52 52 marketing management
TRANSCRIPT
-
8/3/2019 52 52 Marketing Management
1/42
-
8/3/2019 52 52 Marketing Management
2/42
Definitions of marketingMainly focus on what it means to the orgn1. The chartered Institute of marketing
define marketing as management processresponsible for identifying, anticipating andsatisfying customer requirements profitably
2. P.Tailor defines marketing is not aboutproviding products or services it is essentialyabout providing changing benefits to thechanging needs and demans of the customer
3. Philip Kotler satisfying needs and wantsthrough an exchange process
Therefore marketing consists of strategies and tactis usedto identify,create and maintain satisfying relationship with the customers that result in value.
-
8/3/2019 52 52 Marketing Management
3/42
In an era of seamless market ,the customer today has widerchoice. they are not stick on to only locally available brands .
Customers are given different modes to buy goods (teleshopping, internet, advt in the news paper.
Marketers are using every weapon to gain and retain thecustomers and their brand name in the market.e.g KBS in star plus. The news programme moved to starworld. influenced the Indian families to watch the 1 hourprogramme.rival to this Zee TV started programme cash
prize10 times more than KBS but failed.
A market is defined as any place where the seekers of aparticular good or service can meet with the buyer, wherethere is a potential for a transaction to take place.
-
8/3/2019 52 52 Marketing Management
4/42
Marketing as a concept concept is a customer orientation , customer is the king of
market ( said by mahatma Gandhi).The organization have to bring the goods to the market tosatify their needs without any obligation.
The marketing concept involves :(and the best marketing concept1. customer orientation2. competition orientation3. the ability to respond to the environmentalchanges( chnages in consumer needs, environment, govt policy,technology.E.g Sony and Microsoft investing in futuristic technology
-
8/3/2019 52 52 Marketing Management
5/42
Marketing (company) orientation towards the marketit involves six dimensional approach
1. consumer orientation
2. an integrated approach to exploiting market : integrate
all marketing mix, e.g is maggi noodles found success,whereas the Lipton with the same product failed.Marketing orientation requires preoccupation with thequality. e.g P&G,Godrej.J&J,Asian paints,Crompton andgrieves have passion for premium quality.
3.futerestic approach : money spent is not an expenditurebut investment for long term.
-
8/3/2019 52 52 Marketing Management
6/42
4. Highly developed marketing systems : they are marketinformation system like customer feedback, complaintmanagements, customer relationship management (CRM).Helps enhancing their effectiveness.
5. Marketing culture in the organization : the strucure of orgn from top to bottom aimed at market orientation. E.ghospitality industries Windsor and Manner promised topay penalty
Incase customer not satisfied.
6. Speed in responding customers problems : fast relief and toll free communication. Eg LG, ONIDA,ICICI,JDFC
etc.
-
8/3/2019 52 52 Marketing Management
7/42
Marketing and selling orientationSelling is sales promotion with the intention toclose the sales to increase the profit of the orgn
Marketing is integration of all marketing planconcentrating on customer and selling to maximize
the profit.e.g . of Ambassadors and premier Padmini withMaruti Suzuki in 1984 succeeded in customersatisfaction by increasing the efficiency of thecustomer.Successful marketers think about tomorrow and not just today.
-
8/3/2019 52 52 Marketing Management
8/42
Difference between marketing and selling
Marketing selling focuses on customers needs sellers needsBegins before production after productionContinues after sale comes to an end with
saleBroader meaning narrow meaningProfit through customer satisfaction through salesLet the seller be aware buyer awareLong term prospective short term
prospectiveCustomer first then product product then
customer
-
8/3/2019 52 52 Marketing Management
9/42
The essence of modern marketing1. Define the market area: find the right destination of
the business and plan the marketing strategies.three types of major markets are:
Consumer market, the industrial market, the service
market and the fast growing market( both domesticand industries products)
2. Research consumer needs and wants: differentiatebetween the consumer needs and wants,
Eg. A child want a coke and need milk a child want food and need food.
Which to produce more and which in limited quantity.
-
8/3/2019 52 52 Marketing Management
10/42
3. Developing and redeveloping the product or service:refine and innovate the products where there is no end
for choice or supply for the demand by the consumer.
4. Selecting Training, Motivating and controlling
manpower: best person for the right job with theabove qualities to promote the product andorganization. e.g service, business, education,hospitality etc.
