Marketing - Definition & Concepts

Description
basics on marketing.Very useful for students in first year looking for basic concepts of marketing.

MANAGING APPLICATION & PRACTICES
• • • • • • • • • • • • Marketing - Definitions & Concept B 2 B Marketing Marketing Plan Product Strategy F.M.C.G. Marketing Consumer Durable Marketing Services Marketing Retail Management Internet Marketing Direct Marketing Event & Media Marketing Branding & Packaging

MARKETING - DEFINITION & CONCEPTS
• “Marketing Starts & Ends with the Customer” • “Marketing is so basic that it can’t be considered a separate function … It is the whole business seen from the Customer’s Point of View…” …. Peter Drucker • “The purpose of Marketing is to make Selling Superfluous” …. Peter Drucker

MARKETING
• Customer never buys a Product or Service but a Problem Solution • The motif of Marketing In the market the important thing is not objectively the truth but only what the customer subjectively feels as true • MARKETING is Satisfy Existing Demands

Create New Demands
• “Marketing & Innovations Produce Results ; All The Rest Are Cost”

SALES & MARKETING
• What is the Difference between Sales & Marketing Sales : “Trying to get the Customers To Want what the Company Produces” Marketing : “Trying to get the Company To Produce what the Customer Wants”

SALES & MARKETING
• What is the Difference between Sales & Marketing Sales :
Production Selling Consumer

Marketing :
Consumer Need Evaluation Integrated Marketing Effort Consumer Satisfaction Achievement of Organisation Goals FEEDBACK

SALES & MARKETING
• How Marketing Evolves :
Production Era Sales Era Marketing Department Era Supply Equals Demand Supply Exceeds Demand Marketing Company Era Supply Exceeds Demand Integrated Comprehensive Role for Marketing

Demand Exceeds Supply

Output Expanded

Selling Process Important

Marketing a Subsidiary Function

THREE C’s OF MARKETING
• The Marketing Triangle :
Customer

Company

Competitor

• “Satisfying the needs of the CUSTOMER Better than the COMPETITION and profitable to the COMPANY”

MARKETING CONCEPT
• “It Means An Organisation Aims All It’s Efforts At Satisfying The Customers At Profit”

CUSTOMER SATISFACTION MARKETING CONCEPT

PROFIT – AS OBJECTIVE

TOTAL COMPANY EFFORTS
Marketing Application & Practices

INTEGRATED MARKETING
• Customer should always be the FOCUS
R&D Sales Finance
Customer

Pu r

ch as e

Marketing Pr od uc Human tio n Resources

D is t ri bu tio n

CUSTOMER ORIENTATION
• “One common factor among highly successful companies is CUSTOMER ORIENTED CULTURE” • In fact they almost seemed to SMELL CUSTOMER • Our goal is not only to satisfy customer but to delight them - Japanese Can Company • Our Goal as a company is to have a customer service not just the best but legendary - Wal Mart • “Customer Satisfaction is a Long Term Strategy” • Forget about Selling, People love to buy, but hate to be sold

CUSTOMER ORIENTATION
• Only two things people want to buy : “Good Feelings & Solution to Problem” • Why Customers Quit ? 65% quit because of an attitude of indifference towards the customer by company, managers, employees • Five best ways to keep customer coming back … – Be Reliable – Be Creditable – Be Attractive – Be Responsive – Be Emphatic

CUSTOMER ORIENTATION
• Customer Orientation - A Checklist
1. Letters from customers are answered before that of HO 2. Promises to customers are almost sacred for everyone in the company 3. Customer complaints are handled promptly with genuine concern rather than “LEGALISTICALLY” 4. Non-Marketing people (e.g. Design, Production etc.) visit customers periodically 5. Sales Staff feels proud of company & are treated with genuine respect in the company

CUSTOMER ORIENTATION
• Customer Orientation - A Checklist
6. Very high number of Repeat Buyers and each of them is proud to be associated with the company 7. Secretaries / Telephone Operator answer the call … “The boss is not in today, but may I help you ?” rather than “Please call back tomorrow.” 8. Telephone calls of Key Customers are readily & quickly put through to the right person 9. Customer visit reports are always read by Senior executives and acted upon promptly 10. Everyone in the department knows the Top Ten Customers

CUSTOMER ORIENTATION
• A Five Point Plan
1. Know your Customer/s 2. Find Out what will … – Satisfy them – Please them – Delight them 3. Critically evaluate work practices, internal rules, systems & attitudes 4. Identify the changes needed 5. Work on people (including yourself) who can make it happen

