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What is Marketing??
Selling?
Advertising?
Promotions?
Making products available in stores?Maintaining inventories?
All of the above, plus much more!
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Marketing = ?
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
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Marketing = ?
Marketing management is the art and science of
choosing target markets and getting, keeping, and
growing customers through creating, delivering, and
communicating superior customer value.
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Simple Marketing System
Industry(a collection
of sellers)
Market(a collection
of Buyers)
Goods/services
Money
Communication
Information
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Marketing = ?
Marketing is the sum of all activities that take you to asales outlet. After that sales takes over.
Marketing is all about creating a pull, sales is all about
push.
Marketing is all about managing the four Ps
product
price
place
promotion
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The 4 Ps &4Cs
Marketing
Mix
Product
Price Promotion
Place
Customer
Solution
Customer
Cost
Communication
Convenience
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Difference Between - Sales & Marketing ?
Salestryingto get the customer to want what the
companyproduces
Marketingtrying to get the company produce what the
customerwants
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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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Basics of Marketing
Based on :
Needs, Wants, Desires / demand
Products, Utility, Value & Satisfaction
Exchange, Transactions & Relationships
Markets, Marketing & Marketers.
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Needs, wantsdemands
Markets Marketing &
Marketers
Utility, Value &Satisfaction
Exchange, Transaction
Relationships
Products
Basics of Marketing
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Core of Marketing
Need food ( is a must )
Want Pizza, Burger, French fry's ( translation of a need
as per our experience )
Demand Burger ( translation of a want as per our
willingness and ability to buy )
Desire Have a Burger in a five star hotel
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In order to understand Marketing let us begin with theMarketing Triangle
Customers
CompetitionCompany
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Who is a Customer ??
Anyone who is in the market looking at a product /
service for attention, acquisition, use or consumption
thatsatisfiesa want or a need
CUSTOMER IS . . . . .
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Customer
CUSTOMER has needs, wants, demands anddesires
Understanding these needs is starting point of theentire marketing
These needs, wants arise within a frameworkor an ecosystem
Understanding both the needs and the ecosystem isthe starting point of a long term relationship
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How Do Consumers Choose AmongProducts & 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 performanceand expectations.
Performance > Expectations => Satisfaction
Performance < Expectations => Dissatisfaction
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Customers - Problem Solution
As a priority , we must bring to our customersWHAT THEY NEED
We must be in a position to UNDERSTANDtheir
problems
Or in a new situation to give them a chance to AVOIDthe problems
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Customer looks for Value
Value = Benefit / Cost
Benefit = FunctionalBenefit + EmotionalBenefit
Cost = Monetary Cost + Time Cost +Energy Cost + Psychic Cost
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The Value Chain
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Primary Activities:
Inbound Logistics: Inbound activities to receive, store anddistribute inputs to the product, such as material handling,inventory control, warehousing and contact with suppliers.
Operations: Production activities to create the productsuch as machining, packaging, printing and testing.
Outbound Logistics: Outbound activities to store and
distribute the product to customers, includingwarehousing, order processing and vehicle scheduling.
Marketing and Sales:Activities associated with providing ameans by which buyers can purchase the product and beincluded to do so (advertising, selling, pricing,
merchandising and promotion). Service: Activities for providing service or maintaining
product value, including installation and training.
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Support Activities:Procurement: Purchasing input.Technology Development: Not just machines and
processes but also expertise, procedures andsystems.
Human Resource Management:Activitiesinvolved in recruiting, training and staff
development.Infrastructure: General management, finance,planning and quality assurance. Infrastructuresupports the whole value chain.
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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 organizations main activity at aparticular time?Customer Value
What are its primary goals and how will these beachieved? how will this valuebe delivered
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Strategic Planning
Strategic Planning is the managerial process ofcreating and maintaining a fit between theorganizations 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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Corporate and Division planningactivities
Defining the corporate mission.
Establishing strategic business units.
Assigning resources to each SBU.
Assessing growth opportunities.
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Growth strategies
Marketpenetrationstrategy
Productdevelopmentstrategy
Marketdevelopment
strategy
Diversification strategy
Current M & P= PENETRATIONPromotion, repositioning thee brand
Current M & New P= PRODUCT DEVELOP..
Develop and innovate product offerings toreplace existing one.
New M & Current P= MARKET DEVELOP..
Product export, marketing in new region.
New M & New P= DIVERSIFICATION
Market completely new product to new
customers.
