Está en la página 1de 55

Marketing

Marketing is everywhere, it touches all of us every day of our lives It is embedded in everything we do, from the clothes we wear to websites we click on!

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 understand the 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 be needed is to make the product or service available. Peter Drucker

Difference between Selling and Marketing


SELLING
1. Selling starts with the seller and is preoccupied all the time with the needs of the seller

MARKETING
Marketing starts with the buyer and focuses constantly on the needs of the buyer

2. Seeks to quickly convert products into cash 3. Concerns itself with the tricks and techniques of getting the customer to part with their cash for products available with the salesman
4. Views business as goods producing process

Seeks to convert customer needs into products Emphasizes on fulfilling the needs of the customer

Views business as customer satisfying process

Difference between Selling and Marketing


SELLING MARKETING 5. Overemphasizes the exchange aspect Concerns itself primarily with the value without caring for value satisfaction satisfaction that should flow to the customers from the exchange 6. The firm first makes the product and then figures out how to sell it 7. Sellers preferences dominates the formulation of the marketing mix 8. Emphasis is on staying with existing technology and reducing cost The product is a consequence of a market research effort Buyer determines the shape the marketing mix should take Emphasis on innovation in every sphere; on providing better value to the customer by adopting better technology

Difference between Selling and Marketing


SELLING
9. Cost determines the price

MARKETING
Consumer determines the price, price determines the cost

10. Transportation, storage and other Distribution is seen as a vital distribution functions are seen as function keeping customers mere extensions of the production convenience in focus function

11. Different departments operate as All departments operate in an highly separate water tight compartments integrated manner, the sole purpose being generation of customer satisfaction
12. Selling views customers as the last link in business Marketing views the customer as the very purpose of the business, sees the business from the point of view of the customer

Marketing in Practice

Marketing is far too important to leave to the marketing department David Packard of Hewlett Packard

Good Marketing is No Accident


The roaring success of four-wheeler Tata Ace, in a market earlier dominated by threewheeler load carriers, was due to a deep understanding of the market needs and customer requirements.

What is Marketing?
Marketing is meeting needs profitably Marketing 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 stakeholders American Marketing Association

What is Marketing Management?

Marketing management is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value.

What is Marketed?
Goods Services Events & Experiences Persons Places & Properties Organizations Information Ideas

What is marketed?

Goods Physical products like automobiles, electronic goods, cosmetics, machines etc (Durables and non durables) Services As economies advance a growing proportion of their economies focus on marketing of services. Hotels, airlines, doctors, teachers, bankers, management consultants, engineers etc provide service Events Time based events, trade shows, artistic performances, sporting events, company anniversaries etc Experiences Marketing an experience, example a theme restaurant, an amusement park ride, bungee jumping etc

What is marketed?

Persons Celebrity marketing, marketing for presidential candidate, Artists, CEOs, high profile lawyers, financiers, all get help from celebrity marketers. Abishek Bachchan has got a 8 crore payment for first 8 shoot of What an idea sirji campaign of Idea mobile services. It shows how well Abishek has marketed himself to get such high payments Places Cities, states, regions, nations etc are marketed to attract companies, tourists, new residents etc. Gujarat is marketed as Vibrant Gujarat, India Incredible India Properties Properties here refer to real estate example Ambi valley, Sahara City or financial property like stocks and bonds. Organisations Organisations actively work to build strong image in the minds of the customers. Philips Sense and Simplicity

What is marketed?

Information Books, magazines, newspapers, TV news channels. Even companies selling physical products attempt to add value by the use of information. Idea - Every market offering includes a basic idea. Charles Revson of Revlon has observed, In the factory we make cosmetics; in the store we sell hope . Social marketers are promoting ideas about encouraging family planning, discouraging smoking etc.

