MARKETING

MANAGEMENT 1
An Introduction to
Marketing

Marketing is an Exchange
The customer seeks benefits from the company and pays
for the product.

Customer

Company
The company offers benefits to its customers and seeks
profits.

What We Can Market

Goods
Services
Experiences
Events
People

Places
Information
Ideas
Industries
Companies

The Marketing Framework

5 Cs
STP
4Ps

The Marketing Framework 5 Cs

Begin with situation analysis:
Customers- Who are they? What are they like? Do we
want to draw different customers?
Company- What are our strengths and weaknesses?
What customer benefits can we provide?
Context- What is happening in our industry that might
reshape our future business?
Collaborators- Can we address our customers needs
while strengthening our B2B partnerships?
Competitors-Who are the competitors we must consider?
What are their likely actions and reactions?

The Marketing Framework- STP

With the background analysis, proceed to
strategic marketing planning via STP:
Segmentation: Customers arent all the same;
they vary in their preferences, needs and
resources
Targeting: Attracting some of those customers
makes better sense than going after all
Positioning: Communicate your benefits clearly
to your intended customers

The Marketing Framework- 4Ps

Marketing tactics to execute the planning:
Product- Will customers want what your company
is prepared to produce?
Price- Will customers pay what youd like to
charge?
Place- Where and how will customers purchase
your market offering?
Promotion- What can you tell your customers or
do for them to entice them to purchase?

The 4Ps Components

Marketing Mix

Place
Product

Channels

Variety

Coverage

Quality

Price

Promotion

Locations

Design

List price

Sales promotion

Inventory

Features

Discounts

Trade promotion

Logistics

Brand name

Credit
terms

Advertising

Services
Warranties
Returns

PR/Publicity
Personal
Selling/Direct
Marketing

Marketing
is
meeting needs
profitably

MASLOWS HIERARCHY OF NEEDS

What is a Product?
A particular bundle of benefits which satisfies
particular
needs and wants.

Anything that can be offered to a market to satisfy

a want or
need.

Products include tangible goods, intangibles, ideas.

(for the purpose of class discussion, the word product would imply all
of these)

Changing Concepts in Marketing

The Production concept
Holds that consumers will prefer products
that are widely available and inexpensive
The Product concept
Holds that consumers will favor those
products which offer the best quality,
performance or innovative features
The Selling concept
Whatever is produced will sell

Marketing Management Philosophies

Customer-Driven
Societal
Societal Marketing
Marketing Concept
Concept
Marketing
Marketing Concept
Concept
Selling
Selling Concept
Concept
Product
Product Concept
Concept
Production
Production Concept
Concept

Marketing and Sales Concepts Contrasted

Societal Marketing Concept

Value
The benefits that the customer derives
out of the
product over and above the cost of the
product .
Benefits

= Functional + Emotional

Costs
= Monetary + Time + Energy +
Opportunity

The marketer can increase the value of the customer offering in

several ways :

Raise benefits
Reduce costs
Raise benefits and reduce costs

Customer / Consumer
A Customer may be defined as
- A potential consumer of a product OR
- A person who is targeted by through
communication

A Consumer may be defined as

- One who consumes the product

Customer Satisfaction
Dependent on the products perceived
performance relative to a buyers
expectations.

Customer Perceived Value

Customers evaluation of the difference
between all the benefits and all the costs
of a marketing offer relative to those of
competing offers.

Customer Relationship Management

The process of building and maintaining

profitable customer relationships by
delivering superior customer value and
satisfaction.

Customer Loyalty &

Retention
Customer Lifetime
Value
The entire stream of
purchases that the
customer would make
over a lifetime of
patronage.
Share of Customer
The share a
company gets of the
customers
purchasing in their
product categories.

Issues & Challenges in

Marketing in India

High volatility in market

Diversity & convergence
Catering to the affluent
Poor markets also need marketing
Engaging customer 24 x 7
Enhancing access

Issues & Challenges in Marketing

in India
Price and value major determinants in
consumption behavior
Indian global brands..?
Ecology sensitivity
Word of mouth a stronger influence in
adoption

Marketing Fundamentals
The very essence of marketing is satisfying
customer needs
The Marketing function develops a value
proposition to satisfy those needs
An
important
function
of
Marketing
is
promotion
The Marketing function strives to develop a
sustainable competitive advantage through
product
features,
technology,
pricing,
positioning and placement, and organizational
learning
All other functions are strategically aligned to
meet Marketings objectives
In todays competitive global marketplace,
companies face a singular challenge:

Innovation in Marketing
Innovation in Marketing satisfies customer
needs
and
develops
a
competitive
advantage through differentiation along one
or more of the following performance
characteristics:
Desired Product Features and Design
Size
Usability
Quality
Time
Price
Cost savings/ Incremental Revenues