1. 12/09/2018
Marketing Management
MODULE D
Arif Altaf

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. Simple Marketing System
Communication
Industry
(a collection
of sellers)
Market
of Buyers)
Goods/services
Money
Information

6. 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

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

8. 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

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

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

11. Core Concepts of Marketing
Needs, wants
demands
Products
Utility, Value &
Satisfaction
Markets
Marketing &
Marketers
Xchange, Transaction
Relationships

12. Core Concepts of Marketing
Need – food ( is a must )
Want – Pizza, Burger, French fry's ( translation of a need as per our experience )
Demand – Burger ( translation of a want as per our willingness and ability to buy )
Desire – Have a Burger in a five star hotel

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

14. 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

15. 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

16. How Do Consumers Choose Among Products & Services?
12/09/2018
How Do Consumers Choose Among Products & Services?
Value - the value or benefits the customers gain from using the product versus the cost of obtaining the product.
Satisfaction - Based on a comparison of performance and expectations.
Performance > Expectations => Satisfaction
Performance < Expectations => Dissatisfaction

17. 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

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

19. 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

20. 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.
Also called Strategic Management Process
All organizations have this
Can be Formal or Informal

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

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

23. 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

24. The Marketing Plan
A written document that acts as a guidebook of marketing activities for the marketing manager

25. 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

26. 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

27. Marketing Environment

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

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

30. Why Market Leaders Suffered ?
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.

31. Factors Influencing Company’s Marketing Strategy

32. External Environment is not controllable
External Marketing Environment
Demographics
Social
Change
Economic
Conditions
Political &
Legal Factors
Technology
Competition
Environmental
Scanning
Target Market
Product
Distribution
Promotion
Price
External Environment is not controllable
Ever-Changing
Marketplace
Physical / Natural

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

34. P r o d u c t

35. Product is
Anything that is offered to the market for attention, acquisition, use or consumption that satisfies a want or a need

36. Types of Products
Consumer
Products
Industrial
PRODUCTS
Services

37. Product Items, Lines, and Mixes
Product Line
Product Mix
A specific version of a product that can be designated as a distinct offering among an organization’s products.
A group of closely-related product items.
All products that an organization sells.

38. Product Mix Width – how many product lines a company has
Length – how many products are there in a product line
Depth – how many variants of each product exist within a product line
Consistency – how closely related the product lines are in end use

39. Gillette’s Product Lines & Mix
Blades and Writing
razors Toiletries instruments Lighters
Fusion – 5 blade
Mach 3 Turbo
Mach 3 Series Paper Mate Cricket
Sensor Adorn Flair S.T. Dupont
Trac II Toni S.T. Dupont Atra Right Guard
Swivel Silkience
Double-Edge Soft and Dri
Lady Gillette Foamy
Super Speed Dry Look
Twin Injector Dry Idea
Techmatic Brush Plus
Width of the product mix
Depth of the product lines

40. What is a Service? Defining the Essence
12/09/2018
An act or performance offered by one party to another (performances are intangible, but may involve use of physical products)
An economic activity that does not result in ownership
A process that creates benefits by facilitating a desired change in customers themselves, or their physical possessions, or intangible assets

41. Some Industries - Service Sector
Banking, stock broking
Lodging
Restaurants, bars, catering
Insurance
News and entertainment
Transportation (freight and passenger)
Health care
Education
Wholesaling and retailing
Laundries, dry-cleaning
Repair and maintenance
Professional (e.g., law, architecture, consulting)

42. Classification of Services
Pure Intangible
Service
Banking
Good Transportation
Major Service with
Minor Product
Business Hotels
Product = Service
Computers
Major Product with
Minor Services
Materials / Components
Pure Tangible Product

43. Major Characteristic of Services
Intangibility – Services are intangibility cannot be seen, tasted, felt, heard or smelled before purchase.
Inseparability - Services are produced and consumed simultaneously.
Variability or Heterogeneity – Services are highly variable
Perishability – Services cannot be stored.
Non Ownership - Services are rendered but there is no transfer of title

44. The Marketing Mix
The conventional view of the marketing mix consisted of four components (4 Ps): Product, Price, Place/ distribution and Promotion.
Generally acknowledged that this is too narrow today; now includes , Processes, Productivity [technology ]People [employees], Physical evidence
Marketers today are focused on virtually all aspects of the firm’s operations that have the potential to affect the relationship with customers.

