Marketing Management

TH JMC)
ORATOR : RAMEEZ PATOLI (124TH

What is Marketing??
Selling?
Advertising?
Promotions?
Making products available in stores?
Maintaining inventories?

All of the above, plus much more!

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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

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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.

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Simple Marketing System

Communication

Industry

(a collection
of sellers)

Goods/services

Money

Information

Market

(a collection
of Buyers)

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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
product

price
price

place
place

promotion
promotion

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The 4 Ps & 4Cs

Marketing
Mix

Convenience
Place

Product
Customer
Solution

Price

Promotion

Customer
Cost

Communication
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Difference
Difference Between
Between -- Sales
Sales &
&
Marketing
Marketing ??

Sales
trying to get the customer to want what the
company produces

Marketing
trying to get the company produce what
the customer wants

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Scope What do we market

Goods
Services
Events
Experiences
Personalities
Place
Organizations
Properties
Information
Ideas and concepts

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Core Concepts of
Marketing
Based on :

Needs, Wants, Desires / demand

Products, Utility, Value & Satisfaction

Exchange, Transactions & Relationships

Markets, Marketing & Marketers.

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Core Concepts of Marketing

Needs, wants
demands

Markets

Products

Marketing &
Marketers

Utility, Value &

Satisfaction

Xchange, Transaction
Relationships

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Core Concepts 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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In order to understand Marketing let us begin

with the 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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How Do Consumers Choose Among

Products & Services?
Value - the value or benefits the customers gain from
using the product versus the cost of obtaining the
product.
Satisfaction - Based on a comparison of performance
and expectations.
Performance > Expectations => Satisfaction
Performance < Expectations => Dissatisfaction

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Customers - Problem
Solution
As a priority , we must bring to our customers
WHAT THEY NEED
We must be in a position to UNDERSTAND their
problems
Or in a new situation to give them a chance to AVOID
the problems

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Customer looks for Value

Value = Benefit / Cost
Benefit = Functional Benefit + Emotional
Benefit
Cost
= Monetary Cost + Time Cost +
Energy Cost + Psychic Cost

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Analysis Of Competition
Who are your competitors?
What are their strengths and weaknesses?
What have been their strategies?
How are they likely to respond to your
Marketing plan?

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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

particular time? Customer Value

What are its primary goals and how will these be
achieved? how will this value be delivered

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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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The Strategic-Planning, Implementation,

and Control Process

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Business Strategic-Planning
Process
External environment
(Opportunity &
Threat analysis)

Goal Formulation

Business Mission

Internal Environment
(Strength/ Weakness analysis)

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Strategy Formulation
Environmental Analysis
Internal Analysis

Competitor
Customer
Supplier
Regulatory
Social/ Political

Technology Know-How
Manufacturing Know-How
Marketing Know-How
Distribution Know-How
Logistics

Opportunities & Threats

Identify opportunity

Strength & Weaknesses

Identity Core Competencies

Fit internal Competencies with external opportunities

Firm Strategies

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The Marketing Plan

A written document that acts as a guidebook of
marketing activities for the marketing manager

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CONTENTS of MARKETING PLAN

Business Mission Statement
Objectives
Situation Analysis (SWOT)
Marketing Strategy
Target Market Strategy
Marketing Mix

Positioning
Product
Promotion
Price
Place Distribution
People
Process

Implementation, Evaluation and Control

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The Marketing Process

Business
Mission
Stateme
nt
Objectiv
es
Situation
or SWOT
Analysis

Marketing Strategy
Target Market
Strategy

Marketing Mix
Product

Place/Distribution

Promotion

Price

Implementation
Evaluation,
Control

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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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Why Market Leaders

Suffered ?

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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Factors
Influencing
Companys
Marketing
Strategy

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External
External Marketing
Marketing Environment
Environment
External Environment
is not controllable

Social
Social
Change
Change

Ever-Changing
Ever-Changing
Marketplace
Marketplace

Demographics
Demographics

Product
Product
Distribution
Distribution
Promotion
Promotion
Price
Price

Economic
Economic
Conditions
Conditions

Physical / Natural

Competition
Competition

Environmental
Scanning

Target Market

Technology
Technology

Political
Political&&
Legal
LegalFactors
Factors

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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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P
P rr oo dd uu cc tt

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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 Items, Lines, and Mixes

Product
Product Item
Item

A
A specific
specific version
version of
of aa product
product
that
that can
can be
be designated
designated as
as aa
distinct
distinct offering
offering among
among an
an
organizations
organizations products.
products.

Product
Product Line
Line

A
A group
group of
of closely-related
closely-related
product
product items.
items.

