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ORGANISATION
Marketing Department
Production Department
R& D Dept.
Finance Department
Market
Needs
Basic human requirements
Food,air,water,shelter
Education, entertainment
Communication Market
Goods/Services
Money
Information
Exchange and transaction process
MARKETING : is directly responsible to generate income and contribute to the growth of the business whereas other management functions centre around cost and allocation of scarce resources.
Marketing is the main pillar to achieve business goals. Marketing Management : According to Philip kotler marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering and freely exchanging products and services of value to each other. AMA : Marketing is the process of planning and executing the conception ,pricing ,promotion ,and distribution of ideas,goods,and services to create exchanges that satisfy individual and organizational goals.
MARKETING Definition
Customer is King
Vendors/ stockiest
Transaction of ten entities: 1)Goods-television sets, plasma TVs, millions of hair dryers, toys 2)Services-Accountants ,Lawyers, engineers, doctors, management consultants
Modern Marketing
Company Orientations towards Market Place Six competing concepts: 1.The production concept 2.The product concept 3.The selling concept 4.The marketing concept
TRADITIONAL ORGANISATION
TOP mgt MIDDLE MGT
CUSTOMERS
FRONT LINE PEOPLE
MIDDLE MANAGEMENT
CUSTOMERS
TO P mg t
Functions of marketing Management 1)Determine objectives- goals 2) Analysis of information- Market research ,MIS 3) Marketing strategies: plans,campaigns,programmes 4)Planning: new product, sales forecast 5) organizing: ways & means to achieve objectives 6) Directing : guidance to employees from marketing manager or VP/MD 7)Staffing : recruitment,selection,development,training,compensation Why RELIANCE,RANBAXY,PEPSI,COKE ,P&G are top companies 8) Implementation: organizing for marketing plan/strategy
9) Controlling : comparison of actual performance vs. standard objective
4 Ps of Marketing
The 4 Ps of Marketing
Product: Market research, Quality, Design, Warranties, Slogans, Name, Logos, Packaging, Features, Sizes, Options, Services, Style, Returns. Price: Based on Cost and Positioning (List price, Discounts, Allowances, Payment period, Credit terms). Place: (distribution) how you will bring your product together with your customers. Promotion: There are many promotional activities you can undertake including: Advertising, Publicity, Sponsorship, Sales promotion, Personal selling, Direct Marketing, Internet Marketing.
Market Research
In order to manage the marketing function successfully, good information about the market is necessary. Frequently, a small market research program, based on a questionnaire given to present customers and/or prospective customers, can disclose problems and areas of dissatisfaction that can be easily remedied, or new products or services that could be offered successfully.
Marketing Strategy
Marketing strategy encompasses identifying customer groups (Target Markets), which a small business can serve better than its larger competitors, and tailoring its product offerings, prices, distribution, promotional efforts and services towards that particular market segment (Managing the Market Mix). A good strategy implies that a business cannot be all things to all people and must analyze its markets and its own capabilities so as to focus on a target market it can serve best.
Defined:
the process of dividing a market into meaningful, relatively similar and identifiable segments or groups. Changing a heterogeneous group (market) into smaller homogenous groups (market segments) 4 Criteria:
Substantiality Accessibility
Market Segmentation
Why do we segment markets? To do a better job of meeting consumer needs, and to be consistent with the marketing concept. Consider Coca-Cola Co.
Since 1960: Coke, Diet Coke, Sprite, Cherry Coke, Caffeine-Free Coke, Citra, Minute Maid, Fruitopia, etc.
Bases of Segmentation
Geographic: grouping potential buyers according to location (ex: most retail) Demographic: grouping potential buyers according to age, gender, income, ethnic background, family characteristics, etc. (ex: many clothing stores, movies) Psychographic: grouping potential buyers according to personality, motives, and lifestyles
Bases of Segmentation
(continued)
Benefit segmentation: grouping potential buyers according to the benefits they seek from products. It groups according to product-related needs. (ex: Head and Shoulders) Usage-rate (type of customer) segmentation: grouping potential customers by the amount they would buy (ex: travelers, banks)
Marketing resources are focused to better meet customers needs and deliver more value to them Customers develop preference for brands that better meet their needs and deliver more value
Target market - a homogenous segment that your organization has chosen to pursue. Niche - one segment (usually small) of an overall market. Mass market - an entire market, unsegmented (ex: Wal-Mart) For a segmentation basis to work, it need to based on a set of attributes that are meaningful.
Objectives of Segmentation
Determine how much to charge(price discrimination): tickets, laptops, books...
price sensitivity
A Note on Positioning
Positioning involves designing an offering so that the target segment members perceive it in a distinct and valued way relative to competitors. Three ways to position an offering:
1.Unique (Only product/service with AVM)
4 Cs of Marketing
Customer Benefit: Dettol Soap- TOTAL PROTECTION
J W STANTON: A PRODUCT IS A COMPLEX OF TANGIBLE AND INTAGIBLE ATTRIBUTES
Customer Convenience: crocin to get relief from pain Customer Cost: substitution ,DYNAMIC & SUBJECT
TO CHANGES
BRANDS OF AUTOMOBILES
In order to conduct a successful marketing program you must be able to answer the following questions:
1. What type of business are you in (manufacturing, merchandising or service)? 2. What is the nature of your product(s) or service(s)? 3. What market segments do you intend to serve? (Describe the age, sex, income level, and life-style characteristics of each market segment.) 4. What strategies will you use to attract and keep customers? 5. Product 6. Price 7. Place 8. Promotion 9. Persuasion (personal selling) 10. What is your unique selling proposition (USP)? 11. Who is your competition, and what will you do to control your share of the market? 12. How are you going to build and support your product?
CUSTOMER IS KING
Marketing as a philosophy
1.Customer is king 2.Revenue generation 3.Large scale employment 4.Research & innovation 5.Social process 6.Special efforts Consumer behavior 7.Alternative of choices, redistribution of income 8.Environment scanning, forecasting techniques,SWOT ANALYSIS 9.Creates TIME, PLACE,POSSESSION UTILITY 10.Mass marketing provides much needed revenues to the Government aspirin, Colin
Objectives of Marketing
1.To satisfy the customers 2.To improve quality of life of people 3.To attain higher sales 4.To create good image 5.To work out appropriate marketing mix 6.To increase business profits
OPEN HAPPINESS-COKE
YOUNGISTAN PEPSI
THANK YOU