Marketing Can Promote Ideas Ad against smoking

Who Markets

Marketer - A person or organization seeking a response attention, purchase, vote, donation from a potential customer or prospect. Marketers are skilled at stimulating demand for a company's product offering's). Marketing Managers seek to influence the level, timing, and composition of demand to meet the organization's objectives

Demand States
Negative Nonexistent Latent

Declining

Irregular

Full

Overfull

Unwholesome

Demand states

Negative Demand - Customers dislike a product offering and may pay a price to avoid it. Example - Products tested on animals (people concerned about animal welfare), products using animal fat (for vegetarians) Nonexistent Demand - Customers may be unaware or uninterested in a product offering - funeral plot , family planning operation Latent Demand - Customers may share a strong need that cannot be satisfied by an existing product offering. Example - Alternative energy car; strong need for a drug to fight Parkinson's disease.

Demand states

Declining / falling Demand - Customer begin to buy a product offering less frequently or not at all. example Opel car of GM not doing well Irregular demand - Customer purchases vary on seasonal, monthly, daily or even hourly basis. Example Hotels, airlines are in demand during holiday periods Full demand - Customers are adequately buying all product offerings put into the marketplace. Example Hindustan Unilever sells a variety of different products, and all are in demand (Lux, pears, ponds etc.)

Demand states

Overfull demand - Too many customers would like to buy a product offering. Example Petrol, oil (Demarketing*- Save Oil) Unwholesome demand - Customers may be attracted to product offerings that have undesirable social consequences. Example Cigarettes

Core Marketing Concepts


Needs, wants, and demands Product, Market Target markets, positioning, segmentation

Value and satisfaction Marketing channels

Marketing Concepts

Needs - a human need is a state of felt deprivation Stated need The consumer wants an inexpensive car Real need The consumer wants a car whose operating cost is low Unstated need Consumer expects good service from the dealer Delight needs The consumer would like an onboard navigation system Secret needs The customer wants his friends to see him as a savvy consumer Want The form taken by human need as they are shaped by culture and individual personality Demand Human wants backed by buying power Product A product is anything that can be offered to a market for attention, acquisition, use or consumption Market A set of actual and potential buyers of a product Exchange The act of obtaining a desired object from someone by offering something in return Target Markets, Positioning and segmentation A marketer can rarely satisfy everyone in a market, therefore marketers start by dividing the market into segments

Marketing Concepts

Value and satisfaction The offering of the company will be successful if it delivers value and satisfaction to the target buyer. Value reflects the sum of perceived tangible and intangible benefits and cost to the customers. It is primarily a combination of quality, service and price Marketing channels To reach the target markets, the marketer uses three kinds of marketing channels communication channels, distribution channels and service channels

Positioning Luxury of a car and thrill of a SUV Press ads of the Scorpio focused on the functional features of the vehicle and the television ads focused on emotional benefits.

A Simple Marketing System

Marketplaces and Marketspaces


Marketplace (physical stores, departments) Marketspace (digital, online) Metamarket (A cluster of complimentary products and services that are closely associated in the minds of the customer. The automobile meta market consists of automobile manufacturers, used car dealer, financing companies, insurance companies, service shops, auto sites on the internet, spare part shops etc )

www.marutitruevalue.com

Key Customer Markets


Consumer Markets Global Markets

Business Markets

Nonprofit/ Government Markets

Key Customer Markets

Consumer Markets Companies selling mass consumer goods and services such as soft drinks, soaps etc. Much of the brand strength depends on developing a superior brand image, ensuring its availability, and backing it with suitable communication (Advertising plays a big role) Example food grains, dairy products, Airline tickets Business Markets Companies selling business goods and services to businesses often face well trained, well informed buyers who are skilled in evaluating competitive offerings (Advertising can play a role but the sales force, price, and the companys reputation for reliability is important) Example Industrial chemicals and adhesives Global Markets Companies selling goods and services in global market place face additional challenges. They must decide which countries to enter, entry mode, pricing in different regions, adapting communications to different cultures etc Example - Sony, Procter and Gamble

Key Customer Markets

Nonprofit and Governmental Markets Companies selling their goods to such markets need to price their services carefully as these buyers have limited purchasing power. Example CRY

The New Marketing realities The marketplace isnt what it used to be


Information technology Globalization Deregulation Privatization Competition Convergence Consumer resistance Retail transformation

The new market realities..

