Download ppt - 1. Marketing - Definition & Concepts

Trim. 1 Marketing Principles

MARKETING PRINCIPLES

• Marketing – Definitions & Evolution• Customer Orientation • Marketing Mix – 4 P’s• Product Life Cycle• Marketing Environment• Market Research• Marketing Information Systems• Demand Forecasting• New Product Development• STPD / SWOT Analysis



Reference Books• Marketing Management – Philip Kotler• Basic Marketing – Perrault & McCarthy

• Marketing Management – Planning,

Implementation & Control – V.S.Ramaswamy & S.Namakumari

• Marketing Management – Rajan Saxena



Reference Books• Marketing Management – Philip Kotler• Basic Marketing – Perrault & McCarthy

• Marketing Management – Planning,

Implementation & Control – V.S.Ramaswamy & S.Namakumari

• Marketing Management – Rajan Saxena


MARKETING - DEFINITION & CONCEPTS

• “Marketing Starts & Ends with the Customer”• “Marketing is so basic that it can’t be considered

a separate function …

It is the whole business seen from the Customer’s Point of View…”

…. Peter Drucker• “The purpose of Marketing is

to make Selling Superfluous”

…. Peter Drucker


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 Cost”


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”


SALES & MARKETING

• What is the Difference between Sales & Marketing

Sales :

Marketing :

Production Selling Consumer

Consumer Need

Evaluation

Integrated Marketing

Effort

Consumer

Satisfaction

Achievement of

Organisation Goals

FEEDBACK


SALES & MARKETING

• How Marketing Evolves :

Demand Exceeds Supply

SellingProcess

Important

Marketing aSubsidiaryFunction

IntegratedComprehensive

Role for Marketing

Production

Era

OutputExpanded

Sales

Era

Supply Equals Demand

Marketing

Department

Era

Supply Exceeds Demand

Marketing

Company

Era

Supply Exceeds Demand


THREE C’s OF MARKETING

• The Marketing Triangle :

• “Satisfying the needs of the CUSTOMER

Better than the COMPETITION

and profitable to the COMPANY”

Customer

Company Competitor


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 demands


MARKETING CONCEPT

• “It Means An Organisation Aims All It’s Efforts At Satisfying The Customers At Profit”

CUSTOMER

MARKETING

SATISFACTION

CONCEPT

PROFIT – AS OBJECTIVE

TOTAL COMPANYEFFORTS


INTEGRATED MARKETING

• Customer should always be the FOCUS

Customer

Marketing

Sales

R & DPurchase

Fin

ance

ProductionHuman

Resources

Distrib

ution


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 Strategy”



• 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 needs”



• 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 Emphatic



• If management does not care about Customer orientation then employees won’t either

• If your departments don’t 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 customer’s request

• Empower all employees to serve customers• Never justify a problem, fix it instead• Happy customers tell few

Unhappy customers tell many



• 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 company



• 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 Customers



• 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 happen



UNDERSTANDING 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



CUSTOMER – 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



COMPETITOR 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 ?



How 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”


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 ?



B. 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 ?



C. 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 analysis



C. 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 researchers



D. 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 price



E. How well do we know our Markets ?

What can we do with this information ?

Decide how to manage our Marketing activities better :

• Market Focus• Product development• Pricing policy• Distribution strategy• Advertising & Sales Promotion Strategy• Sales Force


BASIC QUESTIONS IN MARKETING

Key Strategic Questions

Where are we now ?

How will we get there ?

Where do we want to go ?


Where Do We Want to Go ?

Corporate Goals

What business are we in ?

How Big ?

How Profitable ?

What Growth ?

How will we get there ?

Financial Goal