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1、MARKETING MANAGEMENTPRESENTED ON BEHALF OF:INTERNATIONAL SCHOOL OF BUSINESS AND MEDIABY:PROF.HIMMAT G.ADISARE,CORE TEXT:MARKETING MANAGEMENTBY PHILIP KOTLER(11th Edition),INTRODUCTION TO MARKETING MANAGEMENT,Ref:Chapter 1 of Core Text,MARKETING MANAGEMENT:DEFINITIONS,1.“Marketing is the creation and
2、 delivery of a standard of living”.2.“Marketing is a managerial and societal process by which individuals and groups obtain what they need and want through creating,offering,and exchanging products and services of value with others”.,Ref:Chapter 1 of Core Text,THE SCOPE OF MARKETING,Marketers are in
3、volved with marketing ten types of entities:1.Physical Goods2.Services3.Experiences4.Events,5.Persons6.Places7.Properties8.Organizations9.Information10.Ideas,Ref:Chapter 1 of Core Text,A SIMPLE MARKETING SYSTEM,INDUSTRY(A collectionof sellers),MARKET(A collectionof buyers),COMMUNICATION,INFORMATION,
4、GOODS&SERVICES,MONEY,Ref:Chapter 1 of Core Text,STRUCTURE OF FLOWS IN A MODERN EXCHANGE ECONOMY,RESOURCEMARKETS,CONSUMERMARKETS,INTERMEDIARYMARKETS,MANUFACTURERMARKETS,GOVERNMENTMARKETS,MONEY,RESOURCES,MONEY,RESOURCES,MONEY,MONEY,GOODS&SERVICES,GOODS&SERVICES,TAXES&GOODS,SERVICES&MONEY,S&M,TAXES&GOO
5、DS,SERVICES,TAXES,S&M,T&G,MARKETING CONCEPTS-I,There are five competing concepts under which organizations conduct marketing activities:The PRODUCTION CONCEPT holds that consumers will prefer products that are widely available and inexpensive.The PRODUCT CONCEPT holds that consumers will favor those
6、 products that offer the most quality,performance,or innovative features.(continued),Ref:Chapter 1 of Core Text,MARKETING CONCEPTS-I,The SELLING CONCEPT holds that consumers and businesses,will ordinarily not buy enough of the organizations products.The organization must therefore,undertake an aggre
7、ssive selling and promotion effort.The MARKETING CONCEPT holds that the key to achieving its organizational goals consists of the company being more effective than competitors in creating,delivering,and communicating customer value to its chosen target markets.,(continued),Ref:Chapter 1 of Core Text
8、,MARKETING CONCEPTS-I,The SOCIETAL MARKETING concept holds that the organizations task is to determine the needs,wants,and interests of the target markets and to deliver the desired satisfactions more effectively than competitors in a way that preserves the consumers and societys well-being.,Ref:Cha
9、pter 1 of Core Text,MARKETING CONCEPTS-II,The Core Concepts of Marketing,Needs,Wants,Demands,Products,Value,Cost,Satisfaction,Exchanges,Transactions,Relationships,Markets,Marketing,Marketers,1,2,3,4,5,6,CUSTOMER RELATIONSHIPS,Ref:Chapter 2 of Core Text,CREATING CUSTOMER VALUE AND SATISFACTION,Custom
10、er delivered value:the difference between total customer value and total customer cost.Total customer value:the bundle of benefits customers expect from a given product or service.Total customer cost:the bundle of costs customers expect to incur in evaluating,obtaining,using,and disposing of the pro
11、duct or service.,(continued),Ref:Chapter 2 of Core Text,CREATING CUSTOMER VALUE AND SATISFACTION,Example of Customer Delivered Value:a)Buyers perception of offers worth=Rs.2,00,000=00b)Companys cost of manufacture=Rs.1,40,000=00c)Companys price=Rs.1,60,000=001.Customer Delivered Value:=Rs.40,000=002
