What is Marketing? Marketing is a societal process by which individuals and groups obtain what they need and wants through creating, offering, and freely exchanging products and services of value with others.
Marketing Management
Marketing Management is a process of planning, executing the conception, Pricing, promotion and distribution of ideas, goods, and services to create exchangers that satisfy individual and organizational goals.
Therefore marketing process consist of following steps
Analysis of marketing opportunities
Researching and Selecting Target Markets
Designing marketing strategy
Planning marketing programmers
Organizing, implementing and controlling the marketing efforts.
Major function of marketing management
Analysis
Planning
Implementation
Controlling
Importance Of marketing management as subject
To make direct influence to increase demand for organizational product
To increase new customers and retain existing customers
To develop the network among important parties
Marketing System
The interrelation between sellers and buyers is known as marketing system. The simple marketing system consists of sellers and buyers direct interactions.
The New Economy
Marketing operates at dynamic global environment and it is facing number of environmental changes. With the introduction of new technological innovations, marketers and customers have specific benefits/ capabilities.
■ Consumer benefits from the digital revolution include:
Increased buying power.
Greater variety of goods and services.Increased information.
Enhanced shopping convenience.
Greater opportunities to compare product information with others.
■ Firm benefits from the digital revolution include:
New promotional medium.
Access to richer research data.
Enhanced employee and customer communication.
Ability to customize promotions.
■ Marketing practices may pass through three stages:
Entrepreneurial marketing Most of companies started with small marketing programme and try to get benefits of available marketing opportunities.
Formulated marketing Some companies spend considerable amount for advertising and use more sales people to increase marketing opportunities.
Entrepreneurial Marketing Large companies are getting advantages of systematic marketing tools and proving customer values to satisfy them. They start living with customers and obtain huge market opportunities.
How Business and Marketing are changing
Changing technology
Globalization
Deregulation
Privatization
Customer Empowerment
Customization
Heightened competition
Industry convergence
Retail transformation
Disintermediation
Current Treads of Marketing Environment
High competition
Globalization
Developing knowledge based consumers
Technological revolution
Increasing the responsibility to natural environment
Increasing the rules and regulations of businesses.
New Treads of Marketing
Social Responsible marketing
Collaborative marketing
Radical marketing
Holistic Marketing
One to one marketing (Customization)
Mass customized on
New Types of Marketing Practices
There are several versions of marketing available in the modern environment
1. Radical marketing
The radical marketing is set of activities that focus on succeeding company by breaking all the rules in marketing. Instead of commissioning expensive marketing research, spending huge sums on mass advertising, operating large marketing department, those companies stretched their limited resources, stayed in close contact with their customers, and created more satisfying solutions to customer needs. Generally used customer clubs, creative PR and delivering high product quality to winning long term customer loyalty.
Ten rules of radical marketing
CEO must own the marketing function
Make sure the marketing d& pi starts small and flat and stays small and flat.
Get face to face with customer
Use marketing research cautiously
Hire only passionate missionaries
Love and respect your customers.
Create a community of customers
Rethink the marketing mix
Celebrate common sense.
Be true to the brand
2, Cause-related marketing
Cause-related marketing define as activity by which a company with an image, product or service to market builds a relationship or partnership with a course or number of courses for mutual benefits.
Marketing Management
Marketing Management is a process of planning, executing the conception, Pricing, promotion and distribution of ideas, goods, and services to create exchangers that satisfy individual and organizational goals.
Therefore marketing process consist of following steps
Analysis of marketing opportunities
Researching and Selecting Target Markets
Designing marketing strategy
Planning marketing programmers
Organizing, implementing and controlling the marketing efforts.
Major function of marketing management
Analysis
Planning
Implementation
Controlling
Importance Of marketing management as subject
To make direct influence to increase demand for organizational product
To increase new customers and retain existing customers
To develop the network among important parties
Marketing System
The interrelation between sellers and buyers is known as marketing system. The simple marketing system consists of sellers and buyers direct interactions.
The New Economy
Marketing operates at dynamic global environment and it is facing number of environmental changes. With the introduction of new technological innovations, marketers and customers have specific benefits/ capabilities.
■ Consumer benefits from the digital revolution include:
Increased buying power.
Greater variety of goods and services.Increased information.
Enhanced shopping convenience.
Greater opportunities to compare product information with others.
■ Firm benefits from the digital revolution include:
New promotional medium.
Access to richer research data.
Enhanced employee and customer communication.
Ability to customize promotions.
■ Marketing practices may pass through three stages:
Entrepreneurial marketing Most of companies started with small marketing programme and try to get benefits of available marketing opportunities.
Formulated marketing Some companies spend considerable amount for advertising and use more sales people to increase marketing opportunities.
Entrepreneurial Marketing Large companies are getting advantages of systematic marketing tools and proving customer values to satisfy them. They start living with customers and obtain huge market opportunities.
