Marketing

1. A Philosophy An Attitude A Perspective A Management Orientation Marketing A Set of Activities plus

2. The Purpose of Marketing • To understand the Needs & Wants of Customers • To create customer value through satisfaction and loyalty • To operate more effectively and efficiently than competitors • To increase the value of the organization

3. Core Marketing Concepts Products, Services, Experiences Needs, wants, and demands Core Marketing Concepts Markets Value and satisfaction Exchange, transactions, and relationships

4. Marketing Management Process • Stage 1: Identifying marketing opportunities or problems. • Understand major environmental forces that create both opportunities and threats. • Stage 2: Market Segmentation, targeting, and positioning. • : Identify the most promising segment (s) and consider how to satisfy the customers that have homogeneous needs within each segment. • Stage 3: Understanding the customers. • Design a new product by understanding potential customers’ needs and purchasing patterns. • Stage 4: Developing a marketing mix. • Design a competitive marketing strategy by blending product, price, promotion, and place strategies. • Stage 5: Managing the marketing efforts. • Measure and evaluate the performances of current marketing strategy.

5. Marketing Product variety Societal Mktg Selling Production Evolution of Business Models and the role of Marketing As business philosophy has evolved, so has the role of marketing…customer satisfaction is now at the core

6. Product Orientation vs. Market Orientation

7. The Marketing Concept itself has evolved from.. 1) Catering to the customer 2) Anticipating the customer 3) Fulfilling the customer

9. Old vs New marketingChallenges for Marketing in 21st century Speed ?….Outrun….?

11. Some New-Age Marketing Trends • Relationship Marketing • Database Marketing • Network Marketing • Permission or Interruption marketing • Viral Marketing • Ambush Marketing

12. Technology Relationships Ethics Diverse Demands So…Marketing is managing.. Connecting with Customers Global Alliances

13. Fundamental Goals of Marketing • Goal 1: Attracting Customers: • Attract new customers by promising superior value and create transactions with them. • known as the leaky bucket approach. • Goal 2: Retaining and Growing Customers: • Satisfied customers are more likely to be loyal customers, and loyal customers are more likely to give the company a larger share of their business in the long run. • Retention strategy: Retain current customers for maintaining profitable long-term relationships with them by delivering superior value and customer satisfaction. Has this changed ? ??

14. What is marketing all about?

16. Stakeholder Management- beyond marketing

17. What is sustainability?

18. Why is it important to achieve both satisfaction and loyalty?

19. Satisfaction is a person’s feelings of pleasure or disappointment resulting from comparing a product’s perceived performance (or outcome) in relation to his or her expectations.

20. Satisfaction: Feelings from experience Loyalty: Choice of brand over others Satisfaction & Loyalty Outcomes: • Sales to increase revenues • Less price sensitivity • Lower organization’s costs

21. Value and Satisfaction: • Customers choose a product that provides the maximum perceived value among many marketing offers. • Customer perceived value = total benefits – total costs. • Total benefits: product features, services, information, and experiential values. • Total costs: monetary, time, and psychological costs.

22. Image value Personnel value Total customer value Services value Product value Customer delivered value Monetary cost Time cost Total customer cost Energy cost Psychic cost Determinants of Customer Delivered Value

23. Traditional Organization Chart Top Management Middle Management Front-line people Customers

24. Customers Front-line people Middle management Customers Customers Top manage- ment Customer-Oriented Organization Chart

25. Prospects First-time customers Repeat customers Clients Advocates Partners Disqualified prospects Inactive or ex-customers Customer Development Suspects

26. Marketing Strategy

27. Firm infrastructure Human resource management Support Activities Margin Technology Development Procurement Opera- tions Inbound Logistics Out- bound Logistics Market- ing and sales Margin Serv- ice Primary Activities The Generic Value Chain

28. Objectives Resources Profit and Growth Skills Opportunities Market-Oriented Strategic Planning

29. Existing products New products 1. Market penetration 3. Product development Existing markets 2. Market development New markets Growth Strategies: Ansoff’s Product/Market Expansion Grid 4. Diversification

30. Marketing Environment What is ? How to analyze? For what?

31. Actors in the Microenvironment

32. The Company’s Macroenvironment

33. Economic Factors • Inflation • Employment • Disposable income • Business cycles • Energy availability and cost • Others?

