Marketing Management

Why do we need to learn marketing management?

Can you market these products easily ?

How about these products?

Is there any difference in types of these products?

How about Marketing them?

How about their films ?

How about the products they endorse ?

Why do we need to market..?

Singapore

Malaysia

Sydney

Mumbai

Beijing

Paris

How about these?

Learning Process of Marketing Facilitate Marketing of

Products Persons Services Places .. ..

Let us know more about marketing Process

There are

10 offerings which can be marketed

Can you name them?

Goods or Products

Services

Experiences

Events

Properties

Organizations

information

ideas

PERSONS

PLACES

PERSONS GOODS

PROPERTIES

ORGANISATIONS SERVICES
MARKETING

INFORMATION EXPERIENCES

PLACES EVENTS

IDEAS

In group of 3 write

5 examples of each of these offerings

These can be marketed if there is a demand for them ?

What is Demand?

NEGATIVE DEMAND

NO DEMAND

LATENT DEMAND DEMAND STATES

DECLINING DEMAND

DEMAND STATES

IRREGULAR DEMAND

FULL DEMAND

OVERFULL DEMAND

Unwholesome demand

Can you name a category of products for which your negative feelings have softened? What precipitated this change?

We need some market to create a demand

Need, Wants, Demands

Products

Value, Cost, Satisfaction

Exchange, Transaction, Relationship

Market

Marketing & Marketers

Core Concept Of Marketing

Human Needs
It is a state of felt deprivation of some basic satisfaction.

Wants
These are desires for specific satisfiers of these deeper needs.

Demands
These are wants for specific products that are backed by an ability & willingness to buy them.

Products
These are anything that can be offered to satisfy a need or a want. The importance of physical product lies not so much in owing them as in obtaining the services they render.

 Vehicle of services

1. Person. 2. Place. 3. Activity. 4. Organization. 5. Ideas.

Value, Cost & Satisfaction

1. Product value 2. Service value 3. Personnel value 4. Image value 1. Monitory cost 2. Time cost 3. Energy cost 4. Psychic cost

Exchange, Transactions & Relationship Exchange is one of the four ways people can obtain products. a. Self production. b. Coercion. c. Begging. d. Exchange. Exchange is the act of obtaining a desired product from someone by offering something in return.

 1. 2. 3. 4. 5.

Five conditions of exchange At least two parties. Each party has something that might be of value to the other party. Each party is capable of communication & delivery. Each party is free to accept or reject the offer. Each party believes it is appropriate or desirable to deal with the other party.

Transactions These are basic unit of exchange. A transaction consists of a trade of values between two parties.

1. 2. 3.

Dimensions of transactions
At least two things of value. Agreed upon conditions. A time of agreement. A place of agreement.

4.

Transaction v/s Transfer

Markets It consists of all potential consumers sharing a particular need or want who might be willing & able to engage in exchange to satisfy that need or want. Marketing It means Working with markets to actualize potential exchanges for the purpose of satisfying human needs & wants. Marketer It means someone seeking a resource from someone else & willing to offer something of value in exchange.

Consumer

Nonprofit/ Government

Types of Markets

Business

Global

Can we apply the same marketing process to these markets ?

Marketing Concepts
Competition
Target Markets and Segmentation

Marketers & Prospects

Products or Offering

Marketing Concepts
Marketing Environment

Needs, Wants & Demand

Supply Chain

Marketing Mix

Marketing Concepts
Marketing Channels

Exchange & Transactions

Relationship & Network

Value and Satisfaction

MARKETING MIX

PLACE
PRODUCT Variety Quality Design Features Brand Packing Sizes Services Warranties Returns

PRICE PROMOTION

List price Discounts Allowances P. Period Credit terms

Sales Advertising Sales force P.R,S Direct mktg

Channels Coverage Locations Inventory Transport

Four P,s
PRODUCT PRICE PLACE PROMOTION

Four C,s Customer Solutions

Customer Cost

Customer Convenience
Comm with Customer

What should a manufacturer does to strengthen 4 Cs for each of 4 Ps in case of

product

Selling
Competing Concepts

Production
Marketing

Societal Marketing

Production Concept

Concentrate on achieving high production efficiency, low cost & mass distribution Consumers prefers inexpensive items in Developing countries Used also in expanding Market Over Populated Counties-

Inexpensive Toys, electronics

The product concept holds that consumers will favor those products that offer the most quality, performance or innovative features. Managers in these product oriented organizations focus their energy on making superior products & improving them over time.

