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CUSTOMER MANAGEMENT

Market Planning & Research.


Marketing Mix.
Advertising & Brand Management.

WHAT IS MARKETING?

Meeting Needs Profitability

Marketing is an organizational function and set of


processes for creating ,communicating & delivering
value to customers and for managing customer
relationships in ways that benefit the organization &
its stakeholders.

WHAT IS MARKETING MANAGEMENT?

The art and science of choosing target


markets and getting, keeping and
growing customers through creating,
delivering and communicating superior
customer value.

NATURE OF MARKETING

It is a legal process by which ownership is transferred.

It is a system of interacting business activities.

It is a managerial function of organizing and directing


business activities that facilitates the movement of
goods from producers to consumers.

It is Philosophy based on consumer orientation and


satisfaction.

It has dual objectives- Profit Making and Consumer


Satisfaction

SCOPE OF MARKETING

Marketers are involved with marketing ten types of entities.

Services

(Eg: work of airlines, hotels,doctors, software programmers )

Events

Experiences

(Eg: different rides in amusement parks)

Persons

(Eg: celebrities like David Beckham)

Places

( Eg: Incredible India campaign to promote tourism in India)

Properties

(Eg: real estate, financial property ( bonds and shares))

Organizations ( Eg: in the United Kingdom , Tescos Every Little Helps marketing program reflects the
food marketers attention to detail in everything it does , within as well as outside the store in the
community and environment . The campaign has valued Tesco to the top of the supermarket chain industry)

Information

Ideas ( Eg: every market offering includes a basic idea. Charles Revson of revlon once observed in the
factory ,we make cosmetics; in the store we sell hope)

Physical Goods

(Eg : Olympic, World Cup Cricket etc.)

(Eg: books, schools, Universities)

SCOPE OF MARKETING

Who markets

Marketers and prospects

A marketer is someone who seeks a response-attention, a


purchase, a vote, a donation- from another party, called the
prospect. if two parties are seeking to sell something to each
other ,we call them both marketers.

Marketers are indeed skilled at stimulating demand for their


companys products, but thats too limited a view of the tasks
they perform. just as production and logistics professionals are
responsible for supply management, marketers are responsible
for demand management. Marketing managers seek to
influence the level, timing, and composition of demand to meet
the organizations objectives.

SCOPE OF MARKETING

Eight demand states are possible


Negative Demand

Consumers dislike the product and may even pay a price


to avoid it. Dental work, Vaccination

Nonexistent Demand

Consumers may be unaware of or uninterested in the


product. Foreign Language courses.

Latent Demand

Consumers may share a strong need that can not be


satisfied by an existing product. Fuel efficient cars

Declining Demand

Consumers begin to buy the product less frequently or not


at all. churches

Irregular Demand

Consumers purchases vary on a seasonal, monthly ,


weekly , daily, or even hourly basis. Hotels, Mass transit

Full Demand

Consumers are adequately buying all products put into the


marketplace.

Overfull Demand

More consumers would like to buy the product that can be


satisfied.

Unwholesome
Demand

Consumers may be attracted to products that have


undesirable social consequences. Cigarettes, Alcohol

SCOPE OF MARKETING

Study of Consumer wants and needs


Study of buyer behavior
Product Planning and development
Pricing Policies
Distribution
Promotion
Consumer Satisfaction
Marketing Control

WHAT IS A MARKET?

Markets includes both place and region


in which buyers and sellers are in free
competition with each other.

MARKETPLACES, MARKETSPACES & METAMARKETS

The marketplace is physical, such as a store you shop in.


Marketspace is digital, as when you shop on the internet.
Nothwestern Universitys Mohan Sawhney has proposed the concept
of a metamarket to describe a cluster of complementary products and
services that are closely related in the minds of consumers , but
spread across a diverse set of industries.
The automobile metamarket consists of automobile manufactures,
new cars and used cars dealers, financing companies , insurance
companies, mechanics, spare parts dealers, service shops, auto
magazines ,classified auto ads in news papers, and auto sites in
internet.
In purchasing a car, a buyer will get involved in many parts of this
metamarket, and this creates the opportunity for metamediaries to
assist buyer in moving seemlessly through these groups , although
they are disconnected in physical space.

