Marketing Management Dr Mamta MohanAmity University

"I hear and I forget; I see and I remember; I do and I understand. Confucius

*Dr Mamta Mohan*Course goals

To outline the marketing function and its role within a corporations business strategies, also hopefully generating a passion for the Marketing discipline and empowering you to evaluate Marketing as a possible career choiceTo introduce you to marketing strategy and to the elements of marketing analysis: customer analysis, company analysis, and competitor analysisTo familiarize you with the elements of the marketing mix (product, pricing, promotion, and distribution strategies) and enhance your problem solving and decision making abilities in these operational areas of marketing tacticsHAVE LOTS OF FUN!

Dr Mamta Mohan

*Dr Mamta Mohan* What is Marketing

Many definitions, but for the purposes of this class well follow Kotler et al:

From a managerial point of view Marketing is a process of planning and executing the conception pricing and promotion and distribution of ideas and goods/ services to create exchanges that satisfy individual and organizational goals. MM is art and science of choosing target markets, and getting , keeping and growing customers through creating , delivering and communications superior customer value.

Dr Mamta Mohan

*Dr Mamta Mohan*What is Marketing..the process of discovering and translating consumer needs and wants into product and service specifications, creating demand for these products, services, and in turn expanding the demand

Marketer is skilled at managing customer demand , they seek to influence the level , timing and composition of demand.

Dr Mamta Mohan

*Dr Mamta Mohan*Celebrating 50 years of independence with every Indian household

NIRMABetter Products. Better value, Better living

Dr Mamta Mohan

*Dr Mamta Mohan*With due apologies to small cars ,size does matter.(so do power, economy, safety and style)

TATA Indica

Dr Mamta Mohan

*Dr Mamta Mohan*Purpose of MarketingTo create customer Peter Drucker

To create , recreate ,hold and attract the customer people dont buy products, they buy expectation of benefits Theodore levitt

Dr Mamta Mohan

*Dr Mamta Mohan*Scope of Marketing.Physical Goods. Services. Experiences. Events. Persons. Places. Properties. Organizations. Information. Ideas

Dr Mamta Mohan

*Dr Mamta Mohan*The Company orientations towards market place The production conceptThe product conceptThe selling conceptThe marketing concept -customer orientation -competitor orientation

Dr Mamta Mohan

*Dr Mamta Mohan*The Marketing OrientationWhat business are we in? marketing myopia -customer orientation- customer centeredness -competitor orientation.Intregrated MarketingMarketing mixRelationship marketing Societal marketing.

Dr Mamta Mohan

*Dr Mamta Mohan*Relationship MarketingAcquiring new customers v/s Retaining old customers

Acquiring new customers can be 5 times more expensive than the costs involved in satisfying and retaining existing customers.Average company loses 10 % of its customers each year. A decrease of 5% in the customer defection rate can increase profits by 25% to 85% depending on the industry. profits will depend on Customer lifetime value

Dr Mamta Mohan

*Dr Mamta Mohan*Marketing MixMarketing mixProductVarietyQualityDesignFeaturesBrand namePackagingSizeServiceWarrantiesPrice

list priceDiscountsAllowancespayment periodcredit termsPromotionSales promotionAdvertising sales forcepublic relationsDirect MarketingPlaceChannelscoverageAssortmentslocationsinventorytransport

Dr Mamta Mohan

*Dr Mamta Mohan* Marketing Mix StrategyOffering/mixCompany/productservicespricesCommunication mix

Advertising sales promotion

EventsPublic relationsDirect marketingpersonal sellingDistribution ChannelsTarget Customers

Dr Mamta Mohan

*Dr Mamta Mohan*Selling vis--vis Marketing

CriteriaSellingMarketing1orientationProduction capabilityMarket acceptability2ApproachsellingNeed identification

3Directionpushpull4EmphasisaggressiveCreating a niche5Business definitionIn terms of productIn terms of market the company operates in.6Time frameShort runMedium

Dr Mamta Mohan

*Dr Mamta Mohan*Core Marketing Concepts1Needs, Wants, and DemandsTarget market , positioning, segmentationOfferings and brand.Products and ServicesValue, Satisfaction (QSP triad)Marketing ChannelsSupply chainCompetitionMarketing EnvironmentMarketing planningPlease go through the definitions from the text bookUnderstand the words, the meaningsand forget about them!Important to understand that marketing is all about conceptsthe clearer they are, the easier your lives are going to beCourse Note: In this course, you will be tested on concepts, not as sterile definitions but on real-life application

Dr Mamta Mohan

*Dr Mamta Mohan*Core Marketing Concepts2Needs, Wants, and DemandsDiscussion: whats the difference between these?Discussion: why is it important to understand the difference?

