marketing management - an introduction

S.Victor Anandkumar Department of Management Studies School of Management Pondicherry University victor.dms@pondiuni.edu.in

MBA

What is management?

Input -> Process -> Output

Management function Vs. functional areas

No.1 job of a manager

Decision-making

Types of decisions

Strategic Tactical Operational

Porters 3 generic strategies

Low cost Differentiation Niche/focus

Marketing strategy derives from Corporate strategy

Supply-chain or demand-chain

Types of value/utility
Type Description Conversion of raw materials and components into finished goods and services Examples Responsible function

Form

Pizza made from Production several ingredients

Time Place Ownership (possession)

Availability of goods and services when consumers want them Availability of goods and services where consumers want them Ability to transfer title to goods or services from marketer to buyer

Dial-a-pizza; delivery Marketing guaranteed in 30 min. Delivery at your doorstep Pizza sales (in exchange for rupees or credit card payment) Marketing

Marketing

Core Marketing Concepts

Needs, wants, and demands Markets Products and services

Exchange, transactions, and relationships

Value, satisfaction, and quality

Evolution of Marketing
Production Concept Product Concept Selling Concept Marketing Concept
Societal Marketing Concept

Consumers favor products that are

available and highly affordable. Improve production and distribution.

Consumers favor products that offer the most quality, performance, and innovative features.
Consumers will buy products only if the company promotes/ sells these products. Focuses on needs/ wants of target markets & delivering satisfaction better than competitors. Focuses on needs/ wants of target markets & delivering superior value.

Compare these

Motorola Vs. Nokia Barnes & Noble Vs. Amazon Coca-cola Vs. Snapple, Gatorade Nestle Vs. Starbucks

What is common among the left-siders?

Marketing Vs Sales
Starting Point
Factory

Focus
Existing Products

Means
Selling and Promoting

Ends
Profits through Volume

The Selling Concept

Market

Customer Needs

Integrated Marketing

Profits through Satisfaction

The Marketing Concept

The Marketing Process

DemographicEconomic Environment

Marketing Intermediaries

TechnologicalNatural Environment

Product
Suppliers Place Target Consumers Promotion Price Publics

PoliticalLegal Environment

Competitors

SocialCultural Environment

Marketing strategy

S-T-P

Its all about customers!

All businesses have customers. Successful businesses know their customers. Struggling businesses are still trying to identify their customers. Failing businesses usually have no idea who their customers are.

What about the product?

Augmented Product Installation Packaging Delivery & Credit Brand Name Quality Level

Core Benefit or Service

Features

Design

AfterSale Service

Warranty Expected Product Basic Product

Levels of product
Generic

product is undifferentiated Offered product makes the difference in getting the customers Delivered product makes the difference in keeping the customers

Where are we?

Augmented product is a condition of a mature market or of relatively experienced or sophisticated customers

Customer-centric differentiation and positioning hold the key! Customer-orientation and continuous innovation holds the key!

Potential product lies in the future

Listen to the customer

Dont tell me how good your product is; Tell me how good it will make me!

Levels of the product

Core benefit

lodging/accommodation A room

Basic product

Expected product

A clean room with bath attached

Bed and breakfast; pick-up Customized room and menu (from your past preferences)

Augmented product

Potential product

Segmentation

Looks at the nature and extent of diversity of customers needs and wants Offers an opportunity for an organization to focus its business capabilities on the requirements of one or more groups of customers Down the history lane: mass Vs. micro, segment Vs. niche, one-to-one marketing

Targeting

Once the market-segment opportunities have been identified, the organization got to decide how many and which ones to target Objective: match-making between value requirements of each segment and organizations distinctive capabilities

Positioning

The act of designing the companys offer so that it occupies a distinct and valued place in the target customers minds Process:

Identify positioning concepts for each target segment Select, develop and communicate chosen positioning concept

The heart of the matter

People buy on the differences Its the differences that win the day! An ability to create compelling differences remains at the heart of competitive advantage The battle has always been (and still is) about differentiation Create winning differences in customers minds