Transcript MM01 elearning class 1

AIMA-CME
What is Marketing…??
Selling?
Advertising?
Promotions?
Making products available in stores?
Maintaining inventories?
All of the above, plus much more!
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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
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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.
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Marketing = ?
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Marketing is the sum of all activities that take you to a
sales outlet. After that sales takes over.
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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
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The 4 Ps & 4Cs
Marketing
Mix
Convenience
Place
Product
Customer
Solution
Price
Promotion
Customer
Cost
Communication
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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
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Scope – What do we market
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Goods
Services
Events
Experiences
Personalities
Place
Organizations
Properties
Information
Ideas and concepts
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Core Concepts of
Marketing
Based on :
 Needs, Wants, Desires / demand
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Products, Utility, Value & Satisfaction
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Exchange, Transactions & Relationships
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Markets, Marketing & Marketers.
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Marketing Management Philosophies
Production
Product
Selling
Marketing- Relationship Marketing
-Holistic Marketing
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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.
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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.
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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.
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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.
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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.
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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.
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Holistic Marketing Dimensions
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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.”
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Marketing Management Tasks
Developing marketing
strategies
Shaping market offerings
Capturing marketing
insights
Communicating value
Connecting with customers
Building strong brands
Delivering value
Creating long-term
growth
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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.
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Factors
Influencing
Marketing Strategy
Company
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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?
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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.
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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
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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.
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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.
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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.
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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
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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.
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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
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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
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New Marketing Landscape
Rapid Globalization
Ethics and Social Responsibility
Not-for-Profit Marketing
New World of Marketing Relationships
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Two Views of the Value Delivery Process
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The Generic Value Chain
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A Holistic Marketing Framework
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In order to understand Marketing let us begin
with the Marketing Triangle
Customers
Company
Competition
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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
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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
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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
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Customer looks for Value
Value
= Benefit / Cost
Benefit
= Functional Benefit + Emotional
Benefit
Cost
= Monetary Cost + Time Cost +
Energy Cost + Psychic Cost
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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
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The Strategic-Planning, Implementation,
and Control Process
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Business Strategic-Planning
Process
External environment
(Opportunity &
Threat analysis)
Goal Formulation
Business Mission
Internal Environment
(Strength/ Weakness analysis)
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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
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CONTENTS of MARKETING PLAN
Business Mission Statement
Objectives
Situation Analysis (SWOT)
Marketing Strategy
 Target Market Strategy
 Marketing Mix
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Positioning
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Product
Promotion
Price
Place – Distribution
People
Process
Implementation, Evaluation and Control
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The Marketing Process
Business
Mission
Statemen
t
Objective
s
Situation
or SWOT
Analysis
Marketing Strategy
Target Market
Strategy
Marketing Mix
Product
Place/Distribution
Promotion
Price
Implementation
Evaluation, Control
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Why a product like radio declined
and now once again emerging as
an
entertainment
medium
?
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What Were the Drivers of This Change ?
Technology ?
Government policy ?
Other media substitutes ?
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Why Market Leaders
Suffered ?
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Walkman vs iPod
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HMT vs. Titan
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HLL vs. Nirma
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Bajaj vs. Honda
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Dot.com boom, then bust and now resurgence
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Market leadership today cannot be taken for granted.New and
more efficient companies are able to upstage leaders in a much
shorter period.
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Factors
Influencing
Company’s
Marketing
Strategy
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The macro-environment
is the assessment of the external forces that act upon the
firm and its customers, that create threats & opportunities
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