over view of marketing managament

8/9/2019 Over View of Marketing Managament

1/114

1

MARKETING MANAGEMENT

:-Prepared ByDipa ShahNikita SanghviKrishna Rajput

Bharat MaheshwariMitesh Shah

Keyur Savalia


2/114

2

vvINTRODUCTION

v PRODUCT AND SERVICE

vPRICINGvPLACE

v PROMOTION

v GLOBAL BUSINESS

v

v

v

FLOW OF PRESENTATION


3/114

3

P h i l o s o p h yF u n c t i o nM a n a g e m e n tO r i e n t a t i o n

+

WHAT IS MARKETING ?

S e t o f,c t i v i t i e s

:n c l u d i n gProductsServices

ricingPromotion

Distribution


4/114

4

:The American Marketing Association DefinitionMarketing is the process of planning and

executing the

, , ,conception pricing promotion and distributionof , ,ideas goods and services to create exchanges

that

.satisfy individual and organizational goals

WHAT IS MARKETING ?


5/114

5

OtherFunctionalAreasBranding

TestMarketing

fterSaleServiceersonal

SellinghysicalDistributi

on

Pricing

alesPromotion

Advertising

roductDevelopment

MarketResearch

MARKETING

FUNCTIONS OF MARKETING


6/114

6 eeds are basic human requirements which

.need to be fulfilled in order to surviveThe needs become ants when they are

directed to specific objects that may satisfy.the need emands are wants or desires backed by

&ability to pay willingness to buy specific

.products

, &NEEDS WANTS DEMANDS


7/114

7

A Marketer is someone seeking a response from

, .another party called the prospect Marketis a group of people or

, &organization with needs or wants with the& .ability willingness to buy

, &MARKETERS PROSPECTS A MARKET


8/114

8

Desire to Deal With Other Part

Freedom to Accept or Reject

Something of Value

Ability to Communicate Offer

At Least Two Parties

essary Conditions for Exchange

xchange involves obtaining a desiredproduct from someone by offering something.in return

THE EXCHANGE CONCEPT


9/114

9

Customer value is the bundle ofbenefits customers expect from

.a given product or service

Its no longer enough to satisfy,the customer you must!delight them

.Customers are value maximizers

Marketing is process of ValueCreation between two entities

through the process of.transaction

CUSTOMER VALUE


10/114

10

Customer Satisfaction is a consumer s feelingsresulting

from comparing a product s outcome in relationto

/ .his her expectations

A marketer must meet or exceed customer s .expectations

.Focus on keeping customers satisfied

.Provide solutions to customer s problems

CUSTOMER SATISFACTION


11/114

11

Customer retention is about developing loyal& .customers building long term relationships

The key to customer retention is customer.satisfaction

A Highly satisfied customer

.always stays loyal to the company

pays less attention to competing brands& .is less sensitive to price

Costs less to serve than new customers.as the transactions are reutilized

&Talks favorably about the company its.products

CUSTOMER RETENTION


12/114

12

Production ConceptProduction Concept

Product ConceptProduct Concept

Selling ConceptSelling Concept

Marketing ConceptMarketing Concept

Consumers prefer products that arewidely available and inexpensive

Consumers favor products that

offer the most quality,performance,

or innovative featuresConsumers will buy products only if

the company aggressively

promotes/sells these productsFocuses on needs/ wants of target

markets & delivering valuebetter than competitors

COMPANY ORIENTATIONS TOWARDS THE MARKETPLACE


13/114

13

=Societal Marketing

+ Consumer Satisfaction Company s

+ Profits Society s well being

Societal Marketing Focuses on satisfyingSocietal Marketing Focuses on satisfying&customer needs wants while enhancing&customer needs wants while enhancing

& -individual societal well being& -individual societal well being

SOCIETAL MARKETING


14/114

MARKETING PROCESS


15/114

15

-MARKETING ENVIRONMENT INTERNAL


16/114

16

-MARKETING ENVIRONMENT EXTERNAL


17/114

17

Marketing mix is a set of marketingvariables that the firm uses to pursue its.marketing objectives in the target market

