Marketing Management Introduction.pptx
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The document provides an extensive overview of marketing management, defining key concepts such as marketing, market, needs, wants, and the importance of creating exchanges that satisfy customer and organizational goals. It explores various aspects of marketing including market segmentation, targeting, positioning, and factors influencing consumer behavior, highlighting the significance of understanding customer needs and preferences for effective marketing strategies. Additionally, it discusses different marketing concepts, objectives, and the contemporary shift towards relationship marketing and digital strategies.
Marketing Management Introduction.pptx
- 2. DEFINITION • According to Philip Kotler, “Marketing Management is the process of planning and executing the conception, pricing and promotion and distribution of goods, services and ideas to create exchanges with target groups that satisfy customer and organizational objectives.”
- 3. • According to American Marketing Association, “ Marketing Management is process of Planning and executing the conception, pricing, promotion, and distribution of goods, ideas and services to create exchanges that satisfy individual and organizational objectives.” Definition
- 4. MARKET VS MARKETING • A market is where buyers and sellers come together and exchange their products for money. • It can be in the streets, on the internet, in shops around the world, etc… Customers and sellers exchange both goods and services for money.
- 5. MARKET VS MARKETING • Marketing is the management process which identifies consumer wants, predict future wants, create wants and find ways to use these wants to the fullest (most (most profitably). In other words, businesses try to satisfy wants in the most profitable way possible. Marketing covers a wide range of activities such as: advertising, packaging, promotion, etc…
- 6. OBJECTIVES OF MARKETING MANAGEMENT • Creating New Customers. • Satisfying the Needs of Customers. • Enhancing the Profitability of Business. • Raising the standards of living People. • Determining the Marketing Mix. • To develop new products or improve existing ones
- 7. CORE CONCEPT
- 8. CORE CONCEPT NEED/WANT/DEMAND • Needs are physiological in nature. People require food, shelter, clothing, esteem, belonging, and likewise. • Wants are the options to satisfy a specific need. • Demand is the want for specific products that are backed by the ability and willingness (may be readiness) to buy them.
- 9. CORE CONCEPT PRODUCT/SERVICES • Product includes core product (basic contents or utility), product-related features (colour, branding, packaging, labeling, varieties, etc.), and product-related services (after-sales services, guarantee and warrantee, free home delivery, free repairing, and so on). • Services are intangible in nature
- 10. CORE CONCEPT VALUE/COST/SATISFACTION • Value means overall capacity of product to satisfy need and want. It is a guiding concept to choose the product. • Cost means the price of product. It is an economic value of product. • Satisfaction means fulfillment of needs. Satisfaction is possible when buyer perceives that product has more value compared to the cost paid for.
- 11. CORE CONCEPT EXCHANGE/TRANSACTION/TRANSFER • Exchange is in the center of marketing. Marketing management tries to arrive at the desired exchange. • When an agreement is reached, it is transaction. Transaction is the decision arrived or commitment made. • Transfer involves obtaining something without any offer or offering anything without any return.
- 12. CORE CONCEPT RELATIONSHIP/NETWORKING • Relationship marketing is the practice of building long-term profitable or satisfying relations with key parties like customers, suppliers, distributors, and others in order to retain their long-term preference in business. • Marketing network consists of the company and its supporting stakeholders – customers, employees, suppliers, distributors, advertising agencies, colleges and universities, and others
- 13. NATURE OF MARKETING: • Customer-oriented: Marketing is focused on understanding and meeting customer needs and wants. • Process-oriented: It involves a series of interconnected processes that span from product development to customer service. • Data-driven: Marketing decisions are based on data and insights from market research and analytics. • Holistic: Marketing involves all aspects of the business, including product design, pricing, promotion, and distribution. • Strategic: Marketing involves setting long-term goals and developing plans to achieve them.
