Chap 1,creating & capturing customer value

Prepared by

PROF. RAJESH KUMAR(MBA IMT, GBD,SIX-SIGMA BLACK BELT

CERTIFIED)(HOD-MARKETING,BSD)

E:[email protected]:9312326419

Defining Marketing for the 21st Century

The roaring success of four-wheeler Tata Ace, in a market earlier dominated by three-wheeler load carriers, was due to a deep understanding of the market needs and customer requirements.

four-wheeler Tata Ace

What Is Marketing?

Marketing

It is a process by which companies create value for customers and build strong customer relationships to capture value from customers in return

What Is Marketing?The Marketing Process

What is Marketed?M

What is Marketed?

GoodsGoods

ServicesServices

Events & ExperiencesEvents & Experiences

PersonsPersons

Places & PropertiesPlaces & Properties

OrganizationsOrganizations

InformationInformation

IdeasIdeas

Successful New Product Launches Require Careful Planning

Marketing Can Promote Ideas

Demand Status

DS

Nonexistent Latent

Declining Irregular

Full UnwholesomeOverfull

Negative

Key Customer MarketKCM Consumer Markets

Business Markets

Global Markets

Nonprofit/ Government Markets

Core Concepts of Marketing

• Customer needs, Wants, and Demands

• Market Segmentation, Target market, Positioning(STP)

• Market offerings

• Value and satisfaction

• Exchanges and relationships

Customer needs, wants, and demands

Market Segmentation, Target Market, Positioning(STP)

Market segmentation refers to dividing the markets into segments of

customers

Target marketing refers to which segments to go after

Positioning:Company must understand the position of their

product by comparing with others

.

.

Indian 2-Wheeler Market Competitive Scenario

Motorcycle 50% 30% 13% 4% 1% 2% <1% - <1%

- 15% 28% - 2% 46% 9% <1% -

- - 82% - - - 8% 10% -

India is now the second largest two-wheeler market in the world

Figures denote Mkt Share (Apr-Oct 05)

Market offerings

• Market offeringsThese are some combination of products,

services, information, or experiences offered to a market to satisfy a need or want

• Marketing myopiaIt is focusing only on existing wants and losing

sight of underlying consumer needs

Market offerings

Value and satisfaction

Customer Satisfaction

Customers• Value and

satisfaction

Marketers• Set the right level of

expectations• Not too high or low

Exchanges and relationships

Exchange It is the act of obtaining a desired object from someone by offering something in return

Customer-Driven Marketing Strategy

Production concept

Product concept

Selling concept

Marketing concept

Societal concept

Customer-Driven Marketing Strategy

Production concept is the idea that consumers will favor products that are available or highly affordable

Product concept is the idea that consumers will favor products that offer the most quality, performance, and features. Organization should therefore devote its energy to making continuous product improvements.

Customer-Driven Marketing Strategy

Selling concept is the idea that consumers will not buy enough of the firm’s products unless it undertakes a large scale selling and promotion effort

Marketing concept is the idea that achieving organizational goals depends on knowing the needs and wants of the target markets and delivering the desired satisfactions better than competitors do

Customer-Driven Marketing Strategy

Societal marketing concept is the idea that a company should make good marketing decisions by considering consumers’ wants, the company’s requirements, consumers’ long-term interests, and society’s long-run interests

Holistic Marketing Dimensions

Integrated Marketing/Marketing Mix

To make company more successful, top Executive give more & more stress towards marketing.

The Fundamental of marketing is based on 4ps. It is also known as Marketing Mix.

Marketing Mix