TOPICS TO BE COVERED

y Define marketing with 5 examples. y Define selling with 5 examples. y Difference b/t marketing and selling. y Cash cow. y Fast moving consumer goods. y Industrial marketing. y Corporate selling. y Careers in marketing. y Know your customer- taste and preference . y Cannibalizing.

MEANING OF MARKETING KOTLER

From a managerial point of view marketing is a process of planning and executing the conception of pricing and promotion and distribution of ideas and goods and services to create exchanges that satisfy individual and organization goals

y Marketing is the sum of all activities that take you to

a sales outlet. After that sales takes over.

Sales
trying to get the customer to want what the company produces

Marketing
trying to get the company produce what the customer wants

Examples of selling
y A Life Insurance company suggesting its customer to

sign up for a Car/Health insurance. y An Wholesale mobile retailer suggesting a customer to choose a network/carrier after one purchases a mobile. y A television brand suggesting its customers to go for a Home Theater of its own brand or another

y Selling is one activity of the entire marketing process. y Selling is the act of persuading or influencing a

customer to buy (actually exchange something of value for) a product or service.

difference
y 1.Sales target on individuals or small groups. Marketing on the other hand targets a larger group o the general public. y 2.Marketing means generating leads or prospects. sales means converting the leads or prospects into purchases and orders. y 3.Marketing involves a longer process of building a name for a brand and pursuing the customer to buy it even if they do not need it. Where as sales only involve a short term of finding the target consumer.

y Sales = Push

Marketing = Pull Sales - Push the product - end of the day numbers matter Marketing - Pull the customers towards the products / increase the reach and awareness of the product. (Performance and effort too matters) Marketing has sales as a small part in it.

review
y Examples of maruti and alto y End results y Successful market y Aristocrat context---know yr customer and your

product y Electric car rewa marketing strategy. y Cash cow alto.

27 th july
y Marketing is identifying the customer need and max. y y y y y

the customer satisfaction and being profitable in the long run. C needs c satisfaction The process is very long. Eg. Telecom sector huge churn of customer. Achieving satisfaction is very difficult. One s need become luxury of other.

y Needs, want ,desire, and then demand. These are the y y y y y y

certain similar terms. What is demand? Willingness to buy a specific quantity at a specific price at a particular point of time. Differentiate b/t similar terms. Need-communicate Want-how to communicate Desire perfect or best part to communicate.

y Need basic y Want y y y y y y y

something more Desire luxury. second Creating the need. Selling the dreams is marketing. first Identify the need. Market people identify the need. Eg krack cream by pharma Eg- Nirma , Tata ace, mc donalds happy meal, nano etc

y y y y y y y y y y y y y y

Grasim-tissue paper. Selling tissue wipes?? Hospitals Educational institute. Resorts Beauty parlors Shopping malls---food junction Sports complex Hotels Restaurant/club General store-chemist Saloons. Marriage parties. Media houses.

y Railways y Garments y Airlines y Health department of government. y Construction sites. y Testing lab rotary y Coffee shops/pubs y Pan stores

Tactics day to day handling of marketing. Mm is art and science of choosing target markets, and getting , keeping and growing customers through creating, delivering and communications superior customer value. Value-benefit/cost, for customer its price. Examples-: Washing machine manually in Punjab. Washing machine automatic-in Mumbai Pure it. Phenomenal affordability is also value creation.

Purpose of marketing
y People don t buy physical products they buy bundle of y y y y y y y y

satisfaction theodore levitt Eg: kingfishers airlines. Eg: garners fairness cream. Eg: anti wrinkle products Eg: soaps like dove. Eg: enamel , Revlon nail polish Selling beauty, confidence, hope, solution. Cosmetic surgery above 40 yrs and above. Re-construction

