Basics lecture1
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This document provides an overview of marketing management basics. It discusses key terms like needs, wants, demands, and the value proposition. It explores the evolution of marketing concepts from production to societal marketing. The core marketing concepts of the marketing mix, 4As, value delivery process, value chain, and core competencies are explained. Customer analytics topics like customer profitability analysis and customer lifetime value are also covered. The document concludes with discussing new marketing realities around technology, globalization, and the need for social responsibility in marketing.
Basics lecture1
- 1. Marketing Management Basics By: Dr. Deepa Rohit Associate Professor, Weschool
- 2. ““There are three kinds of companies: those who make things happen; those who watch things happen; & those who wonder what’s happened.” ― Philip Kotler 2 Dr. Deepa Rohit
- 3. What do we explore today ? ▪ Selling and Marketing ▪ Significance of Marketing ▪ Some of the basic terms of marketing ▪ Need, want, demand ▪ Value proposition, offering, brand, satisfaction, value ▪ Evolution of Marketing ▪ Marketing Realities - Today 3 Dr. Deepa Rohit
- 5. “ “Selling is only the tip of the marketing iceberg.” “There will always be need for selling, but the aim of marketing is to make selling superfluous” - Peter Drucker 5 Dr. Deepa Rohit
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- 8. What is Marketing? About identifying and meeting needs profitably The American Marketing Association (AMA) Marketing is the activity, set of institutions and processes for creating, communicating, delivering and exchanging offering that have value for customers, clients, partners and society at large Kotler & Keller Marketing Management is the art and science of choosing target markets, getting, keeping and growing customers through creating, delivering and communicating superior customer value 8 Dr. Deepa Rohit
- 9. What is marketed? ○ Goods ○ Services ○ Events ○ Experiences ○ Persons ○ Places ○ Properties ○ Organizations ○ Information ○ Ideas 9 Dr. Deepa Rohit
- 10. Typical Marketing Process 10Analysing marketing opportunities Selecting target markets Designing marketing strategies Developing marketing programs Managing and execution of programs Dr. Deepa Rohit
- 11. Core Marketing Concepts 11 Dr. Deepa Rohit
- 12. Need Want Demand Does Marketing create needs? 12 Dr. Deepa Rohit
- 13. Types of Needs 13 Dr. Deepa Rohit
- 14. Types of Needs 1. Stated need : The customer wants an inexpensive car 2. Real need : low maintenance car 3. Unstated need : expects good service 4. Delight need : additional covers/ insurance free 5. Secret need : social approval / customer friendly 14 Dr. Deepa Rohit
- 15. Demand States ○ Negative Demand – consumers dislike the product and even pay to avoid it ○ Non-existent demand – unaware/ uninterested in the product ○ Latent demand – strong need but not satisfied by an existing product ○ Declining demand – less frequent purchase ○Irregular demand – purchases vary based on season, hour etc. ○Full demand – customers are adequately buying all products ○Overfull demand – excess demand ○Unwholesome demand – undesirable social consequences 15 Dr. Deepa Rohit
- 16. Markets, Marketer & Prospect ○ Marketer – someone who seeks response, seller ○ Prospect – the buyer ○ Markets – Traditionally, a physical place where buyers and sellers are gathered to sell and buy products ○ In marketing, the term ‘Market’ describe customer groups ○ Sellers as Industry ○ Key Customer Markets – Consumer Markets, Business Markets, Global Market, Non-profit & Government Market 16 Dr. Deepa Rohit
- 17. It is a combination of products, services, information and experiences Offering Offering from a known source Brand A set of benefits that satisfy customer needs Value Proposition The intangible value proposition is made physical by an offering 17 Dr. Deepa Rohit
- 18. 18 Value The sum of tangible and intangible benefits and costs Quality Service Price Dr. Deepa Rohit
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- 20. Reflects person’s judgments of a product’s perceived performance in relation to the expectations Satisfaction 20 Expectations Performance Dr. Deepa Rohit
- 21. The Production Concept The Product Concept The Selling Concept The Marketing Concept Evolution of Marketing Concepts The Marketing Concept The Societal Marketing Concept https://www.youtube.com/watch?v=-ZNXVaj5LJY 21 Dr. Deepa Rohit
- 23. • Product Quality • Design • Features • Brand name • Warranties • Packaging • Pricing method • Discounts • Payment method • Credit period • Channels • Assortments • Locations • Inventory • Logistics. • Advertising • Sales Promotion • PR • Direct Marketing • Personal Selling • Social Media Marketing Product Price Place Promotion Marketing Mix- by McCarthy 23 Dr. Deepa Rohit
- 24. Acceptability Affordability Accessibility Awareness 4As – Customer Centric Values Proposed by Jagdish Sheth & Rajendra Sisodia 24 Dr. Deepa Rohit
- 25. Value Delivery Process 1. Choosing the value 2. Providing/ Delivering the value 3. Communicate Value 25 Dr. Deepa Rohit
- 26. The Value Chain ○ Michael Porter has proposed the value chain as a tool for identifying ways to create more customer value https://www.youtube.com/watch?v=aeshYi6lj2Y 26 Dr. Deepa Rohit
- 27. Core Competencies 1. It is a source of competitive advantage and makes a significant contribution to perceived customer benefits 2. It has applications in wide variety of markets 3. It is difficult for competitors to imitate in short run 27 Dr. Deepa Rohit
- 28. Customer Profitability Analysis ○ Return on Customer (ROC) ○ A profitable customer is a person, household or company that over time yields a revenue exceeding the company’s cost of attracting, selling, and serving that customer ○ Using activity-based costing 28 C1 C2 C3 P1 + + + Highly Profitable Product P2 + Profitable Product P3 - - unprofitable Product P4 - Highly unprofitable Product Dr. Deepa Rohit
- 29. Customer Lifetime Value (CLV) ○ CLV describes the net present value of the stream of future profits expected over the customer’s lifetime purchases ○ Attracting & Retaining customers ○ Reducing customer churn (defection) ○ Retention rates – Building brand loyalty, CRM ○ Managing the customer base 1. Reducing the churn rate 2. Increase longevity of the customer relationships 3. Enhancing – Share of Wallet, Cross Selling and Up selling 4. Making low profit customers more profitable or terminating them 5. Focusing on disproportionate efforts on high profit customers 29 Dr. Deepa Rohit
- 31. New Marketing Realities ○ Technology https://www.youtube.com/watch?v=lhXW8_7CaHM ○ Globalization ○ Social Responsibility ◦ Marketing 3.0 – value-driven, collaborative and thinking marketing focused on sustainable technological development, culturally rooted, customer-co-creation 31 Dr. Deepa Rohit