Sessions I Objectives

• What concepts underlie the discipline of marketing

• What basic tasks do marketing managers perform

• What is marketing concept and how does it contrast with other philosophies of doing business

Pratap Rawal 1

What is said?1. The best product or service will win.

2. Attack your competitors’ weakness with your marketing.

3. You have to run an ad 3-6 times before it is effective/profitable.

4. “I know this product like the back of my hand. I’ll be able to sell it.”

Pratap Rawal 2

What is said?5. Everyone loves it. I’ll have no problem selling a bunch.

6. The Internet is an easy place to make money.

7. You should cut back on your marketing and advertising expenditures in a recession.

8. I’ll be able to get money to finance my new product.

Pratap Rawal 3

Core Concepts of Marketing• Needs, Wants and Demands• Product or Offering• Value and Satisfaction• Exchange and Transactions• Relationships and Networks• Marketing Channels• Supply Chain• Target Markets

Pratap Rawal 4

Marketing Management

Process of analyzing,planning,implementing,coordinating and controlling programs involving the conception,pricing,promotion and distribution of goods, services and ideas designed to create and maintain beneficial exchanges with the target markets for the purpose of achieving organisational objectives

Pratap Rawal 5

SuppliersSuppliers

End UserMarket

End UserMarket

MarketingIntermediaries

MarketingIntermediaries

CompetitorsCompetitors Company(Marketer)Company(Marketer)

En

vir

on

men

t En

viro

nm

en

t

Modern Marketing System

Pratap Rawal 6

MarketingManagement

Implementing programs to create exchangeswith target

buyers to achieve

organizational goals

DemandManagement

Finding and increasing

demand, alsochanging or

reducing demand such

as inDemarketing

ProfitableCustomer

Relationships

Attracting new customers and retaining and

building relationships with current customers

Marketing Management

Pratap Rawal 7

Essential requirements of marketing

• The identification of consumer needs(What goods & services are bought, how they are bought, by whom they are bought and why they are bought)

• The definition of target market(grouping of customers by common characteristics, geographic, demographic, psychological etc)

• The creation of differential advantage by which a distinct competitive position relative to other companies can be established

Pratap Rawal 8

How the differential advantage can be established?

• Manipulation of the elements in the marketing mix

Pratap Rawal 9

The P’s of marketing

• Product-Product Management, New Product Development, Branding, Packaging

• Pricing-Discounts, Allowances, Terms of Business etc• Promotion-Advertising, Sales Promotion, Publicity, Public

Relations, personal selling• Place-Channel Management ,Physical Distribution• People-Employee selection, training, motivation• Physical evidence-layout , décor, ease of access, forms of

presentation• Process Management-How the customers are handled and

managed from the point of very first contact with the organization

Pratap Rawal 10

Company orientation towards marketplace

• The Production Concept• The Product Concept• The Selling Concept• The Marketing Concept• The Societal Marketing Concept

Pratap Rawal 11

Marketing and Sales Concepts Contrasted

Pratap Rawal 12

FactoryExistingProducts

Sellingand

Promoting

ProfitsthroughVolume

The Selling ConceptThe Selling Concept

StartingPoint Focus Means Ends

MarketCustomer

NeedsIntegratedMarketing

Profitsthrough

Satisfaction

The Marketing ConceptThe Marketing Concept

Societal Marketing Concept

Pratap Rawal 13

Societal Marketing

Concept

Company(Profits)

Consumers(Want Satisfaction)

Society(Human Welfare)

Holistic Marketing Concept

• Relationship Marketing• Integrated Marketing• Internal Marketing• Socially Responsible Marketing

Pratap Rawal 14

Pillars of the Marketing Concept

• Target Market• Customer Needs• Integrated Marketing• Profitability

Pratap Rawal 15

Marketing Tasks

• Target those customers most compatible with its resources

• Develop products that meet the needs of the target market better than the competitive products do

• Make products readily available• Develop customer awareness of the problem solving

capabilities of the company’s product line• Obtain feedback from the market about the

company’s productsPratap Rawal 16

The Customer FocusFactors influencing customer satisfaction• Delivery system• Product Performance• Image• Price Value Relationship• Employee Performance• Competition

Pratap Rawal 17

Requirement for developing customer driven organization

• Instilling customer oriented values and beliefs supported by top management

• Integrating market and customer focus into strategic planning process

• Developing strong marketing managers and programs• Creating market based measures of performance• Developing customer orientation throughout the organization

Pratap Rawal 18

Marketing Myopia• Because of myopic product focus others gain the benefits of growth• Define the business in terms of basic customer needs rather than

product– Transportation Business rather than railroad business- energy instead

of petroleum business, communication rather than telephone business– Xerox changed focus from copiers when it became the document

company• Defining a business in terms of generic need is useful in fostering

creativity and generating strategic options and avoiding internally oriented product/production focus

Pratap Rawal 19

Dynamism in Business and Marketing

Pratap Rawal 20

ESCALATING INFULENCE OF TECHNOLOGY

• Competitive Advantage• High Cost• Short Life Cycles• Range of Choices• Innovation Process• Analyzing Customer Needs• Information technology• Environmental responsibility

Pratap Rawal 21

Gillette Sensor Case• Gillette sensor razor introduced in 1990• Required about $200 million do develop and start

manufacturing• Another $110 million in commercialization • Business Challenge was formidable

To substantially increase Gillette’s profits sensor must perform a marketing miracle: halt a 15 year old trend towards inexpensive disposable razors at double the cost of shaving using disposables - sensor will be a hard sell

Pratap Rawal 22

Challenges …

CustomersExpect higher quality and service and customizationPerceive fewer real product differencesShow greater price sensitivityCan obtain extensive product information

Pratap Rawal 23

Brand ManufacturersIntense competition from local and foreign

brandsRising promotional costs and shrinking

profitsBargaining power of retailers who command limited shelf space

Pratap Rawal 24

Challenges …

Store based retailersSmall retailers versus the giant retailersStore retailing versus non store retailingLarge retailers selling “experience” rather than only product assortment

Pratap Rawal 25

Challenges …

Shifts• Marketing does marketing-Everyone does marketing• Making everything-outsourcing• Many Suppliers- Few suppliers- Partnerships• Relying on old market positions- uncovering new ones• Emphasizing on tangible assets- emphasis on intangible assets• Advertising- IMC• Store retailing-non store retailing• Selling to everyone- Selling to well defined target market• Market Share- Customer Share• Local- Glocal• Focusing on financial scorecard- Marketing Score card• Shareholder focus – Stakeholder focus

Pratap Rawal 26

ReengineeringOutsourcing-virtual companiesE-commerceBenchmarking-study world class performers and adopt best practicesAlliancesPartner suppliersMarket CenteredGlobalDecentralized

Company responses and adjustments to challenges

Pratap Rawal 27

Marketer responses and adjustments to challenges

Relationship MarketingCustomer lifetime valueCustomer Share instead of market share-Variety to existing customersTarget MarketingIndividualizationCustomer DatabaseIntegrated Marketing CommunicationChannels as partnersEvery employee a marketerModel based decision making

Pratap Rawal 28

The five major elements of strategy

Economic Logic

Arenas

Staging

Differentiators

Vehicles

Where will we be active?

How will we get there?

How will we win in the market place?

What will be our speed

and sequence of moves?

07/04/23 29Pratap Rawal

How will we obtain

our returns?