Marketing Management

Marketing Management
Marketing an Art or Science? Science Psychology, Sociology, Finance, Economics.. Art Communication, Influence, Persuasion. Science at lower levels & Art at higher levels Steve Jobs customer doesnt know what they want

Marketing Management
Why study Marketing Management? Business is marketing Systematic effort understand, creating products, communicating, distributing Transferability of knowledge Employment opportunity

Marketing Management
Why is marketing important? Basis for economics & Commerce

Marketing Management

Marketing Management
Definitions MARKETING IS A SOCIAL AND MANAGERIAL PROCESS.BY WHICH INDIVIDUALS AND GROUPS OBTAIN WHAT THEY NEED & WANT.. THROUGH CREATING & EXCHANGING PRODUCTS & VALUE WITH OTHERS. (in a mutually sustainable & perpetual manner) Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

Marketing Management
Components / Characteristics
Marketer/Manager Customer/Society Needs/Wants/demands Exchange Sustainability Perpetuity Continuous

Marketing Management
Marketing Department Marketing Research understand consumer
needs, segmentation & targeting development, differentiation, positioning & branding, pricing & execution

Product & Brand Management product Marketing Communication promotion mix

promotion

Sales and Distribution Distribution & sales Marketing administration

MARKETING PROCESSS
CREATEVALUEFORCUSTOMERS&BUILDCUSTOMERRELATIONSHIP

Understand the marketplace and customer needs and wants.

Design a customer driven Marketing strategy

Construct an integrated marketing program that delivers superior value

Build profitable relationship and create customer delight

CAPTUREVALUEFROMCUSTOMERSINRETURN

Capture value from customers to create profits and customer equity.

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1A 1B 1C 1D

MARKETING PROCESSS
You have to set up a footwear manufacturing & marketing business. Use the marketing process to demonstrate how you will go about setting up of the business

MARKETING PROCESSS
MR Customer Driving Marketing knowing customer needs before they know them our goal is to lead customers to where they want to go, before they know where they want to go 3M

MARKETING PROCESSS
MR
AreasofInquiry Whytheybuyfootwear/forwhatbenefits? AreasofInformation Useoffootwearlikeprotection, stylestatements,sports benefits,medicalbenefits.. Competitionandtheircharacterslike VFM,personality,aspiration AreasofApplication Segmentation,productdesign,promotion

Whichbrandaretheycurrentlybuyingand why?

Differentiationandpositioning,promotion

Wheredotheybuy? Whendotheybuy? Howdotheypay&howmuch? Whobuys? Whoadvicesorinfluences? Howmanydotheybuy? Whattypesoffootwear?

Typesofstore,outletetc Occasionofpurchase Cash,credits,typeofpayment, order. Customer/consumer Decisionmakingunit Potentialconsumptions Tastes,preferences,cultural influencesetc Gapsincurrentneedfulfillment

Distributiondecision Promotion,distributiondecision Pricing,AddonserviceslikePayment,ordering options Promotiondecisions Promotion Pricingandpromotions Productdesign,segmentation&promotion

whattheydontgetcurrently?

Product,promotion

MARKETING PROCESSS
Segmentation Geographic Demographic Behavioral (occasion, rate of use, benefit sought, user status) Psychographic (Vals lifestyle)

MARKETING PROCESSS
Targeting Mass marketing Segmented marketing Niche (concentrated) Micro (individual) Based on business strength, market size, market proximity, growth, profitability, competition

MARKETING PROCESSS
Differentiation & Positioning Eg: Disprin Eg: Aspergatas, Hawaaianas

MARKETING PROCESSS
Marketing Mix Product core/ actual/ augmented Price philosophies & strategies Promotion IMC Place Channels, Reach & management

MARKETING PROCESSS
IMC using of promotional tools to deliver consistent, clear & compelling brand message
Advertising SP PS / DS DM PR Events Digital/ Interactive/ Viral WoM / Buzz

Integrated marketing communication

.
OLEY
Ads: cosmopolitan, filmfare,national channels, English channels SP: in mall displays, premium fairs premium displays Events: fashion shows, ladies club meeting PR: environmental protection, womens right Interactive: web site WoM; endorsements by equal status respected advocates PS; In mall kiosks, beauty clinics DM: usually not used

SANTOOR
Ads: regional channels, multi media, multilingual SP: samplings, discounts, gifts and trade promotion to push sell product Events: local mass events like melas

PR: rural and other common community related causes Interactive: not used WoM; celebrity endorsements PS; not done due to large customer base DM: usually not used

MARKETING PROCESSS
Distribution: movement of goods from the manufacturer / seller towards the customers, with the intention of selling Distribution Channel : set of intermediaries through which goods pass from the seller to the buyer
Channel levels Multi channels distribution.

