Marketing Management

09-04-2013 1 Marketing Management

Simplest definition- “meeting needs profitably”

An organisational function and a set of process for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organisation and its stakeholders

Marketing Management: The art and science of choosing target market and getting, keeping and growing customers through creating, delivering and communicating superior customer value


The stage of Economic self-sufficiency

The Barter system

Money system

The early stage of capitalism

Industrial revolution

The emergence of marketing


Goods

Consumer goods, machine tools

Services

Hotels, airlines, consultants,

Events

Olympics, World Cup, Ragam

Experiences

Amusement parks

Persons

Celebrities, Politicians, people are brand

themselves


Places

Kerala – “God’s Own Country”

Properties

Real estate, stocks

Organisations

ITC

Information

Educational institutions

Ideas

Discouraging smoking, improving sanity


Traditional definition: Physical place where

buyers and sellers are gathered to buy and

sell goods

Consumer markets

Business markets

Global markets

Non profit and Governmental markets


The different concepts / perspectives

directly correspond to the different

orientations of the firms towards market

place

Exchange concept: central idea of marketing

– exchange of product between buyer and

seller

Production concept – Maximise output,

achieve lower unit cost and sell at lower

price

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Product concept: win market by product

excellence

Focus on product excellence, quality

Called Marketing Myopia

Sales concept

Oriented heavily to selling

Marketing concept

Find right products for your customers

Be proactive

Holistic marketing


Everything matters in marketing


Aims to build mutually satisfying long term

relationships with key constituents in order

to earn and retain their business

Four key constituents:

Customers

Employees

Marketing partners – channels, suppliers,

distributors, dealers, agencies

Members of the financial community –

shareholders, investors, analysts

Marketing network


Marketing activities - Marketing Mix tools –

4 P’s


Product Price Promotion Place

Product variety

Quality

Design

Features

Brand name

Packaging

Sizes

Services

Warranties

Returns

List price

Discounts

Allowances

Payment period

Credit terms

Sales promotion

Advertising

Sales force

Public relations

Direct marketing

Channels

Coverage

Assortments

Locations

Inventory

Transport

Two key themes

Many different marketing activities communicate

and deliver value

When co-ordinated, marketing activities

maximise their joint effects


Internal Marketing ensure that everyone in

the organisation embraces appropriate

marketing principles, especially senior

management

Internal marketing must take place at two

levels

One level- various marketing functions – sales

force, advertising, customer service, product

management, marketing research – must work

together

Second level-other departments must embrace

marketing


Financial Accountability

Social Responsibility Marketing


Marketer : A person who seeks response,

attention , a vote, donation form another

party called a Prospect

If two parties are selling some thing to each

other both are called marketers

Market place: Physical

Market Space: Digital


Metamarkets: cluster of complimentary products and services that are closely related in the minds of consumers, but spread across a diverse set of industries

E.g. – An automobile metamarket consists of Automobile manufacturers

New and used car dealers

Financing companies

Insurance companies

Spare parts dealers

Auto magazines

Classifieds auto ad in news papers etc.


Needs – basic human requirements

Wants – needs directed to specific objects

that might satisfy the need

Demand – wants for specific product backed

by an ability to pay

E.g.:-

Need – some thing to write

Want – A pen

Demand – A Parker pen


Specific set of tasks that make up successful

marketing management and leadership

1. Developing marketing strategies and plans

2. Capturing marketing insights

3. Connecting with customers

4. Building strong brands

5. Shaping the market offerings

6. Delivering value

7. Communicating value

8. Creating long term growth


Strategic planning

SWOT analysis


a) Gathering information and scanning the environment

Analyse the macro environment and identify the factors Demographic Economic

Socio-Cultural Natural Technological

Political-Legal

b) Conducting market research and forecasting demand

Marketing research process:

1. Define the problem, the decision alternatives and research objectives

2. Develop the research plan

3. Collect information

4. Analyse the information

5. Present the findings

6. Make the decision


Creating Customer Value, Satisfaction and

Loyalty

Understand what the customers value

Cultivating strong customer relationships

Attracting and retaining customers

Analysing consumer markets

Consumer Behaviour

Analysing business markets

Identifying market segments and targets


What motivate the buyer?

What induces him to buy?

Why does he buy a specific brand from a

particular shop?

Why does he shift his preference from one

shop to another or one brand to another?

How does he react to new product

introduced in the market?

What are the stages he travels through

before he makes the decision to buy?


