Module1.pptx
- 1. Introduction to Marketing Environment Module 1 Manasa N
- 2. Introduction • Main objective of any business organization is to satisfy the needs and wants of the society • Production or purchase is of no meaning if a firm is unable to market its goods and services • Marketing is the focal point of all business activities Manasa N
- 3. Introduction • Marketing is an ancient art & is everywhere. • Formally or informally, people & organizations engage in a vast numbers of activities that could be called marketing. • Good marketing has become an increasingly vital ingredient for business success. • It is embedded in everything we do- from the clothes we wear, to the web sites we click on, to the ads we see. Manasa N
- 4. • The term Marketing has been derived from the word Market • Market is a place or geographical area where buyers and sellers meet and enter into transactions involving transfer of ownership of goods and services Marketing Defined Manasa N
- 5. • Traditional View Performance of business activities that direct the flow of goods and services from producers to consumers or users • Modern View A business process through which products are matched with the markets and through which transfer of ownerships are effected Marketing Defined Manasa N
- 6. Marketing Defined • The American Marketing Association has defined marketing as “an organizational function & a set of processes for creating, communicating & delivering value to the customers & for managing customer relationships so as to benefit the organization & the stake holders. Manasa N
- 7. • “The process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return.” • According to Philip Kotler, “Marketing is a social process by which individuals and groups obtain what they need and want through creating, offering, freely exchanging products and services of value with others” Marketing Defined Manasa N
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- 9. What are Consumers’ Needs, Wants, and Demands? Needs- stateof felt deprivationincluding physical,social, and individualneedsi.ehunger Wants- formthatahuman needtakesasshapedby cultureandindividual personalityi.e. bread Demands- humanwants backedbybuyingpower i.e. money Manasa N
- 10. NATURE OF MARKETING • • • • • • • • • Exchange is the essence of marketing. Marketing is customer/ consumer oriented. Marketing starts and ends with customers/ consumers. Modern marketing precedes and succeeds production. Marketing is goal oriented and the goal being profit maximization through satisfaction of human needs. Marketing is a science as well as an art. Marketing is the guiding element of business (It tells what, when, how to produce; Marketing is capable of guiding and controlling business. Marketing is a system . Marketing is a process, i.e., series of interrelated functions. Manasa N
- 11. Marketing has a very wide scope it covers all the activities from conception of ideas to realization of profits. Some of them as discussed as below: • Study of Consumer Wants and Needs: Goods are produced to satisfy consumer wants. Therefore study is done to identify consumer needs and wants. These needs and wants motivates consumer to purchase. • Study of Consumer behaviour: Marketers performs study of consumer behaviour. Analysis of buyer behaviour helps marketer in market segmentation and targeting. • Product Planning and development : It includes the activities of product research, marketing research, market segmentation, product development, determination of the attributes, quantity and quality of the products. • Branding: Branding of products is adopted by many reputed enterprises to make their products popular among their customer and for many other benefits. Marketing manager has to take decision regarding the branding policy, procedures and implementation programs. • Packaging: Packaging is to provide a container or wrapper to the product for safety, attraction and ease of use and transportation of the product. Scope of Marketing Manasa N
- 12. Scope of Marketing • • • • • Channels of Distribution: Decision regarding selection of most appropriate channel of distribution like wholesaling, distribution and retailing is taken by the marketing manager and sales manager. • Pricing Policies: Marketer has to determine pricing policies for their products. Pricing policies differs form product to product. It depends on the level of competition, product life cycle, marketing goals and objectives, etc. Sales Management: Selling is a part of marketing. Marketing is concerned about all the selling activities like customer identification, finding customer needs, persuading customer to buy products, customer service, etc. Promotion: Promotion includes personal selling, sales promotion, and advertising. Right promotion mix is crucial in accomplishment of marketing goals. Finance: Marketing is also concerned about the finance, as for every marketing activity be it packaging, advertising, sales force budget is fixed and all the activities have to be completed with in the limit of that budget. After Sales services: Marketing covers after sales services given to customers, maintaining good relationships with customers, attending their queries and solving their problems. Manasa N
- 13. Customer Experience (1998 - Present) Customers Evolution of Marketing The Firm/ Company Product (to 1950s) Production (to 1960s) Selling (1950 - 1960s) Marketing (1970 - Present) Manasa N