5. Developing sales approach and advertising support:these are wheels of marketing. The marketing issuccessful only when these wheels are moved or
taken into action.
-
8/3/2019 52 52 Marketing Management
11/42
Marketing management ; is a importrant functional area of business management where planning, organizing,
directing, coordinating, motivating and controlling themarketing activities under customer orientedmarketing activities
-
8/3/2019 52 52 Marketing Management
12/42
Customer satisfaction, value and retention.Creating value for customers is critical to every
companys success especially during times of austerity. In the old economy, the focus of most companies was internal with respect to their customers meaning they would view customers
based on what they had to sell.In the new economy, the focus of companies is
more external and is based on identifying customers needs and what they will buy.
Focusing on what customers need is key to growing top-line revenues, reducing operating expenses and growing the bottom
line.
-
8/3/2019 52 52 Marketing Management
13/42
Customers buy value, therefore it follows that improving the customer experience
will increase customer loyalty or retention.The Value of Retaining a Customer
In Frederick Reichhelds book The Loyalty Effect: The Hidden Force Behind Growth,Profits and Lasting Value, his analysis showed
that the cost of acquiring new customers was five times the cost of servicing existing ones .
-
8/3/2019 52 52 Marketing Management
14/42
Customers buy value therefore it follows thatimproving the customer experience
will increase customer loyalty or retention. Customer satisfaction and customer value are
distinctly different (although related)
Measures of satisfaction indicate howcustomers feel about products and
services, while measures of customer value are indicates of how customers will act.
-
8/3/2019 52 52 Marketing Management
15/42
Customers buy value therefore it follows thatimproving the customer experience
will increase customer loyalty or retention. Customer satisfaction and customer value are
distinctly different (although related)
Measures of satisfaction indicate howcustomers feel about products and
services, while measures of customer value are indicates of how customers will act.
-
8/3/2019 52 52 Marketing Management
16/42
Customers are value maximizers, within the boundsof search, cost and limited knoweldge, mobilityand income. They form an expectation of valueand act on it. whether or not the offer lives upto the value effects both satisfaction andrepurchase probability.
Customer perceived value; is the differencebetween the respective customers evaluation of all the benefits and all the costs of an offering
and the perceived alternatives.Total customer value is the percieved monetary
value of the bundle of economic, social,functional and psychological benefits customers
-
8/3/2019 52 52 Marketing Management
17/42
Expect from a given market offer.Total customer cost is the bundle of costs
customer expect to incur in evaluating,obtaining, using and disposing of the givenmarket offering.
Example: caterpillar tractor vs Komatsu A buyer would like to buy the tractor for
rewsedential construction. Wants buy eithercaterpillar or komatsu.
He looks out for the reliability, durability,performance and its resale value
How can the slaesperson convince this buyer to
purchase caterpillar
-
8/3/2019 52 52 Marketing Management
18/42
Caterpillar can succeed in selling to this buyer .Caterpillar can improve its offer in three ways.
1. Increase in total customer value by improving product,services, personnel and image benefit.2. It can reduce buyers non monetary cost by reducing the
time, energy and psychic cost.3. it can reduce the products monitory cost. suppose the buyer demand for the tractor is 2lakh
The cost of producing the tractor is 1,50,000.Caterpillars offer generates 50000 over the companys cost. Caterpillar need to charge a price between 150000-2lakh.If it charges 150000 it is a loss. Above 2lakh out of market
price.If it charges 190000. 10000 is the customer perceived value
-
8/3/2019 52 52 Marketing Management
19/42
40000 profit to the company.
Retaining the customer from komatsu;The salespersons can give( convince) the assuredguarantee warrantee and brand image, serviceof caterpillar and the komatsu. After the sale .
comparison of price and total customer value andcost from both the companies.
Eg of Saturn car division of general Motors.Retaining its 40000 customers throughempolyee satisfaction by paying high salary andits customer loyalty and retention of 60%customers compared to others 40% in themarket.
-
8/3/2019 52 52 Marketing Management
20/42
Making CVM Work
Data - use whats available; dont overdo it Simple segmentationKnow valuable customers
Leverage value knowledgeMatch channels to segment preferencesDo sale reps follow value targeting?
Does service maintain customerrelationships
-
8/3/2019 52 52 Marketing Management
21/42
Marketing Information SystemThe need for real time marketing informationgreater than the past Is necessary.
