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Ä Financialsuccess depends on
MARKETING success
Ä CMO - just as CEO and CFO
Ä ³Tricky´ - Kodak, Sony, Xerox
Ä A never-ending pursuit - Microsoft, Nike,
Apple
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Ä Needs: Basic human requirements - food,
shelter, clothing, recreation, education,
entertainment
Ä Wants: When the above needs are directed
to specific objects that might satisfy needs
Ä Wants are shaped by one¶s society
Ä Demands are wants for specific products
backed by an ability to pay
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Ä ·alue is the customer¶s perception of all of
the benefits of a product or service weighed
against all the costs of acquiring and
consuming it
Ä Benefits can be functional, emotional or
self-expressive (Dettol, Nike, Maruti 800)
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Ä ³Marketing 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 stake holders´
AMA
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Ä Exchange is the core concept of marketing
Ä Exchange is the process of obtaining a
desired product from someone by offering
something in return - therefore, there are at
least two parties and each party is capable
of communication and delivery
Ä Exchange is a value creation process
because it leaves both parties better off
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Ä When an agreement is reached after
negotiation, we say that a transaction takes
place
Ä A transaction is a trade of values between
two or more parties
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Ä Goods
Ä Services
Ä Events
Ä Experiences
Ä Persons
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Ä Places
Ä Properties
Ä Organizations
Ä Information
Ä Ideas
 

 
 
Ä A product exists within a product category
e.g. Nike, Reebok, Adidas exist in the
athletic shoe category
Ä What product attributes and benefits are
important to the consumer?
 

 
 
Ä ow is the product perceived relative to
competitive offerings?
Ä Includes product design, product operation
and performance, the physical dimensions
of packaging and branding
 

 
 

Ä Includes the channels used in moving the
product from the manufacturer to the buyer
Ä Distribution channels: Manufacturer -
Wholesaler - Retailer - Consumer
Ä Also includes geographical coverage
Ä Storage (Warehouse)
 

 


Ä Includes the price at which the product or
service is offered for sale and the level of
profitability
Ä It is important to consider while pricing
how much the market can bear, competitive
pricing and the value the consumer sees in
the product
 

 


Ä Personal selling
Ä Advertising
Ä Sales Promotion
Ä Direct Marketing
Ä Marketing/Public Relations
Ä Point-of-sale/Packaging
  


Macro marketing refers to the overall social
process that directs the flow of goods and
services from producer to consumer. It is
the economic system that determines what
and how much is to be produced and
distributed by whom, when, and to whom
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Ä Buying, which refers to consumers seeking
and evaluating goods and services
Ä Selling, which involves promoting the
offering
Ä Transporting, which refers to the movement
of goods from one place to another
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Ä Storing, which involves holding goods until
customers need them
Ä Standardisation and grading, which entails
sorting products according to size and
quality
Ä Financing, which delivers the cash and
credit needed to perform the first five
functions
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Ä Risk taking, which involves bearing the
uncertainties that are part of the marketing
process
Ä Market information, which refers to the
gathering, analysis, and distribution of the
data necessary to execute these marketing
functions
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Ä Selling is
one activity of the entire
marketing process
Ä Selling is the act of persuading or
influencing a customer to buy (actually
exchange something of value for) a product
or service
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Ä Marketing activities are usually the most
significant force in stimulating sales
Ä Oftentimes, marketing activities must occur
before a sale can be made; they sometimes
follow the sale as well, to pave the way for
future sales and referrals
 u 
 


At the heart of the sales concept is the
desire to sell a product that the business has
made as quickly as possible to fulfil sales
volume objectives. When viewed through
the marketing concept lens, however,
businesses must first and foremost fulfil
consumers' wants and needs. The belief is
that when those wants and needs are
fulfilled, a profit will be made
 


 
 

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Ä Proposed by Michael Porter as a tool for

identifying ways to create more customer
value
Ä Every firm is a synthesis of activities
performed to design, produce, market,
deliver, and support its product
 þ
 
 

Ä The firm¶s task is to examine its costs and

performance in each value-creating activity
and to look for ways to improve it
Ä The firm should estimate its competitors¶
costs and performances as benchmarks
Ä It should go further and study the µbest of
class¶ practices of the world¶s best
companies
 
 




Ä The market sensing process
Ä The new offering realization process
Ä The customer acquisition process
Ä The customer relationship management
process
Ä The fulfillment management process
 
 




Ä Strong companies develop superior
capabilities in managing and linking their
core business processes (Walmart - ·MI)
Ä To be successful, a firm also needs to look
for competitive advantages beyond its own
operations, into the value chains of
suppliers, distributors, and customers -
·alue delivery network - Supply chain
 





ÄÕ characteristics:
Makes a significant contribution to
perceived customer benefits
It has application in wide variety of markets
It is difficult for competitors to imitate
(Nike - shoe design and merchandising.
Manufacturing is outsourced)
 





Ä Competitive advantage also accrues to
companies that possess distinctive
capabilities
Ä Core competencies tend to refer to areas of
special technical and production expertise
Ä Distinctive capabilities tend to describe
excellence in broader business processes
 2u

Ä Competitive advantage ultimately derives
from how well the company has fitted its
core competencies and distinctive
capabilities into tightly interlocking
µactivity systems¶
Ä (Dell/IKEA)
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Ä STRENGTS: internal capabilities,
resources
Ä WEAKNESSES: internal limitations
Ä OPPORTUNITIES: favourable factors or
trends in the external environment
Ä TREATS: unfavourable external factors
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Ä As it implements its strategy, a firm needs to track
the results and monitor new developments
Ä The marketplace will change; and a review and
revision of implementation, programs, strategies,
or even objectives is required
Ä Once an organization fails to respond to a changed
environment, it becomes increasingly hard to
recapture its lost position (Lotus 1-2-Õ)
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