new marketing management.ppt

7/27/2019 New Marketing Management.ppt

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P R O F . N I L E S H K U L K A R N I

Marketing Management


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Objective of the Course

To equip the participants with marketingterminologies and concepts that helps themunderstand the various marketing tools, strategies

and models through cases and class interaction. Toprovide insights into the fast changing marketingenvironment, and the challenges of marketing in thenew economy.

Nilesh Kulkarni Marketing Concepts

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Ground Rules

Regular Attendance, Punctuality, Mobile Switchedoff

3 hour sessions

Session notes to be handed over to CR, to bephotocopied and circulated to class


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Syllabus

Introduction to Marketing, Evolution of Marketing,Marketing Concepts and Customer orientation.

Marketing Environment and Evolution of MarketOpportunities.

Market Research & Marketing Information Systems. Demand Forecasting & Market Potential Analysis Consumer Buying Process & Organizational buying

behavior. Pillars of Marketing- Market Segmentation, Market

targeting, Positioning and Differentiation. Marketing Mix Product decisions-Product Life Cycle-

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Syllabus

New Product Development Process

Distribution Decisions- Logistics & ChannelDecisions

Promotion Decisions- Integrated MarketingCommunications Concept

Personal Selling & Sales Management

Pricing Decisions

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Introduction to Marketing

The future isnt ahead of us.

It has already happened. Unfortunately, it

is unequally distributed amongcompanies, industries and nations

Philip Kotler

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Objectives of Chapter 1

Understand the new economy.

Learn the tasks of marketing.

Become familiar with the major concepts and tools of

marketing. Understand the orientations exhibited by companies.

Learn how companies and marketers are respondingto new challenges.

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The New Economy

Firmbenefits from the digital revolution include:

New promotional medium.

Access to richer research data.

Enhanced employee and customer communication.

Ability to customize promotions.

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Marketing Tasks

Marketing practices may pass through threestages: Entrepreneurial marketing

Formulated marketing

Intrepreneurial marketing

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What Can Be Marketed?

Goods

ServicesExperiences

Events

Persons

Places

PropertiesOrganizations

Information

Ideas

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Goods Motorcycles, Ice Creams

Services Beautician, Lawyer, Education

Experiences Amusement parks, trekking expedition

Events A cricket match

Persons All celebrities need marketing

Places Marketing Kerala as a holidaydestination, marketing Tamil Nadu asan ideal location to set up a newindustry

Properties Moth moveable ( mutual funds,equities, bonds) and immovable ( realestate)

Organizations UNICEF, CRY


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Information News Magazine, Website

Ideas Political Parties Need to market theirideologies


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Marketing Defined

Kotlers social definition:Marketing is a societal process by which individuals and groups

obtain what they need and want through creating, offering,and freely exchanging products and services of value with

others.

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Marketing Defined

The AMA managerial definition:Marketing is the process of planning and executing the

conception, pricing, promotion, and distribution of ideas,goods, and services to create exchanges that satisfy individualand organizational objectives.

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Marketing =Demand Management

Negative demand

No demand

Latent demand Declining demand

Irregular demand

Full demand

Overfull Demand

Unwholesome demand

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4 Types of Markets

Consumer Markets

Business Markets

Global Markets

Nonprofit and Governmental Markets

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The Marketing Process

Capture Value

fromcustomers tocreate profitsand customer

equity

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The Marketing Process

The above figure presents a simple five step model ofthe marketing process. In the first four steps,

companies work to understand consumers, createcustomer value, and build strong customerrelationships. In the final step, companies reap therewards of creating superior customer value. By

creating value for consumers, they in turn capturevalue from customers in form of sales, profits, andlong term customer equity.

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Step 1: Understanding the Marketplace and Customer Needs( Slides 12-30)

Marketing is all about creating value for customers. So, as the first stepin the marketing process, the company must fully understandconsumers and the marketplace in which it operates.

We now examine core customer and marketplace concepts (1)needs,wants, and demands: (2) market offerings ( products, services etc) (3)

Value and Satisfaction; (4) exchanges and relationships; and (5)markets.

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Core Marketing Concepts

Needs describe basic human requirements. Peopleneed food, air, water, clothing and shelter to survive.People also have strong needs for recreation,

education, and entertainment. Needs become wants when they are directed to

specific objects that might satisfy the need. AnAmerican needs food but wants a hamburger, Frenchfries, and a soft drink.

Demands are wants for specific products backed by anability to pay. Many people want a Mercedes; only afew are able and willing to buy one.

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AProductis any offering that can satisfy aneed or want, while a brandis a specific

offering from a known source.When offerings deliver value and satisfaction

to the buyer, they are successful.

Value = Benefits/Costs

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VALUE AND SATISFACTION

The offering will be successful if it delivers value and satisfaction to thetarget buyer. The buyer chooses between different offerings on the basisof which is perceived to deliver the most value. Value can be seen asprimarily a combination of quality, service and price (QSP), called thecustomer value triad.