45. The “8Ps” of Integrated Service Management vs. the Traditional “4Ps”
Product elements
Place, cyberspace, and time
Process
Productivity and quality
People
Promotion and education
Physical evidence
Price and other user outlays

46. The Give and Get of Marketing

47. Great Words on Marketing
12/09/2018
“The purpose of a company is ‘to create a customer…The only profit center is the customer.’”
“A business has two—and only two—basic functions: marketing and innovation. Marketing and innovation produce results: all the rest are costs.”
“The aim of marketing is to make selling unnecessary.”
“While great devices are invented in the Laboratory, great products are invented in the Marketing department.”
“Marketing is too important to be left to the marketing department.”
Drucker, Yogi Berra, A Chinese Proverb, William Davidow, David Packard

48. Drivers of Customer Satisfaction
Many aspects of the firm’s value proposition contribute to customer satisfaction:
The core product or service offered
Support services and systems
The technical performance of the firm
Interaction with the firm and it employees
The emotional connection with customers
Ability to add value and to differentiate as a firm focuses more on the top levels

49. Marketers and Markets
Marketers are focused on stimulating exchanges with customers who make up markets – B2C or B2B.
The market is comprised of people who play a series of roles: decision makers, consumers, purchasers, and influencers.
It is absolutely essential that marketers have a detailed understanding of consumers, their needs and wants.
Much happens before and after the sale to affect customer satisfaction

50. Stages of Customer Interaction

51. What Changed in Marketing…
Old Economy
New Economy
Organize by product units
Focus on profitable transactions
Look primarily at financial scorecard
Focus on shareholders
Marketing does the marketing
Build brands through advertising
Focus on customer acquisition
No customer satisfaction measurement
Over-promise, under-deliver
Organize by customer segments
Focus on customer lifetime value
Look also at marketing scorecard
Focus on stakeholders
Everyone does the marketing
Build brands through performance
Focus on customer retention
Measure customer satisfaction and retention rate
Under-promise, over-deliver

52. marketing-savvy and customer - centric?
Are Banks truly
marketing-savvy and customer - centric?

53. Myth 1 – The larger the range of products, the more customer-centric I am.
Mythbuster – The range of products has
emerged from being
competition-centric.

54. Myth 2 – Better technology (read CRM) leads to
better customer service.
Mythbuster – Technology
alone does not deliver,
helps people do.

55. Mythbuster – Customers need To be educated too…
Myth 3 – Launch a product and the customer will start
using instantly.
- Give a customer a card and he will learn how to play
with it immediately
Mythbuster – Customers need
To be educated too…

56. Mythbuster – Customers are not only present where competition is.
Myth 4 – The only way to get a customer is from
competition.
Mythbuster – Customers are not only present where competition is.

57. Mythbuster – Advertising will only sell, Not retain customers.
Myth 5 – Just advertise and - You will sell.
Mythbuster – Advertising will only sell,
Not retain customers.

58. Myth 6 – No difference between marketing & selling
Mythbuster – “Selling focuses on the needs of the seller; marketing on the needs of the buyer.

59. Myth 7 – In the absence of relationships ‘trust’ builds financial brands
Mythbuster – Trust is not a differentiator at all… it is the very minimum that the customer expects!!

60. So what will the differentiators be :
Technology ?
Brand ?

61. Customer Service ! The real differentiator of
customer – centricity in a commoditised world of financial products -
Customer Service !

62. Thank You