12、.Customer Delivered Value:=1.25(as a ratio),(continued),Ref:Chapter 2 of Core Text,CREATING CUSTOMER VALUE AND SATISFACTION,Customer Satisfaction:Whether a customer is satisfied after purchase depends on the offers performance in relation to the buyers expectations.We may define it as:“Customer sati
13、sfaction or dissatisfaction is a persons feeling of pleasure or disappointment resulting from comparing a products perceived performance(or outcome)in relation to the persons expectations”.,Ref:Chapter 2 of Core Text,THE NATURE OF HIGH PERFORMANCE BUSINESSES,STAKEHOLDERS,PROCESSES,RESOURCES,ORGANIZA
14、TION,Set strategiesto satisfy keystakeholders,by improvingcritical businessprocesses,and aligningresources andorganization.,MARKET-ORIENTED STRATEGIC PLANNING,Ref:Chapter 4 of Core Text,STRATEGIC PLANNING:THE FOUR LEVELS,Most large companies consist of four organizational levels:The Corporate levelT
15、he Division levelThe Business Unit levelThe Product level,Ref:Chapter 4 of Core Text,THE STRATEGIC PLANNING,IMPLEMENTATION&CONTROL PROCESSES,PLANNING,IMPLEMENTING,CONTROLLING,CorporatePlanning,DivisionPlanning,BusinessPlanning,ProductPlanning,Organizing,Implementing,MeasuringResults,DiagnosingResult
16、s,TakingCorrectiveAction,DEFINING THE CORPORATE MISSION,Peter Druckers Classic Questions:1.What is our business?2.Who is the customer?3.What is value to the customer?4.What will our business be?5.What should our business be?,Ref:Chapter 4 of core Text,GOOD MISSION STATEMENTS,Good mission statements
17、have three major characteristics:1.They focus on limited number of goals.2.They stress the major policies and values the company wants to honor.3.They define the major competitive scopes within which the company will operate.,Ref:Chapter 4 of Core Text,COMPETITIVE SCOPES OF A COMPANY,Industry scopeP
18、roducts and applications scopeCompetence scopeMarket segment scopeVertical scopeGeographical scope,Ref:Chapter 4 of Core Text,ESTABLISHING STRATEGIC BUSINESS UNITS,Large companies normally manage different businesses,each requiring its own strategy.These are termed as Strategic Business Units(SBUs).
19、An SBU has three characteristics:It is a single business or a collection of related businesses that can be planned separately from the rest of the company.It has its own set of competitors.It has a manager who is responsible for strategic planning and profit performance and who controls most of the
20、factors affecting profit.,Ref:Chapter 4 of Core Text,ASSIGNING RESOURCES TO SBUs(THE BCG GROWTH-SHARE MATRIX),The Boston Consulting Group(BCG),a leading management consulting firm,popularized the growth-share matrix.It is divided into four cells,each indicating a different type of business.The marke
21、t-growth rate on the vertical axis indicates the annual growth rate of the market in which the business operates.The relative market share,measured on the horizontal axis,refers to the SBUs market share relative to that of the largest competitor in the segment.,Ref:Chapter 4 of Core Text,THE BCG GRO
22、WTH-SHARE MATRIX,10%,0%,20%,1x,10 x,0.1x,STARS,QUESTION MARKS,CASH COWS,DOGS,RELATIVE MKT SHARE,MKTGROWTH,THE BCG MARIX(CONTD),QUESTION MARKS:New businesses of the company in high growth-rate markets.STARS:Successful Question-mark businesses become stars that gain market share and generate profits f
