Marketing Back to Basics

Session 1

Knowledge sharing by SSS Team

Shilpa/Srivatsa/Sanjeev

Inspiration
Business has only two functions - marketing and innovation. Peter F. Drucker

Marketing

Marketing is the activity, set of institutions and processes for creating, communicating, delivering and exchanging offerings that have value for customers,clients,partners and society at large.(American Marketing Association,2007)

Level 1 (Strategic)
Marketing research(info for marketing decisions Marketing Strategy Segmentation Target market selection Positioning

Level 2 (Tactical)

Marketing plan

4 Ps Product Price Place Promotion

Comparison between Market Research & Marketing research

Market research

Marketing research

Provide more global information and focuses on Place(of 4Ps)

Helps in the making strategic and tactical decisions in developing marketing plan

May be considered as a subset of Marketing research

country specifications market potential and accessibility Provides overall customer information (who, what, where, when and how) Competitors, information about industry

gives rather a more in-depth information on your offer and customers.

interviews tests of offer with direct feedback follow-up of the consumer and its behaviour

Definitions- AMA

Market research: The systematic gathering, recording, and analysing of data with respect to a particular market, where market refers to a specific customer group in a specific geographic area

Marketing research: is the systematic gathering, recording, and analysis of data about issues relating to marketing products and services

Focus groups, Observation, surveys,experiments

Marketing Research-Example

Gillette Venus Razor for Women

New product development Extensive consumer research and market tests Women changed their grip on a razor about 30 times during each shaving session Need a storage case to stick to shower walls A case to hold spare blade catridges as women were reluctant to leave the shower in order to replace a blade Introduced 4 types of Venus Razors: Perfect shave seekers, skin pamperers, pragmatic functionalities, EZ seekers

Research revealed :

Core Competency & Competitive Advantage

A core competency has 3 characteristics:

i.

It is a source of competitive advantage and makes a significant contribution to perceived customer benefits It has applications in a wide variety of markets It is difficult for competitors to imitate

ii. iii.

E.g. Core competency in Product design, development and marketing , outsourcing manufacturing to offshore place

Competitive advantage :

Ultimately derives from how well the company has fitted its core competencies and distinctive capabilities into tightly interlocking activity systems so that competitors cannot imitate in near future

E.g.: Southwest Airlines in US, Wal-Mart, Ikea

How can you maximize your organization's core competencies?

Solution : Business Realignment (Marketing Management ,Kotler) E.g. Godrej & Boyce realigned its furniture business to target the home segment(Godrej Interio), with successful results Reasons: Growing competition in institutional segment, evolving consumer tastes and the aim to increase market share Business realignment has 3 steps: (re)defining the business concept or big idea (re)shaping the business scope (re)positioning the companys brand identity.

1. 2. 3.

What is marketed/requires marketing?

1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Goods Services Events Experiences* Persons* Places* Properties Organizations Information Ideas*

Social marketing

Promoting powerful ideas that encourage socially desirable behaviour and action is part of social marketing.

4 Ps and 7Ps

Successful marketing dependes upon a number of key issues.These include: 4Ps What a company is going to produce: Product How much it is going to charge: Price How it is going to deliver its products/services: Place How it is going to sell its customers about its products/services: Promotion 3 more Ps As marketing became a more sophisticated discipline, a fifth was added People: The reputation of your brand rests in your peoples hands Mainly for service sector two more Ps- Process & Physical evidence

Source : The Chartered Institute of Marketing

Thank you
SSS Team signing off