CH-1-Marketing Function

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Marketing Management

Module:1

Chapter:1 Nature & Scope of Marketing


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Introduction to Marketing

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From the time you wake up..

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Turn off that alarm brush your teeth take a

shower have breakfast get dressed travel

to work use the copier go out for dinner at

____ - fall asleep

We use more than 250 brands by the time our

day ends !!

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Marketing is omnipresent ..!

The average person in a metro-city is exposed

to over 3,000 advertising messages a day!!

...consciously or otherwise.

Source: http://www.superprofile.com

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We are constantly being targeted !!

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Marketing is natural

Analogy of marketing with the natures law of

survival of the fittest

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What is sold What is marketed

A grocery shop sells Channa Commodity

A restaurant sells Channa-

Bhatura

Product

MDH , a food company sells ready

to eat channa masala

Brand

Tata Consultancy Service sells TCS

Certainity

Solution

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What is Marketed?

Goods

Services

Events & Experiences

Persons

Places & Properties

Organizations

Information

Ideas


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Good Marketing is No Accident

The roaring success

of four-wheeler Tata

Ace, in a market

earlier dominated bythree-wheeler load

carriers, was due to a

deep understanding

of the market needsand customer

requirements.

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Lets define

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What is Marketing?

Marketing is an organizational functionand a set of processes for creating,

communicating, and delivering valueto customers and for managing

customer relationships

in ways that benefit theorganization and its stakeholders.

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What is Marketing Management?

Marketingmanagement is theart and science

of choosing target marketsand getting, keeping, and growing

customers through

creating, delivering, and communicatingsuperior customer value.

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Marketing is the management process that

identifies, anticipates and satisfies customer

requirements profitably

The Chartered Institute of Marketing

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The right product, in the rightplace, at the right time, and at

the right price

Adcock et al


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Marketing is the humanactivity directed at satisfying

human needs and wants

through an exchange process

Philip Kotler

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The AMA definition:

Marketing is the process of planning and executing

the conception, pricing, promotion, anddistribution of ideas, goods, and services to create

exchanges that satisfy individual andorganizational objectives.

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No single definition or approach

But the common subject matters:

The ability to satisfy customers,

The identification of favorable marketingopportunities

The need to create an edge over competitors

The aim to increase market share mainly in target

markets

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Some marketing Gurus..

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Selling is only the tip of the iceberg

There will always be a need for

some selling. But the aim of marketing

is to make selling superfluous. The aim

of marketing is to know and understandthe customer so well that the product or

service fits him and sells itself. Ideally,

marketing should result in a customer

who is ready to buy. All that should beneeded is to make the product or

service available.

Peter Drucker

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Key Customer Markets

Consumer Markets

Business Markets

Global Markets

Nonprofit/ Government Markets

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Consumer :

A consumer is one who consumes goods and services.

Customer :

Customer are those who buy goods and services.

Consumer , Buyer & Customer

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Evolution of

the marketingconcept

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Production Concept

Product Concept

Selling Concept

Marketing Concept

Consumers prefer products that arewidely available and inexpensive

Consumers favor products thatoffer the most quality, performance,

or innovative features

Consumers will buy products only if

the company aggressivelypromotes/sells these products

Focuses on needs/ wants of targetmarkets & delivering value

better than competitors

Company Orientations Towards the

Marketplace

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Societal

MarketingConcept

Company(Profits)

Consumers(Want Satisfaction)

Society(Human Welfare)

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Societal Marketing Concept


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Holistic Marketing

The Holistic Marketing concept is bases on thedevelopment, design and implementation of

marketing programs, processes and activities

that recognizes their breadth andinterdependencies.

Holistic marketing recognizes that everything

matters in marketing and that a broad,integrated perspective is often necessary.

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Figure 1.4 Holistic Marketing Dimensions


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Customers

Front-line people

Middle Management

Top

Management

Modern Marketing Concept TraditionalOrganization Chart

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Modern Marketing Concept Customer-Oriented Organization Chart

Customers

Front-line people

Middle management

Top

manage-

ment

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Figure 1.2 A Simple Marketing System

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The Marketing Mix

Developed to achieve the companys objectives.

Also called:

4 Ps of

Marketing

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Product

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What is a Product?

A product is anything that can be offered to a

market to satisfy a want or need, including

physical goods, services, experiences, events,

persons, places, properties, organizations,

information, and ideas.

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Product Mix

Total sum of all products and variants offeredby an organization (Hindustan Unilever Limited)

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Product Differentiation

Product form

Features

Customization

Performance

Conformance

Durability

Reliability

Repairability

Style

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Service Differentiation

Ordering ease

Delivery

Installation

Customer training

Customer consulting

Maintenance and repair

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Product Life Cycle

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PRICE

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Definition:

In ordinary usage, price is the quantity of

payment or compensation given by one party

to another in return for goods or services.