.E Jerome McCarthy classified these

,variables which he called the our Ps of.arketing

PRODUCT

PRICE

PLACE

PROMOTION

MARKETING MIX


18/114

18

,Apart from the 4 Ps of Marketing therehave been attempts to develop an extendedmarketing mix to better accommodate

.specific aspects of marketing

People

Process Physical Environment

MARKETING MIX


19/114

19

Gather, analyze, interpret information about environmentGather, analyze, interpret information about environment

Understand organizations mission and marketings roleUnderstand organizations mission and marketings role

Conduct a market opportunity analysisConduct a market opportunity analysis

Implement the marketing strategyImplement the marketing strategy

Evaluate marketing efforts and make changesEvaluate marketing efforts and make changes

Develop a marketing strategyDevelop a marketing strategy

MARKETING ACTIVITIES


20/114

20

Consumer Buying Behavior refers to thebuying behavior of final consumers

( & )individuals households who buy

goods and services for personal.consumption :Study consumer behavior to answerHow do consumers respond to marketing

efforts the company might use?

CONSUMER BUYING BEHAVIOR


21/114

21

MarketingandOtherStimuliMarketingandOtherStimuli

BuyersBlackBoxBuyersBlackBox

BuyersResponseBuyersResponse

ProductProduct

PricePricePlacePlace

PromotionPromotion

EconomicEconomic

TechnologicTechnologicalal

PoliticalPolitical

CulturalCultural

CharacteristCharacteristicsics

AffectingAffectingConsumerConsumer

BehaviorBehavior

Buyer sBuyer sDecisionDecision

ProcessProcess

ProductProductChoiceChoice

Brand ChoiceBrand Choice

Dealer ChoiceDealer Choice

PurchasePurchaseTimingTiming

PurchasePurchaseAmountAmount

MODEL OF CONSUMER BEHAVIOR


22/114

22

BuyerBuyer

PsychologicalPersonalSocialCulture

FACTORS AFFECTING CONSUMER BEHAVIOR


23/114

Most basic cause of a person's wants and

.behavior Values Perceptions

Social Class

People within a social class tend to exhibit similar

Occupation

IncomeEducation

Wealth

.th shared value systems based on common life experiences

nsumers

umers

CULTURE FACTORS


24/114

24

Groups

Membership

Reference

Groups

Membership

Reference

Family

Husband,wife,kids

Influencer,buyer,user

Family

Husband,wife,kids

Influencer,buyer,user

RolesandStatusRolesandStatus

SocialFactorsSocialFactors

SOCIAL FACTORS


25/114

25

PersonalInfluences

AgeandFamilyLifeCycleStage

Occupation

EconomicSituation

LifestyleIdentification

Activities Opinions

Interests

Personality&Self-Concept

PERSONAL FACTORS


26/114

26

PsychologcalFactors

Motivation

Learning

PerceptionBeliefs andAttitudes

PSYCHOLOGICAL FACTORS

Esteem Needs(self-esteem, status)

Social Needs(sense of belonging, love)

Safety Needs(security, protection)

Physiological Needs(hunger, thirst)

SelfActualization

(Self-development)

Esteem Needs(self-esteem, status)

Social Needs(sense of belonging, love)

Safety Needs(security, protection)

Physiological Needs(hunger, thirst)

SelfActualization

(Self-development)


27/114

27

S

ComplexBuying

Behavior

Dissonance-

ReducingBuyingBehavior

Variety-Seeking

Behavior

Habitual

BuyingBehavior

HighInvolvement

Significantdifferences

betweenbrands

Fewdifferences

between

brands

LowInvolvement

TYPES OF BUYING DECISIONS


28/114

28

NeedRecognition

InformationSearch

EvaluationofAlternatives

PurchaseDecision

PostpurchaseBehavior

THE BUYER DECISION PROCESS


29/114

29

External StimuliTV advertisingMagazine adRadio sloganStimuli in the

environment

External StimuliTV advertisingMagazine ad

Radio sloganStimuli in the

environment

Internal StimuliHungerThirst

A persons normalneeds

Internal StimuliHungerThirst

A persons normalneeds

Need RecognitionDifference between an actualstate and a desiredstate

Need RecognitionDifference between an actualstate and a desiredstate

THE BUYER DECISION PROCESS.STEP 1 NEED RECOGNITION

THE BUYER DECISION PROCESS


30/114

30

Family, friends, neighborsMost influential source of information

Advertising, salespeopleReceives most information

from these sources

Mass MediaConsumer-rating groups

Handling the productExamining the productUsing the product

PersonalSourcesPersonalSources

CommercialSourcesCommercialSources

PublicSourcesPublicSources

ExperientialSourcesExperientialSources

THE BUYER DECISION PROCESS.STEP 2 INFORMATION SEARCH


31/114

31

Product AttributesEvaluation of Quality, Price, & Features

Product AttributesEvaluation of Quality, Price, & Features

Degree of ImportanceWhich attributes matter most to me?

