MARKETING MANAGEMENT A South Asian Perspective

13th edition

1 Defining Marketing for the 21st Century

Kotler

Keller

Koshy

&

Jha

What is Marketing?
1-2

Marketing 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 stakeholders.

What is Marketing Management?

1-3

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.

Marketing vs Selling
1-4

There will always , one can assume, be need for some selling. But the aim of marketing is to make selling superfluous. The aim of marketing is to know and understand the customer so well that the product or service fits him and sells itself. Ideally, marketing should result in a customer who is ready to buy. All that is needed then is to make the product or service available. Peter Drucker

For an exchange to occur..

1-5

There are at least two parties. Each party has something that might be of value to

the other party. Each party is capable of communication and delivery. Each party is free to reject the exchange offer. Each party believes it is appropriate or desirable to deal with the other party.

What is Marketed?
Goods Services Events Experiences Persons
1-6

Places Properties Organizations Information Ideas

Demand States
Negative Nonexistent Latent Declining
1-7

Irregular Unwholesome Full Overfull

Key Customer Markets

1-8

Consumer markets Business markets Global markets Nonprofit/Government markets

The marketplace isnt what it used to be.

Changing technology Globalization Deregulation Privatization
1-9

Empowerment Customization Convergence Disintermediation

Company Orientations
110

Production Product Selling Marketing Holistic Marketing

Holistic Marketing
1-11

Development, design, and implementation of

marketing programs, processes and activities that recognizes their breadth and interdependencies

Holistic Marketing
1-12 Marketing Senior Other Department Management Departments Communications Products & Services Channels

Internal Marketing Holist ic Mark eting

Sales Revenue Brand Equity Ethics

Integrated Marketing

Performanc e Marketing
Legal Community

Relationshi p Marketing
Customers Channel Partners

Environment

Marketing Mix and the Customer

1-13

Four Ps

Four Cs

Product Price Place Promotion

Customer solution Customer cost Convenience Communication

Core Concepts
Needs, wants, and
114

Marketing channels Supply chain Competition Marketing environment Marketing planning

demands Target markets, positioning, segmentation Offerings and brands Value and satisfaction

I want it, I need it..

1-15

5 Types of Needs

Stated needs Real needs Unstated needs Delight needs Secret needs

Marketing Management Tasks

Developing marketing
116

Shaping market offerings Delivering value Communicating value Creating long-term growth

strategies Capturing marketing insights Connecting with customers Building strong brands

MARKETING MANAGEMENT A South Asian Perspective

13th edition

2 Developing Marketing Strategies and Plans

Kotler

Keller

Koshy

&

Jha

3 Vs Approach to Marketing
118

Define the value segment Define the value proposition Define the value network

Benchmarks
119

Organizational costs and performance measures

Competitor costs and performance measures

Core Business Processes

120

Market sensing New offering realization Customer acquisition

Customer relationship management Fulfillment management

Characteristics of Core Competencies

1-21

A source of competitive advantage Applications in a wide variety of markets Difficult to imitate

Challenges Facing CMOs

122

Doing more with less Driving new business development Becoming a full business partner

Levels of a Marketing Plan

123

Strategic

Tactical

Target marketing

decisions Value proposition Analysis of marketing opportunities

Product features Promotion Merchandising Pricing Sales channels Service

Corporate Headquarters Planning Activities

124

Define the corporate mission Establish SBUs Assign resources to each SBU Assess growth opportunities

Good Mission Statements

125

Focus on limited number of goals Stress major policies and values Define major competitive spheres

Major Competitive Spheres

Industry Products Competence
126

Market segment Vertical channels Geographical

Rubbermaid Commercial Products, Inc.

127

Our vision is to be the Global Market Share

Leader in each of the markets we serve. We will earn this leadership position by providing to our distributor and end-user customers innovative, high-quality, costeffective and environmentally responsible products. We will add value to these products by providing legendary customer service through our uncompromising Commitment to Customer Satisfaction.

Motorola
128

The purpose of Motorola is to honorably

serve the needs of the community by providing products and services of superior quality at a fair price to our customers; to do this so as to earn an adequate profit which is required for the total enterprise to grow; and by doing so, provide the opportunity for our employees and shareholders to achieve their personal objectives.

eBay
129

We help people trade anything on earth. We will continue to enhance the online trading experiences of all collectors, dealers, small businesses, unique item seekers, bargain hunters, opportunity sellers, and browsers.

Dimensions That Define A Business

130

Custome r groups

Custome r needs

Technolo gy

Characteristics of SBUs
1-31

It is a single business or collection of related

businesses It has its own set of competitors It has a leader responsible for:

Strategic planning Profitability Efficiency

Organizations
132

Culture Policies Structure

Market Opportunity Analysis (MOA)

133

Can the benefits involved in the opportunity be

articulated convincingly to a defined target market? Can the target market be located and reached with cost-effective media and trade channels? Does the company possess or have access to the critical capabilities and resources needed to deliver the customer benefits?

Market Opportunity Analysis (MOA)_2

134

Can the company deliver the benefits better than any

actual or potential competitors? Will the financial rate of return meet or exceed the companys required threshold for investment?

Goal Formulation and MBO

135

Requirements for using MBO Units objectives must be hierarchical Objectives should be quantitative Goals should be realistic Objectives must be consistent

Porters Generic Strategies

136

Overall cost leadership Differentiation Focus

Categories of Marketing Alliances

137

Product or Service Alliances Promotional Alliances Logistics Alliances Pricing collaborations

Marketing Plan Contents

138

Executive summary Table of contents Situation analysis Marketing strategy Financial projections Implementation controls

Evaluating a Marketing Plan

139

Is the plan simple? Is the plan specific? Is the plan realistic? Is the plan complete?