AIMACME What is Marketing Selling Advertising Promotions Making

AIMA-CME

What is Marketing…? ? Selling? Advertising? Promotions? Making products available in stores? Maintaining inventories? All of the above, plus much more! 2

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 3

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. 4

Marketing = ? è Marketing is the sum of all activities that take you to a sales outlet. After that sales takes over. è Marketing is all about creating a pull, sales is all about push. è Marketing is all about managing the four P’s – è product è price è place è promotion 5

The 4 Ps & 4 Cs Marketing Mix Convenience Place Product Customer Solution Price Promotion Customer Cost Communication 6

Difference Between - Sales & Marketing ? Sales trying to get the customer to want what the company produces Marketing trying to get the company produce what the customer wants 7

Scope – What do we market è è è è è Goods Services Events Experiences Personalities Place Organizations Properties Information Ideas and concepts 8

Core Concepts of Marketing Based on : è Needs, Wants, Desires / demand è Products, Utility, Value & Satisfaction è Exchange, Transactions & Relationships è Markets, Marketing & Marketers. 9

Marketing Management Philosophies Production Product Selling Marketing- Relationship Marketing -Holistic Marketing 10

The 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. 11

The 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. 12

The 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. 13

The Marketing Concept The marketing concept emerged in the mid 1950 s. 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. 14

Total Marketing Concept • Reactive Market Orientation • Proactive Market Orientation Companies such as 3 M, 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. 15

The 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. 16

Holistic Marketing Dimensions 17

Marketing 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. ” 18

Marketing Management Tasks Developing marketing strategies Capturing marketing insights Connecting with customers Building strong brands Shaping market offerings Delivering value Communicating value Creating long-term growth 19

Value & Satisfaction Care must be taken when setting expectations: Ø If performance is lower than expectations, satisfaction is low. Ø If performance is higher than expectations, satisfaction is high. 20

Factors Influencing Marketing Strategy Company 21

Marketing Management 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? 22

Value Proposition The set of benefits or values a company promises to deliver to consumers to satisfy their needs. Ø Value propositions dictate how firms will differentiate and position their brands in the marketplace. 23

Customer Relationship Management The overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction. Ø Acquiring customers Ø Keeping customers Ø Growing customers 24

Customer 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. 25

Customer Satisfaction Dependent on the product’s perceived performance relative to a buyer’s expectations. Ø Customer satisfaction often leads to consumer loyalty. Ø Some firms seek to DELIGHT customers by exceeding expectations. 26

Customer Relationships Loyalty and retention programs build relationships and may feature: Ø Financial Benefits Ø EX: Frequency marketing programs Ø Social Benefits Ø EX: Club marketing programs Ø Structural Ties Focus is on relating directly to profitable customers, for the long-term. 27

Partner Relationship Marketing partners help create customer value and assist in building customer relationships. Partners inside the firm: Ø All employees customer focused Ø Teams coordinate efforts toward customers Partners outside the firm: Ø Supply chain management Ø Strategic alliances 28

Customer Loyalty & Retention Customer Lifetime Value Ø The entire stream of purchases that the customer would make over a lifetime of patronage. Share of Customer Ø The share a company gets of the customers purchasing in their product categories. 29

Customer Equity The combined discounted customer lifetime values of all the company’s current and potential customers. Ø Classify customers by loyalty and potential profitability Ø Manage accordingly 30

The 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. Ø “Click-and-mortar” companies Ø “Click-only” companies Ø Business-to-business e-commerce 31

New Marketing Landscape Rapid Globalization Ethics and Social Responsibility Not-for-Profit Marketing New World of Marketing Relationships 32

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Two Views of the Value Delivery Process 34

The Generic Value Chain 35

A Holistic Marketing Framework 36

In order to understand Marketing let us begin with the Marketing Triangle Customers Company Competition 37

Who is a Customer ? ? CUSTOMER IS. . . Anyone who is in the market looking at a product / service for attention, acquisition, use or consumption that satisfies a want or a need 38

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 39

Customers - 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 40

Customer looks for Value = Benefit / Cost Benefit = Functional Benefit + Emotional Benefit Cost = Monetary Cost + Time Cost + Energy Cost + Psychic Cost 41

Strategic Marketing Strategic marketing management is concerned with how we will create value for the customer Asks two main questions Ø What is the organization’s main activity at a particular time? – Customer Value Ø What are its primary goals and how will these be achieved? – how will this value be delivered 42

The Strategic-Planning, Implementation, and Control Process 43

Business Strategic-Planning Process External environment (Opportunity & Threat analysis) Goal Formulation Business Mission Internal Environment (Strength/ Weakness analysis) 44

Strategy Formulation Environmental Analysis Internal Analysis Competitor Customer Supplier Regulatory Social/ Political Technology Know-How Manufacturing Know-How Marketing Know-How Distribution Know-How Logistics Opportunities & Threats Identify opportunity Strength & Weaknesses Identity Core Competencies Fit internal Competencies with external opportunities Firm Strategies 45

CONTENTS of MARKETING PLAN Business Mission Statement Objectives Situation Analysis (SWOT) Marketing Strategy Ø Target Market Strategy Ø Marketing Mix è è è è Positioning Product Promotion Price Place – Distribution People Process Implementation, Evaluation and Control 46

The Marketing Process Business Mission Statement Objectives Situation or SWOT Analysis Marketing Strategy Target Market Strategy Marketing Mix Product Place/Distribution Promotion Price Implementation Evaluation, Control 47

Why a product like radio declined and now once again emerging as an entertainment medium ? 48

What Were the Drivers of This Change ? Technology ? Government policy ? Other media substitutes ? 49

Why Market Leaders Suffered ? è Walkman vs i. Pod è HMT vs. Titan è HLL vs. Nirma è Bajaj vs. Honda è Dot. com boom, then bust and now resurgence è Market leadership today cannot be taken for granted. New and more efficient companies are able to upstage leaders in a much shorter period. 50

Factors Influencing Company’s Marketing Strategy 51

The macro-environment is the assessment of the external forces that act upon the firm and its customers, that create threats & opportunities 52