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Marketing Management

Prof. Madhura Tilak


Prof.Madhura Tilak

Introduction
Marketing is everywhere- Formally or informally people engage in vast no. of activities that we call marketing. Today good marketing has become the vital ingredient of business success. Also marketing do affects our day to day lives. It is involved in everything we do-from clothes we wear to websites we click to the ads we see.
Prof.Madhura Tilak

Importance
Financial Success depends on the marketing ability. All business functions be it finance, accounting, operations will not really matter if there is not sufficient demand for products and services to make co. profitable. Now many co have put marketing on equal footing with other C level executives and created CMO .Also CEO , CFO
Prof.Madhura Tilak

Marketing Managers must decide what design to decide, what prices to offer how much to spend on advertising, where to sell products,, what features to design etc. Also exact wording, color for new packaging.

Prof.Madhura Tilak

Definition
American Marketing Association: Marketing is an organizational function and a set of processes for creating , communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organizations and its stakeholders.

Prof.Madhura Tilak

2.Defining Marketing
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. - Philip Kotler

Prof.Madhura Tilak

Marketing
Is the process of planning and executing the conception, pricing, promotion,and distribution of ideas, goods, s ervices to create exchanges that satisfy individual and organizational goals. Marketing is about identifying and meeting human and social needs or mmeting needs profitably. Example: eBay recognised that people were unable to locate item they desired most,it created online auction clearing house.
Prof.Madhura Tilak

Managers think of marketing as the art of selling products. Peter Drucker-a leading mgt.theorist says: Aim of marketing is to make selling superfluous. The aim of marketing is to know customer so well that the product or service fits him and sells itself. Ideally, marketing should result ina customer who is ready to buy. All that is needed to make product or service available.
Prof.Madhura Tilak

Breakthrough Marketing: Example: Tata Ace describes how Tata Motors introduced based on assessment of consumers needs-introduced a sub-one ton truck to cater to the last mile distribution requirements of traders and farmers in India and other neighbouring countries. Example: Tata nano.
Prof.Madhura Tilak

The Scope of Marketing


Goods Services Experience Events Persons Places Properties Organizations Information Ideas

Prof.Madhura Tilak

Market means that customers who have purchased or want to purchase a certain product or service. Market = population+ Purchasing Power + Purchasing Need

Prof.Madhura Tilak

Simple Marketing System


Communication

Goods/services Industry (a collection of sellers) Market (a collection of Buyers)

Money

Information
Prof.Madhura Tilak

fig.shows relationship between industry and market.Sellers and buyers are connected by 4 flows. Seller send goods and services and communication such as ads to market, in return they receive money and information such as customers attitudes

Prof.Madhura Tilak

Who markets?
A marketer is someone who seeks a responseattention. Marketers are responsible for demand management. Marketers are skilled at stimulating demand for their co s products. Marketing managers seek to influence the level, timing, and composition of demand to meet organization s objectives-Eight demand states are possible:
Prof.Madhura Tilak

Eight demand states are possible:


1. 2. 3. 4. 5. 6. 7. 8. Negative demand Nonexistent demand Latent demand Declining demand Irregular demand Full demand Overfull demand Unwholesome demand
Prof.Madhura Tilak

Demand States and Marketing Tasks


No demand Latent demand Declining demand Irregular demand full demand Overfull demand Unwholesome demand
Prof.Madhura Tilak

Market-key customer markets


Consumer Market Business Market Global Market Nonprofit and Government Markets

Prof.Madhura Tilak

Consumer Market
The aim of buying is to consume for their own or somebody who has something to do with in consumer market.

Prof.Madhura Tilak

Business Market
Business buyers buy goods for their utility in enabling them to make or resell a product to others for the purpose of making profit

Prof.Madhura Tilak

Global Market
Companies selling their goods and services in the global marketplace face additional decisions and challenges.

Prof.Madhura Tilak

Nonprofit and Government Markets


Companies selling their goods to nonprofit organizations such as churches, universities, charitable organizations, or government agencies.

Prof.Madhura Tilak

Five basic markets


Manufacturer markets Resource markets Government markets Intermediary markets Consumer markets

Prof.Madhura Tilak

Structure of Flows
Resources Money Resources

Resource markets
Services, money Taxes, goods Taxes

Money

Services, money

Manufacturer markets

Taxes, goods

Government markets
Services Services, money Taxes, goods

Consumer markets

Money Goods, services

Intermediary markets Prof.Madhura Tilak

Money Goods, services

3.Core Concepts of Marketing


Needs, Wants, and Demands Target Markets & Segmentation Product or Offering Value and Satisfaction Exchange and Transactions Relationships and Networks Marketing Channels Supply Chain Competition Marketing Environment Prof.Madhura Tilak

Needs, Wants, and Demands

Needs describe basic human requirements. Want are shaped by ones society. The need becomes wants when they are directed to specific objects that might satisfy the needs.eg. A consumer in U.S needs food but they want a burger, french fries and soft drink. Demands are wants for specific products backed by ability to pay.
Prof.Madhura Tilak

Companies must measure not only how many people want their product but also how many would actually be willing and able to buy it.

