42122381 Marketing Management
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Transcript of 42122381 Marketing Management
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Que: When I saymarketing what comes
to your mind first?
Ans: Consumer
satisfaction
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Evolution of marketing
This concept has evolved through three successive
stages
Production Era
Sales Era
Marketing Era
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Production Era
Manufacturers in this stage focused on increasing
output while assuming that customers would seek out
and buy reasonably priced and well made product.
Executives with background in engineering and
manufacturing shaped the firms strategy.
More emphasis on efficiency and cost control.
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Sales Era
This concept evolved in early 1930s.
During this stage managers realized that to sell
the product a firm want to make somepromotional activity.
This era was characterized by aggressive selling
and usage of unethical practices to sell products.
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Marketing Era
This era begins in the mid of 1950s.
Companies identifies the importance of
customer needs and wants.
Marketing activities were directed towards two
goalsCustomer orientation and profitability.
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Production Orientation
Some industries remain at the productionorientation stage.
Production Orientation Sales Orientation
Other companies have progressed only to
the sales orientation stage.
Production
OrientationSales Orientation Marketing Orientation
Many companies have progressed to marketing
orientation stage.Early 1930s Mid 1950s 1990s
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Marketing Management concepts
Production Concept
Product Concept
Selling Concept
Marketing Concept
Societal Marketing
Concept
Consumer favor products that are available and
highly affordable. Improve production anddistribution.
Consumer favor products that offers the most
quality, performance and innovative features.
Consumer buy the product if company
promotes/sells the product.
Focuses on needs/wants of target market &delivering satisfaction better than competitors.
Focuses on needs/wants of target market &
delivering superior value.
Societys well being.
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Production Concept
Believes that consumers will prefer products that arereadily available at reasonable prices.
Improvement In production and distribution efficiency
was main focus for the managements.
The production concept, though useful in some
situations, resulted in marketing myopia i.e. thisconcept focuses narrowly on their own objectives
lose sight of real objectives of customers needs
satisfaction.
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Product Concept
This concept believes that consumers will
automatically favor products that offers most
quality, performance and innovative features. Thus
the important is on product development.
Continuous improvements in product and quality
also lead to marketing myopia.
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Selling Concept
This concept believes that left to themselvesconsumers and business will not buy enough to
satisfy the sellers volumes.
Thus constant sales promotion efforts have to bemade in order to reach the required sales
volumes.
The sells concept is centered on the idea of highpressure selling to maximize sales volume and
hence profits.
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Marketing Concept
Believed that instead of make and sell, companies
should sense and respond. So the job is not to find the
right customer for your product but find the right
product for your customer.
There are two orientation that supports thisconcept:
1. Reactive market orientation: You see the need
and you respond to with a product.
2. Proactive orientation: You see a future need and
you respond with a product. So by the time the
need arrives in the market and your product is
there.
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Characteristics of Marketing ConceptFirst identify the needs of a target segment of a market.
Design the most effective product that best meets therequirements of the consumer.
Unlike the selling concept, marketing concept focuses on
the needs of the customer.
Correctly identify the target market and target market
consumers needs.
Implement integrated marketing throughout all d
departments in the organizations.
Aim at profitably by creating superior customer value.
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Societal Marketing Concept
Is the marketing concept ethical enough?
Marketing has to be made humane and
ecological, hence the societal approach was
introduced.
Care should be taken to minimize the
environmental deterioration, hunger, poverty
and moral breakdown.
Hence needs to be satisfied in a manner which
enhances and preserves consumers society and
societys well being.
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Core Marketing Concepts
Needs, Wants& Demands
Products &
services
Value,Satisfaction
&quality
Exchange,
Transactions
and
relationship
Markets
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What are consumers Needs,
Wants and Demands?Needs: State of felt deprivation for basic items such as
food, clothing and social needs.
Wants: Forms that a human need takes as they are
shaped by culture and individual personality
characteristics.
Demands: Human wants backed by buying power and
willingness to buy.
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Customers needs, wants and
what leads to demand?Needs are basic human requirements. People need food,
cloths, air. Shelter for basic survival.
People also have strong need of recreation, education and
entertainment.
Needs becomes wants when they are directed to specific
objects. That might satisfy their needs.
An Indian needs food but wants pizza while hungry Chinese may
want noodles. Thus wants are shaped by socio-cultural factors.
Demands are wants for specific products backed by ability to
pay. People need transport, many people want a car but only
few can form the demand for a Mercedes car.
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Modern Marketing system
Suppliers
Competitors Company(Marketer)
Marketing
Intermediaries
End User Market
EnvironmentEnvironment
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Marketing Mix
Set of controllable, tactical. Marketing tools
that the firm blends to produce the response
it wants in the target market.
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The Marketing MixTo achieve companys objective a marketing program
based on the most suitable marketing mix will drawn up.
Marketing mix is made up of following factors:
Product:
Goods and services offered by a company to targetmarket, to satisfy needs and wants.
The different physical attributes of p[products such as
design, features, quality, brand name, usage etc.
Price:
Money value that consumer pay to buy a product or
service.
Discounts, allowances, payment periods, credit facilities.
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Place:
Physical distribution activities through which the productmoves from the factory to the customer.
Include aspects of channels, coverage, location, transport,
inventory and logistics management.
Promotion:
Activities of personal selling, advertising ad
communicating product benefits and attributes to target
consumers to persuade them to purchase.
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Marketing mix Promotion
A successful product orservice means nothing
unless the benefit of such
a service can be
communicated clearly to
the target market.
An organizations
promotional mix consistsof:
Promotional
Mix
Advertising
Personal
selling
Sales
promotion
Public
Relation
Publicity
Direct
Marketing
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Market segmentation
Dividing a market into distinct group of buyers who
have different needs, characteristics, or behaviors, and
who might require separate products or marketing
programs.
Market Segment:
A group of consumers who respond in a similar way to
a given set of marketing efforts.
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Levels of Market Segmentation
Segment-
ation
Segment
Marketing
NicheMarketing
LocalMarketing
IndividualMarketing
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Segment Marketing
Identifiable group within a market with
similar :
WantsPurchasing Power
Geographical Location
Buying attitudes
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Niche Marketing
Narrowly defined group whose needs are not well served
Distinct needs
Specialization
Less competition
Size, profit and growth
Potential
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Individual Marketing
Marketing according to individual customer
Customized marketing
Cars/clothsArchitects
Software
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Local Marketing
Marketing program serving Needs &Wants of local customers.
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Purpose of Segmentation
1. Identifying groups of customers with similar needs.
2. Analyze their characteristics & buying behavior.
3. Providing products matching with needs.
4.Satisfying needs while meeting org. objectives.
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Segmenting Consumer MarketsDemographic Variables
AgeGender
Family Size
Income
OccupationEducation
Geographic Variables
Region
City
Rural and semi-urban areas
Psychographic Variables
Socioeconomic classification
Life style
Personality
Behavioral Variables
Occasions
BenefitsUser status
Usage rate
Loyalty status
Readiness stage
Attitude toward product
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AmitAnkul
Pradeep
Raj