marketing management for media people 2 what is marketing…?? selling? advertising? promotions?...
TRANSCRIPT
Marketing Management for Media people
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What is Marketing…??What is Marketing…??
Selling?
Advertising?
Promotions?
Making products available in stores?
Maintaining inventories?
All of the above, plus much more!
Selling?
Advertising?
Promotions?
Making products available in stores?
Maintaining inventories?
All of the above, plus much more!
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Marketing = ?Marketing = ?
Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, services to create exchanges that satisfy individual and organizational goals
American Marketing Association
Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, services to create exchanges that satisfy individual and organizational goals
American Marketing Association
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Marketing = ?Marketing = ?
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.
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.
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Marketing = ?Marketing = ? Marketing is the sum of all activities that take you to a
sales outlet. After that sales takes over. Marketing is all about creating a pull, sales is all about
push. Marketing is all about managing the four P’s –
product price place promotion
Marketing is the sum of all activities that take you to a sales outlet. After that sales takes over.
Marketing is all about creating a pull, sales is all about push.
Marketing is all about managing the four P’s – product price place promotion
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The 4 Ps & 4CsThe 4 Ps & 4Cs
MarketingMix
Product
Price Promotion
Place
CustomerSolution
CustomerCost
Communication
Convenience
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Difference Between - Sales & Marketing ?
Difference Between - Sales & Marketing ?
Salestrying to get the customer to want what the company produces
Marketing trying to get the company produce what the customer wants
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Scope – What do we marketScope – What do we market
Goods Services Events Experiences Personalities Place Organizations Properties Information Ideas and concepts
Goods Services Events Experiences Personalities Place Organizations Properties Information Ideas and concepts
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Core Concepts of MarketingCore Concepts of Marketing
Based on : Needs, Wants, Desires / demand
Products, Utility, Value & Satisfaction
Exchange, Transactions & Relationships
Markets, Marketing & Marketers.
Based on : Needs, Wants, Desires / demand
Products, Utility, Value & Satisfaction
Exchange, Transactions & Relationships
Markets, Marketing & Marketers.
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In order to understand Marketing let us begin with the Marketing Triangle
In order to understand Marketing let us begin with the Marketing Triangle
Customers
CompetitionCompany
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Who is a Customer ??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 . . . . .
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Customer –Customer –
CUSTOMER has needs, wants, demands and desires
Understanding these needs is starting point of the entire marketing
These needs, wants …… arise within a framework or an ecosystem
Understanding both the needs and the ecosystem is the starting point of a long term relationship
CUSTOMER has needs, wants, demands and desires
Understanding these needs is starting point of the entire marketing
These needs, wants …… arise within a framework or an ecosystem
Understanding both the needs and the ecosystem is the starting point of a long term relationship
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Customers - Problem SolutionCustomers - Problem Solution
As a priority , we must bring to our customers “WHAT THEY NEED”
We must be in a position to UNDERSTAND their problems
Or in a new situation to give them a chance to AVOID the problems
As a priority , we must bring to our customers “WHAT THEY NEED”
We must be in a position to UNDERSTAND their problems
Or in a new situation to give them a chance to AVOID the problems
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Customer looks for ValueCustomer looks for Value
Value = Benefit / Cost
Benefit = Functional Benefit + Emotional Benefit
Cost = Monetary Cost + Time Cost + Energy Cost + Psychic Cost
Value = Benefit / Cost
Benefit = Functional Benefit + Emotional Benefit
Cost = Monetary Cost + Time Cost + Energy Cost + Psychic Cost
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Strategic MarketingStrategic Marketing
Strategic marketing management is concerned with how we will create value for the customer
Asks two main questions
What is the organization’s main activity at a particular time? – Customer Value
What are its primary goals and how will these be achieved? – how will this value be delivered
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The Strategic-Planning, Implementation, and Control ProcessThe Strategic-Planning, Implementation, and Control Process
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Business Strategic-Planning ProcessBusiness Strategic-Planning Process
External environment
(Opportunity &
Threat analysis)
Internal Environment
(Strength/ Weakness analysis)
Goal FormulationBusiness Mission
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Strategy FormulationStrategy Formulation
Environmental Analysis
Internal AnalysisCompetitorCustomerSupplier
RegulatorySocial/ Political
Technology Know-HowManufacturing Know-How
Marketing Know-HowDistribution Know-How
Logistics
Strength & Weaknesses
Identity Core Competencies
Opportunities & Threats
Identify opportunity
Fit internal Competencies with external opportunities
Firm Strategies
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CONTENTS of MARKETING PLAN CONTENTS of MARKETING PLAN Business Mission Statement
Objectives
Situation Analysis (SWOT)
Marketing Strategy Target Market Strategy Marketing Mix
Positioning Product Promotion Price Place – Distribution People Process
Implementation, Evaluation and Control
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The Marketing ProcessThe Marketing Process
Business Mission Stateme
nt
Objectives
Situation or SWOT Analysis
Implementation Evaluation,
Control
Target Market Strategy
Marketing Strategy
Product
Promotion
Place/Distribution
Price
Marketing Mix
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Why Market Leaders Suffered ?Why Market Leaders Suffered ?