23、or the company.CASH COWS:When market-growth rate slows down as competitors enter the segment,businesses that remain successful become Cash Cows.They fund Stars and new Question-mark businesses.DOGS:These are businesses in decline and the company has the option to“harvest”or“divest”.,THE MARKETING PR
24、OCESS,The Marketing Process consists of:Analyzing Marketing OpportunitiesResearching and Selecting Target MarketsDesigning Marketing OpportunitiesPlanning Marketing ProgramsOrganizing,Implementing,and Controlling the Marketing Effort,Ref:Chapter 4 of Core Text,MARKETING ENVIRONMENT&SYSTEM,Ref:Chapte
25、r 6 of Core Text,MARKETING ENVIRONMENT FACTORS,DEMOGRAPHIC ENVIRONMENTECONOMIC ENVIRONMENTNATURAL ENVIRONMENTTECHNOLOGICAL ENVIRONMENTPOLITICAL-LEGAL ENVIRONMENTSOCIAL-CULTURAL ENVIRONMENT,Ref:Chapter 6 of Core Text,DEMOGRAPHIC ENVIRONMENT,Worldwide Population GrowthPopulation Age MixEthnic MarketsE
26、ducational GroupsHousehold PatternsGeographical Shifts in PopulationShift from Mass to Micromarkets,Ref:Chapter 6 of Core Text,ECONOMIC ENVIRONMENT,Income DistributionSubsistence economiesRaw-material-exporting economiesIndustrializing economiesIndustrial economiesSavings,Debt,and Credit Availabilit
27、y,Ref:Chapter 6 of Core Text,NATURAL ENVIRONMENT,Shortage of Raw MaterialsIncreased Energy CostsIncreased Pollution LevelsChanging Role of Governments,Ref:Chapter 6 of Core Text,TECHNOLOGICAL ENVIRONMENT,Accelerating Pace of Technological ChangeUnlimited Opportunities for InnovationVarying R&D Budge
28、tsIncreased Regulation of Technological Change,Ref:Chapter 6 of Core Text,POLITICO-LEGAL ENVIRONMENT,Legislation Regulating Business:MRTP ActPCBsFDAGrowth of Special Interest Groups,Ref:Chapter 6 of Core Text,SOCIO-CULTURAL ENVIRONMENT,Persistence of Core Cultural Values:Core beliefsSecondary belief
29、sExistence of SubculturesShifts of Secondary Cultural Values Through Time,Ref:Chapter 6 of Core Text,ANALYZING CONSUMER BEHAVIOR,Ref:Chapter 7 of Core Text,ANALYZING CONSUMER BEHAVIOR,FACTORS INFLUENCING CONSUMER BEHAVIORBUYING ROLESTYPES OF BUYING BEHAVIORTHE BUYING DECISION PROCESS,Ref:Chapter 7 o
30、f Core Text,FACTORS INFLUENCING CONSUMER BEHAVIOR,CULTURAL FACTORS:Culture Sub-culture Social ClassSOCIAL FACTORS:Reference groups Family Roles&statuses,Ref:Chapter 7 of Core Text,FACTORS INFLUENCING CONSUMER BEHAVIOR(2),PERSONAL FACTORSAge and Life-Cycle StageOccupationEconomic CircumstancesLifesty
31、lePersonality&Self-concept,Ref:Chapter 7 of Core Text,FACTORS INFLUENCING CONSUMER BEHAVIOR(3),PSYCHOLOGICAL FACTORSMotivationLearningPerceptionBeliefs&Attitudes,Ref:Chapter 7 of Core Text,BUYING ROLES,INITIATOR:The first person to suggest the idea of buying.INFLUENCER:A person whose views impact th
32、e buying decision.DECIDER:The person who decides on what,when&where to buy the product or service.BUYER:The actual purchaser.USER:The person who uses/consumes the product or service.,Ref:Chapter 7 of Core Text,TYPES OF BUYING BEHAVIOR,DEGREE OF INVOLVEMENT,LOW,HIGH,DEGREE OFDIFFERENCESIN BRANDS,HIGH
33、,LOW,COMPLEXBUYINGBEHAVIOR,DISSONANCE-REDUCINGBUYINGBEHAVIOR,VARIETY-SEEKINGBUYINGBEHAVIOR,HABITUALBUYINGBEHAVIOR,TYPES OF BUYING BEHAVIOR,COMPLEX BUYING BEHAVIOR:High involvement,very expensive,infrequently purchased,very risky,self-expressive products(designer jewelry,custom-designed sports cars,h
