Marketing Mgt. UNIT 1.pptx

Marketing Management UNIT 1 Introduction to Marketing Sahana G Department N of BBA Marketing Meaning Marketing is the process of creating, communicating, and delivering value to customers and for managing customer relat...

Marketing Management UNIT 1 Introduction to Marketing Sahana G Department N of BBA Marketing Meaning Marketing is the process of creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders. Marketing is a exchange of goods or services for money or something of value to them. Marketing Definition According to “Philip Kotler” and AMA (American Marketing Association). Market is a PUBLIC PLACE where buyers and sellers come and meet and make their personal transaction. Marketing is a social process by which individual groups obtain what they need and want through creating offerings and freely exchange products and services of value with others. Marketing Management Marketing management is the process of planning, organizing, directing, and controlling marketing activities to achieve organizational objectives. Planning: Setting goals, developing strategies, and creating action plans. Organizing: Creating a structure and assigning responsibilities for marketing activities. Directing: Leading and motivating marketing teams to execute plans. Nature of Marketing Exchange is the essence of marketing and it is fully customer/ consumer oriented. Marketing starts and ends with customers/ consumers. 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 and it is a process, i.e., series of interrelated functions. Scope of Marketing  Study of Consumer Wants and Needs  Study of Consumer behaviour  Product Planning and development  Branding  Packaging  Channel of distribution  Pricing policies  Sales management  Promotion  Finance  After sales services Evolution of Marketing According to the Evolution of Marketing Philip Kotler, marketing has progressed through five stages since the dawn of the Industrial Revolution: Production Era: Focus on producing goods efficiently. Sales Era: Emphasis on selling and persuading customers to buy. Marketing Era: Shift to understanding customer needs and wants. Relationship Marketing Era: Building long-term relationships with customers. Digital Marketing Era: Leveraging technology to reach and engage customers. Importance of Marketing Analysing market opportunities Determination of target market Planning and decision making Creation of customer Helps in increasing profit  Core Marketing Concepts Core marketing concepts provide a framework for understanding the principles and practices of marketing. Needs, Wants, and Demands : Needs are basic requirements, wants are specific desires, and demands are wants backed by buying power. Products and Services: Products are tangible goods, while services are intangible activities or benefits. Value, Satisfaction, and Quality: Value is what customers receive in exchange for their money, satisfaction is a positive feeling about a purchase, and quality refers to the overall excellence of a  Core Marketing Concepts Exchange, Transactions & Relationship: Exchange is one of the four ways people can obtain products. a. Self production. b. Coercion. c. Begging. d. Exchange. Transactions: These are basic unit of exchange. A transaction consists of a trade of values between two parties. Dimensions of transactions - At least two things of value. Agreed upon conditions. A time of agreement. A place of agreement.  Core Marketing Concepts Markets – It consists of all potential consumers sharing a particular need or want who might be willing & able to engage in exchange to satisfy that need or want. Marketing – It means Working with markets to actualize potential exchanges for the purpose of satisfying human needs & wants. Marketer – It means someone seeking a resource from someone else & willing to offer something of value in exchange. Functions of Marketing Market Research: Gathering information about customers, competitors, and the market. Product Development: Creating new products or improving existing ones. Pricing: Setting prices that are attractive to customers and profitable for the business. Promotion: Communicating the value of products and services to customers. Distribution: Making products and services available to customers. Functions of Marketing Packaging and labelling: Packaging refers to designing of packets, wrappers and cartons etc, which are used to pack the product. Customer Relationship Management: Building and maintaining relationships with customers. Packaging and labelling: Packaging refers to designing of packets, wrappers and cartons etc, which are used to pack the product. Storage or warehousing: It is necessary to make arrangement of goods in order to maintain a regular supply of goods in the market.  