MARKETINGMANAGEMENT

CAIIB-GBM Module D

byDr. Onkar Nath

Faculty Sir SPBT College, MUMBAI

MARKETING CONCEPT

A situation where buyers and sellers of a commodity interact.Coming together of buyers and sellers of the same or similar commodities

MARKETING

Marketing is the process of determining consumer demand for a product or service, motivating its sale and distributing it into ultimate consumption at a profit

EVOLUTION OF MODERN MARKETING

Barter System Industrial revolution Digital revolution Customer and market driven Wants of customers CRM Customer Satisfaction Nothing is worthwhile unless it touches the

customer

The Core Concepts of Marketing

Needs, wants and demands

Products (Goods, Services, and Ideas)

Value, Cost and Satisfaction

Exchange and transactions

Relationship and Networks

Marketers and Prospects

MARKETING MANAGEMENTA process of planning and executing the conception, pricing , promotion and distribution of goods and services and ides to create exchanges with target groups that satisfy customer and organizational objectives.

Processes involved Analysis, planning, implementation,

and control;

Covers goods, services, and Ideas;

Rests on the notion of exchange; and

Goal is to produce satisfaction for the parties involved

Company Orientation towards the Marketplace (Marketing Concepts)

• Production Concepts/Orientation

• Product Concept/Orientation

• Selling Concept/Orientation

• Marketing Concept/Orientation

• Societal Marketing Concept

SERVICE

A service is any act or performance that one party can offer to another that is essentially intangible and does not result in the ownership of anything. It’s production may or may not be tied to physical product.

CHARACTERISTICS OF SERVICES Intangibility Inseparability Heterogeneity Perishability

S.No.S.No. Physical GoodsPhysical Goods ServicesServices

1.1. TangibleTangible IntangibleIntangible

2.2. HomogeneousHomogeneous HeterogeneousHeterogeneous

3.3. Product and distribution Product and distribution separated from separated from consumptionconsumption

Production, distribution Production, distribution and consumption re and consumption re simultaneous processsimultaneous process

4.4. A thingA thing A activityA activity

5.5. Core value produced in Core value produced in factory factory

Core value produced in Core value produced in buyer-seller interactionbuyer-seller interaction

6.6. Customers do not Customers do not participate in the participate in the production processproduction process

Customers participate in Customers participate in productionproduction

7.7. Can be kept in stockCan be kept in stock Cannot be kept in stockCannot be kept in stock

8.8. Transfer of ownershipTransfer of ownership No transfer of ownershipNo transfer of ownership

Marketing PlanningMacro- and Macro-Factors influencing the market for an organization's goods and services

Controllable Marketing Variables and the Macro-Environment

Demographic Factors SKIPPIES : School Kids with Income and

Purchasing Power

MOBYS : Mother Older, Baby Younger

DINKS : Dual Income No Kids

DEWKS : Dual Earners With Kind

PUPPIES : Poor Urban Professionals

WOOFS : Well-Off Older Folks

Economic Factors

Natural Factors

Technological factors

Political and Legal factors

Social and Cultural Factors

Proximate Macro-Environment Competitive Environment

Supplier Environment

Distributive Environment

Scanning and Adaptive to the Environment

Intra-Firm (Micro) Environment

Applicability to Banking The competition environment in banking

Retail Banking

Technology impact on product/service scenario

The changes in distribution plans

The outsourcing or contracting out of non-core bank services

Privatization

Globalization

Corporate banking

Insurance

Meaning and importance of planning in marketing

Traditional planning

Difference between a marketing plan and a company’s corporate plan

Market-oriented strategic planning

Difference between marketing plan and marketing planning process

Marketing planning (process)

Marketing plan

Annual-plan control

Banking regulation and its impact on marketing strategies

Open market operations

Current scenario

Consumer behaviour

Consumer behaviour : A directional Force

The complexity of consumer Buying Decisions

Needs and Motives Physiological needs

Safety needs

Social needs

Esteem needs

Self-actualization

Individual Perception Selective perception

Theory of cognitive dissonance

Learning and Habit development Habit-breaking Habit-acquisition Habit-reinforcement

Behaviour Models for Analyzing BuyersThe Marshallian Economic ModelThe Pavlovian Learning ModelThe Freudian psychoanalytic ModelThe Veblenian Social Psychological Model

CultureSub-culturesSocial ClassReference GroupsFace-to-Face GroupsParent

Hobbesian Organizational Factors Model

Swinging singles to solitary survivors

Family buying roles

Initiator

Influencer

Decider

Purchaser

User

Factors Influencing Consumer Behaviour in Banking

Location

Safety

Returns

Customer Service

Range of Services

Easy Documentation and well-defined Eligibility Criteria

The art of customer service as applied to banking

Building customer satisfaction through quality, service, and value

Customer Value satisfaction

Defining service quality

Managing Quality

Delivering Customer Value and Satisfaction: Moments of Truth

Well-conceived strategy for service

Customer-oriented front-line people

Customer-friendly systems

The Triangle Of Service Customer-service strategy

connection

customer-people organization

connection

Customer-system connection

Systems-people; Strategy-systems;

Strategy- people Connections

Customer Relationship in Services Marketing

Giving Promises: The traditional or External Marketing

Fulfilling Promises: Internal and Interactive Marketing

Customer Care

Consumer and Market Segmentation

Criteria for market segmentation

Meaningful

Measurable

Useful and reachable

Consumer and Market Segmentation

Mass Markets and Segmentation

Types of Consumer Segments

Characteristics of segments

Benefits and Disadvantages of Market Segmentation

Alternative Strategies

Evaluation

Marketing Segmentation Strategy: Techniques

Application of Segmentation of Banking Services

Marketing Research Marketing research is research all about

the market: its size, composition, structure and so on

Marketing Research Process

Types of data – Primary and Secondary data

Quantitative and Qualitative Research Methodologies

Time and cost constraints

The major uses of Marketing Research

Marketing Information System

Marketing Mix Marketing of financial services

Bank marketing

Service marketing mix

Current development

Competitor Analysis Gap Psychiatry – A structural

Methodology

Build a strategic planning knowledge base

Creating a sustainable advantage

Speeds as Strategy

Competitive Strategies

Product Strategy Nature of product

Product and service

Elements of Product Mix

Product Life Cycle and Product Strategies

Product Analysis

New Product Development

Branding and Marketing

Role of Brand in Bank Marketing

The Concept of Product/Service Delivery

Process Cycle in Product Development

Packaging and Delivery

Pricing Strategy and its Application in Banking

Pricing for Profitability

Elasticity of demand

Pricing Methods/Strategies

Pricing Decisions

Pricing Concept in Banking

Pricing Review and Committees

Concept of Service Fees

Bank Distribution Strategies Distribution of Financial Services

Barriers

Channels of Distribution for Banks

Promotion Strategy Communication Process

Goals of Communication

Advertising and Sales Promotion

Sales Promotion

Publicity

Internal Communication

Marketing Information System (MIS)

Moments of Truth: Customer Care

Sales Training and HRD in Marketing Proper Attitude Orientation of Staff

Selling Skills Required

Need and Importance of Sales Training

Sales Training and Strategy

Selling process

Impact of Training as HRD Intervention in Marketing

Direct Sales Force

Importance of Quality Service

Public Relation and Institution Image

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