Marketing Management 4 August

MARKETING MANAGEMENT - I

BY: Dr SADAF SIRAJ

ACCORDING TO AMERICAN MARKETING ASSOCIATION:

Marketing is an organizational function & a set of processes for creating, communicating & delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders

Stakeholders Organization

Marketing

Creating value

Communicating value

Customer

Delivering value

CORE CONCEPTS OF MARKETING: EXCHANGE

SEGMENTATION

TRANSACTION

TARGET MARKETS

NEEDS, WANTS & DEMANDS

POSITIONING

OFFERINGS & BRANDS

MARKETING CHANNELS

VALUE & SATISFACTION

SUPPLY CHAIN COMPETITION MARKETING ENVIRONMENT

EXCHANGE, TRANSACTION Exchange is the Process of obtaining a desired product from someone by offering something in return     

There are at least two parties Something of value Ability to communicate and deliver Freedom to accept or reject Desirability to deal

Transaction is the trade of values between two or more parties

NEEDS, WANTS & DEMANDS NEEDS basic human requirements

WANTS specific ways of satisfying the need

DEMANDS wants backed by ability to pay

Stated Needs Real Needs Unstated Needs Delight Needs

SEGMENTATION, TARGET MARKET & POSITIONING SEGMENTATION Identification & Profiling of distinct group of buyers with varying preferences

TARGET MARKET Segment presenting the greatest opportunity

POSITIONING Creation of distinct image in the minds of consumer

OFFERINGS & BRANDS OFFERINGS - Physical form of the intangible value propositions or set of benefits BRAND refers to a name, term, symbol or design or a combination of them intended to differentiate the products & services of seller from competition

VALUE & SATISFACTION VALUE - Perceived tangible and intangible benefits and costs to consumers SATISFACTION - Person’s comparative judgments resulting from a product’s perceived performance in relation to his expectations

MARKETING CHANNELS Deliver and Receive messages from the target buyers e.g. Newspapers, television, radio, magazines, telephone, internet etc.

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COMMUNICATION CHANNELS -

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DISTRIBUTION CHANNELS –

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SERVICE CHANNELS –

Display, Sell or Deliver physical product/ service to buyers e.g. distributors, retailers, wholesalers etc. Carry out transactions with potential buyers e.g. warehouse, transportation, bank etc

SUPPLY CHAIN & COMPETITION SUPPLY CHAIN - Channel stretching from raw material to components to final products delivered to final buyers. COMPETITION - All the actual and potential rival offerings and substitutes that a buyer might consider

MARKETING ENVIRONMENT TASK ENVIRONMENT – Immediate actors

in producing, distributing and promoting the offering BROAD ENVIRONMENT      

DEMOGRAPHIC ECONOMIC PHYSICAL TECHNOLOGICAL POLITICO-LEGAL SOCIO-CULTURAL

MARKETING MIX THE 4 P’S OF MARKETING

MARKETING MIX

PRODUCT

PRICE

PROMOTION

PLACE

•QUALITY

•LIST PRICE

•SALES PROMOTION

•CHANNELS

•DESIGN

•DISCOUNTS

•ADVERTISING

•COVERAGE

•PAYMENT

•SALES FORCE

•ASSORTMENT

PERIOD

•PUBLIC RELATIONS

•LOCATION

•CREDIT TERMS

•DIRECT

•INVENTORY

•PRODUCT VARIETY

•FEATURES •BRAND NAME •PACKAGING •SIZE • WARRANTIES

MARKETING

•RETURNS

TARGET MARKET

•TRANSPORT

THE 4 A’S PRODUCT

ACCEPTABILITY

PRICE

AFFORDABILITY

PLACE

ACCESSABILITY

PROMOTION

AWARENESS

THE 7 P’S OF MARKETING PRODUCT PRICE PLACE PROMOTION PROCESS PERSONEL PHYSICAL EVIDENCE

THE EVOLUTION OF MARKETING CONCEPT

PRODUCTION CONCEPT PHILOSOPH Y

Products widely available at affordable prices sell themselves

OBJECTIVE

High Production Efficiency, Low Cost & Mass Distribution

HOW ?

Focus on Production and Distribution Efficiency

PRODUCT CONCEPT PHILOSOPH Y

Innovative, superior quality products are preferred by consumers

OBJECTIVE

Produce superior quality product and improve over time

HOW ?

Focus on innovation and improvement

SELLING CONCEPT PHILOSOPH Y

Product don’t necessarily sell themselves. Customers must be convinced to buy them

OBJECTIVE

Maximize Sales revenues

HOW ?

Aggressive Promotion to create Demand

MARKETING CONCEPT PHILOSOPH Y

Customer centered ; ‘Sense & Respond’

OBJECTIVE

Creating, delivering & communicating superior customer value

HOW ?

Focus on Total Marketing

HOLISTIC MARKETING 

“EVERYTHING MATTERS”- Emphasis on Broad & Integrative perspective

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Development, Design & Implementation of marketing programs, processes & activities

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Recognizes their interdependencies, scope and complexities

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4 Components- Relationship Marketing, Integrated Marketing, Internal marketing & Social Responsibility Marketing

MARKETING DEPT.

COMMUNICATIONS

SENIOR MANAGEMENT

PRODUCT & SERVICES

OTHER DEPT

CHANNELS

INTEGRATED MARKETING

INTERNAL MARKETING

HOLISTIC MARKETING

SOCIETAL MARKETING

RELATIONSHIP MARKETING

ETHICS

CUSTOMER

ENVIRONMENT& LEGAL

CHANNEL

COMMUNITY

PARTNER

RELATIONSHIP MARKETING PHILOSOPH Y

Build mutually satisfying, long term relationship with Customers, Channels & Partners

OBJECTIVE

To build unique marketing network

HOW ?

Focus on CRM as well as PRM

INTEGRATED MARKETING PHILOSOPH Y

Devise & assemble fully integrated marketing activities

OBJECTIVE

To Create, Communicate & Deliver Value to customers

HOW ?

Coordination of Marketing activities to maximize the joint effects

SOCIAL RESPOSIBILITY MARKETING PHILOSOPH Y

Broader concerns – Social, Ethical, Environmental and Legal

OBJECTIVE

Build Social & Ethical considerations into their marketing practices

HOW ?

Balance & Juggle objectives like Company Profits, Consumer Satisfaction & Public Interest

INTERNAL PHILOSOPH Y

MARKETING

Collaboration & Team work within the organization

OBJECTIVE

Hiring, Training & Motivating able employees to serve customers well

HOW ?

Synchronization of manpower to achieve common goals

MARKETING MYOPIA 

Narrow-minded approach to a marketing situation where only short-range goals are considered or where the marketing focuses on only one aspect out of many possible marketing attributes.

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Too much product orientation rather than customer orientation

MARKETING MYOPIA (cont) Signs of being myopic:  Belief that growth is assured by an expanding & more affluent population 

Belief that there is no competitive substitute for industry’s major product

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Too much faith in mass production

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Preoccupation with the product