marketing slides 1

8/8/2019 Marketing Slides 1

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MarketingManagement


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COURSE

1. Overview Natureand scope ofmarketing

Customerorientedmarketing:

Various orientations to servethe customer

Transactions Vs Relationship marketing

2. Environment

Marketing Environment:Micro & Macro dimensions

Environment context ofmarketingin India

Indias consuming classes

3. Planning Marketing planning & Management

Marketing Strategy formulation

4. Research

Marketingresearch E-marketinginformation system

Measurement & Forecast ofthemarket offer.


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COURSE

5. Consumer Behavior:

Factors influencing buying behavior

Stages in buying

6. STP

Market segmentationandtargeting

Differentiationand positioning ofthemarket offer.

7. Product Management Productrelateddecisions, including brandingand

packaging.

New productdevelopmentand Product Life Cycle.


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COURSE

8. Pricing Decisions

Pricingdecisions intheoryand practice

Management of pricing: objectives and procedures

Methods of pricedetermination: cost, competition oriented,demand

Specific Pricingtactics

Initiatingandrespondingto Price changes

9. Promotional practices

Integratedmarketing communication

Advertising, personal selling, public relations, and sales promotion.

10. Placement Decisions

Channelmanagement

Physicaldistributionmanagement


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REFERENCE

KOTLER, KELLER, KOSHY and JHA:MarketingManagement (12th Edition: 2007) PearsonEducation

Additionallythe students areadvisedtoreadatleast one business dailyeveryday(Economic Times, Financial Express,Business Standard, and Business Line)and Business periodicals (Business India,Business Today, Business World).

Reading ofthe fortnightly4Ps iscompulsory; questions will be setintheexamination frommaterial publishedinthat periodical.


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Marketing

A socialandmanagerial process whereby

individualandgroups obtainwhatthey

needandwantthrough creatingandexchanging products andvalues with

others.

To understandthis defination, we

haveto studythe followingimportantterms.


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Value Satisfaction & Quality Products & Services

Needs, Wants & Demands

CoreMarketing concepts


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1- Need

Itis a state of feltdeprivation. Itincludes

basic physicalneeds for food, clothing, warm &

safety.

Social needs Belonging & affection.

Individual needs - Knowledge & selfexpression.Theseare basic humanmakeup & notinvented by

marketers.

Want The formtaken byahumanneedas

shaped by cultureandindividual personality.

Demand Humanwants thatare backed by

buying power.


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2- Products & Services

Products areanything that can be offered

to amarket forattention, acquisition, use or

consumptionthatmight satisfyawant orneed. It

includes physical objects ,services, persons

,places, organizations & ideas.

Services areanyactivity orbenefitthat one

party can offerto anotherthatis essentially

intangibleanddoes notresultinthe ownershipofanything.


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3 Value, Satisfaction & quality

CustomerValue : Thedifference betweenthevalues the customergains from owningandusinga productandthe cost of obtainingthe product.

Customer satisfaction : Theextends to whichaproducts perceived performancematches abuyers expectations. Ifthe products performancefalls short ofexpectations, the buyerisdissatisfied. If performancematches orexceedsexpectations, the buyeris satisfied ordelighted.

Total Quality Management : Quality can bedefinedas freedom fromdefects.

TQM means programs designedto constantlyimprovethe quality of products ,services &marketing process.


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4- Exchange, Transaction & Relationships

Exchange : Theact of obtainingadesired object

from someone by offering somethinginreturn.


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Transaction Vs Relationship Mkt.

Transaction Mkt. [Short Term]

A trade betweentwo parties thatinvolves atleasttwo things ofvalue, agreeduponconditions, atime ofagreementanda place ofagreement.

A transaction consists ofatrade ofvalues between

two parties like:- Monetarytransaction.

- Bartertransaction.

The basic objective ofthemarketeris to bringabout

aresponsemay bemorethan simply buying ortradinggoods and services.

Example: Politician Votes

Socialactiongroup Ideaacceptance


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Marketing consist ofactiontakento

obtainadesiredresponse fromatarget

audiencetowards some product,

service, idea orotherobject.


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Relationship Marketing: [Long-Term]

The process of creating, maintainingand

enhancing strong, value-ladenrelationships withcustomers and otherstake-holders.

Marketers needto buildlongtermrelationshipswithvalued customers, distributors, dealers and

suppliers.Theywantto build strongeconomic and socialconnections by promisingand consistentlydeliveringhigh- quality products, good service &

fairprices.Today, marketingis shifting fromtryingtomaximizethe profit oneachindividualtransactionto buildingmutually beneficialrelationships with

consumers and otherparties.


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Thegoal ofvery companyis to buildauniquecompanyasset calledaMarketing network.

