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DISCLAIMER
These notes are for the sole purpose of
understanding the concepts of marketingand are to be used for class room purposesonly. The logos of certain manufactures usedare owned by their respective owners andunauthorized use of them may lead to legalpersecution.
This presentation also may containcopyrighted material which on no accountshould be reproduced / reprinted in anyform without permission.
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marketingESSENTIALS
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Ranjan Paul
Mobile: +91 98919 84804
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Course Goals
To outline the marketing function and its role within acorporations business strategies, also hopefully generating apassion for the Marketing discipline and empowering you toevaluate Marketing as a possible career choice
To introduce you to marketing strategyand to the elementsof marketing analysis: customer analysis, company analysis,and competitor analysis
To familiarize you with the elements of the marketing mix(product, pricing, promotion, and distribution strategies) andenhance your problem solving and decision making abilities inthese operational areas ofmarketing tactics
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Course Books
Marketing Management A South Asian
Perspective by Kotler, Keller, Koshy & Jha
Marketing Management Arun Kumar & N.
Meenakshi
Other Readings
Business Newspapers & Magazines
Research on the Internet
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Session Questions
Why is marketing important?
What is the scope of marketing?
What are some fundamental marketingconcepts?
How has marketing management changed?
What are the tasks necessary for successful
marketing management?
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Scope & Nature
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MarketingMarketingScope &Nature
Good Marketing is No Accident
The roaring successof four-wheeler Tata
Ace, in a marketearlier dominated bythree-wheeler load
carriers, was due to adeep understandingof the market needs
and customerrequirements.
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What is Marketing?
Marketing is an organizational functionand a set of processes for creating,
communicating, and delivering value
to customers and for managingcustomer relationshipsin ways that benefit the
organization and its stakeholders.
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What is Marketing Management?
Marketing management is the
art and scienceof choosing target markets
and getting, keeping, and growing
customers throughcreating, delivering, and communicating
superior customer value.
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Selling is only the tip of the iceberg
There will always be a need for
some selling. But the aim of marketingis to make selling superfluous. The aimof marketing is to know and understandthe customer so well that the product orservice fits him and sells itself. Ideally,marketing should result in a customerwho is ready to buy. All that should be
needed is to make the product orservice available.
Peter Drucker
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What is Marketed?
Goods
Services
Events & Experiences
Persons
Places & Properties
Organizations
Information
Ideas
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Core Marketing Concepts
1.1.Needs, Wants, and DemandsNeeds, Wants, and Demands
2.2.Products and ServicesProducts and Services3.3.Value, Satisfaction and QualityValue, Satisfaction and Quality4.4.Exchange, Transactions andExchange, Transactions and
RelationshipsRelationships5.5.MarketsMarkets
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What is a Market?
The set of actual and potential buyers of a
product.
These people share a need or want that
can be satisfied through exchange
relationships.
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This Is a Need
Needs - state of felt deprivation including
physical, social, and individual needs.
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This Is a Want
Wants - form that a human need takes, as
shaped by culture and individual
personality.
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This Is Demand
Demand
Wants Buying Power
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Need / Want Fulfillment
Needs and Wants Fulfilled through a Marketing Offer:
Some combination of products, services, information, or
experiences offered to a market to satisfy a need or want.
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A Simple Marketing SystemMarketingScope &Nature
Key Customer Markets
Consumer Markets
Business Markets
Global Markets
Nonprofit/ Government Markets
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Value and Satisfaction
If performance is lower than expectations, satisfaction is low.
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Functions of CMOs
Strengthening the brands
Measuring marketing effectiveness
Driving new product development based oncustomer needs
Gathering meaningful customer insights
Utilizing new marketing technology
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Improving CMO Success
Make the mission and responsibilities clear
Fit the role to the marketing culture and structure
Ensure the CMO is compatible with the CEO
Remember that show people dont succeed
Match the personality with the CMO type
Make line managers marketing heroes
Infiltrate the line organization
Require right-brain and left-brain skills
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Core Marketing Concepts
Needs, wants, anddemands
Target markets,
positioning, segmentation Offerings and brands
Value and satisfaction
Marketing channels
Supply chain
Competition Marketing environment
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Segmentation and Target
Marketing
Market Segmentation:Divide the market intosegments of customers
Target Marketing:
Select the segment tocultivate
#1 #2
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Marketing management
process
Analysis/Audit- where are wenow
Objectives -where do we
want to be?
Strategies - which way is best?Tactics - how do we get there?(Implementation - Getting there!)Control - Ensuring arrival
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The marketplace isnt what it used to
be
Information technology
Globalization
Deregulation
Privatization
Competition
Convergence
Consumer resistance
Retail transformation
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New Consumer Capabilities
A substantial increase in buying power A greater variety of available goods and
services
A great amount of information aboutpractically anything
Greater ease in interacting and placing andreceiving orders
An ability to compare notes on products andservices
An amplified voice to influence public opinion
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Company Orientations
Production
Selling Marketing
Product
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Holistic Marketing Dimensions
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The Four PsMarketingScope &Nature
Elements of a Modern Marketing
System
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The Marketing Concept itself
has evolved
1) Catering to the customer
2) Anticipating the customer2) Anticipating the customer
3) Leading the customer3) Leading the customer
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Internal Marketing
Internal marketing is the task of hiring,
training, and motivating able employees
who want to serve customers well.
