Transcript Consuming class

Marketing Process
Market Structure based on Consumption and Ownership Pattern
Very Rich, those who buy the most expensive consumer pdts
Consuming class – those that buy bulk of consumer goods
Marketed in the country.
Indian Market
Climbers who own or purchase slightly more expensive consumer
Goods like B/W TV, sewing m/s, mixers.
Aspirants – those who purchase a few inexpensive consumer
Goods like cycle, radio/transistor
Destitutes - Consume very little of m/f goods
Market Structure based on SEC Classification
Education – Illiterate, School upto 4th, Literate but no formal
Schooling, School 5th – 9th, SSC/HSC, Some College but not
A graduate, Graduate/Post Graduate – General, Graduate /
Post Graduate- Professional
SEC Urban
Occupation – Unskilled Workers, Skilled Workers, Petty traders,
Shop Owners, Businessmen / Industrial with no of employees (a) 1-9
(b) 10+, Self Employed Professional, Clerical / Salesman,
Supervisory Level, Officers / Executive Junior, Officers /
Executives – Middle/Senior
The eight socio-economic classes in the urban area – A1, A2, B1, B2, C, D, E1, E2
Market Structure based on SEC Classification
Education – Illiterate, School upto 4th, Literate but no formal
Schooling, School 5th – 9th, SSC/HSC, Some College but not
A graduate, Graduate/Post Graduate – General, Graduate /
Post Graduate- Professional
SEC Rural
Type of House – Pucca, Semi Pucca, Kuchha
The four socio-economic classes in the rural area are R1, R2, R3, R4
New Product Market Management Process
Marketing Management Process
Existing Product Market Management Process
In many organizations the new product managers and existing product managers are separate. The new
Product Market management process starts with need identification or idea generation and moves onto
concept testing, Business analysis, test marketing, commercialization.
Existing product managers using classical marketing principles to design, develop and monitor marketing
Programs for a brand.
Opportunity identification
Analyze
opportunities
Opp. Eval. Demand estimation
Understand Customers / Buyers
Analyze Competition
Select Target markets
Develop Marketing
Strategies
Marketing
Management
Process
Position
Initiate Pdt Dev, Test, Launch, Monitor
Plan Marketing Programs
Transform Mktg Strategy into
Marketing Programs.
Decide on Marketing Expenditure
And Market allocation
4Ps
Organize, Implement, Control Marketing Plan
- Build Mktg Organization to deliver value
- 3 types of control
- Annual Plan Control ( quarter by quarter)
- Profitability Control
- Marketing Strategy Control
Connect with Customers - STP
Marketing Management
Process is Value Delivery
Process
Create and Capture Value – Products and Price
Deliver Value – Place / Distribution
Communicate Value (Sales, Advertising)
The Marketing management process can also be seen as a
Customer Relationship Management process
Look at Customer
Customer Value, Long Term Customer Value
Customer Satisfaction as a precursor to relationships
Look at Relationship
Customer Retention, Intimacy, Loyalty
Understanding Nature of Relationship
- Trust, Commitment
Building long term relationship
Look at Management of Customer Relationships
Customer Equity
Relationship risk
Build competitive advantages using relationships
One of the most important elements of the Marketing Process is Managing the
Marketing Environment
Mega Marketing
Identify Trends and Megatrends
Managing the Marketing
Environment
Monitor environmental forces
Monitor Changes in Consumer tastes and preferences
Understand the impact of environmentalism on marketing
Manage consumer action groups – Consumer Protection Act
Market externalities are decisions taken by members external to the decision making unit of firm
Management of market externalities is called MegaMarketing
This includes Lobbying with the Government, Banking relations, Decisions of Channel members
Some Trends in Marketing

Increased use of e-commerce and e-business

Mass customization

satisfaction to delight and ecstasy; value to super-value

increasing brand proliferation
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Dual Nature – Relationship Marketing and Transaction Marketing

Redefinition of wants / needs ; today’s wants is tomorrow’s needs
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Emergence of Mass- Affluent Markets
One of the most important outputs of the marketing process is the marketing plan.
Executive Summary
Situation Analysis – Information on sales, costs, profits, market, competitors,
macro-environment conditions and pertinent historical information
– used for a SWOT Framework.
Opportunity and - Review opportunities done in SWOT,
issue analysis
Identify issues affecting org objectives
Objectives – Sales volume, market share, profit,
customer satisfaction goals
Marketing Strategy - STP, Use inputs of Purchasing, M/F,
Sales, Finance, HR
Action Programs (quarter by quarter) – Who will do, what will they do,
How much it will cost, how is progress measured
Financial Projections – Proforma P/L, Bal. Sheet, Budget Approvals
Schedule of Implementation and Controls
Important Aids to Marketing Plan
Sales response functions
sales – price,
sales-marketing expenditure,
sales-advertising
Profit Optimization Planning
Resource Allocation Optimization