AIMA-CME 2 What is Marketing…?? Selling? Advertising? Promotions? Making products available in stores? Maintaining inventories? All of the above, plus.
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AIMA-CMEAIMA-CME
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What is Marketing…??What is Marketing…??
Selling?
Advertising?
Promotions?
Making products available in stores?
Maintaining inventories?
All of the above, plus much more!
Selling?
Advertising?
Promotions?
Making products available in stores?
Maintaining inventories?
All of the above, plus much more!
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Marketing = ?Marketing = ?
Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, services to create exchanges that satisfy individual and organizational goals
American Marketing Association
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Marketing = ?Marketing = ?
Marketing management is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value.
Marketing management is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value.
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Marketing = ?Marketing = ?
Marketing is the sum of all activities that take you to a sales outlet. After that sales takes over.
Marketing is all about creating a pull, sales is all about push.
Marketing is all about managing the four P’s – product price place promotion
Marketing is the sum of all activities that take you to a sales outlet. After that sales takes over.
Marketing is all about creating a pull, sales is all about push.
Marketing is all about managing the four P’s – product price place promotion
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The 4 Ps & 4CsThe 4 Ps & 4Cs
MarketingMix
Product
Price Promotion
Place
CustomerSolution
CustomerCost
Communication
Convenience
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Difference Between - Sales & Marketing ?
Difference Between - Sales & Marketing ?
Salestrying to get the customer to want what the company produces
Marketing trying to get the company produce what the customer wants
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Scope – What do we marketScope – What do we market
Goods Services Events Experiences Personalities Place Organizations Properties Information Ideas and concepts
Goods Services Events Experiences Personalities Place Organizations Properties Information Ideas and concepts
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Core Concepts of MarketingCore Concepts of Marketing
Based on : Needs, Wants, Desires / demand
Products, Utility, Value & Satisfaction
Exchange, Transactions & Relationships
Markets, Marketing & Marketers.
Based on : Needs, Wants, Desires / demand
Products, Utility, Value & Satisfaction
Exchange, Transactions & Relationships
Markets, Marketing & Marketers.
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Marketing Management PhilosophiesMarketing Management Philosophies
Production
Product
Selling
Marketing- Relationship Marketing
-Holistic Marketing
Production
Product
Selling
Marketing- Relationship Marketing
-Holistic Marketing
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The Production ConceptThe Production Concept
The production concept is one of the oldest concepts in business. It holds that consumers will prefer products that are widely available and inexpensive. Managers of production oriented businesses concentrate on achieving high production efficiency, low costs, and mass distribution.
The production concept is one of the oldest concepts in business. It holds that consumers will prefer products that are widely available and inexpensive. Managers of production oriented businesses concentrate on achieving high production efficiency, low costs, and mass distribution.
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The Product ConceptThe Product Concept
The product concept holds that consumers will favor those products that offer the most quality, performance or innovative features. Managers in these organizations focus on making superior products and improving them over time. However, these managers are sometimes caught up in a love affair with their products.
The product concept holds that consumers will favor those products that offer the most quality, performance or innovative features. Managers in these organizations focus on making superior products and improving them over time. However, these managers are sometimes caught up in a love affair with their products.
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The Selling ConceptThe Selling Concept
The selling concept holds that consumers and businesses, if left alone, will ordinarily not buy enough of the organization’s products. The organization must , therefore,undertake an aggressive selling and promotion effort.
Sergio Zyman, Coca-Cola’s former Vice President of marketing: The purpose of marketing is to sell more stuff to more people more often for more money in order to make more profit.
The selling concept holds that consumers and businesses, if left alone, will ordinarily not buy enough of the organization’s products. The organization must , therefore,undertake an aggressive selling and promotion effort.
Sergio Zyman, Coca-Cola’s former Vice President of marketing: The purpose of marketing is to sell more stuff to more people more often for more money in order to make more profit.
