Marketing By Bhakt RAj BHAGAT

7/25/2019 Marketing By Bhakt RAj BHAGAT

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Marketing

Dibakar Bashistha


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Customers focus approach known as:

Product Solution Promotion Information

Price Value

Place (Distribution)Access


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Course content of Unit 1

eanin! and core concept of arketin!

arketin! mana!ement concept(Demand mana!ement

and customer relationships)

arketin! ana!ement C"cle ( Anal"sis# Plannin!#implementation and control )

arketin! ana!ement Philosophies ( Production#

Product# Sellin!# arketin!# societal concept )

Marketing challenges in New Millennium.References Books: K.D. Koirala, Guinea RamAgrawal, Sham Kumar Shrestha.


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!ro"uct # Solution

!romotion # $nformation

!rice # %alue !lace # Access

&thers:

!rocess !eo'le

!ur'ose

!ositioning !ersuasion

!erformance


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Meaning and concept of Marketing

$he act or process of bu"in! and sellin! in a market%

$he commercial functions in&ol&ed in transferrin!!oods from producer to consumer%

arketin! consists of the strate!ies and tactics used to

identif"# create and maintain satisf"in! relationships

with customers that result in &alue for both thecustomer and the marketer%

$his now famous arketin! Concept su!!ests

marketin! decisions should flow from 'IS$ knowin!

the customer and what the" want% nl" then should an

or!ani*ation initiate the process of de&elopin! and

marketin! products and ser&ices%


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arketin! toda" has become a emotional research

which helps understandin! customer and

consumers ps"cholo!" so that products arede&eloped based on these understandin!% $he

marketin! mana!ers need to answer followin!

+uestions:

How do we find the right market segment?

How do we differentiate?

How can we compete with low cost business

models? How do we build a better brand?

How do we reduce cost of customer acquisition?


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American Marketing Association Definition

arketin! is the process of plannin! and

e,ecutin! the conception# pricin!# promotion#and distribution of ideas# !oods# and ser&ices

to create e,chan!es that satisf" indi&idual and

or!ani*ational ob-ecti&es%.

American Heritage Dictionarys Definition of

Marketing

$he commercial functions in&ol&ed intransferrin! !oods from producer to

consumer%.


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According to Philip Kotler "Human activity directed at

satisfying needs and wants through echange process!"

Key points of definition It is a process

Product related acti&ities

Price related acti&ities

Promotion related acti&ities

Place related acti&ities

It satisfies customer need

It facilitates e,chan!e relationships

It helps to achie&e ob-ecti&es:

Profit/ser&ice/!rowth/sur&i&al/leadership

D"namic en&ironment


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mplication of various definition of Marketing

0% arketin! is concerned meetin! needs and pro&idin!

benefits%1% arketin! focus customer satisfaction and deli&erin! &alue

to indi&idual customers# !roups# or!ani*ation# and societ"

at lar!e%

2% 'uture needs of the indi&idual customer and the societ" as awhole should be identified# anticipated and ser&ed%

3% arketin! focuses on achie&in! lon!4term profit tar!ets

rather than short term sales and profit%

5% arketin! can be applied in all spheres of the societ" tosell a &ariet" of entities that includes !oods# ser&ices# ideas#

e,periences# places# people# or!ani*ation# assets# and

information%


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#ore concept of Marketing$

6eeds (Ph"sical needs / Safet" needs / Social needs / 7!o

related needs / Self actuali*ation needs% ( needs of people

and or!ani*ation )

8ants: wants are shaped b" socio cultural forces# institution#

and indi&idual%

Demand: ( willin!ness to spend mone" and abilit" to spends

mone" )

Value: (It is the combination of +ualit"# ser&ice and price )

Satisfaction ( &alue as per the customer satisfaction )

Se!mentation / tar!et market selection and positionin!%

arketin! plan and channel

arketin! en&ironment# competition# suppl" chain and

relationship and networkin!%


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%b&ectives of Marketing$

$o chan!e the structure of the clientele and the nature of the firm

$o !et new clients# or to stren!then relationships with e,istin! clients

$o sell new ser&ices to e,istin! clients# as well as to new clients

$o introduce a new ser&ice or enter a new market for a specific ser&ice

$o broaden a !eo!raphic base

$o chan!e a perception of a firm b" its market

All ob-ecti&es should be 'MA() i%e% Specific# easurable# Achie&able#

ealistic# and $imed%

'pecific4 9e precise about what "ou are !oin! to achie&e%

Measurable4 uantif" "our ob-ecti&es% Achievable4 Are "ou attemptin! too much;

