2024_MM 1_Introduction.pdf

MARKETING MANAGEMENT Introduction PROF. PREETI VIRDI 1 This happens when the customer finds value in the product/service PROF. PREETI VIRDI 2 DEFINING Social Process Organizational Function PRO...

MARKETING MANAGEMENT Introduction PROF. PREETI VIRDI 1 This happens when the customer finds value in the product/service PROF. PREETI VIRDI 2 DEFINING Social Process Organizational Function PROF. PREETI VIRDI 3 MARKETING – SOCIAL PROCESS Marketing is a social process by which individuals and groups obtain what they need and want through creating offering(s), and freely exchanging products and services of value with others - Kotler et al. (2013) PROF. PREETI VIRDI 4 EXCHANGE Minimum two parties involved Each party has something of value for the other Each party has capability of communication and delivery Each party is free to accept or reject the exchange offer Each party believes that it is appropriate or desirable to deal with the other party PROF. PREETI VIRDI 5 SIMPLISTIC MARKETING SYSTEM Marketplace Physical location where the buyer and seller meet, share information and transact Meta-markets Cluster of complementary goods and services that are closely related in the minds of consumers but are spread across a diverse set of industries Marketspace Online exchange environment where the buyers and sellers interact and transact PROF. PREETI VIRDI 6 VALUE Functional Emotional Experiential Benefit Cost Monetary Non-Monetary PROF. PREETI VIRDI 7 VALUE Value is the Cost-Benefit trade-off “what individuals get” versus “what they have to give”  For Facilitating Commercial Transactions  For Improving Satisfaction Customer Loyalty Retention Engagement Of late, the value exchange has evolved to: The basic transaction of swapping rich data for better experiences PROF. PREETI VIRDI 8 PERCEIVED VALUE Customer perceived value revolves around the customer’s belief that a product or service has the ability to meet their needs or expectations. Perception in the mind of the consumer Expected Benefit – Perceived Cost = Perceived Value PROF. PREETI VIRDI 9 MARKETING – ORGANIZATIONAL PROCESS Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large - American Marketing Association (2017) PROF. PREETI VIRDI 10 POEM FRAMEWORK Digital and Traditional Media Paid Media Any avenue or space that requires payment falls under this category Owned Media Everything under the ownership of the organization or brand Assets and possessions for marketing purposes Earned Media The recognition an organization or brand receives due to organic publicity and awareness PROF. PREETI VIRDI 11 SIMPLY PUT… Marketing is identifying and meeting human needs profitably through positive relationship between organization and its customers in a socially responsible manner PROF. PREETI VIRDI 12 CORE CONCEPTS PROF. PREETI VIRDI 13 NEEDS, WANTS AND DEMANDS Needs- Basic human requirements which are essential for human beings Stated Actual Unstated Delight Secret Wants- Products designed to address the needs  Wants aren’t permanent and change regularly  Influenced by personal preferences, culture, and societal influences Demands – Strong wants often backed with ability to pay PROF. PREETI VIRDI 14 WHAT IS MARKETED? ▪ Products and Services ▪ Events ▪ Experiences ▪ Persons and Ideas ▪ Places ▪ Organizations ▪ Information PROF. PREETI VIRDI 15 MARKETING CONCEPT PROF. PREETI VIRDI 16  MARKETING A way of thinking, a management CONCEPT AND philosophy guiding an organization’s ITS EVOLUTION overall activities that affect all the efforts of the organization, not just marketing activities – Dibb et al. (1997) PROF. PREETI VIRDI 17 PROF. PREETI VIRDI 18  Societal Marketing Philosophy Assumption A conflict exists between consumer short-term wants and society’s long-run interest Time Span 1970s Focus Preserve consumer and society’s well-being PROF. PREETI VIRDI 19 HOLISTIC MARKETING PHILOSOPHY Holistic marketing recognizes that “everything matters” with marketing, integrated perspective is often necessary Recognizes the breadth and interdependencies of marketing programs and processes PROF. PREETI VIRDI 20 HOLISTIC MARKETING Recognizes the breadth and interdependencies of marketing programs and processes Holistic marketing recognizes that “everything matters” with marketing, integrated perspective is often necessary. 4 components of holistic marketing are: - Relationship marketing - Integrated marketing - Internal marketing - Performance marketing PROF. PREETI VIRDI 21 HOLISTIC MARKETING – RELATIONSHIP MARKETING Aims to build mutually satisfying long- term relationships with key constituents: customers, employees, marketing partners (channels, suppliers, distributors, dealers, agencies), and members of the financial community (shareholders, investors, analysts) in order to earn and retain their business PROF. PREETI VIRDI 22 HOLISTIC MARKETING – RELATIONSHIP MARKETING Focuses on creating a marketing network for profitable business relationships ‘company and its supporting stakeholders (customers, suppliers, distributors, retailers, ad agencies, university scientists, and others)’ The operating principle is simple: “Build an effective network-of relationships with key stakeholders, and profits will follow” PROF. PREETI VIRDI 23 HOLISTIC MARKETING – INTERNAL MARKETING Internal marketing ensures that everyone in the organization embraces appropriate marketing principles PROF. PREETI VIRDI 24  HOLISTIC MARKETING – INTERNAL MARKETING Internal marketing must take place on two levels: Marketing must be Sales force, embraced by the Advertising, other departments Customer services, Marketing functions They must think Product must work together customer management, and Marketing research PROF. PREETI VIRDI 25  HOLISTIC MARKETING – PERFORMANCE MARKETING Its all about creating an accountability regarding business returns from marketing activities and programs, as well as addressing broader concerns and their legal, ethical, social, and environmental effects PROF. PREETI VIRDI 26 HOLISTIC MARKETING – PERFORMANCE MARKETING Top management is going beyond sales revenue to examine the marketing scorecard and interpret what is happening to market share, customer loss rate, customer satisfaction, product quality, and other measures. Financial Social Performance Accountability Responsibility Marketing PROF. PREETI VIRDI 27 HOLISTIC MARKETING – INTEGRATED MARKETING Different marketing activities are employed to communicate and deliver value All these need to be coordinated to maximize their joint efforts PROF. PREETI VIRDI 28 HOLISTIC MARKETING – INTEGRATED MARKETING From the seller’s point of view, the From a buyer's point of view, each four Ps represent the sellers' view marketing tool is designed to deliver of the marketing tools available a customer benefit. for influencing buyers Solution: How can I solve my problem? Information: Where can I learn more about it? Value: What is my total sacrifice to get this solution? Access: Where can I find it? PROF. PREETI VIRDI 29 PROF. PREETI VIRDI 30