1mkt'g mgmt
TRANSCRIPT
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MARKETING
� ³THE PROCESS OF PLANNING &
EXECUTING THE CONCEPTION,
PRICING , PROMOTION, ANDDISTRIBUTION OF GOODS &
SERVICES TO CREATE EXCHANGE
THAT SATISFY INDIVIDUAL &
ORGANIZATIONAL GOALS´
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Mkt¶g mgmt
� Process involves:-
Planning, analysis, implementation, & control
� M.M can occur in an org. in connection with any
market:-
� Eg:- Automobile industry
V.P of personal deals in Labour market
V.P. of purchasing deals in RM Market
V.P. of Finance deals in Money market
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Mkt¶g works in customer market
� Carried out by:-
� Sales manager
� Advertising & prom. Manager
� Mkt¶g researcher � Customer service manager
� Product & brand manager
� Market & industry manager
� Mkt¶g V.PNb:- each job ( well defined tasks &
responsibilities)
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Popular image of M.M
� Is to stimulate demand for co¶s product
� Influencing the:-
1) Level2) Timing
3) Composition of demand
In a way to helps co¶s objective
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Other issues
� Many critical changes have taken place in
consumer & business market
� Aging pop¶n� An increasing no. of working women
� Later marriage
� More divorce & smaller families� Emergence of distinct ethnic consumer
group & needs
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Evolution of mkt¶g
� Production Era ( Industrial revolution till
1920)
� Sales Era (1920 ± mid 1950)� Mkt¶g Era ( 1950 onwards)
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Marketing as a demandmanagement
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Mkt¶g is demand mgmt
� Marketer have ot influence 3 level of demand
Nature of demand
Level of demand
Time of demand
Latent demand
Unwholesome demand
-ive demandno demandFull demand
Over full demand
Regular demand
Irregular demand
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Latent demand
³many consumer may share a strong need that
CANNOT be satisfied with EXISTING product´
Eg:- Harmless cigaretteMore fuel-efficient car
ROLE:-
Measure the size of potential market & developeffective goods that satisfy demand
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Unwholesome demand
� ³Attrack organized effort to discourage
their consumption´
Eg:- un-selling campaign against:-Cigarettes
Alcohol
X-rated moviesLarge families
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No demand
� ³Tgt consumer may be UNINTERESTED
or INDIFFERENT to product´
� Eg:Farmer¶s may not be interested in newfarming method
� College students««««.foreign method
ROLE:-Find way to connect benefit of product with
person¶s natural NEED
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Over full demand
� ³org faces a demand level that is higher than they canor want to handle´
� Eg:- Al. collapsible tubes Prod¶n capacity
� Eg:-govt. hospital, MBA Programme ,Doctor¶s , cinema hall etc«
� Marketing Role:-
� De-marketing
� Find way to REDUCE DEMAND temporally /permanent
� Raising prices / reducing promotion / services
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Coping with full demand
� Tactical alternative are:-
1. Prior reservation / appointment
2. Computer aided processing3. Assistance of capable person
4. Facilities of waiting without boredom
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Regular of demand
� ³there may be even, steady , regular demandof product´
� Eg:- Toiletries , cosmetics
� Market share rise or decline due tocompetitive factor
� Mkt¶g role:-
1. Adopt aggressive strategies2. Heavy promotions
3. Intensive dist¶n
4. Product development
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Irregular demand
� ³Org faces demand that varies´
� Seasonal , daily, hourly basis
� Ideal capacity or overcrowded capacity� Eg:- museum / hotels / cinema / world cup
� Mkt¶g Role:-
� ««.sychromarketing� To alter the same pattern of demand THRU
«flexible pricing / promotion / other incentive
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Core concept of marketing
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Core concept of mkt¶g
³ mkt¶g is a social & managerial process by whichindividual & groups obtain what they need &
want THRU creating ,offering, & exchanging
product of value with other´1) Need , want & demand
2) Products
3) Value, cost & satisfaction4) Markets
5) Mkt¶g & marketers
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Need, want & demand
� Human need
³Is a state of felt deprivation of some basic
satisfaction´
People need ( food, air, water, F,C,S,
Strong desire ( Recreation, edu, etc.)
