week 1
TRANSCRIPT
WEEK 1
INTRODUCTION TO 21ST CENTURY
MARKETING
WHAT IS MARKETING
The American Marketing Association offers the following formal definition: “Marketing is an organizational function and 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”.
The aim of Marketing is to have:
the right product or service at the right price at the right place at the right time
THE IMPORTANCE OF MARKETING
What price, where to sell & how much to spend on advertising
four utilities: firm, place, time and possession
built demand for product & service building strong brands what features to design of new products &
services inspire enhancements in existing products
in marketplace growth of social networking
How marketing bridges the GAP between producers and consumers
GAPS How marketing bridges the GAP
Space Assembly, transportation, distribution
Time Storage, financing, and risk taking
Perception (knowledge) Communication mass media
Ownership Customer contact, termination of sale
Value Price, terms of sale
THE SCOPE……..!!!!!!!
What Is Marketed? GOODS SERVICES EVENTS EXPERIENCES PERSONS PLACES PROPERTIES ORGANIZATION INFORMATION IDEAS
Who Markets it? A marketer is someone seeking a response
(attention, purchase, vote, donation, etc.) from another party called the prospect.
MARKETS Marketers use the term “market” to cover various groups of customers. The five basic markets are:
A) Resource Markets B) Government Markets C) Manufacturer Markets D) Intermediary Markets E) Consumer Markets
The marketplace is physical, The market space is digital, The meta market is a cluster of complementary
products and services that are closely related in the consumer’s mind but spread across a diverse set of industries.
Key customer market Consumer markets Business markets Global markets Nonprofit and governmental markets
THE FUNCTIONS…..
MA
RK
ETIN
G
FUC
NTIO
NS • OBTAINING
DEMAND• advertising• personal
selling • sales
promotion • pricing • public
relations
MA
RK
ETIN
G
FUC
NTIO
NS • SERVICING
DEMAND • Warehousing • inventory
management• transportation• order
processing• administration
MA
RK
ETIN
G
FUC
NTIO
NS • OTHER
ACTIVITIES
• Handling • financing • Marketing
research and sales forecast
Core concepts of Marketing Needs, wants and demands Target markets, positioning and
segmentation Offering and Brands Value and Satisfaction Marketing Channels Supply Chain Competition Marketing Environment
THE TRANSFORMATION(new realities)
Network information technology globalization deregulation heightened competition industry convergence retail transformation disintermediation consumer buying power consumer information consumer participation consumer resistance
Selling and Marketing
Is not ‘selling’ a part of ‘marketing’? Certainly yes; but marketing recognizes the
futility of ‘pushing’ that is inherent in the sales approach. In the marketing approach, there is no need for pushing the product on the consumers
Does not marketing seek profit just as selling does? Yes; but selling seeks profits by pushing the
products on the consumers, while marketing seeks profits by creating value satisfaction for the consumers
Customer value, Satisfaction and Loyalty
The Meaning of Value in Marketing
Benefits Translate into ValueAll buyers seek Value in all their purchases and they look for it in the form of benefits.
The Concept of Customer Value
Customer Value is the composite of tangible values as well as intangible values. Customer Value, Customer Cost, and Customer Satisfaction
“Paisa Vasool Approach”
Value Takes Precedence Even Over Brand NameNike, Reebok, and Adidas could not succeed in India on brand name aloneIn Durables too, Value Becomes Vital for Indian Consumers
Inter- relationships b/w MARKETING and other
FUNCTIONAL areas
Inter-relationship b/w
marketing
Financial
Personnel
Manufacturing
Corporate
planning
Administration
Changing concepts of marketing
The EVOLUTION of marketing concept self-sufficient stage: produce what farmers want,
no surplus exchange-oriented stage: engaged in agriculture
and allied operations, surplus production came (barter system)
production-oriented stage: consumption is sole end and purpose of production
sales-oriented stage: realized the purpose and importance of marketing
marketing-oriented stage: evil effects of competition made the producers realize that the product could not be sold without an effective sales force
consumer oriented stage: factors of production had to be organized with full priori understanding
management-oriented stage
PRODUCTION CONCEPT:- china market PRODUCT CONCEPT:- SELLING CONCEPT MARKETING CONCEPT HOLISTIC OR SOCIETAL CONCEPT
CONTEMPORARY CONCEPTS RELATIONSHIP MARKETING OR
RELATIONSHIP MANAGEMENT BUSINESS MARKETING OR INDUSTRIAL
MARKETING SOCIETAL MARKETING BRANDING
Holistic marketi
ng
Internal marketing
Integrated marketing
Relationship marketing
Performance marketing
Some other innovation in modern marketing
social marketing De-marketing remarketing Over-marketing Meta-marketing
Marketing Environment
FIRM PUBLIC
INTERMEDIARIES
CUSTOMERS
SUPPLIERS
COMPETITORS
DEMOGRAPHIC FORCES
ECONOMIC FORCE
SOCIO & CULTURAL FORCES
POLITICAL & LEGAL FORCES
India’s Consumer Environment
FMCG and FMCD Sectors FMCD Spurt: Mobile sets/AC’s/Two wheelers/Passenger
car etc.• Steady growth due to rising consumer income and
falling prices.
Call of the Mall : The Retail Boom India’s retail industry expected to hit $ 255 billion in
2010 According to a CII Report, the year 2010 will see a 10
per cent contribution by modern retail to all FMCG. In metros, this figure is expected to be 30 per cent.
The Media, Advertising and Entertainment Scene
The Media Revolution TV spearheading the media revolution
The Rural Marketing Scene Rural income now exceeds urban income by handsome
margin Rural market accounts for a large share of the expenditure
on manufactured and branded consumer goods. Rural children take to English education
30% of rural children go to private English medium schools Rural market carries huge opportunities; also huge challenges India to become an economic power, boosted by sustained
economic growth, high savings, and rising exports
Expansion and diversification in the manufacture and marketing of consumer goods is on
Evolution of a large middle class is taking place Rural areas have emerged as a large and growing
market