- 14. SCOPE OF MARKETING • Market research: Understanding customer needs and preferences, identifying market opportunities, and assessing competition. • Product development: Creating products or services that meet customer needs and wants. • Pricing: Setting prices that are attractive to customers and profitable for the business. • Promotion: Communicating with customers to create awareness, interest, and desire for the product or service. • Distribution: Delivering the product or service to customers through various channels.
- 15. IMPORTANCE OF MARKETING • Customer acquisition: Marketing helps to attract and retain customers by creating awareness, interest, and desire for the product or service. • Brand building: Marketing helps to build brand identity and reputation through consistent messaging and communication. • Revenue generation: Marketing helps to generate revenue by creating demand for the product or service and setting profitable prices. • Market research: Marketing provides insights into customer needs, wants, and preferences, which can help to inform product development and other business decisions. • Competitive advantage: Marketing helps businesses to differentiate themselves from competitors by offering unique value propositions to customers.
- 17. RECENT TRENDS IN MARKETING • Relationship Marketing • Business/Industrial Marketing • Societal Marketing • Global Thinking and Local Market Planning • Emphasis on Direct and Online Marketing • Services Marketing
- 18. MARKETING CONCEPTS • The Production Concept • The Product Concept • The Selling Concept • The Marketing Concept • The Societal Marketing Concept
- 19. PRODUCTION CONCEPT • oldest of the concepts in business • consumers will prefer products that are widely available and inexpensive • concept concentrate on achieving high production efficiency, low costs, and mass distribution
- 20. THE PRODUCT CONCEPT • consumers will favor those products that offer the most quality, performance, or innovative features • superior products and improving them over time • assume that buyers admire well-made products and can appraise quality and performance
- 21. SELLING CONCEPT • aggressive selling and promotion effort • aim is to sell what they make rather than make what the market wants.
- 22. THE MARKETING CONCEPT • The Marketing Concept focuses on the needs of the buyer. • The Marketing Concept is preoccupied with the idea of satisfying the needs of the customer by means of the product as a solution to the customer’s problem (needs).
- 23. SOCIETAL MARKETING CONCEPT • determine the needs, wants, and interests of target markets and to deliver the desired satisfactions more effectively and efficiently than competitors (this is the original Marketing Concept) • Additionally, it holds that this all must be done in a way that preserves or enhances the consumer’s and the society’s well-being.
- 25. UNIT II: MARKET SEGMENTATION • Market Segmentation is the sub dividing of customers into homogenous sub set of customers where any sub set may be selected as market target to be reached with distinct marketing mix. -Kotler • The process of defining and subdividing a large homogenous market into clearly identifiable segments having similar needs, wants or demand is called Segmentation
- 26. NEED FOR SEGMENTATION • To develop Marketing Activities • Increase market effectiveness • Greater customer satisfaction • Create savings • To overcome competition effectively
- 27. BASIS OF MARKET SEGMENTATION Segmenting Consumer Markets • Geographic • Demographic • Psychographic • Behavioral
- 28. GEOGRAPHIC Geographic segmentation divides the market into different geographical units such as • nations, • regions, • states, • counties, or cities
- 29. DEMOGRAPHIC Demographic segmentation divides the market into groups based on variables such as – age, gender – family size – family life cycle, – income, – occupation, – education, – religion, – race, – generation, and
- 30. PSYCHOGRAPHIC • Psychographic segmentation divides buyers into different groups based on –social class, –lifestyle, –personality traits
- 31. BEHAVIORAL SEGMENTATION Behavioral segmentation divides buyers into groups based on their knowledge, attitudes, uses, or responses to a product • Occasion • Benefits sought • User status • Usage rate • Loyalty status
- 32. SEGMENTATION EXAMPLES Type of Firm Segmentation Base Possible market segments Banking Demographic segmentation Young couples, young families, older families, pre- retirement, retired Mobile phone carriers Benefit segmentation Highly social, work- oriented, safety contact, status symbol Toothpaste Benefit segmentation Teeth whitening, sensitive teeth, fresh breath, cavity protection, tartar control Restaurant Behavioral segmentation Regulars, special occasion, business
- 33. BENEFITS OF SEGMENTATION 1. Facilitates the right choice of Target market: It helps the marketer to identify potential buyers and pickup their target market effectively. 2. Facilitates effective tapping of the Chosen market segment: It helps to know and analyse the demands of each customer group and make offers that match them.
