1. definitions and concepts - copy.pdf

7/31/2019 1. Definitions and concepts - Copy.pdf

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MARKETING MANAGEMENT

An Introduction


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marketing

Orientation Profit driver Time Frame

Production Production Methods Untill 1950s

Product Quality of Product Untill 1960s

Selling Selling methods 1950 and 1960s

Marketing Need and Wants ofcustomer 1970 to now..

Customer Orientation SIVA

Product Solution

Promotion Information

Price Value

Place Access


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Orientation Profit driver Timeframe

Relationship

Marketing/Management

Building & keeping good

Customer relations

1960 till now

Business/Industrial

Marketing

Building and keeping

relationships between

Organizations

1980 till now

Social Marketing Benefit to society 1990 onwards

Branding Brand Value 1980 till now


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Few definitions

Marketing is the social process by which individuals andgroups obtain what they need and want through creatingand exchanging products and value with others. Kotler

Marketing is the management process that identifies,anticipates and satisfies customer requirements profitably. The Chartered Institute of Marketing (CIM)

Marketing is essentially about marshalling the resources ofan organization so that they meet the changing needs ofthe customer on whom the organization depends. Palmer


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Marketing is not only much broader than selling, it isnot a specialized activity at all It encompasses theentire business. It is the whole business seen fromthe point of view of the final result, that is, from thecustomer's point of view. Concern and responsibilityfor marketing must therefore permeate all areas ofthe enterprise.

Drucker


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Key extracts:

Marketing focuses on the satisfaction of customer needs, wantsand requirements.

The philosophy of marketing needs to be owned by everyone from

within the organization.

Future needs have to be identified and anticipated. There is normally a focus upon profitability, especially in the

corporate sector. However, as public sector organizations and not-

for-profit organizations adopt the concept of marketing, this need

not always be the case. More recent definitions recognize the influence of marketing upon

society.


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UNDERSTANDING MARKETING

Process of finding out customer needs and serving

those needs profitably

Profit is a legitimate goal of a business organization

Essence of marketing is providing desired value to

customers

Marketing should be considered a central business

function


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THE MARKETING CONCEPT

All activities are focused upon providing

customer satisfaction

Every employee in an organization is a

marketer

Internal communication


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PRODUCTION CONCEPT

Inward looking orientation

Management becomes cost focused

Objective is cost reduction

Business mission is focused on current

production capabilities

Manufacture products and aggressively sell

them to customers


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SELLING CONCEPT

Product or service is not designed andmade according to customers

requirements Customer has to be persuaded to believe

that the product or the service meets hisrequirements

Customer dissatisfied and bad-mouthscompany

Marketing makes selling redundant


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PRODUCT CONCEPT

Companies become centered on constantly

improving the product

Myopic focus on the product No attention on the other ways in which

customers can fulfill their needs

MARKETING MYOPIA

Customer does not buy a product, he buys

an offering that fulfills his needs


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SERVICE CONCEPT

Customers buy services, not products

Service model of marketing instead of

selling the title to the products

Hindrance: Mindset of the customer andmarketer, and their unwillingness to

experiment with this model

Can be easily applied in businesses likeautomobiles, carpeting, furnishing, and for

most consumer durable items


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EXPERIENCE CONCEPT

Create an experience around the product to

make it memorable

Reaffirm it with cues at every customer

interaction point Experiences are inherently personal for a

customer

An experience should be built around a welldefined theme


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Experience Concept (Contd.)

Companies must introduce cues that affirmthe nature of the experience to the guest

Eliminate anything that diminishes,

contradicts, or distracts from the theme Customers purchase memorabilia as a physical

reminder of an experience

The more senses an experience engages, themore effective and memorable it becomes


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EFFICIENCY VERSUS EFFECTIVENESS

An efficient company produces its products

and services economically

An effective company serves the needs of

the customers

No inherent conflict between beingefficient and effective


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An inefficient but an effective company can

remain in business though its profits would

be lower

An ineffective but an efficient company will

not survive

Choosing to become effective reflects the

marketing orientation of the company

Efficiency Versus Effectiveness (Contd.)


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MARKET VERSUS INTERNALLY DRIVEN

BUSINESSES

MARKET DRIVEN

BUSINESS

INTERNALLY DRIVEN

BUSINESS

Display customer concern

throughout the business

Fail to understand the real

concerns of customers

Expenditure on marketing

research is an investment

Marketing research is non-

productive activity and rely on

anecdotes and received wisdom

Understand competitors

objectives and strategies, and

anticipate competitive actions

Content to underplay the

competition

Marketing spend is an

investment that has long term

consequences

Marketing expenditure Is

superfluous that never appears to

produce benefits


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MARKET DRIVEN

BUSINESS

INTERNALLY DRIVEN

BUSINESSEmployees who take risks and

are innovative in serving

customers rewarded

Reward time serving, and ability

to not make mistakes

Search for latent markets markets that no other company

has exploited

Happy to stick to their existingproducts and markets

Sensitive, fast and flexible to

be able to respond to changesin the market

produce me-too copies of

offerings already in the market

Impact of marketers commitments

Market Versus Internally Driven Businesses (Contd.)


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PROFILE OF CUSTOMER-CENTRIC

ORGANIZATIONS

Shared values and beliefs

Skills in understanding and responding to

customers Market intelligence

Formal and informal means of information

dissemination Responsiveness


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Desire to serve customer needs better than

competition

Organizational structure must reflectmarketing strategy

Clear communication

Profile of Customer-centric Organizations (Contd.)


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Consumer Analysis

MarketAnalysis

Competition Analysis

Distribution Channel Reviewand Choice

Designing the MARKETING MIX

Evaluating the Economics

Go back and revise


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Marketing Mix

PRODUCT PRICE PLACE PROMOTION

Functionality Least price Channel Members Advertising

Appearance Discounts Channel Motivation Personal selling

Quality Allowances Market coverage Public relations

Brand Financing Locations Media

Warranty Leasing options Logistics Sales promotions

Packaging Service levels E-marketing

Service/Support Budget


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MARKETING MIX

PRODUCT

PRICE

PLACE

PROMOTION

CRITICISM OF THE 4Ps APPROACH TOMARKETING


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CHARACTERISTICS OF AN EFFECTIVE

MARKETING MIX

Marketing mix should match customer

needs True source of competitive advantage

Well blended to form a consistent theme

Match corporate resources

Characteristics Of An Effective Marketing Mix (Contd )


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SEGMENTATION, TARGETING, AND

POSITIONINGSegmentation

Target markets

Positioning

MARKETING ORIENTATION AND BUSINESS

PERFORMANCE

Characteristics Of An Effective Marketing Mix (Contd.)


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>>> PRODUCT

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