Product Concept

Consumers Favors quality, performance or innovative features Managers focus on producing superior Products Little or No Customer Input Rarely Examine Competitor's Product Management commit Better-mousetrap Leads to marketing Myopia

HMT Watches

Marketing Myopia a)marketing myopia means crooked perception of marketing and short sightedness about business. b)Excessive attention to the production or product or selling aspects at the cost of customer and his actual needs,creates a myopia. c)it leads to wrong or inadequate understanding of the market and hence failure in the market place. d)It also leads to a wrong understanding or inadequate understanding of the very nature of the business thereby affecting its future. e)Since The business keep changing with times but the basic fundamental characteristics related to human need which business seek to serve amd satisfy through its products should be maintained. f)they should define their business according to their fundamentals and not in the terms of the products and services manufactures at given point of time. E.g. movie makers should define their business as entertainment.

The selling concept holds that consumers, in left alone, will ordinarily not buy enough of the organizations products. The organization must therefore undertake an aggressive selling & promotion effort.

Selling Concept

Consumers & businesses if left alone, will not buy enough Undertake aggressive Selling & Promotion

Consumers shows buying inertia until coaxed

Many use it at the time of over capacity or Competition CONSUMER DURABLES

The marketing concept holds that the key to achieving organizational goals consists in determining the needs & wants of target markets & delivering the desired satisfaction more effectively & efficiently than competitors.

Marketing Concept

More effective than competitors in creating, Delivering, and communicating superior customer Value Putting People First

Fulfilling Buyers Needs

Start

focus

means

ends
Profit through Selling Concept Sales Volume

Factory

Products

Selling & Promotion

Target market

Customer needs

Integrated marketing

Profit Through Marketing Concept Customer satisfaction

Customer Concept

Starting Point

Focus

Means

Ends

Individual customer

Needs & values

One To One Mktg Integration

Growth through Customer Share/ Loyalty Lifetime/ Value

Marketing
1.Marketing starts with the customer ,present and potential and focuses constantly on the need of the buyer.Buyer is the centre of the business universe.activities follow the buyer and his needs. 2.Emphasis on identification of a market opportunity and fulfilling the needs of the customer. 3.Seeks to convert customer needs into products.

Selling
1.Selling starts with the seller.It focuses on the need of the need.Seller is the centre of the business universe.activities starts with sellers existing products. 2.Emphasis on saleable surpluses available within the corporation. 3.Seeks to convert productinto cash,concerns itself with the tricks and techniques of getting the customers to buy the product available with the salesman in exchange of cash. 4.View business as a goods producing process. 5.Overemphasis the exchangeaspect without caring for the value satisfaction inherent in the exchange. 6.The firm makes the product first and then figure out how to sell it and make profit.

4.View business as customer satisfying process. 5.It is concern with the value satisfaction customer should get from the exchange. 6.The firm makes a total product offeringthat would match and satisfy the identified needs of the customers. 7.Adopting more innovative technology to provide better value to the customer. 8.If the enterprise has a customer orientationconcerned more about his needs,and make genuine efforts to satisfy those needs ,then it is practising

7.Emphasis on staying with the existing technology and reducing the cost of production. 8.If the enterprise has internal orientation concerned more about itself and its products and the need to dispose off its products,then it is practicing Selling.

Marketing 9.Consumer determines price;price determines cost.

Selling 9.Costs determine price.

10.They are seen as vital services to be provided to the customers keeping in mind their convinience. 11.In firms practising marketing,marketing is the central function of the business;the entire company is organised around the marketing function. 12.Marketingviews the customer as the very purpose of the business;sees business from point of view of the customer.

