1. 20/04/2017
AIMA-CME

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

3. 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

4. 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.

5. 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

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

7. 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

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

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

10. Marketing Management Philosophies
20/04/2017
Production
Product
Selling
Marketing- Relationship Marketing
-Holistic Marketing

11. 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.

12. 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.

13. 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.

14. 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.

15. Total 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.

16. 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.

17. Holistic Marketing Dimensions

18. 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.”

19. Marketing Management Tasks
20/04/2017
Developing marketing strategies
Capturing marketing insights
Connecting with customers
Building strong brands
Shaping market offerings
Delivering value
Communicating value
Creating long-term growth

20. Value & 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.

21. Factors Influencing Company Marketing Strategy

22. 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?

23. Value 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.

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

25. 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.

26. Customer 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.

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

28. Partner 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

29. Customer Loyalty & Retention
Customer Lifetime Value
The 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.

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

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

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

34. Two Views of the Value Delivery Process

35. The Generic Value Chain

36. A Holistic Marketing Framework

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

38. 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

39. 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

40. 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

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

42. Strategic 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

43. The Strategic-Planning, Implementation, and Control Process

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

45. 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
Strength & Weaknesses
Identify opportunity
Identity Core Competencies
Fit internal Competencies with external opportunities
Firm Strategies

46. 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

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

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

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

50. 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.

51. Factors Influencing Company’s Marketing Strategy

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