Prof.Madhura Tilak

Target Markets & Segmentation

A marketer can rarely satisfy everyone in market. Therefore marketers start by dividing the market into segments. They identify and profile distinct groups of buyers who may prefer varying products and services. After identifying mkt. segments, the marketer decides where presents the greatest opportunity- which r its target market.
Prof.Madhura Tilak

Example: Scorpio a SUV launched in India by Mahindra and Mahindra, designed for the people who prefer a sturdy vehicle that offers luxury and comfort. Scorpio is positioned as a vehicle that offers luxury and thrill of SUV. Co s perform best when they choose their target markets carefully.
Prof.Madhura Tilak

( sports utility vehicle)

Prof.Madhura Tilak

Marketing philosophies
The production concept The product concept The selling concept The marketing concept The societal marketing concept

Prof.Madhura Tilak

Company Orientations Towards the Marketplace


Production Concept Product Concept Selling Concept Marketing Concept
Consumers prefer products that are widely available and inexpensive Consumers favor products that offer the most quality, performance, or innovative features Consumers will buy products only if the company aggressively promotes/sells these products Focuses on needs/ wants of target markets & delivering value better than competitors
Prof.Madhura Tilak

the production concept holds that consumers will prefers products that are widely available and inexpensive.
Mgrs concentrate on achieving high production efficiency, low costs and mass distribution. This orientation makes sense in developing countries like China, where largest PC manu. Lenevo, domestic appl. Haier take advantage of country s huge and inexpensive labor pool.
Prof.Madhura Tilak

Marketing philosophies The production concept

Marketing philosophies The product concept


The product concept holds that consumers will favor those products that offer the most quality, performance,or innovative features. Managers in these organ focus on making superior products and improving them overtime .A new or improved product will not necessarily be successful unless its priced, distributed, advertised and sold properly.
Prof.Madhura Tilak

Marketing philosophies The selling concept


The selling concept holds that consumers and businesses, if left alone, will ordinarily not buy enough of the organizations products. The organization must, therefore, undertake an aggressive selling and promotion effort.

Prof.Madhura Tilak

The selling concept


Sergio Zyman-former VP Coca Cola marketing said:: The purpose of marketing is to sell more stuff to more people more often for more money in order to make more profit. The selling concept is practiced most aggressively with unsought goods, goods that buyers normally do not think of buying, such as Insurance etc.The aim of co. is to sell what they make, rather than make what the mkt. wants.
Prof.Madhura Tilak

The marketing concept


Emerged in mid 1950 s The marketing concept holds that the key to achieving its organizational goals consists of the company being more effective than competitors in creating, delivering, and communicating customer value to its chosen target markets
Prof.Madhura Tilak

The marketing concept


Theodore Levitt of Harward: Selling focuses on needs of the seller, marketing on needs of buyers.selling is preoccupied with sellers need to convert his product into cash, marketing with idea of satisfying needs of customer by means of the product and whole cluster of things associated with creating, delivering and finally consuming it.
Prof.Madhura Tilak

The societal marketing concept


The societal marketing concept holds that the organizations task is to determine the needs, wants, and interests of target markets and to deliver the desired satisfaction more effectively and efficiently than competitors in a way that preserves or enhances the consumers and the societys well-being.

Prof.Madhura Tilak

Holistic Marketing
The Holistic marketing concept based on the development, design, and implementation of marketing programs, processes and activities that recognizes their breadth and interdepencies. Holistic marketing is thus an approach that attempts to recognize and reconcile scope and complexities of marketing activities.
Prof.Madhura Tilak

Holistic marketing contains 4 broad components characterizing HM: 1.Relationship marketing, 2.Integrated marketing, 3. Internal marketing and 4.Performance marketing.

Prof.Madhura Tilak

1.Relationship Marketing
A key goal of marketing is to develop deep, enduring relationships with people and organizations that could directly or indirectly affect the success of firm s marketing activities. The process of creating, maintaining, and enhancing strong, value-laden relationships with customers and other stakeholders.

Prof.Madhura Tilak

Relationship marketing aims to build mutually satisfying long term relationships with key constituents in order to earn and retain their business. 4 key constituents for relationship marketing are :customers, employees, marketing partners(channels, suppliers, distributors, dealers, agencies) and members of financial community(share holders, investors, analysts)
Prof.Madhura Tilak

To develop strong relationship with this constituents requires an understanding of their capabilities and resources as well as,their needs, desires and goals. The ultimate outcome of relationship marketing is Marketing network .-Build an effective network of relationships with key stakeholders and profits will follow.
Prof.Madhura Tilak

Another goal of relationship marketing is to place much more emphasis on customer retention. Attracting new customer may cost 5 times more as against to retain an existing one. Marketing must skillfully conduct not only CRM but also PRM-partner relationship management.
Prof.Madhura Tilak

2. Integrated marketing
The marketers task is to devise marketing activities and assemble fully integrated marketing programs to create, communicate and deliver value for consumers. MC. Carthy classified as marketing mix tools of 4 broad kinds, called as 4 P s of marketing.

Prof.Madhura Tilak

The Four Ps

The Four Cs
Marketing Mix

Product

Place

Customer Solution

Convenience Price Promotion

Customer Communication Cost Prof.Madhura Tilak

Thank you
Prof.Madhura Tilak
Prof.Madhura Tilak

Value Delivery Process

Prof.Madhura Tilak

Prof.Madhura Tilak

Prof.Madhura Tilak

Prof.Madhura Tilak