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Core Marketing Concepts

The Role of Marketing

the business enterprise has two and only these two


basic functions: marketing and innovation

Peter Drucker
Marketing ?

Marketing is identifying and meeting needs with profit


What is Marketing Management?

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.

C-G-K-G
What is Marketed?
Goods

Services
Events & Experiences

Persons
Places & Properties

Organizations
Information
Ideas
Needs, Wants and Demands

Needs are basic human requirements

Wants are needs directed to specific objects/services


that might satisfy the need

Demands are wants for specific products backed by an


ability to pay
Needs
Stated Needs

Real Needs

Unstated Needs

Delight Needs

Secret Needs
Demand States

Negative Nonexistent Latent

Declining Irregular

Full Overfull Unwholesome


Selling/Marketing

Selling
Needs of Seller- Company First

Marketing
Needs of Buyers- Customer First
Push/Pull

Pull : Long TermCustomer perspective

Push : Short TermSelling perspective


A Simple Marketing System
Market

A market is all potential customers who share


common needs and wants and who have the
ability and willingness to buy the product.
Markets

Marketplaces : Physical

Marketspaces : Digital

Metamarkets : Gaffar Market for mobiles


Target Marketing

Target marketing is focusing all marketing mix decisions


on the specific group of people you want to reach
Value & Satisfaction

Value is the customers estimate of the products capacity


to satisfy a set of goals

Value is the ratio between what the customer gets and


what he gives

V=B/C where V: Value, B: Benefit & C: Cost

Customer gets benefits & assume costs


Value and Satisfaction

Benefits = Functional Benefits + Emotional benefits

Costs = Monetary costs + Time + Energy + Psychic costs


What is Perceived Customer Value?

Product value

Services value Total


customer
Personnel value benefit
Customer
Image value delivered
value
Monetary cost

Time cost Total


customer
Energy cost cost
Psychic cost
Value and Satisfaction
Company Orientations

Production Product

Selling Marketing
Societal Marketing Concept

Marketing Concept (+) Societys well being.

Balancing of following three considerations while


setting marketing policies :

-Customers want satisfaction


-Societys want well being
-Companys want profits

3 BL
Key Customer Markets
Consumer Markets Global Markets

Nonprofit/ Government Markets


Business Markets
Marketing Myopia
Managements failure to recognize the scope of its business.

Market Oriented
Company Myopic Description Description

We are a communication
Airtel We are a Telephone company company

We are in transportation
Singapore Airlines We are in airline business business

We are in financial
ICICI direct We are in the stock brokerage business services business
We are in the
Sony We are in the gaming business entertainment business
The Four Ps
Product

A product is any offering catered to satisfy needs and


wants of consumers.

A brand is when the product is from a known source.


Expanded Marketing Mix for Services
People Physical Process
Evidence
Employees Facility design Flow of activities

Customers Equipment Number of steps

Communicating Signage Level of customer


culture and values involvement

Employee research Employee dress

Other tangibles
SIVA
Solution: How appropriate is the solution to the
customers problem/need

Information: Does the customer know about the


solution, and if so how, from whom , do they know
enough to let them make a buying decision

Value: Does the customer know the value of the


transaction, what it will cost, what are the benefits,
what might they have to sacrifice, what will be their
reward?

Access: Where can the customer find the solution. How


easily/locally/remotely can they buy it and take
delivery.
CRM ?
Strategy

An approach to build and sustain long-term


business with customers.

It is about creating a feel of high touch in high tech


environment

Maximum return on spend per customer

Reduced customer acquisition costs

Motivates customer to be a brand ambassador


Customer Relationship Management

CRM is the business strategy which ensures :

Maximum return on spend per customer

Reduced customer acquisition costs

Motivates customer to be a brand ambassador


Benefits of CRM
Competitive Advantage
Reduces costs, provides efficient operation
Increases customer satisfaction & Loyalty
Increased marketing and selling opportunities
Making it easier for sales and channel partners to sell
Better customer feedback that leads to new and
improved products or services
Increased Profits
Estimating Lifetime Value

Annual customer revenue: Rs 5000


Average number of loyal years: 20
Company profit margin: 10%
Customer lifetime value: Rs 10000
Pareto Principle

20% of your customers account for 80% of your


business.

80% of your customers account for only 20% of your


business.