MARKETING ?

Mayank Mishra
National Institute of Management & Technology
Greater Noida
Marketing in a Changing World

Creating

Customer Value
&
Satisfaction
What
What is
is Marketing?
Marketing?

• Process by which individuals and groups

obtain what they need and want through
creating and exchanging products and
value with others.
More simply
• Marketing is the delivery of customer
satisfaction at a profit.
Core
Core Marketing
Marketing Concepts
Concepts

Needs,
Wants,
& Produc
Demand ts
s and
Servic
es
Core
Core
Marke Marketing
Marketing
ts Concepts
Concepts Value,
Satisfaction,
and Quality
Exchange,
Transactions &
Relationships
What
What Motivates
Motivates aa Consumer
Consumer
to
to Take
Take Action?
Action?

• Needs - states of felt deprivation including physical

needs for food, social needs for belonging and
individual needs for self-expression. i.e. I’m thirsty.

• Wants - form that a human need takes as shaped by

culture and individual personality. i.e. I want a Coca-
Cola.

• Demands - human wants backed by buying power. i.e.

I have money to buy a MECEDES.
What
What Will
Will Satisfy
Satisfy Consumer’s
Consumer’s
Needs
Needs and
and Wants?
Wants?
• Products - anything • Services - activities or
that can be offered to a benefits offered for
market to satisfy a sale that are
need or want. essentially intangible
and don’t result in the
Products also include: ownership of
Persons, Places, anything.
Organizations, Examples: banking,
Activities, and Ideas. airlines, haircuts, and
hotels.
 How
How Do
Do Consumers
Consumers Choose
Choose
Among
Among Many
Many Products
Products &
& Services?
Services?

• Customer Value - difference between the

value the customer gains from owning and
using a product and the cost of obtaining the
product.
• Customer Satisfaction - depends on the
product’s perceived performance in
delivering value relative to a buyer’s
expectations.
Both are closely linked to Quality and
Total Quality Management (TQM).(TQM)
 How
How dodo Consumers
Consumers
Obtain
Obtain
Products
Products and
and Services?
Services?
• Exchanges - act of obtaining a desired object from
someone by offering something, such as money,
another good, or a service, in return.

• Transactions - trade of values between parties: one

party gives X to another party and gets Y in return.

• Relationship Marketing - building long-term

relationships with valued consumers, distributors,
dealers, and suppliers.
Marketing
Marketing Management
Management
Philosophies
Philosophies
Production
Production Concept
Concept

Product
Product Concept
Concept

Selling
Selling Concept
Concept

Marketing
Marketing Concept
Concept

Societal
Societal Marketing
Marketing Concept
Concept
New
New Marketing
Marketing Challenges
Challenges

New
Marketing Nonprofit
Landscape & Marketing
Information
Technology

Emerging
Emerging
Ethical
Concerns
Challenges
Challenges Globalization

Changing
World
Economy
 Strategic Planning
&
The Marketing Process
Strategic
Strategic Planning
Planning Process
Process
• Strategic Planning : process of developing & maintaining a
strategic fit between the organization’s goals and capabilities
and its changing marketing opportunities.

• This process involves:

– Defining the Company Mission: Statement of an
organization’s purpose - what it wants to accomplish in the
larger environment.
– Setting Company Objectives and Goals: Supporting
objectives for each level of management.
– Designing the Business Portfolio: Collection of
businesses and products that make up the company.
– Planning Functional Strategies: Detailed planning for
each department designed to accomplish strategic
objectives.
Mission
Mission Statements
2-3
Statements
2-3

Market
Market
Oriented
Oriented

Motivating
Motivating Realistic
Realistic
Characteristics
Characteristics
of
of Good
Good Mission
Mission
Statements
Statements
Distinctive
Distinctive Specific
Specific
Competencies
Competencies

Fit
Fit Market
Market
Environment
Environment

Ó Copyright 1998 Prentice Hall

Designing
Designing the
the Business
Business Portfolio
Portfolio
• “The best portfolio is the one that best fits the
company’s strengths and weaknesses to
opportunities in the environment.”
• A Strategic Business Unit (SBU) is a unit of the
company:
– that has a separate mission and objectives, and
– that can be planned independently from other
company businesses.
• The company must:
– analyze its current business portfolio or Strategic
Business Units (SBU’s), and
– decide which SBU’s should receive more, less, or no
investment, and
– develop growth strategies for adding new products or
businesses to the portfolio.
 Analyzing
Analyzing Current
Current SBU’s:
SBU’s:
Boston
Boston Consulting
Consulting Group
Group Approach
Approach
Relative Market Share
High Low
Stars Question
Question Marks
Marks
Market Growth Rate
High

• High growth & share ••High

Highgrowth,
growth,low
lowshare
share
• Profit potential ••Build
Buildinto
intoStars/
Stars/phase
phaseout
out
• May need heavy ••Require
Requirecash
cashtotohold
hold
investment to grow market
marketshare
share
Cash
CashCows
Cows Dogs
Dogs
••Low ••Low
Lowgrowth
growth&&share
Lowgrowth,
growth,high
highshare share
Low

share
••Established, ••Low
Lowprofit
profitpotential
Established,successful
successful potential
SBU’s
SBU’s
••Produce
Producecash
cash
Problems
Problems With
With Matrix
Matrix Approaches
Approaches

