1.

Introduction to Marketing

Marketing Management
?
 Marketing Definition
“The science and art of exploring, creating,
and delivering value to satisfy the needs of a
target market at a profit”.
- Dr. Philip Kotler
 Marketing Definition
“Marketing is an organizational function & a
set of process for creating, communicating
& delivering value to customers & for
managing customer relationships in a way
that benefits the organization & its
stakeholders”
– American Marketing Association
Revised in year 2004
 Why Study Marketing?
• Marketing Plays an important role in
society
– Improves standard of living

– Which automobile do you like?

– What do you do if you are hungry?

– Your views about IIM, TATA, Reliance, Birla

 Why Study Marketing?
• Marketing is important to business
– What are the objectives of doing business?
– Marketing contributes directly towards achieving
these objectives
– Marketing activities, which are vital to business
• P1
• P2
• P3
• P4
 Why Study Marketing?
• Marketing offers outstanding career
opportunities
– Professional selling
– Marketing research
– Advertising
– Retail
– Distribution Management
– Product Management
– Product Development
– Digital Marketing
– Brand Management
 The Marketing Process

Construct an Build Capturing

Understandin Design a
integrated profitable value from
g the market customer
marketing relationships customers to
customer Driven
program that & create create profits
needs & Marketing
delivers customer & Customer
wants Strategy
superior value delight equity
 Key Marketing Concepts
• Customers provide payment to an
organization

• Consumers are the end users of the

product
 1.Understanding the market place

• Market The set of all actual & potential

buyers of a product or service
• Market a place where buyers & sellers
gather together to exchange goods &
services.
 1.Understanding the market place

• Marketing Myopia The mistake of paying

more attention to the specific products a
company offers than larger needs of a
customers.
– Customers buy benefits/services/solutions/
value satisfactions & not products
 Product Vs Needs
Definition with product Definition with Need
Focus focus

Railway, Bus, Truck Transportation

Movies, TV, DVD Entertainment
Fruit Juice, Fruit Drink, Nutrition
etc.
Photocopy machines, Office Productivity
Fax
Fairness cream, cold Beauty
cream
Greeting, gifts Social Satisfaction
 KEY CUSTOMER MARKETS
• Consumer Markets

• Business Markets

• Global Markets

• Nonprofit and Governmental Markets

 Meta Market
It is clusters of complementary products and services that are
closely related in the mind of consumers, but spread across a set
of industries.
Eg.The automobile meta market consist of
Automobiles manufactures,
New car and use car dealers,
financing companies,
insurance companies,
machines,
spare parts dealer,
service shops,
auto magazines,
classified auto ads in Newspaper, and auto site in the internet.
 Orientation Towards Marketing
• Production
• Product
• Selling
• Marketing
• Societal
• Transactional Marketing
• Relational Marketing
• Holistic Marketing
 Transactional Marketing

• Primary focus on achieving organizational

objectives
• Single purchase
• Limited to moderate customer contact
• Emphasis on short-term performance
• Limited customer service
• Short term goal of customer satisfaction
• Limited commitment to customer
• Quality a manufacturing responsibility
 Relational Marketing

• Focus on customer retention

• Repeated sales
• Close/frequent customer contact
• Goal of delighting the customer
• Quality at total organization responsibility
• Primary focus on value to customer
• Emphasis on longer-term activities
• High level of customer service
 Holistic Marketing
• Holistic marketing -is a marketing concept
in which we study different marketing
concepts and their inter-dependencies.
 Market
• It is collection of buyers and sellers
• It is also thought to be a set of individuals
or institutions that have similar needs that
can met by a particular product.
• A market consists of all the consumers
who purchase a particular type of product.
 Market
It is very important for a business to be able
to define its market:
1. So that it can estimate the size of the
market
2. So that it can forecast the growth of the
market
3. To identify the competitors in the
market
4. To break the market down into relevant
segments
5. To create an appropriate marketing mix
 Market
Product Shaving Razor Deodorant Fertilizer (2016,
Maharashtra)
Market Group of farmers
Market size 25 Lakh MT
Growth of the 4%
Market
Competitors RCF,Zuari,IFFCO,
KRIBHCO,DFCL
Segment Crop wise/
Gradewise
 The Marketing Process

Construct an Build Capturing

Understandin Design a
integrated profitable value from
g the market customer
marketing relationships customers to
customer Driven
program that & create create profits
needs & Marketing
delivers customer & Customer
wants Strategy
superior value delight equity
 1.Understanding the market
• Customer Value
Customer perceived value = Benefits from a
product / Cost of acquiring the product
• Customer Satisfaction

