MARKETING MANAGEMENT

Session-2
 MARKETS

It is the set of actual and potential buyers of a product or service.

These buyers share a particular need or want that can be satisfied through exchange relationship.

Customer managed relationships

Company

Marketing
Suppliers Final Consumer
Intermediaries

Competitors

Major Environmental forces

Marketing Management By Ashish Bollimbala at IIT Mandi

 DESIGNING A CUSTOMER VALUE-DRIVEN MARKETING
STRATEGY & PLAN
Selecting Customers to Serve

Dividing the market into segments of customers (market segments) and selecting which segment it will go after (target
marketing).

Choosing a Value Proposition

Decide how the marketer will serve the target audience. I.e., How it will differentiate and position itself in the
marketplace.
A brand’s value proposition is the set of benefits or values it promises to deliver to consumers to satisfy their needs.

E.g., Zee5
https://www.youtube.com/watch?v=5Ldjp_JVI2U

NETFLIX
https://www.youtube.com/watch?v=8fL0Mk3pxbA

Marketing Management By Ashish Bollimbala at IIT Mandi

 DESIGNING A CUSTOMER VALUE-DRIVEN MARKETING
STRATEGY & PLAN
Marketing Management Orientation

There are 5 under which organizations design and carry out their marketing strategies

The Production concept: The consumers will favor more those products that are readily available and affordable. Runs the
risk of marketing myopia

The Product Concept: The consumers will favor products that offer best quality, performance, & features. This also leads to
myopia.

The selling Concept: The consumer will not buy enough of firm’s product unless it undertakes a large-scale selling and
promotion efforts. Typically unsought goods and services like insurance, blood donation etc., require this concept. It takes
inside-out perspective.

The Marketing Concept: Understanding the customers wants and delivering the desired satisfaction better than
competition. It is an outside-in perspective.

The Societal Marketing Concept: Marketing strategies should deliver value to customers in a way that maintains or
improves both the consumer’s and society’s well-being. E.g., Fast fashion.
Marketing Management By Ashish Bollimbala at IIT Mandi
 PREPARING AN INTEGRATED MARKETING PLAN

IMC builds customer relationships by transforming the marketing strategy into action.

Marketing mix consists of 4P’s.

Product

Price

Place

Promotion

Marketing Management By Ashish Bollimbala at IIT Mandi

 MANAGING CUSTOMER RELATIONSHIP AND
CAPTURING CUSTOMER VALUE
Customer Relationship Management

It is the overall process of building and maintaining profitable customer relationships by delivering superior customer value
and satisfaction.

Relationship Building Blocks

Customer-perceived value: Customers most often do not judge value and cost “accurately” or “objectively”. They act on
perceived value.

Customer Satisfaction: Depends on the product’s perceived performance relative to a buyer’s expectations.

Customer-centric firms do not always attempt to maximize customer satisfaction. The quest may involve lowering the price
or providing more service which may eat into profits.

Marketing Management By Ashish Bollimbala at IIT Mandi

 MANAGING CUSTOMER RELATIONSHIP AND
CAPTURING CUSTOMER VALUE
Customer relationship Levels & Tools
Basic relationship: low margin products (e.g., FMCG). Marketers predominantly use Ads and social media.
Full partnership: High-margin products (e.g., B2B sales). Marketers provide customized solutions and
Frequency Marketing Program: Loyalty and reward schemes (e.g., Air Miles)

Marketing Management By Ashish Bollimbala at IIT Mandi

 MANAGING CUSTOMER RELATIONSHIP AND
CAPTURING CUSTOMER VALUE
Customer engagement and Today’s Digital and Social Media.

Customer engagement marketing is about fostering direct and continuous customer involvement in shaping brand
conversations, brand experiences, & brand community.
https://www.youtube.com/watch?v=FSFd3mw8oIg

Consumer-Generated Marketing
This is where the consumers themselves play role in shaping their own brand experiences and those of others.
Consumers become the brand ambassadors.
https://www.youtube.com/watch?v=0aBds-Rh1F8
It can also sideways
Twitter campaign by McDonald’s #McDStories was in anticipation of heartwarming stories about happy meals.
Instead it was turned into “bashtag” by disgruntled consumers who posted less-than-appetizing messages.
Marketing Management By Ashish Bollimbala at IIT Mandi
 MANAGING CUSTOMER RELATIONSHIP AND
CAPTURING CUSTOMER VALUE
Creating Customer Loyalty and Retention

Customer satisfaction leads to loyalty

Loyalty makes good economic sense. Loyal customers spend more and stay around longer.
It is 5 times cheaper to keep an old customer than acquiring a new one.

Customer lifetime value

It is the value of the entire stream of purchase a customer makes over a lifetime of patronage.

Building Customer Equity

It is the total combined customer lifetime values of all of the company’s current and potential
Customer.

E.g., Cadillac Vs BMW in 70’s & 80’s.

Marketing Management By Ashish Bollimbala at IIT Mandi

 MANAGING CUSTOMER RELATIONSHIP AND
CAPTURING CUSTOMER VALUE
Building the right relationships with right customers

Butterflies True friends

Potential Profitability
High

Strangers Barnacles
Low

Short-term Long-term
Projected Loyalty

Marketing Management By Ashish Bollimbala at IIT Mandi

THE NEW MARKETING REALITIES

Marketing Management By Ashish Bollimbala at IIT Mandi

 ORGANIZING THE MARKETING DEPARTMENT

 Functional organization

 Geographic organization

 Product or brand organization

 Market organization

 Matrix organization

Marketing Management By Ashish Bollimbala at IIT Mandi

A DEEPER DIVE INTO COMPANY AND
MARKETING STRATEGY

Marketing Management By Ashish Bollimbala at IIT Mandi

 COMPANY-WIDE STRATEGIC PLANNING:
DEFINING MARKETING’S ROLE
Strategic Planning
It is the process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its
changing marketing opportunities.

Mission Statement
It is a statement of the organization’s purpose- what it wants to accomplish in the larger environment.
Business Unit, product,
Corporate Level & market level

Planning marketing
Defining the Setting company Designing the
and other functional
company mission objectives and goals business portfolio
strategies

Marketing Management By Ashish Bollimbala at IIT Mandi

 PLANNING ACTIVITIES

 Defining the corporate mission

• It should be specific and limited number
• Focus on company’s values
• Define who the company is serving
• Long-term view
• Keep it simple and short (KISS)

 Building the corporate culture

• It is shared experiences, stories, beliefs, and norms that characterizes an organization.

 Establishing strategic business units (It exists separate from rest of the company, has own competition, manage P&L)
• Specialized portfolio
• Diversified portfolio

 Assigning resources
 ANALYZING THE CURRENT BUSINESS PORTFOLIO

TataCliq, TCS
Westside

Tata Teleservices,
Real Estate, Titan,
Insurance Tata Steel

Marketing Management By Ashish Bollimbala at IIT Mandi

DEVELOPING STRATEGIES FOR GROWTH &
DOWNSIZING

The Product/Market Expansion Grid

Existing New
Products Products

Existing Market Product

Markets Penetration Development

New Market
Markets
Diversification
Development

Marketing Management By Ashish Bollimbala at IIT Mandi