How Business and Marketing are changing
Changing technology
Globalization
Deregulation
Privatization
Customer Empowerment
Customization
Heightened competition
Industry convergence
Retail transformation
Disintermediation
Current Treads of Marketing Environment
High competition
Globalization
Developing knowledge based consumers
Technological revolution
Increasing the responsibility to natural environment
Increasing the rules and regulations of businesses.
New Treads of Marketing
Social Responsible marketing
Collaborative marketing
Radical marketing
Holistic Marketing
One to one marketing (Customization)
Mass customized on
New Types of Marketing Practices
There are several versions of marketing available in the modern environment
1. Radical marketing
The radical marketing is set of activities that focus on succeeding company by breaking all the rules in marketing. Instead of commissioning expensive marketing research, spending huge sums on mass advertising, operating large marketing department, those companies stretched their limited resources, stayed in close contact with their customers, and created more satisfying solutions to customer needs. Generally used customer clubs, creative PR and delivering high product quality to winning long term customer loyalty.
Ten rules of radical marketing
CEO must own the marketing function
Make sure the marketing d& pi starts small and flat and stays small and flat.
Get face to face with customer
Use marketing research cautiously
Hire only passionate missionaries
Love and respect your customers.
Create a community of customers
Rethink the marketing mix
Celebrate common sense.
Be true to the brand
2, Cause-related marketing
Cause-related marketing define as activity by which a company with an image, product or service to market builds a relationship or partnership with a course or number of courses for mutual benefits.
Marketing, philosophies
Production concept
Product concept
Selling concept
Marketing concept
Customer concept
Societal marketing concept
Green marketing concept
Holistic Marketing Concept
Holistic Marketing Concept
Holistic Marketing concept This is the latest marketing philosophy. Holistic marketing concept is based on development, design and implementation of marketing programs, processes, and activities that recognizes their interdependencies. Therefore HMC focus on 04 components that are practiced by organizations in same time.
1. Internal Marketing
Internal Marketing is process of ensuring that everyone in the organization embraces appropriate marketing principles to satisfy customers. Employees of Mktg dept, senior mgt and other depts. should be satisfied using appropriate training and motivation programs.
2. Integrated Marketing
Creating and implementing effective marketing programs and values to satisfy external customers of organization.
3. Relationship Marketing
Relationship Marketing is process of building mutually satisfied long- term
Relationships with key parties such as customer, supplier, distributors and other
Marketing partners.
4. Social Responsibility Marketing
Social Responsibility Marketing means understanding broader concerns and the
Ethical, environmental, legal and social context of marketing activities and programs.
Customer Relationship. Marketing (CRM)
Customer Relationship Marketing (CRM) allows companies to:
Deliver real-time customer service
Customize market offerings, products, services, media, and messages
Effective Customer Relationship Marketing requires:
Reducing customer defection rates
Extending the life of the customer relationship
Enhancing customer sales / profit potential
Making low - profit customers MORE profitable or terminating them
Focusing on high value customers
CRM Leads to One-to-one Marketing
Four Steps for One-to-One Marketing
Don't go after everyone; carefully identify your prospects and customers.
Group customers by their needs and their value to the company; aggressively pursue the most valuable customers.
Build stronger relationships with customers via individual interaction.
Customize messages, services, and products for each customer.Customer Databases and Database Marketing are the key to Effective CRMDatabase uses include:
Best prospect identification
Matching offers to customers
Deepening customer loyalty
Reactivating customer purchasing
Avoiding serious mistakes
Building. Customer Satisfaction and value
Customer value is ratic Between customer benefits and costs. However,Construer Perceived value is difference between the prospective customer evaluation of all benefits and all costs. Therefore, Perception of delivered value is a function of:
Total customer costs
Total customer value
Customers seek to maximize value by,
Estimating which offer (product/firm) delivers the most value (CPV) forming an expectation of value and acting upon it (purchase) evaluating their usage experience against the expectations
Satisfaction is defined as...
"A person’s feelings of pleasure or disappointment resulting from comparing a product areperceived performance (or outcome) in relation to his or her expectations." Thereforesatisfaction results when expectations are equaled or surpassed.
Actual performance = Expectation - Customer satisfaction
Actual performance > Expectation - Customer delight
Actual performance <> Tools for Tracking and Measuring
Production concept
Product concept
Selling concept
Marketing concept
Customer concept
Societal marketing concept
Green marketing concept
Holistic Marketing Concept
Holistic Marketing Concept
Holistic Marketing concept This is the latest marketing philosophy. Holistic marketing concept is based on development, design and implementation of marketing programs, processes, and activities that recognizes their interdependencies. Therefore HMC focus on 04 components that are practiced by organizations in same time.
1. Internal Marketing
Internal Marketing is process of ensuring that everyone in the organization embraces appropriate marketing principles to satisfy customers. Employees of Mktg dept, senior mgt and other depts. should be satisfied using appropriate training and motivation programs.
2. Integrated Marketing
Creating and implementing effective marketing programs and values to satisfy external customers of organization.
3. Relationship Marketing
Relationship Marketing is process of building mutually satisfied long- term
Relationships with key parties such as customer, supplier, distributors and other
Marketing partners.
