1. Marketing - Definition & Concepts

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MARKETING PRINCIPLES Trim. 1

Marketing Definitions & Evolution Customer Orientation Marketing Mix 4 Ps Product Life Cycle Marketing Environment Market Research Marketing Information Systems Demand Forecasting New Product Development STPD / SWOT AnalysisMarketing Principles

MARKETING PRINCIPLESReference Books Marketing Management Philip Kotler Basic Marketing Perrault & McCarthy Marketing Management Planning, Implementation & Control V.S.Ramaswamy & S.Namakumari Marketing Management Rajan Saxena

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Marketing Principles

MARKETING PRINCIPLESReference Books Marketing Management Philip Kotler Basic Marketing Perrault & McCarthy Marketing Management Planning, Implementation & Control V.S.Ramaswamy & S.Namakumari Marketing Management Rajan Saxena

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Marketing Principles

MARKETING - DEFINITION & CONCEPTS Marketing Starts & Ends with the Customer Marketing is so basic that it cant be considered a separate function It is the whole business seen from the Customers Point of View . Peter Drucker The purpose of Marketing is to make Selling Superfluous . Peter DruckerTrim. 1

Marketing Principles

MARKETING Customer never buys a Product or Service but a Problem Solution The motif of Marketing In the market the important thing is not objectively the truth but only what the customer subjectively feels as true MARKETING is Satisfy Existing Demands and Create New Demands Marketing & Innovations Produce Results ; All The Rest Are CostTrim. 1

Marketing Principles

SALES & MARKETING What is the Difference between Sales & Marketing Sales : Trying to get the Customers To Want what the Company Produces Marketing : Trying to get the Company To Produce what the Customer Wants

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Marketing Principles

SALES & MARKETING What is the Difference between Sales & Marketing Sales :Production Selling Consumer

Marketing :Consumer Need Evaluation Integrated Marketing Effort Consumer Satisfaction Achievement of Organisation Goals FEEDBACKTrim. 1

Marketing Principles

SALES & MARKETING How Marketing Evolves :Production Era Sales Era Marketing Department Marketing Company

EraSupply Equals Demand Supply Exceeds Demand

EraSupply Exceeds Demand Integrated Comprehensive Role for Marketing

Demand Exceeds Supply

Output Expanded

Selling Process Important

Marketing a Subsidiary Function

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Marketing Principles

THREE Cs OF MARKETING The Marketing Triangle :Customer

Company

Competitor

Satisfying the needs of the CUSTOMER Better than the COMPETITION and profitable to the COMPANYMarketing Principles

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What is Marketing ? Common Sense An attitude of mind Reactive or Proactive A motivating force Challenge to established way of doing things Customer Orientation Satisfy existing demand Create New demandsTrim. 1

Marketing Principles

MARKETING CONCEPT It Means An Organisation Aims All Its Efforts At Satisfying The Customers At Profit

CUSTOMER SATISFACTIONMARKETING CONCEPT

PROFIT AS OBJECTIVE

TOTAL COMPANY EFFORTSTrim. 1

Marketing Principles

INTEGRATED MARKETING Customer should always be the FOCUSR&D Sales Finance

Customer

MarketingHuman ResourcesTrim. 1

Marketing Principles

CUSTOMER ORIENTATION One common factor observed among all highly successful companies is HIGHLY CUSTOMER ORIENTED CULTURE In fact they almost seemed to have SMELL OF CUSTOMERS Tom Peters Our goal is not only to satisfy customer but to delight them - Japanese Can Company Our Goal as a company is to have a customer service not just the best but legendary - Wal Mart Customer Satisfaction is a Long Term StrategyTrim. 1

Marketing Principles

CUSTOMER ORIENTATION Today all companies are seeking a distinctive competitive advantage through long term customer satisfaction. Forget about Selling People Love to Buy but hate to be Sold A satisfied customer is the best business strategy of all possible strategies Companies that are highly customer oriented deliver faster, rush new products to markets & respond quickly to changing customer needsTrim. 1

Marketing Principles

CUSTOMER ORIENTATION Only two things people want to buy : Good Feelings & Solution to Problem Why Customers Quit ? 65% quit because of an attitude of indifference towards the customer by company, managers, employees Five best ways to keep customer coming back Be Reliable Be Creditable Be Attractive Be Responsive Be EmphaticTrim. 1