34、ousing).DISSONANCE REDUCING BUYING BEHAVIOR:High involvement,expensive,infrequently purchased,self-expressive products(furniture,white goods,PCs).,Ref:Chapter 7 of Core Text,TYPES OF BUYING BEHAVIOR(CONTD),VARIETY SEEKING BUYING BEHAVIOR:Low involvement,frequently purchased,inexpensive products(past
35、ries,biscuits,snacks).HABITUAL BUYING BEHAVIOR:Low involvement,frequently purchased,inexpensive products(sugar,salt,flour,commodities).,Ref:Chapter 7 of Core Text,THE BUYING DECISION PROCESS,Problem/need RecognitionInformation SearchEvaluation Of AlternativesPurchase DecisionPostpurchase Behavior,Re
36、f:Chapter 7 of Core Text,PROBLEM/NEED RECOGNITION,From Internal Stimuli:HungerThirstFearFrom External Stimuli:Neighbors PurchasesAdvertisementsWindow ShoppingNewspapers&Magazines,Ref:Chapter 7 of Core Text,INFORMATION SEARCH,From Personal Sources:FamilyFriendsNeighborsAcquaintances,From Commercial S
37、ources:AdvertisementsDealersSalespersonsPackagingDisplays,Ref:Chapter 7 of Core Text,INFORMATION SEARCH(CONTD),From Commercial Sources:AdvertisementsDealersSalespersonsPackagingDisplays,Ref:Chapter 7 of Core Text,INFORMATION SEARCH(CONTD),From Public Sources:Mass MediaChambers of CommerceConsumer Ra
38、ting Magazines,From Experiential Sources:Handling the ProductExamining the ProductUsing the Product,Ref:Chapter 7 of Core Text,EVALUATION OF ALTERNATIVES,Successive Sets in Consumer Decision-Making:Total SetAwareness SetConsideration SetChoice SetBuying Decision(continued),Ref:Chapter 7 of Core Text
39、,EVALUATION OF ALTERNATIVES,TOTAL SET,AWARENESSSET,CONSIDERATIONSET,CHOICESET,BUYINGDECISION,Ref:Chapter 7 of Core Text,PURCHASE DECISION,Interfering Factors:Attitudes of Others:Opposing and intense opinions of family members,close friends and acquaintancesUnanticipated situational factors:Changes i
40、n income,job transfer,loss of employment,change of priority e.g.sudden payment of educational fees etc.,Ref:Chapter 7 of Core Text,POSTPURCHASE BEHAVIOR,Post purchase Satisfaction:Keep the ProductStore the ProductConvert to a Second UsePost purchase Dissatisfaction:Try to return the product/take leg
41、al recourseRent itGet rid of it/Throw it,Ref:Chapter 7 of Core Text,BUSINESS MARKETS VERSUS CONSUMER MARKETS,Business Markets:Fewer BuyersLarger BuyersClose Supplier-Customer RelationshipGeographically Concentrated BuyersInelastic Demand,Derived DemandProfessional PurchasingMultiple Buying Influence
42、sDirect PurchasingReciprocityLeasing,Ref:Chapter 8 of Core Text,MARKET SEGMENTATION,Ref:Chapter 10 of Core Text,MARKET SEGMENTATION:VARIABLES,Geographic SegmentationDemographic SegmentationPsychographic SegmentationBehavioral Segmentation,Ref:Chapter 10 of Core Text,SEGMENTATION VARIABLES(CONTD),Geo
43、graphic Segmentation:By NationsBy RegionsBy StatesBy CitiesBy Localities,Ref:Chapter 10 of Core Text,SEGMENTATION VARIABLES(CONTD),Demographic Segmentation:By AgeBy GenderBy IncomeBy Education LevelBy Religion/RaceBy Nationality,Ref:Chapter 10 of Core Text,SEGMENTATION VARIABLES(CONTD),Psychographic Segmentation:By PersonalityBy LifestyleBy Social Class,Ref:Chapter 10 of Core Text,SEGMENTATION VARIABLES(CONTD),Behavioral Segmentation:By Usage PatternBy OccasionBy Loyalty FactorBy Attitude Towards The Product,Ref:Chapter 10 of Core Text,THANK YOU ALL FOR YOUR PARTICIPATION IN THIS PROGRAMME,
