dsbm 01- introduction to marketing

01. Introduction to Marketing Management

01. Introduction to Marketing Management

THARAKA DIASDirector Essence BTCMBA(USA), BBA(USA), Dip in Mgt, ACIM(UK), FAEA(Dip in AEA-UK), FinstSMM(UK), CPM(Asia), MSLIM, PM(Sri-Lanka)

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Chapter outline The history of Marketing What is Marketing Definitions of marketing Development of marketingThe evolution of the Marketing conceptMarketing orientationRelationship MarketingInternal Marketing AOT - THARAKA DIAS3

The history of Marketing

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The history of Marketing People were self sufficient System of Barter Introduction of MoneyIntroduction of Market Introduction of the MiddlemenAOT - THARAKA DIAS5

A human need - a feeling of felt deprivation.

A human want - the form that a human need takes as shaped by culture and individual personality.

Demands - human wants that are backed by buying power.6AOT - www.tharakadias.com

6Exercise with the group in pairs think about what you offer in your organisation to clients what wants are you satisfying.

What is Marketing

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What is Marketed?GoodsServicesEvents and experiencesPersonsPlaces and propertiesOrganizationsInformation Ideas

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ExperiencesPersonsProductsAnything that can be Offered to a Market to Satisfy a Need or WantPlaces

OrganizationsIdeasActivitiesWhat Will Satisfy Consumers Needs & Wants?ServicesActivity or Benefit Offered for Sale That is EssentiallyIntangible and Doesnt Result in the Ownership of Anything9

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Definition of Marketing

Marketing is a corporate philosophy and a central business function that creates value for its customers and other stakeholders through competitive, profitable and sustainable exchange process. (SLIM-2013)"Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements at profit, in a Sociably acceptable manner while protecting industry ethics.."The official academic definition from The Chartered Institute of Marketing (CIM).

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Key functions of Marketing Identifying customer requirements Satisfying and delighting customersIdentifying favorable market opportunities Targeting the right customers Facilitating exchange relationships (products or service for payments) staying ahead in dynamic environmentUtilizing resources/ assets effectivelyDifferentiate a product or service from competitors Enhancing profitability through customer satisfaction Creating value to both the customer and organization AOT - THARAKA DIAS11

Development of Marketing

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Marketing as an exchange process Industry(a collection of sellers)Market(a collection of Buyers)Goods/servicesMoney

Communication

Information13

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Marketing as a Managerial functionIdentifying customer requirements through market research Anticipate customer requirements into the future by way of forecasting Work with other functions in the organization and develop products to satisfy customer wants Work out associated costs, understand customer perceptions and set prices, organize channels of distribution to distribute the products .Analysis, planning, implementation and control of all marketing activities AOT - THARAKA DIAS14

Marketing as a business philosophyMarketing is so basic that it cannot be considered a separate function. It is the whole business seen from the point of view of its final result, that is, from the customers point of view. Business success is not determined by the producer but by the customers.

A way of business thinking A way of working which runs through every aspect for the firms activitiesAs an intergrater for the entaire organisation AOT - THARAKA DIAS15

Evolution of Marketing Concepts

BARTERPRODUCTIONPRODUCTRELATIONSHIPMARKETINGSOCIALIZINGSELLING

Marketing Management Concepts


Marketing Orientation


Marketing OrientationCustomer values = Perceived benefits perceived sacrifice Customer satisfactionCompetitive advantaged Being betterBeing fasterBeing closer AOT - THARAKA DIAS19

Implementing the marketing conceptChange the organizational structure ( restructuring) Establishing effective marketing information system(MIS)Engage in internal marketing Effective internal communication systemTraining all staff members on customer care on an ongoing basisBench mark the organization performance and processes against the competitors and best practice AOT - THARAKA DIAS20

Benefits of implementing the marketing conceptCustomer centric Customer satisfaction and delight thus profit to the organizationEnhanced image and reputationLeads to customer loyalty thus provides competitive edgeCustomer retention is highStaff are motivated Responding quickly to changing needs of the customers Value created to both the customer and the organization Effective utilization of resources Positive word of mouth AOT - THARAKA DIAS21

Difficulties in implementing the marketing conceptLack of committed leadership and visionManagers fail to realize or understand the true concept Conflict between marketing and other functions Lack of customer knowledge Structural resistance from other managers Employee fear for changeAutocratic leadershipLack of infrastructure AOT - THARAKA DIAS22

Relationship Marketing


What is relationship Marketing Relationship marketing is the process of creating, building up and managing long term relationships with customers, distributors and suppliers. It aims to change the focus from getting customers to keeping customers AOT - THARAKA DIAS24

Types and levels of relationship CHARACTERISTICS TRANSACTION MARKETING RELATIONSHIP MARKETING Focus Single sale Customer retentionorientationProduct featuresProduct benefits Time scaleShort Long Customer serviceLittle emphasis High emphasis Customer commitment Limited High

Customer contact moderateHighQuality Concern of the PDConcern of all


The ladder of customer loyalty AOT - THARAKA DIAS26

Benefits of relationship marketing Retaining customers is cheaper than recruiting new ones.Regular customers tend to be less expensive to serve.Loyal customers are less likely to switch to competitors.Customer loyalty leads to long term stability and growth.They can be used as referral Increase customer retention enhance employee productivityAbility to develop tailor made marketing offers AOT - THARAKA DIAS27

Internal Marketing


Internal Marketing Orienting and motivating customer contact employees and supporting service people to work as a team to provide customer satisfaction Kotler

Alignment of the organizations purpose with employee behavior Employees internalizing the core values of the organizationMotivation, reframing and empowerment of employee attitude


Internal marketing tools NewslettersStaff magazines Staff meetings Team building exercises Award for employees Company events AOT - THARAKA DIAS30

Value creation

Accurately knowing what customers valueProducing to incorporate such valuesCommunicate the value

Inform, convince, remind, motivate Servicing the customers Physical delivery Deliver the value

SUMARY OF MARKETINGAOT - www.tharakadias.com31

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