36638459 Introduction to Marketing Ppt 2

8/3/2019 36638459 Introduction to Marketing Ppt 2

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Introduction to

Marketing:

Sessions 1-2

“Marketing is too important to be left to the marketing department.”



“ In the factory we produce cosmetics.In the drugstore we sell hope.”

Charles Revson

Work in Pairs: Make a similar statement for another Product.

Role of Marketing in an Organization



Introduction to Marketing

Activity

How Marketing Savvy are you ?



1. ( 1 mark ) Who said this:

“They can have any color they want as long as it is black.”

a) G D Birla founder of Hindustan Motors.b) Henry Ford founder of Ford

c) Henry Royce founder of Rolls-Royced) Louis-Joseph Chevrolet co founder of Chevrolete) Kiichiro Toyoda founder of Toyota



Tata Jamsetji

Walmart Sam Walton

CNN Ted Turner

Kingfisher Vijay Mallyya

Nike Phil Knight

VIP Suitcases Piramal

Virgin Richard Branson

Reliance Ambani

FedEx Fred Smith

Satyam Ramalingam Raju

Sony Akio Morita

Bharti Sunil Mittal

Ford Chrysler Lee Iacocca

HCL Shiv Nader

MicroSoft Bill Gates

Eveready Khaitans



Morepen Labs BurnolHeinz ComplanMarico KayaHUL Kwality WallsTata IndicaP&G Ariel

Pidilite FevicolNestle CerelacWipro SantoorITC Sunfeast

( 1 mark ) Which IT company is nicknamed 'Big Blue'?

Hewlett Packard Dell IBM Sony Compaq



Michelin BibendumAsian Paints GattuNike Phil KnightAmul MoppetFerrari Horse

McDonald’s RonaldAir India MaharajaAdidas Three stripesVodafone ZoozooNirma Dancing girlKingfisher Bird

7 Up Fido



Four Eras of Marketing History

“A good product

will sell itself.”

“Creative advertising and

selling will overcomeconsumers‟ resistance and

convince them to buy.”

“The consumer rules!

Find a need and fill it.” “Long term relationshipswith customers and otherpartners lead to success.”

Prior to 1920‟s to 1950‟s Since 1950‟s Since 1990‟s Era Production Sales Prior Marketing Relationship

In the United States and other highly industrialized economies



Relationship Marketing

The development,growth, andmaintenance of long-

term, cost-effectiveexchange relationshipswith individual

customers, suppliers,employees, and otherpartners for mutual

benefit.

Advocate

LoyalSupporter

RegularPurchaser

NewCustomer


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Customer Needs / Wants / Demands

Directed at specific

Objects – shaped by

one‟s society. Eg.

Rice, dals, fruits

Wants for

specific productsbacked by anability to pay.

Eg : Pepsi, Benz,

etc.

CustomerNeeds ( Basic )

Wants Demands

Eg. FoodAir, shelter



I want it, I need it…..

5 Types of Needs

• Stated needs:• Real needs:

• Unstated needs:

• Delight needs:• Secret needs:



I want it, I need it…..

5 Types of Needs

• Stated needs: admission to a good institute .• Real needs: must afford the fees.

• Unstated needs: good teaching from faculty

• Delight needs: good placement • Secret needs: good brand to last a life time



What is Marketing?

Marketing is finding out what the consumer wants and then

giving it to him / her, in a commercially

viable manner.

Marketing therefore becomes an attitude, a state of mind and a philosophy which guides the operations of a business.

.



What is Marketing?

"Marketing is the activity, set ofinstitutions and processes, for creating,

communicating, delivering andexchanging offerings that have value forcustomers, clients, partners,

and society at large.“

AMA, 2008



An organizational function and a set of processes for:

creating,communicating, anddelivering value to customers andfor managing customer relationships

in ways that benefit the organization and its stakeholders

What is marketing ?



Marketing Variables - Marketing Mix

• Product

• Price

• Promotion• Place

Using the Marketing Mix to build long term relationships.



Mark’s & Spencer’s

Session 2

http://www.marksandspencer.com/gp/node/n/42966030/202-3903035-5389403?ie=UTF8&mnSBrand=core



Marks & Spencer

• What is the problem that Stuart Rose wasfacing when he took charge of M&S?



Marks & Spencer

• What is M&S strategy

• What value is being created• What should S Rose do and why



Stuart Rose’s concerns

Processes

Stakeholders

Resources

Organization



Marks & Spencer

Decision Areas in Marketing

•Creating customer value•Strategic planning



Characteristics of Company

• No senior mngt sign off – too much delegation

• Too much inventory

• High profile customers

• St Michael‟s – a value for money brand

• 16 sub brands .

• Advertising not aspirational but functional

• Diverted from retail heartland – not customer focused.

