Introduction to Marketing management By Nitin Shekapure
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This document provides an overview of marketing concepts. It defines marketing as delivering customer satisfaction at a profit. The goal of marketing is to attract new customers by promising superior value and keeping current customers satisfied. Marketing deals with customers and creating value and satisfaction. Market segmentation involves dividing the market into groups that may require different products or marketing approaches. The benefits of segmentation include focusing on opportunities, reducing costs, and achieving competitive advantage. Key steps in segmentation include identifying variables, developing profiles, evaluating attractiveness, and selecting target segments. Potential variables for segmenting consumers or businesses are also outlined.
Introduction to Marketing management By Nitin Shekapure
- 2. What is Marketing ? Marketing is the delivery of customer satisfaction at a profit.
- 3. The Goal of Marketing is: To attract new customer by promising superior value, and to keep current customers by delivering satisfaction.
- 4. • Marketing, more than any other business function, deals with customers. • Creating customer value and satisfaction are at the very heart of modern marketing thinking and practice. • Some people believe that only large business organizations operating in highly developed economies use marketing, but sound marketing is critical to the success of every organization – whether large or small, for profit or non – profit, domestic or global.
- 7. Marketing Defined • Many people think of marketing only as selling and advertising. • Selling and advertising are only the tip of the marketing ice-berg. • Marketing is one of three key core functions that are central to all organizations. • Marketers act as the customers’ voice within the firm and marketers are responsible for many more decisions than just advertising or sales: Analyse industries to identify emerging trends. Determine which national and international markets to enter or exit. Conduct research to understand consumer behavior. Design integrated marketing mixes – products, prices, channels of distribution, and promotion programs.
- 8. To explain marketing definition, we examine the following important terms : Needs, wants, and demands Products and services Value, satisfaction and quality Exchange, transactions, and relationships Markets
- 9. Needs, Wants, and Demands Needs: • The most basic concept underlying marketing is that of human needs. • Human needs are states of felt deprivation. • Human have many complex needs: • Physical needs for food, clothing, warmth, and safety • Social needs or belonging and affection • Individual needs for knowledge and self – expression Wants: • Want are the form taken by human needs as they are shaped by culture and individual personality. • People have almost unlimited wants but limited resources. • They want to choose products that provide the most value and satisfaction for their money. Demands: • When backed by buying power, wants become demands. • Consumers view products as bundles of benefits and choose products that give them the best bundle for their money.
- 10. Products and Services Product: • Anything that can be offered to a market to satisfy a need or want. • The concept of product is not limited to physical objects – anything capable of satisfying a need can be called a product. Services: • In addition to tangible goods, products also include services, which are activities or benefits offered for sale that are essentially intangible and do not result in the ownership of anything.
- 11. Values, Satisfaction and Quality Values: • Customer value is the difference between the values the customer gains from owning and using a product and the costs of obtaining the products. • Customers often do not judge product value and costs accurately or objectively. They act on perceived value. Satisfaction: • Customer satisfaction depends on a product’s perceived performance in delivering value relative to a buyer’s expectation. • If the product’s performance falls short of the customer’s expectations, the buyer is dissatisfied. Quality: • Customer satisfaction is closely linked to quality. • Quality has a direct impact on product performance. • Quality can be defined as “freedom from defects”. • TQM programs designed to constantly improve the quality of products, services, and marketing processes.
- 12. Exchange, Transactions, and Relationships Exchange : • The act of obtaining a desired object from someone by offering something in return Transaction : • A trade between two parties that involves at least two things of value, agreed – upon conditions a time of agreement, and a place of agreement. Relationship marketing : • The process of creating, maintaining, and enhancing strong, value – laden relationships with customers and other stakeholders
- 13. Marketing Management The analysis, planning, implementation, and control of programs designed to create, build, and maintain beneficial exchanges with target buyers for the purpose of achieving organizational objectives.
