marketing intro lecture1
TRANSCRIPT
marketing management- an introduction
S.Victor AnandkumarS.Victor AnandkumarDepartment of Management Studies
School of ManagementPondicherry University
MBA What is management?
Input -> Process -> Output
Management function Vs. functional areas
No.1 job of a manager Decision-making
Types of decisions
Strategic Tactical Operational
Porter’s 3 generic strategies Low cost Differentiation Niche/focus
Marketing strategy derives from
Corporate strategy
Supply-chain or demand-chain
Types of value/utilityType Description Examples Responsible
function
Form Conversion of raw materials and components into finished goods and services
Pizza made from several ingredients
Production
Time Availability of goods and services when consumers want them
Dial-a-pizza; delivery guaranteed in 30 min.
Marketing
Place Availability of goods and services where consumers want them
Delivery at your doorstep
Marketing
Ownership (possession)
Ability to transfer title to goods or services from marketer to buyer
Pizza sales (in exchange for rupees or credit card payment)
Marketing
Core Marketing Concepts
Needs, wants, and demands
Productsand services
Value, satisfaction, and quality
Exchange, transactions,
and relationships
Markets
Production Concept
Product Concept
Selling Concept
Marketing Concept
Societal Marketing Concept
•Consumers favor products that are available and highly affordable. Improve production and distribution.•Consumers favor products that offer the most quality, performance, and innovative features.•Consumers will buy products only if the company promotes/ sells these products.
•Focuses on needs/ wants of target markets & delivering satisfaction better than competitors.
•Focuses on needs/ wants of target markets & delivering superior value.
Evolution of Marketing
Compare these …
Motorola Vs. Nokia Barnes & Noble Vs. Amazon Coca-cola Vs. Snapple, Gatorade Nestle Vs. Starbucks
What is common among the left-siders?
Marketing Vs Sales
Factory ExistingProducts
Sellingand
Promoting
ProfitsthroughVolume
The Selling Concept
StartingPoint Focus Means Ends
Market CustomerNeeds
IntegratedMarketing
Profitsthrough
Satisfaction
The Marketing Concept
TargetConsumers
Product
Place Price
Promotion
Marketi
ng
Imple
mentat
ion
Marketing
Planning
Marketing
Control
Marketi
ngAn
alysis
Competitors
MarketingIntermediaries
PublicsSuppliers
Demographic-Economic
Environment
Technological-Natural
Environment
Political-Legal
Environment
Social-Cultural
Environment
The Marketing Process
Marketing strategy S-T-P
It’s all about customers!
All businesses have customers.Successful businesses know their
customers.Struggling businesses are still trying
to identify their customers.Failing businesses usually have no
idea who their customers are.
BrandName
QualityLevel
Packaging
Design
FeaturesDelivery& Credit
Installation
Warranty
After-Sale
Service
Core Benefit orService
Expected Product Basic Product
Augmented Product
What about the product?What about the product?
Levels of product
Generic product is undifferentiatedOffered product makes the
difference in getting the customersDelivered product makes the
difference in keeping the customers
Where are we?Where are we?Augmented product is a condition of a
mature market or of relatively experienced or sophisticated customersCustomer-centric differentiation and
positioning hold the key!Potential product lies in the future
Customer-orientation and continuous innovation holds the key!
Listen to the customer
Don’t tell me how good your product is;
Tell me how good it will make me!
Levels of the product Core benefit
lodging/accommodation Basic product
A room Expected product
A clean room with bath attached Augmented product
Bed and breakfast; pick-up Potential product
Customized room and menu (from your past preferences)
Segmentation Looks at the nature and extent of diversity
of customers’ needs and wants Offers an opportunity for an organization to
focus its business capabilities on the requirements of one or more groups of customers
Down the history lane: mass Vs. micro, segment Vs. niche, one-to-one marketing
Targeting
Once the market-segment opportunities have been identified, the organization got to decide how many and which ones to target
Objective: match-making between value requirements of each segment and organization’s distinctive capabilities
Positioning
The act of designing the company’s offer so that it occupies a distinct and valued place in the target customers’ minds
Process: Identify positioning concepts for each
target segment Select, develop and communicate chosen
positioning concept
The heart of the matter People buy on the differences It’s the differences that win the day! An ability to create compelling differences remains
at the heart of competitive advantage The battle has always been (and still is) about
differentiation Create winning differences in customers’ minds