(ealistic 4 Do "ou ha&e the resources to make the ob-ecti&e happen

(men# mone"# machines# materials# minutes);

)imed4 State when "ou will achie&e the ob-ecti&e


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mportance of Marketing

arketin! is a &er" important aspect in business since it contributes !reatl"

to the success of the or!ani*ation% Production and distribution depend

lar!el" on marketin!% an" people think that sales and marketin! are

basicall" the same% $hese two concepts are different in man" aspects%

arketin! co&ers ad&ertisin!# promotions# public relations# and sales% It is

the process of introducin! and promotin! the product or ser&ice into the

market and encoura!es sales from the bu"in! public% Sales refer to the act

of bu"in! or the actual transaction of customers purchasin! the product orser&ice% Since the !oal of marketin! is to make the product or ser&ice

widel" known and reco!ni*ed to the market# marketers must be creati&e in

their marketin! acti&ities% In this competiti&e nature of man" businesses#

!ettin! the product noticed is not that eas"%

Marketing Promotes Product Awareness to the Public Marketing Helps Boost Product Sales

Marketing Builds Company eputation


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Importance to the customers:

6eeds and wants are satisfied


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Marketing Management

$raditionall"# marketin! anal"sis was structured into three areas: customer

anal"sis# compan" anal"sis# and competitor anal"sis (so4called >2Cs>

anal"sis)% ore recentl"# it has become fashionable in some marketin! circles

to di&ide these further into certain fi&e >Cs>: customer anal"sis# compan"

anal"sis# collaborator anal"sis# competitor anal"sis# and anal"sis of the

industr" conte,t% Marketing Management is the process allocating theresources of the organi*ation toward marketing activities%. $hus# a

marketin! mana!er is someone who is responsible for directin! e,penditures

of marketin! funds% elated to the term ?mana!ement@ is the term ?strate!"%@Marketing strategy$ + Marketing management ,

Marketing strategyis a process that can allow an or!ani*ation to concentrate

its limited resources on the !reatest opportunities to increase sales and achie&e

a sustainable competiti&e ad&anta!e%

mplementation planningPro&ect- process- and vendor management

%rgani*ational management and leadership

(eporting- measurement- feedback and control systems


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Accordin! to Philip otler B arketin!

mana!ement is the art and science choosin!

ri!ht tar!et markets and !ettin!# keepin!# and!rowin! customers throu!h creatin!#

deli&erin! and communicatin! superior

customer &alue. %

arketin! mana!ement is the art and science

of choosin! tar!et markets and !ettin!#

keepin!# and !rowin! customers throu!h

creatin!# deli&erin! and communication

superior customer &alue%


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#ustomer relationship management +#(M,

Customer relationship management

(CM) is a mo"el for managing acom'an*s interactions with current an"future customers. $t 'ro+i"es a - "egree+iew of customer "ata.

It is a widel" implemented strate!" for mana!in! acompan"@s interactions with customers# clients and

sales prospects% It has emer!ed from 0Es%

arketin! mana!ement also adopted this concept in

the late 0Es and call it relationship marketin!% It

focuses to create customer &alue throu!h buildin!

lon! term relationship%


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#(M helps in profiling prospects- understanding their

needs- and in building relationships with them by

providing the most suitable products and enhanced

customer service!

t integrates back and front office systems to create a

database of customer contacts- purchases- and

technical support- among other things!