Difference B/W Sales and Marketing BASIS FOR SALES MARKETING COMPARISON Meaning Sales refers to the Marketing is process of selling, understanding the whereby product is requirements of the offered for sale to the customers in such a customer at a certain way that whenever any price and at a given new product is period of time. introduced, it sells itself. Orientation Product-oriented Customer-oriented Objective To instigate shoppers in To identify the needs of such a way that they customers and create turn out as buyers. products to satisfy those needs. Target Individual or small General Public group Scope Selling of the product. Advertisement, Sales, Marketing concepts Traditional concepts 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. Traditional concepts Product Concept: holds that consumers will prefer those products that are high in quality, performance or innovative features. 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. Modern concepts 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 Modern concepts 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. The Holistic Marketing Concept is based on the development, design and implementation of marketing programs, processes and activities that 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. 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 Marketing Environment The key elements of marketing environment are as follows :- Internal Micro Macro Environment Environment Environment  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 Micro Environment – Strength & Weakness 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. Micro Environmental Factors  Suppliers  Marketing Intermediaries  Consumers  Competitors  Public  Company Macro Environment-Opportunities & Threats 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. Macro Environment factors  Demography  Economic Environment  Physical Environment or Natural Forces  Technological Factors  Social & Cultural Factors  political Factors Marketing Mix The Marketing Mix is one of two interrelated components of strategy. The Marketing Mix, more popularly referred to as the 7Ps of Marketing is a set of controllable and interrelated variables composed of product, place, price and promotions that a company assembles to satisfy a target group better than its competitor. Marketing Mix strategy is choosing and implementing the best possible course of action to attain the organization's long- term objectives and gain competitive edge. Marketing Mix – 7Ps Marketing Mix – 7Ps Product : To satisfy the needs and wants of the target market. Price: To make the product affordable to the target market and reflect the value of benefits provided. Place: To make product conveniently available to the target market consistent with their purchasing pattern. Marketing Mix – 7Ps Promotions: To build and improve consumer demand. Promotions has four components called the Promotions Mix as follows: Advertising - to effectively inform and persuade the target market Public Relations – to offer a positive image of the company and the brand Selling to get the customers buy Sales Promotions - to convince customers to buy immediately Marketing Mix – 7Ps People : They are the target consumers of the company. They are the ones who are the consumers. Physical Appearance : Physical appearance is the first distinction of a product. A product could be easily recognised by its appearance. Process: The process of the product is essential in marketing. This determines the capability of the product to supply the demand of the consumers. Recent trends Ethical marketing Ethical marketing refers to the application of marketing ethics into the marketing process. Marketing ethics has the potential to benefit society as a whole, both in the short- and long-term. Study of Ethical marketing should be included in applied ethics and involves examination of whether or not an honest and factual representation. Recent trends Typical Ethical issues related to the Marketing Mix: Product Issue: Covering up defects in products that could cause harm to a consumer; withholding critical performance information that could affect a purchase decision. Distribution Issue: Counterfeit products are widespread, especially in the areas of computer software, clothing, and audio and video products. Promotion Issue: Deceptive advertising or withholding important product information in a personal selling situation. Pricing Issue: Indicating that an advertised sale price is a reduction below the regular list price when in fact that is not the case. Recent trends Advantages  Enhance Business Reputation  Positive Work Environment  Improves Customer Happiness  Retain Good Employees  Builds Investor Loyalty  Avoid legal Problems Recent trends Disadvantages  Reduce Profits  Time Consuming  Not Ideal for Small Business  Instability Recent trends E-business E-business encompasses all online business activities, including buying, selling, customer service, and operations. In order to develop a successful e-business model understanding the customer needs in the light of the new environment is very essential. Electronic business, commonly referred to as “e-business”, or an internet business is generally referred as buying and selling of goods or services through Recent trends ADVANTAGES OF E-BUSINESS: All time processing Better service Removing mediators Time saving Enhanced speed and accuracy of a product Cost saving of the product Reduces paper work Fast dissipation of information o Global reach Recent trends DISADVANTAGES OF E- BUSINESS: Lack of customer awareness Small Businessmen do not want to take any extra burden Legal formalities It is not free Security problems Customer satisfaction problems Data integrity problems Recent trends M – Business: M – Business is “ the application infrastructure required to maintain business relationships and sell information, services and commodities by means of the mobile devices. Recent trends Advantages of Mobile Business/Commerce: 1.Cover wild distance: Mobile is the only technology which is now become necessary for any person in social and business life than computers. 