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Performance Marketing
Financial
Accountability
Social
Responsibility
Marketing
Social Initiatives Corporate social marketing Cause marketing
Cause-related marketing Corporate philanthropy Corporate community
involvement Socially responsible
business practices
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Why is marketing planning
necessary?
Systematic futuristic thinking by management
better co-ordination of a companys efforts
development of performance standards forcontrol
sharpening of objectives and policies
better prepare for sudden developments
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Transactions vs. Relationship
Orientations
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Transaction Modeling for Marketing
Transaction modeling can be used for a largenumber of marketing applications, fromresponse modeling and acquisition performancemodeling, product cross-sell/up-sell, attritionprediction and life-event detection to revenueenhancement and affinity partner selection.
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Response modeling
Transaction data can be used to predict which cardholders willrespond to marketing campaigns. Both general responder andspecific campaign models can be built.
From the data such things as cardholder gender, age, pet-ownership, hobbies, travel habits, family size andcomposition, price sensitivity, quality sensitivity and loyaltycan be derived.
This is very valuable in terms of executing highly targeted andhigh-margin marketing campaigns.
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Merchant profiling
A great deal can be understood about a merchant byanalyzing who buys its products, where they buy them, howmuch they spend and how often merchandise is purchased.
This data is obviously very valuable both to financialinstitutions and to merchants themselves, and provides allkinds of marketing opportunities.
It is also possible to compare merchants to their competitorsto evaluate possible cross-marketing campaign opportunities.
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Attrition prediction
Transaction data tracks customers behavior and
can therefore be a very powerful tool to create
models to predict attrition, just as it can be used
to predict bankruptcy and fraud.
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Marketing Management Tasks
Develop market strategies and plans
Capture marketing insights
Connect with customers
Build strong brands
Shape market offerings
Deliver value
Communicate value
Create long-term growth
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The Next Wave
New Paradigms in
Marketing
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Social Media
Social media describes the online technologies and practices that people use to share opinions, insights,experiences, perspectives and media itself. Social media can take many different forms, including text,images, audio, and video. These sites typically use technologies such as blogs, message boards, podcasts,wikis, and vlogs to allow users to interact. Source: Wikipedia
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Word of Mouth Marketing
WOMM: Umbrella term
Buzz marketing Special hook, event, promotion. AquaTeenHunger Force Boston
Bomb Scare
Viral marketing Branded material, websites, widgets, bligets, videos, utilities,
collaboration tools etc. that sneezers spread. ParkRidge47, VoteDifferent
Influencer marketing Identifying and finding the influencers
Evangelist marketing Turning most loyal customers into citizen marketers
Street marketing Interacting at popular offline places like Buzz Oven
Stealth / Undercover marketing Bree, lonelyGirl15
Source:
Justin Kirby, & Paul Marsden (2006). Connected marketing. Oxford, UK: Butterworth-Heinemann. 198
YouTube
Aqua Teen
Buzz Oven
Bree
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Widget Marketing
Cool plug-n-play things foryour sidebar
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DefinitionMarketing centered around obtaining customer consent to
receive information from a company. Information
Coined and popularized by Seth Godin,permissionmarketing is the opposite of traditional interruptionmarketing. Permission marketing is about building anongoing relationship of increasing depth with customers.In the words of Seth Godin, "turning strangers into friends,and friends into customers."
Permission marketing has been hailed as a way formarketers to succeed in a world increasingly clutteredwith marketing messages.
Source: http://www.sethgodin.com/permission/
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Definition
Unconventional marketing intended to get maximum results
from minimal resources.
Information
Coined by Jay Conrad Levinson, guerilla marketing is moreabout matching wits than matching budgets. Guerillamarketing can be as different from traditional marketing asguerilla warfare is from traditional warfare. Rather thanmarching their marketing dollars forth like infantry divisions,guerilla marketers snipe away with their marketing resourcesfor maximum impact.
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New Paradigm
Democratization of 4Ps paradigmCitizen brandingCollective collaborationCollective risk sharingCollective product innovationCollective IP ownership
Citizen marketers will sell remarkable ideas Innovators should adopt the 1% rule
If you dont find the sneezers or connectors, the 80/20% rule wont matter
Work backwards Build your brand around your idea first. If the community you are targeting does not
coalesce and rally around the idea, continuing to build the product is irrelevant
Create your own blue ocean If you play it safe and go by the rules of your industry, value chain, and business model
youre dead! Most industries and markets are saturated and highly concentrated.
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Its About Social Behavior
Its not about a cheaper product or your idea. Try to change customerbehavior.