CLASSIFICATION OF MARKETS

On
On
On
On
On
On

the
the
the
the
the
the

basis
basis
basis
basis
basis
basis

of
of
of
of
of
of

Area
Time
Transaction
Regulation
Volume of Business
Nature of Goods

DIFFERENCE BETWEEN MARKETING & SELLING


Marketing

Selling

1. The goal of marketing to obtain


profit through satisfaction of
customer demand.

1. The goal of selling is to increase


the quantum of profit through
increase in sales volume

2. Focuses on customer needs.

2. Focuses on sellers needs.

3. Begins before production and


continues after sales.

3. Begins after production and


comes to end after sale of product.

4.Philosophy of business.

4. Routine process.

5.Long term Perspective

5. Short term Perspective

6. Customer First

6. Product First.

7. It is a comprehensive idea and


has a wide scope

7.Selling is a part of marketing and


has a narrow scope. It is a sub
activity of marketing

8. Marketing is an open, dignified


and authentic management activity
with little room for devious

8.The means adopted in selling


may include crude exaggeration,
half truths and even lies.

MARKETING MANAGEMENT TASKS

Developing Marketing strategies and Plan


Capturing marketing insights.
Connecting with Customers.
Building Strong Bonds.
Shaping the market offerings
Delivering Value
Communicating Value
Creating Long Term Growth

MARKETING CONCEPT

Production Concept
Selling Concept
Product Concept
Marketing Concept
Holistic Concept-

Internal marketing
Integrated marketing
Relationship marketing
Performance marketing

Production concept

Product concept

Selling concept

Marketing concept

Holistic marketing concept is based on the development


, design, and implementation of marketing programs,
processes, and activities that recognizes their breadth
and interdependencies.

It recognizes that everything matters in marketing--and that a broad, integrated perspectives often
necessary.

It is thus an approach that attempts to recognize and


reconcile the scope and complexities of marketing
activity.

Marketing Dept.
Senior Mgmt

Other Depts

Products and services

customers

channel
channels
Communications
Legal
Sales & Revenue
Brand & Customer Equity

Commodity
Environment
Ethics

partners

MARKETING MIX

MARKETING MIX

The marketers task is to devise marketing activities and assemble


fully integrated marketing programs to create,communicate, and
deliver value for consumers.
Marketing activity come in all forms. McCarthy classified these
activities as marketing mix tools of four broad kinds, which he called
the four Ps of marketing: Product, Price, Place, Promotion

PRODUCT MIX

PRICE MIX

good & services combination the


firm offers to the target market.

price refers to the amount of


money customers have to pay
to obtain the product.

It must be capable of satisfying not


only the present but also the potential
customers.

The quality standard, type and


characteristics of the product must be
such as to satisfy the tastes,fasions
and preferences of the general buyer.

The success or failure of a firm


depends
solely
on
the
availability of price for goods.

Marketing
activities
like
standardization, grading ,brandingn
,packing and packaging etc are
included in the product mix.

While
determining
pricing
policy, the effects of both the
internal and external factors are
to be duly considered.

PROMOTION MIX

Promotion refers to the


activities that communicate
the merit of the product and
persuade the customers to
buy that product.

Promotion
mix
can
be
executed with the help of
advertising, personal selling,
Sales
promotion
and
salesmanship.
Creating
goodwill in the etc.

PLACE/ PHYSICAL DISTRIBUTION


MIX

Place/physical distribution refers


to the activities that make the
product available to the target
customers.

Selection of the marketing


channel , warehousing ,
transporting, and logistics etc
are needed for the distribution
of the product.