34. Technological Factors • New discoveries and innovations • Speed of technology transfer • Rates of obsolescence • Internet; Mobile ; Cloud and Information processing technology • Platforms and Portability • Copy/Clone

35. Political/legal Factors • Monopolies legislation • Environmental protection laws • Taxation policy • Employment laws • Government policy • Legislation • Others?

36. Political Environment Includes Laws, Government Agencies, and Pressure Groups that Influence or Limit Various Organizations and Individuals In a Given Society. Increasing Legislation Changing Government Agency Enforcement Increased Emphasis on Ethics & Socially Responsible Actions Cause-Related Marketing

37. Sociocultural factors • Demographics • Distribution of income • Social mobility • Lifestyle changes • Consumerism • Levels of education

38. Core beliefs are persistent Passed from parents to children; reinforced by society Shape attitudes and behavior Secondary cultural values change and shift more easily Society’s cultural values are expressed through people’s views of: Themselves Others Organizations Society Nature The Universe The Cultural Environmentinstitutions and other forces that affect a society’s basic values, perceptions, preferences, and behaviors.

39. The Marketing Environment and Competitor Analysis • Five forces analysis • SWOT analysis

40. Porter’s Five forces analysis Potential entrants Threat of entrants Suppliers COMPETITIVE RIVALRY Buyers Bargaining power Bargaining power Threat of substitutes Substitutes

41. Five Forces Analysis: Key Questions and Implications • What are the key forces at work in the competitive environment? • Are there underlying forces driving competitive forces? • Will competitive forces change? • What are the strengths and weaknesses of competitors in relation to the competitive forces? • Can competitive strategy influence competitive forces (eg by building barriers to entry or reducing competitive rivalry)?

42. Responding to the Marketing Environment • Reactive:Passive Acceptance and Adaptation; Avoidance • Proactive:Environmental Management and New Product Development

43. Customers C1 C2 C3 Products P1 + + + Highly profitable product P2 + Profitable product P3 - - Losing product P4 + - Mixed-bag product High profit customer Mixed-bag customer Losing customer Customer/Product Profitability Analysis

44. Consumer Behaviour An Introduction

45. What is Consumer Behaviour? Those activities directly involved in obtaining , consuming and disposing of products and services, including the decision processes that precede and follow these actions

46. Consumer Characteristics… Take-Away • CB is influenced by consumer characteristics • Individual chars (Personality, Lifestyle) • Environment (Reference Groups, Culture) • Important to take these variables into account in your marketing plan • introvert/extrovert: • Also important to keep track of trends… • E.g., lifestyle trends (McDonald’s) • Culture: Important because of global marketing • Localization vs. Standardization?? • Flexible Globalization is often the solution (McDonald’s)

47. Perspectives of CB Logical Positivism • Understanding and predicting consumer behaviour • Cause and effect relationships that govern persuasion and/or education Post Modern – to understand consumption behaviour without any attempt to influence it

48. 7 O FRAMEWORK eg purchase of soap

49. Firm’s Marketing Efforts 1. Product 2. Promotion 3. Price 4. Channels of distribution Sociocultural Environment 1. Family 2. Informal sources 3. Other noncommercial sources 4. Social class 5. Subculture and culture Input External Influence Need Recognition Prepurchase Search Evaluation of Alternatives Psychological Field 1. Motivation 2. Perception 3. Learning 4. Personality 5. Attitudes Process Consumer Decision Making Experience A Model of Consumer Decision Making Purchase 1. Trial 2. Repeat purchase Post-Decision Behavior Output Post purchase Evaluation

50. Types of decisions Routinized response (e.g., gas, sodas) Limited problem solving (e.g., car service, fast food) Extended problem solving (e.g., new car, computer, medical procedures) Type of evaluation: Compensatory: Decision based on overall value of alternatives (good attribute can outweigh bad ones) Non-compensatory: Absolutely must meet at least one important criterion (e.g., car must have automatic transmission) Decision Issues