CUSTOMER ORIENTATION
UNDERSTANDING THE CUSTOMER
• Alfa & Omega Of Marketing – Who Is The Customer? – Why Does He Buy ? – What Is His Opinion ? – What Are His Problems ? Current Customers Lapsed Customers Potential Customers

CUSTOMER ORIENTATION
COMPETITOR ORIENTATION
• Competitor could be – Direct Competition – Future Competition • From which competitor are we gaining ? • Which market are we gaining and what is the reason for our gain in market share • Are our competitor(s) vulnerable ? • How can we exploit their weaknesses ?

CUSTOMER ORIENTATION
How can we differentiate w.r.t. Competition • Product Superiority • Packaging Convenience • Better Availability • Speed / Reliability of Delivery • Better Technical / Purchasing Advice • Better After-Sales Service • Better “IMAGE”

CUSTOMER ORIENTATION
A. How well do we know our market ? What do we need to know about our customers ? • Who are they - Actual and Potential ? • How many ? • What do they currently buy ? • At what Price ? • For what purpose ? • How often ? How much ? • Why do they buy ? • How do they buy ? • How do they chose between competitors ?

CUSTOMER ORIENTATION
B. How well do we know our Competitors ? What do we need to know about our competitors ? • Who are our competitors ? - Direct and Indirect • What are their strengths & Weaknesses ? • What are their current & likely future strategies ? • What will they do ? And How will we react ? • What will we do ?

And how will they react ?

CUSTOMER ORIENTATION
C. How well do we know our Markets ? How can we get this information ? Quickly & Economically (a) From Current activities • Sales Force visit/s • Other Customer contact staff • Published data • Staff recruitment • Sales record analysis • Financial record analysis

CUSTOMER ORIENTATION
C. How well do we know our Markets ? How can we get this information ? Quickly & Economically (cont…) (b) From Market Research Organize the research report from : • Company staff • Business school student • shared surveys • local researchers

CUSTOMER ORIENTATION
D. How well do we know our Markets ?
What can we do with this information ? (a) Decide which customers to concentrate on : • understand their needs • provide satisfaction better than competition (b) Decide which products to concentrate on : • from understanding the customers and competitors better (c) Decide how to better access & persuade customers • By understand what information they need • By understanding how/where do they want to buy ? • By understanding their needs / acceptable price

CUSTOMER ORIENTATION
E. How well do we know our Markets ? What can we do with this information ? Decide how to manage our Marketing activities better : • Market Focus • Product development • Pricing policy • Distribution strategy • Advertising & Sales Promotion Strategy • Sales Force

PROFIT FROM MARKETING
How can Marketing improve business strategy ? Key Strategic Questions
Where are we now

How will we get there

Where do we want to go

WHERE DO WE WANT TO GO ?
Corporate Goals ? What business are we in ?
How big ? How profitable ? What growth ?

Production Goals

Marketing Goals
Which Market / Segment What share What sales What costs

Financial Goals

CORPORATE / MARKETING GOALS
• Growth is seen for the past 5 years and is also planned for next 5 years • Share varies for each Product Category e.g. for FMCG it’s tonnage sold • Sales is generally revenue earned compared to overall market revenue for the same product category • Costs covers all costs including Distribution, Advertising etc.

CLASSIC MARKETING
Analyse the Customers Develop Product Offering Define Company Activity Resources • Money • Space • People Facilities • Laboratories • Factory • Warehouses • Offices Skills •R&D • Production • Distribution • Marketing • Service

Marketing Application & Practices

ASSET BASED MARKETING
Resources Facilities Skills

Identify New Products / Service Options Seek Market / Segment / Customer Possibilities Develop New Product / Service offering Redesign Company Activity

Modified Resources

Modified Facilities

Modified Skills

MARKETING STRATEGY
• How can we be better than Competitor in satisfying the Customer at a Profit ?
High Disaster Cost Commodity Low Premium Winner High

Differentiation

PROFIT FROM MARKETING
• Maintain / Expand / Regain sales to major customers • Sell the full range • Apply marginal price increase when possible • Identify potential market / customers • Target the weakest competitor’s customers • 80 : 20 Analysis • Install “Asset Based Marketing” Project • Motivate Intermediaries • Revitalise Sales Force • Promote Cost Effectively



doc_948325320.ppt
 

Attachments

Back
Top