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Marketing Management

-Shraddha Kaushik
What is Marketing…??
Selling
Advertising
Promotions
Making products available in stores
Maintaining inventories

All of the above, plus much more!

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Defination

• It is a social process by which individual groups


obtained what they need & want through creating
offerings & freely exchange products of value
with others.

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Features

• Identifying needs & wants


• Creating a market offering
• Customer value
• Exchange Mechanism

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Marketing Management
Choosing a target
market

Creating and grooming


(Customizing Target
Market)

Creating Superioir
values (Unique selling
propositions)

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Marketting Management Policies

• Production Concepts
• Product Concepts
• Selling Concepts – Selling what you have
produced
• Marketing Concept-Produce what you can sell
• Society Concept-Provide Eco-Friendly Products

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Marketing = ?
 Marketing is the sum of all activities that take you to a
sales outlet. After that sales takes over.
 Marketing is all about creating a pull, sales is all about
push.
 Marketing focuses on customer need ,sales focuses on
seller needs.
 Marketing is all about managing the four P’s –
 product
 price
 place
 promotion

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Marketing Management Policies

• Production Concepts-large scale production at


lower cost.
• Product Concept-producing good quality
products.
• Selling Concept-Sell what you have produced.
• Marketing Concept-Produce what the customer
desire.
• Society Concept-Provide eco friendly products.

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Features of management

• Identify needs and wants.


• Creating market offering
• Customer Value
• Exchange Mechanism

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Marketing management

RESEARCH
PHYSICAL
DISTRIBU
TION OF PLANNING
GOODS

STORAGE BUYING
AND AND
WARE ASSEMBL
HUSING ING

Functions

STANDARD
PROMOTIONS IZATION
AND SELLING AND
GRADING

PACKAGING
PRICING OF
AND
PRODUCTS
LABELLING

BRANDING

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Marketing Vs Selling
Marketing is the process of planning and executing the
conception, pricing, promotion, and distribution of ideas,
goods, services to create exchanges that satisfy
individual and organizational goals
-American Marketing Association
Selling management is the art and science which
involves transfer of goods from the producer to the
consumer

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Difference Between - Sales & Marketing ?

Sales
trying to get the customer to want what the
company produces

Marketing
trying to get the company produce what the
customer wants

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Objective of Marketing
Management

• Creation of Demand
• Capturing Market Share
• Building Goodwill
• Profitable Sales Volume through Customer
Satisfaction
• Higher Standard of Living
• Social and National Goals

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Scope – What do we market

 Goods
 Services
 Events
 Experiences
 Personalities
 Place
 Organizations
 Properties
 Information
 Ideas and concepts

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In order to understand Marketing let us begin with the
Marketing Triangle

Customers

Company Competition

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Core Concepts of Marketing

Based on :
 Needs, Wants, Desires / demand

 Products, Utility, Value & Satisfaction


 Exchange, Transactions & Relationships
 Markets, Marketing & Marketers.

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Core Concepts of Marketing

Needs, wants Utility, Value &


Products
demands Satisfaction

Marketing & Xchange, Transaction


Markets
Marketers Relationships

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How Do Consumers Choose Among
Products & Services?

Value - the value or benefits the customers gain from


using the product versus the cost of obtaining the
product.
Satisfaction - Based on a comparison of performance
and expectations.
 Performance > Expectations => Satisfaction
 Performance < Expectations => Dissatisfaction

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Customers - Problem Solution

As a priority , we must bring to our customers


“WHAT THEY NEED”
We must be in a position to UNDERSTAND their
problems
Or in a new situation to give them a chance to AVOID
the problems

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Customer looks for Value
Value = Benefit / Cost
Benefit = Functional Benefit + Emotional
Benefit
Cost = Monetary Cost + Time Cost +
Energy Cost + Psychic Cost

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Simple Marketing System
Communication

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

Information 21
The 4 Ps & 4Cs

Marketing Convenience
Mix

Place
Product

Customer
Solution Price Promotion

Customer Communication
Cost
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The Marketing “Mix”
Marketing Mix – 4Ps
The marketing mix elements that make up an organization’s
marketing program:

1. Product
2. Promotion
3. Price
4. Place
These are management decisions, controllable
factors
• Marketing function relates to many people,
groups, and forces
Levels of product

• Core Benefit-Basic Benefits that a customer


seeks.
• Expected Product-Expectation of the customer
• Augmented Product-Beyond a customer
expectation.

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PRODUCT

PRODUCT

CONSUMER GOODS INDUSTRAIL GOODS

ON THE BASIS OF BUYER


BEHAVIOUR COMPENENT PARTS &
BASED ON DURABLITY -Convenient Product RAW MATERIAL
-Durable Goods -Shopping Product
-Non Durable Goods
-Specilaist Product CAPITILIZATION

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Price

Price of the product should be such which justify


the values that the customer is going to derive by
using that product.