25 th aug-scope of marketing
y Physical goods, services, , experience, events, persons, places, properties, organizations, information, ideas y nature, tangibility, consistency, why??? y Challenge in services y Mood , mindset of customer. y For product the challenge is 4p y For service the challenge is receiver, sender, awareness, infrastructure, mindset, pace, physical evidence. y Aura created while we walk in for service y Quality is eessential

y Product is best product but it has a better mouse trap fallacy. y Mouse trap will die if it is avaliable at cheap y This is the product concept y Selling concept

resort to aggressive selling, y Who is yr customer what he needs,. y Company orientations

y y y y y y

production concept product concept selling concept marketing concept orientation customer orientation competitor

y Six sigma?? y Care or don t care for customer? y Example y y y y y y

government care or not care?? Customer defection rate is high in telecom sector Competitor orientation---:customer is a light house. He is king He is sovereign. Take customer into consideration. Purpose is not one time Sustain existing customers Sustain loyal customer.

Customer relationship management

y Building relationship with customer y Customer feedback y Expectations y Updating the customers y Giving offers y Giving the quality

Transaction marketing
y No feedback y No initiative y One time selling

Marketing orientation
y What business we are? y

y y y y y y y y y y

if we don t able to define vision then we become very narrow, and this is known as marketing myopia. Integrated marketing the philosophy where from top to bottom yu have same thinking. All should speak one language . What sales dept facing?? Logistic dept?? Marketing mix combination of 4 p s or 7 p Relationship marketing-Societal marketing-corporate social responsibility What kind of sales yu are?? Acquiring new v/s new customer---under relationship management Cutomer life time value----have to find?????????? Product ,price, promotion, place Under product variety, quality, design, features, brand name, packaging, sixe, service, warrantees Under price list price, discount price, allowance, payment method, credit terms

Marketing mix strategy

y Offering mix

communication mix

distribution channel

target customer

y Project???????????have to find???

y Value, satisfaction and quality--y How would yu calculate consumer value in

consuming cocola y Joining a healthy club y Buying a lottery ticket y Enjoying a maassage at spa
y

y Thinking abt yr experience where yu feel

y

satisfied or dissatisied???

Criteria orientation, approach, direction, emphasis, business defination, time frame selling
y Production capability y Selling y Push y Aggressive y In terms of product y Short run y Selling is heart of marketing

marketing
y Market acceptability y Need identification y Pull y Creative a niche y In terms of company operates y medium

Targeting , positioning, segmentation

y Next topic y Need , want ,demand---find?? y Product and service y Difference-find??? y Can product be converted into service and vice versa

find??

find???

Core marketing concept

y Needs , wants, demands y Target market, positioning, segmentation y Offering and brand y Products and services y Value , satisfaction, (quality service and pride traid) y Marketing channels y Supply chain] y Competition

at various levels

y Marketing environment very dynamic internal and external y Marketing planning---remind??????????

Customer life time value

y CLV is generally defined as the present value of all

future profits obtained from a customer over his or her life of relationship with a firm. y Companies can look at their investments in terms of cost per sale, rate of customer retention, and also conversion of prospects. y The inherent danger of over focusing on customer lifetime value is that companies will invest in programs which try to wring profits from only the most active, heaviest spending customers

Target market
y Market: people or institutions with sufficient

purchasing power, authority, and willingness to buy y Target market: specific segment of consumers most likely to purchase a particular product y Types of Markets

y Consumer products: goods or services purchased by

an ultimate consumer for personal use y Business products: goods or services purchased for use either directly or indirectly in the production of other goods and services for resale y The key to classification is to identify the purchaser and the reasons for buying the goods.

Target market
y A target market is a group of customers that the

business has decided to aim its marketing efforts and ultimately its merchandise. y A well-defined target market is the first element to a marketing strategy. y The target market and the marketing mix variables of product, place(distribution), promotion and price are the four elements of a marketing mix strategy that determine the success of a product in the marketplace.

y Target Marketing involves breaking a market into

segments and then concentrating your marketing efforts on one or a few key segments. y Target marketing can be the key to a small business s success. y The beauty of target marketing is that it makes the promotion, pricing and distribution of your products and/or services easier and more cost-effective y Example--So if, for instance, I open a catering business offering catering services in the client s home, instead of advertising with a newspaper insert that goes out to everyone, I could target my market with a direct mail campaign that went only to particular residents.

