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.
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
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
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.
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.
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
production concept product concept selling concept marketing concept orientation customer orientation competitor
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.
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
communication mix
distribution channel
target customer
y Project???????????have to find???
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
find??
find???
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
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
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.
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.
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
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
Therefore, separate marketing mixes should be used for different market segments.
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
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
age groups
groups according to characteristics such as sex, age, income, occupation, education, household size, and stage in the family life cycle
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
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
15-40
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?????