C A I I B

1. General Bank Management Marketing Management for Bankers MODULE D C A I I B

2. What is Marketing…?? • Selling? • Advertising? • Promotions? • Making products available in stores? • Maintaining inventories? • All of the above, plus much more!

3. Marketing = ? • Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, services to create exchanges that satisfy individual and organizational goals • American Marketing Association

4. Marketing = ? • Marketingmanagement is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value.

5. Communication Industry (a collection of sellers) Market (a collection of Buyers) Simple Marketing System Goods/services Money Information

6. Marketing = ? • Marketing is the sum of all activities that take you to a sales outlet. After that sales takes over. • Marketing is all about creating a pull, sales is all about push. • Marketing is all about managing the four P’s – • product • price • place • promotion

7. Place Product Price Promotion The 4 Ps & 4Cs Marketing Mix Convenience Customer Solution Customer Cost Communication

8. Difference Between - Sales & Marketing ? • Salestryingto get the customer to want what thecompanyproduces • Marketingtrying toget the company produce what thecustomerwants

9. Scope – What do we market • Goods • Services • Events • Experiences • Personalities • Place • Organizations • Properties • Information • Ideas and concepts

10. Core Concepts of Marketing • Based on : • Needs, Wants, Desires / demand • Products, Utility, Value & Satisfaction • Exchange, Transactions & Relationships • Markets, Marketing & Marketers.

11. Marketing & Marketers Markets Needs, wants demands Utility, Value & Satisfaction Products Xchange, Transaction Relationships Core Concepts of Marketing

12. Core Concepts of Marketing • Need – food ( is a must ) • Want – Pizza, Burger, French fry's ( translation of a need as per our experience ) • Demand – Burger ( translation of a want as per our willingness and ability to buy ) • Desire – Have a Burger in a five star hotel

13. Customers Company Competition In order to understand Marketing let us begin with the Marketing Triangle

14. Who is a Customer ?? CUSTOMER IS . . . . . Anyone who is in the market looking at a product / service for attention, acquisition, use or consumption thatsatisfiesa want or a need

15. Customer – • CUSTOMER has needs, wants, demands and desires • Understanding these needs is starting point of the entire marketing • These needs, wants …… arise within a framework or an ecosystem • Understanding both the needs and the ecosystem is the starting point of a long term relationship

16. How Do Consumers Choose Among Products & Services? • Value - the value or benefits the customers gain from using the product versus the cost of obtaining the product. • Satisfaction - Based on a comparison of performance and expectations. • Performance > Expectations => Satisfaction • Performance < Expectations => Dissatisfaction

17. Customers - Problem Solution • As a priority , we must bring to our customers “WHAT THEY NEED” • We must be in a position to UNDERSTANDtheir problems • Or in a new situation to give them a chance to AVOID the problems

18. Customer looks for Value • Value = Benefit / Cost • Benefit = Functional Benefit + Emotional Benefit • Cost = Monetary Cost + Time Cost + Energy Cost + Psychic Cost

19. Strategic Marketing Strategic marketing management is concerned with how we will create value for the customer Asks two main questions • What is the organization’s main activity at a particular time? – Customer Value • What are its primary goals and how will these be achieved? – how will this value be delivered

20. Strategic Planning is the managerial process of creating and maintaining a fit between the organization’s objectives and resources and the evolving market opportunities. Also called Strategic Management Process All organizations have this Can be Formal or Informal Strategic Planning

21. The Strategic-Planning, Implementation, and Control Process

22. Business Strategic-Planning Process External environment (Opportunity & Threat analysis) Goal Formulation BusinessMission Internal Environment (Strength/ Weakness analysis)

23. Strategy Formulation Environmental Analysis Internal Analysis Competitor Customer Supplier Regulatory Social/ Political Technology Know-How Manufacturing Know-How Marketing Know-How Distribution Know-How Logistics Opportunities & Threats Strength & Weaknesses Identify opportunity Identity Core Competencies Fit internal Competencies with external opportunities Firm Strategies

24. The Marketing Plan • A written document that acts as a guidebook of marketing activities for the marketing manager

25. CONTENTS of MARKETING PLAN • Business Mission Statement • Objectives • Situation Analysis (SWOT) • Marketing Strategy • Target Market Strategy • Marketing Mix • Positioning • Product • Promotion • Price • Place – Distribution • People • Process • Implementation, Evaluation and Control

26. Business Mission Statement Objectives Situation or SWOT Analysis Implementation Evaluation, Control The Marketing Process Marketing Strategy Target Market Strategy Marketing Mix Place/Distribution Product Price Promotion

27. Marketing Environment

28. Why a product like radio declined and now once again emerging as an entertainment medium ?

29. What Were the Drivers of This Change ? • Technology ? • Government policy ? • Other media substitutes ?

30. Why Market Leaders Suffered ? • HMT vs. Titan • HLL vs. Nirma • Bajaj vs. Honda • Dot.com boom, then bust and now resurgence • Market leadership today cannot be taken for granted.New and more efficient companies are able to upstage leaders in a much shorter period.