)his database helps the companyin presenting a unified

face to its customers- and improve the quality of the

relationship- while enabling customers to managesome

informationon their own!
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/RM ti's

=elpin! an enterprise to enable its marketin! departments to identif" and tar!et

their best customers# mana!e marketin! campai!ns and !enerate +ualit" leads

for the sales team%

Assistin! the or!ani*ation to impro&e telesales# account# and sales mana!ement

b" optimi*in! information shared b" multiple emplo"ees# and streamlinin!

e,istin! processes (for e,ample# takin! orders usin! mobile de&ices)

Allowin! the formation of indi&iduali*ed relationships with customers# with

the aim of impro&in! customer satisfaction and ma,imi*in! profitsF identif"in!

the most profitable customers and pro&idin! them the hi!hest le&el of ser&ice%

Pro&idin! emplo"ees with the information and processes necessar" to know

their customers# understand and identif" customer needs and effecti&el" buildrelationships between the compan"# its customer base# and distribution partners


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Sales will be increased throu!h the effecti&e

implementation of arketin! i, as well as

a!!ressi&e sellin!# sales promotions orad&ertisin!% C is directed at buildin! a

lar!e !roup of satisfied and lo"al customers%

$he ke" strate!ic of C is to retain andwinnin! back lost customer% It is directed at

buildin! stron! economic# technical and social

relationship with the parties concerned o&er a

period of time%


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A C s"stem ma" be chosen because it is

thou!ht to pro&ide the followin! ad&anta!es:

ualit" and efficienc"

Decrease in o&erall costs

Decision support

Customer Attention etc%

It has the aim of buildin! mutuall" satisf"in!

lon!4term relations with customers# in order

to earn and retain business%


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)he Marketing Management #ycle

)he planning cycle It is composed of four "asic steps.

Planning is the process of e,aminin! and understandin! the surroundin!s within

which the or!ani*ation functions%

mplementationis the process of puttin! plans that ha&e been made into action% It is

the transition from e,pected realit" to e,istin! realit"%

Monitoring is the process of trackin! plans and identif"in! how plans related to

chan!es that take place durin! pro!ram operation when more information is ac+uired !

#orrection is the sta!e in which we take action to return our plan to the desired state

based on feedback obtained in the monitorin! sta!e% If we find that return to the

planned state is not practicable# we ma" ad-ust our plannin! outcomes%

Anal"sis:0hee2aminationan" e+aluationof the rele+ant information to select the best course of action fromamong +arious alternati+es. Analysisis the 'rocess of breaking a com'le2 to'icor substance intosmaller 'arts to gain a better un"erstan"ing of it

Analysis0Planning0mplementation0#ontrol
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De#e!opment of marketing concepts or marketing

management phi!osophies$

Accordin! to Peter Drucker arketin! first arose in

the 0Gthcentur" from the famil" of itsui from $ok"o

Hapan% Some people sa" it is as old as mankind and

from barter s"stem%

It is !raduall" de&eloped due to : Decline of compan"@s sales

Slow !rowth of compan"

Increasin! competition Increasin! sales e,penditures and bu"in! pattern of

customers%


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Production Concept"

Starting point" 3actor,

#ocus" Mass !ro"uction

Means" 4ow 'rice, Mass "istribution

$nds" !ro5t through 'ro"uctione6cienc

Product Concept"

Starting point" 3actor,

#ocus " 7ualit 'ro"uct

Means" 8igh 9ualit, inno+ation,'erformance Guarantee

$nds" !ro5t through well ma"e 'ro"uct


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Selling Concept" %&ld marketing concept '

Starting point" 3actor

#ocus " 'ro"uct

Means" Aggressi+e selling, hea+ 'romotion

$nds" !ro5t through high sales +olume

Marketing Concept" %new marketing concept'

Starting point" 0arget Market #ocus " customer nee"s

Means" integrate" marketing

$nds" !ro5t through customer satisfaction


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1hat are the 2ive Marketing Philosophies?

)he 2ive Marketing Philosophies help determine the

mana!ement of marketin!% Companies approach and

conduct business in different wa"s in order to achie&e their

or!ani*ational !oals% $he fi&e competin! concepts b"

which companies are !uided in their marketin! efforts are:

0% Production concept# which is based on the fact that

consumers fa&or products that are a&ailable and affordable%

Concentration on production efficienc" and effecti&e

distribution networks outwei!h the customer@s actual needs

and wants% $his is used primaril" when demand e,ceeds

suppl" and the focus is on findin! production methods thatcan brin! the price down to attract more customers%


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It is used in Hapanese companies at dated 0E to 0GE%

Currentl" the Chinese companies are adoptin! this concept in order

to penetrate in to the international markets with price ad&anta!es%

$his can be seen in all Chinese electronic include mobile phone% It assumes that consumers will fa&or those products that are widel"

a&ailable and low cost%

It concentrates ass production and ass sellin! throu!h hi!h

production efficienc"% Consumers don@t !i&e more attention on non price factors like