- 14. 1970s till 1980s Focus was the product and the effectiveness The development and research was at the forth front because of changed needs it was important to produce the right things and to be innovative that means that the best product wins, which means getting the most sales Product concepts seeks to achieve result via product excellence. And emphasis on quality assurance Myopia when organization love product its leads to marketing myopia because the focus is on product rather the customers needs Manasa N
- 15. Prevailed from the time of the industrial revolution until the early 1950's The idea that a firm should focus on those products that it could produce most efficiently and that the creation of a supply of low-cost products would in and of itself create the demand for the products. The key questions that a firm would ask before producing a product were: Can we produce the product? Can we produce enough of it? At the time, the production concept worked fairly well because the goods that were produced were largely those of basic necessity and there was a relatively high level of unfulfilled demand. The production concept prevailed into the late 1920's. Manasa N
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- 17. Around this time (Mass Production), firms began to practice the sales concept (or selling concept), under which companies not only would produce the products, but also would try to convince customers to buy them through advertising and personal selling. Before producing a product, the key questions were: Can we sell the product? Can we charge enough for it? The sales concept paid little attention to whether the product actually was needed; the goal simply was to beat the competition to the sale with little regard to customer satisfaction. Marketing was a function that was performed after the product was developed and produced, and many people came to associate marketing with hard selling. Even today, many people use the word "marketing" when they really mean sales. Manasa N
- 18. It starts with consumer want and ends with satisfaction of those wants It is rest on four pillars and they are target market, costumer need, integrated marketing and profitability Profit through consumer satisfaction What do customers want? Can we develop it while they still want it? How can we keep our customers satisfied? In response to these discerning customers, firms began to adopt the marketing concept, which involves: Focusing on customer needs before developing the product Aligning all functions of the company to focus on those needs Realizing a profit by successfully satisfying customer needs over the long-term When firms first began to adopt the marketing concept, they typically set up separate marketing departments whose objective it was to satisfy customer needs. Manasa N
- 19. Marketing Promotes Product Awareness to the Public Marketing Helps Boost Product Sales Marketing Builds Company Reputation Manasa N
- 20. Core Concepts/ Philosophies of Marketing/ Evolution of Marketing/ Marketing Orientation Manasa N
- 21. • Exchange Concept holds that the exchange of a product between seller & buyer is the central idea of marketing. Exchange is an important part of marketing, but marketing is a much wider concept. • Production Concept is one of the oldest concepts in business. It holds that consumers will prefer products that are widely available & inexpensive. Manager of production oriented business concentrate on achieving high production efficiency low cost & mass distribution. Core Concepts/ Philosophies of Marketing Manasa N
- 22. • Product Concept holds that consumers will prefer those products that are high in quality, performance or innovative features. Managers in these organization focus on making superior products & improving them over time. Core Concepts/ Philosophies of Marketing Manasa N
- 23. • Selling Concept holds that consumers, if left alone, will ordinarily not buy enough of the organizations product and thus the organization must undertake an aggressive selling promotion effort for pushing its products. • It implies selling what is made, rather than making what can sell. Core Concepts/ Philosophies of Marketing Manasa N
- 24. • • • • The Marketing concept emerged in the mid 1950’s.The business generally shifted from a product – centered, make & sell philosophy, to a customer centered, sense & respond philosophy. The job is not to find the right customers for your product, but to find right products for your customers. The marketing concept holds that the key to achieving organizational goals consists in determining the needs and wants of target markets and delivering the desired satisfaction more effectively and efficiently than competitors. Every department & every worker should think customer & act customer. Core Concepts/ Philosophies of Marketing Manasa N
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- 26. • Social or Societal Marketing Concept holds that the organizations task is to determine the needs, wants and interests of target markets and to deliver the desired satisfaction more effectively and efficiently than competitors in a way that preserves or enhances the customers' and the society's well being. Core Concepts/ Philosophies of Marketing Manasa N
- 27. • • • • http://www.projectguru.in/publications/concept-of-holistic-mar Core Concepts/ Philosophies of Marketing • The Holistic Marketing Concept is based on the development, design and implementation of marketing programs, processes and activities that recognizes their breadth and inter-dependencies. Holistic marketing is a marketing philosophy that believes ‘everything matters’ and that a business cannot exist and excel in vaccum. This is an approach which proposes that marketing should be looked from a broad and integrated perspective and not as an isolated management function. For more details, please visit: Manasa N
