Marketing management recap unit 1
- 2. Marketing is defined as an aggregate demand of the potential buyers for a product or service –by AMA Philip kotler defined market as an area of potential exchange. AMA defined marketing as “the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchange that satisfy individual and organizational goals.”
- 3. Philosophies/Concepts of Marketing 1. Product oriented marketing 2. Production oriented marketing 3. Sales oriented marketing 4. Customer oriented marketing 5. Social marketing 6. Green marketing
- 4. Functions of Marketing I. Information research on customer’s needs and wants II. Merchandising product that satisfy customer’s needs III. Product planning and development IV. Pricing V. Promotion/Communication VI. Physical Distribution/Selling
- 5. Types of Modern Marketing Viral Marketing: It is a marketing phenomenon that facilitates and encourages people to pass along a marketing message. Off the Internet viral marketing has been referred to as “word-of-mouth,””creating a buzz,” “leveraging the media,” network marketing.” But on the Internet, for better or worse, it is called ‘viral marketing.” Example : Hotmail.com, Reliance Jio
- 6. Types of Modern Marketing Green /Environmental/ Ecological Marketing: According to the American Marketing Association (AMA), green marketing is the marketing of products that are presumed to be environmentally safe. Green marketing can appeal to a wide variety of these issues: an item can save water, reduce greenhouse gas emissions, cut toxic pollution, clean indoor air, and/or be easily recyclable.
- 7. Types of Modern Marketing Social media marketing: It refers to the process of gaining website traffic or attention through social media sites. Consumer’s Online Brand Related Activities (COBRAs) is another method used by advertisers to promote their products. Activities such as uploading a picture of your new (anything) to Facebook are an example of COBRA. Another technique of SMM is electronic Word of Mouth (eWOM).
- 8. Types of Modern Marketing Internet/web/ online/ webvertising/ e- Marketing: It is referred to as the marketing (generally promotion) of product or services over the Internet. It also includes marketing via e-mail, wireless media, Digital customer data and electronic customer relationship management (ECRM). It uses tools & techniques such as social media marketing (SMM), local directory listing, and targeted online sales promotions. Examples are EBay, OLX etc.
- 9. Types of Modern Marketing Industrial Marketing (or Business to Business marketing): It is the marketing of goods & services by one business to another. Industrial goods are those an industry uses to produce an end product from one or more raw materials.
- 10. Types of Modern Marketing Ecommerce (e-commerce) or electronic Commerce: A subset of ebusiness, is the purchasing, selling, and exchanging of goods and services over computer networks (such as the Internet) through which transactions or terms of sales are performed electronically. Contrary to popular belief, ecommerce is not just on the web. Ecommerce can be broken into four main categories: B2B, B2C, C2B, and C2C.
- 11. 4P’s or 5P’s of Marketing mix by McCarthy 1. Product: refers to the item actually being sold. 2. Price: refers to the value that is put for a product. 3. Place: refers to the point of sale. 4. Promotion: this refers to all the activities undertaken to make the product or service known to the user and trade. 5. Packaging: refers to all those activities related to designing, evaluating and producing the container for a product.
- 12. Marketing Concept Vs Selling Concept Basis for Comparison Selling Concept Marketing Concept Meaning Selling concept is a business notion, which states that if consumers and businesses remain unattended, then there will not be ample sale of organization's product. Marketing concept is a business orientation which talks about accomplishing organizational goals by becoming better than others in providing customer satisfaction.
- 13. Marketing Concept Vs Selling Concept Basis for Comparison Selling Concept Marketing Concept Associated with Compelling consumer's mind towards goods and services. Directing goods and services towards consumer's mind. Starting point Factory Target Market Focuses on Product Customer needs
- 14. Marketing Concept Vs Selling Concept Basis for Comparison Selling Concept Marketing Concept Perspective Inside-out Outside-in Essence Transfer of title and possession Satisfaction of consumers Business Planning Short term Long term Orientation Volume oriented Profit oriented Means Heavy selling and promotion Integrated marketing Price Cost of Production Market determined
- 15. Marketing Environment Every organization is surrounding by an environment which has direct or indirect impact on each other. This environment is made of all those factors- internal as well as external that are somehow related to the organizational function.