HMT vs. Titan
HLL vs. Nirma
Bajaj vs. Honda
Dot.com boom, then bust and now resurgence
Market leadership today cannot be taken for granted.New and more efficient companies are able to upstage leaders in a much shorter period.
HMT vs. Titan
HLL vs. Nirma
Bajaj vs. Honda
Dot.com boom, then bust and now resurgence
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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Factors Influencing Company’s Marketing Strategy
Factors Influencing Company’s Marketing Strategy
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The macro-environmentThe macro-environment
is the assessment of the external forces that act upon the firm and its customers, that create threats & opportunities
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P r o d u c tP r o d u c tP r o d u c tP r o d u c t
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Anything that is offered to the market for
attention, acquisition, use or consumption that
satisfies a want or a need
Product is . . . . . Product is . . . . .
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Product Items, Lines, and MixesProduct 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 organization’s products.
A specific version of a product that can be designated as a distinct offering among an organization’s 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.
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Product MixProduct Mix
Width – how many product lines a company has
Length – how many products are there in a product line
Depth – how many variants of each product exist within a product line
Consistency – how closely related the product lines are in end use
Width – how many product lines a company has
Length – how many products are there in a product line
Depth – how many variants of each product exist within a product line
Consistency – how closely related the product lines are in end use
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Gillette’s Product Lines & MixGillette’s Product Lines & Mix
Blades and Writingrazors Toiletries instruments Lighters
Fusion – 5 bladeMach 3 TurboMach 3 Series Paper Mate CricketSensor Adorn Flair S.T. Dupont Trac II Toni S.T. DupontAtra Right GuardSwivel Silkience Double-Edge Soft and Dri Lady Gillette Foamy Super Speed Dry LookTwin Injector Dry Idea Techmatic Brush Plus
Width of the product mixWidth of the product mix
De
pth
of
the
pro
du
ct
line
sD
ep
th o
f th
e p
rod
uc
t lin
es
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What is a Service? Defining the EssenceWhat is a Service? Defining the Essence
An act or performance offered by one party to another (performances are intangible, but may involve use of physical products)
An economic activity that does not result in ownership
A process that creates benefits by facilitating a desired change in customers themselves, or their physical possessions, or intangible assets
An act or performance offered by one party to another (performances are intangible, but may involve use of physical products)
An economic activity that does not result in ownership
A process that creates benefits by facilitating a desired change in customers themselves, or their physical possessions, or intangible assets
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Some Industries - Service SectorSome Industries - Service Sector
Banking, stock broking
Lodging
Restaurants, bars, catering
Insurance
News and entertainment
Transportation (freight and passenger)
Banking, stock broking
Lodging
Restaurants, bars, catering
Insurance
News and entertainment
Transportation (freight and passenger)
Health care
Education
Wholesaling and retailing
Laundries, dry-cleaning
Repair and maintenance
Professional (e.g., law, architecture, consulting)
Health care
Education
Wholesaling and retailing
Laundries, dry-cleaning
Repair and maintenance
Professional (e.g., law, architecture, consulting)
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Classification of ServicesClassification of Services
Pure Tangible Product
Materials / Components
Computers
Major Product withMinor Services
Product = Service
Major Service withMinor Product
Business Hotels
Good Transportation
Banking Pure Intangible Service
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Intangibility – Services are intangibility cannot be seen, tasted, felt, heard or smelled before purchase.
Inseparability - Services are produced and consumed simultaneously.
Variability or Heterogeneity – Services are highly variable
Perishability – Services cannot be stored.
Non Ownership - Services are rendered but there is no transfer of title
Intangibility – Services are intangibility cannot be seen, tasted, felt, heard or smelled before purchase.
Inseparability - Services are produced and consumed simultaneously.
Variability or Heterogeneity – Services are highly variable
Perishability – Services cannot be stored.
Non Ownership - Services are rendered but there is no transfer of title
Major Characteristic of Services Major Characteristic of Services
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The Marketing MixThe 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 firm’s operations that have the potential to affect the relationship with customers.
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 firm’s operations that have the potential to affect the relationship with customers.
