Amity School of Business Marketing Management Module – I Geetika Jain Amity Business School Amity School of Business Marketing Management Module – I Geetika Jain

What is Marketing? Marketing means “Meeting needs profitably” The process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return.

Simple Model of Marketing Process Understand the market place and customer needs & wants Design a customer-driven marketing strategy Construct an integrated marketing program that delivers superior value Build profitable relationships and create customer delight Capture value from customers to create profits and customer equity Create value for customers and build customer relationships Capture value from customers in return

Defining Marketing Management 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.

What are Consumers’ Needs, Wants, and Demands? Needs - state of felt deprivation including physical, social, and individual needs i.e hunger Wants - form that a human need takes as shaped by culture and individual personality i.e. bread Demands - human wants backed by buying power i.e. money

Understanding the Marketplace and Customer Needs Customer Needs, Wants and Demand Needs are states of felt deprivation Wants are the form human needs take as shaped by culture and individual personality Demands are human wants that are backed by purchasing power Stated needs, real needs, unstated needs, delight needs, secret needs Negative demand, non-existent demand, latent demand, declining demand, irregular demand, full demand, overfull demand, unwholesome demand

Understanding the Marketplace and Customer Needs Key customer markets- consumer markets, business markets, global markets, nonprofit and government markets Market places, market spaces and metamarkets Market Offerings- Some combination of products, services, information, or experiences offered to a market to satisfy a need or a want Goods, services, events, experiences, persons, places, properties, organizations, information, ideas

Understanding the Marketplace and Customer Needs Customer Value & Satisfaction The difference between the values the customer gains from owning and using a product and the costs of obtaining the product. Customer satisfaction depends on a product’s perceived performance in delivering value relative to a buyer’s expectations. Exchange, Transactions and Relationships Relationship marketing is the process of creating, maintaining and enhancing strong, value-laden relationships with customers and other stakeholders.

Designing a Customer-Driven Marketing Strategy Selecting Customers to Serve Market Segmentation and Target Marketing Choosing a value proposition Define how a company chooses to differentiate and position itself in the market Marketing Management Orientations Define how much weight company gives to interests of the organization, the customers and the society

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

Modern Marketing System

Marketing Management Philosophies Production Concept Product Concept Selling Concept Marketing Concept Societal Marketing Concept Customer-Driven

Marketing Management Orientations The “Production concept” holds that consumers will favor products that are widely available and highly affordable DD>SS Product’s cost is too high The “Product concept” holds that consumers will favor products that offer the most in quality, performance, and innovative features. The concept of Marketing Myopia

Marketing Management Orientations The “selling concept” holds that consumers, if left alone, will ordinarily not buy enough of the organization's products unless it undertakes an aggressive selling and promotion effort. 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 market. Reactive market orientation Proactive market orientation

Marketing Management Orientations Marketing Dept. Senior Mgmt Other Depts. Communication Products & services Channels INTERNAL MARKETING INTEGRATED MARKETING HOLISTIC MARKETING SOCIALLY RESPONSIBLE MARKETING RELATIONSHIP MARKETING Customers Channel Partners Ethics Environment Legal Community

Holistic Marketing Internal Marketing is the task of hiring, training and motivating able employees who want to serve customers well. Relationship Marketing is to develop deep, enduring relationships with all people or organizations that could directly or indirectly affect the process of the firm’s marketing activities. Integrated Marketing is to devise marketing activities and assemble fully integrated marketing programs to create, communicate, and deliver value for consumers. Socially Responsible Marketing is a philosophy that holds that a company should make good marketing decisions by considering consumer wants, the company’s requirements, consumers’ long-run interests, and society’s long-run interests.

Shifts in Marketing Management From ‘Marketing does the marketing’ to ‘everyone does the marketing’ From organizing by ‘product units’ to organizing by ‘customer segments’ From ‘Making everything’ to ‘outsourcing’ From ‘emphasizing tangible assets’ to ‘emphasizing intangible assets’ From focusing on ‘profitable transactions’ to focusing on ‘customer lifetime value’

Shifts in Marketing Management From focusing on ‘gaining market share’ to focusing on ‘building customer share’ From focusing on just the ‘financial scorecard’ to focusing also on the ‘marketing scorecard’ From focusing on ‘shareholders’ to focusing on ‘stakeholders’ From building brands through ‘advertising’ to building brands through ‘performance’ From focusing on ‘customer acquisition’ to focusing on ‘customer retention’

Shifts in Marketing Management From ‘no’ customer satisfaction measurement to ‘in-depth’ customer satisfaction measurement From ‘over-promise, under-deliver’ to ‘under-promise, over-deliver’ From focusing on ‘brick-and-mortar’ stores to focusing on the ‘brick-and-click’ and even ‘pure click’ stores. From ‘being local’ to ‘being glocal- both global and local’

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

Strategic Planning Strategic Planning is the managerial process of creating and maintaining a fit between the organization’s objectives and resources and the evolving market opportunities.

The Strategic-Planning, Implementation, and Control Process

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

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