31. Factors Influencing Company’s Marketing Strategy

32. External Environment is not controllable Social Change Ever-Changing Marketplace Demographics Economic Conditions Product Distribution Promotion Price Competition Target Market Political & Legal Factors Technology Environmental Scanning External Marketing Environment Physical / Natural

33. The macro-environment • is the assessment of the external forces that act upon the firm and its customers, that create threats & opportunities

34. P r o d u c t

35. Product is . . . . . Anything that is offered to the market for attention, acquisition, use or consumption that satisfies a want or a need

36. PRODUCTS Consumer Products Services Industrial Products Types of Products

37. Product Item A specific version of a product that can be designated as a distinct offering among an organization’s products. Product Line A group of closely-related product items. Product Mix All products that an organization sells. Product Items, Lines, and Mixes

38. Product Mix • Width – how many product lines a company has • Length – how many products are there in a product line • Depth – how many variants of each product exist within a product line • Consistency – how closely related the product lines are in end use

39. Width of the product mix Blades and Writing razors Toiletries instruments Lighters Fusion – 5 blade Mach 3 Turbo Mach 3 Series Paper Mate Cricket Sensor Adorn Flair S.T. Dupont Trac II Toni S.T. Dupont Atra Right Guard Swivel Silkience Double-Edge Soft and Dri Lady Gillette Foamy Super Speed Dry Look Twin Injector Dry Idea Techmatic Brush Plus Depth of the product lines Gillette’s Product Lines & Mix

40. What is a Service? Defining the Essence • An act or performance offered by one party to another (performances are intangible, but may involve use of physical products) • An economic activity that does not result in ownership • A process that creates benefits by facilitating a desired change in customers themselves, or their physical possessions, or intangible assets

41. Banking, stock broking Lodging Restaurants, bars, catering Insurance News and entertainment Transportation (freight and passenger) Health care Education Wholesaling and retailing Laundries, dry-cleaning Repair and maintenance Professional (e.g., law, architecture, consulting) Some Industries - Service Sector

42. Classification of Services Pure Intangible Service Banking Good Transportation Major Service with Minor Product Business Hotels Product = Service Computers Major Product with Minor Services Materials / Components Pure Tangible Product

43. Major Characteristic of Services • Intangibility– Services are intangibility cannot be seen, tasted, felt, heard or smelled before purchase. • Inseparability - Services are produced and consumed simultaneously. • Variability or Heterogeneity – Services are highly variable • Perishability – Services cannot be stored. • Non Ownership - Services are rendered but there is no transfer of title

44. The Marketing Mix • The conventional view of the marketing mix consisted of four components (4 Ps): Product, Price, Place/ distribution and Promotion. • Generally acknowledged that this is too narrow today; now includes ,Processes, Productivity [technology ]People [employees], Physical evidence • Marketers today are focused on virtually all aspects of the firm’s operations that have the potential to affect the relationship with customers.

45. The “8Ps” of Integrated Service Management vs. the Traditional “4Ps” • Product elements • Place, cyberspace, and time • Process • Productivity and quality • People • Promotion and education • Physical evidence • Price and other user outlays

46. The Give and Get of Marketing

47. Great Words on Marketing • “The purpose of a company is ‘to create a customer…The only profit center is the customer.’” • “A business has two—and only two—basic functions: marketing and innovation. Marketing and innovation produce results: all the rest are costs.” • “The aim of marketing is to make selling unnecessary.” • “While great devices are invented in the Laboratory, great products are invented in the Marketing department.” • “Marketing is too important to be left to the marketing department.”

48. Drivers of Customer Satisfaction • Many aspects of the firm’s value proposition contribute to customer satisfaction: • The core product or service offered • Support services and systems • The technical performance of the firm • Interaction with the firm and it employees • The emotional connection with customers • Ability to add value and to differentiate as a firm focuses more on the top levels

49. Marketers and Markets • Marketers are focused on stimulating exchanges with customers who make up markets – B2C or B2B. • The market is comprised of people who play a series of roles: decision makers, consumers, purchasers, and influencers. • It is absolutely essential that marketers have a detailed understanding of consumers, their needs and wants. • Much happens before and after the sale to affect customer satisfaction

50. Stages of Customer Interaction