10.Transportation,storage and other distribution functions are merely a part of production function. 11.In firms practising selling,production is the central function of the business.

12.Selling views the customer as the last link in the business.

Features of Marketing Concept

1.Consumer Orientation;Consumer orientation places consumer at the beginning as well as at the end of the business cycle.Consumer becomesthe focal point of the business.Organisations should strive,adapt and alter products to keep pace with the ever changing customer preferences and desires.

2.Long term profitability;Customer satisfaction,which is a major theme of the marketing concept does not preach that a firm must generate consumer and forget the other goals of the organisation.Instead it should treat customer as a pathway to the attainment of all the goals of the organisation.And ,inthis process,the Organisational goals including profits are automatically realised.The Market Concept never suggests that profit is unimportant to the firm but are essential for the survival and growth of any business.

3.Integrated Management action;All Organisational departments should be well coordinated keeping marketing as the pivot.Lack of coordination between different departments or function can hamper the performance of the organisation.The marketing department should be well coordinated with other departments like R&D,finance,personnel and manufacturing. The organisations that do not practice integrated management,the departments are preoccupied with the optimisation of their specific activities thus effecting the overall result. e.g. the engineering department may create a substandard product to save cost of production.

Who benefits from the Marketing Concept 1.The Organisation;The organisation keep itself in the pace with the times and through contineous marketing audit,market research and consumer testing.It is quick to respond to changes in the buyer behaviour,rectify its products and give great importance to planning,research and innovation.
2.The Consumer;As the organisation improve its products,it benefits its consumers as they get better quality,low price,improved/new products and ready stocks at convinient places. 3.The Society;Since the Organisations are producing products as per the consumers so it ensures that the societys economic resources are channelised in the right direction.It also creates entrepreneurs and managers in the given society.It improves the standard of living of the people and accelerates economic development of the society as a whole.

Traditional Organisational chart

TM

CUSTOMERS

MM

FRONT LINE PEOPLE MM Modern Organisational chart

FRONT LINE PEOPLE

TM

CUSTOMERS

Factors leading to Marketing Concept

Sales decline Slow growth

Changing buying patterns

Increasing competition Increasing marketing expenditure

Societal Concept

To determine the needs, wants and interest of the Target Market and deliver the desired Satisfaction that preserves the society's well being

Environment deterioration Resource Shortages Population Growth Unhealthy Food

CUSTOMER SATISFACTION STILL SUBSERVIENT GOAL IGNORES SOCIAL AND ENVIRONMENTAL GOOD SUPRESSES INNOVATION

The societal marketing concept holds that the organizations task is to determine the needs, wants & interests of target markets & to deliver the desired satisfaction more effectively & efficiently than competitors in a way that preserves or enhances the consumers & societys well being.

Marketing & Other Functions

A) Marketing as an Equal Function

PRODUCTION

FINANCE

MARKETING

HUMAN RESOURCE

B) MARKETING As a most Important Function

PRODUCTION

FINANCE

MARKETING

HUMAN RESOURCE

C) MARKETING AS THE MAJOR FUNCTION

PRODUCTION

MARKETING
HR
FINANCE

D)CUSTOMER AS THE CONTROLLING FUNCTION

CUSTOMER
HR

E) CUSTOMER AS CONTROLLING& MKTG AS A INTEGRATIVE FUNCTION

P
MKG
MKG MKG

CUSTOMER
MKG

HR

Marketing
is a process by which individuals and groups obtain what they need and want through creating, offering and exchanging products and services of value with others

Marketing Management
is an art and science of choosing target markets and getting, keeping and growing customers through creating, delivering and communicating superior customer value

Total Customer value Product value Service Value

Customer Delivered Value

Total Customer Cost Monetary cost Time cost

Personal value
Image value

Energy cost
Psychic cost

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Prepare a summary of the topic on marketing-10 minutes any one can be asked to make a presentation..