MARKETING & MARKETING MANAGEMENT

Marketing is an organizational function and a set of

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

1
Marketing is an organizational function

2
Marketing is an organizational function

3
..set of processes
Market-sensing process

Customer acquisition process

Customer relationship management process

Fulfillment management process

4
..set of processes
New-offering realization process

5
.. for creating, communicating, and delivering
value to customers

6
Jagdish Sheth & Rajendra Sisodia

4 As complement 4 Ps of
marketing

7
ACCEPTABILITY

8
ACCEPTABILITY

9
ACCEPTABILITY

10
ACCEPTABILITY

11
AFFORDABILITY
AFFORDABILITY
Affordability+Acceptability (Affordable
biscuits than chocolate bars!)
A
W
A
R
E
N
E
S
S

15
A
W
A
R
E
N
E
S
S
A
W
A
R
E
N
E
S
S
Castrol
ACCESSIBILITY (HUL Shakti project)
ACCESSIBILITY Colgate
Census 2011
PARAMETER 1991 2001 2011
Total population (in million) 848 1029 1177
Rural population (in million) 629 742 826
Rural proportion to total (in 74 72 70
percentage)
No. of villages NA 5,93,615 6,40,867
Male (in million) NA 381 425
Female (in million) NA 360 401
No. of rural households (in million) 112 138 165

Family size (number) 5.55 5.36 5.01

Rural LITERACY LEVEL SOURCE: IRS

2000: 53 %

2005: 58 %

2010: 63 %

2015: 71 %*(86% Urban)

* Reuters
21
IS RURAL INDIA AN AGRARIAN ECONOMY?
2010
NON-FARM
40% INCOME
60% FARM
INCOME

2020

NON-FARM
30%
INCOME
FARM
70%
INCOME

22
Marketing metrics
Measures that help marketers quantify, compare, and interpret
performance
Brand Equity
Growth strategies
Building your market International expansion
share Acquisitions, mergers,
Developing committed and alliances
customers and Building an outstanding
stakeholders reputation for social
Building a powerful brand responsibility
Innovating new products, Partnering with
services, and government and NGOs
experiences
Expanded Mix for Services The 7 Ps
Product
Price
Place
Promotion

People
Process
Physical Evidence
26
 Building Customer Value, Satisfaction, and Loyalty

Profit Center
Building Customer Value for Pet owners

CPV
Determinants of CPV
CUSTOMER VALUE ANALYSIS
1. Identify the major attributes and benefits that customers
value
2. Assess the quantitative importance of the different attributes
and benefits
3. Assess the companys and competitors performances on the
different customer values against their rated importance
4. Examine how customers in a specific segment rate the
companys performance against a specific major competitor
on an individual attribute or benefit basis
5. Monitor customer values over time
Multi-Attribute approach
Assessing growth opportunities
ESPN Growth Opportunities
33
Ansoffs Product-Market
expansion grid

34
The perils of attractive markets & difficulties in
forecasting!
Competitors

Adaptability

Market growth

Price instability

Inadequate resources
 The Brand Asset valuator
Brand stature

L H

Brand strength 1. Differentiation

2. Relevance
3. Esteem
4. Knowledge

L
Management may have overestimated the
attractiveness of market!
Guidelines to decision makers:
High levels of expertise may decrease accuracy
Multiple sources should be employed
Look for unbiased sources of information
Do not ignore any potential red flags
Question everything systematically
How can you improve the accuracy of market
forecast?
A simple checklist by Barnett:
Definition of market needs to be broad enough to include all
potential users.
Divide demand in to its main components using
segmentation analysis
Knowing the drivers of demand is crucial to success of any
total market demand forecast
Vary the assumptions and quantify the impact on demand
using Sensitivity analysis
Customer-Product Profitability Analysis
Maximizing Customer Lifetime Value
Customer profitabillity analysis
Activity-based costing (ABC)
Premium brands

41
42
 43
Source: Feb 2017 - Fortune
Total customer satisfaction
A persons feelings of pleasure or disappointment
that result from comparing a product or services
perceived performance (or outcome) to
expectations
Total customer satisfaction

45
Measuring Marketing Productivity
Marketing metrics

Marketing-mix modeling

Marketing dashboards
Marketing Funnel

47
Why Marketers depend on marketing funnel?

Consumer psychology

Marketing mix measurement

Business value of marketing

48
Buyer-readiness stages

49
Behavioral Segmentation Breakdown

50
Two types of loyalty

ACTIVE PASSIVE
LOYALIST LOYALISTS

51
Does marketers still turn to the marketing
funnel?
Forrester data show that 53% of
U.S. online consumers research
products online that theyll then
purchase in the store.

52
Does marketers still turn to the
marketing funnel?

53
Can it be an inverted funnel?

54
Managing the customer base

Reduce
customer
defection
Focus on Increase
high-profit customer
customers longevity

Terminate Share of wallet

low-profit &
customers cross/upselling
Monitoring satisfaction
Systematically measuring how well you
treat customers

Identifying the factors shaping satisfaction

Changing operations and marketing as a

result
Satisfaction Measurement Techniques

Periodic surveys

Customer loss rate

Mystery shoppers

J. D. Powers satisfaction ratings

Customer satisfaction & Net Promoter Score (NPS)
A study carried out by Frederick Reichcheld
for Enterprise Rent-A-Car in 1998
Quality of rental experience and how likely
you would recommend
Promoters, Detractors, Passively satisfied
Different pattern may lead to same NPS, Not
a useful predictor of future sales and growth
Customer Lifetime Value (CLV)
Focus on Customer Loyalty

Phases in Customer Relationship

Lifecycle

Compute and Apply CLV

59
The customer life cycle

According to Forrester Research: Customer life

cycle is the customers relationship with a brand
as they continue to discover new options, explore
their needs, make purchases(buy), and engage
with the product experience and their peers.

60
McKinsey: Consumers are moving outside the
marketing funnel

The consumer decision journey

61
The consumer decision journey

62
The consumer decision journey
Initial consideration set

Active evaluation

Process of researching potential

purchases

Closure and Post-Purchase

63
64