Performance < Expectation =

Dissatisfaction
Performance = Expectation = Satisfaction
Performance > Expectation (Beyond E.+
+ve Surprise)= Delighted
 2. Designing a Customer-Driven
Marketing Strategy
• For winning Marketing Strategy Marketing
Manager should answer two important
questions
Q1. What customer will we serve (What’s
our target market)
– Segmentation
– Targeting
 2. Designing a Customer-Driven
Marketing Strategy
Q2. How can we serve these customers best
(What’s our value proposition)
– How to differentiate & position itself
– At what price
– Value proposition answers the customers
question “Why should I buy your brand rather
than competitors”
– Formula of Value Proposition
Value Proposition = Set of key benefits
promised to customers
to satisfy their needs
 3. Preparing an Integrated
Marketing Plan
• 4 C’s
• 4 P’s
Customer Needs = Product
Cost of acquiring = Price
Convenience = Place
Communication = Promotion
 4. Building Customer Relationship

• Customer Relationship Management is

the overall process of building &
maintaining profitable customer relations
by delivering superior customer value &
satisfaction
– Relationship building blocks
• Customer Value
• Customer Perceived Value
• E.g. Ammar Belal
AMMAR BELAL
• Black-label shirt starts @ Rs. 7000
• Fabric – 160/180 two ply Egyptian cotton
• Stitched in Turkey
• Button – Real Mother of Pearl
 4. Building Customer Relationship

• Customer Relationship Levels & Tools

– Basic relationship (Low involvement products)
• Advertising, sales promotion, website & etc
– Full relationship (High involvement products)
• Frequency marketing program
• Club Marketing
• E.g. Royal Enfield
 Royal Enfield
• Sign up to join our exciting community of Royal
Enfield enthusiasts, customers and riders.
Registering on this website will allow you to:
– Interact with thousands of Royal Enfield motorcycle
owners from all around the world
– Create your own space within the landscape of this
community
– Submit stories of your own ride trips for other
members to read
– Take part in exciting contests
– Access the Royal Enfield Support knowledgebase and
finally have lots of fun!!
5. Capturing Value from Customers
• Creating customer loyalty & retention
– Shoppers Stop
– Customer life time value the value of the entire
purchases that the customer would make over
a life time of patronage
• Growing share of customers
– Supermarkets = Share of stomach
– Car companies = Share of garage/Road
– Airlines = Share of travel
– Cross-selling & Up-selling
5. Capturing Value from Customers

• Building Customer Equity The total

combined customer lifetime values of all
the customers of company
• Right relationship with right relationship
Projected Loyalty
Short-Term Long-Term
Potential Customer Customers
Profitability High Butterflie True
Profitability s Friends
Low Strangers Barnacles
Profitability
 New Customer Capability
• A substantial increase in buying power
• A greater variety of available goods and services
• A great amount of information about anything
• A greater ease in interacting and placing and
receiving orders
• An ability to compare notes on products and
services
 Major Societal Forces

• Age of Participation
• Globalization Paradox
• Creative society
• Demographics
• change in culture -changing value system
• Economic factors
• Competition
• Technology
• Government regulations
• Green Movement
 New Company Capabilities
• People
• Knowledge
• Systems
• Tools
• Processes
• Difference Between Selling & Marketing
Selling
Selling starts with sellers
Seller is the centre point of
business universe
Emphasis is on selling
surplus available with the
corporation
Concentrates on techniques
& tricks of selling products
Views business as “goods
producing process”
Marketing
Marketing starts with buyers
Customers are the centre
point of business universe
Emphasis is on identifying
the needs of the customers
Concentrates on long term
relationship
Views business as
“Customer-Satisfying
Process”
• Difference Between Selling & Marketing
Selling
Sellers requirement
dominates the “Marketing
Mix”
Firm makes the product &
then figures out how to sell it
Emphasis is on staying with
the existing technology &
reducing cost
Distribution function is seen
as the extension to the
production
Marketing
Buyers determines the shape
of “Marketing Mix”
The product is determined by
the buyer
Emphasis is on providing
better value to the customers
Value adding process
• Difference Between Selling & Marketing
Selling Marketing
Sellers motive dominates the MC is looked as the tool for
marketing communication communicating benefits &
satisfaction of the product
Cost determines the price Consumer determines the
price; price determines cost

No coordination among the Emphasis is on integrated

different functions marketing
Selling views the customers Marketing views the
as the last link of the customer as the very
business purpose of the business
Thank You