4. Social Responsibility Marketing
Social Responsibility Marketing means understanding broader concerns and the
Ethical, environmental, legal and social context of marketing activities and programs.
Customer Relationship. Marketing (CRM)
Customer Relationship Marketing (CRM) allows companies to:
Deliver real-time customer service
Customize market offerings, products, services, media, and messages
Effective Customer Relationship Marketing requires:
Reducing customer defection rates
Extending the life of the customer relationship
Enhancing customer sales / profit potential
Making low - profit customers MORE profitable or terminating them
Focusing on high value customers
CRM Leads to One-to-one Marketing
Four Steps for One-to-One Marketing
Don't go after everyone; carefully identify your prospects and customers.
Group customers by their needs and their value to the company; aggressively pursue the most valuable customers.
Build stronger relationships with customers via individual interaction.
Customize messages, services, and products for each customer.Customer Databases and Database Marketing are the key to Effective CRMDatabase uses include:
Best prospect identification
Matching offers to customers
Deepening customer loyalty
Reactivating customer purchasing
Avoiding serious mistakes
Building. Customer Satisfaction and value
Customer value is ratic Between customer benefits and costs. However,Construer Perceived value is difference between the prospective customer evaluation of all benefits and all costs. Therefore, Perception of delivered value is a function of:
Total customer costs
Total customer value
Customers seek to maximize value by,
Estimating which offer (product/firm) delivers the most value (CPV) forming an expectation of value and acting upon it (purchase) evaluating their usage experience against the expectations
Satisfaction is defined as...
"A person’s feelings of pleasure or disappointment resulting from comparing a product areperceived performance (or outcome) in relation to his or her expectations." Thereforesatisfaction results when expectations are equaled or surpassed.
Actual performance = Expectation - Customer satisfaction
Actual performance > Expectation - Customer delight
Actual performance <> Tools for Tracking and Measuring
Customer Satisfaction
Complaints and suggestion system
Customer satisfaction survey
Ghost shopping
Lost customer analysis
Marketers are using value chain model to deliver customer value to satisfy them. They achieve CLV.
Consumer Behaviour
When analysis the consumer behavior, following questions to be raised
Who constitute the market
What does customer buy
Why does customer buy
Who will participate in the buying process
How does customer buy
When does the customer buy
Where does customer buy
Types of marketing research
1. Exploratory research
The research that is focused on finding basic information to understand complex problems.
2. Descriptive research
The research that is designed to solve complex marketing problems, when it has
defined.
3. Causal research
Complaints and suggestion system
Customer satisfaction survey
Ghost shopping
Lost customer analysis
Marketers are using value chain model to deliver customer value to satisfy them. They achieve CLV.
Consumer Behaviour
When analysis the consumer behavior, following questions to be raised
Who constitute the market
What does customer buy
Why does customer buy
Who will participate in the buying process
How does customer buy
When does the customer buy
Where does customer buy
Types of marketing research
1. Exploratory research
The research that is focused on finding basic information to understand complex problems.
2. Descriptive research
The research that is designed to solve complex marketing problems, when it has
defined.
3. Causal research
The research that is designed to find the causes for particular problem.
There are difference between Marketing research and market research and sales research
Strategies Marketing Planning
Generally, strategic plans are prepared in corporate or business level of organizations. I However, most of modern organizations are developing separate strategic marketing plan to face new business challenges. In this process, marketers can analyze their orientation towards customers using following modal.
Strategic Marketing Planning Process
I. Identify market opportunities
2. Formulate marketing targets and strategies
Pricing strategy
Product strategy
Promotion strategy
Distribution strategy
3. Decide the appropriate marketing approach
Mass marketing
Product differentiated marketing
Target marketing
4. Design an attractive marketing mix
5. Decide marketing programs and procedures
6. Preparation of marketing budgets
7. Establish the marketing activity controlling measure
Promotional Objectives
Generally, organization develops following objectives
I. Awareness promotion
2. Reminder promotion
3. Persuasive: promotion
4. Competitive' promotion
5. Image building promotion.
There are difference between Marketing research and market research and sales research
Strategies Marketing Planning
Generally, strategic plans are prepared in corporate or business level of organizations. I However, most of modern organizations are developing separate strategic marketing plan to face new business challenges. In this process, marketers can analyze their orientation towards customers using following modal.
Strategic Marketing Planning Process
I. Identify market opportunities
2. Formulate marketing targets and strategies
Pricing strategy
Product strategy
Promotion strategy
Distribution strategy
3. Decide the appropriate marketing approach
Mass marketing
Product differentiated marketing
Target marketing
4. Design an attractive marketing mix
5. Decide marketing programs and procedures
6. Preparation of marketing budgets
7. Establish the marketing activity controlling measure
Promotional Objectives
Generally, organization develops following objectives
I. Awareness promotion
2. Reminder promotion
3. Persuasive: promotion
4. Competitive' promotion
5. Image building promotion.