2.Consumer deals: As more users use M-Commerce, there are lots of companies use M-Commerce site to reach them by giving different and better deals in comparison of their competitor. 3.Savings: Companies try to reach to the consumer directly through M-Commerce, so users have no need to go far to the store physically and at the end it saves user's time and Recent trends Relationship marketing Relationship marketing is an integrated effort to identify, maintain and build a network with individual customers and to continuously strengthen the network for the benefit of both the sides. Relationship marketing includes a set of activities and strategies aimed at developing customer loyalty, interaction, managing trust and long-term engagement with all the stake Recent trends Relationship marketing is important because: Customer Acquisition: Attracting and converting new customers through effective marketing strategies. Customer Retention: Building strong relationships to encourage customer loyalty and repeat business Customer Advocacy: Turning satisfied customers into brand ambassadors who recommend products or services. Recent trends Benefits of Relationship Marketing: Long-term customers tend to be less inclined to switch, and also tend to be less price sensitive. Long-term customers may initiate free word of mouth promotions and referrals. Long-term customers are more likely to purchase related products from you. Regular customers tend to be less expensive to service and tend to be consistent in their purchase habits. Increased customer loyalty makes employees' jobs easier and more satisfying. Recent trends Disadvantages of relationship marketing Relatively low value products or services Consumer products Generic commodities Switching costs are low Clients prefer a single transaction to relationships No/low customers involvement in production Recent trends Event marketing Event marketing describes the process of developing a themed exhibit, display, or presentation to promote a product, service, cause, or organization leveraging in-person engagement. Events can occur online or offline, and can be participated in, hosted, or sponsored. Designing or developing a 'live' themed activity, occasion, display, or exhibit (such as a sporting event, music festival, fair, or concert) to promote a Recent trends Advantage of Event Marketing Minimizes clutter in advertising media. Helps companies respond to consumers' changing media habits. Sponsorships help companies gain approval of its stakeholders. Enhance brand equity and image, increase consumer awareness. Better chances of tapping target market of specific segments, regions or lifestyles. Recent trends Dis-Advantage of Event Marketing Cost of big events Advertising clutter at events Ambush marketing Effectiveness hard to measure Recent trends Emotional marketing Emotional marketing refers to marketing messages and campaigns that primarily use emotion to make a business’s target market aware of the business and influence the target market to buy, remember and share the business and its offerings. Recent trends The stronger the experience of emotion the more likely it is people will react to your message: Emotion can be triggered with: Powerful copy Effective visuals Persuasive videos Compelling offers Engaging stories Riveting audio Fun events Recent trends Buzz Marketing It is the practice of creating a talk around a product, service, company or brand. For example: You might recruit volunteers preferably proactive consumers who are center of influence among their peer to try products and then send them out of talk about their experience. It reaches more people, faster than advertising, direct mail or even the Recent trends What do People 'talk' or 'buzz' about? Exciting Products (like movies, destinations that offer exciting experiences.) Innovative Products (lie Web Browsers) Personal Experience Products (hotels, airlines) Complex Products (in order to reduce risk people, talk about products they do not understand like software, medical devices. Expensive products (a very expensive vacation package will make potential buyers ask about what it offers and how good it is since it requires a big investment by the buyer.) Observable Products (people discuss things they see in others like cloths, cars) Recent trends Benefits of Buzz Marketing: Cost-effective buzz campaigns Improved audience engagement Enhanced customer reach Faster sales and improved ROI Recent