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Marketing Management

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Marketing an Art or Science?

Science Psychology, Sociology, Finance,Economics..

Art Communication, Influence,Persuasion.

Science at lower levels & Art at higher

levels Steve Jobs customer doesnt know what

they want

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Why study Marketing Management?

Business is marketing Systematic effort understand, creating

products, communicating, distributing

Transferability of knowledge

Employment opportunity

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Why is marketing important?

Basis for economics & Commerce

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Definitions

MARKETING IS A SOCIAL AND MANAGERIAL

PROCESS.BY WHICH INDIVIDUALS AND GROUPSOBTAIN WHAT THEY NEED & WANT..

THROUGH CREATING & EXCHANGING PRODUCTS & VALUE

WITH OTHERS. (in a mutually sustainable & perpetual manner)

Marketing is the activity, set of institutions, and processesfor creating, communicating, delivering, and exchangingofferings that have value for customers, clients, partners,and society at large.

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Components / Characteristics

Marketer/Manager Customer/Society

Needs/Wants/demands

Exchange Sustainability

Perpetuity

Continuous

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Marketing Department

Marketing Research understand consumerneeds, segmentation & targeting

Product & Brand Management product

development, differentiation, positioning &branding, pricing

Marketing Communication promotion mix& execution

Sales and Distribution Distribution & salespromotion

Marketing administration

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MARKETING PROCESSS

CREATEVALUEFORCUSTOMERS&BUILDCUSTOMERRELATIONSHIPUnderstandthe

marketplaceand customerneeds andwants.

Design acustomer

drivenMarketingstrategy

Construct anintegrated

marketingprogram thatdeliverssuperior value

Buildprofitable

relationshipand createcustomerdelight

CAPTUREVALUEFROMCUSTOMERSINRETURN

Capture value fromcustomers to create profitsand customer equity.

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1

1D

2

1A 1B

1C

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MARKETING PROCESSSM R

Customer Driving Marketing knowingcustomer needs before they know them

our goal is to lead customers to where they

want to go, before they know where theywant to go 3M

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MARKETING PROCESSSM R

AreasofInquiry AreasofInformation AreasofApplicationWhytheybuyfootwear/forwhatbenefits? Useoffootwearlikeprotection,

stylestatements,sportsbenefits,medicalbenefits..

Segmentation,productdesign,promotion

Whichbrandaretheycurrentlybuyingandwhy?

CompetitionandtheircharacterslikeVFM,personality,aspiration Differentiationandpositioning,promotion

Wheredotheybuy? Typesofstore,outletetc DistributiondecisionWhendotheybuy? Occasionofpurchase Promotion,distributiondecisionHowdotheypay&howmuch? Cash,credits,typeofpayment,

order.

Pricing,AddonserviceslikePayment,orderingoptions

Whobuys? Customer/consumer PromotiondecisionsWhoadvicesorinfluences? Decisionmakingunit PromotionHowmanydotheybuy? Potentialconsumptions PricingandpromotionsWhattypesoffootwear? Tastes,preferences,cultural

influencesetcProductdesign,segmentation&promotion

whattheydontget currently? Gapsincurrentneedfulfillment Product,promotion

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MARKETING PROCESSSSegmentation

Geographic Demographic

Behavioral (occasion, rate of use, benefitsought, user status)

Psychographic (Vals lifestyle)

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MARKETING PROCESSSTargeting

Mass marketing Segmented marketing

Niche (concentrated)

Micro (individual)

Based on business strength, market size,market proximity, growth, profitability,competition

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MARKETING PROCESSSDifferentiation & Positioning

Eg: DisprinEg: Aspergatas, Hawaaianas

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MARKETING PROCESSSMarketing Mix

Product core/ actual/ augmented Price philosophies & strategies

Promotion IMC

Place Channels, Reach & management

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MARKETING PROCESSS IMC using of promotional tools to deliver

consistent, clear & compelling brandmessage Advertising

SP

PS / DS

DM

PR

Events

Digital/ Interactive/ Viral

WoM / Buzz

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Integrated marketing communication.

Ads: cosmopolitan, filmfare,national

channels, English channels

SP: in mall displays, premium fairs

premium displays

Events: fashion shows, ladies club

meeting

PR: environmental protection,

womens right

Interactive: web site

WoM; endorsements by equal status

respected advocates

PS; In mall kiosks, beauty clinics

DM: usually not used

Ads: regional channels, multi media,

multilingual

SP: samplings, discounts, gifts and

trade promotion to push sell product

Events: local mass events like melas

PR: rural and other common

community related causes

Interactive: not used

WoM; celebrity endorsements

PS; not done due to large customer

base

DM: usually not used

OLEY SANTOOR

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MARKETING PROCESSS Distribution: movement of goods from the

manufacturer / seller towards thecustomers, with the intention of selling

Distribution Channel : set of

intermediaries through which goods passfrom the seller to the buyer

Channel levels

Multi channels distribution.