Factors which influence consumer behaviour:

Cultural factors: Culture, subcultures

Social factors: Reference groups, family,

Roles and Status

Personal factors: Age and stage in the life

cycle, Occupation and Economic

Circumstances, Personality and Self-Concept,

Lifestyle and Values

Psychological factors: Motivation, Perception

Learning, Memory


A market segment consists of group of

customers who shares a similar set of needs

or wants

Bases for segmenting

Geographic

Demographic

Psychographic

Behavioural


Analyse the competitors

Creating brand equity

Brand – a name, term, sign, symbol or design, or a

combination of them, intended to identify the goods

or services of one seller or group of sellers and to

differentiate them from those of competitors

Brand Equity is the added value endowed on products

or services

Crafting the brand positioning

Effectively position and differentiate a company’s

offering to achieve a competitive advantage

throughout the entire product life cycle


Deciding the design, features, quality, etc.

Of the product

Managing services such as delivery, repairing

etc.

Deciding the pricing strategy


Pricing procedure

Identify the customer groups and their profile

Decide the desired market position and price image

for the brand

Determine the extent of price elasticity of demand of

the product, extent of price sensitivity of target

customer groups

Estimate the various costs

Take into account the life cycle stage of the product

Analyse competitor’s prices

Analyse the other environmental factors

Choosing the pricing method to be adopted taking all

the above factors into account

Review periodically the pricing policy as well as the

procedure


Designing and Managing integrated marketing

channels

Marketing channels: set of interdependent

organisations involved in the process of

making a product or service available for use

or consumption; the set of pathways a

product or service follows from production to

reaching the end user


Channels include:

Merchants – wholesalers and retailers – buy take title to and resell the merchandise

Agents – brokers, manufacturers’ representatives sales agents – search for customers and may negotiate on producer’s behalf but do not take title to the goods

Facilitators – transportation companies, independent warehouses, banks, advertising agencies – assist in distribution process but neither take title to goods nor negotiate for purchase or sales


Marketing communications – the means by

which firms attempt to inform, persuade and

remind consumers – directly or indirectly –

about the products and brands they sell

Marketing communications – ‘voice of the

company’


Consists of eight modes of communication

a) Advertising

b) Sales promotion

c) Events and experiences

d) Public relations and publicity

e) Direct marketing

f) Interactive marketing

g) Word-of-mouth marketing

h) Personal selling


Any paid form of impersonal presentation

and promotion of ideas, goods or services by

an identified sponsor

TV ads

Radio ads

Print ads

Packaging- outer and inner

Display signs

Symbols and logos


A variety of short term activities to

encourage trial or purchase of a product or

service

Premiums and gifts

Coupons

Rebates

Demonstrations


Company sponsored activities or programs

designed to create daily or special brand –

related interactions

Sports – World cup, tournaments

Festivals

Arts


A variety of programs designed to promote or

protect a company’s image or its individual

products

Speeches

Seminars

Annual reports

Company magazine

Charitable donations


Use of mail, telephone, fax, e-mail or

internet to communicate directly with or

solicit response or dialogue from specific

customers and prospects

Telemarketing

TV shopping

Fax mail

Blogs

Websites


Online activities and programs designed to

engage customers or prospects directly or

indirectly raise awareness, improve image,

or elicit sales of products or services

Electronic shopping

E mail

Blogs

Websites


People to people oral or written or electronic

communications that relate to the merits or

experiences of using products or services

Person-to-person

Chat rooms

Blogs

Email groups


Face-to-face interaction with one or more

prospective purchasers for the purpose of

making presentations answering questions,

and procuring orders

Sales presentations

Sales meetings

Incentive programs

Samples

Fair and trade shows


For a successful long term growth and

development, the company should:

Introduce new and innovative products

Develop a strategy that take into account global

opportunities and challenges

Efficiently manage a holistic marketing

organisation for the long run



5M’s: Mission, Money, Message, Media, Measurement

An advertising goal is a specific communication task and achievement level to be accomplished with a specific audience in a specific period of time

Types of advertising Informative advertising: aim to create brand

awareness and knowledge of new products or new features of existing products

Persuasive advertising: aims to create liking, preference, conviction and purchase of a product or service: some persuasive advertising uses comparative advertising

Reminder advertising: aims to stimulate repeat purchase of products and services

Reinforcement advertising: aims to convince current purchasers that they made the right choice


Factors affecting budget decisions

Stage in the product life cycle

Market share and consumer base

Competition and clutter

Advertising frequency

Product substitutability


Message generation and evaluation

Creative development and execution


Reach (R): the number of different persons or households exposed to a particular media schedule at least once during a specified time period

Frequency(F): the number of times within the specific time period that an average person or household is exposed to the message

Impact (I): the qualitative value of an exposure through a given medium

Total number of exposures (E): this reach times the average frequency: E=R x F: also called gross rating points (GRP)

Weighted number of exposures (WE): WE =R x F x I


Choosing among major media types

Factors

Target audience and media habits

Product characteristics

Message characteristics

Cost

Advertising options

Newspaper

TV

Radio

Magazines

Yellow pages

Internet


Communication impact

Sales impact

Return on advertising


Marketing Management

Documents

marketing concept

emergence of marketing

different marketing

analysts marketing network

proactive holistic marketing

product concept

market place exchange

product excellence focus