8/9/2012

Marketing Basics 09/08/2012

PGDPM

Alok Yadav

What does marketing Means to you?

8/9/2012

Marketing means different things to different people

The Marketing Function is the Process of bringing Buyers and Sellers together
CONSUMERS PRODUCERS

MARKETING

Marketing is Performed by All Organizations

Simple Marketing System

Communication

Industry (a collection of sellers)

Goods/services Money

Market (a collection of Buyers)

Information

8/9/2012

Marketing is not just about advertisement and Sales promotion

Marketing is a Philosophy Way of doing a business

The Industrial Revolution gave rise to large scale manufacturing, so this personal contact ended. With mass production came mass markets and mass distribution. Manufacturers were no longer able to offer a personalised service, and techniques of marketing were developed to fill this gap.

8/9/2012

Evolution of Business Models and the role of Marketing

Production

Product

Selling

Marketing

Societal Mktg

As business philosophy has evolved, so has the role of marketingcustomer satisfaction is now at the core of most successful corporations

Marketing Philosophies Production Concept: The whole focus of the company is the production Give them better and cheaper products we can do this by : company improving production distribution Good method if: demand is higher than supply cost of producing is too high

Consumers wanted just basic transportation at an affordable price

8/9/2012

Ford Model T car

Marketing Philosophies Product Concept: The whole focus is to improve the product features make the product better The idea is that if we make it better they will keep buying it problem with this: May be the customers want something different other products may replace this product

8/9/2012

Marketing Philosophies Selling Concept: The company pushes promotion and advertising The idea is that the more we promote, the more they will buy we use this method to educate and tell the customers about the product or service This is not a complete process. starts with the product then they sell....unlike the marketing process

Marketing Philosophies Marketing Concept: (this is the one we will use) this is a complete approach process: first find out the needs and wants of customers then develop and deliver the goods that will satisfy these needs and want this process starts with the needs and wants and then builds the product...unlike the selling concept most major successful companies use this concept

8/9/2012

Marketing Philosophies Societal Marketing Concept: This is the newest marketing philosophy It is the marketing concept with a conscience they think of what is good for society they think about environmental items they think about a better life for people they think about the world and social impact

Designing a Customer-Driven Marketing Strategy

Company (Orientations, Philosophies, Concepts) Towards the Marketplace

Consumers prefer products that are widely available and inexpensive Consumers favor products that offer the most quality, performance, or innovative features Consumers will buy products only if the company aggressively promotes/sells these products Focuses on needs/ wants of target markets & delivering value better than competitors Focuses on needs/ wants of target markets & delivering value better than competitors that preserves the consumers and societys well-being

Production Concept Product Concept Selling Concept Marketing Concept

Societal Marketing Concept

8/9/2012

Core Concepts of Marketing

Target Markets & Segmentation Needs, Wants, and Demands Product or Offering Value and Satisfaction Exchange and Transactions Relationships and Networks Marketing Channels Supply Chain Competition Marketing Environment

Core Marketing Concepts

Needs, wants, and demands

Products and Services

Core Marketing Concepts

Markets Value, satisfaction, and quality Exchange, transactions, and relationships

Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

Chapter 1- slide 23

1. Understanding Marketplace & Customer Needs

Its 5 Core Concepts

1. 2. 3. 4. 5.

Customer needs, wants, and demands Market offerings Value and satisfaction Exchanges and relationships Markets

8/9/2012

Understanding the Marketplace and Customer Needs

Customer Needs, Wants, and Demands
States of deprivation Physicalfood, clothing, warmth, safety Socialbelonging and affection Individualknowledge and self-expression

Needs Wants Demands

Form that needs take as they are shaped by culture and individual personality

Wants backed by buying power

Understanding the Marketplace and Customer Needs

Market offerings are some combination of Products, Services, info, or experiences offered to a market to satisfy a need or want. Its not limited to physical Product, it also include Services & other entities, such as persons, places, information & ideas. Marketing myopia: Sellers who are so taken with their Product that they focus only on existing wants & lose sight of underlying customer needs suffer from marketing myopia.

Customer Value and Satisfaction Expectations

Customers form expectations about value & satisfaction that various marketing offers will deliver and buy. Marketers must be careful to set the right level of expectations. If they set expectations too low, they may satisfy those who buy but fail to attract enough buyers. If they raise expectations too high, buyers will be disappointed. Customer satisfaction depends on a products perceived performance in delivering value relative to a buyers expectations

8/9/2012

Understanding the Marketplace and Customer Needs

Customer Value and Satisfaction Expectations

Customers
Value and satisfaction

Marketers
Set the right level of expectations Not too high or low

Understanding Marketplace & Customer Needs

Exchanges and relationships

Marketing occurs when people decide to satisfy needs and wants through exchange relationships

Exchange is the act of obtaining a desired

object from someone by offering something in return

For an exchange to take place.