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Internal Factors
• COST-Cost+ profit margin-Customer
perception,demand,competition.
• Pricing Objectives-
-Profit Maximization
-Sales Value Maximization
-To fight Competition
-Share Maximization
-Creating Special image of the brand
Other Elements-Promotion,channel of distribution
& promotions. 29
EXTERNAL FACTORS

 Product Demand
 Competition
 Legal Restraints
 Physical Distribution of product

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Channels types of Distribution

 Zero level channel/direct channel.


 Indirect level Channel

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Indirect level Channel
One level Channel

Manufacture Retailer Customer

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Two level channel

Manufacture Wholesaler Retailer Customer

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Three level Channel

Manufacture Agent Wholesaler Retailer Customer

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Factors –Size of channel

1. Market related factors


 Nature of market
 Size of market
 Geographical Concentration

2. Product Related Factors


 Unit Value of product
 Product Complexity

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PROMOTION MIX

Advertisement

Sales promotion

Personal Selling

Public Relations

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Advertising

• Paid form of non personal presentation of ides by


an identified sponsers.
• Activities that are undertaken inorder to inform
the target market and its price & as well as
persuate them to buy the product

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Role of advertising

• Helps in creating a demand


• It adds to consumer confident
• Facilitates introduction of new product
• Educates the consumer about new product
• Improves standard of living
• Economics of sales

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Objections:

• Encourages sales of inferior & duplicate


products.
• Effect on advertisement of lifestyles
• Some advertisement are in bad taste
• Advertisement Confuses rather than help
• Advertisement Cost are passed on to the
customer

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SALES PROMOTIONS

Sales promotion consists of all promotional


activities other than advertising personal selling
and publicity that stimulate the market demand
for products.

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MERITS OF SALES PROMOTION
• Effective short run process
• Differentiating a company product
• Less costly
• Psychological satisfaction

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Techniques of sales promotion

• Rebates
• Discounts
• Refunds
• Coupons
• Premiums
• Distribution of samples
• Lucky draw
• Usable Benefit
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Strategic Marketing

Strategic marketing management is concerned with


how we will create value for the customer
Asks two main questions
 What is the organization’s main activity at a
particular time? – Customer Value
 What are its primary goals and how will these be
achieved? – how will this value be delivered

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Strategic Planning

Strategic Planning is the managerial process of


creating and maintaining a fit between the
organization’s objectives and resources and the
evolving market opportunities.

 Also called Strategic Management Process


 All organizations have this
 Can be Formal or Informal

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The Strategic-Planning, Implementation,
and Control Process

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Business Strategic-Planning Process
External environment
(Opportunity &
Threat analysis)

Business Mission Goal Formulation

Internal Environment

(Strength/ Weakness analysis)

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Strategy Formulation
Environmental Analysis

Competitor Internal Analysis


Customer
Supplier Technology Know-How
Regulatory Manufacturing Know-How
Social/ Political Marketing Know-How
Distribution Know-How
Logistics
Opportunities & Threats
Strength & Weaknesses

Identity Core Competencies


Identify opportunity

Fit internal Competencies with external opportunities

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Firm Strategies
The Marketing Plan

A written document that acts as a guidebook of


marketing activities for the marketing manager

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CONTENTS of MARKETING PLAN
Business Mission Statement
Objectives
Situation Analysis (SWOT)
Marketing Strategy
 Target Market Strategy
 Marketing Mix
 Positioning
 Product
 Promotion
 Price
 Place – Distribution
 People
 Process
Implementation, Evaluation and Control

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The Marketing Process

Business
Mission
Statemen
t

Objective
s

Situation
or SWOT
Analysis

Marketing Strategy
Target Market
Strategy

Marketing Mix
Product Place/Distribution

Promotion Price

Implementation
Evaluation, Control
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Marketing Environment
Why a product like radio declined
and now once again emerging as
an entertainment medium ?

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What Were the Drivers of This Change ?

Technology ?

Government policy ?

Other media substitutes ?

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Why Market Leaders Suffered ?

 HMT vs. Titan


 HLL vs. Nirma
 Bajaj vs. Honda
 Dot.com boom, then bust and now resurgence
 Market leadership today cannot be taken for
granted.New and more efficient companies are able
to upstage leaders in a much shorter period.

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Factors
Influencing
Company’s
Marketing
Strategy

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External Marketing Environment
External Environment
Social Ever-Changing
is not controllable Change Marketplace
Demographics

Economic
Product Physical / Natural Conditions
Distribution
Promotion
Price
Competition
Target Market
Political &
Legal Factors
Technology
Environmental
Scanning

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The macro-environment

is the assessment of the external forces that act upon the


firm and its customers, that create threats & opportunities

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Product

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Product is . . . . .

Anything that is offered to the market for


attention, acquisition, use or consumption that
satisfies a want or a need

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Types of Products

PRODUCTS

Consumer Industrial
Services
Products Products

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Product Items, Lines, and Mixes

A specific version of a product


that can be designated as a
Product Item
distinct offering among an
organization’s products.