Strategies for Reaching Target Markets

y Undifferentiated Marketing: when a firm produces

only one product or product line and promotes it to all customers with a single marketing mix
y Differentiated Marketing: when a firm produces

numerous products and promotes them with a different marketing mix designed to satisfy smaller segments

Strategies for Reaching Target Markets

y Concentrated Marketing (niche marketing): when

a firm commits all of its marketing resources to serve a single market segment
y Micromarketing: involves targeting potential

customers at a very basic level, such as by ZIP code, specific occupation, lifestyle, or individual household

The Role of Market Segmentation

y Market Segmentation

Division of the total market into smaller, relatively homogeneous groups

y No single marketing mix can satisfy everyone.

Therefore, separate marketing mixes should be used for different market segments.

Criteria for Effective Segmentation

y Market segmentation cannot be used in all cases. To

be effective, segmentation must meet the following basic requirements.

both purchasing power and size. y Marketers must be able to effectively promote to and serve a market segment. y Market segments must be sufficiently large to be potentially profitable. y The number of segments must match the firm s capabilities.

y The market segments must be measurable in terms of

Market Segmentation
Bases for Segmenting Consumer Markets
Geographic
Nations, states, regions or cities

Demographic
Age, gender, family size and life cycle, or income

Psychographic
Social class, lifestyle, or personality

Behavioral
Occasions, benefits, uses, or responses

Segmenting Consumer Markets

y Geographic Segmentation: Dividing an overall

market into homogeneous groups on the basis of their locations

y Does not ensure that all consumers in a location will

make the same buying decision. y Help in identifying some general patterns.

y Segmenting by Gender y Marketers must ensure that traditional assumptions are not false
y Recently, the lines have increasingly blurred y Some companies market successfully to both genders

Segmenting Consumer Markets

y Segmenting by Age y Identify market segments on the basis of age
y Products designed to meet the specific needs of certain

age groups

y Demographic Segmentation: dividing consumer

groups according to characteristics such as sex, age, income, occupation, education, household size, and stage in the family life cycle

y A primary source for demographic data in the United

States is the Census Bureau

Segmenting Consumer Markets

 Segmenting by Household Type  Today s U.S. households are very diverse
  

Married couples and their children Blended by divorce or loss of spouse Headed by single parent, same-sex parents, grandparents

y Psychographic Segmentation y Divides a population into groups that have similar psychological characteristics, values, and lifestyles y Lifestyle: people s decisions about how to live their daily lives, including family, job, social, and consumer activities y The most common method for developing psychographic profiles of a population is to conduct a large-scale survey
y y

Attitude Interest Opinion statements Value Attitude Life Style and VALS 2

Segmenting Consumer Markets

y Using Psychographic Segmentation y Psychographic profiles produce rich descriptions of potential target markets y Greater detail aids in matching a company s image and its offerings with the types of consumers who are likely purchasers y Product-Related Segmentation Product-

Dividing a consumer population into homogeneous groups based on characteristics of their relationships to the product
y Can take the form of segmenting based on: y Benefits that people seek when they buy y Usage rates for a product y Consumers brand loyalty toward a product

POSITIONING
y Positioning: a marketing strategy that emphasizes

serving a specific market segment by achieving a certain position in buyers minds

y y y y y y

Attributes Price/quality Competitors Application Product user Product class

Develop Product Positioning

y Positioning the product relative to competing products

in the minds of consumers

y By attribute y By use or application y By product user y By product class y By competitors

15-40

Develop Product Positioning cont.

y Positioning maps

15-41

30 th aug 2011
y 1 Effectiveness+ y 2 efficient=== y It is very important to be efficient . y Doing thing right =effectiveness y doing right thing=efficient y If we are not doing what we are supposed to do, then we

are not efficient. y Why segmentation??? slide no 7-3 y Why internet banking is not taking up??

y Branding>>>>>>>have to find?????