At least two parties must participate. Each must have something of value. Each must want to deal with the other. Each must be free to accept or reject the offer. Each party must be able to communicate and deliver.

A transaction consists of a trading of values between two parties. Marketing consists of actions taken to build & maintain desirable exchange relationships with target audiences. Marketers want to build strong relationships by consistently delivering superior customer value. This is part of relationship marketing.

10

8/9/2012

Markets and the marketing system A market is the set of actual and potential buyers Marketing means managing markets to bring about profitable customer relationships. Buyers also carry on marketing. Consumers do marketing when they search for the goods they need at prices they can afford. Company purchasing agents do marketing when tracking sellers & bargain for good terms

Main elements in a modern marketing system Company & competitors send offers & messages to consumers. All actors in the system are affected by environmental forces

2. Designing a Customer-Driven Marketing Strategy

Marketing management is the art and science of choosing target markets and building profitable relationships with them. Marketing managers aim is to find, attract, keep, and grow target customers by creating, delivering, and communicating superior customer value.
What customers will we serve? How can we best serve these customers?

11

8/9/2012

Designing a Customer-Driven Marketing Strategy

Selecting Customers to Serve

Market segmentation refers to dividing the markets into segments of customers Target marketing refers to which segments to go after Marketing management is customer management and demand mgt

Designing a Customer-Driven Marketing Strategy

Selecting Customers to Serve

Demarketing is marketing to reduce demand temporarily or permanently; the aim is not to destroy demand but to reduce or shift it

Designing a Customer-Driven Marketing Strategy

Choosing a Value Proposition

The value proposition is the set of benefits or values a company promises to deliver to customers to satisfy their needs Company must decide how it will serve targeted customers - how it will differentiate & position itself in the marketplace. Value propositions differentiate one brand from another answering, Why should I buy your brand rather than a competitors?

12

8/9/2012

Designing a Customer-Driven Marketing Strategy

Choosing a Value Proposition

The value proposition is the set of benefits or values a company promises to deliver to customers to satisfy their needs Company must decide how it will serve targeted customers - how it will differentiate & position itself in the marketplace. Value propositions differentiate one brand from another answering, Why should I buy your brand rather than a competitors?

Sales executives think in these terms

o 1. Sales volume rather than profit
o Increase current sales o Achieve commission and bonus

o 2. Short run rather than long run

o Think only about today's products, markets, customers and strategies o Don't think about product/market expansion strategies over the next 5 years

o 3. Individual customers rather than market segments

o Knowledgeable about individual accounts o Less interested in developing strategies for market segments

o 4. Field work rather than desk work

o Prefer to sell to customers instead of developing plans and strategies and plans of implementation

13

8/9/2012

Marketing executives think in these terms

o 1. Profit planning
o Plan sales volume around profits. o Plan product mix, customer mixes and marketing mixes to achieve profit o Plan with acceptable risk

o 2. Long run trends, threats and opportunities

o How to translate these into new products and markets o Use to develop strategies to assure long term growth

o 3. Customer types and segment differences

o Determine ways to offer superior value to the most profitable segments

o 4. Good system for market analysis, planning and control

o They are comfortable with numbers and working out financial implications of marketing plans

Marketing Is the Integrating Function

Human Resources
MARKETING CUSTOMER

Production

Finance

Legal

Collaborators

14

8/9/2012

Marketing Is the Integrating Function

Human Resources
MARKETING CUSTOMER

Production

Finance

Legal

Collaborators

Basic Concepts 1

15

8/9/2012

The Marketing Mix

The set of controllable, tactical marketing tools that the firm blends to produce the response it wants in the target market.

Marketing Mix

Product

Place

Price

Promotion

Marketing Mix

Product

Place Targeted Customers

Price

Promotion

16

8/9/2012

The 4 Ps of the Marketing Mix

Basic concepts 2

Segmentation: Dividing the market into distinct groups of buyers based on demographic, psychographic and behavioural considerations

17

8/9/2012

Targeting is the actual selection of the segment you want to serve the target market is the group of people or organizations whose needs a product is specifically designed to satisfy

Positioning

is defined as the act of designing the companys offering and image to occupy a distinctive place in the mind of the target market

Class Assignment : 5 Marks

Take any brand from the book The Human Story Behind the Drugs we use Briefly Describe the brand-The Story behind it. Describe the current status of that brand, its competitors Assignment should not be more three pages.

DEADLINE 16 AUGUST 2012

18