- 29. Difference between Marketing and Selling MARKETING Focuses on customer’s needs Customer Enjoys Supreme importance Product Planning and development to match products with markets Converts customer’s needs into products Profits through customer satisfaction Consumers determine the price; price determines costs SALES Focuses on Seller’s needs Product enjoys supreme importance High pressure selling to sell goods already produced Converts products into cash Profits through sales volume Cost determines the price Manasa N
- 30. Marketing Environment • Businesses do not operate in isolation in the market place. • There are various factors/ forces, that directly or indirectly influence the organizations business activities. • All these forces/ factors form the Marketing Environment of an organization. • The company operates in a complex marketing environment, consisting of uncontrollable forces, to which the company must adapt. Manasa N
- 31. • Marketing is the sum total of trading forces operating in a market place, over which a business has no control, but which shapes the manner in which the business functions and is able to satisfy its customers. • A marketing environment is what surrounds and creates impact on business organizations. • Marketing environment is un-controllable and ever changing. Marketing Environment Manasa N
- 32. • The key elements of marketing environment are as follows :- • Internal Environment, • Micro Environment, and • Macro Environment. Marketing Environment Manasa N
- 33. Internal Environment • • • • • The internal environment refers to the forces and actors that are within the organization and affects its ability to serve its customers. A Company’s marketing system is influenced by its capabilities regarding production, financial & other factors. Hence, the marketing management/manager must take into consideration these departments before finalizing marketing decisions. It includes marketing managers, sales representatives, marketing budget, marketing plans, procedures, inventory, logistics, and anything within organization which affects marketing decisions, and its relationship with its customers. The Research & Development Department, the Personnel Department, the Accounting Department also have an impact on the Marketing Department. It is the responsibility of a manager to company-ordinate all department by setting up unified objectives. Manasa N
- 34. Micro Environment • The micro environment refers to the forces that are close to the marketing organization and directly impact the customer experience. • It includes the organization itself, its suppliers, marketing intermediaries, customers, markets or segments, competitors, and publics. • Happenings in micro environment is relatively controllable for the marketing organization. Manasa N
- 35. Some Factors in Micro Environment • • • • Suppliers are the people who provide necessary resources needed to produce goods & services. Policies of the suppliers have a significant influence over the marketing manager’s decisions. A company must build cordial & long-term relationship with suppliers. Marketing Intermediaries are the people who assist the flow of products from the producers to the consumers; they include wholesalers, retailers, agents, etc. These people create place & time utility. A company must select an effective chain of middlemen, so as to make the goods reach the market in time. • Consumers are the center point of all marketing activities. The main aim of production is to meet the demands of the consumers. Each type of consumer has a unique feature which have to be considered by the marketers before taking the decisions. otherwise the company is bound to fail in achieving its objectives. A company’s marketing strategy is influenced by its target consumer Competitors: A prudent marketing manager has to be in constant touch regarding the information relating to the competitor’s strategies. He has to identify his competitor’s strategies, build his plans to overtake them in the market to attract competitor’s consumers towards his products. Public: A Company’s obligation is not only to meet the requirements of its customers, but also to satisfy the various groups. A public is defined as “any group that has an actual or potential ability to achieve its objectives”. The significance of the influence of the public on the company can be understood by the fact that almost all companies maintain a public relation department. A positive interaction with the public increase its goodwill irrespective of the nature of the public. A company has to maintain cordial relation with all groups, public may or may not be interested in the company, but the company must be interested in the views of the public. Manasa N
- 36. Macro Environment • • • Macro environment refers to all forces that are part of the larger society and affects the micro environment. It includes demography, economy, politics, culture, technology, and natural forces. These are the factors/forces on which the company has no control. Hence, it has to frame its policies within the limits set by these forces: Manasa N