More specifically we can define value as ratio between what thecustomer gets and what he gives. The customer gets benefits andassumes costs. The benefits include functional benefits and emotionalbenefits. The cost includes monetary costs, time costs, energy costs, andpsychic costs. Thus value is given by:

Value = Benefits = Functional benefits+ Emotional benefits

Costs Monetary costs+ time costs+ psychic costs

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Exchange involves obtaining a desired product from someone by

offering something in return. Exchange is only one of four waysin which a person can obtain a product. One can self produce theproduct or service, as when one hunts, fishes, or gathers fruit. Onecan use force to get a product, as in holdup or burglary. One can

beg, as happens when a homeless person asks for food. Or canoffer a product, a service, or money in exchange for something heor she desires.

For exchange potential to exist, five conditions must be satisfied1. There are at least 2 parties.2. Each party has something that might be of value to other

party.3. Each party is capable of communication and delivery.4. Each party is free to accept or reject the exchange offer,5. Each party believes it is appropriate or desirable to deal with

other party.

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Two parties are engaged in exchange if they arenegotiating- trying to arrive at mutually agreeableterms. When an agreement is reached, we say that

a transaction takes place. A transaction is a tradeof values between two or more parties: A gives X toB and receives Y in return. Smith sells Jones atelevision set and Jones pays $ 400 to Smith.

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Relationship marketing aims to buildlong-term mutually satisfying relationswith key parties, which ultimatelyresults in marketing networkbetweenthe company and its supporting

stakeholders.

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Market

Traditionally, a market was a physical place wherebuyers and sellers gathered to buy and sell goods.

Economists now describe a market as collection ofbuyers and sellers who transact over a particularproduct or product class; but marketers view thesellers as constituting the industry and buyers as

constituting the market.

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Shopping can take place in a:Marketplace (physical entity, Lowes)

Marketspace (virtual entity, Amazon)

Metamarkets refer to a cluster ofcomplementary products and services thatare closely related in the minds of consumers

but are spread across a diverse set ofindustries.

Marketers seek responses fromprospects.

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Simple Marketing System28



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A Modern Marketing System29

http://www.google.co.in/imgres?q=the+modern+marketing+system&hl=en&sa=G&biw=1348&bih=510&gbv=2&tbm=isch&tbnid=Myj1khJFOkbvuM:&imgrefurl=http://gmx.xmu.edu.cn/ews/business/pmarketing/chapter01.htm&docid=X22ipKlCYrU3PM&w=350&h=122&ei=aid3TvLyF4XsrQfv0OW_Aw&zoom=1


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Marketing Channels

Communicationchannels

Deliver messages to andreceive messages fromtarget buyers.

Includes traditionalmedia, non-verbalcommunication, andstore atmospherics.

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Marketing Channels

Distribution channels

Display or deliverthe physical

products or servicesto the buyer / user.

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Marketing Channels

Service channels

Carry out transactionswith potential buyers byfacilitating the transaction.

It includes warehouses,transportation companies,banks, and insurancecompanies that facilitate

transactions.

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Asupply chain stretches from rawmaterials to components to final

products that are carried to final buyers. Each company captures only a certain

percentage of the total value generated

by the supply chain.

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Step 2: Designing A Customer Driven Market Strategy

Once it is full understands consumers and marketplace,marketing management can design a customer drivenmarketing strategy. We define marketing management asthe art and science of choosing target markets and building

profitable relationships with them. The marketingmanagers aim is to find, attract, keep and grow targetcustomers by creating, delivering, and communicatingsuperior customer value.

To create a winning marketing strategy, the marketingmanager must answer two important questions : whatcustomers will we serve ( target market) ?and How can weserve these customers best ( whats our value proposition).

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Step 2: Designing A Customer Driven Market Strategy

A. Selecting Customers to Serve The company must first decidewho it will serve. It does this by

dividing the market in to segments of customers (marketsegmentation) and selecting which segments it will go after (targetmarketing).

B. Choosing A Value Proposition The company must decide how it will serve targeted customers- how

it will differentiate and position it self in the market place. Acompanys value proposition is the set of benefits or value it promises

to deliver to consumers to satisfy their needs. BMW promises the ultimate driving machine and NOKIA is

Connecting people- anyone anywhere

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Company Orientations

The orientation or philosophy of the firmtypically guides marketing efforts. Severalcompeting orientations exist:Production conceptProduct conceptSelling concept

Marketing conceptSocietal marketing concept

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Company Orientations37



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Step 3: Preparing an Integrated Marketing Plan and program

The companys marketing strategy outlines whichcustomers the company will serve and how it willcreate value for these customers. Next, the marketerdevelops an integrated marketing program that willactually deliver the intended value to targetcustomers. The marketing program builds customersrelationships by transforming the marketing strategyin to action. It consists of the firms marketing mix,the set of marketing tools the firms uses toimplements its marketing strategy.

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Step 3: Preparing an Integrated Marketing Plan and program

The marketing program is developed toachieve the companys objectives.Marketing mix decisions include:

The 4 PsProduct: provides customer solution.Price:represents the customers cost.

Place: customer convenience is key.Promotion: communicates with customer.

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Core Marketing Concepts40



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4 Ps- Product

- Price

- Place

- Promotion

4 Cs

- Customer solution

- Cost

- Convenience

- Communication

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The Step 4: Integrated Marketing Plan42

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