Degree of Importance

Which attributes matter most to me?

Brand BeliefsWhat do I believe about each available

brand?

Brand BeliefsWhat do I believe about each available

brand?

Total Product Satisfaction

Based on what Im looking for, how satisfiedwould I be with each product?

Total Product Satisfaction

Based on what Im looking for, how satisfiedwould I be with each product?

Evaluation ProceduresChoosing a product (and brand) based on one

or more attributes.

Evaluation ProceduresChoosing a product (and brand) based on one

or more attributes.

THE BUYER DECISION PROCESS.STEP 3 EVALUATION OF ALTERNATIVES


32/114

32

Purchase IntentionDesire to buy the most preferred brand

Purchase IntentionDesire to buy the most preferred brand

Purchase Decision

Purchase Decision

Attitudesof others

Unexpectedsituationalfactors

THE BUYER DECISION PROCESS.STEP 4 PURCHASE DECISION


33/114

33

Consumers Expectations of

Products Performance

Consumers Expectations of

Products Performance

Dissatisfied CustomerDissatisfied CustomerSatisfiedCustomer

SatisfiedCustomer

Products Perceived

Performance

Cognitive Dissonance

THE BUYER DECISION PROCESS.STEP 5 POST PURCHASE BEHAVIOUR


34/114

34

AwarenessAwareness

InterestInterest

EvaluationEvaluation

TrialTrial

AdoptionAdoption

STAGES IN THE ADOPTION PROCESS


35/114


36/114

36

DivisibilityCan the innovation

be used on atrial basis?

CompatibilityDoes the innovation

fit the values and

experience of thetarget market?

ComplexityIs the innovation

difficult tounderstand or use?

Relative AdvantageIs the innovation superior

to existing products?

CommunicabilityCan results be easily observed

or describedto others?

ProductCharacteristic

s

LUENCES ON THE RATE OF ADOPTION OF NEW PRODU

STEPS IN SEGMENTATION


37/114

37

1. Identify Basesfor Segmenting the Market

2. Develop Profilesof Resulting Segments

3. Develop Measuresof Segment Attractiveness

4. Select TargetSegment(s)

5. Develop Positioningfor Each Target Segment

6. Develop MarketingMix for Each Target Segment Market

Positioning

MarketTargeting

Market Segmentation

,STEPS IN SEGMENTATION,TARGETING AND POSITIONING

STEP 1 MARKET SEGMENTATION


38/114

38

MassMarketingSameproducttoallconsumers

(nosegmentation)

SegmentMarketingDifferentproductstooneormoresegments

(somesegmentation)

MicromarketingProductstosuitthetastesofindividualsorlocations

(completesegmentation)

NicheMarketing

Differentproductstosubgroupswithinsegments(moresegmentation)

.STEP 1 MARKET SEGMENTATIONLEVELS OF MARKET SEGMENTATION


39/114

39

Geographic

Demographic

Age, gender, family sizeand life cycle, or income

Psychographic

Social class, lifestyle, orpersonality

Behavioral

Occasions, benefits, uses,or responses

Nations, states,regions or cities

.STEP 1 BASES FOR SEGMENTING CONSUMER MARKET


40/114

40

DemographicsPersonalCharacteristics

Situational

Factors

Operating

Characteristics

PurchasingApproaches

.STEP 1 BASES FOR SEGMENTING BUSINESS MARKET

STEP 1 MARKET SEGMENTATION


41/114

41

Size, purchasing power, profilesof segments can be measured.

Segments must be effectivelyreached and served.

Segments must be large orprofitable enough to

serve.