- 34. Toyota India
- 35. 3. Helps identify less satisfied segments and concentrate on them: 4. Helps to concentrate efforts on most productive and profitable market segment instead of frittering over irrevelant, unproductive /unprofitable segment. ● Segmentation also helps the marketers to know the segment still waiting to be served and grabs them as a unique opportunity.
- 36. 5. FOCUS OF THE COMPANY ● Segmentation is an effective method to increase the focus of a firm on market segments. ● This helps a company in changing its focus for better returns. ● Thus companies base their strategy completely on a new segment which increases its focus and profitability. e.g. Automobile companies have started focusing on small car segments.
- 37. 6.CUSTOMER RETENTION Segmentation ensures customer retention. e.g. Titan watches. ● A watch is available for any customer who enters a Titan showroom, whatever be his age, budget. ● from fast track to Sonata and the high end watches(EDGE,HTSE,PURPLE,etc) Titan has them by price segment as well as life cycle segment.
- 38. 7. MARKET EXPANSION ● Segmentation plays a crucial role in expansion. ● One cannot expand in a territory without any idea of which segment of customers one will be dealing with. ● e.g Reebok targets fitness enthusiasts, it has expanded into clothes and accessories from being a shoe manufacturer.
- 39. 8. INCREASE PROFITABILITY ● It affects the profitability of the firm. e.g. Nike, BMW showrooms. ● One of the USP’s of these brands is their segmentation. i.e they target segments which donot bargain or negotiate.Thus their profitability is high. 9. BETTER COMMUNICATION ● Communication cannot be possible without knowing target market. ● By limiting the audience, one can choose magazines, websites, radio and TV stations, events that those customers are more likely to hear, see, visit or attend. ● This makes the marketing effort more economic and efficient.
- 41. TARGETING • Targeting is the second stage of the SEGMENT "Target" POSITION(STP) process. After the market has been separated into its segments, the marketer will select a segment or series of segments and ‘target’ it/them. Resources and effort will be targeted at the segment.
- 42. MARKET TARGETING • Criteria Size: The market must be large enough to justify segmenting. If the market is small, it may make it smaller. • Difference: Measurable differences must exist between segments. • Money: Anticipated profits must exceed the costs of additional marketing plans and other changes. • Accessible: Each segment must be accessible to your team and the segment must be able to receive your marketing messages • Focus on different benefits: Different segments must need different benefits.
- 43. SINGLE SEGMENT SINGLE PRODUCT
- 44. ONE PRODUCT ALL SEGMENT
- 45. MULTI PRODUCTS MULTI SEGMENT
- 46. TARGET MARKET STRATEGIES • Single Segment Strategy • Selective Specialization • Product Specialization • Market Specialization • Full Market Coverage
- 47. UNDIFFERENTIATED, CONCENTRATED, DIFFRENTIATED Strategy Description Example Undifferentiated Sending the same promotional message to everyone Promoting the city as a historic destination by placing ads in widely read newspapers Concentrated Designing a promotional message that communicates the benefits desired by a single specific segment Promoting the city as historic by targeting elderly members of historical societies by placing ads in their newsletters Differentiated Designing more than one promotional message, with each communicating different benefits Also targeting families by communicating a promotional message about the importance of children learning history
- 48. POSITIONING – The place the product occupies in consumers’ minds relative to competing products. – Typically defined by consumers on the basis of important attributes. – Involves implanting the brand’s unique benefits and differentiation in the customer’s mind. – Positioning maps that plot perceptions of brands are commonly used.
- 49. POSITIONING EXAMPLE • eBay’s positioning: No matter what “it” is, you can find “it” on eBay!
