MARKETING MANAGEMENT

Dr. Onkar Nath

Chief, Information Security, Central Bank of India CISSP(USA), CISA(USA), CISM(USA), IDLA(USA) CAIIB(India), Ph.D.(P.U, India), Ph.D. (AMSE, France), M.Sc.(Maths.), MBA (HR), PGDCM, FRAS(UK), FAMSE(France), FWAI(India)

MARKETING CONCEPT A situation where buyers and sellers of a commodity interact. Coming together of buyers and sellers of the same or similar commodities MARKETING Marketing is the process of determining consumer demand for a product or service, motivating its sale and distributing it into ultimate consumption at a profit

EVOLUTION OF MODERN MARKETING

Barter System Industrial revolution Digital revolution Customer and market driven Wants of customers CRM Customer Satisfaction Nothing is worthwhile unless it touches the customer

The Core Concepts of Marketing

Needs, wants and demands Products (Goods, Services, and Ideas) Value, Cost and Satisfaction Exchange and transactions

Relationship and Networks

Marketers and Prospects

MARKETING MANAGEMENT

A process of planning and executing the conception, pricing , promotion and distribution of goods and services and ides to create exchanges with target groups that satisfy customer and organizational objectives.

Processes involved
Analysis, planning, implementation, and control; Covers goods, services, and Ideas;

Rests on the notion of exchange; and

Goal is to produce satisfaction for the parties involved

Company Orientation towards the Marketplace (Marketing Concepts)

Production Concepts/Orientation Product Concept/Orientation Selling Concept/Orientation Marketing Concept/Orientation Societal Marketing Concept

SERVICE
A service is any act or performance that one party can offer to another that is essentially intangible and does not result in the ownership of anything. Its production may or may not be tied to physical product.

CHARACTERISTICS OF SERVICES
Intangibility Inseparability Heterogeneity Perishability

S.No.

1. 2. 3.

4. 5.

6.

7. 8.

Physical Goods Tangible Homogeneous Product and distribution separated from consumption A thing Core value produced in factory Customers do not participate in the production process Can be kept in stock Transfer of ownership

Services Intangible Heterogeneous Production, distribution and consumption re simultaneous process A activity Core value produced in buyer-seller interaction Customers participate in production Cannot be kept in stock No transfer of ownership

Marketing Planning
Macro- and Macro-Factors influencing the market for an organization's goods and services
Controllable Marketing Variables and the MacroEnvironment

Demographic Factors
SKIPPIES : School Kids with Income and Purchasing Power MOBYS : Mother Older, Baby Younger DINKS : Dual Income No Kids DEWKS : Dual Earners With Kind PUPPIES : Poor Urban Professionals WOOFS : Well-Off Older Folks

Economic Factors

Natural Factors
Technological factors Political and Legal factors

Social and Cultural Factors

Proximate Macro-Environment
Competitive Environment

Supplier Environment
Distributive Environment Scanning and Adaptive to the Environment Intra-Firm (Micro) Environment

Applicability to Banking
The competition environment in banking Retail Banking Technology impact on product/service scenario The changes in distribution plans

The outsourcing or contracting out of non-core bank services

Privatization

Globalization
Corporate banking Insurance

Meaning and importance of planning in marketing

Traditional planning Difference between a marketing plan and a companys corporate plan Market-oriented strategic planning Difference between marketing plan and marketing planning process Marketing planning (process) Marketing plan Annual-plan control

Banking regulation and its impact on marketing strategies

Bank rate Open market operations Current scenario

Consumer behaviour Consumer behaviour : A directional Force The complexity of consumer Buying Decisions

Needs and Motives

Physiological needs Safety needs

Social needs Esteem needs Self-actualization

Individual Perception
Selective perception Theory of cognitive dissonance

Learning and Habit development

Habit-breaking Habit-acquisition Habit-reinforcement

Behaviour Models for Analyzing Buyers

The Marshallian Economic Model The individual buyer seeks to spend his income on those goods that will deliver the most utility or value according to his tastes and relative prices. The Pavlovian Learning Model Learning was largely an associative process and a large component of behaviour was conditioned that way.

Behaviour Models for Analyzing Buyers (Contd..)

The Freudian psychoanalytic Model Motivational wellsprings are not obvious to the casual observer nor deeply understood by the individual himself The Veblenian Social Psychological Model Culture Sub-cultures Social Class Reference Groups Face-to-Face Groups Parent Hobbesian Organizational Factors Model How organizational buyers make their decisions

Swinging singles to solitary survivors Family buying roles

Initiator
Influencer Decider Purchaser User

Factors Influencing Consumer Behaviour in Banking

Location

Safety
Returns Customer Service Range of Services Easy Documentation and well-defined Eligibility Criteria

The art of customer service as applied to banking Building customer satisfaction through quality, service, and value Customer Value satisfaction Defining service quality Managing Quality Delivering Customer Value and Satisfaction: Moments of Truth
Well-conceived strategy for service Customer-oriented front-line people Customer-friendly systems

The Triangle Of Service

Customer-service strategy connection customer-people organization connection Customer-system connection Systems-people; Strategy-systems; Strategypeople Connections

Customer Relationship in Services Marketing

Giving Promises: The traditional or External Marketing Fulfilling Promises: Internal and Interactive Marketing Customer Care

Consumer and Market Segmentation Criteria for market segmentation

Meaningful Measurable

Useful and reachable

Consumer and Market Segmentation

Mass Markets and Segmentation Types of Consumer Segments: Traditional and Modern Characteristics of segments : demographic, geographic, psychographics, behaviouristic and volume Benefits and Disadvantages of Market Segmentation Alternative Strategies: undifferentiated and differentiated Evaluation Marketing Segmentation Strategy: Techniques Application of Segmentation of Banking Services

Marketing Research
Marketing research is research all about the market: its size, composition, structure and so on

Marketing Research Process

Types of data Primary and Secondary data Quantitative and Qualitative Research Methodologies Time and cost constraints The major uses of Marketing Research Marketing Information System

Marketing Mix
Marketing of financial services Bank marketing Service marketing mix

Current development

Competitor Analysis
Gap Psychiatry A structural Methodology Build a strategic planning knowledge base Creating a sustainable advantage

Speeds as Strategy
Competitive Strategies

Product Strategy
Nature of product Product and service Elements of Product Mix Product Life Cycle and Product Strategies Product Analysis New Product Development

Branding and Marketing

Role of Brand in Bank Marketing

The Concept of Product/Service Delivery

Process Cycle in Product Development Packaging and Delivery

Pricing Strategy and its Application in Banking

Pricing for Profitability Elasticity of demand Pricing Methods/Strategies

Pricing Decisions
Pricing Concept in Banking Pricing Review and Committees Concept of Service Fees

Bank Distribution Strategies

Distribution of Financial Services Barriers Channels of Distribution for Banks

Promotion Strategy
Communication Process Goals of Communication Advertising and Sales Promotion Sales Promotion Publicity Internal Communication

Marketing Information System (MIS)

Moments of Truth: Customer Care

Sales Training and HRD in Marketing

Proper Attitude Orientation of Staff Selling Skills Required

Need and Importance of Sales Training

Sales Training and Strategy Selling process Impact of Training as HRD Intervention in Marketing Direct Sales Force

Importance of Quality Service

Public Relation and Institution Image

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