3. 3
Marketing = ?
Marketing is a social and managerial process
by which individuals and groups obtain what
they need and want through creating and
exchanging products and value with others.
-Philip Kotler
4. 4
Marketing Management= ?
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.
6. 6
Marketing = ?
ď¨ Marketing is the sum of all activities that take you to a
sales outlet. After that sales takes over.
ď¨ Marketing is all about creating a pull, sales is all about
push.
ď¨ Marketing is all about managing the four Pâs â
ď¨ product
ď¨ price
ď¨ place
ď¨ promotion
7. 7
The 4 Ps & 4Cs
Marketing
Mix
Product
Price Promotion
Place
Customer
Solution
Customer
Cost
Communication
Convenience
8. 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. 9
Scope â What do we market
ď¨ Goods
ď¨ Services
ď¨ Events
ď¨ Experiences
ď¨ Personalities
ď¨ Place
ď¨ Organizations
ď¨ Properties
ď¨ Information
ď¨ Ideas and concepts
10. 10
Core Concepts of Marketing
Based on :
ď¨ Needs, Wants, Desires / demand
ď¨ Products, Utility, Value & Satisfaction
ď¨ Exchange, Transactions & Relationships
ď¨ Markets, Marketing & Marketers.
12. 12
Core Concepts of Marketing
ď¨ Need â food ( is a must )
ď¨ Want â Pizza, Burger, French fry's ( translation of a need
as per our experience )
ď¨ Demand â Burger ( translation of a want as per our
willingness and ability to buy )
ď¨ Desire â Have a Burger in a five star hotel
13. 13
In order to understand Marketing let us begin with the
Marketing Triangle
Customers
CompetitionCompany
14. 14
Who is a Customer ??
Anyone who is in the market looking at a product /
service for attention, acquisition, use or consumption
that satisfies a want or a need
CUSTOMER IS . . . . .
15. 15
Customer â
CUSTOMER has needs, wants, demands and
desires
Understanding these needs is starting point of the
entire marketing
These needs, wants âŚâŚ arise within a framework
or an ecosystem
Understanding both the needs and the ecosystem is
the starting point of a long term relationship
16. 16
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.
ď Performance > Expectations => Satisfaction
ď Performance < Expectations => Dissatisfaction
17. 17
Customers - Problem Solution
As a priority , we must bring to our customers
âWHAT THEY NEEDâ
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. 18
Customer looks for Value
Value = Benefit / Cost
Benefit = Functional Benefit + Emotional
Benefit
Cost = Monetary Cost + Time Cost +
Energy Cost + Psychic Cost
19. 20
Strategic Marketing
Strategic marketing management is concerned with
how we will create value for the customer
Asks two main questions
ď What is the organizationâs main activity at a
particular time? â Customer Value
ď What are its primary goals and how will these be
achieved? â how will this value be delivered
20. 21
Strategic Planning
Strategic Planning is the managerial process of
creating and maintaining a fit between the
organizationâs objectives and resources and the
evolving market opportunities.
ď¨ Also called Strategic Management Process
ď¨ All organizations have this
ď¨ Can be Formal or Informal
24. 25
The Marketing Plan
A written document that acts as a guidebook of
marketing activities for the marketing manager
25. 26
CONTENTS of MARKETING PLAN
Business Mission Statement
Objectives
Situation Analysis (SWOT)
Marketing Strategy
ď Target Market Strategy
ď Marketing Mix
ď¨ Positioning
ď¨ Product
ď¨ Promotion
ď¨ Price
ď¨ Place â Distribution
ď¨ People
ď¨ Process
Implementation, Evaluation and Control
27. 28
Why a product like radio declined
and now once again emerging as
an entertainment medium ?
28. 29
What Were the Drivers of This Change ?
Technology ?
Government policy ?
Other media substitutes ?
29. 30
Why Market Leaders Suffered ?
ď¨ HMT vs. Titan
ď¨ HLL vs. Nirma
ď¨ Bajaj vs. Honda
ď¨ Dot.com boom, then bust and now resurgence
ď¨ 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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Product Items, Lines, and Mixes
Product ItemProduct Item
Product LineProduct Line
Product MixProduct Mix
A specific version of a product
that can be designated as a
distinct offering among an
organizationâs products.
A specific version of a product
that can be designated as a
distinct offering among an
organizationâs products.
A group of closely-related
product items.
A group of closely-related
product items.
All products that an
organization sells.
All products that an
organization sells.
38. 39
Gilletteâs Product Lines & Mix
Blades and Writing
razors Toiletries instruments Lighters
Fusion â 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 mixWidth of the product mix
DepthoftheproductlinesDepthoftheproductlines
39. 40
Product Mix
Width â how many product lines a company has
Length â how many products are there in a product line
Depth â how many variants of each product exist within a
product line
Consistency â how closely related the product lines are in
end use
40. 41
Product Planning
It is a systematic decision making relating to all
aspects of the development and management of a
firmâs products, including branding and
packaging that satisfy consumers.
41. 42
Product planning process
⢠New product ideas
⢠Screening
⢠Concept Development and testing
⢠Business Analysis
⢠Product Development Programme
⢠Test Marketing
⢠Commercialization
42. 43
Branding & Packaging
Brand- all identifying marks such as trade names,
trade marks, trdae symbols, picture, package
design, distinctive colouring or lettering with or
without attractive slogan.
Packaging- An act of designing and producing the
package for product.
43. 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 firmâs operations that have the potential to affect
the relationship with customers.
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The â8Psâ of Integrated Service
Management vs. the Traditional
â4Psâ
âş Product elements
âş Place, cyberspace, and time
âş Process
âş Productivity and quality
âş People
âş Promotion and education
âş Physical evidence
âş Price and other user outlays
45. 46
Promotion mix
It is a set of controllable variables like personal
selling, advertising, publicity, sales promotion
including dealers aids and consumers aids.
47. 48
Great Words on Marketing
1. âThe purpose of a company is âto create a customerâŚThe only
profit center is the customer.ââ
2. âA business has twoâand only twoâbasic functions: marketing
and innovation. Marketing and innovation produce results: all the
rest are costs.â
3. âThe aim of marketing is to make selling unnecessary.â
4. âWhile great devices are invented in the Laboratory, great
products are invented in the Marketing department.â
5. âMarketing is too important to be left to the marketing
department.â
49. 50
What Changed in MarketingâŚ
⢠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
Old Economy New Economy
50. 51
So what will the differentiators be :So what will the differentiators be :
⢠Technology ?
⢠Brand ?