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Place

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Marketing Channelsand Supply Chain Management

The fourth P of marketing

(place)


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Consumer Marketing Channels

Wholesaler Distributor Retailer Consumer

Consumer

Retailer Consumer

Manufacturer

0-level channel

Wholesaler Retailer ConsumerMfg2-level channel

Mfg

3-level channel

1-level channel

Manufacturer

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Promotion

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Concept of Promotion

Promotion is all personal and impersonal

efforts by a seller to

Inform

Persuade or

Remind a target audience.

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Personal Selling

Direct presentation of a product to a

prospective customer by a representative of

the organization selling it.

Face to face

Over the phone

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Advertising

The non-personal communication of informationusually paid for & usually persuasive in nature, aboutproducts (goods & services) or ideas by identifiedsponsor through various media.

Broadcast media (TV, Radio)

Print media (newspapers, magazines)

Outdoor media (billboards)

Internet

Mobile phones

Other media

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Sales Promotion

Incentives given to encourage sales and helppersonal selling.

Premiums

Event sponsorships

Contests

Trade shows

In-store displays, samples, rebates

Discounts and coupons

If given to channel partners: Trade Promotion

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Public Relations

Efforts to develop favorable attitudes and

opinions about products/organizations

Newsletters

Annual reports

Lobbying, charitable events etc.

Publicity

News stories about organization & products

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Marketing Concept - The 4 Ps & The 4 Cs

Marketing

Mix

Product

PricePromotion

Place

Customer

Solution

Customer

Cost Communication

Convenience

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Acoording to customer point of


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Acoording to customer point of

view-SIVAProduct Solution

Promotion Information

Price Value

Place Access

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Marketing Concept - The 4 Ps

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The extended marketing mix

Also called the service marketing mix

People

Process

Physical Evidence

Productivity (8

th

P)

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*Problem & Challenges in Marketing


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*Problem & Challenges in Marketing

Network information Technology

Globalization

Deregulation

Privatization

Heightened competition

Industry Convergence

Consumer Resistance

Retail Transformation

Disintermediation

*In Marketing Elective


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New Consumer Capabilities

A substantial increase in buying power A greater variety of available goods and services

A great amount of information about practicallyanything

Greater ease in interacting and placing andreceiving orders

An ability to compare notes on products and

services An amplified voice to influence public opinion

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*Role of Marketing Manager

Developing marketing Strategies & Plans

Capturing Marketing Insights

Connecting with Customer

Building Strong brands

Shaping the Market Offering

Delivering Value

Communicating Value

Creating Long Term Growth

*In Marketing Elective


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Identifying & Selecting Markets

Segmentation

Targeting

Positioning

( chapter 3 in detail)

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70,432 cars recorded during 2010-11

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b ki f 25000 it i j t ti


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booking of 25000 units in just a time

period of 10 days of its launch

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Consumer BehaviorThe behavior that consumer display in buying,

using and disposing of products & services.

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What Influences


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What Influences

Consumer Behavior?

Cultural Factors

Social Factors

Personal Factors


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What is Culture?

Culture is the fundamental determinant of a

persons wants and behaviors acquired

through socialization processes with family

and other key institutions.The growing child acquires s et of values,

perception, preferences and behaviors

through his or her family and other keyinstitution.

Each culture consist of smaller subculture


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that provide more specific identification and

socialisation for their members

Nationalities

Religions

Racial groups

Geographic regions


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Social Factors

Reference

groups

Socialroles Statuses

Family


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Personal Factors

Age

Values

Life cycle

stage

Occupation

Personality

Self-

concept

Wealth

Lifestyle

Figure 6 1


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Figure 6.1

Model of Consumer Behavior


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Key Psychological Processes

Motivation

MemoryLearning

Perception


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Motivation

Freuds

Theory

Behavior

is guided by

subconsciousmotivations

MaslowsHierarchy

of Needs

Behavior

is driven by

the lowest,unmet need

HerzbergsTwo-Factor

Theory

Behavior is

guided by

motivatingand hygiene

factors


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Maslows Hierarchy of Needs


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Perception

Selective Attention

Subliminal Perception

Selective Retention

Selective Distortion

Figure 6.3 State Farm Mental Map


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Figure 6 4 Consumer Buying Process


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Figure 6.4 Consumer Buying Process

Problem Recognition

Information Search

Evaluation

Purchase Decision

Postpurchase

Behavior


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Glimpse of Marketing Specializations

Consumer Behavior

Marketing Research

Sales and distribution

Integrated Marketing Communications

Services Marketing

Industrial Marketing

International Marketing Brand Management

Digital Marketing

CH-1-Marketing Function

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