social statusSocial status
A new BMW buyerA new BMW buyer
What does she give?What does she give?
Involvement in time,money,efforts in follwing activitiesInvolvement in time,money,efforts in follwing activities
Searching for right carSearching for right car
Searching for right dealerSearching for right dealer
Negotiating dealNegotiating deal
Arranging for FinanceArranging for Finance
Maintaining car over lifetimeMaintaining car over lifetime
Customer Value for a new BMW buyerCustomer Value for a new BMW buyer
Customer will assess these benefits Customer will assess these benefits
Weighed by Weighed by ImportanceImportance she gives to these benefits she gives to these benefits
Compared with Compared with Total Cost of buying and owning the carTotal Cost of buying and owning the car
Assessment of Value affected by:Assessment of Value affected by:
Other new cars in considerationOther new cars in consideration
Currently owned carCurrently owned car
Alternatives of public transportationAlternatives of public transportation
ExchangeExchange
Process of obtaining desired product from Process of obtaining desired product from someone by offering something in returnsomeone by offering something in return
Is a Value-creating processIs a Value-creating process
Exchange….Five ConditionsExchange….Five Conditions
At least two partiesAt least two parties
Each has something of Value to the otherEach has something of Value to the other
Each is capable of communicating and deliveryEach is capable of communicating and delivery
Each free to accept or reject the offerEach free to accept or reject the offer
Each believe it is appropriate/desirable to deal Each believe it is appropriate/desirable to deal with third partywith third party
TransactionTransaction
Said to take place when an exchange Said to take place when an exchange actually happensactually happens
An exchange where the two parties agree An exchange where the two parties agree upon terms and there is a upon terms and there is a trade of valuestrade of values
BarterBarter
Transaction involving trading of goods and Transaction involving trading of goods and services for other goods and servicesservices for other goods and services
Transaction-Several DimensionsTransaction-Several Dimensions
Agreed-upon ConditionsAgreed-upon Conditions
Time of AgreementTime of Agreement
Place of AgreementPlace of Agreement
TransferTransfer
Giver does not receive any tangible Giver does not receive any tangible returns:returns:
GiftsGifts
SubsidiesSubsidies
Charitable ContributionsCharitable Contributions
A marketer seeks responseA marketer seeks response
Behavioural Response from a prospect:Behavioural Response from a prospect:
An educational institute seeks enrolmentAn educational institute seeks enrolment
A business firm seeks purchaseA business firm seeks purchase
A political candidate seeks voteA political candidate seeks vote
Two-Way Exchange MapTwo-Way Exchange Map
Student Want List1. High Quality Faculty2.Contemporary course
Content3. Quality Physical
Infrastructure4. Placement Assistance
Amplify(Marketer)
Student(Prospect)
Amplify Want List1. Good Price
for services delivered2.On-time payment
3. Good WOM
Stages of the Exchange ProcessStages of the Exchange Process
Offer from Marketer to prospect
Analysis of others’ needs
Counteroffer from Prospect to marketer
ExchangeSuccessful
Exchange Unsuccessful
If there is agreement on T & C
If there is no agreement on
T & C
Relationship MarketingRelationship Marketing
Business Philosophy Business Philosophy which aims to develop which aims to develop strong relationships with a range of strong relationships with a range of stakeholders:stakeholders:
CustomersCustomers
SuppliersSuppliers
IntermediariesIntermediaries
Public OrganizationsPublic Organizations
Relationship CapitalRelationship Capital
Relationships are the new capitalRelationships are the new capital
Relationship Capital drives market valueRelationship Capital drives market value
Winning companies build relationship capitalWinning companies build relationship capital
Relationships Matter more than everRelationships Matter more than ever
Partner RelationshipsPartner Relationships
As transaction costs decrease, firms will As transaction costs decrease, firms will outsource more of their non core activitiesoutsource more of their non core activities
The core of the firm will shrink,while the The core of the firm will shrink,while the periphery will expandperiphery will expand
Relationships matter more than everRelationships matter more than ever
Customer RelationshipsCustomer Relationships
As markets saturate and new customers become As markets saturate and new customers become scarce,firms will need toscarce,firms will need to
Retain existing customers Retain existing customers more aggressivelymore aggressively
Generate more revenues Generate more revenues from each customerfrom each customer
Relationships matter more than everRelationships matter more than ever
Employee RelationshipsEmployee Relationships
To win the “war for talent”, firms will need to:To win the “war for talent”, firms will need to:
AttractAttract and and RetainRetain the best employees the best employees
Improve the Improve the productivity productivity of their employeesof their employees