Information Technology: Digital revolution has created an information age. The industrial age was characterized by mass production & consumption, high inventory, rampant advertising and high discounting. The information age promises accurate level of production, targeted advertising & rational pricing. Todays business is carried over internet, Intranet and extranet. Globalization: Technologies advances in transportation and communication has made it easier for the companies to market in other countries and for the consumer to purchase from markets in other countries. Deregulation: Many countries have de regulated industries to create competition and greater opportunities. E.g. Tele communication Industry in India. Privatization: Countries have converted Public companies to private companies or increase their stake to improve their efficiency.

The new market realities

Heightened Competition: Big brands are facing competition from forging as well as domestic brands, resulting in more advertising and promotion costs and shrinking margins. This is aggravated by the powerful retailers who are now marketing their own brands over the limited shelf space. Industry Convergence: The companies are realizing the opportunities for back word and forward integration & therefore the industry boundaries are blurring at a increasing speed. Once chemical, now pharmaceutical companies are going into biotech research for more control and profit. Same is the case with IBM and Wipro who are offering total solution. Retail Transformation: Big retailers are giving tough time to small family shop because of the price advantage and variety offered. At the same time the big retailers are challenged by catalogue houses, direct mail order by news paper, telephone, internet, home shopping TV and e commerce on the internet. To counter this the malls are offering coffee shops and children play area to offer a total shopping experience.

Consumer Resistance: Excessive marketing and hard sell are resulting in consumers rejecting the products Disintermediation: The early success of Yahoo, Amazon etc, for online dot.com has threatened the traditional model Distributor, whole seller, retailers. E.g. Dell Direct. Many established companies are now also making their products online to take benefit of the new economy.

The New Marketing realities. New Consumer Capabilities

A substantial increase in buying power A great amount of information about practically anything Greater ease in interacting and placing and receiving orders An ability to compare notes on products and services An amplified voice to influence public opinion

New Company capabilities


Internet Research Speed of internal information Speed of external information buzz Better target marketing Mobile marketing Differentiated goods Improved purchasing, recruiting, training, and
communications

Company Orientations
Production Product

Selling

Marketing

Company Orientations towards market place

Production Concept It is one of the oldest concepts in business. It holds that consumers will prefer products that are widely available and inexpensive (Maximize output and achieve a lower unit cost) . Managers of production oriented companies concentrate on achieving high production efficiency and distribution. Henry ford believed that if the cost is reduced, more people would buy Ford Model T. He did not bother about the consumer preferences and even joked that customers can have ford in any color provided it is black!

Company Orientations towards market place

Product concept proposes that consumers favor products that offer the most quality performance or innovative features A product oriented firm fails to achieve great marketing success despite turning out a quality product due to failure in determining the needs of the customer For example an organization may bring out a new modified version of mouse trap for mice menace but the customer may want a better solution and not a better mouse trap
It can lead to marketing myopia

Company Orientations towards market place

Selling concept This concept holds that consumers if left alone will not buy enough of the organizations products. The organization must therefore undertake an aggressive selling and promotion effort Firms producing products which have non-existent demand usually follow this strategy, for example Encyclopedias, insurance etc

Company Orientations towards market place

Marketing Concept - It emerged in the mid-1950s, Instead of a product centered philosophy, business shifted to customer centered sense and respond philosophy

Reactive market orientationunderstanding and meeting consumers expressed needs. Proactive marketing orientationresearching or imagining latent consumers needs through a probeand-learn process.

Companies that practice both reactive and proactive marketing orientation are implementing a total market orientation.

Dell computers does not produce a perfect computer for the target market, rather provides a product platform on which each person customizes the features he desires in the computer

Market driven organizations

Their products reflect customer needs and represent solution to customers problems as reflected by Nokias cell phones and Tatas Ace Mini truck Their products are perceived as superior to competition. The superiority is achieved through developments of new features, better technology, superior performances or superior service. Other examples are Kingfisher airlines (first airline to offer personal entertainment system to all passengers), Apple, Tatas Nano, Google It also includes process innovation example IBN news channel which was first to involve viewers in news production Logistics firm FedEx , in 2006 introduced smart package which is used for transporting human organs.

