Marketing management

Marketing Management
Swati Sisodia



Introduction to Marketing


What is Marketing ?
‘Marketing is the management
process that identifies,
anticipates and satisfies
customer requirements
profitably’


What is marketing?
‘The right product, in the right
place, at the right time, and at
the right price’


What is marketing ?
‘Marketing is the human
activity
directed
at
satisfying human needs and
wants through an exchange
process’

Management definition
It is the process of planning and
executing the conception, pricing,
promotion and distribution of ideas,
goods and services to create
exchanges that satisfy individual
and organizational goals.


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

Information
Ideas


Implications of Marketing
Who are our existing/potential customers?
What are their current/future needs?
How can we satisfy these needs/
Can we offer a product/service that the customer
would value?
• Can we communicate with our customers?
• Can we deliver a competitive product or service?
• Why should customers buy from us?
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CUSTOMER VALUE AND SATISFACTION


Customer Value & Customer Cost
Customer value

Customer cost

“Is the bundle
of benefits
customer

expect from a
given product
or service”

“Is the bundle
of costs
customers
expect to incur
in evaluating,
obtaining, and
using the
product or
service”

Total Customer Cost is the summation of:
-Monetary Cost
-Time Cost
-Energy Cost
-Psychic Cost


Customer Satisfaction
“Is a person’s feelings of pleasure or
disappointment resulting from comparing a
product’s perceived performance in relation
to his or her expectations”


Maximizing Customer Lifetime Value
• The key to retaining customers is relationship

marketing
• Losing profitable customers can dramatically
affect a firm’s profits. The cost of attracting a
new customer is estimated to be five times
the cost of keeping a current customer happy
• Cultivating Customer Relationships
• Customer Relationship Management (CRM)


CONSUMER BEHAVIOUR


Definitions, concepts and Interpretations
. Consumer behavior may be defined as:
.... . the decision process and physical activity individuals engage in when evaluating,
acquiring, using, or disposing of goods and services
Definitions of the consumer and the customer vary from context to context...
Consumption based understanding

- Consumers are the individuals engaged in the final
act of using the good
- Customers may be merely buying the good for the
consumer

Consumer

Customer
+
Consumer

Customer


Participants in buying process

Purchase process

Initiator

Influencer

The person who

The person who

identifies the

decides the process

product’s need

brand of purchase

Decider

One who decides

Buyer

User

The person who

The person who

physically procures

applies


The five dimensions of consumer behaviour

Psychology
Study of the behavior and
mental processes of
individuals

Sociology
Study of the collective behavior of
people in groups

Economics
Study of people's production,
exchange, and consumption of
goods and services

Social psychology
Study of how individuals
influence and are influenced by
groups

Anthropology. Study of
people in relation to their
culture


Developing Marketing Strategy
Where are we going and how will we get there?


Benefits of Strategy
Coordinate efforts
of entire company
Specify what
resources will go
where
Leads to superior
market position


Elements of product strategy
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Objective(s) for product
Strategic alternatives

Customer target(s)
Core strategy
Supporting marketing mix
Supporting functional program


Setting objectives
• Where do we want to go with the product?
– Growth
• Sales revenues
• Market share

– Profitability
• Cash flow
• Maximize stock value

– Quality
• Brand equity
• Satisfaction

– All the above


Elements of objectives
Clearly
quantified
Challenging
but doable
Specific
time frame

Market Segmentation,
Targeting, and Positioning


Definition….
• Segmentation is the process of classifying customers
into groups which share some common characteristic
• Targeting involves the process of evaluating each
segments attractiveness and selecting one or more
segments to enter
• Positioning is arranging for a product to occupy a clear,
distinctive and desirable place relative to competing
products in the mind of the consumer


Advantages of segmentation as a process . . .
•The closer matching of a company’s products and capabilities with customers
needs and more specifically, directing resources to the most potentially profitable
segments

• A greater understanding of how to most effectively communicate with
customers in the market, including quantifying the responses of segments
already established
• An insight into the first signs of behavioural changes of consumers,
allowing for such things as product repositioning
• The identification of new product/service opportunities from segments that
have not been previously exploited , although marketing research oriented toward
this area has been limited

• Improving strategy by not competing head on with larger organisations with
superior resources
Dr.Deshpande : Market segmentation

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Steps in Market Segmentation, Targeting & Positioning
Market
Segmentation

1. Identify
segmentation
variables and
segment the
market.
2. Develop
profiles of
resulting
segments

Market
Targeting

3. Evaluate
attractiveness
of each segment
4. Select the
target
segment(s)

Dr.Deshpande : Market segmentation

Market
Positioning

5. Identify
possible positioning
concepts for each
target segment
6. Select,
develop,
and communicate
the chosen
positioning
concept

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