Strong preference for (Brands of basic goods &
services)
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Human want
³ Are desire for specific satisfier of these deeper
needs´
� Person needs food & want a hamburger
� Person needs clothing WANTS RAYMOND
People¶s needs are few, but wants are many
� Human wants are shaped & reshaped by social
forces & inst.(church, school,families,&
business corp¶n
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Human demand
³Are wants for specific products that are backedby an ability & willingness to buy them´
� Wants become demands when supported bypurchasing power
� Many people wants mercedes, only few areable to buy.
� Co¶s role:-
� measure1) how many people want &
2)how many would actually be willing & able to
buy.
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Product
� P is anything that can satisfy N & W
� Importance of physical product lies:-
1) NOT so much in owning
2) As in obtaining the service they render
Eg:- Car , microwave oven, lipstick
M
arketer¶s role:-sell the benefits or service
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Value , cost , satisfaction
� How consumer choose among many product?
� Guiding concept customer value
� Rank the product fm most need satisfying to theLEAST-need satisfying
� Eg:- Travel to destination
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Exchange , transaction & relationship
� Mkt¶g emerge when people decide to satisfy N
& W thru exchange
� Exchange is one of 4 ways people can obtain
product:-
� 1)Self Prod¶n ( Hunting / fishing)
� 2)Coercin (steal food fm others)
� 3) begging (Hungry people) - gratitude
� 4) exchange ( Money)
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Exchange map
� Want list of both the parties
Caterpillar
(marketer )Construction co.
(prospects)
�Good price for equipment�On time payment
�Good word of mouth
�High quality , durable equipment
�Fair price for value
�On time delivery of equipment
�Good financing term
�Good parts & services
Transaction involve:- 2 things of value
1) Agreed upon condition
2) A time of agreement & place of agreement
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Markets
� ³The concept of exchange leads to the
concept of market´
� A market consists of all potential customer
sharing a particular NEED or WANT who
might be willing & able to engage in a
exchange to satisfy that need or want.
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Structure of flow in a modern exchange
economy
Resource
market
Goverment.
market
Middlemen
market
Manufacture
Market
industry
Consumer
market
Money
Resources Resources
money
Taxesgoods
Service
money
Service moneyTaxes goods
serviceTaxes goods
Servicemoney
Taxes
goods
Goods & service Goods & service
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� Outer loop shows an exchange of information
� Inner loop shows an exchange of money for goods
� Seller sells goods & service to market in return
receives money
� Manufacturer go to resource market (rm,labor,money) Buy resources & convert into goods &
service
� Govt: buys goods fm resources(mfg, middlemen)
pays them IT TAXES THIS MARKET
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Marketing & marketer
� ³The concept of market brings us full
circle to the concept of marketing´
� Mktg means human activity taking placein relation to market.
� If one party is more actively seeking on
EXCHANGE than OTHER party
1. 1st party is marketer
2. 2nd party as prospect
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Main element of modern mktg. system
ENVIROMENT
SUPPLIER
COMPANY
MARKETER
COMPETITOR
MARKETING
INTEMEDIARIES
END-USER
MARKET
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Concept of marketing
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COMPANY ORIENTATION
towards market place
� 5 competing concept under which org.
conduct their mkt¶g activities:-
1. The production concept2. The product concept
3. The selling concept
4. The marketing concept5. The societal marketing concept
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Production concept
� ³consumer will favour those product that are
widely available & low in cost´
� Prod¶n manager achieving HIGH prod¶n
efficiency & wide dist¶n coverage
� Eg:-
� Nirma detergent
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The product concept
� Holds that ³consumer will favour those product that
offer most QUALITY , PERFORMANCE, INNOVATIVE
features
� Manager making superior product & improving themover time
� Assumption:-
� Buyer admire well-made product
� Managers are caught in love affair with their product
� Eg:- Just for kids toothpaste
� Eg:- File mfg. (Assumption they are best in the world)
� Eg:- General motors (failed to ask customer)
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The selling concept
� Holds that
� ³consumers if left alone will not buy enough of
org. products´� Org must take aggressive selling & promotion
efforts
� Eg:- Eureka forbes ( vaccum cleaners)
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The marketing concept
� Holds that:-´ the key of achieving org.
goals consists in determining the needs &
wants of tgt market delivering the desired
satisfaction more effectively efficiently
than competitor´
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Mktg concept rests on 4 main pillar
Factory
Target
market
ProductSelling
promoting
Profit thru
Sales
volume
Customer
needs
Co-ordinating
marketing
Profit Thru
Customer satisfaction
STARTING
POINTFOCUS MEANS ENDS
A) The Selling concept
B The marketin conce t
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Target market
� No company can operate in every market &
satisfy every need
� Nor it can do good job in broad market
� Co¶s do best when they define their TGT market
carefully & prepare tailored made program
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Marketing concept
1. Market focus:- who are our customer?seg. & tgt market
2. Consumer orientation:-
what are their needs?Consumer basedpractices
3. co-ordinated mktg: what must we do to wintheir preferences?
