1. INRODUCTION TO MARKETING MANAGEMENT & KEY CONCEPTS
WHAT IS MARKETING?
Marketing deals with identifying and meeting human and social needs profitably.
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.
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.
Example: Sony Playstation, Gillette Vector, Maruti Suzuki 800, Nokia N Series, Sony Walkman, Apple iPod, Tata Nano
WHAT IS MARKETED?
Goods: TV (Sony, LG), Cars (Ford, Tata), Watches (Titan, Timex, Casio), Fruits, vegetables, etc.
Services: Banks (ICICI, IDBI, SBI), Airlines (Jet, Kingfisher), Hotels (Taj, Hilton, ITC), Restaurants, doctors, lawyers, etc.
Events: Sports (IPL, World Cup, Formula 1, Olympics), Entertainment (Dance Shows, Film Awards, Artistic performances), trade shows, seminars, etc.
Experiences: Theme parks (Essel World, Water Kingdom, Disney Land), Theme restaurants (Village, Urban Tadka), “Palace on Wheels”, etc
Persons: Celebrities (Amitabh Bachchan, Sachin Tendulkar, Shahrukh Khan). Politicians, etc
Places: Madhya Pradesh, Incredible India, Kerala (God’s Own Country), Rajasthan, Char Dham, Australia, USA, etc.
Properties: Real estate, stocks, bonds.
Organizations: Tata, RIL, Aditya Birla Group, Bharti, Sony, Nokia
Information: Education (schools, colleges, tuitions), encyclopedias, books, etc
Ideas: social causes (AIDS awareness, family planning, no smoking)
MARKETS
A market is a place where buyers and sellers are gathered to buy or sell goods.
Term ‘market’ is also used to cover various groups of customers. Example:
Need markets – diet seeking
Product markets – cars
Demographic markets – youth
Geographic markets – Delhi market
Five basic markets:
Key Customer Markets:
1. Consumer markets – ex: FMCG
2. Business markets – ex: B2B
3. Global markets – ex: Pepsi in India
4. Nonprofit and Governmental markets
HOW BUSINESS AND MARKETING ARE CHANGING?
Changing technology: order management, online selling (Amazon, eBay), etc
Globalization: increasing competition, quality, access to global markets
Deregulation: less control (Telecom, Aviation)
Privatization: increase in efficiency (IPCL to Reliance)
Customer Empowerment: more knowledge, price sensitivity, value
Customization: individually differentiated goods (Dell, Asian Paints)
Heightened Competition: rising promotion costs, reduced profits, etc (Telecom: Airtel, Reliance, Tata Indicom, Vodafone, Idea, BSNL, Aircel, Loop)
Industry Convergence: example - Telecom Media convergence
Retail Transformation: giant retail houses (Big Bazaar, D Mart), Shopping malls, online retail, etc.
Disintermediation: direct reach to customer
NEEDS, WANTS, & DEMANDS
Needs – basic requirements
Wants – needs directed towards specific objects (water – bottled water)
Demands – wants for specific products backed by ability to pay (mobile – Blackberry)
SEGMENTATION, TARGETING AND POSITIONING
The marketers divide the market into segments based on some similar buying characteristics, like income, age, location, lifestyle, etc.
Then decide which segment is most profitable and could be served well
Develop a market offering for each segment.
Position the offering in the minds of target buyers as delivering some central benefits
OFFERINGS AND BRANDS
An offering is a combination of products, services, information and experiences
A brand is an offering from a known source
Example: offering – bottled water; Brand – Bisleri, Aquafina
VALUE AND SATISFACTION
Value – the perceived tangible and intangible benefits and costs to the customers.
Satisfaction – comparative judgment resulting from a product’s perceived performance and customer’s expectations
MARKETING CHANNELS
Communication Channels – Print Media (newspapers, magazines, pamphlets), Electronic channel (TV, radio, internet, mobile), Personal (word of mouth)
Distribution Channels – distributors, wholesalers, agents, retailers
Service channels – banks, insurance companies, travel agents, etc.
SUPPLY CHAIN
It’s a longer channel stretching from the raw materials for product to final delivery of product to the customer. It consists of many components.
COMPETITION
It includes all actual and potential rival offerings and substitutes that a buyer might consider.
Example: Competitors for Coca Cola: Pepsi, Sprite, Maaza, Milk, Water, Tea, Iced Tea, Coffee, etc.
MARKETING ENVIRONMENT
Task Environment: Company, suppliers, distributors, dealers, retailers, target customers
Broad Environment: Political, Economical, Social, Technological, Legal environments.
MARKET PLANNING
Analyzing market opportunities
Selecting target markets
Designing marketing strategies
Developing marketing programs
Managing marketing effort
SHIFTS IN MARKETING MANAGEMENT
Market oriented organization
Customer based segmentation
Outsourcing
Suppliers & Distributors to Partners
Exploring new markets, Innovation
Emphasizing intangible assets
Integrated market communication
Online retail
Serving well defined target market
Customer Lifetime Value
Focus on building Customer Share
Being GLOCAL
Focus on Marketing Scorecard
Focus on Stakeholders
MARKETING MANAGEMENT TASKS
Develop market strategies and plans
Capture marketing insights
Connect with customers
Build strong brands
Shape market offerings
Deliver value
Communicate value
Create long-term growth
ankurr.bhatnagar@gmail.com