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Business Strategic-Planning Process
External environment
(Opportunity &
Threat analysis)
Internal Environment
(Strength/ Weakness analysis)
Goal FormulationBusinessMission
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Strategy Formulation
Environmental Analysis
Internal AnalysisCompetitorCustomerSupplier
RegulatorySocial/ Political
Technology Know-HowManufacturing Know-How
Marketing Know-HowDistribution Know-How
Logistics
Strength & Weaknesses
Identity Core Competencies
Opportunities & Threats
Identify opportunity
Fit internal Competencies with external opportunities
Firm Strategies
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The Marketing Plan
A written document that acts as a guidebook ofmarketing activities for the marketing manager
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CONTENTS of MARKETING PLANBusiness Mission Statement
ObjectivesSituation Analysis (SWOT)
Marketing Strategy
Target Market Strategy
Marketing Mix Positioning
Product
Promotion
Price
Place Distribution People
Process
Implementation, Evaluation and Control
Th M k ti P
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The Marketing Process
BusinessMission
Statement
Objectives
Situationor SWOTAnalysis
ImplementationEvaluation, Control
Target MarketStrategy
Marketing Strategy
Product
Promotion
Place/Distribution
Price
Marketing Mix
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Marketing Environment
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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
CompanysMarketing
Strategy
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Demographics
SocialChange
Economic
Conditions
Political &Legal Factors
Technology
Competition
EnvironmentalScanning
Target Market
ProductDistributionPromotion
Price
External Environmentis not controllable Ever-Changing
Marketplace
External Marketing Environment
Physical / Natural
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The macro-environment
is the assessment of the external forces that act upon thefirm and its customers, that create threats & opportunities
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P r o d u c t
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Anything that is offered to the market for
attention, acquisition, use or consumption that
satisfies a want or a need
Product is . . . . .
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Types of Products
ConsumerProducts
IndustrialProducts
PRODUCTS
Services
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Product Items, Lines, and Mixes
Product Item
Product Line
Product Mix
A specific version of a productthat can be designated as adistinct offering among anorganizations products.
A group of closely-relatedproduct items.
All products that anorganization 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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Gillettes Product Lines & Mix
Blades and Writingrazors Toiletries instruments Lighters
Fusion 5 bladeMach 3 TurboMach 3 Series Paper Mate CricketSensor Adorn Flair S.T. DupontTrac II Toni S.T. DupontAtra Right GuardSwivel SilkienceDouble-Edge Soft and DriLady Gillette FoamySuper Speed Dry LookTwin Injector Dry IdeaTechmatic Brush Plus
Width of the product mix
Deptho
ftheproductlines
What is a Service? Defining
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What is a Service? Definingthe 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
Lodging
Restaurants, bars,
cateringInsurance
News and entertainment
Transportation (freight andpassenger)
Health care
Education
Wholesaling and retailing
Laundries, dry-cleaningRepair and maintenance
Professional (e.g., law,architecture, consulting)
Cl ifi i f S i
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Classification of Services
Pure Tangible Product
Materials / Components
Computers
Major Product withMinor Services
Product = Service
Major Service with
Minor ProductBusiness Hotels
Good Transportation
Banking
Pure Intangible
Service
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IntangibilityServices 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 notransfer of title
Major Characteristic of Services
Th M k ti Mi
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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 ofthe firms operations that have the potential to affect
the relationshipwith customers.
The 8Ps of Integrated Service
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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
Great Words on Marketing
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Great Words on Marketing
1. The purpose of a company is to create a customerThe onlyprofit center is the customer.
2. A business has twoand only twobasic functions: marketingand innovation. Marketing and innovation produce results: all therest are costs.
3. The aim of marketing is to make selling unnecessary.
4. While great devices are invented in the Laboratory, greatproducts are invented in the Marketing department.
5. Marketing is too important to be left to the marketingdepartment.
D i f C S i f i
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Drivers of Customer Satisfaction
Many aspects of the firms 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
M k d M k
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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 detailedunderstanding of consumers, their needs andwants.
Much happens beforeand afterthe sale to affect
customer satisfaction
St f C t I t ti
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Stages of Customer Interaction
Wh t Ch d i M k ti
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What Changed in Marketing
Organize by product units
Focus on profitable transactions
Look primarily at financialscorecard Focus on shareholders
Marketing does the marketing
Build brands through advertising
Focus on customer acquisition
No customer satisfactionmeasurement
Over-promise, under-deliver
Organize by customer segments
Focus on customer lifetime value
Look also at marketing scorecard Focus on stakeholders
Everyone does the marketing
Build brands through performance
Focus on customer retention
Measure customer satisfaction andretention rate
Under-promise, over-deliver
Old Economy New Economy
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Are Banks truly
marketing-savvy andcustomer - centric?
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Myth 1 The larger the range of products, the more
customer-centric I am.
Mythbuster The range of products hasemerged 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 3Launch 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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Mythbuster Customersare not only presentwhere competition is.
Myth 4 The only way to get a customer is from
competition.
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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
MythbusterSelling focuses on the needs of theseller; marketing on the needs of the buyer.
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Myth 7 In the absence of relationshipstrust buildsfinancial brands
Mythbuster Trust is not a differentiator at all
it is the very minimum that the customer expects!!
S h t ill th diff ti t b
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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
gyan