MeasurableMeasurable

AccessibleAccessible

SubstantialSubstantial

DifferentialDifferential

ActionableActionable

Segments must responddifferently to different marketingmix elements & actions.

Must be able to attract and servethe segments.

.STEP 1 MARKET SEGMENTATIONREQUIREMENTS

STEP 2 MARKET TARGETING


42/114

42

Segment Size and Growth ,Analyze sales growth rates and expected.profitability

Segment Structural Attractiveness : ,Consider effects of Competitors

,Availability of Substitute Products and& .the Power of Buyers Suppliers

Company Objectives and Resources

&Company skills resources relative to( ).the segment s

.Look for Competitive Advantages

.STEP 2 MARKET TARGETINGEVALUATING MARKET SEGMENTS

STEP 2 MARKET TARGETING


43/114

43

Segment1Segment1

Segment2Segment2

Segment3Segment3

Segment1Segment1

Segment2Segment2

Segment3Segment3

CompanyMarketing

Mix

CompanyMarketingMix

CompanyMarketing

Mix

CompanyMarketing

Mix

Company

MarketingMix1CompanyMarketingMix1

CompanyMarketingMix2




MarketMarket

A. Undifferentiated Marketing

B. Differentiated Marketing

C. Concentrated Marketing

.STEP 2 MARKET TARGETINGMARKET COVERAGE STRATEGIES


44/114

44

CompanyResources

Product

Variability

Products Stagein the Product Life Cycle

MarketVariability

CompetitorsMarketing Strategies

.STEP 2 MARKET TARGETING-CHOOSING A MARKET COVERAGE STRATEGY


45/114

45

-Product s Position the place the productoccupies in consumers minds relative to

; . .competing products i e Volvo positions

.on safety

:Marketers must

Planpositions to give products thegreatest advantage

Develop marketing mixes to createplanned positions

.TEP 3 POSITIONING FOR COMPETITIVE ADVANTAG

STEPS TO CHOOSING AND IMPLEMENTING


46/114

46

Step 1. Identifying a set of possible competitiveadvantages: Competitive Differentiation.

Step 2. Selecting the right competitive advantage.

Step 3. Effectively communicating and delivering

the chosen position to the market.

STEPS TO CHOOSING AND IMPLEMENTINGA POSITIONING STRATEGY

SELECTING THE RIGHT


47/114

47

CriteriaFor

DeterminingWhich

Differencesto

Promote

AffordableAffordable SuperiorSuperior

ProfitableProfitable

PreemptivePreemptive

DistinctiveDistinctive

ImportantImportant

CommunicableCommunicable

SELECTING THE RIGHTCOMPETITIVE ADVANTAGES


48/114

48

,The end result of the manufacturing processto be

offered to the marketplace to satisfy a need.or want

HAT IS PRODUCT?


49/114


50/114

50

TYPES OF CONSUMER PRODUCTS

TYPES OF INDUSTRIAL PRODUCTS


51/114

51

TYPES OF INDUSTRIAL PRODUCTS

WHAT IS SERVICES?


52/114

52

Any activity or benefit that one party canoffer to another that is essentially

intangible and does not result in the.ownership of anything

WHAT IS SERVICES?

CHARACTERISTICS OF SERVICE


53/114

53

Intangibility

Inseparability

Variability

Perishability

CHARACTERISTICS OF SERVICE


54/114

54

:roduct design,Product design is the generation of ideas

concept,development testing and manufacturing or

.implementation of a physical object:roduct positioning

Product positioning is the consumer perception

of a product or service as compared to it's.competition

roduct development :I mproving an existing product or developing new

kinds of products a set of activities beginningwith the perception of a market opportunity and, ,ending in the production sale and delivery of a

.product

PRODUCT MIX


55/114

55

Product Mix means the total sum of all the

product items and their variants offered by. ., , ,an organization e g books videos story

, .hours etc

- Width how many product lines a company.has

- Length how many products are there in a.product line

- Depth how many variants of each product.exist within a product line- Consistency how closely related the

.product lines are in end use

PRODUCT MIX


56/114

56

Idea Generation and Screening Concept Development and Testing

Marketing Strategy Business Analysis Product Development Test Marketing Commercialization

