unit i of m.m

8/8/2019 unit I of M.M

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Marketing Management

- Utkal Khandelwal


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What is Marketing?

Marketing is defined as the activity, set

of institutions, and processes for

creating, communicating, delivering,

and exchanging offerings that have

value for customers, and society at

large.-American Marketing Association

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Production concept

Product concept

Selling concept

Marketing concept

Development of Marketing Concept

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Nature of Marketing

Marketing is consumer oriented

Marketing starts and end with

customers

Marketing is result oriented

Marketing is system

Exchange process is the essence of

marketing

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Importance of Marketing

Satisfying the needs& wants of

customers

Well being of the firm

Well being of the society

Spring board of business operations

Creating needs

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Elements ofMarketing

CustomerConsumer

Markets

MarketersDemands

Wants

Needs


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Needs, Wants & Demands

Need- something you have to have

Want -something you would like to have

Demand- want accompanied by buyers

ability to buy

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Needs & Wants

In actuality, you only need four things to survive:

A roof over your head

Enough food and water to maintain your health Basic health care and hygiene products

Clothing (just what you need to remain comfortable

and appropriately dressed)

Everything that goes beyond this a big house, name-brand clothes, fancy foods and drinks, a new car is

a want.

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Customer Vs Consumer

Customer: customer means who purchases

the product from the marketer or from the

retailer or from the wholesaler.

Consumer: consumer means who uses the

product of course purchased by the customer

or prospect. Here we consider finally who is

going to use the product we call them as

consumer.

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What is Market?

PeopleBut- not just any people, they have to have Willingness to buy

Purchasing powerAuthority to buy


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Market

A marketis any one of a variety of

differentsystems,institutions,

procedures,social relations and

infrastructures whereby persons trade,

and goods andservices are exchanged,

forming part of the economy. Itis anarrangement that allows buyers and

sellers to exchange things.

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Types of Market

Consumer Goods and Services

Industrial Goods and Services

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Markets

Free Markets

Currency Markets

Stock Markets

Commodity Markets

Capital Goods &Industrial Markets

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Marketer

Marketers refers to persons or

companies engaged in promoting or

selling products and services that theythemselves have driven the

development or manufacture of.

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Marketer

The term covers a range of professional and

job designations concerned with

development of market research, brand

strategy, advertising, public relations,

packaging and similar issues that arise when

delivering goods or services to competitivemarkets.

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Classes of ConsumerProducts

Convenience Shopping Specialty

Goods

Services

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Marketing and

Selling:


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Sales and marketing are different

Marketing: What and how to sell

Selling: moving the product


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Marketing

What?

Product characteristics

Price sensitivity

Market Characteristics

Size

Defensible

Sustainable

How?

Channels


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Product or Service Requirements

Know about it

Opportunity to purchase

Satisfy a real or perceived need

Affordable (but not too cheap)


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A brief introduction to market

analysis Desk research

Existing market or solutions

Competition, actual and potential

Demographics

Market surveys

Qualitative

groups, usability testing

Quantitative Surveys, test marketing

Distribution channels

Market Communications


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Channels

Direct Sales

Distributor/Retailer

Distributors are your customers National

International

Chose carefully -

changing is expensive and difficult

Key sales

Opinion formers


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Market Communications

Targeting

Advertising

Image

Message

Sales

General - Newspapers, TV

Specific - Trade press, specialist magazines

PR

Direct mail


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Sales techniques

Needs

Concerns

Authority


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Stages in Selling

Prospecting

Pre-approach

Approach

Proposal

Demonstration

Close

Service


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Prospecting

Locating the most likely buyers

Cold calling

Directors Guides, Yearbooks

Local council offices, Chambers of Commerce

Institutional meetings

Qualified Prospects

Marketing response: Advertising, PR, Mailings Service organisation, exhibitions

How many?


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Pre-approach

Research

Who are the decision makers?

What is the management structure?

What are their concerns?

Preparation

Presentation

Visiting cards, brochures


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Approach

Listen, establish mutual ground

Contact building

Generalities


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Proposal S

ell the benefits to the customer Sales proposal

Introduction

Objectives

Recommendations

Benefits

Financial Justification

Warranty and service

Company Background

Price and conditions

Follow-up


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Demonstration

Objectives

Administration

Who, where, maps, car parking,accommodation

Greeting, seating

Catering: coffee, lunch or sandwiches

Script

Rehearse, and stick to the script

Points to emphasise, or not

Sum up


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Close

Small step at a time

Advantages

Customers concerns

hidden agenda

Kicker

Discount, limited offer


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Service

Relationship management

communications

contact point

Regular liaison

early warnings

Spec changes and the consequences

Meeting milestones


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Planning and Records

Graded Prospect List

Sales Forecasts

Call analysis

Sales Cost analysis

Company Contact Previous Contact Next Contact

Name Address Phone Fax Name Decision Makers Potential % Date Who Action Date Who Action

Company Amount ------TimeAnalysis------- ProductA

Q1 Q2 Q3 Q4


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Control and Commissions Control

Sales organisation structure

By product

Geographical

By channel, key account

Measurement

Cost per sale

Response rate

Timeliness

Individual measures, targets

Commission

Dont stint

Basic salary

Pay on delivery, or payment


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Marketing Management

Marketing managementis a business

discipline which is focused on the

practical application of marketingtechniques and the management of a

firm's marketing resources and

activities.