IMPICATIONS IN MARKET PLANNING

Marketing mix is a plan to analyse marketing problems and act as


important tool used by the marketing managers to plan and design the
process of marketing in an organisation.

Marketing problems have become complex and mix can answer


various problems in a manner that satisfy customers.

Better utilization of resources is possible through marketing mix by


bleeding of policies of strategy.

Marketing mix is an optimum combination of all marketing ingredients


and this ensures the realization of goals of the organization.

Marketing mix not a static concept , it changes with the change in


marketing conditions and environment.

MODERN MARKETING CONCEPT

Every employee is a marketer


Internal communication
Experience concept
Green marketing

FACTORS INFLUENCING MARKETING CONCEPT

Growth of Population
Changing concept of Family
More Disposable Income
More Discretionary Income
Technological Advancement
Media
Credit Facility.

Part 3

ADVERTISING MANAGEMENT

PROMOTION MIX

The specific mix of advertising, personal selling , sales promotion and


public relation that a company uses to pursue its advertising and
marketing objectives.

Advertising : any paid form of non-personal presentation and


promotion of ideas, goods or services by an identified sponser.

Public Relations :building good relationship by doing


favourable publicity, building up a good corporate image, and
handling or heading off unfavourable rumors, stories and events.

Personal Selling :oral presentation in a conversation with one


or more prospective purchasers for the purpose of making sales
and building customer relationships.

Sales Promotion :short term incentives to encourage the


purchase or sale of a product or service.

VARIOUS SALES PROMOTION


METHODS
Press Advertising :

it includes newspapers, magazines, trade and technical

journals.

Newspapers have a general and wide appeal and they are truly a way of life to most
of the literate people.

Magazine and trade and technical journal advertisement have a longer time span.

Mural/ outdoor Advertising : it consist of promotional message on billboards,


hoardings, posters and signage which can attract the attention of numerous people.

Favourite places of hoarding advertisement are important roads crossing, overhead


road bridge , the gate of fair and exhibition and a nearby place of a movie hall.

Mail Advertising/ Direct mail : it refers to any advertising sent by mail that is
through post office which includes sales letters , folders, pamphlets, booklets etc.

It is most personal and selective media and the results of direct mail advertising can
be checked by means of an offer incorporate in the mailing.

Sample distribution : business firms distribute samples to the people free of cost to
get the public acquaintance with the product and its quality.

Distribution of medicine to the doctors, distribution of specimen books to teachers


and proffesors are the example of this medium.

Radio Advertisement : it has a very wide appeal.here, repeat message is quite


common.it is suitable even for illiterate people.

It has a memory value. Sponsored commercial programs are used through F.M
Channels are examples of radio advertisement.

Television Advertisement : it uses both video (sight) and audio (sound)


signals.it can appear through ear as well as eye.

Television reaches the audience almost like personal face to face contact. It is
an important means of mass communication for creating market.

Point of purchase Advertising (P.O.P) : point of Purchase is the exact point


where the customers are reminded finally about a product.

P.O.P. Includes window display, counter display, special display and shows and
showrooms etc.

Cinema/ Film Advertising : Films of different kinds serve as a media of audio


visual appeal.

Cine goers are familiar with such films which are shown in cinema houses
before the start of feature film and at the time of interval

Exhibition/ Trade Fair : it is an extension of market place. It ranges from a local


level to national or international level. It attracts a large no. of persons from
different places.

Transit Advertising : it consits of car-card advertising which may be located


within buses, taxi cabs, railway coaches, tram cars and other public transport. It
has a high readership and can reach pedestrians and travelling public.

Sandwich Men : they are hired professionals who move in a gathering with boards
and notices for gathering attention of the public.

Specialtry Advertisement : Specialtry advertisement includes diaries, paper


weights, purses, calendars, key rings, ball pens, etc. These articles bear some
advertisement these are given in the hope that these will lead customers orders
and re-orders.

Concession : some sellers allow concessions from the selling price of the goods.