NEW PRODUCT DEVELOPMENT PROCESS

PRODUCT LIFE CYCLE


57/114

57

roduct life cycleroduct life cycle: progression of, ,products through introduction growth,maturity and decline stages

PRODUCT LIFE CYCLE

PRODUCT LIFE CYCLE


58/114

58Introduction Stage Growth Stage Maturity Stage Decline Stage

SALES Low Sales Rapidly rising sales Peak sales Declining sales

COSTS High cost per customers Average cost percustomer

Low cost per customers Low cost per customer

PROFITS Negative Rising profit High profits Declining profitsARKETINGOBJECTIVES &Create product awarenesstrial Maximize market share Maximize profit whiledefending market share &Reduce expendituremilk the brand

PRODUCT Offer a basic product Offer product, ,extensions service

warranty

Diversify brand andmodels

Phase out weak items

PRICE -Use cost plus Price to penetratemarket

Price to match or bestcompetitors

Cut price

DISTRIBUTION Build selectivedistribution

Build intensivedistribution

Build more intensivedistribution

:Go selective Phaseout unprofitable

outlets

ADVERTISEMENT Build product awareness&among early adopters

dealers

Build awareness andinterest in the mass

market

Stress brand&differences benefits

Reduced to levelneeded to retain

-hard core loyalcustomers

PRODUCT LIFE CYCLE

P i i


59/114

59

PricePrice Factor to consider when setting pricesFactor to consider when setting prices

Customer value perceptionCustomer value perception Company and product costCompany and product cost

Other internal and external considerationsOther internal and external considerations

affecting price decisionsaffecting price decisions

Pricing

Customer value perception


60/114

60

-

Good value pricing Value added pricing

Customer value perception( )Value based pricing

Company and product cost


61/114

61

Company and product cost( )Cost based pricing


62/114

62

nal and external considerations affecting pr


63/114

63

Price Changes


64/114

64

Price Changes

Public policy and Pricing


65/114

65

Public policy and Pricing

Distribution Channel


66/114

66

A marketing channel is a set ofindependent organizations that help

make a product or service availablefor use or consumption by the

.consumer or business unitsChannel decision involves

Long term Commitments

Other marketing activities

Distribution Channel

Role of Intermediaries


67/114

67

vGreater efficiency Contacts Experience Scale of operation SpecializationvMatch supply and demand

v

Role of Intermediaries

Functions of Channel


68/114

68

vInformationvPromotionvMatchingvNegotiationvPhysical distributionvFinancingvRisk management

Functions of Channel


69/114

Marketing Systems


70/114

70

Conventional Vertical Marketing Systems

Corporate Contractual

Administered

Marketing Systems

Channel design decision


71/114

71

AnalyzingConsumerServiceNeedsAnalyzingConsumerServiceNeeds

SettingChannelObjectives&Constraints SettingChannelObjectives&Constraints

ExclusiveDistributi

on

ExclusiveDistribution

SelectiveDistributi

on

SelectiveDistribution

IntensiveDistributionIntensive

Distribution

IdentifyingMajorAlternativesIdentifyingMajorAlternatives

EvaluatingtheMajorAlternativesEvaluatingtheMajorAlternatives

d g d

Channel management decision


72/114

72

Selecting

Motivating

EvaluatingFEE

DBA

C

K

Channel management decision

Logistics


73/114

73

Involves supply chain -Effective logistics key to win and retain

customer

Logistic major cost component

-Need created Explosion in product varieties IT distribution efficiencies

Logistics

Goals of logistic systems


74/114

74

Provide a Targeted Level of Customer.Service at the Least Cost

, .Maximize Profits Not Sales

Goals of logistic systems

Logistic function


75/114

75

Design a system to minimize cost Warehousing Inventory management Transportation

Logistic function

Integrated logistic management


76/114

Concept Recognizes that Providing BetterCustomer Service and Trimming DistributionCosts Requires TeamworkTeamwork, Both Inside the

Company and Among All the Marketing

.Channel Organizations

Cross functional team work Channel partnership .Third party logistic

Integrated logistic management


77/114


78/114

Major Store Retailer Type


79/114

79

Specialty stores Department stores Super markets Convenience Stores Discount stores