The shifts are dramatic from local to national buyer behaviour, price, preferences of goods etc.To predict buyer behaviour marketer should turnto marketing research.Firms should organize and distribute acontinuous flow of information system to itsmarketing managers and to the outsiders.MIS consists of people, equipment and
procedures to gather, sort, analyze, evaluate and distribute needed, timely and accurate information to marketing decision makers .
-
8/3/2019 52 52 Marketing Management
22/42
Marketing Information System
For marketers research is used not only for learningbut also for right decisions - such as introductionof new products replacing the old, entering newmarket for dift customers.
Characteristics of MIS
1. it is a continuous process2. It is a preventive and curative process in the
marketing.3. Allows best integration between various mangers4. Provides updated and accurate infn to the
management.
-
8/3/2019 52 52 Marketing Management
23/42
Components of marketing information system1. Internal marketing information:The datas available within the orgn of various
depts like price product, inventorymachineries, labors etc. with the previousdata and time talent and good decisions.Ready to meet customer demands in time
Coordination of various resources at the end of The day.
-
8/3/2019 52 52 Marketing Management
24/42
T he order to payment cycle is the core source forMIS which passes sales infn from dealers-customers- sales representatives- firm-outsidersfor the requirement of goods and changes in thegoods acdg to the customers.
Eg. Reliance fresh, big bazar, more etc start theirbusiness early morning with supply of goods.Database system necessary to combine various data
and to be ready for the next sales customersproblems, interests, preferred goods and givethem surprise offer through mail.
Data helps the decision makers to increase the sales
-
8/3/2019 52 52 Marketing Management
25/42
2. Marketing Intelligence System:It is a external information of marketing
environment provided to mktg executives orcollected about developments in the market Eg.Census data, market news, trade papersmagazines etc.
company can take several steps to improve itsquality;Train and motivate the sales force to gather infn
from external source and to send it to the rightperson.Motivate the distributors to pass infn to and fromthe customers.
-
8/3/2019 52 52 Marketing Management
26/42
Marketing Information System
-
8/3/2019 52 52 Marketing Management
27/42
Marketing Information SystemElements /features of marketing research: 1. Intensive study or systematic study 2. Scientific approach 3. Decision tool for management
1. Intensive study: there is a definite purpose the process are:Defining the problem
Determining the sources of information Collection of information Interpretation of data
Preperation of research report
Marketing Information System
-
8/3/2019 52 52 Marketing Management
28/42
Marketing Information System2. Scintific approach: collect relevant, correct and
quality information which is lawful, clear reliable
and communicable.State the objective of study, investigating problems,findings and assumptions and conclusions.
3. Decision tool to management: out of the problem.Data, assumptions and findings the managementshould come to the quality and right decision
making conclusion and find best alternative.the objective of marketing research:
1. To know the buyer2.
To measure the result of promotional effort
Marketing Information System
-
8/3/2019 52 52 Marketing Management
29/42
Marketing Information System3. Know consumers response4. Know market cost
5. Master the external forces6. Design and implement marketing control
Scope of marketing research1.Consumer research: deals with consumer and their
problems and the solutions.2. Product research: evaluating the product ,
modification, diversification , product innovationand performance.
3. Market research: study the structure of market-
market size, consumer capacity, government
Marketing Information System
-
8/3/2019 52 52 Marketing Management
30/42
Marketing Information System4. Sales research: methods of sales, territories and
employee compensation.
5. Pricing research: study different market,customer, cost of mfg etc.6. Distribution research: requirement of channels of
distributions.7. Motivational research: identification of consumers
motives, attitudes, emotions etc ( LIC, SBI,Kellogs, Bajaj Alliance etc )
8. Advertising research: effective and suitable9. Policy research: blend the policies of various
departments for the market success.
Market segmentation
-
8/3/2019 52 52 Marketing Management
31/42
Market segmentation
Understand the msrket segmentationKnow the meaning of target marketing
Understand how the companies position theirproduct in the marketUnderstand the meaning of productdifferentiation
Measning of market segmentation:It is the identification of portions of the market that
are different from one another. ( to satisfy theneeds of its potential customers.
Levels of segmentation: 1. segmenting the marketMass marketing where all the products are placed
for all kinds of buyers
Differentiate between sector and segment
Market segmentation
-
8/3/2019 52 52 Marketing Management
32/42
Market segmentation
the marketer does not create the segments , but toidentify the segments which offers benefits over
segments.
