1.2.Basics of Marketing Management-final 2

8/4/2019 1.2.Basics of Marketing Management-final 2

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Marketing


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DABUR INDIA BRANDS
http://www.dabur.com/en/products/Health_Care/Digestive/PudinHara/


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HINDUSTAN UNILEVER BRANDS


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ORGANISATION

MarketingDepartment

HumanResourcesDepartment

ProductionDepartment

R& DDept.

FinanceDepartment

REVENUEGENERATIONDEPARTMENT


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MarketWhat is a market ? It is composed of...

People and/or organizations

with needs and wants,

the ability to buy,

the willingness to buy, and

We need to have all of these elementspresent before you have a market !

the authority to buy.


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MARKETING CONCEPTNeeds Wants Demands

Basic humanrequirements When specific objectsthat satisfy needs Are wants forspecific productsbacked by abilityto pay

Food,air,water,shelter An American needs

food but wantshamburger, colddrinks

Many people

want Mercedesbut only few areable and willingto buy one

Education,

entertainment

An Indian may need

food but wantspuri,bhaji,or roti,ricewith Dal tadkaWants are shaped byones society


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Industry

( a collection

of sellers)

Market

( a collection of buyers)

YOUNG AGE 14-30FOR PEPSI

YOUNG AGE 12-35years old for COKE

Goods/Services

Money

Information

Communication

Exchange and transaction process
http://www.virtualvender.coca-cola.com/ft/index.jsp?brand_id=155


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MARKETING DefinitionMARKETING: is directly responsible to generate income andcontribute to the growth of the business whereas other

management functions centre around cost and allocation of scarce resources.

Marketing is the main pillar to achieve business goals.

Marketing Management : According to Philip kotler marketing is asocietal process by which individuals and groups obtain what theyneed and want through creating, offering and freely exchangingproducts and services of value to each other.

AMA : Marketing is the process of planning and executing theconception ,pricing ,promotion ,and distribution of ideas,goods,and services to create exchanges that satisfyindividual and organizational goals.


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Marketing is a continuous process ascertaining consumer needsconverting them in to products /Brands or services and moving

them to final consumers to satisfy their wants ,needs, desires withemphasis on profitability through optimum use of resources

Suppliers

Rawmaterials Manufacturer

Marketintermediaries

Retailers

Vendors/stockiest

Customer

is

King

Value Delivery Chain


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Modern MarketingTransaction of ten entities:

1)Goods -television sets, plasma TVs, millions of hair dryers, toys

2)Services -Accountants ,Lawyers, engineers, doctors, managementconsultants

3)Experiences : water parks,caf-coffe day, climbing mount Everest

4)Events : olympics,20-20 cricket,filmfare awards

5)Persons : CEOs, Amitabh bachchan,shahrukh khan

6)Places : cities,states,regions,INCREDIBLE INDIA BY AAMIR KHAN

7)Properties : Intangible rights, real property (real estates), financialproperty -stocks bonds

8)Organizations : Philips- lets make things better..ICICI BANK -HUM HAINNA..9)Information : encyclopedias, magazines-times of India, internet10)Ideas: Every market offering includes basic idea say no to drugs",

avoid fatty foods


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Company Orientations towards Market Place

Six competing concepts:1.The production concept

2.The product concept

3.The selling concept

4.The marketing concept

5.The customer concept

6.The societal marketing concept


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TOPmgt

FRONT

LINEPEOPLE

CUSTOMERSTOPmgt

MIDDLEMGT

FRONT LINEPEOPLE

CUSTOMERS

MIDDLEMANAGEMENT

TRADITIONALORGANISATION

MODERN CUSTOMER ORIENTEDORGANISATION


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To use the marketing concept, businesses should:

Determine the needs of their customers(Market Research );

Analyze their competitive advantages(Market Strategy );

Select specific markets to serve(Target Marketing ),

and;

Determine how to satisfy those needs(Market Mix ).

Fundamental of Marketing Management


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Functions of marketing Management

1)Determine objectives- goals

2) Analysis of information- Market research ,MIS3) Marketing strategies: plans,campaigns,programmes4)Planning: new product, sales forecast5) organizing: ways & means to achieve objectives6) Directing : guidance to employees from marketing manager orVP/MD7)Staffing :recruitment,selection,development,training,compensationWhy RELIANCE,RANBAXY,PEPSI,COKE ,P&G are top companies

8) Implementation: organizing for marketing plan/strategy

9) Controlling : comparison of actual performance vs. standardobjective


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4 Ps of MarketingThe 4 P s of Marketing

Product: Market research, Quality, Design, Warranties,Slogans, Name, Logos, Packaging, Features, Sizes, Options,Services, Style, Returns.

Price: Based on Cost and Positioning (List price,Discounts, Allowances, Payment period, Credit terms).

Place: (distribution) how you will bring your producttogether with your customers.

Promotion: There are many promotional activities youcan undertake including: Advertising, Publicity, Sponsorship,Sales promotion, Personal selling, Direct Marketing, InternetMarketing.


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Market Research In order to manage the marketing functionsuccessfully, good information about the market isnecessary. Frequently, a small market researchprogram, based on a questionnaire given topresent customers and/or prospective customers,can disclose problems and areas ofdissatisfaction that can be easily remedied, ornew products or services that could be offeredsuccessfully.


