AIMA-CME 2 What is Marketing…?? Selling? Advertising? Promotions? Making products available in stores? Maintaining inventories? All of the above, plus.

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!

33

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

44

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

1818

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

2020

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

2222

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

3535

The Generic Value ChainThe Generic Value Chain

3636

A Holistic Marketing FrameworkA Holistic Marketing Framework

3737

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

3838

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 . . . . .

3939

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

4040

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

4343

The Strategic-Planning, Implementation, and Control ProcessThe Strategic-Planning, Implementation, and Control Process

4444

Business Strategic-Planning ProcessBusiness Strategic-Planning Process

External environment

(Opportunity &

Threat analysis)

Internal Environment

(Strength/ Weakness analysis)

Goal FormulationBusiness Mission

4545

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

4646

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

4848

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 ?

4949

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 ?

5050

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

5252

The macro-environmentThe macro-environment

is the assessment of the external forces that act upon the firm and its customers, that create threats & opportunities