The definitions market segmentations acdg to Philip
kotler It is sub dividing of market into homogeneous subsections of customers. Where any sections may be conceivably be selected as a market target to be reached with a distinct marketing mix.
Market segmentation
-
8/3/2019 52 52 Marketing Management
33/42
Market segmentation
Patterns of market segmentations: Homogeneous preference where the consumers
almost has the same preferences (Pillsbury atta could gain more profit by
segmentation research)
Diffused preferences where the consumerspreferences are scattered and vary throughout.Clustered preferences where distinct preferences
exist as a sector in the segment.Egs: Barbie could reach the market segments by
customizing the product according to customerneeds in 1998( names,design, hair color)
Market segmentation
-
8/3/2019 52 52 Marketing Management
34/42
Market segmentationLevis jeans for women made customized jeans to
fit women of different waists 1994.
In eye glasses Paris Miki a Japanese company firstused various designs in eye glasses.2. Niche marketing : niche is more narowly defined
group seeking a distinctive group of benefits.Marketer identifies niches dividing a segment into
sub segments.Eg; segment of people who only travel through air
again subdivided into teenagers who only travel in executive class.
The characteristics are- customers have distinct setof needs who will pay premium to the firm thatbest satisfies their needs
-
8/3/2019 52 52 Marketing Management
35/42
3. Local marketing: local marketing are tailor tothe needs and wants of the local customers.
The companies favourising the local marketsdeny the national advertisements which failsto address the local needs.
4. Individual customer market: the level of segmentation leads to segments of one customized market or one to one market as
the individual preference changes from.Companies are now going for masscustomization of products on a mass basis.
Mass customization comes of age.
-
8/3/2019 52 52 Marketing Management
36/42
Choice board- is a online customization of products of customer choice. (helps also inInternational business and MNC )It helps and facilitate customers to go forfurther improvement and buy the productHelps the marketer to retain the customersProvide real time market research.Reduce the cost of production and unwantedgoods.They have more market share and faithfulcustomers.
Market segmentation
-
8/3/2019 52 52 Marketing Management
37/42
Market segmentation
Effective market segmentation requires: Characteristics within each segment should behomogeneousMeasurable: the size, purchasing power
Accessible effectively reachable and targetable
differentiable- where the customers can responddifferently.Segment should be mutually exclusive
Must be measurable and identifiable.
Market segmentation
-
8/3/2019 52 52 Marketing Management
38/42
Market segmentation
Basis for segmentation in consumermarket:
1. Geographic segmentation: nations, state,regions, cities- product varies acdg tothese segments.
2. Demographic segmentation: divided intogroups such as age, family, family size,family life cycle, gender, income,education, religion etc.- this is required toestimate the size of the market and themedia that should be used.
-
8/3/2019 52 52 Marketing Management
39/42
Eg: ivillage.com in Europe an online womennetwork reaped the benefits of gender
segmentation after initially seeking a broadermarket. Began to focus on the pregnantwomen (food such as health drink, soups) Theyexchanged the advice and suggestions.
Attracted the largest audience.It evolved into the leading womens online site in
Europe.
BOA in US started different types of investmentfor different age and gender and classesproviding them benefits. ICICI prudential,HDFC
Market segmentation
-
8/3/2019 52 52 Marketing Management
40/42
Market segmentation
3. Psychographic segmentation: varies on thebasis of lifestyles- it is a behavioralconcept ( may or may not work)
personality or values- personality of individualconnected with the brand or product.
4. Behavioral segmentation: on the basis of knowledge, attitude, use, responsetowards the product, status and loyaltyetc.
The marketer can give the right knowledgeabout the product to these kinds of
customers to promote the product.
Market segmentation
-
8/3/2019 52 52 Marketing Management
41/42
Market segmentation
Basis for segmentation in industrial markets Industrial customers fewer in number and purchase
larger quantities, decisions are taken by morepersons. Have more knowledge about theproduct.
the characteristics for segmentation are:1. Location: distance from the vendor to theindustries depends on the availibility and legalrestrictions.
2.Company type: business customers can beclassified according toCompany size
industry
Market segmentation
-
8/3/2019 52 52 Marketing Management
42/42
Market segmentation
Decision making unitPurchase criteria
3. Behavioral characteristics:Usage rateBuying status: potentiality, regularity, payment
in time.Purchase procedure: negotiation, packingconditions, standards, acceptability and otherconditions - offer, discounts, offers etc.