MARKETING

by
Dr. Onkar Nath
Faculty Sir SPBT Collee! M"MBAI
MARKETING CONCEPT
A situation where buyers and sellers of a
commodity interact
Comin! to!ether of buyers and sellers of
the same or similar commodities
T"PE# O$ MARKET
Geo!ra%hical Area
Product
Nature of Transaction
&olume of Transaction
MARKETING
Mar'etin! is the %rocess of determinin!
consumer demand for a %roduct or ser(ice)
moti(atin! its sale and distributin! it into
ultimate consum%tion at a %rofit
A mana!ement function
A *usiness Philoso%hy
E&O+,TION O$ MO-ERN MARKETING
Industrial re(olution
-i!ital re(olution
*arter #ystem
Customer and mar'et dri(en
.ants of customers
CRM
Customer #atisfaction
Nothin! is worthwhile unless it
touches the customer
MARKETING &# #E++ING
MARKETING MANAGEMENT
A %rocess of %lannin! and e/ecutin! the
conce%tion) %ricin! ) %romotion and distribution of
!oods and ser(ices and ides to create
e/chan!es with tar!et !rou%s that satisfy
customer and or!ani0ational ob1ecti(es
$,NCTION# O$ MARKETING MANAGEMENT
Analysis
Plannin!
Im%lementation
Control
IMPORTANCE O$ MARKETING $OR
IN-IAN *ANK#
2The rele(ance of a!!ressi(e mar'etin!
in ban's has come to the fore as ne(er
before2 3 M N Goi%oria
C4ARACTERI#TIC# O$ #ER&ICE#
Intan!ibility
Inse%arability
4etero!eneity
Perishability
#ER&ICE
A ser(ice is any act or %erformance that
one %arty can offer to another that is
essentially intan!ible and does not result
in the ownershi% of anythin! It5s
%roduction may or may not be tied to
%hysical %roduct
S.No. S.No.
Phy#ical Goo$#
Phy#ical Goo$#
Ser%ice#
Ser%ice#
6
6
Tan!ible
Tan!ible
Intan!ible
Intan!ible
7
7
4omo!eneous
4omo!eneous
4etero!eneous
4etero!eneous
8
8
Product and distribution
Product and distribution
se%arated from
se%arated from
consum%tion
consum%tion
Production) distribution
Production) distribution
and consum%tion re
and consum%tion re
simultaneous %rocess
simultaneous %rocess
9
9
A thin!
A thin!
A acti(ity
A acti(ity
:
:
Core (alue %roduced in
Core (alue %roduced in
factory
factory
Core (alue %roduced in
Core (alue %roduced in
buyer3seller interaction
buyer3seller interaction
;
;
Customers do not
Customers do not
%artici%ate in the
%artici%ate in the
%roduction %rocess
%roduction %rocess
Customers %artici%ate in
Customers %artici%ate in
%roduction
%roduction
<
<
Can be 'e%t in stoc'
Can be 'e%t in stoc'
Cannot be 'e%t in stoc'
Cannot be 'e%t in stoc'
=
=
Transfer of ownershi%
Transfer of ownershi%
No transfer of ownershi%
No transfer of ownershi%
MAREKTING O$ $INANCIA+ #ER&ICE#
Intan!ibility) inse%arability and hetero!eneity are
manifested at both strate!ic and tactible le(els in
ser(ices mar'etin!
Mar'etin! strate!y %ro(ides the or!anisation with
a sustainable com%etiti(e ad(anta!e in the
mar'ets it o%erates
Or!ani0ation should understand consumer needs
and identifies how those consumers should be
!rou%ed into different mar'et se!ments
Product attributes) %ricin! decisions) methods of
distribution and communication should all see' to
reflect the chosen %osition
*ANK MARKETING
Pro(ides ser(ices
Aimed to satisfy customer5s needs and
wants
Needs and wants may be non financial in
nature
Com%etiti(e element) efficiency and
effecti(eness
Or!ani0ational ob1ecti(es are still the
dri(in! force
Commercial ob1ecti(e to ma'e %rofit
#ocial Ob1ecti(es
Essentials for a *an's #uccess
Cannot e/ist without customer
Create) win and 'ee% customers
Or!ani0ational desi!n should be
oriented to the customer
-eli(er total satisfaction to the
customer
Customer satisfaction is affected by
the %erformance of all the %ersonnel of
the ban'
MARKETING MI>
Key conce%t in the modern mar'etin!
