Download - MM 2 Session 1-3
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Marketing Management
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Marketing Management
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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Marketing Management
Why study Marketing Management?
Business is marketing Systematic effort understand, creating
products, communicating, distributing
Transferability of knowledge
Employment opportunity
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Marketing Management
Why is marketing important?
Basis for economics & Commerce
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Marketing Management
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Marketing Management
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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Marketing Management
Components / Characteristics
Marketer/Manager Customer/Society
Needs/Wants/demands
Exchange Sustainability
Perpetuity
Continuous
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Marketing Management
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