• New competition like Next, Walmart ( ASDA)

• Led by consultants experimenting with projects

• De motivated staff



What Stuart Rose did

• Fighting off a hostile takeover• Managing Press• Support of 2 trusted execs – in IT and Marketing• Streamlined 5 sourcing offices• Made suppliers conscious of this being „our‟ problem and reduced costs • House cleaning – off many brands• Retrenched 650 staff but retained home grown talent• Motivated retained staff – making them customer focused• HR measures• Stock management – 2 crimes : overstocked and short of stock• Daily reporting to ceo of stock position

• Problems are not allowed to fester• Focus on the basics of the business – improve product / store / service• Selling off their financial services to HSBC• Buying Per Una womens wear brand



Calendar – Till Mid Term

July 9th

: Kinko , the caseJuly 14th : Consumer Behavior – GP

July 16th : Financials of Marketing

Week end: Vora & Co : Write Case analysis

July 20th : Kerala TourismJuly 21st : Titan

July 23rd : Competition lecture

Week end : Prepare for Quiz on Chs 1,6,7,8

July 27th: Quiz / Competition

July 28th : Kodak versus Fuji

July 30th : Mid Term Wrap up

Aug 3rd

/ 4th

: Group Presentations on environment



Project 1

– What were the triggers of purchase.

– What were the stages in the purchase processes.

– What inputs were sought in each of these stages.

– Who played what kinds of roles in each stage

and – Approximately how much time was taken in

each stage.

– Was there any post purchase dissonance?



Methodology

• Based on the learning‟s and insight from the in-depth discussionswith THREE consumers, please draw implications for marketingdecisions.

• Ask probing questions.

• Do not construct a structured questionnaire. Just carry with you alist of

questions to guide you discussions.

• The report should be limited to 3 pages ( one and a half space, 12ptTimes Roman / Arial ) including Appendix, if any.

• The report is due just before the presentation.• Late submissions irrespective of reasons, however genuine, will

have a 50% reduction in marks if the report is submitted after thenext 2 days and will not be accepted beyond 2 days.



M&S – 2004 – Group activity

What are the rules of doing business in theretail space?

Was there anything new being done byStuart Rose?



Rules of the Game

Paradigm shift – changing the rules of thegame.



When you create a

concept, youcreate a future…

Marketing….

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Marketing Mix and the Customer

Four Ps

• Product

• Price

• Place

• Promotion

Four Cs

• Customer solution

• Customer cost

• Convenience

• Communication



Marketing Myopia

Management‟s failure to recognize the

scope of its business.



Avoiding Marketing Myopia by Focusing on

Benefits

“We are in the

entertainment business.” “We are in the video

game business.” Sony

“We are in the financial

services business.” “We are in the stock

brokerage business.” Prudential Securities

“We are in the

transportation business.” “We are in the airline

business.” Northwest Airlines

“We are a communications

company.”

“We are a telephone

company.”

MCI Worldcom

Marketing-OrientedDescription

Myopic DescriptionCompany



Make Product

(Design, Procure, Make)

Sell Product

(4 P‟s / 4 C‟s)

Product Process

STPSegmentation, Targeting,

Positioning

Provide & CommunicateValue through

4 P‟s / 4 C‟s

Value Creation & Delivery

Strategic Marketing Tactical Marketing



How do we identity needs, wants , desires and market to diverseand large crowds :

STP

Brands &

Benefits

CustomerSatisfaction

Markets:Channels

Supply ChainCompetition

MktgEnvn.Societal

Forces

ConsumerCapabilities CompanyCapabilities

Internal Marketing: Relationship Marketing;Integrated Marketing

4 P‟s

http://www.google.co.in/imgres?imgurl=http://www.indiadaily.org/images/happy_indians.jpg&imgrefurl=http://pratyush.instablogs.com/entry/india-is-125th-happiest-country/&h=328&w=410&sz=24&tbnid=IfuTJs7ibdEJ::&tbnh=100&tbnw=125&prev=/images%3Fq%3Dindians%2B%252B%2Bindia%2B%252B%2Bimage&hl=en&sa=X&oi=image_result&resnum=1&ct=image&cd=1



HOLISTIC RELATIONSHIP MARKETING FRAMEWORK

CUSTOMERS CORPORATION COLLABORATORS

1) Who is involved?




MARKET

SPACE


1) Who is involved?

2) How can we define relevant market space?




MARKET

SPACE

POTENTIAL

OPPORTUNITIES


3) What are the potential opportunities emerging from the market space?

1) Who is involved?





MARKET

SPACE

POTENTIAL

OPPORTUNITIES

BUSINESS

INVESTMENT



4) What business capabilities and infrastructure required?

1) Who is involved?





