3. 3
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
4. 4
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.
6. 6
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 P’s –
product
price
place
promotion
7. 7
The 4 Ps & 4Cs
Marketing
Mix
Product
Price Promotion
Place
Customer
Solution
Customer
Cost
Communication
Convenience
8. 8
Difference Between - Sales & Marketing ?
Sales
trying to get the customer to want what the
company produces
Marketing
trying to get the company produce what the
customer wants
9. 9
Scope – What do we market
Goods
Services
Events
Experiences
Personalities
Place
Organizations
Properties
Information
Ideas and concepts
10. 10
Core Concepts of Marketing
Based on :
Needs, Wants, Desires / demand
Products, Utility, Value & Satisfaction
Exchange, Transactions & Relationships
Markets, Marketing & Marketers.
12. 12
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
13. 13
In order to understand Marketing let us begin with the
Marketing Triangle
Customers
CompetitionCompany
14. 14
Who is a Customer ??
Anyone who is in the market looking at a product /
service for attention, acquisition, use or consumption
that satisfies a want or a need
CUSTOMER IS . . . . .
15. 15
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
16. 16
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
17. 17
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
18. 18
Customer looks for Value
Value = Benefit / Cost
Benefit = Functional Benefit + Emotional
Benefit
Cost = Monetary Cost + Time Cost +
Energy Cost + Psychic Cost
19. 20
Strategic Marketing
Strategic marketing management is concerned with
how we will create value for the customer
Asks two main questions
What is the organization’s 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
20. 21
Strategic Planning
Strategic Planning is the managerial process of
creating and maintaining a fit between the
organization’s objectives and resources and the
evolving market opportunities.
Also called Strategic Management Process
All organizations have this
Can be Formal or Informal
24. 25
The Marketing Plan
A written document that acts as a guidebook of
marketing activities for the marketing manager
25. 26
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
28. 29
Why a product like radio declined
and now once again emerging as
an entertainment medium ?
29. 30
What Were the Drivers of This Change ?
Technology ?
Government policy ?
Other media substitutes ?
30. 31
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.
37. 38
Product Items, Lines, and Mixes
Product Item
Product Line
Product Mix
A specific version of a product
that can be designated as a
distinct offering among an
organization’s products.
A group of closely-related
product items.
All products that an
organization sells.
38. 39
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
39. 40
Gillette’s Product Lines & Mix
Blades and Writing
razors Toiletries instruments Lighters
Fusion – 5 blade
Mach 3 Turbo
Mach 3 Series Paper Mate Cricket
Sensor Adorn Flair S.T. Dupont
Trac II Toni S.T. Dupont
Atra Right Guard
Swivel Silkience
Double-Edge Soft and Dri
Lady Gillette Foamy
Super Speed Dry Look
Twin Injector Dry Idea
Techmatic Brush Plus
Width of the product mix
Depthoftheproductlines
40. 41
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
41. 42
Some Industries - Service Sector
Banking, stock broking
Lodging
Restaurants, bars,
catering
Insurance
News and entertainment
Transportation (freight and
passenger)
Health care
Education
Wholesaling and retailing
Laundries, dry-cleaning
Repair and maintenance
Professional (e.g., law,
architecture, consulting)
42. 43
Classification of Services
Pure Tangible Product
Materials / Components
Computers
Major Product with
Minor Services
Product = Service
Major Service with
Minor Product
Business Hotels
Good Transportation
Banking
Pure Intangible
Service
43. 44
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
Major Characteristic of Services
44. 45
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 firm’s operations that have the potential to affect
the relationship with customers.
45. 46
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
47. 48
Great Words on Marketing
1. “The purpose of a company is ‘to create a customer…The only
profit center is the customer.’”
2. “A business has two—and only two—basic functions: marketing
and innovation. Marketing and innovation produce results: all the
rest are costs.”
3. “The aim of marketing is to make selling unnecessary.”
4. “While great devices are invented in the Laboratory, great
products are invented in the Marketing department.”
5. “Marketing is too important to be left to the marketing
department.”
48. 49
Drivers of Customer Satisfaction
Many aspects of the firm’s value proposition contribute
to customer satisfaction:
The core product or service offered
Support services and systems
The technical performance of the firm
Interaction with the firm and it employees
The emotional connection with customers
Ability to add value and to differentiate as a firm focuses
more on the top levels
49. 50
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
51. 52
What Changed in Marketing…
• Organize by product units
• Focus on profitable transactions
• Look primarily at financial
scorecard
• Focus on shareholders
• Marketing does the marketing
• Build brands through advertising
• Focus on customer acquisition
• No customer satisfaction
measurement
• Over-promise, 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
Old Economy New Economy
53. 54
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.
54. 55
Myth 2 – Better technology (read CRM) leads to
better customer service.
Mythbuster – Technology
alone does not deliver,
helps people do.
55. 56
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…
56. 57
Mythbuster – Customers
are not only present
where competition is.
Myth 4 – The only way to get a customer is from
competition.
57. 58
Myth 5 – Just advertise and - You will sell.
Mythbuster – Advertising will only sell,
Not retain customers.
58. 59
Myth 6 – No difference between marketing & selling
Mythbuster – “Selling focuses on the needs of the
seller; marketing on the needs of the buyer.
59. 60
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!!
60. 61
So what will the differentiators be :
• Technology ?
• Brand ?