Can
Canbe
beDifficult,
Difficult, Time-Consuming,
Time-Consuming, &&Costly
Costlyto
to Implement
Implement

Difficult
Difficultto
toDefine
Define SBU’s
SBU’s&&Measure
Measure Market
Market Share/
Share/ Growth
Growth

Focus
Focus on
on Current
CurrentBusinesses,
Businesses, But
But Not
Notfuture
futurePlanning
Planning

Can
CanLead
Leadto
toUnwise
UnwiseExpansion
Expansion or
or Diversification
Diversification
Developing
Developing Growth
Growth Strategies
Strategies
Product/ Market Expansion Grid

Existing New
Products Products
Existing
Markets 1. Market 3. Product
Penetration Development

New
Markets 2. Market
4. Diversification
Development
Product/
Product/ Market
Market Expansion
Expansion Grid
Grid
• Market Penetration:
Penetration making more sales to current
customers without changing products. How?
Cut prices, increase advertising, get products into
more stores.

• Market Development:
Development identifying and developing new
markets for its current products. How? Identify new
demographic or geographic markets.

• Product Development:
Development offering modified or new
products to current markets. How? New styles, sizes,
colors, or other modified products.

• Diversification:
Diversification start up or buy new businesses outside
of its current products and markets.
Marketing’s
Marketing’s Role
Role in
in Strategic
Strategic
Planning
Planning

Provides
Provides aa Provides
Provides Inputs
Inputs
Guiding
Guiding to
to
Philosophy
Philosophy Strategic
Strategic Planners
Planners

Designs
Designs Strategies
Strategies
for
for Reaching
Reaching
Unit’s
Unit’s Objectives
Objectives
A
A Company’s
Company’s Value
Value Chain
Chain
Each Deptt. of Company Carries Out Value-Creating
Activities to Design, Produce, Market, Deliver, and
Support the Firm’s Products.

Marketing
Marketing

Purchasing
Purchasing Customer
Customer Information
Information Systems
Systems

Operations
Operations
The
The Marketing
Marketing Process
Process
Demographic- Marketing Technological-
Economic Intermediaries Natural
Environment Environment

M an
si g
ly tin

ar n
Pl
s

ke i n
na e
A ar k
Product

tin g
M

g
Target
Suppliers Place Price Publics
Consumers

n
tio
M on

en ing
ar tr

Promotion

ta
C

em et
ke ol

p l rk
ti
ng

Political- Im Ma Social-
Legal Competitors Cultural
Environment Environment
Process
Process of
of Selecting
Selecting Target
Target Consumers
Consumers
• Market Segmentation:
Segmentation process of dividing a market into
distinct groups buyers (segments) with different needs, etc.
who might require separate products.
• Market Segment - consumers who respond in similar way to
a given set of marketing efforts.

• Market Targeting:
Targeting evaluating each market segment’s
attractiveness and selecting one or more target segments to
enter.

• Market Positioning:
Positioning products clear, distinctive and desirable
place relative to competing products in the minds of target
segments.
Marketing
Marketing Mix-
Mix- The
The Four
Four P’s
P’s
Product
Product Price
Goods-and-service
Goods-and-service Amount
Amount of of money
money
combination
combination aa consumers
consumers have have
company
company offers
offers aa to
to pay
pay to
to obtain
obtain
target
target market
market the
the product
product

Target
Target
Customers
Customers
Intended
Intended
Positioning
Positioning

Activities
Activities that
that Company
Company activities
activities
persuade
persuade target
target that
that make
make the
the
customers
customers to to buy
buy product
product available
available to
to
the
the product
product target
target customers
customers
Promotion Place
Four
Four Marketing
Marketing Management
Management Functions
Functions

Marketing
Marketing Analysis
Analysis of
of Company’s
Company’s Situation
Situation

Control
Planning
Planning Implementation
Implementation
Measure
Results
Develop
Develop Carry
Carry Out
Out the
the
Strategic
Strategic Plans
Plans Evaluate
Plans
Plans Results

Develop Take
Develop
Marketing Corrective
Marketing Action
Plans
Plans
Contents
Contents of
of aa Marketing
Marketing Plan
Plan
Executive Summary

Current Marketing Situation

Threats and Opportunities

Objectives and Issues

Marketing Strategy

Action Programs

Budgets

Controls
Marketing
Marketing Implementation
Implementation
Marketing
Marketing Strategy
Strategy

Decision
Human
Organizational and
Resources
Structure Reward

Action Climate and

Programs Culture

Implementation

Marketing
Marketing Performance
Performance
Marketing
Marketing Department
Department Organization
Organization
Functional
Functional

Combination
Combination
Plan
Plan Geographic
Geographic
Ways to
Carry Out
Marketing
Activities

Market
Market Product
Management Product
Management Management
Management
Marketing
Marketing Control
Control
Set
Set Marketing
Marketing Goals
Goals

Measure
Measure
Performance
Performance

Evaluate
Evaluate
Performance
Performance

Take
Take Corrective
Corrective
Action
Action
Marketing
Marketing Audits
Audits

Marketing Marketing
Marketing Marketing
Marketing
Mix Environment Strategy
Environment
Areas
Areas of
of Strategy
Assessment
Assessment
in
in Marketing
Marketing
Marketing Audits
Audits
Productivity &
Profitability
Marketing
Marketing Marketing
Marketing
Systems
Systems Organization
Organization
THANK
THANK YOU
YOU !!