Marketing Principles

CUSTOMER ORIENTATION If management does not care about Customer orientation then employees wont either If your departments dont communicate customer needs among themselves, you can be sure they are not communicating with your customers either Take action immediately when you hear about customer problem. Never be too busy to follow up on your customers request Empower all employees to serve customers Never justify a problem, fix it instead Happy customers tell few Unhappy customers tell manyMarketing Principles

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CUSTOMER ORIENTATION Customer Orientation - A Checklist1. Letters from customers are answered before that of HO 2. Promises to customers are almost sacred for everyone in the company 3. Customer complaints are handled promptly with genuine concern rather than LEGALISTICALLY 4. Non-Marketing people (e.g. Design, Production etc.) visit customers periodically 5. Sales Staff feels proud of company & are treated with genuine respect in the companyTrim. 1

Marketing Principles

CUSTOMER ORIENTATION Customer Orientation - A Checklist6. Very high number of Repeat Buyers and each of them is proud to be associated with the company 7. Secretaries / Telephone Operator answer the call The boss is not in today, but may I help you ? rather than Please call back tomorrow. 8. Telephone calls of Key Customers are readily & quickly put through to the right person 9. Customer visit reports are always read by Senior executives and acted upon promptly 10. Everyone in the department knows the Top Ten CustomersTrim. 1

Marketing Principles

CUSTOMER ORIENTATION A Five Point Plan1. Know your Customer/s 2. Find Out what will Satisfy them Please them Delight them 3. Critically evaluate work practices, internal rules, systems & attitudes 4. Identify the changes needed 5. Work on people (including yourself) who can make it happenTrim. 1

Marketing Principles

CUSTOMER ORIENTATIONUNDERSTANDING THE CUSTOMER Alfa & Omega Of Marketing Who Is The Customer? Why Does He Buy ? What Is His Opinion ? What Are His Problems ? Current Customers Lapsed Customers Potential Customers

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Marketing Principles

CUSTOMER ORIENTATIONCUSTOMER Key Concepts Problem Solving Customer never buys a Product or Service but a Problem Solution Perception The Motif of Marketing In the market important is not objectively The Truth but only what customer subjectively regards as true Segmentation

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Marketing Principles

CUSTOMER ORIENTATIONCOMPETITOR ORIENTATION Competitor could be Direct Competition Future Competition From which competitor are we gaining ? Which market are we gaining and what is the reason for our gain in market share Are our competitor(s) vulnerable ? How can we exploit their weaknesses ?

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Marketing Principles

CUSTOMER ORIENTATIONHow can we differentiate w.r.t. Competition Product Superiority Packaging Convenience Better Availability Speed / Reliability of Delivery Better Technical / Purchasing Advice Better After-Sales Service Better IMAGE

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Marketing Principles

CUSTOMER ORIENTATIONA. How well do we know our market ? What do we need to know about our customers ? Who are they - Actual and Potential ? How many ? What do they currently buy ? At what Price ? For what purpose ? How often ? How much ? Why do they buy ? How do they buy ? How do they chose between competitors ?Trim. 1

Marketing Principles

CUSTOMER ORIENTATIONB. How well do we know our Competitors ? What do we need to know about our competitors ? Who are our competitors ? - Direct and Indirect What are their strengths & Weaknesses ? What are their current & likely future strategies ? What will they do ? And How will we react ? What will we do ? And how will they react ?Trim. 1

Marketing Principles

CUSTOMER ORIENTATIONC. How well do we know our Markets ? How can we get this information ? Quickly & Economically (a) From Current activities Sales Force visit/s Other Customer contact staff Published data Staff recruitment Sales record analysis Financial record analysisTrim. 1

Marketing Principles

CUSTOMER ORIENTATIONC. How well do we know our Markets ? How can we get this information ? Quickly & Economically (cont) (b) From Market Research Organize the research report from : Company staff Business school student shared surveys local researchersTrim. 1

Marketing Principles

CUSTOMER ORIENTATIOND. How well do we know our Markets ?What can we do with this information ? (a) Decide which customers to concentrate on : understand their needs provide satisfaction better than competition (b) Decide which products to concentrate on : from understanding the customers and competitors better (c) Decide how to better access & persuade customers By understand what information they need By understanding how/where do they want to buy ? By understanding their needs / acceptable priceTrim. 1

Marketing Principles

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