+ualit"# !uarantee etc%

All business efforts are directed at raisin! output le&els# produce

standardi*ed product and sell at a lower price%

Consumers alwa"s tr" to known the price of the competin!

products%

$his is traditional concept


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1% Product concept#

It is based on wa"s to impro&e the +ualit"# performance# and features to

attract bu"ers% $his philosoph" tends to spend too much time addin!

features to their products# rather than thinkin! about what peopleactuall" need and want%

$his concept belie&ed that consumers respond to !ood +ualit" products

that are reasonabl" priced%

It focused product +ualit"# features and performance%

It assumed that &er" little effort is re+uired to sell the !ood +ualit"

products%

$he" concentrate on desi!nin! lon! lastin! products and pro&ide

warrant" for a lon!er periods%

$his concept has !i&en birth to products like ercedes 9en*# =i4techshoes# are !uaranteed for a lon! time periods%

Althou!h this concept was not so successful in consumers markets%


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2% 'elling concept# which places the focus on sales rather than what

people actuall" need or want% ost of the time the product is

misrepresented which results in hi!h customer dissatisfaction%

$his concept e&ol&ed out of the failure of the product and productionconcept in a d"namic and competiti&e market% Jar!e +uantit" of

standardi*ed and low price merchandise could not sell their

products%

$his concept assumes that consumers will either bu" or not bu"

enou!h of the firm@s products unless the firms make a substantial

effort to stimulate their interests in its products%

Consumers interests can be di&erted or influenced b" promotional

acti&ities%

$his sellin! concept is based on the idea that people will bu" more!oods and ser&ices if a!!ressi&e sellin! methods are used%

6ote: $he first three concepts belie&ed in the slo!an B 1e sell what

we make B so marketin! concept has emer!ed%


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. Marketing concept# which focuses on what people need andwant more than the needs of the seller% $his concept is about

the importance of satisf"in! the customer@s needs to achie&e

compan" success% Products are de&eloped around those needsand wants%

Knless and until the !oods and ser&ices are desi!ned on the

basis of customer@s needs and wants of the tar!et market%

$his concept is customer oriented# inte!rated and !oal oriented% All plannin! and operation should be customer oriented%

P3 should be inte!rated and coordinated%

Identif" tar!et markets# customer needs and wants# inte!rated

marketin! for achie&ement of or!ani*ational !oals% In this concept marketers found the business slo!an B 1e make

what we can sell 3


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5% 'ocietal marketing concept-which not onl" uses the same philosoph" as the

marketin! concept# but also focuses around the products benefit to the

betterment of societ" as a whole%


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Marketing challenges in the new millennium

$he world has entered in to the new millennium% $oda" marketin!

firms are increasin!l" emphasi*in! on the !lobal markets%

arketin! firms face ma-or challen!es from the consumers of the10stcentur"%

1. Expect Higher quality: ualit" needs to be defined from the

consumer@s perspecti&e% $oda" consumers e,pect a &er" hi!h

+ualit" in the product offered to them%2. Expect better service: Consumers demand a &ariet" of ser&ices

attached with the core product%

3. Brand Parity: consumers seen all brands as similar in terms of

attributes% So marketin! firms need to work &er" hard to con&ince

bu"ers%

4. Decreased brand lyalty: consumers lo"alt" and retention has

become the ma-or challen!es for marketin! firms toda"%


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;. !nternet based in"r#atin: $he "oun! consumers areincreasin!l" usin! the internet as their prime source of

information on the compan" and it@s products%

% !ntelligent shpping: Consumers come to the purchase

decision after careful e&aluation of the products alternati&es

and outlets%

G% !ncreased price sensitivity: Consumers ha&e become more

price sensiti&it" and search for price &alue%

% !ntense c#petitin: arketin! firms face stiff competition

not onl" from the domestic sources but from a &ariet" of

forei!n sources%

%High pr#tin cst and l$ pr"it #argin

0E%Direct #ar%eting: Different firms of direct marketin! ha&e

emer!ed in the !lobal market% $he internet is increasin!l"

bein! used for e4 marketin!%


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$m'ortant 9uestions of unit

Marketing By Bhakt RAj BHAGAT

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