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Functions in Marketing Management

Marketing Research

STP

Setting Marketing Strategy

Marketing Mix

Marketing Controlling

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Marketing Mix


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Definition

Marketing-Mixis composed of a large

battery of advices which might be

employed to induce customers to buy aparticular product.

-Keeley and Lazer

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The Marketing Mix

The tools available to a business to gain the

reaction it is seeking from its target market in

relation to its marketing objectives 7Ps Price, Product, Promotion, Place,

People, Process, Physical Environment

Traditional 4Ps extended to encompass

growth of service industry

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Price

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Price

Pricing Strategy

Importance of: knowing the market

elasticity

keeping an eye

on rivals

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Product

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Product

Methods used toimprove/differentiatethe product and increasesales or target sales more

effectively to gaina competitive advantage e.g.

Extension strategies

Specialised versions

New editions

Improvements real or

otherwise! Changed packaging

Technology, etc.

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Promotion

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Promotion

Strategies

to make the

consumer aware ofthe existence of a

product

or service

NOT just advertising

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Place

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Place

The means by which products and

services get from producer

to consumer and where they can beaccessed by the consumer

The more places to buy the product and

the easier it is made to buy it, the better forthe business (and the consumer?)

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People

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People

People represent the business

The image they present can be important

First contact often human what is the lastingimage they provide to the customer?

Extent of training and knowledge

of the product/service concerned

Mission statement how relevant? Do staff represent the desired culture

of the business?

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Process

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Process

How do people consume services?

What processes do they have to go throughto acquire the services?

Where do they find the availabilityof the service? Contact

Reminders

Registration Subscription

Form filling

Degree of technology

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Physical Environment

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Physical Environment

The ambience, mood or physical presentation

of the environment

Smart/shabby? Trendy/retro/modern/old fashioned?

Light/dark/bright/subdued?

Romantic/chic/loud?

Clean/dirty/unkempt/neat? Music?

Smell?

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The Marketing Mix

Blend of the mix depends upon: Marketing objectives

Type of product

Target market

Market structure

Rivals behaviour

Global issues culture/religion, etc.

Marketing position

Product portfolio

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Characteristics of Marketing-Mix

Mix of policies and activities

Systematic concept and contineous

process

Mix of various mixes

Effectiveness

Integrated marketing strategy

Solution of marketing problem

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Marketing

EnvironmentGLA


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Marketing Environment

The Marketing Environment consists of

external forces that directly orindirectly

influence an organization acquisition ofinputs and creation of outputs.

-Pride and Ferrel

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Key Environments

Marketing Environment

The f actors and forces thataffecta firms ability to buildand maintain

successful relationships with customers.

Aspects of the marketing environment:

Micro-environment

Macro-environment


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Marketing

Environment

Internal

Environment

External

Environment


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Internal Vs External Environment

Internal

Environment are

those factors overwhich a firm has full

control.

External

Environment are

those factors whichcannot controlled or

managed by a

business.

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The MicroThe Micro--environmentenvironment

Departments within the company impact marketing planning.

Suppliers help create and delivercustomer value.

Treat suppliers as partners.

Marketing intermedi

aries help sell, promote,

and distri

bute goods.

Intermediaries take many forms.


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The MacroThe Macro--environmentenvironment

Customer markets mustbe studied.

Consumer, business, government, resellerand international markets exist.

Successfulcompanies provide bettercustomer value than the

competition.

Size and industry position help to determine the appropriate competitive

strategy.

Various publics mustalso be considered.


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Factors ofInternal Environment

Suppliers

Customers

Marketing

intermediaries

Competitors

Publics


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Demographic Environment

Economic Environment

Political and Legal EnvironmentSocial And Cultural Environment

Technological Environment

Competitive Environment

Factors of External Environment


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The Marketing Environment and

CompetitorAnalysis

SWOT analysis

PEST analysis

Five forces analysis


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SWOT analysis

Strengths (internal)

Weaknesses (internal)Opportunities (external)

Threats (external)


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PEST analysis

Political factors

Economic factorsSocio-cultural factors

Technological factors


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Political/legal

Monopolies legislation

Environmental protection laws

Taxation policy

Employment laws

Government policy

Legislation

Others?


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Economic Factors

Inflation

Employment

Disposable income

Business cycles

Energy availability and costOthers?


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Sociocultural factors

Demographics

Distribution of income

Social mobility

Lifestyle changes

Consumerism

Levels of education

Others?


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Technological

New discoveries andinnovations

Speed of technology transfer

Rates of obsolescence

InternetInformation technology

Others?

Fi f l i


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Source: Adapted from M. E. Porter,

Competitive Strategy, Free Press,

1980, p. 4.

Threat ofThreat of

substitutessubstitutes

Potential

entrants

Threat ofThreat of

entrantsentrants

Suppliers

BargainingBargaining

powerpower

Substitutes

Buyers

BargainingBargaining

powerpower

COMPETITIVERIVALRY

Five forces analysis


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Five Forces Analysis: Key

Questions and Implications What are the key forcesat work in the competitive

environment?

Are there underlying forcesdriving competitive

forces?

Will competitive forceschange?

What are the strengths and weaknessesof

competitors in relation to the competitive forces?

Can competitive strategyinfluence competitive forces(eg by building barriers to entry or reducing

competitive rivalry)?


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Qualities of Marketing Manager

Proactive

Adaptability

Focus on specific goals

Emotional stability Extroversion

Openness

Perceptual ability

Ability to learn Positive attitudes

Positive work-related values

Internal motivationGLA

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