- 37. • • • • • Demography is defined as the statistical study of the human population & its distribution that forms the market. A company should study the population, its distribution, age composition, status, etc before deciding the marketing strategies. Economic Environment: The economic environment affects a consumer’s purchasing behavior either by increasing his disposable income or by reducing it. Eg: During the time of inflation, the value of money comes down. Hence, it is difficult for them to purchase more products. Physical Environment or Natural Forces: A company has to adopt its policies within the limits set by nature. A man can improve the nature but cannot find an alternative for it. Nature offers resources, but in a limited manner. Companies must find the best combination of production for the sake of efficient utilization of the available resources. Otherwise, they may face acute shortage of resources. Eg: Petroleum products, power, water, etc. Technological Factors: Every new invention builds a new market & a new group of customers. A new technology improves our lifestyle & at the same time creates many problems. Social & Cultural Factors: Most of us purchase because of the influence of social & cultural factors. The lifestyle, values, believes, etc are determined among other things by the society in which we live. Each society has its own culture which shapes our behavior. A marketing manager must study the society and culture in which he operates and must try to anticipate the changes and new marketing opportunities. • political Factors includes all laws, government agencies, and groups that influence or limit other organizations and individuals within a society. It is important for marketers to be aware of these restrictions as they can be complex and can profoundly affect a firm’s marketing. Some Factors in Macro Environment Manasa N
- 38. CUSTOMER SATISFACTION • • • The most important asset of any organization is its customers. Satisfied customers are the lifeblood of any organization. Product’s perceived performance in delivering value relative to buyer’s expectations is customer satisfaction Manasa N
- 39. Customer Satisfaction • It is the person’s feeling of pleasure or disappointments, resulting from comparing a product’s perceived performance (outcome), in relation to his/ her expectations. Perceived performance below expectations = dissatisfied customer Perceived performance meets expectations = satisfied customer Perceived performance exceeds expectations = delighted customer Manasa N
- 40. Customer Value • • • Also known as Customer Perceived Value. It is the difference between the prospective customer’s evaluation of all the benefits and all the costs of an offering and the perceived alternatives. “The perceived worth of the set of benefits received by a customer in exchange for the total cost of the offering, taking into consideration available competitive offerings and pricings.” • Value is the perception of the benefits associated with a good, service, or bundle of goods and services (i.e., the customer benefit package) in relation to what buyers are willing to pay for them. Manasa N
- 42. • Total customer value is the perceived monetary value of the bundle or economic, functional, and psychological benefits customers expect from a given market offering. • Total customer cost is the bundle of costs customers expect to incur in evaluating, obtaining , using, and disposing of the given marketing offering. • Customer Value Manasa N
- 43. • Example: Customer Value for “Fossil Watch” A customer will derive value from a Fossil Watch, based on following parameters: Manasa N
- 44. Concept of Value Chain • • • Underlying purpose of every organization is to provide value to its customers and stakeholders. To analyze the specific activities through which firm can create competitive advantage, it is useful to model the firm as a chain of value creating activities. Value chain can be understood as the entire series of organizational work activities that add value at each step, beginning with the processing of raw materials and ending with finished products in the hands of end users. Manasa N
- 45. • Interlinked value-adding activities that convert inputs into outputs which, in turn, add to the bottom line and help create competitive advantage. • Michael Porter identified a set of interrelated generic activities, which are common to a wide range of firms, and framed it as a model called Value Chain. • Michael Porter suggested that the organization is split into ‘primary activities’ and ‘support activities’. Concept of Value Chain Manasa N
- 46. Michael Porter’s Model of Value Chain Manasa N
- 47. Primary Activities • Porter identified two sets of activities: Primary activities are directly concerned with creating and delivering a product. These activities aim at creating value that exceeds the cost of providing the product or service, thus generating a profit margin. Support Activities facilitate the primary value chain activities. Support activities assist the primary activities in helping the organisation achieve its competitive advantage. Manasa N
- 48. Primary Activities • • • • • Inbound logistics : Refers to goods being obtained from the organization's suppliers and to be used for producing the end product. Operations : Process where raw materials and goods are manufactured into the final product. Value is added to the product at this stage as it moves through the production line. Outbound logistics : Once the products have been manufactured they are ready to be distributed to distribution centers, wholesalers, retailers or customers. Distribution of finished goods is known as outbound logistics. Marketing and Sales: Marketing must make sure that the product is targeted towards the correct customer group. The marketing mix is used to establish an effective strategy, any competitive advantage is clearly communicated to the target group through the promotional mix. Services: After the product/service has been sold what support services does the organization offer customers? This may come in the form of after sales training, customer support, repair services, guarantees and warranties. Manasa N