Considered to be core of mar'etin!
It is the set of tools that the firm uses to
%ursue its mar'etin! ob1ecti(es in the tar!et
mar'et
-ecisions must be made for both the
distribution channels and the final
consumers
Marketing Lessons
Product
Price
Place
Promotion
Consumer
Cost
Convenience
Communication
OLD New
.inin! com%anies are those that can
meet customer needs economically and
con(eniently and with effecti(e
communication
#er(ices Mar'etin! Mi/ ? <P5s
Product) Price) Place) Promotion) Peo%le) Physical
e(idence) Process
PRO-,CT
A %roduct is anythin! that can be offered
to a mar'et for attention) ac@uisition) use
or consum%tion that mi!ht satisfy a want
or need
PRO-,CT PER#ONA+IT"
T4E CORE
T4E A##OCIATE- $EAT,RE#
T4E *RAN- NAME A +OGO
T4E PACKAGE AN- +A*E+
PRO-,CT +E&E+#
Core benefit) basic %roduct) e/%ected
%roduct) Au!mented %roduct and Potential
%roduct
PRO-,CT CATEGOR"
-urability) tan!ibility and use
Product item) Product +ine) Product mi/
*an'in! %roduct
PRO-,CT P+ANNING
The %rocess of %roduct %lannin! consists
of determinin! the strate!ies in res%ect of
(arious elements Product +ine) Product
Mi/) *randin!) Pac'a!in! and New
%roduct de(elo%ment
PRO-,CT +I$E C"C+E
Introduction) Growth) Maturity) -ecline
The %roduct +ife cycle o%erates at three
le(els %roduct le(el) %roduct sub cate!ory)
brand le(el
.EAKNE## O$ P+C CONCEPT
,ndefined conce%t
No uniform sha%e
,n%redictable turnin! %oints
,nclear im%lications
PRO-,CT #TRATEGIE#
#trate!ies based on Product Mi/
#trate!ies based on Product +ife Cycle
PRO-,CT MO-I$ICATION
Buality Im%ro(ement
$eature Im%ro(ement
#tyle Im%ro(ement
PRO-,CT E+IMINATION
GRO.T4 #TRATEGIE#
Intensi(e
Inte!rated
-i(ersification
NE. PRO-,CT -E&E+OPMENT
Idea #creenin!
Conce%t Testin!
Product -e(elo%ment
Test Mar'etin!
Commercial +aunch
-I&ER#I$ICATION
Concentric -i(ersification ? technolo!ically
related but the tar!et customers are entirely different
4ori0ontal -i(ersification 3 technolo!ically
unrelated but the tar!et customers are same
Con!lomerate -i(ersification ? no relationshi%
with the e/istin! %roduct
*RAN-ING
+ine E/tension
*rand E/tension
Multi brands
New *rands
PACKAGING
Primary Pac'a!e
#econdary Pac'a!e
#hi%%in! Pac'a!e
+A*E++ING
Identify the %roduct or brand
-escribin! information
Promotin! the %roduct throu!h Cattracti(e
!ra%hicsC
PRICING
Price is the sum (alue of all the (alues
that consumers e/chan!e for the benefits
or ha(in! or usin! the %roduct or ser(ice
-ifferent forms 3 Goods bou!ht) hire
char!es) tution fees
-ynamic Pricin! 3 &aryin! %rices
$le/ibility
O*DECTI&E O$ PRICING
Profit
#ur(i(al
Mar'et #hare
Cash $low
#tatus Buo
Product Buality
Communicatin! Ima!e
#hort termE+on! term
$ACTOR# IN$+,ENCING PRICING
The CustomerCs -emand #chedule
The Cost $unction and
Com%etitors Prices
PRICING MET4O-#
Mar' u% Pricin!