trends Green marketing Green marketing also referred as eco- marketing or environmental marketing, it is the practice of promoting a company's products to demonstrate their sustainability. Companies might design sustainable packaging, create products that reduce the consumer's carbon footprint or use eco- friendly procedures during the distribution Recent trends Features of Green Marketing :- Green marketing helps to produce eco- friendly products. Green products focuses on wastage minimization and proper resource planning. Green marketing helps in sustainability of environment. Green marketing is also contributing for reduction of various green house gases in the environment. Recent trends Green Products are: Products which are recyclable, reusable and biodegradable in nature. Products with natural ingredients. Products containing recycled contents, non toxic chemical. Products contents under approved chemical. Products that do not harm or pollute the environment. Products that will not be tested on animals Recent trends Benefits of green marketing Appeals to a new market: By using green marketing strategies, companies can attract different demographics. Increases profitability and brand loyalty: Companies that are the first in their sector to offer a green product or service benefit enormously from green marketing. Helps the environment: Not only does true green marketing allow companies to garner more profit and Recent trends Challenges of Green marketing Green products require renewable and recyclable material, which is costly Requires a technology, which requires huge investment in R & D Water treatment technology, which is too costly Majority of the people are not aware of green products and their uses. Majority of the consumers are not willing to pay a premium for green products. Recent trends Viral marketing Viral marketing is a style of promotion that relies on an audience to organically generate and push the message of a product or service. On social media, marketing is considered “viral” when it’s being shared rapidly by the public at large (with a compounding effect) rather than just its target audience. Recent trends Goal of Viral Marketing: Increase Sales Customer acquisition Customer Satisfaction Customer Loyalty Increase Traffic of Website Increase Brand Awareness Realistic Set Time Frame Recent trends Advantage of Viral Marketing  Inexpensive compared to other advertising methods.  Immediate visitors.  Causes exponential growth- reaches a large audience.  Automate your marketing methods - set it up once and forget about it.  High Credibility.  Increase targeted traffic to your web site.  High efficiency. Recent trends Disadvantage of Viral Marketing  Spam threats - If made badly, viral marketing can guide to significant spam issues.  Brand dilution - Not all products or services are viral. One needs to verify first if the product or service falls into this criteria.  Association with unknown groups - During this process, it may reach someone you would rather not be associated with your campaign. Recent trends E-mail Campaign Tool Social Networking Websites used in Online Broadcast Viral Message Campaign Marketi Online Quizzes ng Video and audio clips Share option button in campaign Recent trends Virtual marketing Virtual marketing is the promotion of products or services using digital technologies and telecommunications. It is mainly on the internet but may also be through smartphones, display advertising, and any other digital marketing medium. It extends beyond the internet to include channels that do not require the use of internet-connected devices. Recent trends Benefits of virtual marketing: Increased Reach Cost-effective Personalized Interactive Recent trends Digital marketing Digital marketing, or online marketing, refers to marketing activities targeting consumers using digital channels. It includes all online marketing tactics implemented through digital channels to achieve business and marketing goals. One big advantage of online marketing over traditional marketing is the ability to gather and analyze data in real-time. Recent trends Recent trends Advantages of Online / Digital Marketing: Advertisement on the internet is cheaper than (Low cost) the print advertisement. It helps in spreading the business worldwide, with no geographical barriers, making it accessible from one country to another via Internet. It is a 24X7 (365 days) open store where people are welcome to shop anytime from anywhere. Internet makes the product reach much more easy; while researching or getting accurate information on a product. It also helps in creating credibility and gain trust and Recent trends Disadvantages of Online/ Digital Marketing: Easier to have outdated information on internet, update timing is a critical issue here. Many web visitors expect something for free. There is a lot of competition in the market and by the time visitor reaches the product they have already gone through many links and got the required product. There are many pros and cons of internet marketing. Its important to consider each when creating internet marketing THANK YOU