MARKET

SPACE

POTENTIAL

OPPORTUNITIES

BUSINESS

INVESTMENT


CUSTOMER

FOCUS

CORE

COMPETENCIES

COLLABORATIVE

NETWORK



4) What business capabilities and infrastructure required?

1) Who is involved?

ExploreValue

Createvalue

DeliverValue



Printed on CANON

COMPETITIVE PLATFORMS

Market

Offerings

COGNITIVESPACE

CUSTOMERVALUE

BUSINESSDOMAIN

COMPETENCYSPACE

Business

Architecture

BUSINESSPARTNERS

CRM ERP

RESOURCESPACE

SCM

Marketing

ActivitiesOperational

System

Exploring Value

Creating Value

Delivering Value

Customer Focus

Core Competencies

Collaborative Network



M&S

How did strategies change over 2004 to2008?



M&S Now

How should M&S market in today‟s

downturn?

Group Activity :



Defining the corporate mission for M&S

• Mission

– What business is M&S in? What businesses shouldwe be in? What do we do best? What are thevalues/ethics of the firm?

– Define business by need rather than productfeatures.

- Lodging vs hotel- Quick service restaurants vs fast food hamburgers



Characteristics of Core Competencies

• A source of competitive advantage

• Applications in a wide variety of markets• Difficult to imitate



Categories of Marketing Alliances

• Product or Service Alliances

• Promotional Alliances

• Logistics Alliances

• Pricing collaborations



Concepts of Sesson 3 & 4

• A holistic marketing framework

• Marketing myopia

• Core competency

• B2B marketing

• Business buying behavior



Consumer Decision MakingProcess



Project 1




– Who played what kinds of roles in each stage and

– Approximately how much time was taken in each stage.




6-51

What Influences Consumer Behavior?

• Cultural factors – related to values/socialclass / religion/community

• Social factors – related to reference

groups, family, roles & status.

• Personal factors – related to family lifecycle / occupation / personality / self-

concept / life style



6-52

Social Factors

Reference

groups

Socialroles

Statuses

Family



6-53

Reference Groups

• Membership

• Primary

• Secondary

• Aspirational

• Dissociative



6-54

Family

• Family of orientation

– Religion

– Politics

– Economics• Family of procreation

– Everyday buying behavior



6-55

Personal Factors

• Age

• Life cycle stage

• Occupation

• Wealth

• Personality

• Values

• Lifestyle

• Self-concept



Socio economic Classification

• Urban : Occupation & Education ( SEC A,B,C & D )

• Rural : Type of House ( pucca, semi-pucca

and kucha ) and education ( R 1, R2 etc )



Socioeconomic Classification (SEC) Matrix — India (Urban)



Key Psychological Processes

• Motivation

• Perception

• Learning

• Memory



Motivation

• Maslow‟s hierarchy of needs

• Freud‟s theory

• Herzberg‟s two-factor theory



Physiological Needs

(Food, water, air, shelter, sex)

Safety and Security Needs

(Protection, order, stability)

Social Needs

(affection, friendship, belonging)

Maslow’s Hierarchy of Needs

Ego Needs

(Prestige, status, self esteem)

Self-Actualization

(Self-fulfillment)



Besides ‘Needs’ behavior is due to :

• Unconscious psychological process (Freud )

• Motivations that cause satisfaction or

dissatisfaction ( Herzberg )

• High involvement or low involvementproduct



Perception

• Selective attention

• Selective retention

• Selective distortion

• Subliminal perception



Project 1









How do consumers make buying decision?

• Initiators

• Influencers

• Deciders

• Buyers

• Users



6-65

Consumer Buying Process

• Problem recognition

• Information search

• Evaluation

• Purchase decision

• Postpurchase behavior



6-66

Other Theories of

Consumer Decision Making

Involvement• Elaboration likelihood

model• Low-involvement marketing

strategies

• Variety-seeking buyingbehavior

Decision Heuristics (non rational)

• Availability – quickness & ease

• Representativeness ie howsimilar is the outcome

• Anchoring and adjustment .First impressions are lastingimpressions.



Project 1









Economic Conditions

New Technology

Media

Law & Politics

Social Culture

Marketing mix(competitor & own)

Characteristics resulting

from:-social /reference groups-family values-role & status

Personal circumstances-socio-economic-life style-psychologicalprocess &personality

Decision process-need recognition-information search-evaluation-purchase intention-purchase

-post purchaseperceptions

Product form

Brand

Retail outlet

Value

Form of payment

Timing ofpurchase

External Factors Buyer’s Black Box Outcomes

Consumer’s Purchase Decision



Session on Consumer Behavior

• Reference group• Aspirations

• Maslow

• Freud• Herzberg

• Selective Attention

• Decision making process

• High & Low involvement

36638459 Introduction to Marketing Ppt 2

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