Week 1

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