A marketingnetwork consists ofthe companyandallits supporting stakeholders: customers,employees, suppliers, distributors, retailers, adagencies and others withwhomithas built

mutually profitable business relationships.Todaythe competitionis not between companiesbutratherbetweenwholenetworks, withthewinnerbeingthe companythathas built betternetworks.

The operating principleis simple: Buildagoodnetwork ofrelationships withkey stakeholdersand profits will follow.


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Need for Marketing Management

1- A growingemphasis on quality, valueand customersatisfaction.

2 - A growingemphasis onrelationship buildingandcustomerretention.

3 - A growingemphasis onmanaging business processandintegrating business functions.

4 - A growingemphasis onglobalthinkingandlocalmarket planning.


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5 - A growingemphasis on building strategic

alliances andnetworks.

6- A growingemphasis ondirect & online

marketers.

7- A growingemphasis on servicemarketing.

8 - A growingemphasis onhigh-techindustries.

9 - A growingemphasis onethicalmarketing

behavior.


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Distinction between Selling & Marketing

1 Selling focuses on servingtheneeds & interests of

the seller.2 - This lays emphasis on sellingwhata firmmakes.

3 - This believein producinggoods withoutidentifyingmarketing opportunities.

4 Its concernedwith convertingthe productinto cashnotwith standingthe post saledisappointment ordissatisfaction ofthe buyer. Thereis absence ofcustomerconsciousness.

5A sellers basic skilllies in coaxingthe buyerto buythe product orserviceanyhow.

6 The sellerdetermines what productis to beproduced. The product precedes the sellingeffort.


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MARKETING

ENVIRONMENT

SESSION 2


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Marketing Environment

Theactors and forces outsidemarketingthataffectMkt.Managers abilityto develop andmaintain successful

transactions withits target customers

.

TheMarketingenvironmentis madeup ofamicro-

environmentandamacro-environment.

Micro Environment

1- The Company: Indesigningmarketing plans Marketing

Managertakes the companys groups into account groups

suchas top management, finance, research & development

(R&D) ,purchasing, manufacturingandaccounting.

Alltheseinterrelatedgroups formtheinternalenvironment.


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MARKETING ENVIRONMENT

2 Suppliers: Suppliers areanimportantlinkinthecompanys overall customervaluedelivery system.

They providetheresources needed bythecompanyto produceits goods and services.

Suppliers problems like shortage, delay, laborstrikesand otherevents can cost sales in shortrunanddamagecustomersatisfactioninthelongrun. Increasein pricecanalso effectthe sales.

3 Marketing Intermediaries: Firms thathelp thecompanyto promote, sell & distributeits goods to finalbuyers, theyincluderesellers, physicaldistribution,marketing serviceagencies and financialintermediaries


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Manufacturers now facelargeandgrowingreseller

organizations. These organizations frequentlyhave

enough powerto dictateterms oreven shutthe

manufacturerout oflargemarkets.

4 Customers : The companyneeds to studyits

customermarkets closely.Thereare fivetypes of customermarkets:

a)- Consumer Market: consists ofindividuals and

households that buygoods and services forpersonal

consumption.

b)- Business Markets: Buys goods and services for

furtherprocessing or foruseintheirproduction

process.


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c)- Reseller Markets: Buys goods and services

to resellata profit.

d)- Government Markets: Consist ofgovt.agencies that buygoods & services to produce

public services ortransferthegoods and

services to others who needthem.

e)- International Markets: Consists of buyers,resellers, consumers, govt, etc. of other

countries.

f)- Competitors: TheMarketing concept states

thatto be successful, a companymust provide

greatercustomervalueand satisfactionthanits

competitors do.


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No single competitive Marketing strategy is best for allcompanies. Each firm should consider its own size andindustry position compared to those of its competitors.

g)- Publics: Any group that has an actual or potentialinterest in or impact on an organizations ability toachieve its objectives.

There are 7 types of publics:-

1. Financial Publics.

2. Media Publics.

3. Government Publics.4. Citizen action groups

5. Local publics

6. General Publics.

7.Internal Publics


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Macro Environment

The company and all of the other actors operate in alarger Macro environment of forces that shape

opportunities and pose threats to the company .There are six major forces in the companys macroenvironment.

1)- Demography: The study of human populations interms of size, density, location, age, gender, race,

occupation and other statistics.Some U.S terms in defining the population:

Baby boom - 1946-1964

Yuppies - Young urban professionals.

Bumpies - Black upwardly mobile professionals

Yummies - Young upwardly mobile mommies

DINKS - Dual income no- kids couples

DEWKS - Dual earners with kids

MOBYS - Mother older, Baby younger


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2)- Economic:

Factors that affect consumer buying power

and spending pattern.