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Marketing Strategy Marketing strategy encompasses identifying customergroups (Target Markets), which a small business canserve better than its larger competitors, and tailoring itsproduct offerings, prices, distribution, promotionalefforts and services towards that particular marketsegment

(Managing the Market Mix). A good strategy implies that

a business cannot be all things to all people and mustanalyze its markets and its own capabilities so as tofocus on a target market it can serve best.


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What is Market Segmentation?Defined: the process of dividing a market into meaningful,

relatively similar and identifiable segments orgroups.

Changing a heterogeneous group (market) intosmaller homogenous groups (market segments)

4 Criteria:

Substantiality

Accessibility Responsiveness

Identifiability andMeasureability


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Market Segmentation

Why do we segment markets ? To do abetter job of meeting consumer needs,and to be consistent with the marketingconcept.Consider Coca-Cola Co.

Before 1960: Since 1960:

CokeCoke, Diet Coke, Sprite,Cherry Coke, Caffeine-FreeCoke, Citra, Minute Maid,Fruitopia, etc.


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Bases of Segmentation

Geographic : grouping potential buyersaccording to location (ex: most retail)Demographic : grouping potential buyersaccording to age, gender, income, ethnicbackground, family characteristics, etc.(ex: many clothing stores, movies)Psychographic : grouping potentialbuyers according to personality, motives,and lifestyles


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Bases of Segmentation (continued)

Benefit segmentation : groupingpotential buyers according to the benefitsthey seek from products. It groups

according to product-related needs. (ex:Head and Shoulders)Usage-rate (type of customer)segmentation: grouping potentialcustomers by the amount they would buy(ex: travelers, banks)


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SegmentationIdentify segments

TargetingSelect segments

Positioning

Create competitiveadvantage

Marketing resources are focused to better meet customersneeds and deliver more value to them

Customers develop preference for brands that better meettheir needs and deliver more value

Customers become brand/supplier loyal, repeat purchase,communicate favorable experiences

Brand/supplier loyalty leads to increased market share and

creates a barrier to competition

Fewer marketing resources needed over time to maintainshare due to brand or supplier loyalty

Profitability (value to the firm) increases

How STP Adds Value To A Firm?


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Target market - a homogenous segment

that your organization has chosen topursue.Niche - one segment (usually small) of

an overall market.Mass market - an entire market,unsegmented (ex: Wal-Mart)

For a segmentation basis to work, itneed to based on a set of attributes thatare meaningful.


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Objectives of Segmentation

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Determine how much to charge(price discrimination):tickets, laptops, books...

price sensitivity

Design advertising images

attitudes, lifestyles, media habits(cluster analysis)

Identify targets for a direct promotion programchoice probability(choice model)

Help the design of new products: cell phonesutilities for different features/functions (conjoint analysis)


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A Note on Positioning

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Positioning involves designing an offering so thatthe target segment members perceive it in adistinct and valued way relative to competitors.Three ways to position an offering:

1.Unique (Only product/service with AVM)

2.Difference (More than twice the *feature+ vs.*competitor+)

3.Similarities (Same functionality as *competitor+;

lower price)

What are you telling your targeted segments?


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4 Cs of Marketing

Customer Benefit : Dettol Soap- TOTAL PROTECTION

J W STANTON: A PRODUCT IS A COMPLEX OF TANGIBLE ANDINTAGIBLE ATTRIBUTES

Customer Convenience : crocin to get relief from pain

Customer Cost : substitution ,DYNAMIC & SUBJECTTO CHANGES

Customer Communication :Personal selling,Advertising,publicity,sales promotion,public relations,internet,WORD OF MOUTH PROMOTION


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P&G PRODUCTS CATEGORY

BRANDS OF AUTOMOBILES


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BRANDS OF AUTOMOBILES


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In order to conduct a successful marketing program youmust be able to answer the following questions:

1. What type of business are you in (manufacturing, merchandising orservice)?

2. What is the nature of your product(s) or service(s)?3. What market segments do you intend to serve? (Describe the age,

sex, income level, and life-style characteristics of each marketsegment.)

4. What strategies will you use to attract and keep customers?5. Product6. Price7. Place8. Promotion

9. Persuasion (personal selling)10. What is your unique selling proposition (USP)?11. Who is your competition, and what will you do to control your share

of the market?12. How are you going to build and support your product?


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CUSTOMER IS KING


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Marketing as a philosophy

1.Customer is king2.Revenue generation3.Large scale employment4.Research & innovation5.Social process6.Special efforts Consumer behavior7.Alternative of choices, redistribution of income8.Environment scanning, forecastingtechniques,SWOT ANALYSIS

9.Creates TIME, PLACE,POSSESSION UTILITY10.Mass marketing provides much needed revenues tothe Government aspirin, Colin


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Objectives of Marketing

1.To satisfy the customers2.To improve quality of life of people

3.To attain higher sales

4.To create good image

5.To work out appropriate marketing mix

6.To increase business profits


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OPEN HAPPINESS-COKE YOUNGISTAN PEPSI

THANK YOU

Documents

1.2.Basics of Marketing Management-final 2