&ariable costs and contribution for fi/ed costs
Absor%tion cost Pricin!
mar!in for %rofit
Tar!et Return Pricin!
Return on the in(estment
Mar!inal cost Pricin!
-irect (ariable costs are fully reali0ed
Only a %ortion of fi/ed costs may reali0ed
Percei(ed &alue Pricin!
*uyer5s %erce%tion of (alue
&alue Pricin!
Product with hi!h (alue at a fairly low %rice
Goin! Rate Pricin!
*ased on com%etitor5s %rices
PRICING MET4O-# FContdG
Auction Ty%e Pricin!
En!lish Auctions
One seller many buyer
-utch Auctions
#ealed *id Auctions
Grou% Pricin!
Pricing Strategies
Geographical pricing
Price discount and allowances
Psychological pricing
Promotional pricing
Loss-leader pricing
Loss is covered by sale of other items
Special event pricing
Cash rebates
Low-interest fnancing
Longer payment terms
Warranties and service contracts
Psychological discounting
Pricing Strategies (Contd!
-iscriminatin! %ricin!
$irst de!ree
different %rices to each customer de%endin!
u%on their intensity of demand
#econd de!ree
+ower %rices for buyers of a lar!er (olume
Third de!ree
Customer !rou%s ? student) senior
citi0en
Product form
Ima!e %ricin!
Channel
+ocation
Time
Pricin Strateie# &Cont$.'
Product-mi" pricing
Product line pricing #developing
product line
Captive-product pricing # main
product at lower price$ ancillary product at
higher price
%wo-part pricing # split into f"ed and
variable component
&y-product pricing # by-products
obtained in production of other products
Product-bundling pricing
'ar(et s(imming pricing
'ar(et-penetration pricing
)istribution
)istribution channel
'ar(eting channels are sets
of independent
organi*ations involved in
the process of ma(ing a
product or service available
for use of consumption
$unctions of distribution channels
Mar'et information
Promotion
Contact
Matchin!
Ne!otiation
Product information
Physical distribution
$inancin!
Channels types
Channel +$ Channel ,$ Channel -$ Channel .$
/actor in0uencing channel section
Product characteristics
Perishable products
Consumer durables
1ndustrial products
'ar(et characteristics
Customer characteristics
Company resources
Competition
Product lines
Channels for ban(ing products
1ntangibility
1nseparability
2ariability
Perishability
Client relationship
&ranches
3ther channels
%ele-ban(ing
4%'s
Computeri*ation
Plastic Cards
2irtual branches and automated video ban(ing
1ntermediaries in ban(ing
services
)S4
4utomobile )ealers
'erchant establishments
Physical distribution
%ransportation
Warehousing
1nventory
%as(s of physical distribution
/orecasting
3rder processing
1nventory management
Storage
Protective pac(aging
%ransportation
Promotion
5ole of promotion
Persuasion
1nform
5eminding
5einforcing
Promotion mi"
Advertising
Personal
selling
Sales
Promotion
Public
Relations
Direct
Marketing
&lended 'i" of Promotion %ools
Promotion mi/ strate!ies
H
Push strate!y 3Retailer
H
Pull strate!y 3 Customer
$actors influencin! %romotion mi/
H
Ty%es of %roductEmar'et
H
*uyer5s readiness sta!e
H
P+C sta!e
Promotion mi/ inte!ration
Mar'etin! Information #ystem FMI#G
$eatures of MI#
Master Plan
Coordination
$uture Orientation
Com%uteri0ed En(ironment
Analyse Buantitati(e Information
Re!ular flow of Information
$unctions of MI#
Collectin! and assemblin! data
Processin! of data
Analysis of data
#tora!e of data
-iscrimination of information
Need of MI#
Com%le/ mar'etin! acti(ity
Knowled!e Einformation e/%losion
Communication !a%
Prom%t decision
Non3%rice com%etition
Kinds of information needed
H
Information about mar'et forces
H
Information about the ban'5s mar'et
beha(iour
H
Internal information
Com%onents of MI#
H
Internal mar'etin! information
H
Mar'etin! intelli!ence system
H
Mar'etin! research system
Ad(anta!es of MI#
? ueries
Q