- 49. Support Activities • Procurement: This department must source raw materials for the business and obtain the best price for doing so. The challenge for procurement is to obtain the best possible quality available (on the market) for their budget. • Technology development: The use of technology to obtain a competitive advantage is very important in today’s technological driven environment. This includes research and development, process automation, and other technology development, used to support the value chain activities. • Human resource management: These are the activities associated with recruitment, development and compensation of employees. The organization will have to recruit, train and develop the correct people for the organization to be successful. Staff will have to be motivated and paid the ‘market rate’ if they are to stay with the organization and add value. • Firm infrastructure: Every organization needs to ensure that their finances, legal structure and management structure work efficiently and helps drive the organization forward. Inefficient infrastructure is waste resources; could affect the firm's reputation and even leave it open to fines and sanctions. Manasa N
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- 53. ORGANISATION SITUATION ANALYSIS • SWOT ANALYSIS • Porter’s Five Forces Model Manasa N
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- 56. Introduction • The Five ForcesModel was developed by Michael E.Porter to help companies assess the nature of an industry’s competitiveness and develop corporate strategiesaccordingly. • Thestrength of the five forces will determine the level of profit within an industry that acompetitor canexpect to make • Through his model, Porter classifies five main competitive forces that affect any market and all industries. It is these forces that determine how much competition will exist in a market and consequently the profitability and attractiveness of this market for a company. Through sound corporate strategies, a company will aim to shape these forces to its advantage to strengthen the organizations position inthe industry. • Cont…
- 57. Introduction • This model aimed to provide a new way to use effective strategy to identify, analyze and manage external factorsin an organization’s environment. • Porter’s five forces model is an analysis tool that uses five industry forces to determine the intensity of competition in an industry and itsprofitability level. • An attractive market place does not mean that all companies will enjoy similar successlevels. Rather, the unique sellingpropositions, strategiesandprocesses will put one company over theother. • The Five Forces were Porter’s conclusions on the reasons for differing levels of competition, and hence profitability, in differing industries. They are empirically derived, i.e. by observation of real companies in real markets, rather than the result of economicanalysis.
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- 60. Competitive Rivalrywithin an Industry • This force is the major determinant on how competitive and profitable an industry is. In competitive industry, firms have to compete aggressively for a market share, which results in low profits. Rivalry among competitors is intensewhen: - There are manycompetitors - Exit barriers arehigh - Industry growth is slow ornegative - Products are not differentiated and canbe easilysubstituted - Competitors are of equalsize - Lowcustomer loyalty
- 61. Competitive Rivalrywithin anIndustry- Example McDonald’s faces tough competition because the fast food restaurant market is alreadysaturated. This element of the Five Forces analysis tackles the effect of competing firms in the industry environment. In McDonald’s case, the strong force of competitive rivalry is based on the following external factors: High number of firms (strongforce) High aggressiveness of firms (strong force) Low switching costs (strong force)
- 62. BargainingPowerof Suppliers • Strong bargaining power allows suppliers to sell higher priced or low quality raw materials to their buyers. This directly affects the buying firms’ profits because it has to pay more for materials. Suppliers have strong bargaining power when: - There are few suppliers but manybuyers - Suppliers are large and threaten to forwardintegrate - Fewsubstitute raw materialsexist - Suppliers hold scarceresources - Costof switching raw materials is especiallyhigh.
- 63. Exampleof Suppliersalsoinfluencethe competivenessof an industry • Thebargaining power of Toyota’ssupplier isWeak • Toyota has many suppliers in its automotive manufacturing sector. Resources like metal, raw materials, leather, plastic, computers, cooling system, electrical system, breaking system and fuel supply system are all bought from hundreds of different suppliers and different bargaining prices distributed across the globe. • One of the competitive advantages of Toyota is its strong relationship with the suppliers and its efficient manner of monitoring supply chain places low bargaining power on the suppliers. • In addition most vehicle manufactures own many interchangeable suppliers, and also have the ability to produce the components by their own in the short time. Thus, the suppliers do not own the power to change the price.
