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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GREAT WORDS OF MARKETING

1.

2.

3.

The purpose of a company is to create a customerThe only profit center is the customer. A business has twoand only two basic functions: marketing and innovation. Marketing and innovation produce results: all the rest are costs. The aim of marketing is to make selling unnecessary.
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GREAT WORDS OF MARKETING

4. While great devices are invented in the Laboratory, great products are invented in the Marketing department. 5. Marketing is too important to be left to the marketing department.

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Marketing = ?
Marketing Marketing

is the sum of all activities that take you to a sales outlet. After that sales takes over. is all about creating a pull, sales is all about push.

Marketing
product price place

is all about managing the four Ps

promotion

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Marketing Mix Tools

Marketers use numerous tools for desired responses from their target markets. These tools constitute a marketing mix: Marketing mix is the set of marketing tools that the firm uses to pursue its marketing objectives in the target market. Further it can be classified into 4 Ps Ps of marketing: product, price, place, and promotion.
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The 4 Ps & 4Cs

Marketing Mix Product Customer Solution Convenience Place

Price Customer Cost

Promotion Communication
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Difference Between - Sales & Marketing ?

Sales
trying to get the customer to want(to purchase) what the company produces

Marketing
trying to get the company produce what the customer wants

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Selling focuses on the needs of the seller

Marketing on the needs of the buyer

Selling is preoccupied with the sellers need to convert his product into cash. Marketing with the idea of satisfying the needs of the customer by means of the product and the whole cluster of things associated with creating, delivering and finally consuming it.

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The marketing concept rests on four pillars: target market, customer needs, integrated marketing, and profitability.

The selling concept takes an inside-out perspective. It starts with the factory, focuses on existing products, and calls for heavy selling and promoting to produce profitable sales.
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The marketing concept takes an outside-in perspective. It starts with a well-defined market, focuses on customer needs, coordinates activities that affect customers, and produces profits by satisfying customers.
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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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Core Concepts of Marketing

Based on : Needs, Wants, Desires / demand

Products, Utility, Value & Satisfaction Exchange, Transactions & Relationships Markets, Marketing & Marketers.

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In order to understand Marketing let us begin with the Marketing Triangle

Customers

Company

Competition

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Who is a Customer ??
CUSTOMER IS . . . . .
Anyone who is in the market looking at a product / service for attention, acquisition, use or consumption that satisfies a want or a need

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Customer

CUSTOMER has needs, wants, demands and desires Understanding these needs is starting point of the entire marketing These needs, wants arise within a framework or an ecosystem Understanding both the needs and the ecosystem is the starting point of a long term relationship

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Customers - Problem Solution

As a priority , we must bring to our customers WHAT THEY NEED

We
Or

must be in a position to UNDERSTAND their problems

in a new situation to give them a chance to AVOID the problems

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Customer looks for Value

Value

= Benefit / Cost

Benefit

= Functional Benefit + Emotional Benefit

= Monetary Cost + Time Cost + Energy Cost + Psychic Cost

Cost

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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
Other

policy ?

media substitutes ?
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Why Market Leaders Suffered ?

HMT
HLL

vs. Titan

vs. Nirma vs. Honda boom, then bust and now resurgence

Bajaj

Dot.com 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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The Give and Get of Marketing

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What Changed in Marketing

Old Economy
Organize by product units Focus on profitable transactions Look primarily at financial scorecard Focus on shareholders Marketing does the marketing Build brands through advertising Focus on customer acquisition No customer satisfaction measurement Over-promise, under-deliver

New Economy
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 and retention rate Under-promise, over-deliver

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Are Banks truly marketing-savvy and customer - centric?

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Myth 1 The larger the range of products, the more customer-centric I am.

Mythbuster The range of products has emerged 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 3 Launch 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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Myth 4 The only way to get a customer is from competition.

Mythbuster Customers are not only present where competition is.

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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

Mythbuster Selling focuses on the needs of the seller; marketing on the needs of the buyer.

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Myth 7 In the absence of relationships trust builds financial brands

Mythbuster Trust is not a differentiator at all it is the very minimum that the customer expects!!

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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

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