Distribution of Free Gifts : the sellers sometimes arrange for distribution of


free gift to the customers with an eye to increasing the demand of goods.
Other means of advertising are as follows :
Issue of coupons :
Lottery :
Contest and competitions :

Part 3a

BRAND MANAGEMENT

A BRAND IS
A name, term, sign, symbol or design, or a combination of them,
intended to identify the goods or services of one seller or
group of sellers and to differentiate them from those of competitors.
A brand can suggest the following meanings in case of Mercedes:
Attributes: Expensive, well built, durable Mercedes
Benefits: I do not have to buy another car for several years
Values: Mercedes stands for high performance, safety &
prestige
Culture: Mercedes represents German culture: organized,
efficient, high quality
Personality: Mercedes represents a no-nonsense boss, or a
reigning lion.
User: 55 year-old top executive

Role of brands:
signals quality
predictability & security of demand through loyalty
secure competitive advantage
legal property
The scope of branding:
For branding strategies to be successful and brand value to be
created, consumers must be convinced that there are meaningful
differences among brands in the product or service category.
Branding involves creating mental structures and helping
consumers organize their knowledge about products and services
in a way that clarifies their decision-making and provides value
to the firm.
To brand a product, it is necessary to teach consumers who the
product is, what the product does, and why consumers should
care.

BRAND EQUITY

Brand equity is the added value endowed to products and


services.
Customer-based brand equity is the differential effect that
brand knowledge has on consumer response to the marketing of
that brand.
So, Brand equity arises from:
Differences in consumer response,
As a result of consumers knowledge about the brand.
Brand knowledge consists of all thoughts, feelings, images,
experiences, beliefs, and so on that become associated with the
brand.

MEASURING BRAND EQUITY

Willingness to recommend to a friend


Willingness to pay a price premium
Relevant differentiation

MEASURING BRAND EQUITY

KEVIN LANE KELLERS BRAND EQUITY MODEL

This approach characterizes the relationship that a customer has with a brand.

AAKERS BRAND IDENTITY PLANNING MODEL

Brand-as-product

Brand-as-organization

(product attributes,
quality/value, uses, users)

(organizational attributes,
local versus global)

Brand-as-person
(brand personality)

Brand-as-symbol
(visual imagery/
Metaphors)

Brand identity may be:


Core identity: the central, timeless essence of the brand is most
likely to remain constant as the brand travels to new markets and
products
Extended identity: includes elements that provides texture &
completeness

BRAND IDENTITY - HORLICKS


Inner core: Nutrition & Health
Outer core:
User: Anybody who needs nutrition & health, children, pregnant
women, old people, working people, housewives (the entire family)
Product scope: Products that supplement nutritional needs
Extensions: Horlicks, Horlicks Junior, Horlicks Plus, Mothers
Horclicks, Horlicks Chocolate, Horlicks Biscuits
Slogan: The great family nourisher
Heritage: The company has been in the business of providing
nourishments for decades
Personality: Protecting, Caring, Supportive, Concerned
Value proposition: Helps you perform your role better in life, good
health & living

BRAND IDENTITY - DETTOL


Inner core: Protection against germs
Outer core:
User: Children, Young adults, Hygiene conscious, Urban
Product scope: Antiseptic liquid, soap, shaving cream, handwash,
plaster
Extensions: Dettol soap, Dettol liquid, Dettol handwash, Dettol shaving
cream, Dettol plaster
Slogan: Dettol protection
Symbol: Dettol sword
Heritage: The company has been in the business of providing antiseptic
solutions for decades
Personality: Reliable, Trustworthy, Strong
Value proposition: Effective germicidal, Feeling of security &
Protection