A group of closely-related
Product Line
product items.

All products that an


Product Mix
organization sells.

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Product Mix

Width – how many product lines a company has


Length – how many products are there in a product line
Depth – how many variants of each product exist within a
product line
Consistency – how closely related the product lines are in
end use

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What is a Service? Defining
the Essence
An act or performance offered by one party to another
(performances are intangible, but may involve use of
physical products)

An economic activity that does not result in ownership

A process that creates benefits by facilitating a desired


change in customers themselves, or their physical
possessions, or intangible assets

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Some Industries - Service Sector

Banking, stock broking Health care


Lodging Education
Restaurants, bars, Wholesaling and retailing
catering Laundries, dry-cleaning
Insurance Repair and maintenance
News and entertainment Professional (e.g., law,
architecture, consulting)
Transportation (freight and
passenger)

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Classification of Services
Pure Intangible
Banking
Service

Good Transportation

Major Service with


Minor Product
Business Hotels
Product = Service

Computers

Major Product with


Minor Services
Materials / Components

Pure Tangible Product


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Major Characteristic of Services

 Intangibility – Services are intangibility cannot be seen,


tasted, felt, heard or smelled before purchase.

 Inseparability - Services are produced and consumed


simultaneously.

 Variability or Heterogeneity – Services are highly variable

 Perishability – Services cannot be stored.

 Non Ownership - Services are rendered but there is no


transfer of title

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The Marketing Mix

The conventional view of the marketing mix consisted of


four components (4 Ps): Product, Price, Place/
distribution and Promotion.
Generally acknowledged that this is too narrow today;
now includes , Processes, Productivity [technology
]People [employees], Physical evidence
Marketers today are focused on virtually all aspects of
the firm’s operations that have the potential to affect
the relationship with customers.

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The “8Ps” of Integrated Service
Management vs. the Traditional “4Ps”

► Product elements
► Place, cyberspace, and time
► Process
► Productivity and quality
► People
► Promotion and education
► Physical evidence
► Price and other user outlays

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The Give and Get of Marketing

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Great Words on Marketing

1. “The purpose of a company is ‘to create a customer…The only


profit center is the customer.’”
2. “A business has two—and only two—basic functions: marketing
and innovation. Marketing and innovation produce results: all the
rest are costs.”
3. “The aim of marketing is to make selling unnecessary.”
4. “While great devices are invented in the Laboratory, great
products are invented in the Marketing department.”
5. “Marketing is too important to be left to the marketing
department.”

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Drivers of Customer Satisfaction
Many aspects of the firm’s value proposition contribute
to customer satisfaction:
 The core product or service offered
 Support services and systems
 The technical performance of the firm
 Interaction with the firm and it employees
 The emotional connection with customers

Ability to add value and to differentiate as a firm focuses


more on the top levels

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Marketers and Markets
Marketers are focused on stimulating exchanges with
customers who make up markets – B2C or B2B.
The market is comprised of people who play a series
of roles: decision makers, consumers,
purchasers, and influencers.
It is absolutely essential that marketers have a detailed
understanding of consumers, their needs and
wants.
Much happens before and after the sale to affect
customer satisfaction

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Stages of Customer Interaction

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What Changed in Marketing…

Old Economy New Economy

• Organize by product units • Organize by customer segments


• Focus on profitable transactions • Focus on customer lifetime value
• Look primarily at financial • Look also at marketing scorecard
scorecard
• Focus on shareholders • Focus on stakeholders
• Marketing does the marketing • Everyone does the marketing
• Build brands through advertising • Build brands through performance
• Focus on customer acquisition • Focus on customer retention
• No customer satisfaction • Measure customer satisfaction and
measurement retention rate
• Over-promise, under-deliver • Under-promise, over-deliver

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Are Banks truly
marketing-savvy and
customer - centric?

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Myth 1 – The larger the range of products, the more
customer-centric I am.

Mythbuster – The range of products has


emerged from being
competition-centric.

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Myth 2 – Better technology (read CRM) leads to
better customer service.

Mythbuster – Technology
alone does not deliver,
helps people do.

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Myth 3 – Launch a product and the customer will start
using instantly.
- Give a customer a card and he will learn how to play
with it immediately

Mythbuster – Customers need


To be educated too…

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Myth 4 – The only way to get a customer is from
competition.

Mythbuster – Customers
are not only present
where competition is.

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Myth 5 – Just advertise and - You will sell.

Mythbuster – Advertising will only sell,


Not retain customers.
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Myth 6 – No difference between marketing & selling

Mythbuster – “Selling focuses on the needs of the


seller; marketing on the needs of the buyer.

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Myth 7 – In the absence of relationships ‘trust’ builds
financial brands

Mythbuster – Trust is not a differentiator at all…


it is the very minimum that the customer expects!!

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So what will the differentiators be :

• Technology ?

• Brand ?

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The real differentiator of
customer – centricity in a
commoditised world of financial
products -
Customer Service !

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Thank You

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