Its not about better coffee its about the place
I am not looking for a drill bit I need to make a hole Its not about the hog, i ts about a lifestyle Its not about the sound its about how it makes me feel Its not about the sound its about being hip Its about my space
Its about my video
Its about my opinion Its about the experience
Its about your choices, places, and time Examples
Apple, Starbucks, JetBlue, MySpace, Harley-Davidson, Tivo, Stew
Leonards, Threadless
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Implications
Reached the tipping point The static web maturing Monologue marketing out
Live Web (a/k/a Blogosphere) is makinginformation transparent Word travels fast People are more likely to act on a peers
recommendation by factor X Marketing is a reflection of social paradigms The new social media and networks changing
customer expectation and behavior
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TRENDS
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Changes in Consumer
Demographics
MaturityPolarization: some a lot and others little
Value orientation
Skepticism
Disloyalty
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Changes in Consumer
Technology: Products and services will havemuch more technology and will becommercialized in more technological way
Product and brand (Product loses out totechnological factor)
Publicity: (From TV to Internet)
Prices: Mixture of strategies
MarketingScope &NatureChanges in Consumer
Competition Companies have to understand themselves: Look for loyalty
Sales force in reconstruction: specialized and with more
technology
Channels of distribution: vertical integration and new roles
Prices: when the competition is concentrated, the consumer
pays
Products and brands: companies tend to innovate less when
they are alone, but they have learned that the best way to
stay alone is to innovate
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Emerging Consumer Markets in
the 21st Century
Electronic Articles (HDTV, WebTV, digitalphotography)
In their free time, consumers will look for
intense experiences that relieve stress
(rafting, rappel)
Allan J. Magrath
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Emerging Consumer Markets
in the 21st Century
Health as a National Pastime (nutrition,diets, personal care)
Products and Services anti-ageing (Creams,treatments)
Sport Equipment and Articles (Golf,Mountain Climbing, Tennis)
Allan J. Magrath
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Emerging Consumer Markets in
the 21st Century
Caring for the environment (recyclable
packages) Outdoor articles ( garden, patio, swimming
pool)
Allan J. Magrath
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Marketing In The Indian
Context
Circa: 2011
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ET~Jun14,2001
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Internet Usage and Population
Statistics
YEAR Users Population % Pen. Usage Source
1998 1,400,000 1,094,870,677 0.1 % ITU
1999 2,800,000 1,094,870,677 0.3 % ITU
2000 5,500,000 1,094,870,677 0.5 % ITU
2001 7,000,000 1,094,870,677 0.7 % ITU
2002 16,500,000 1,094,870,677 1.6 % ITU
2003 22,500,000 1,094,870,677 2.1 % ITU
2004 39,200,000 1,094,870,677 3.6 % C.I. Almanac
2005 50,600,000 1,112,225,812 4.5 % C.I. Almanac
2006 40,000,000 1,112,225,812 3.6 % IAMAI
2007 42,000,000 1,129,667,528 3.7 % IWS
2009 81,000,000 1,156,897,766 7.0 % ITU
2010 81,000,000 1,173,108,018 6.9 %
http://www.internetworldstats.com/asia/in.htm
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Cellular Phone Story
City/Circle May'2010 Jun'2010% Growth overprevious month
All Metros 55,827,786 57,535,005 3.06%
A' Circle 148,719,464 152,757,251 2.72%
B' Circle 171,258,663 175,786,096 2.64%
C' Circle 68,489,798 70,507,810 2.95%
All India 444,295,711 456,586,162 2.77%
http://www.coai.com/statistics.php
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Source: SIAM
Automobile Domestic Sales Trends(Number
of Vehicles)
Category 2003-04 004-05 2005-06 2006-07 2007-08 2008-09 2009-10
Passenger
Vehicles9 02 ,09 6 1 ,06 1, 572 1 ,14 3,0 76 1, 379 ,97 9 1, 549 ,88 2 1, 55 2, 703 1 ,94 9, 776
Commercial
Vehicles260,114 18,430 351,041 467,765 490,494 384,194 531,395
Three
Wheelers284,078 07,862 359,920 403,910 364,781 349,727 440,368
Two
Wheelers5 ,3 64, 249 , 20 9, 765 7 ,05 2,3 91 7, 872 ,33 4 7, 249 ,27 8 7, 43 7, 619 9 ,37 1, 231
Gra ndTotal 6 ,8 10 ,5 37 7 ,8 97 ,6 29 8 ,9 06 ,4 28 1 0,12 3,98 8 9 ,6 54 ,4 35 9 ,7 24 ,2 43 1 2,29 2,77 0
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References:
Marketing Management A South Asian Perspective 13the ByKotler, Keller, Koshy, Jha
Principles of Marketing 11the Kotler & Armstrong
Mckinsey Global Institute
SIAM
Marketing Whitebook 2006, Business World
Economic Times
Mint
Times of India
Multiple Resources on Internet