MARKETING PROCESSS
Customer Relation Based on customer perceived value & customer satisfaction Involves communication/ collaboration
Emotional connect HUL P/S Customisation Hotels, KFC Add on services Thai air, Mc Kessons Reward system Air line, Shoppers stop Community creation HOG, Sunsilk.com

MARKETING PROCESSS
Capturing Value Share of customer/ purse CLT Customer equity

Retailing

Retailing
RETAILING: All activities involved in selling G/S to final consumers for their personal business use. RETAILER: A business whose sales comes mainly from Retailing.

Retailing
Importance: final touch point Shopper Marketing, Last Decision Making Point 4.5 trillion $ largest employers

Retailing
RETAILER CLASSIFICATION: Product lines Relative prices Amount of service Organisation

Retailing - Product lines

Length & Breadth of product line Specialty stores: Bata Department Stores: large with each product line being a (Big Bazar) separate department with separate merchandiser. Super Markets: low cost/low margin, high volume, self-service, large store carrying grocery & household goods (Food Bazar)

Retailing - Product lines

Convenience store: neighborhood stores with popular goods Eg: kirana, Pan shops, Mom & Pop shops. Super Store: very large super markets Category Killers: super stores for one category Eg: E-zone Service Retailers

Retailing - Relative prices

Discount stores: sells std merchandise at lower prices & higher volumes Wal-Mart, big bazaar Off price retailers: sells at very low prices less than retail prices
Independent: run by corporations/independent units Eg: Park avenue Factory outlet: seen in factory outlet malls/value retrial centers Ware house Clubs: for members, sells a limited line Eg: Cotsco. Sams Club, Metro-Bangalore

Retailing - Amount of service

Self-Service: Wal-Mart, Big Bazar Limited Service: JC penny & sears, Shoppers Stop Full Service: Harrods, Tiffanys, Croma

Retailing - Organisation
Chain Stores: 2 or more outlets commonly controlled. Eg: Bata (also seen as wholesale sponsored/Retail sponsored chain) Franchise: A contractual organisation between Franchiser & Franchisee to operate one or more units of a franchisee system Eg: McD, NIIT, Aptech Merchandise Conglomerates: several forms under one roof- Walmart/ Future

Retailing

Retailing - Positioning
Walmart always low prices Harrods everything for everyone anywhere, royal warrant

Retailing - Decisions
Product
Line common or different Target product assortment. Lane Bryant/ + size Special promotion
Walmart everyday low prices Bloomingdales country shows Cotsco surprise assortment

Service
Consultations Trainings installation

Ambience

Retailing - Decisions
Pricing
Volume vs margin (Bijan/ T J Maxx)

Promotions Place decisions

Accessibility Parking Proximity Traffic Rentals Safety and security CBDs/ Regional- Community- Neighborhood shopping centers

Retailing - Decisions

Retailing new trends

Shortening of retail life cycle Price Club by Sol Price, 1976 San Diego New retail formats Non store retailing mail order/ TV/ Phone/ Online Retail convergence (merging of consumers, products, prices & consumers) Rise of megatailers Superior IS, Bargain power & Assortment Technology in retail Global expansion of retailers Retail space as hangouts/ communities

Retailing new trends

Retailing - India
14-15% of GDP-450 bio $- (261 bio) Top 5 in world 4% organised (2010) Employs- 40 mio or 3.3%^ of population along with logistics Las- 14 mio outlets-11 shops for 1000 people only less than 4% has more than 500sq ft 1994- FDI in cash & carry was allowed 2009- FDI in single brand 2012- FDI in multi brand retail (51%)

Retailing - India
Formats: Mom & Pop shops Departmental Stores Convenience Stores Shopping Malls e-Tailers Discount stores Vending AVMs Category Killers Specialty Stores

Wholesaling

Wholesaling
Includes all activities primarily involved in selling G/S to those buying for resale or business use Wholesaler is one whose major revenue is from wholesaling They might also do some kind of retailing

Wholesaling
Retailing
Sells for final consumption Smaller quantity Individual/ family buyer Do not wholesale Geographically spread Large numbers

Wholesaling
Sells for retailing or business consumption Larger quantity Business buyer May retail Geographically concentrated Small numbers

Wholesaling

Wholesaling
Types Merchant wholesalers
Full service Industrial goods Limited service - FMCG

Agents & brokers

Do not take title of the goods Specialises by product line or customer types Brokers bring together buyer & seller Agent represents the seller

Manufacturers sales & branch office