- 16. Elements of Marketing Environment are: Micro environment – suppliers, consumers, local stakeholders, Bankers/creditors, competitors, market demand, logistic support. Macro environment – socio-cultural, political, economic, Demographic, technological. Internal environment- employees, markets, service providers.
- 17. Marketing strategy It is a long-term, forward-looking approach and an overall game plan of any organization or any business with the fundamental goal of achieving a sustainable competitive advantage by understanding the needs and want of customers.
- 18. Strategic planning seeks to address three deceptively simple questions, specifically: Where are we now? (Situation analysis) What business should we be in? (Vision and mission) How should we get there? (Strategies, plans, goals and objectives)
- 19. Strategic analysis tools and techniques The BCG Matrix is just one of the many analytical techniques used by strategic analysts as a means of evaluating the performance of the firm's current stable of brands
- 20. Strategic analysis tools and techniques Perceptual mapping assists analysts to evaluate the competitive performance of brands.
- 21. Strategic analysis tools and techniques A product evolutionary cycle helps to envision future directions for product development .
- 22. Strategic analysis tools and techniques Porter's Five Forces Framework is a method for analyzing competition of a business. It draws from industrial organization economics to derive five forces that determine the competitive intensity and, therefore, the attractiveness of an industry in terms of its profitability.
- 23. Strategic analysis tools and techniques PEST analysis: variables that may be considered in the environmental scan.
- 24. Strategic analysis tools and techniques A SWOT analysis, with its four elements in a 2×2 matrix. A study undertaken by an organization to identify its internal strengths and weaknesses, as well as its external opportunities and threats.
- 26. Marketing Information System (MIS) The marketing excellence achieved by a firm bears a direct relationship to the way it manages marketing information. Firms have develop MIS that provide management with database related to the buyers wants, preferences, demographic features, vendors details, the price list of different competitors so that this aid in taking accurate and correct marketing decisions.
- 27. Advantage of MIS 1. Make available information related to external as well as internal environment of the company in order to enhance opportunities and build defenses against threats. 2. Helps to sense the changing trends of the market. 3. Provide valuable market intelligence. 4. Makes customers –oriented marketing mix which is more relevant to the current needs of the customer.
- 28. Advantage of MIS 5. Helps product innovations which are the results of the firm’s knowledge of un-served market needs. 6. Helps reduce product failures. 7. Helps in building customer relations. 8. Impart quality to all marketable decisions, the quality of these decisions depends greatly on the quality marketing information available to decision maker.
- 29. Marketing Intelligence Marketing intelligence is different from MIS in sense that it gives strategic “happening information” quite often related to competitors’ activities. It furnishes information on change in market conditions, changes in customer tastes and consumption patterns, emerging marketing strategies of competitors and emerging threat and opportunities in the business. In many cases MIS is used to gather marketing intelligence.
- 30. Marketing Intelligence Marketing managers collect marketing intelligence by reading books, newspapers, and trade journal; talking to customers, suppliers and distributers; monitoring social media via online discussion groups; blogs and chats. A company can motivate sales executives, distributers, retailers and other intermediaries to pass important intelligence and new market developments.
- 31. Data Mining & Data warehousing Companies warehouse information into customer databases, product databases, salesperson databases and make them easily accessible to decision makers. By hiring analysts skilled in statistical methods, they can ‘mine’ the data and spot the un- served customer needs and other useful information.
- 32. Understanding Consumer Markets/ Consumer’s Behaviour Analyzing consumer markets implies understanding the consumer behaviour. It is the study of how customers select, buy, use, and dispose off goods to satisfy their needs and wants.
- 36. Market Research It is research into a market’s size and type of customers who constitutes it.
- 37. Marketing Research It is a systematic gathering, recording and analyzing the data about marketing problems to facilitate marketing decision making.
- 38. Objectives/Marketing Research tells about Who are customers? What they need and want? What are their buying motives? What to produce? What will be the price? What will be the promotional tool used? What will be the features, quality of the product? How can be the new markets for existing product?
- 39. Steps in Marketing Research Identifying marketing problem Collecting primary and secondary information Tabulation and analysis of data Interpretation Preparation on research report Follow-up study’s results
- 40. Marketing Research is not used when the 1. Required information is already available 2. Decisions need to be made now 3. Organization can’t afford the research 4. Costs outweigh the value of the research