- 64. BargainingPowerof Buyer • Customers have the power to demand lower price or higher product quality from industry producers when their bargaining power is strong. Lower price means lower revenues for the producer, while higher quality products usually raise production costs. Both scenarios result in lower profits for producers. Customers exert strong bargaining power when: - Buying in large quantities or controlmany access points to the final customer - Only few customers exist - Switching costs to other supplier are low - They threaten to backward integrate - There are many substitutes - Customers are price sensitive
- 65. Threatof NewEntrants • This force determines how easy (or not) it is to enter a particular industry. If an industry is profitable and there are few barriers to enter, rivalry soon intensifies. When more organizations compete for the same market share, profits start to fall. It is essential for existing organizations to create high barriers to enter to deter new entrants. Threat of new entrants is highwhen: - Lowamount of capital is required toenter amarket - Existing companiescando little toretaliate - Existing firms do not possess patents, trademarks or do not have established brandreputation - There is no governmentregulation - There is low customerloyalty - Productsare nearly identical - Economiesof scalecanbe easilyachieved
- 66. Exampleof Threatof New Entrant– Entryof Reliance JIOTelecommunications 1. Jiohasgrownat a scorchingpace:-the network, which hasbeen adding 1- 1.2 million subscribers aday,will likely have 25 million4Gcustomers. 2. Jiohassetoff a fierce mobiletariff war in thecountry: 3. Jioishurting the balancesheetsof other telecom companies:Airtel sawa 4.9% decline in its Q2profit following the operator slashing data tariffs. 4. Jioisforcingthe other playersto join forces:-Vodafone and Idea Merger 5. Jiocouldimpact the online content market in India:-The Jiosuite offers more than 300 live streaming TVchannels and hundreds of musicalbums and movies. This forces other incumbents to up their gamein the online video streaming space.
- 67. • This force is especially threatening when buyers can easily find substitute products with attractive prices or better quality and when buyers can switch from one product or service to another with little cost. For example, to switch from coffee to tea doesn’t cost anything, unlike switching from car to bicycle. • Determining Factors:- First, if the consumer’s switching costs arelow Second,ifthe substitute product is cheaper than the industry’s product Third, if the substitute product is of equal or superior quality compared to the industry’s product, the threat ofsubstitutes is high Fourth, if the functions, attributes, or performance of the substitute product are equal or superior tothe industry’s product Threatof Substitutes
- 68. • EXAMPLE–THEAIRLINEINDUSTRY • From the point of view of airlines themselves, the flying business is very competitive. There are hundreds of airlines all trying to get abigger piece of the pie. Global recessionshave also meant cost cutting exercises for most airlines in the industryand often less travel in the part of consumers. • Depending on the nature of the airline’s business, the threat of substitutes can range from lower on the scale tomid-range. • For domestic or regional airlines or routes, there is always the option of taking a car, bus or train. It may take longer but often this consideration is outweighed by the cost advantages of substitute methods • There is also no switching cost to dealwith. • In the caseof international airlines, the threat of substitutes is almost non-existent • Onlonger routes, atraveler needs to take aflight with no possiblealternates • Threat here is from competitors who may offer better rewards, better prices ora better flying experience • There is also somewhat of aswitching cost Exampleof Threat of substitutes
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- 75. MARKET OPPORTUNITY IDENTIFICATION STEPS • IDEA GENERATION • TRANSFORMATION OF IDEAS INTO OPPORTUNITY • OPPORTUNITIES ASSESSMENT • OPPORTUNITY SELECTION Manasa N
- 76. CRITERIA TO ASSESS BUSINESS OPOORTUNITIES • INDUSTRY AND MARKET • ECONOMICS • COMPETITIVE ADVANTAGE • EXIT ISSUES • MANAGEMENT TEAM • PERSONAL CRITERIA Manasa N
- 78. Characteristics Cannot be touched, seen, tasted, heard, or smelled before purchase Intangibility Lack of trial means higher consumer risk Inseparability Variability Consumers rely on cues to draw quality inferences Perishability Marketers must try to “tangibilize the intangible” Nature of Services MANASA N
- 79. Characteristics Services are produced and consumed at the same time (air travel) Intangibility Inseparability Variability Service providers and sometimes other customers become part of the service (restaurant) Perishability Strong preferences for service providers exist Nature of Services MANASA N
- 80. Nature of Services MANASA N Characteristics Intangibility Inseparability Variability Perishability Service providers vary with respect to attitudes, skills, mood, etc. Even the same provider may give different service on a different day. Quality control is critical: – Hiring the right people – Standardizing service – Monitoring satisfaction