Product
Product Mix
Mix

All
All products
products that
that an
an
organization
organization sells.
sells.
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Product Mix
Width how many product lines a company has
Length how many products are there in a product line
Depth how many variants of each product exist within a
product line
Consistency how closely related the product lines are in
end use

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Gillettes Product Lines & Mix

Depth of the product lines

Width of the product mix

Blades and
Writing
razors
Toiletries instruments
Fusion 5 blade
Mach 3 Turbo
Mach 3
Series
Paper Mate
Sensor
Adorn
Flair
Trac II
Toni
S.T. Dupont
Swivel
Silkience
Double-Edge Soft and Dri
Lady Gillette Foamy
Super Speed Dry Look
Twin Injector Dry Idea
Techmatic
Brush Plus

Lighters

Cricket
S.T. Dupont
Atra

Right Guard

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What is a Service?
Defining the Essence
An act or performance offered by one party to another
(performances are intangible, but may involve use of
physical products)
An economic activity that does not result in ownership
A process that creates benefits by facilitating a desired
change in customers themselves, or their physical
possessions, or intangible assets

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Some Industries - Service

Sector
Banking, stock broking

Health care

Lodging

Education
Wholesaling and retailing
Laundries, dry-cleaning
Repair and maintenance
Professional (e.g., law,
architecture, consulting)

Restaurants, bars,
catering
Insurance
News and entertainment
Transportation (freight and
passenger)

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Classification of Services
Banking

Pure Intangible
Service

Good Transportation
Major Service with
Minor Product
Business Hotels
Product = Service
Computers
Major Product with
Minor Services
Materials / Components

Pure Tangible Product

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Major Characteristic of Services

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.

Non Ownership - Services are rendered but there is no

transfer of title

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The Marketing Mix

The conventional view of the marketing mix consisted of
four components (4 Ps): Product, Price, Place/
distribution and Promotion.
Generally acknowledged that this is too narrow today;
now includes , Processes, Productivity [technology ]
People [employees], Physical evidence
Marketers today are focused on virtually all aspects of
the firms operations that have the potential to affect
the relationship with customers.

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The 8Ps of Integrated Service

Management vs. the Traditional
4Ps

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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The Give and Get of Marketing

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Great Words on Marketing

1.
1.
2.
2.

3.
3.
4.
4.
5.
5.

The
The purpose
purpose of
of aa company
company is
is to
to create
create aa customerThe
customerThe only
only
profit
profit center
center is
is the
the customer.
customer.
A
A business
business has
has twoand
twoand only
only twobasic
twobasic functions:
functions: marketing
marketing
and
and innovation. Marketing
Marketing and
and innovation
innovation produce
produce results:
results: all the
rest
rest are
are costs.
costs.
The
The aim of marketing is
is to
to make
make selling
selling unnecessary.
unnecessary.
While
While great
great devices
devices are
are invented
invented in
in the
the Laboratory,
Laboratory, great
great
products
products are
are invented
invented in
in the
the Marketing
Marketing department.
department.
Marketing
Marketing is
is too
too important to be left to the marketing
marketing
department.
department.

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Drivers of Customer Satisfaction

Many aspects of the firms value proposition contribute
to customer satisfaction:

The
The core
core product or service offered

Support
Support services
services and
and systems
systems

The
The technical
technical performance
performance of
of the
the firm
firm

Interaction
Interaction with
with the firm
firm and
and itit employees
employees

The
The emotional
emotional connection
connection with
with customers
customers

Ability to add value and to differentiate as a firm focuses

more on the top levels

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Marketers and Markets

Marketers are focused on stimulating
exchanges with customers who make
up markets B2C or B2B.
The market is comprised of people who
play a series of roles: decision
makers, consumers, purchasers,
and influencers.
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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Stages of Customer Interaction

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What Changed in Marketing

New Economy

Old Economy

Organize
Organize by
by product
product units
units
Focus
Focus on
on profitable
profitable transactions
transactions
Look
Look primarily
primarily at
at financial
financial
scorecard
scorecard
Focus
Focus on
on shareholders
shareholders
Marketing
Marketing does
does the
the marketing
marketing
Build
Build brands
brands through
through advertising
advertising
Focus
Focus on
on customer
customer acquisition
acquisition
No
No customer
customer satisfaction
satisfaction
measurement
measurement
Over-promise,
Over-promise, under-deliver
under-deliver

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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Are Banks truly

marketing-savvy and
customer - centric?

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Myth 1 The larger the range of products, the

more customer-centric I am.

Mythbuster The range of products has

emerged from being
competition-centric.

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Myth 2 Better technology (read CRM) leads to

better customer service.

Mythbuster Technology
alone does not deliver,
helps people do.

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Myth 3 Launch a product and the customer will

start
using instantly.

- Give a customer a card and he will learn how to play

with it immediately

Mythbuster Customers need

To be educated too

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Myth 4 The only way to get a customer is

from
competition.

Mythbuster Customers
are not only present
where competition is.

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Myth 5 Just advertise and - You will sell.

Mythbuster Advertising will only sell,

Not retain customers.
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Myth 6 No difference between marketing &

selling

Mythbuster Selling focuses on the needs of the

seller; marketing on the needs of the buyer.

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Myth 7 In the absence of relationships trust

builds financial brands

Mythbuster Trust is not a differentiator at all

it is the very minimum that the customer expects!!

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So
So what
what will
will the
the differentiators
differentiators be
be ::
Technology ?
Brand ?

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The real differentiator of

customer centricity in a
commoditised world of
financial products -

Customer Service !
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THANK YOU !

TIME FOR SE SENSIBLE

QUESTIONS

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