marketing intro lecture1

marketing management- an introduction

S.Victor AnandkumarS.Victor AnandkumarDepartment of Management Studies

School of ManagementPondicherry University

victor.dms@pondiuni.edu.in

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