Some of the most admired companies in the world


1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Apple GE Toyota Motor Procter and Gamble FedEx Johnson & Johnson Microsoft Wal-Mart stores Berkshire Hathaway Honda Motor

Holistic Marketing Concept


Holistic marketing can be seen as the development, design, and implementation of marketing programs, processes, and activities that recognizes the breath and interdependencies of their efforts. Holistic marketing recognizes that everything matters with marketingthe consumer, employees, other companies, competition, as well as society as a whole. Holistic marketing: 1. Internal marketing 2. Socially responsible marketing 3. Integrated marketing 4. Relationship marketing

Holistic Marketing Dimensions

Relationship marketing concentrating on the right customers - The Customer Pyramid


Most profitable customers
Platinum What segment spends more with us over time, costs less to maintain, spreads positive word-of-mouth?

Gold

Iron

Lead

Least profitable customers

What segment costs us in time, effort and money yet does not provide the return we want? What segment is difficult to do business with?

Integrated Marketing

The Marketers task is to create, communicate and deliver value for the customer McCarthy classified these activities as marketing mix tools of 4 broad kinds which he called the 4 Ps of Marketing Product, Price, Place and Promotion

The Four Ps

Copyright 2009 Dorling Kindersley (India) Pvt. Ltd.

1-48

4 Ps from the buyers point of view

From the buyers point of view, the four dimensions which represent customer value are indicated by the acronym SIVA Solution How can I solve my problem? Information Where can I learn about it? Value What is the total damage/sacrifice? Access Where can I find it?

Performance Marketing

Financial Accountability Social Responsibility Marketing

Social Initiatives Corporate social marketing Cause marketing Cause-related marketing Corporate philanthropy Corporate community involvement Socially responsible business practices

Corporate Social Initiatives


Type Corporate Social Marketing Cause Marketing Description Supporting Behavior change campaigns Promoting social issues through efforts such as sponsorship, licensing agreements, advertising Example McDonalds promotion of immunization campaign McDonalds sponsorship of Forest at Sydney

Corporate Philanthropy

Making gifts of money, goods or time to help non profit organizations


Providing in kind or volunteer services to community

McDonalds contribution to charities


McDonalds catering meals for firefighters in Australia

Corporate Community Involvement

Corporate Social Initiatives


Type Socially responsible business practices Description Adapting and conducting business practices that protect the environment and human and animal rights Donating a percentage of revenue for a specific cause based on the revenue occurring during the announced period of support Example McDonalds requirement that the living space for hens should be increased in farms McDonalds earmarking $1 for childrens charities from every big Mac and pizza sold on McHappy day

Cause related marketing

Chief Marketing officer

Financial success often depends on marketing ability. Many firms have created a Chief Marketing Officer (CMO) to put marketing on an equal footing with other Chief Executives such as a CFO and CEO. Marketing is tricky and making the right decisions is not always easy. The functions of the CMO are Strengthening the brands Measuring marketing effectiveness Driving new product development based on customer needs Gathering meaningful customer insights Utilizing new marketing technology

Marketing Debate: Take a Position!


1. Does marketing shape consumer needs? or Does marketing merely reflect the needs and wants of consumers? 2. All organizations need marketing (business and non business sectors). Do agree with the statement? Give reasons

Important questions
1. 2. 3. 4. 5.

6.

7.
8.

What is Marketing ? Detail the differences selling and marketing. What is Marketed? Explain Metamarket with an example. What are the different demand states? Consider the societal forces noted in the chapter (e.g., information technology, globalization, deregulation, consumer resistance, retail transformation). How have marketing practices shifted to accommodate and even leverage these forces? What is different orientations towards the market place? What are the 4 Ps of Marketing? What is Holistic Marketing?

También podría gustarte