Off price retailers Super stores

Category killers

Major Store Retailer Type


80/114

Wheel or retailing


81/114

81

A concept of retailing that states that new-types of retailer usually begins as low, - , -margin low price low status operations

- ,but later evolve into high priced higher

service operations eventually become like

.the conventional retailers they replaced

Wheel or retailing

Wholesaling


82/114

82

Introduction Includes all activities involved in selling

goods and services to those buying for.resale or business use

Significance Key component of the distribution channel

Wholesaling

Types of wholesalers


83/114

83

Merchant wholesalers Full service wholesalers Wholesale merchant Industrial distributor

Limited service wholesaler - -Cash and carry wholesaler Truck jobbers Drop shippers Rack jobbers Producers cooperative -Mail order wholesaler

Brokers and Agents

Types of wholesalers

Wholesaler market decision


84/114

84

Target market and positioning decision Marketing mix decision

Wholesaler market decision

Promotion Mix


85/114

Advertising

Sales Promotion

Public Relations and PublicityPersonal Selling

Direct and Interactive Marketing

Promotion Mix

Advertisement


86/114

I get people to know about my business so that it


87/114

Advertising Objectives


88/114

INFORMATIVE

PERSUASIVE

REMINDER

Reinforcement

Advertising objective is a specific communications

task and achievement level to be accomplished with a

specific audience in a specific period of time

INFORMATIVE

Informative AdvertisingAims to create brand awareness and Knowledge ofnew

products or new Features of existing features

PERSUASIVE Persuasive Advertising, ,Aims to create liking preference conviction

andpurchase of a product or serviceReinforcement

Reinforcement AdvertisingAims to convince current purchasers

that-they have made the right choice cars

REMINDER

Reminder Advertising Aims to stimulate repeat purchase of

-Products and services

INFORMATIVE

Advertisement


89/114

handa Matlab Dimag Ki Batti JalaDe

Sales Promotion


90/114

Definition :Any activity or material used as a direct

inducement to purchase

argeted toward : Sales force Wholesalers and retailers

Consumers

Sales Promotion Methods for Consumers


91/114

Product sampling, demonstrations

Coupons, refunds

Contests, games & sweepstakes

Multiple purchase offers,Frequent-user incentives

Classifying Types of Sales Promotion


92/114

Promotionalpricing

Pricereductions

Free goods Tied offers

Money off nextpurchase

Non-pricepromotions

Contests

Free gifts -Self supporting

offers

-Multi brand promos Guarantees and

added services

Sampling

Most effective inthe early stagesof a new product

(#launch 1 use)for coupons

Important for newproducts

Very expensive

Personal Selling


93/114

Interpersonal promotional process involving a

- -seller s person to person presentation to aprospective buyer

Objective

Cultivating newclientsCommunication

Selling

Servicing

Information gatheringAllocating scarce

resources

Examples of Personal Selling


94/114

Telemarketing

Inside selling

Retail selling

Field selling

Examples of Personal Selling

Process of Personal Selling


95/114

PROSPECTING: IDENTIFYING POTENTIAL CUSTOMERS

APPROACHING THE PROSPECT

FOLLOWING UP

CLOSING THE SALE

HANDLING OBJECTIONS

MAKING THE SALES PRESENTATION

:re approach QUALIFYING PROSPECTS

Public Relations and Publicity


96/114

Direct Marketing


97/114

According to the Direct Marketing

( ),Association DMA irect marketing is

efined an interactive marketing systemthat uses one or more advertizing media to

/affect a measurable response and or.transaction at any location

- -Face to face sellingDirect mailCatalog marketing

Telemarketing-Direct response television

marketingKiosk marketing

Major Channels

- -Face to face selling


98/114

Direct Mail


99/114

Catalog Marketing


100/114

Telemarketing


101/114


102/114

Media Marketing


103/114


104/114

Global firm


105/114

105

A firm that, by operating in more thanone countries and gains R&D,Production, Marketing, and Financialadvantages in its costs and reputation

that are not available to purely domaincompetitors.


106/114

Major International Marketing Decision


107/114

107

Market Entry Strategies


108/114

108

, ,Among of Commitment Risk Control and Profit

Potential

Whole channel concept for international marketing


109/114

109


110/114


111/114


112/114


113/114


114/114

over view of marketing managament

Documents