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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
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.
(a collection of sellers)
Industry
Goods/services
Money
(a collection of Buyers)
Market
Information
Marketing = ?
Marketing is the sum of all activities that take you to a sales outlet. After that sales takes over. Marketing is all about creating a pull, sales is all about push. Marketing is all about managing the four Ps
product price place promotion
Promotion Communication
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Sales
trying to get the customer to want what the company produces
Marketing
trying to get the company produce what the customer wants
Goods Services Events Experiences Personalities Place Organizations Properties Information Ideas and concepts
Basics of Marketing
Based on : Needs, Wants, Desires / demand
Products, Utility, Value & Satisfaction Exchange, Transactions & Relationships Markets, Marketing & Marketers.
Basics of Marketing
Products
Markets
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Core of Marketing
Need food ( is a must ) Want Pizza, Burger, French fry's ( translation of a need as per our experience ) Demand Burger ( translation of a want as per our willingness and ability to buy ) Desire Have a Burger in a five star hotel
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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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Benefit
Cost
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Primary Activities:
Inbound Logistics: Inbound activities to receive, store and distribute inputs to the product, such as material handling, inventory control, warehousing and contact with suppliers. Operations: Production activities to create the product such as machining, packaging, printing and testing. Outbound Logistics: Outbound activities to store and distribute the product to customers, including warehousing, order processing and vehicle scheduling. Marketing and Sales: Activities associated with providing a means by which buyers can purchase the product and be included to do so (advertising, selling, pricing, merchandising and promotion). Service: Activities for providing service or maintaining product value, including installation and training.
Support Activities:
Strategic Marketing
Strategic marketing management is concerned with how we will create value for the customer Asks two main questions
What is the organizations main activity at a
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Strategic Planning
Strategic Planning is the managerial process of creating and maintaining a fit between the organizations objectives and resources and the evolving market opportunities.
Also called Strategic Management Process All organizations have this Can be Formal or Informal
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Growth strategies
Market penetration strategy Product development strategy
Current M & P= PENETRATION Promotion, repositioning thee brand Current M & New P= PRODUCT DEVELOP.. Develop and innovate product offerings to replace existing one. New M & Current P= MARKET DEVELOP.. Product export, marketing in new region. New M & New P= DIVERSIFICATION Market completely new product to new customers.
Threat analysis)
Business Mission
Goal Formulation
Internal Environment
(Strength/ Weakness analysis)
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Strategy Formulation
Environmental Analysis Competitor Customer Supplier Regulatory Social/ Political Internal Analysis Technology Know-How Manufacturing Know-How Marketing Know-How Distribution Know-How Logistics Opportunities & Threats Strength & Weaknesses Identity Core Competencies
Identify opportunity
Firm Strategies
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People Process
Marketing Strategy
Target Market Strategy
Marketing Mix
Product Promotion Place/Distribution Price
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Marketing Environment
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 policy ? Other media substitutes ?
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HMT vs. Titan HLL vs. Nirma Bajaj vs. Honda Dot.com boom, then bust and now resurgence 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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Physical / Natural
Economic Conditions
Competition
Target Market
Political & Legal Factors
Environmental Scanning
Technology
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The macro-environment
is the assessment of the external forces that act upon the firm and its customers, that create threats & opportunities
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Product
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Product is . . . . .
Anything that is offered to the market for attention, acquisition, use or consumption that satisfies a want or a need
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Types of Products
PRODUCTS
Consumer Products
Services
Industrial Products
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Product Item
Product Line
Product Mix
Product Mix
Width how many product lines a company has
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Toiletries
Series Adorn Toni Right Guard Silkience Soft and Dri Foamy Dry Look Dry Idea Brush Plus
Writing instruments
Paper Mate Flair S.T. Dupont
Lighters
Cricket S.T. Dupont
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A process that creates benefits by facilitating a desired change in customers themselves, or their physical possessions, or intangible assets
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Lodging
Restaurants, bars, catering
Education
Wholesaling and retailing Laundries, dry-cleaning
Insurance
News and entertainment Transportation (freight and passenger)
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Classification of Services
Banking
Good Transportation Major Service with Minor Product Business Hotels Product = Service Computers Major Product with Minor Services Materials / Components
Intangibility Services are intangibility cannot be seen, tasted, felt, heard or smelled before purchase. Inseparability - Services are produced and consumed simultaneously. Variability or Heterogeneity Services are highly variable Perishability Services cannot be stored.
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Product elements Place, cyberspace, and time Process Productivity and quality People Promotion and education Physical evidence Price and other user outlays
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3. 4. 5.
The purpose of a company is to create a customerThe only profit center is the customer. A business has twoand only twobasic functions: marketing and innovation. Marketing and innovation produce results: all the rest are costs. The aim of marketing is to make selling unnecessary. While great devices are invented in the Laboratory, great products are invented in the Marketing department. Marketing is too important to be left to the marketing department.
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Ability to add value and to differentiate as a firm focuses more on the top levels
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It is absolutely essential that marketers have a detailed understanding of consumers, their needs and wants. Much happens before and after the sale to affect customer satisfaction
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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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Myth 1 The larger the range of products, the more customer-centric I am.
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using instantly. - Give a customer a card and he will learn how to play with it immediately
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Mythbuster Selling focuses on the needs of the seller; marketing on the needs of the buyer.
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Mythbuster Trust is not a differentiator at all it is the very minimum that the customer expects!!
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Technology ?
Brand ?
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products -
Customer Service !
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