- 50. POSITIONING EXAMPLE • To (target segment and need) our (brand) is a (concept) that (point- of-difference). • “To busy mobile professionals who need to always be in the loop, Blackberry is a wireless connectivity solution that allows you to stay connected to people and resources while on the go more easily and reliably than the competing technologies.”
- 51. Identifying possible competitive advantages Choosing the right competitive advantage Choosing a positioning strategy Differentiation can be based on Products Services Channels People Image Topics Choosing a Positioning Strategy
- 52. Choosing a Positioning Strategy • How many differences to promote? Unique selling proposition Several benefits • Which differences to promote? Criteria include: Important Distinctive Superior Communicable Preemptive Affordable Profitable Topics Identifying possible competitive advantages Choosing the right competitive advantage Choosing a positioning strategy
- 53. Choosing a Positioning Strategy • Value propositions represent the full positioning of the brand • Possible value propositions: More for More More for the Same More for Less The Same for Less Less for Much Less Topics Identifying possible competitive advantages Choosing the right competitive advantage Choosing a positioning strategy
- 54. CONSUMER MARKETS • Mass Market: This refers to a large and diverse consumer market where products and services are aimed at a broad customer base. Mass market products are typically designed to appeal to a wide range of consumers and are not specifically tailored to individual segments. • Niche Market: Niche markets are smaller, specialized segments within the broader consumer market. These markets cater to specific customer needs, preferences, or interests that may not be adequately served by mass market offerings. Niche markets often provide opportunities for businesses to target a specific group of consumers with with unique products or services.
- 55. CONSUMER MARKETS • Ethnic Market: Ethnic markets are consumer segments composed of specific ethnic or cultural groups. These groups have distinct preferences, buying behaviors, and consumption patterns influenced by their cultural heritage. Businesses may develop marketing strategies tailored to meet the needs and preferences of these ethnic market market segments. • Generational Market: Generational markets focus on consumer segments defined by specific generations, such as Baby Boomers, Generation X, Millennials, and Generation Z. Each generation has its unique characteristics, values, and consumption patterns, which influence their purchasing decisions. Understanding generational differences can can help businesses customize their marketing messages and product offerings accordingly.
- 56. CONSUMER MARKETS • Luxury Market: The luxury market caters to affluent consumers seeking high-end and exclusive products and services. Luxury consumers prioritize quality, exclusivity, and the the overall experience associated with luxury brands. This market segment requires specialized marketing strategies to create a perception of luxury and maintain a premium brand image. • Online Market: With the rise of e-commerce, online consumer markets have gained prominence. These markets consist of consumers who prefer to purchase products and services online. The online market allows businesses to target customers through various digital channels and leverage technologies to enhance the online shopping experience.
- 57. CONSUMER MARKETS AND BUYING BEHAVIOR • Factors Influencing Buying Behavior • a. Personal Factors: These include individual characteristics such as age, occupation, lifestyle, and personality traits that shape consumer preferences. • b. Psychological Factors: Psychological factors include perception, motivation, learning, and attitudes, which influence how consumers perceive and respond to marketing stimuli. • c. Social Factors: Social factors encompass family, reference groups, social roles, and social class, which impact consumers' purchasing decisions through social influence, norms, and values. • d. Cultural Factors: Cultural factors involve cultural values, beliefs, customs, and traditions that shape consumers' preferences and behavior.
- 58. CONSUMER MARKETS AND BUYING BEHAVIOR Decision-Making Process: The consumer decision-making process typically involves several stages: • a. Need Recognition: Consumers recognize a need or want for a particular product or service. • b. Information Search: Consumers gather information about potential solutions, which may involve internal (memory, past experiences) and external (advertisements, reviews) sources. • c. Evaluation of Alternatives: Consumers assess different options based on criteria such as price, quality, features, and brand reputation. • d. Purchase Decision: The consumer decides to make a purchase and selects a specific product or service. • e. Post-Purchase Evaluation: After the purchase, consumers evaluate their satisfaction
- 59. CONSUMER MARKETS AND BUYING BEHAVIOR • Buying Patterns: Consumers exhibit various buying patterns, including routine purchases, impulse buying, limited decision-making, and extensive decision-making. These patterns depend on factors such as product involvement, perceived risk, and the level of consumer knowledge. • Consumer Trends: Consumer behavior is also influenced by broader trends such as technological advancements, sustainability, health and wellness, convenience, and personalization. Businesses need to stay updated on emerging trends to adapt their marketing strategies accordingly.