Dr Mamta Mohan

*Dr Mamta Mohan*Core Marketing Concepts3Products and ServicesDiscussion: Whats the difference?Can services be made into products?Can products be made into services?

Dr Mamta Mohan

*Dr Mamta Mohan*Core Marketing Concepts4Value, Satisfaction and Quality

how would you calculate consumer value in:Consuming a can of Coca-Cola?Joining a health club?Buying a lottery ticket?Enjoying a massage at a spa?think of talk about an experience where as a consumer, you felt:Satisfied with the value you received?Dissatisfied with the value you received?

Dr Mamta Mohan

*Dr Mamta Mohan*Continued ValueTotal customer value: the bundle of benefits customers expect from a given product or service. Total customer cost: the bundle of costs customers expect to incur in evaluating, obtaining, using, and disposing of the product or service.CREATING CUSTOMER VALUE AND SATISFACTION Customer Satisfaction: Whether a customer is satisfied after purchase depends on the offers performance in relation to the buyers expectations. We may define it as:Customer satisfaction or dissatisfaction is a persons feeling of pleasure or disappointment resulting from comparing a products perceived performance (or outcome) in relation to the persons expectations.

Dr Mamta Mohan

*Dr Mamta Mohan*Core Marketing Concepts5Exchange, Transactions and RelationshipsDiscussion: an example of a non-monetary business transaction in our day-to-day lifeRecently, as the owner of a particular brand of car, my friend received an invitation to an exclusive preview of their new luxury car, accompanied by cocktails and hors doeuvres:What is the company trying to do?How will it help themimmediately and in the future?The ultimate marketing asset: an entire marketing network

Dr Mamta Mohan

*Dr Mamta Mohan*Evolution of Business Models and the role of MarketingAs business philosophy has evolved, so has the role of marketingcustomer satisfaction is now at the core of most successful corporations

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*Dr Mamta Mohan*Drivers of new economyBusiness must adjust to the Empowered Customer

Increase in buying power.Huge amount of informationGreater variety of products / services.

Dr Mamta Mohan

*Dr Mamta Mohan*RecapToday weve covered module1 of the textWeve reviewed definitions of some basic conceptsremember we have not yet reached the marketing terminology we will be dealing with for the majority of the courseTheres lots to come and lots to learnthe fun has just begun!

Dr Mamta Mohan

*Demand management:Negative demandNon existent demandLatent DecliningIrregularFull oVer ful unwholesome*There are five competing concepts under which organizations conduct marketing activities:The PRODUCTION CONCEPT holds that consumers will prefer products that are widely available and inexpensive.The PRODUCT CONCEPT holds that consumers will favor those products that offer the most quality, performance, or innovative features.The SELLING CONCEPT holds that consumers and businesses, will ordinarily not buy enough of the organizations products. The organization must therefore, undertake an aggressive selling and promotion effort.The MARKETING CONCEPT holds that the key to achieving its organizational goals consists of the company being more effective than competitors in creating, delivering, and communicating customer value to its chosen target markets.The SOCIETAL MARKETING concept holds that the organizations task is to determine the needs, wants, and interests of the target markets and to deliver the desired satisfactions more effectively than competitors in a way that preserves the consumers and societys well-being. *telecom paradigm focus is shifting from increasing the customer base to increasing the share of revenue. Customer retention is the key focus area.6-7 operators compete in the same area.Explosion of subscribers. Also in customer churn.Acquiring cost per subscriber is going down ( 1000 per customer now) but break even on new customer still takes 18-24 months.Customer asset management teams are working parallel to sales management teams, with single minded focus on retention strategies , with a direct say on all aspect of business.*Discussion:1,2