Understanding marketing in new perspective

1. Amity Global Business School
PRESENTATION ON: MARKETING

2. 2
Fundamental of MarketingFundamental of Marketing

3. 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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4. Simple Marketing System
4
Industry
(a collection
of sellers)
Market
(a collection
of Buyers)
Goods/services
Money
Communication
Information

5. 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
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6. The 4 Ps & 4Cs 6
Marketing
Mix
Product
Price Promotion
Place
Customer
Solution
Customer
Cost
Communication
Convenience

7. Scope – What do we market
 Goods
 Services
 Events
 Experiences
 Personalities
 Place
 Organizations
 Properties
 Information
 Ideas and concepts
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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. Core Concepts of Marketing
 Based on :
 Needs, Wants, Desires / demand
 Products, Utility, Value & Satisfaction
 Exchange, Transactions & Relationships
 Markets, Marketing & Marketers.
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10. Core Concepts of Marketing 10
Needs, wants
demands
Markets Marketing &
Marketers
Utility, Value &
Satisfaction
Xchange, Transaction
Relationships
Products

11. 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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12. The Marketing Plan
 A written document that acts as a guidebook of
marketing activities for the marketing manager
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13. 14CONTENTS 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
Statemet
Objective
s
Situation
or SWOT
Analysis
Implementation
Evaluation, Control
Target Market
Strategy
Marketing Strategy
Product
Promotion
Place/Distribution
Price
Marketing Mix

15. 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.”
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16. 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
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• 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

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Customer Value andCustomer Value and
SatisfactionSatisfaction

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It means the customers’ evaluation
of the difference between all the
benefits and all the costs of the
product

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Steps in a Customer Value Analysis
•Identify major attributes and benefits that customers value
•Assess the qualitative importance of different attributes and
benefits
•Assess the company’s and competitor’s performances on the
different customer values against rated importance
•Examine ratings of specific segments
•Monitor customer values over time

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The Dimensions of Customer Value
•Conformance to requirements.
•Product selection.
•Price and brand.
•Value-added services.
•Relationships and experiences.

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Why Superior Customer Value?
Designing and delivering superior customer value propels
organizations to market leadership positions in highly
competitive global markets
The Importance of Superior Customer Value Continuous creation
of business experiences to exceed customer expectations

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Benefits of Customer Value
•Delighted Customers
•Benchmarking against the competitors.
•Identifying the right things .
•Teamwork by committed employees.
•Enhanced Market Share
•Gaining Competitive Edge
•Enables Competitive Strategic planning

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Marketing EnvironmentMarketing Environment

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COMPONENTS OF MARKETING ENVIRONMENT
• Internal environment : Forces and actions inside the firm
that affect the marketing operation composed of internal stake
holders and the other functional areas within the business
organization.
• External environment
Macro environment
Micro environment

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Internal Environment
All factors that are internal to the organization are known as the
internal environment. They are generally audited by applying the
“Five Ms”. which are Men, Money, Machinery, Materials and
Markets.
The internal environment is as important for managing change as
the external. As marketers we call the process of managing
internal change internal marketing

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THE INTERNAL ENVIRONMENT
It includes the following:•
The human resource department.
• The operations department.
• The accounting and finance department.
• The research and development department.

29. 30External EnvironmentExternal Environment
Micro environment
• The forces close to the company that affects its ability to
serve.
• It comprises all those organizations and individuals who
directly affect the activities of a company.
• All factors which impact directly on a firm and its activities in
relation to a particular market.
1.Suppliers
2. The market channel
3. Customers.
4. Competitors
5. Public

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Macro environment refers to those factors which are external to
company's activities and do not concern the immediate
environment.
It comprises general forces that affect all business activities in
market
Macro EnvironmentMacro Environment

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Factors affecting Macro environment
1.POLITICAL FORCES
2.ECONOMIC FORCES
3.SOCIAL AND CULTURAL FORCES
4.TECHNOLOGICAL FORCES
5.DEMOGRAPHIC FORCES

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Political or governmentPolitical or government
The addition and removal of legislative or regulatory
constrains can pose major strategic threats and opportunities.
EconomicEconomic
The evaluation of some strategies will be affected by judgement
made about the economy , particularly about inflation and general
economic health as measured by unemployed and economic
growth.
Social or CulturalSocial or Cultural
Culture trends can present both threats and opportunities for a wide
variety of firms.
TechnologiesTechnologies
One dimension of environmental analysis is technological trends
or technological events occurring outside the market of industry
that have the potential to impact strategies.