The economic environment is filled with factors like market

pressures, trade cycle, boom or recession, general

economic conditions, needs and wants of customers etc.

These factors are of importance to markets as they affect

the saving & purchasing power.

3)- Technological:

Technological environment consists of

factors like manufacturing process, innovations and

inventions, changes & developments in & abroad.Technological changes effect the nature of production &

productivity levels. It can affect the growth of entire

industry


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4) Natural :

Natural resources that are needed as inputs

by marketers or that are affected by marketingactivities.

Marketers should be aware of the trends in the

natural environment like:

- Shortage of raw materials

- Increased pollution

- Increased govt. intervention in natural

resource intervention.

5)- Political : Laws, govt. agencies and pressure

groups that influence and limit various

organizations and individuals in a given society.


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6) Culture:

Institutions and other forces thataffectsocietys basic values, perceptions, preferencesand behavior. Peopleinagiven societymayholdmany beliefs andvalues. Theircore beliefs andvalues haveahighdegree of persistence.

Shifts in secondary cultural values:

The corevalues are fairly persistent, culturalswings do take place. Considertheimpact ofpopularmusic groups, movie personalities and

othercelebrities onyoung peoples hairstyle orclothing.

Marketers wantto predict cultural shifts in ordertospotnew opportunities orthreats.


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SESSION 3

CONSUMERBEHAVIOUR


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The mostThe most

importantimportant

thing is tothing is to

forecast whereforecast wherecustomers arecustomers are

moving, andmoving, and

be in front ofbe in front ofthem.them.


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Consumer Behavior

CB is the conduct orbehaviourthat consumers

exhibit beforethey purchasea product, duringthe purchase period, whileusingthat product

andevenafterthe producthas beenused.


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CONSUMER BEHAVIOUR

Factors affecting consumer behavior:

Thereareanumberof factors that

effectthe consumerbehavior, makehimbuy, whatto buy, wherehe buys andwhen

he buys.

Theseare Cultural factors, social

factors, personal factors, psychological

factors.


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1)- Cultural Factors:

Culturerefers to traditions , laws, rules,

conventions, beliefs, morals, customs and other

capabilities andhabits acquired byhuman

beings as amemberof society.

The basic elements of culturearevalues,

norms, symbols (e.g.language), folklore,

religions, ideas.


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CONSUMER BEHAVIOUR

1A. SUBCULTURE:

Withina culture, theremay be several

subcultures withtheirspecific beliefs,values, norms, folklore, traditions and

conventions being shared bytheir

members.

e.g.:Multi religious society

Multi caste society.


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1B. SOCIAL STRATIFICATIONS/ SOCIAL

CLASS:

Withina culture, thereexist social classes

i.e.groups withdifferent buyinghabits. Social Stratificationis beingdone onthe

basis oflevel ofeducation, occupation,

income, wealth.

A fewdecades back, the basis of social

stratificationwas caste system.


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Social classes refers to largegroups of

peoplerelativelyhomogeneous inaculture orsocietywho share similar

values, interests, life styles and behavior.

2.SOCIAL FACTORS:

Consist ofreferencegroups, family,

persons diverse socialroles and statuses

also have profoundinfluence onthebuying behaviorofthe consumer.


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2A. REFERENCE GROUPS:

A referencegroup is a small socialgroup

to whicha consumerbelongs oraspires to

belongandwhose beliefs, values, norms

and behaviorareaccepted byhim suchas

family, relatives, friends, colleagues, etc.

Suchgroups have powerfulinfluence on

theattitudeand buying behaviorof theirmembers.


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e.g. (a). A ladywouldliketo purchaseadress orany otherproductlike

mobile, cosmetics etc., whichhercolleagues inthe officehad brought.

(b).MTV culture.


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2B. FAMILY:

Familyis definedas two ormore peoplelivinginthe samehouseholdandrelatedby blood, marriage oradoption.

Notindividual, butanumberof familymembers maybeinvolvedinmakingpurchasedecisions.

Dependinguponthetypes of products to

be purchased, differentmembers ofafamilymay beinvolvedinmakingpurchasedecisions, differentmembers offamilymayassumedominaterole.


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2 C. ROLES AND STATUS :

Therole one plays as amemberofa

particularsocialgroup orthe status orthe

position oneholds inagroup also

influences the buying behavior.

A consumermakes purchasedecisionthat

he thinks reflects his roleand status.


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3. PERSONAL FACTORS:

Personal factors suchas- Age

- Occupation

- Economic circumstances- Life style orliving pattern

- Personality,

affectthe buying behaviorofa person.


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Thetype of clothes onewears,

Thekind ofmusic onelistens, Thekind of books onereads,

reflects Personal factors.