- 14. Marketing Management Involves: • Demand Management : The organization has a desired level of demand for its products. At any point in time, There may be no demand, adequate demand, irregular demand, or too much demand, and marketing management must find ways to deal with these different demand states. • Building Profitable Customer Relationships : Beyond designing strategies to attract new customers and create relations with them, companies now are motivated to retain current customers and build lasting customer relationships.
- 15. Marketing Management Philosophies • The role that marketing plays within a company varies according to the overall strategy and philosophy of each firm. • There are five alternative concepts under which organizations conduct their marketing activities: • Production concept • Product concept • Selling concept • Marketing concept • Societal marketing concepts
- 16. Production Concept The philosophy that consumers will favor products that are available and highly affordable and that management should therefore focus on improving production and distribution efficiency.
- 17. Product Concept The philosophy that consumers will favor products that offer the most quality, performance, and innovative features.
- 18. Selling Concept The idea that consumers will not buy enough of the organization’s products unless the organization undertakes a large – scale selling and promotion effort.
- 19. Marketing Concept The marketing management philosophy that holds that achieving organizational goals depends on determining the needs and wants of target markets and delivering the desired satisfactions more effectively and efficiently than competitors do.
- 20. Societal Marketing Concept The idea that the organization should determine the needs, wants, and interests of target markets and deliver the desired satisfactions more effectively and efficiently than competitors in a way that maintains or improves the consumer’s and society’s well – being.
- 21. The selling and Marketing Concepts
- 22. Three Considerations Underlying The Societal Marketing
- 23. Three Critical Tasks of the Marketing Department Define Target Segments Understand Consumer Needs Satisfy Consumer Needs First Task Second Task Third Task features benefits values (motivations) desires fears product price promotion place
- 24. Market Segmentation The act of dividing a market into distinct groups of consumers who may require different products and/or marketing mixes.
- 25. Benefits of Market Segmentation Market Segmentation has huge potential for improving the overall effectiveness of your company’s marketing efforts. Focus on the customer segments who offer the greatest opportunity. Instead of a company scattering its resources and marketing efforts on the mass market, it can target a specific group of potential buyers with refined products and services that better meet their needs. Reduce the overall costs of marketing. Focusing the marketing budget on only the target customers eliminates the high cost of selling, communicating, and distributing to the mass market. Achieve competitive advantage. By designing an offer which targets a specific customer segment, your organization can develop a market niche, differentiate itself from the competition, and achieve competitive advantage.
- 26. Steps in Market Segmentation Step 1 Identify segmentation variables and segment the market Step 2 Develop profiles of resulting segments Step 3 Evaluate the attractiveness of each segment Step 4 Select the target segments(s) Step 5 Identify possible positioning concepts for each target segment Step 6 Select, develop and communicate the chosen positioning concepts
- 27. Potential Consumer Segmentation Variables Demographics Household/family size Age Gender Marital Status background Religion Geography Socioeconomics Education Occupation Income Product Benefits wanted Amount of use Use occasions Reasons for use Method for using Attitudes toward Consumer Psychographics Lifestyle Life stage Values Brand Satisfaction Loyalty Attitudes toward Serve as the basis for segmentation as well as for profiling
- 28. Potential Business Segmentation Variables Demographics Industry Company size Location Personal Characteristics Buyer-seller similarity Attitudes toward risk Loyalty Operating Variables Technology User/nonuser status Customer capabilities Situational Factors Urgency Specific application Size of order Purchasing Approaches Purchasing-function organization Power structure Nature of existing relationship0s General purchase policies Purchasing criteria Serve as the basis for segmentation as well as for profiling
- 29. Evaluate the Attractiveness of Each Segment Select Target Segments 1. Size of segment 2. Potential revenues and profitability 3. Your brand’s performance vs. competitors 4. Required resources and capabilities 5. Long term growth potential 6. Reachability 7. Actionability
- 30. Thankyou