33. 34DemographicDemographic
Demographic trends can be a powerful underlying
force in a market and it can be predictable.
WHY IS IT IMPORTANT?
• An understanding of macro and micro marketing environment
forces is essential for planning.
• Helps a business to compete more effectively against its rivals.
• Assists in the identification of opportunities and threats.
• Enables an organization to take advantage of emerging strategic
opportunities.

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The marketing management philosophies are those that direct the
marketing operation of organization.
It guides marketer to plan and implement their activities.
Some major marketing management philosophies are Production
concept, Product concept, Selling concept, Marketing concept,
Societal marketing concept, Holistic marketing concept.

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It is the oldest marketing concept concentrate on higher
production efficiency and wide distribution.
It believes that consumer will favour those products that are
widely available and low in cost.
In this concept all business efforts are directed at rising output
levels; produce standardized product; and sell at lower price.
Production ConceptProduction Concept

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The product concept is slight modification on production concept.
The major emphasis of product concept is on product quality,
performance and features.
It believes that consumers respond to good quality products that are
reasonably priced.
Product ConceptProduct Concept

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Selling concept evolved out of the failure of the product and
production concept.
It is based on the idea that people will buy more goods and services
if aggressive selling method are used.
It believes that people ordinarily will not buy the organization’s
product unless they are persuaded to buy.
Selling conceptSelling concept

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Marketing concept is based on the notion that the main task of
the organization is to know the needs, wants and value of the
target market.
It believes that the key to achieving organizational objectives
lies in being more effective than competitors towards
determining and satisfying the need and want of the target
markets.
Marketing conceptMarketing concept

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The societal marketing concept evolved out of the movements of
consumerism and environmentalism.
It believes that the organization should deliver the superior product
to the market that maintains the consumers and society’s well being.
It balance between the interests of the firm, consumers and society.
Societal marketing ConceptSocietal marketing Concept

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The holistic marketing concept is latest development in marketing
thought.
According to Philip Kotler, “the holistic marketing concept is based
on the development , design, and implementation of marketing
programs, processes, and activities that recognizes their breadth and
interdependencies.”
This concept is an integration of the marketing concept and societal
marketing concept.
Holistic Marketing ConceptHolistic Marketing Concept

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Marketing Mix:

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The Marketing Mix, more popularly referred to as the 4Ps of
Marketing is a set of controllable and interrelated variables composed
of product, place, price and promotions that a company assembles to
satisfy a target group better than it’s competitor.
Marketing Mix strategy is choosing and implementing the best
possible course of action to attain the organization’s long-term
objectives and gain competitive edge.
Product
Place
Price
Promotion

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Product
To satisfy the needs and wants of the target market.

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PlacePlace
To make the product conveniently available
to the target market consistent with their
purchasing pattern.

46. 47PricePrice
To make the product affordable to the target
market and reflect the value of benefits
provided.

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PromotionPromotion
To build and improve consumer demand.
Promotions has four components called the
Promotions Mix as follows:
Advertising – to effectively
inform and persuade the target
market
•Public Relations – to offer a
positive image of the company
and the brand
•Selling – to get the customers
buy
•Sales Promotions – to convince

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Difference between marketingDifference between marketing
and sellingand selling

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Marketing:
Identifies appropriate prospects
Effectively communicates image and capabilities of the firm
Creates awareness of, and emphasizes an appeal—
a differentiation factor— about the firm
Perfects customer service
Requests feedback from clients on a regular basis
Anticipates and meets needs, Marketing often necessitates cultural chang
every level in the firm

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Selling is:
•Proactive seeking of prospects
•Interacting to qualify prospects
•Effective acknowledgment of the prospect’s concerns
•Closing the sale—getting hired
•Following up and staying in contact when not hired

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Successful sellers use active listening skills and demonstrate the ability
to meet the prospect’s needs by conveying competence and confidence.
Sellers rely on the public's perception of expertise and/or excellence—a
product of marketing; therefore, they feel obligated to meet these
expectations and to follow through impeccably.
As with marketers, successful sellers also create positive moments of
truth, even if the firm is not hired, by representing the firm well.
Marketing and sales overlap slightly, and depend on each other, but
they are distinctly different.