BRAND IDENTITY - LIRIL

Inner core: Freshness, Fun & Spirit


Outer core:
User: Young girls, Urban
Product scope: Soaps, Perfumes, Talcum Powder
Extensions: Liril Talc, Liril Rainfresh
Slogan: Liril freshness (La.. Ira.. Ila)
Association: Waterfall, Lime, Excitement
Personality: Youthful, Spirited, Charming, Mysterious
Value proposition: Feeling of freshness, Youthfulness and Energy

SOME BRANDING RELATED CONCEPTS

Brand Extension

Brand Repositioning

Brand Feelings: consumers emotional reactions with


respect to a brand. Examples:
Warmth (Raymonds, Complan)
Fun (Thumps Up, Coke, Pepsi)
Excitement (Bajajs Wind bike)
Security (L&T in real estate)
Social approval (Onida)
Self-respect (Reid & Taylors)

BRAND PERSONALITY
Brand personality implies the set of human
characteristics that we associate with a brand.
Example:
Sananda projects herself:
A woman with style and cut above the rest
I am intelligent, independent, sophisticated (modern) and
contemporary
I am warm, intimate, charming and understanding
Sananda ad 1: I am Sananda. Meet my impossible family
Sananda ad 1: I am Sananda. I work shoulder to shoulder with my
husband to care for our family
Sananda ad 1: I am Sananda. If I cant look after myself how can I
look after my home?

SANANDA POSITIONING NOTE BASED ON BRAND PERSONALITY

Target segment:
Women 25 40 years; with education of SSC or higher;
household income 5000/- plus per month; living in towns of five
lakh and over
Attitudinally, they are modern but also respect traditional
values. Upwardly mobile.
Competition:
Directly positioned against Sukanya.
Indirect competition from other magazines with high women
readership.
Proposed positioning:
A magazine primarily for women also friendly to men.
Modern & contemporary
Reflects the taste of sophisticated readers

Serious in coverage of issues, yet offers entertainment and

relaxed reading.
Contents similar to competition but more smart & elegant in
presentation.
Sananda is a Modern Womans Magazine.
Product specifics:
Aparna Sen was the editor of choice who is a symbol of modern
& contemporary.
The price was fixed at Rs.5 as compared to Rs.3.50 of Sukanya.
A fortnightly.
Better editorial environment & presentation.
More literary content than competition.
Smart & elegant design.
Bright printing on better quality of paper.

BRAND IMAGE OF HERO-HONDA AND SELF-CONCEPT OF ITS USERS

Rugged
Exciting

Tense

Dominating

Thrifty

Pleasant
Contemporary

Calm

Relaxed
Submissive
Indulgent

Unpleasant

Noncontemporary

Unorganized

Emotional

Mature

Formal

Casual

Orthodox

Complex
Brand Image

Youthful

Delicate

Organized
Rational

Self Concept

Liberal
Simple

BRAND ASSOCIATION

Brand Association is anything that is linked in memory


to a brand. These are informational nodes linked to the
brand node in memory that contains the meaning of
the brand for consumers. These associations include
perceptions of brand quality and attitude towards the
brand.

1.

2.

According to Aaker (1991) there are eight brand


associations:
Customer benefit: Need that is satisfied by a product.
This benefit may be rational, emotional or selfexpressive.
Product attribute

3. Use/application: Exp. - Beer can be associated with


good friends in a warm social settings.
4. User/customer: Brand associated with a particular
segment.
5. Celebrity
6. Lifestyle/personality: Exp. a brand can be perceived
as being competent, trustworthy, active, youthful
7. Competitors: Position with respect to a competitor
8. Country of origin

Positioning

Al Ries & Jack Trout said


Positioning is not what you do to
the product. Positioning is what
you do to the mind of the customer.

POSITIONING DEFINED
Orchestrating an organizations offering and image to
occupy a unique and valued place in the customers
mind relative to competitive offerings.
A product or service can be positioned on the basis of an
attribute or benefit, use or application, user, class, price
or level of quality.
A good position is:
1. What makes you unique
2. This is considered a benefit by your target market
It is important to understand your product from the
customers point of view relative to the competition.

Thank you