MARKETING MANAGEMENT

An Introduction

marketing
Orientation Production Product Selling Marketing Profit driver Production Methods Quality of Product Selling methods Need and Wants of customer Time Frame Untill 1950s Untill 1960s 1950 and 1960s 1970 to now..

Customer Orientation Product Promotion Price Place

SIVA Solution Information Value Access

Orientation Relationship Marketing/Management Business/Industrial Marketing Social Marketing Branding

Profit driver Building & keeping good Customer relations Building and keeping relationships between Organizations Benefit to society Brand Value

Timeframe 1960 till now 1980 till now

1990 onwards 1980 till now

Few definitions
Marketing is the social process by which individuals and groups obtain what they need and want through creating and 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 of an organization so that they meet the changing needs of the customer on whom the organization depends.
Palmer

 Marketing is not only much broader than selling, it is not a specialized activity at all It encompasses the entire business. It is the whole business seen from the point of view of the final result, that is, from the customer's point of view. Concern and responsibility for marketing must therefore permeate all areas of the enterprise.
Drucker

Key extracts:
Marketing focuses on the satisfaction of customer needs, wants and 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 notfor-profit organizations adopt the concept of marketing, this need not always be the case. More recent definitions recognize the influence of marketing upon society.

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

THE MARKETING CONCEPT

All activities are focused upon providing customer satisfaction Every employee in an organization is a marketer Internal communication

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

SELLING CONCEPT
Product or service is not designed and made according to customers requirements Customer has to be persuaded to believe that the product or the service meets his requirements Customer dissatisfied and bad-mouths company Marketing makes selling redundant

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

SERVICE CONCEPT
Customers buy services, not products Service model of marketing instead of selling the title to the products Hindrance: Mindset of the customer and marketer, and their unwillingness to experiment with this model Can be easily applied in businesses like automobiles, carpeting, furnishing, and for most consumer durable items

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 well defined theme

Experience Concept (Contd.)

Companies must introduce cues that affirm the 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, the more effective and memorable it becomes

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 being efficient and effective

Efficiency Versus Effectiveness (Contd.)

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

MARKET VERSUS INTERNALLY DRIVEN BUSINESSES

MARKET DRIVEN BUSINESS Display customer concern throughout the business Expenditure on marketing research is an investment Understand competitors objectives and strategies, and anticipate competitive actions Marketing spend is an investment that has long term consequences INTERNALLY DRIVEN BUSINESS Fail to understand the real concerns of customers Marketing research is nonproductive activity and rely on anecdotes and received wisdom Content to underplay the competition Marketing expenditure Is superfluous that never appears to produce benefits

Market Versus Internally Driven Businesses (Contd.)

MARKET DRIVEN BUSINESS Employees who take risks and are innovative in serving customers rewarded

INTERNALLY DRIVEN BUSINESS Reward time serving, and ability to not make mistakes

Search for latent markets Happy to stick to their existing markets that no other company products and markets has exploited Sensitive, fast and flexible to be able to respond to changes in the market produce me-too copies of offerings already in the market

Impact of marketers commitments

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

Profile of Customer-centric Organizations (Contd.)

Desire to serve customer needs better than competition Organizational structure must reflect marketing strategy Clear communication

LIMITATIONS OF THE MARKETING CONCEPT

Marketing concept as an ideology Marketing and society Marketing as a constraint to innovation

Consumer Analysis Market Analysis Competition Analysis Distribution Channel Review and Choice Designing the MARKETING MIX Evaluating the Economics Go back and revise

PRODUCT Functionality Appearance Quality Brand Warranty Packaging Service/Support

PRICE Least price Discounts Allowances Financing Leasing options

PLACE Channel Members

PROMOTION Advertising

Channel Motivation Personal selling Market coverage Locations Logistics Service levels Public relations Media Sales promotions E-marketing Budget

Marketing Mix

MARKETING MIX
PRODUCT PRICE PLACE PROMOTION CRITICISM OF THE 4Ps APPROACH TO MARKETING

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.)

SEGMENTATION, TARGETING, AND POSITIONING Segmentation Target markets Positioning MARKETING ORIENTATION AND BUSINESS PERFORMANCE

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