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Relationship Marketing &Relationship Marketing &
Social MarketingSocial Marketing

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Relationship marketing has the aim to building mutually
satisfying long term relationship with key parties in order
to earn and retain their business.
 Relationship marketing builds strong economic,
technical and social ties among the parties
Relationship marketing is based on interaction within
networks of relationships
 Relationship marketing seen as relationship networks and
interaction

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CUSTOMER RELATIONSHIP MARKETING
 CRM is the values and strategies of relationship
marketing with particular emphasis on customer
relationship turned into practical application

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Social Marketing applies the principles of marketing to
address social problems by influencing behavior change.
Social marketing requires:
 A “customer” focused approach
 Voluntary behavior change
 An exchange
 Individual or societal benefit (rather than corporate benefit or
profit)
Social MarketingSocial Marketing
Social marketing seeks to develop and integrate marketing
concepts with other approaches to influence behaviors that benefit
individuals and communities for the greater social good.

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Strategic planning inStrategic planning in
marketing andmarketing and
Formulation of planFormulation of plan

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Planning is deciding in advance what is to be done and
how it is to be done. It bridges the gap between where
we are and where we want to go. It involves setting
objectives and formulating an action plan to achieve
them. It is needed for all function and at all levels of
management.
PlanningPlanning

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Used by community groups, government departments,
organizations and businesses to develop blueprint for
action and change
The process should be community based, inclusive and
participatory to allow for maximum stakeholder
involvement and input.

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 Defines mission, vision & values
 Establishes realistic goals, objectives & strategies
 Ensures effective use of resources
 Provides base to measure progress
 Develops consensus on future direction
 Builds strong teams
 Solves major problems
Benefits of Strategic PlanningBenefits of Strategic Planning

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o Focuses on achieving objectives.
o Is a primary function of management.
o Pervasive
o Continuous
o Futuristic
o Decision making
o Mental exercise
FeaturesFeatures

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Planning to Plan
Strategic Planning Team
 Board, staff, community volunteers
Strategic Planning Budget
 Establish budget, identify funding sources
Strategic Planning Facilitator(s)
 Identify a facilitator to lead the process
Strategic Planning Partners
 Internal board and staff
 External community groups/government
departments/others
Strategic Planning Process

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Basic model of SM

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Monitoring, evaluation, and disseminating information from
external and internal environments
–to key people in the firm
SWOT Analysis
•Strengths – Weaknesses
•Opportunities – Threats
Environmental scanning

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Development of long-range plans
for effective management of
opportunities and threats in light
of corporate strengths and
weaknesses.
Strategic formulation

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Vision statement
“Vision is the art of seeing things invisible”
Mission Statement
•Purpose/reason for organization
•Promotes shared expectations
•Communicates public image
•Who we are; what we do; what we aspire to
Strategic formulation

66. 67Corporate Goals/Objectives flow from the Mission/Vision
statement
Profitability (net profit)
Growth
Resource utilization (ROE, ROI)
Market leadership
Corporate Goals/Objectives need to be:
Specific
Measurable
Action oriented
Realistic
Timing is identified

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Process by which strategies and policies are put into action
through development of programs and procedures.
Programs – single use plans (projects)
Budgets – costs associated with a program
Procedures – system of sequential steps that describe
how a particular task or job is to be done.
Strategic implementation

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Process by which corporate activities and performance results
are monitored so that actual performance can be compared
with desired performance.
Feedback/Learning Process
Must go back tor revise or correct decisions made earlier.
Evolution and control