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The “8Ps” of Integrated Service Management vs. the Traditional “4Ps”
The “8Ps” of Integrated Service Management vs. the Traditional “4Ps”
► Product elements
► Place, cyberspace, and time
► Process
► Productivity and quality
► People
► Promotion and education
► Physical evidence
► Price and other user outlays
► Product elements
► Place, cyberspace, and time
► Process
► Productivity and quality
► People
► Promotion and education
► Physical evidence
► Price and other user outlays
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The Give and Get of MarketingThe Give and Get of Marketing
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Great Words on MarketingGreat Words on Marketing
1. “The purpose of a company is ‘to create a customer…The only profit center is the customer.’”
2. “A business has two—and only two—basic functions: marketing and innovation. Marketing and innovation produce results: all the rest are costs.”
3. “The aim of marketing is to make selling unnecessary.”
4. “While great devices are invented in the Laboratory, great products are invented in the Marketing department.”
5. “Marketing is too important to be left to the marketing department.”
1. “The purpose of a company is ‘to create a customer…The only profit center is the customer.’”
2. “A business has two—and only two—basic functions: marketing and innovation. Marketing and innovation produce results: all the rest are costs.”
3. “The aim of marketing is to make selling unnecessary.”
4. “While great devices are invented in the Laboratory, great products are invented in the Marketing department.”
5. “Marketing is too important to be left to the marketing department.”
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Drivers of Customer SatisfactionDrivers of Customer Satisfaction
Many aspects of the firm’s value proposition contribute to customer satisfaction:
The core product or service offered
Support services and systems
The technical performance of the firm
Interaction with the firm and it employees
The emotional connection with customers
Ability to add value and to differentiate as a firm focuses more on the top levels
Many aspects of the firm’s value proposition contribute to customer satisfaction:
The core product or service offered
Support services and systems
The technical performance of the firm
Interaction with the firm and it employees
The emotional connection with customers
Ability to add value and to differentiate as a firm focuses more on the top levels
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Marketers and MarketsMarketers and MarketsMarketers are focused on stimulating
exchanges with customers who make up markets – B2C or B2B.
The market is comprised of people who play a series of roles: decision makers, consumers, purchasers, and influencers.
It is absolutely essential that marketers have a detailed understanding of consumers, their needs and wants.
Much happens before and after the sale to affect customer satisfaction
Marketers are focused on stimulating exchanges with customers who make up markets – B2C or B2B.
The market is comprised of people who play a series of roles: decision makers, consumers, purchasers, and influencers.
It is absolutely essential that marketers have a detailed understanding of consumers, their needs and wants.
Much happens before and after the sale to affect customer satisfaction
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Stages of Customer InteractionStages of Customer Interaction
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What Changed in Marketing…What Changed in Marketing…
• 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 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
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Are newspapers truly Are newspapers truly marketing-savvy and marketing-savvy and customer - centric?customer - centric?
Are newspapers truly Are newspapers truly marketing-savvy and marketing-savvy and customer - centric?customer - centric?
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Myth 1 – The larger the range of products, the more customer-centric I am.
Myth 1 – The larger the range of products, the more customer-centric I am.
Mythbuster – The range of products has Mythbuster – The range of products has
emerged from beingemerged from being
competition-centric.competition-centric.
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Myth 2 – Better technology (read CRM) leads to
better customer service.
Myth 2 – Better technology (read CRM) leads to
better customer service.
Mythbuster – TechnologyMythbuster – Technology
alone does not deliver, alone does not deliver,
helps people do.helps people do.
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Myth 3 – Launch a product and the customer will start
using instantly.- Give a customer a card and he will learn how to play
with it immediately
Myth 3 – Launch a product and the customer will start
using instantly.- Give a customer a card and he will learn how to play
with it immediately
Mythbuster – Customers needMythbuster – Customers need
To be educated too…To be educated too…
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Mythbuster – Customers Mythbuster – Customers are not only present are not only present where competition is.where competition is.
Myth 4 – The only way to get a customer is from
competition.
Myth 4 – The only way to get a customer is from
competition.
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Myth 5 – Just advertise and - You will sell.Myth 5 – Just advertise and - You will sell.
Mythbuster – Advertising will only sell, Mythbuster – Advertising will only sell,
Not retain customers. Not retain customers.
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Myth 6 – No difference between marketing & selling
Mythbuster – Mythbuster – “Selling focuses on the needs of the “Selling focuses on the needs of the seller; marketing on the needs of the buyer. seller; marketing on the needs of the buyer.
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Myth 7 – In the absence of relationships ‘trust’ builds media brands
Mythbuster – TMythbuster – Trust is not a differentiator at all…rust is not a differentiator at all…it is the very minimum that the customer expects!!it is the very minimum that the customer expects!!
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The real differentiator of The real differentiator of
customer – centricity in a customer – centricity in a
commoditised world of commoditised world of
media products - media products -
Customer Service !Customer Service !