Integrated marketingwith other function
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Eg:- HLL
� Successful marketer in India
� Oldest & largest soap in India why?
� Priced low «.within reach of common man
� Pkg. 150gm offer value for money
� Besides being hard working, long lasting
� ³Healthy´ positioning appeal since 60¶s
� ³tandurusti ki raksha´ catchy slogan
� Dream it sells of being winner
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Customer need
� ³A company can define it tgt market BUTfail to understand it¶s need´
� Eg:- Chemical co. invented new substance
that hardened marble like material i.e tubbath
� Actually understanding customer need &
wants is not easy task� Customer seek in a code that require
some interpretation.
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Eg:- customer who says he wants
³Inexpensive car´
� Distinguish among 5 types of need
1. Stated needs: customer wants inexpensive car
2. Real need:operating cost is low, not initial price
3. Unstated need:Expected good service fm dealer
4. Delight need: buys car & receive complimentary
5. Secret need: wants to be seen by friends as a value
oriented savvy customer
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� Decide customer need fm customer point of
view1. What they want?
2. What they need?
3. What they really need?
³To meet the customer ³REAL NEED´ better than
any customer can
� Sales comes fm 2 group1. New customer
2. Repeat customer
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A SATISFIED CUSTOMER
� Buys more & stay longer
� Buys additional product as co. introduces &
upgrades it¶s product
� Talks favorably about the company & it¶sproduct
� Pays less attention to competing brands &n
advt¶g� Offers product / service ideas to company
� Cost less than to serve new customer
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Co. should measure customer
satisfaction
� How many are highly satisfied?
� Somewhat satisfied
� Somewhat dissatisfied
� Highly dissatisfied
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Co-ordinated marketing
� NOT all the employees are trained & motivatedTO WORK for customer
� Eg:- production & sales dept.
� Eg:- Mkt¶g v.p wants to increase airline traffic
share
� STRATEGY:-Build up customer satisfaction
thru
1. Providing better food2. Cleaner cabins
3. Better trained cabin crew
HE HAS NO AUTHORITY IN THESE MATTER
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� Catering dept :- orders food that keeps
cost down� Maintenance dept:- uses cleaning service
that keeps cost down
� Personal dept:-hires people whether theyare friendly & inclined to service other
people
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� Marketing is a system of value exchange
� ³Is the process of planning & executing the
ideas, pricing, promotion & distribution of goods & services and ideas to create
exchange with tgt group that satisfy
customer & organization objective´.
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Difference between sales & marketing
CRITERIA SELLING MARKETING
Orientation Production capability Product market
compatibility
Approach Promotion product &
services
Identifying & fullfilling
customers needs
Direction PUSH STRATEGY PULL STRATEGY
Emphasis Aggressive
salesmanship
Create a market niche
Time Frame Short to medium run Medium ± long run
Results Profit thru sales volume Profit thru customer
satisfaction
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Goals of marketing
� Mktg is a integral part of an organization
� Therefore it should contribute to the goals of an
organization
� Goals of marketing manager is derived from
the goals of enterprise
G l f k ti
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Goals of marketing1. Profitability:
� Sales revenue maximization
� Cost minimization2. Growth
� sales growth maximization
� Product development
� Market penetration
� Market development
� Diversification
3. Market standing
� Innovation
� Market leadership� Customer satisfaction
4. Image
� Brand Image
� Company Image
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Goals of marketing
ENTERPRISE MARKETING
PROFITABILITY �Sales revenue maximization
�Cost minimization
GROWTH �Sales growth maximization
�Product development�Market penetration
�Market development
�diversification
MARKET STANDING�Innovation
�Market leadership
�Consumer satisfaction
IMAGE �Brand Image
�Company Image