Marketing Mgt., Strategies & Plans

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Marketing Marketing

Prakash Sharma Asst. Business Development Officer

IndiaReport

Metrix Web Services (P) Ltd.



The Importance of MarketingThe Importance of Marketing Financial success depends on

MARKETING success

CMO - just as CEO and CFO

³Tricky´ - Kodak, Sony, Xerox

A never-ending pursuit - Microsoft, Nike,

Apple



Fundamental concepts


Needs: Basic human requirements - food,

shelter, clothing, recreation, education,

entertainment

Wants: When the above needs are directed

to specific objects that might satisfy needs

Wants are shaped by one¶s society

Demands are wants for specific products

backed by an ability to pay





Value is the customer¶s perception of all of

the benefits of a product or service weighed

against all the costs of acquiring and

consuming it

Benefits can be functional, emotional or

self-expressive (Dettol, Nike, Maruti 800)



What is Marketing?

What is Marketing?

³Marketing is an organizational function

and a set of processes for creating,

communicating, and delivering value to

customers and for managing customer

relationships in ways that benefit the

organization and its stake holders´AMA



Exchange and Transactions


Exchange is the core concept of marketing

Exchange is the process of obtaining a

desired product from someone by offering

something in return - therefore, there are at

least two parties and each party is capable

of communication and delivery

Exchange is a value creation process

because it leaves both parties better off





When an agreement is reached after

negotiation, we say that a transaction takes

place

A transaction is a trade of values between

two or more parties



What is Marketed?

What is Marketed?

Goods

Services

Events

Experiences

Persons



What is Marketed?

What is Marketed?

Places

Properties

Organizations

Information

Ideas



Marketing Mix:

ProductMarketing Mi

x:Prod

uct

A product exists within a product category

e.g. Nike, Reebok, Adidas exist in the

athletic shoe category

What product attributes and benefits are

important to the consumer?



Marketing Mix:

ProductMarketing Mi

x:Prod

uct

How is the product perceived relative to

competitive offerings?

Includes product design, product operation

and performance, the physical dimensions

of packaging and branding



Marketing Mix:

PlaceMarketing Mix:

Place Includes the channels used in moving the

product from the manufacturer to the buyer

Distribution channels: Manufacturer -

Wholesaler - Retailer - Consumer

Also includes geographical coverage

Storage (Warehouse)



Marketing Mix:

PriceMarketing Mix:

Price Includes the price at which the product or

service is offered for sale and the level of

profitability

It is important to consider while pricing

how much the market can bear, competitive

pricing and the value the consumer sees inthe product



Marketing Mix:

PromotionMarketing Mix:

Promotion Personal selling

Advertising

Sales Promotion

Direct Marketing

Marketing/Public Relations Point-of-sale/Packaging



Macro MarketingMacro MarketingMacro marketing refers to the overall social

process that directs the flow of goods and

services from producer to consumer. It is

the economic system that determines what

and how much is to be produced and

distributed by whom, when, and to whom



8Macro Marketing

Functions

8Macro Marketing

Functions

Buying, which refers to consumers seeking

and evaluating goods and services

Selling, which involves promoting the

offering

Transporting, which refers to the movement

of goods from one place to another



8Macro Marketing

Functions

8Macro Marketing

Functions

Storing, which involves holding goods until

customers need them

Standardisation and grading, which entails

sorting products according to size and

quality

Financing, which delivers the cash andcredit needed to perform the first five

functions



8Macro Marketing

Functions

8Macro Marketing

Functions

Risk taking, which involves bearing the

uncertainties that are part of the marketing

process

Market information, which refers to the

gathering, analysis, and distribution of the

data necessary to execute these marketingfunctions



Sales & Marketing

Sales & Marketing

Selling is one activity of the entire

marketing process

Selling is the act of persuading or

influencing a customer to buy (actually

exchange something of value for) a product

or service



Sales & Marketing

Sales & Marketing

Marketing activities are usually the most

significant force in stimulating sales

Oftentimes, marketing activities must occur

before a sale can be made; they sometimes

follow the sale as well, to pave the way for

future sales and referrals



Sales & Marketing

Sales & Marketing

At the heart of the sales concept is the

desire to sell a product that the business has

made as quickly as possible to fulfil salesvolume objectives. When viewed through

the marketing concept lens, however,

businesses must first and foremost fulfilconsumers' wants and needs. The belief is

that when those wants and needs are

fulfilled, a profit will be made



Marketing and customer valueMarketing and customer value



The Value ChainThe Value Chain

Proposed by Michael Porter as a tool for

identifying ways to create more customer

value

Every firm is a synthesis of activities

performed to design, produce, market,

deliver, and support its product



The Value ChainThe Value Chain

The firm¶s task is to examine its costs and

performance in each value-creating activity

and to look for ways to improve it

The firm should estimate its competitors¶

costs and performances as benchmarks

It should go further and study the µbest of class¶ practices of the world¶s best

companies



Core Bu

siness ProcessesCore Bu

siness Processes The market sensing process

The new offering realization process

The customer acquisition process

The customer relationship management

process

The fulfillment management process



Core Bu

siness ProcessesCore Bu

siness Processes Strong companies develop superior

capabilities in managing and linking their

core business processes (Walmart - VMI)

To be successful, a firm also needs to look

for competitive advantages beyond its own

operations, into the value chains of suppliers, distributors, and customers -

Value delivery network - Supply chain



Core CompetenciesCore Competencies 3 characteristics:

Makes a significant contribution to

perceived customer benefits

It has application in wide variety of markets

It is difficult for competitors to imitate

(Nike - shoe design and merchandising.

Manufacturing is outsourced)



Core CompetenciesCore Competencies Competitive advantage also accrues to

companies that possess distinctive

capabilities

Core competencies tend to refer to areas of

special technical and production expertise

Distinctive capabilities tend to describeexcellence in broader business processes



Activity

Systems

Activity

Systems

Competitive advantage ultimately derives

from how well the company has fitted its

core competencies and distinctivecapabilities into tightly interlocking

µactivity systems¶

(Dell/IKEA)



SWOT A

nalysisSWO

T A

nalysis STRENGTHS: internal capabilities,

resources

WEAKNESSES: internal limitations

OPPORTUNITIES: favourable factors or

trends in the external environment

THREATS: unfavourable external factors



Feedback and Control

Feedback and Control

As it implements its strategy, a firm needs to track

the results and monitor new developments

The marketplace will change; and a review andrevision of implementation, programs, strategies,

or even objectives is required

Once an organization fails to respond to a changed

environment, it becomes increasingly hard to

recapture its lost position (Lotus 1-2-3)



Th anx

Marketing Mgt., Strategies & Plans

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