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MARKETING PROCESSSCustomer Relation

Based on customer perceived value &customer satisfaction

Involves communication/ collaboration

Emotional connect HUL

P/S Customisation Hotels, KFC

Add on services Thai air, Mc Kessons

Reward system Air line, Shoppers stop

Community creation HOG, Sunsilk.com

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MARKETING PROCESSSCapturing Value

Share of customer/ purse CLT

Customer equity

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Retailing

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Retailing RETAILING: All activities involved in

selling G/S to final consumers for theirpersonal business use.

RETAILER: A business whose sales comes

mainly from Retailing.

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RetailingImportance:

final touch pointShopper Marketing,

Last Decision Making Point

4.5 trillion $

largest employers

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RetailingRETAILER CLASSIFICATION:

Product lines Relative prices

Amount of service

Organisation

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Retailing - Product linesLength & Breadth of product line

Specialty stores: Bata Department Stores: large with each

product line being a (Big Bazar) separate

department with separate merchandiser. Super Markets: low cost/low margin, high

volume, self-service, large store carryinggrocery & household goods (Food Bazar)

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Retailing - Product lines Convenience store: neighborhood stores

with popular goods Eg: kirana, Pan shops,Mom & Pop shops.

Super Store: very large super markets

Category Killers: super stores for onecategory Eg: E-zone

Service Retailers

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Retailing - Relative prices Discount stores: sells std merchandise at

lower prices & higher volumes Wal-Mart,big bazaar

Off price retailers: sells at very low pricesless than retail prices Independent: run by corporations/independent

units Eg: Park avenue

Factory outlet: seen in factory outlet

malls/value retrial centers Ware house Clubs: for members, sells a limited

line Eg: Cotsco. Sams Club, Metro-Bangalore

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Retailing - Amount of service Self-Service: Wal-Mart, Big Bazar

Limited Service: JC penny & sears,Shoppers Stop

Full Service: Harrods, Tiffanys, Croma

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Retailing - Organisation Chain Stores: 2 or more outlets commonly

controlled. Eg: Bata (also seen aswholesale sponsored/Retail sponsoredchain)

Franchise: A contractual organisationbetween Franchiser & Franchisee tooperate one or more units of a franchiseesystem Eg: McD, NIIT, Aptech

Merchandise Conglomerates: severalforms under one roof- Walmart/ Future

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Retailing

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Retailing - Positioning Walmart always low prices

Harrods everything for everyoneanywhere, royal warrant

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Retailing - Decisions Product

Line common or different

Target product assortment. Lane Bryant/ + size

Special promotion

Walmart everyday low prices

Bloomingdales country shows Cotsco surprise assortment

Service

Consultations Trainings

installation

Ambience

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Retailing - Decisions Pricing

Volume vs margin (Bijan/ T J Maxx) Promotions

Place decisions Accessibility Parking

Proximity

Traffic

Rentals

Safety and security

CBDs/ Regional- Community- Neighborhood shopping centers

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Retailing - Decisions

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Retailing new trends Shortening of retail life cycle Price Club by Sol

Price, 1976 San Diego

New retail formats Non store retailing mail order/ TV/ Phone/

Online Retail convergence (merging of consumers,

products, prices & consumers) Rise of megatailers Superior IS, Bargain power

& Assortment

Technology in retail Global expansion of retailers Retail space as hangouts/ communities

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Retailing new trends

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Retailing - India 14-15% of GDP-450 bio $- (261 bio)

Top 5 in world

4% organised (2010)

Employs- 40 mio or 3.3%^ of population alongwith logistics

Las- 14 mio outlets-11 shops for 1000 peopleonly less than 4% has more than 500sq ft

1994- FDI in cash & carry was allowed 2009- FDI in single brand

2012- FDI in multi brand retail (51%)

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Retailing - IndiaFormats:

Mom & Pop shops

Departmental Stores

Convenience Stores

Shopping Malls e-Tailers

Discount stores

Vending AVMs Category Killers

Specialty Stores

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Wholesaling

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WholesalingIncludes all activities primarily involved in

selling G/S to those buying for resale orbusiness use

Wholesaler is one whose major revenue is

from wholesalingThey might also do some kind of retailing

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Wholesaling

Retailing Wholesaling

Sells for final consumption Sells for retailing or businessconsumption

Smaller quantity Larger quantity

Individual/ family buyer Business buyer

Do not wholesale May retail

Geographically spread Geographically concentrated

Large numbers Small numbers

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Wholesaling

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WholesalingTypes

Merchant wholesalers Full service Industrial goods

Limited service - FMCG

Agents & brokers Do not take title of the goods

Specialises by product line or customer types

Brokers bring together buyer & seller Agent represents the seller

Manufacturers sales & branch office

mm 2 session 1-3

Documents