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The Marketing Concept The Marketing Concept The marketing concept emerged in the mid 1950s.
Instead of a product-centered, “make and sell” philosophy, business shifted to a customer –centered, “sense-and-respond” Philosophy.
The job is not to find the right customers for your products, but the right products for your customers.
The marketing concept holds that the key to achieving organizational goals consists of the company being more effective than competitors in creating , delivering, and communicating superior customer value to its chosen target markets.
The marketing concept emerged in the mid 1950s. Instead of a product-centered, “make and sell” philosophy, business shifted to a customer –centered, “sense-and-respond” Philosophy.
The job is not to find the right customers for your products, but the right products for your customers.
The marketing concept holds that the key to achieving organizational goals consists of the company being more effective than competitors in creating , delivering, and communicating superior customer value to its chosen target markets.
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Total Marketing ConceptTotal Marketing Concept
•Reactive Market Orientation
•Proactive Market Orientation
Companies such as 3M, HP and Motorola have made a practice of researching of imagining latent needs through a “probe –and-learn” process,
Companies that practice both a reactive and proactive marketing orientation are implementing a total market orientation and are likely to be the most successful.
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The Holistic Marketing ConceptThe Holistic Marketing Concept
The holistic marketing concept is based on the development,design, and implementation of marketing programs, processes and activities that recognizes their breadth and interdependencies. Holistic marketing recognizes that “everything matters” with marketing –and that a broad, integrated perspective is often necessary. Four components of holistic marketing are relationship marketing, integrated marketing, internal marketing and social responsibility marketing.
The holistic marketing concept is based on the development,design, and implementation of marketing programs, processes and activities that recognizes their breadth and interdependencies. Holistic marketing recognizes that “everything matters” with marketing –and that a broad, integrated perspective is often necessary. Four components of holistic marketing are relationship marketing, integrated marketing, internal marketing and social responsibility marketing.
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Holistic Marketing DimensionsHolistic Marketing Dimensions
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Marketing MyopiaMarketing Myopia
Marketing myopia occurs when sellers pay more attention to the specific products they offer than to the benefits and experiences produced by the products.
They focus on the “wants” and lose sight of the “needs.”
Marketing myopia occurs when sellers pay more attention to the specific products they offer than to the benefits and experiences produced by the products.
They focus on the “wants” and lose sight of the “needs.”
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Marketing Management TasksMarketing Management Tasks
Developing marketing strategies
Capturing marketing insights
Connecting with customers
Building strong brands
Developing marketing strategies
Capturing marketing insights
Connecting with customers
Building strong brands
Shaping market offerings
Delivering value
Communicating value
Creating long-term growth
Shaping market offerings
Delivering value
Communicating value
Creating long-term growth
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Value & SatisfactionValue & Satisfaction
Care must be taken when setting expectations:If performance is lower than
expectations, satisfaction is low.If performance is higher than
expectations, satisfaction is high.
Care must be taken when setting expectations:If performance is lower than
expectations, satisfaction is low.If performance is higher than
expectations, satisfaction is high.
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Factors Influencing Company Marketing StrategyFactors Influencing Company Marketing Strategy
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Marketing ManagementMarketing Management
Designing a winning marketing strategy requires answers to the following questions:
Designing a winning marketing strategy requires answers to the following questions:
1. What customers will we serve?What is our target market?
2. How can we best serve these customers?What is our value proposition?
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Value PropositionValue Proposition
The set of benefits or values a company promises to deliver to consumers to satisfy their needs.Value propositions dictate how firms will
differentiate and position their brands in the marketplace.
The set of benefits or values a company promises to deliver to consumers to satisfy their needs.Value propositions dictate how firms will
differentiate and position their brands in the marketplace.