A persons self conceptalso influences hisbehaviori.e.whathethinks ofhimself.

e.g.:the self concept ofa personmaybethat

heis sober. Hewill buy simple & sobercolored clothes & wouldneverliketo wear

outlandishdress.


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4.PSYCHOLOGICAL FACTORS

4a.Motivation:

Theword motivation has beenderived fromtheword motives.

Motiveis thatwhichmoves thewillto actinaparticularway.

Thesemotives maybe ones needs, wishes,purposes, objectives and capitalgoals.

Theyactas thedriving forces whichimpelapersonto acttowards fulfillingthem.


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4b. Perception:

Perceptionmeans theways a persons or

anindividualinterprets a situation,

information ormessageand forms an

opinion.

Different persons mayhavedifferentperception forthe sameinformation or

message.

Therearethree perceptional processesandanunderstanding ofthese canhelp in

predicting consumerbehavior:


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4.b.(i) Selectiveattention ornoticeability:

Itmeans that peoplenotice onlywhat

interests them oris relatedto theirneeds.

Marketers should striveto transmitthose

messages that catchtheattention of

prospective consumers.

4b.(ii) Selectivedistortion:

Itis a process inwhichthe person

manipulates ortwists theinformation ormessages inawayhelikes it.


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Hedraws a personalmeaningandinterprets itaccordingto his preconceived

notions.4b.(iii) Selectiveretention:

Humanmindhas alimitedand short

memoryand peoplerememberonlythosemessages which supporttheirattitudesand beliefs.

Marketing should sendthosemessages

whichreinforcethe beliefs andattitudes ofthetargetmarketandget favorableandpositiveresponses.


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PROCESS OF CONSUMER DECISIONS

Thedecision process is as follows:

1.NEED RECOGNITION2.SEARCH FOR INFORMATION

3.ALTERNATIVE EVALUATION

4.ACTUAL PURCHASE

5.FINAL OUTCOME


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Consumers buyingdecision process is a

process inwhicha consumerdecides

whethera product orservicewillmeetaneed orwantwellenoughto warrant

purchasingandusingit, when, whereand

howto make purchaseanddeterminessatisfaction obtained fromthe purchase.

Researches have proposeda five stage

decision process , howeverthis process is

notapplicablein case of purchase ofitems

ofeverydayuseandimpulsive buying:


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STAGE 1: Needrecognition:

The first stageinthe buying process is that of

theawareness oftheneedi.e.whena person

feels deprived of something, recognizes need of

itandwants to buyit. Themarketerneeds to identifythe stimulithat

wouldtriggertheneedarousal.

Themarketershoulddevelop suchinformation

ormessagethatmay stimulate consumerinterest.


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STAGE 2: Search forInformation:

Aftera consumer feels aneed, hewouldneedinformationwhich products orbrandswould satisfythatneed.

Needrecognitionis followed by search forinformationaboutthe product.

The sources forsuchinformationaboutproducts, theirbenefits anduses maybe

advertisingin-storedisplays, salespackages, sales persons orpersonalsources like opinion of friends, relatives,


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Colleagues and other.

Itis intheinterest ofthemarketers toidentifythe sources ofinformationthat

couldinfluencethe buying behaviorofthe

consumer.

STAGE 3: Evaluatingthealternatives:

Whilegatheringinformationabouta

particularproduct , a personmay come

across anumberof brands availableinthemarket.


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A customerwould buy onlythat brand

whichhethinks offers a bettervalue forhis

money.

Consumers evaluate brands onthe basis

of productattributes and benefits, price,

distribution, utility functionetc. Marketers needs to identifymajorbuying

styles.

e.g. Is thetargetmarketmore sensitivetoprice oris itmore quality conscious.


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STAGE 4:Makingthe finaldecision

(Purchase Decision)

Takingthe finaldecisionis notaneasy

task.

Itmust bekeptinmindthatthereare so

many factors thatgo onto makeanimpactonthe buyer.

A personwillalways tryto minimizerisk

factors by purchasing products fromapopularbrand forwhichhehas received

favorableinformation.


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Attitudes of others and situational factors

maketheirpresence felt. favorableattitude

ofthe people closeto the buyerhas amajorinfluence ondecisionmaking.

STAGE5

: Post purchase Behaviors : The mainaim ofmarketingis to satisfythe

need ofthe customerandinthis context

thelast stage of buying process assumes

greatersignificance.


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A marketing should beinterestednot only

sellingthe product butalso showthatthe

Company cares and cares enoughinprovidingabsolute satisfactionanddelight

to the customer.

Howto achievethis objective?Itis done by studyingthe post purchase

behaviorofthe customerandaccordingly

providehim promptaftersales service.


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