Prof.Priyanka

HoD- MBA

Koshys Institute of Management Studies

Topic :-Introduction To Marketing for Customer Value

Subject :-Marketing for Customer Value

Class :-I Semester MBA

FLOW STRUCTURE IN MODERN EXCHANGE ECONOMY

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What is Marketing?

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

communicating, and delivering value to customers and for managing

customer relationships in ways that benefit the

organization and its stakeholders.

Simple Marketing System

Industry

(a collection

of sellers)

Market

(a collection

of Buyers)

Products/services

Money

Communication

Information

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What is Marketed?

• Goods (tangible)

• Services (intangible)

• Events (time based—trade

shows) and Experiences (Theme parks)

• Persons (Artists, Musicians,

CEO, Physicians)

• Places (Cities, States, Regions,

Nations) and Properties (Intangible rights of ownership of real estate or financial properties)

• Organizations (Universities,

Museums, Performing Arts Organization)

• Information (Books, Schools,

Magazines)

• Ideas

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Marketing Management Tasks• Developing marketing

strategies (strategic fit)

• Capturing marketing insights (obtaining information)

• Connecting with customers (relationships)

• Building strong brands(understand strengths and weaknesses)

• Shaping market offerings

• Delivering value

• Communicating value

• Creating long-term growth(positioning and new-product development)

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Core Concepts

• Needs, wants, and demands

• Segmentation, Target markets, positioning (in mind of target buyers)

• Offerings and brands (offering from a known source)

• Value and satisfaction(set of benefits )

• Marketing channels(communications, distribution, and service)

• Supply chain

• Competition

• Marketing environment-task and broad environment

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The marketplace isn’t what it used to be…

Changing technology (digital revolution)

Globalization (transportation, shipping, communication)

Deregulation (airlines industry)

Privatization (British Airways and British telecom)

Heightened competition (Domestic, Foreign, Store and Brands)

Customization

Convergence (Computing and consumer electronics—Dell/ HP)

Disintermediation

Production Concept

Product Concept

Selling Concept

Marketing Concept

Consumers prefer products that are widely available and inexpensive

Consumers favor products thatoffer the most quality, performance,

or innovative features

Consumers will buy products only ifthe company aggressively

promotes/sells these products

Focuses on needs/ wants of target markets & delivering value

better than competitors

Company Orientations Towards the Marketplace

Production Concept

Consumers prefer products

that are widely available and inexpensive

Product Concept

Consumers favor products thatoffer the most quality,

performance,or innovative features

Selling Concept

Consumers will buy products only if

the company aggressivelypromotes/sells these products

Marketing Concept

Focuses on needs/ wants of target

markets & delivering value

better than competitors

Production-Oriented and Marketing-Oriented Managers Have Different Views of the Market

MarketIntegratedmarketing

Profits throughcustomer

satisfaction

Customerneeds

(b) The marketing concept

FactoryExisting

productsSelling andpromotion

Profits throughsales volume

Startingpoint Focus Means Ends

(a) The selling concept

Marketing and Sales Concepts Contrasted

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Holistic Marketing Dimensions

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The Four P’s of Marketing

Marketing Concept - The 4 P’sThe 4 Cs

Marketing

Mix

Product

Price

Promotion

Place

Customer

Solution

Customer

CostCommunication

Convenience

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Marketing-Mix Strategy

Importance of marketing in Indian economy

1.Increase in employment opportunities2.Balanced growth of the country3.Increase in per capita income4.Increase in the sale of goods5.Increase in profits6.Development of the means of the communication7.Development of the means of the transportation8.Development of the banking and insurance industries9.Expansion in scope and area of marketing10.Improvement in the standard of living11.Industrial progress12.Maximum utilization of available resources

STRATEGIC PLANNING

• Levels of Strategic planning

1.Corporate level

2.Division level

3.Business level

4.Product level

The strategic planning, Implementation,and control process

Corporate and division strategic planning

• Defining the corporate mission

• Establishing strategic business units

• Assigning resources to each SBU

• Assessing growth opportunities

Good Mission Statements

• Focus on a limited number of goals

• Stress major policies and values

• Define major competitive spheres

• Take a long-term view

• Short, memorable, meaningful

• Google mission

“To organize the world’s information and make it universally accessible and useful”.

Infosys:

“To achieve our objectives in an environment of fairness, honesty, and courtesy towards our clients, employees,vendors and society at large.”

Characteristics of SBUs

• It is a single business or collection of related businesses

• It has its own set of competitors

• It has a leader responsible for strategic planning and profitability

Assessing growth opportunities

Business unit strategic planning process

Business unit strategic planning

• The business mission

• SWOT Analysis

• Goal formulation

• Strategic formulation

• Program formulation and implementation

• Feedback and control

Goal Formulation

• They must be arranged hierarchically, from the most to the least important.

• Objectives should be quantitative whenever possible.

• Objectives should be realistic.

• Objectives must be consistent

Strategic Formulation

• Porter’s generic strategies

• Overall cost leadership

• Differentiation

• Focus

Product planning: The Nature and contents of a Marketing Plan

• Executive summary and table of contents

• Situation analysis

• Marketing Strategy

• Financial projections

• Implementation controls

Scanning the environment

The demographic environment

• World wide population growth

• Population age mix

• Literacy levels of population

Economic Environment

Households Annual IncomeDestitutes Rs 16,000Aspirants Rs 16,000-22,000Climbers Rs 22,000-45,000Consuming Class Rs 45,000-2,15,000Rich > 2,15,000

•Income Distribution

• Social cultural environment

• Natural environment

Technological environment

• Accelerating pace of change

• Unlimited opportunities for innovation

• Varying R&D budgets

• Increased regulation of technological change

Political legal environment

• Increase in business legislation

• Growth of special interest groups

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Introduction and Definitions

• Competitors– Firms operating in the same market, offering similar products and

targeting similar customers

• Competitive Rivalry– Ongoing set of competitive actions and competitive responses occurring

between competitors as they contend with each other for an advantageous market position

• Competitive Behavior (offensive and defensive)– Set of competitive actions and competitive responses the firm takes to

build or defend its competitive advantages and to improve its market position

• Competitive Dynamics– Total set of actions and responses of all firms competing within a market -

all competitive behavior

THANK YOU