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Customer Relationship ManagementCustomer Relationship Management
The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.Acquiring customersKeeping customersGrowing customers
The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.Acquiring customersKeeping customersGrowing customers
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Customer Perceived ValueCustomer Perceived Value
Customer’s evaluation of the difference between all of the benefits and all of the costs of a marketing offer relative to those of competing offers.
Customer’s evaluation of the difference between all of the benefits and all of the costs of a marketing offer relative to those of competing offers.
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Customer SatisfactionCustomer Satisfaction
Dependent on the product’s perceived performance relative to a buyer’s expectations.Customer satisfaction often leads to
consumer loyalty.Some firms seek to DELIGHT customers
by exceeding expectations.
Dependent on the product’s perceived performance relative to a buyer’s expectations.Customer satisfaction often leads to
consumer loyalty.Some firms seek to DELIGHT customers
by exceeding expectations.
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Customer RelationshipsCustomer Relationships
Loyalty and retention programs build relationships and may feature: Financial Benefits
EX: Frequency marketing programs
Social BenefitsEX: Club marketing programs
Structural Ties
Focus is on relating directly to profitable customers, for the long-term.
Loyalty and retention programs build relationships and may feature: Financial Benefits
EX: Frequency marketing programs
Social BenefitsEX: Club marketing programs
Structural Ties
Focus is on relating directly to profitable customers, for the long-term.
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Partner Relationship MarketingPartner Relationship Marketing
Marketing partners help create customer value and assist in building customer relationships.
Partners inside the firm: All employees customer focused Teams coordinate efforts toward customers
Partners outside the firm: Supply chain management Strategic alliances
Marketing partners help create customer value and assist in building customer relationships.
Partners inside the firm: All employees customer focused Teams coordinate efforts toward customers
Partners outside the firm: Supply chain management Strategic alliances
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Customer Loyalty & RetentionCustomer Loyalty & Retention
Customer Lifetime ValueThe entire
stream of purchases that the customer would make over a lifetime of patronage.
Customer Lifetime ValueThe entire
stream of purchases that the customer would make over a lifetime of patronage.
Share of Customer
The share a company gets of the customers purchasing in their product categories.
Share of Customer
The share a company gets of the customers purchasing in their product categories.
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Customer EquityCustomer Equity
The combined discounted customer lifetime values of all the company’s current and potential customers.Classify customers by loyalty and
potential profitabilityManage accordingly
The combined discounted customer lifetime values of all the company’s current and potential customers.Classify customers by loyalty and
potential profitabilityManage accordingly
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The New Digital AgeThe New Digital Age
Technology impacts the ways firms bring value to their customers.
Greater connectivity means greater access to information, faster travel and communication.
The Internet allows anytime, anywhere connections between firms and customers. “Click-and-mortar” companies “Click-only” companies Business-to-business e-commerce
Technology impacts the ways firms bring value to their customers.
Greater connectivity means greater access to information, faster travel and communication.
The Internet allows anytime, anywhere connections between firms and customers. “Click-and-mortar” companies “Click-only” companies Business-to-business e-commerce
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New Marketing LandscapeNew Marketing Landscape
Rapid Globalization
Ethics and Social Responsibility
Not-for-Profit Marketing
New World of Marketing Relationships
Rapid Globalization
Ethics and Social Responsibility
Not-for-Profit Marketing
New World of Marketing Relationships
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Two Views of the Value Delivery ProcessTwo Views of the Value Delivery Process
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The Generic Value ChainThe Generic Value Chain
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A Holistic Marketing FrameworkA Holistic Marketing Framework
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In order to understand Marketing let us begin with the Marketing Triangle
In order to understand Marketing let us begin with the Marketing Triangle
Customers
CompetitionCompany
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Who is a Customer ??Who is a Customer ??
Anyone who is in the market looking at a product /
service for attention, acquisition, use or consumption
that satisfies a want or a need
CUSTOMER IS . . . . .