- 60. FACTORS AFFECTING CONSUMER BEHAVIOUR • Personal Factors: – Demographics: Age, gender, income, occupation, education, and family life cycle all play a role in shaping consumer behavior. For example, different age groups may have distinct preferences and buying habits. – Personality and Lifestyle: Consumers with different personality traits and lifestyles may have varying preferences and behaviors. Some individuals may be more adventurous and willing to try new products, while others may be more conservative and brand loyal.
- 61. FACTORS AFFECTING CONSUMER BEHAVIOUR Psychological Factors: – Perception: How consumers perceive and interpret information and stimuli can impact their buying decisions. Perception is influenced by personal experiences, needs, and expectations. – Motivation: Consumers are driven by needs and desires. Understanding consumer motivations, such as the need for status, achievement, or convenience, helps businesses tailor their marketing strategies. – Learning and Attitudes: Consumer behavior is shaped by past experiences and acquired knowledge. Attitudes, beliefs, and values influence the evaluation of products and brands.
- 62. FACTORS AFFECTING CONSUMER BEHAVIOUR • Social Factors: – Reference Groups: Consumers are influenced by reference groups, such as family, friends, colleagues, and social communities. These groups provide social norms, opinions, and recommendations that influence consumer decisions. – Social Class: Social class affects consumers' preferences, buying patterns, and aspirations. It can influence the types of products and brands consumers choose to associate with. – Culture and Subculture: Cultural factors, including values, beliefs, customs, and traditions, have a significant impact on consumer behavior. Subcultures, such as religious or ethnic groups, can also influence consumer preferences.
- 63. FACTORS AFFECTING CONSUMER BEHAVIOUR • Situational Factors: – Purchase Context: The circumstances surrounding the purchase, such as the time, place, and occasion, can influence consumer behavior. For example, impulse buying may be more likely in certain situations. – Purchase Purpose: The intended use or purpose of the product can affect consumer decision-making. Consumers may have different buying criteria for products used for personal use versus gifts.
- 64. TYPES OF BUYING DECISION BEHAVIOUR Routine Response Behavior: • Low involvement and low complexity. • Consumers engage in habitual buying behavior and make quick, routine purchases without much thought or research. • The decision is typically based on familiarity, convenience, and minimal evaluation of alternatives. • Examples include buying everyday grocery items, toiletries, or routine household products.
- 65. TYPES OF BUYING DECISION BEHAVIOUR Limited Decision Making: • Moderate involvement and moderate complexity. • Consumers engage in limited information search and evaluation of alternatives before making a purchase decision. • The decision-making process involves considering a few options based on specific criteria or preferences. • Examples include purchasing clothing, electronics, or household appliances, where consumers may compare prices, features, and brands before making a choice.
- 66. TYPES OF BUYING DECISION BEHAVIOUR Extensive Decision Making: • High involvement and high complexity. • Consumers invest significant effort and time in information search, evaluation of alternatives, and careful consideration before making a purchase decision. • The decision-making process involves extensive research, comparing multiple options, and weighing various attributes and factors. • Examples include buying a car, a house, or expensive electronics, where consumers consider multiple aspects such as price, quality, functionality, and brand reputation.
- 67. TYPES OF BUYING DECISION BEHAVIOUR Impulse Buying: • Spontaneous and unplanned purchases. • Consumers make impulsive buying decisions without much deliberation or conscious decision-making. • The decision is triggered by immediate emotional or situational factors, such as sales promotions, appealing displays, or sudden desires. • Examples include purchasing snacks, small accessories, or items displayed at the checkout counter.