- 81. Nature of Services Characteristics Intangibility Inseparability Variability Perishability Services can not be inventoried or otherwise stored Capacity / demand management is critical: – Demand side strategies – Supply side strategies MANASA N
- 82. Marketing Strategies MANASA N People, physical evidence, and process must be considered in addition to the 4 “P’s” when creating external marketing plans. PRODUCT PRICE PLACE PROMOTION PEOPLE PROCESS PHYSICAL EVIDENCE
- 85. TOOLS FOR DESIGNING AND MANGING SERVICE PROCESSES • SERVICE BLUEPRINTING • QUALITY FUNCTIONAL DEPLOYMENT QFD is a type of product development where the source is the Voice of the Customer (VOC). QFD is very structured where the needs of the customers are understood and then converted into specific plans for producing the products and services for fulfilling the needs • BACK OFFICE AND FRONT OFFICE • SERVICESCAPE: PHYSICAL ENVIRONMENT Manasa N
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- 88. Green Marketing According to the American Marketing association, "Green marketing is the marketing of products that are presumed to be environmentally safe”. Advantages of Green Marketing Social responsibility Competitive Edge Cost reduction Disadvantages of Green Marketing Change lead to cost
- 89. Network Marketing Network marketing also known as multi level marketing is a business distribution model that allows a parent multi level marketing company to market their products directly to consumers by means of relationship , referral and direct selling. Network marketing is a concept of marketing products pioneered by Amway corporation( manufacturing household goods, personal care & nutritional products)
- 90. Direct Marketing Direct marketing is the process by which a firm approaches its customers on one to one basis and markets its products directly to them . According to Direct Marketing Association of USA ,”Direct marketing is an interactive system of marketing which uses one or more advertising media to affect a measurable response and /or Transaction at any location.” Method of Direct Marketing Direct selling- For e.g.Amway Tele –shopping/ Home shopping- For e.g. homeshop18 ,naaptol Direct Response marketing- for e.g. rely totally on television
- 91. Social Marketing According to Andreasen, ‘‘social marketing is the adaption of commercial marketing technologies to programmes designed to influence the voluntary behavior of target audiences to improve their personal welfare and that of the society of which they are a part.” social marketing is the systematic application of marketing along with other concepts and techniques to achieve specific behavioral goals for a social good. This may include asking people not to smoke in public area e.g. ask them to use seat belts, prompting to make them follow speed limits.
- 92. Social Media Marketing Social media marketing is a form of internet marketing that utilizes social media to achieve branding and marketing communication goals social media sites such as Face book, YouTube, Flickr, Twitter , whatsapp, etc are used to communicate information about a company and its brand and products.
- 93. Buzz Marketing Marketing buzz or simply buzz a term used in word of mouth marketing-is the interaction of consumers and users of a product or service which serves to amplify the original marketing message a vague but positive association, excitement, or anticipation about a product or services. Word of mouth marketing also called word of mouth advertising, is a unpaid form of promotion of products. Advantages cost effectiveness- Speed- Easy to set up- Disadvantages Negative buzz Customer Dissatisfaction
- 94. Viral Marketing Viral marketing is a marketing technique that uses preexisting social networking services and other technologies to produce increases in brand awareness or to achieve other marketing objectives (such as product sales or marketing buzz ) . Text messages, video clips etc. These tools are received and passed by consumers through word of mouth or social networking. Advantages Enhanced customer list Better visibility Cuts the promotional cost
- 95. E-Commerce: Marketing Ecommerce marketing is the process of driving sales by raising awareness about an online store's brand and product offerings. Digital marketing for ecommerce applies traditional marketing principles to a multichannel, data-driven environment. ADVANTAGES OF ECOMMERCE Faster buying/selling procedure, as well as easy to find products. Buying/selling 24/7. More reach to customers, there is no theoretical geographic limitations. Low operational costs and better quality of services. No need of physical company set-ups. Easy to start and manage a business.
- 96. Global Marketing Globalization means integrating the economy of a country with the global or world economy. It means economy is open to foreign direct investment by providing facilities to foreign companies to invest in different fields of Indian industry/commerce. According to Johansson, "Global marketing refers to marketing activities coordinated and integrated across multiple country markets.”
- 97. Opportunities in Global Marketing Career opportunities Investment opportunities Reaching new customers Increasing standard of living