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Customer –Customer –
CUSTOMER has needs, wants, demands and desires
Understanding these needs is starting point of the entire marketing
These needs, wants …… arise within a framework or an ecosystem
Understanding both the needs and the ecosystem is the starting point of a long term relationship
CUSTOMER has needs, wants, demands and desires
Understanding these needs is starting point of the entire marketing
These needs, wants …… arise within a framework or an ecosystem
Understanding both the needs and the ecosystem is the starting point of a long term relationship
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Customers - Problem SolutionCustomers - Problem Solution
As a priority , we must bring to our customers “WHAT THEY NEED”
We must be in a position to UNDERSTAND their problems
Or in a new situation to give them a chance to AVOID the problems
As a priority , we must bring to our customers “WHAT THEY NEED”
We must be in a position to UNDERSTAND their problems
Or in a new situation to give them a chance to AVOID the problems
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Customer looks for ValueCustomer looks for Value
Value = Benefit / Cost
Benefit = Functional Benefit + Emotional Benefit
Cost = Monetary Cost + Time Cost + Energy Cost + Psychic Cost
Value = Benefit / Cost
Benefit = Functional Benefit + Emotional Benefit
Cost = Monetary Cost + Time Cost + Energy Cost + Psychic Cost
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Strategic MarketingStrategic Marketing
Strategic marketing management is concerned with how we will create value for the customer
Asks two main questions
What is the organization’s main activity at a particular time? – Customer Value
What are its primary goals and how will these be achieved? – how will this value be delivered
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The Strategic-Planning, Implementation, and Control ProcessThe Strategic-Planning, Implementation, and Control Process
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Business Strategic-Planning ProcessBusiness Strategic-Planning Process
External environment
(Opportunity &
Threat analysis)
Internal Environment
(Strength/ Weakness analysis)
Goal FormulationBusiness Mission
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Strategy FormulationStrategy Formulation
Environmental Analysis
Internal AnalysisCompetitorCustomerSupplier
RegulatorySocial/ Political
Technology Know-HowManufacturing Know-How
Marketing Know-HowDistribution Know-How
Logistics
Strength & Weaknesses
Identity Core Competencies
Opportunities & Threats
Identify opportunity
Fit internal Competencies with external opportunities
Firm Strategies
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CONTENTS of MARKETING PLAN CONTENTS of MARKETING PLAN Business Mission Statement
Objectives
Situation Analysis (SWOT)
Marketing Strategy Target Market Strategy Marketing Mix
Positioning Product Promotion Price Place – Distribution People Process
Implementation, Evaluation and Control
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The Marketing Process The Marketing Process
Business Mission Stateme
nt
Objectives
Situation or SWOT Analysis
Implementation Evaluation,
Control
Target Market Strategy
Marketing Strategy
Product
Promotion
Place/Distribution
Price
Marketing Mix
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Why a product like radio declined and now once again
emerging as an entertainment medium ?
Why a product like radio declined and now once again
emerging as an entertainment medium ?
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What Were the Drivers of This Change ?What Were the Drivers of This Change ?
Technology ?
Government policy ?
Other media substitutes ?
Technology ?
Government policy ?
Other media substitutes ?
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Why Market Leaders Suffered ?Why Market Leaders Suffered ?
Walkman vs iPod
HMT vs. Titan
HLL vs. Nirma
Bajaj vs. Honda
Dot.com boom, then bust and now resurgence
Market leadership today cannot be taken for granted.New and more efficient companies are able to upstage leaders in a much shorter period.
Walkman vs iPod
HMT vs. Titan
HLL vs. Nirma
Bajaj vs. Honda
Dot.com boom, then bust and now resurgence
Market leadership today cannot be taken for granted.New and more efficient companies are able to upstage leaders in a much shorter period.
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Factors Influencing Company’s Marketing Strategy
Factors Influencing Company’s Marketing Strategy
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The macro-environmentThe macro-environment
is the assessment of the external forces that act upon the firm and its customers, that create threats & opportunities
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