MARKETING MANAGEMENT - I

• Marketing - Definitions & Concept

• Product Decisions
• New Product Development
• Distribution Strategy
• Product Policy & Product Strategy
• Advertising & Sales Promotion Strategy
• Communication Strategy
• Pricing Policy & Strategy
• Managing Sales Force
• Marketing Plan
Marketing Management - I
MARKETING - DEFINITION & CONCEPTS

• “Marketing Starts & Ends with the Customer”

• “Marketing is so basic that it can’t be considered
a separate function …
It is the whole business seen from the
Customer’s Point of View…”
…. Peter Drucker
• “The purpose of Marketing is
to make Selling Superfluous”
…. Peter Drucker

Marketing Management - I
 MARKETING
• Customer never buys a Product or Service but
a Problem Solution
• The motif of Marketing
In the market the important thing is not
objectively the truth but only what the
customer subjectively feels as true
• MARKETING is Satisfy Existing Demands
and Create New Demands
• “Marketing & Innovations Produce Results ;
All The Rest Are Cost”
Marketing Management - I
 SALES & MARKETING
• What is the Difference between Sales &
Marketing
Sales :
“Trying to get the Customers To Want
what the Company Produces”
Marketing :
“Trying to get the Company To Produce
what the Customer Wants”

Marketing Management - I
 SALES & MARKETING

• What is the Difference between Sales & Marketing

Sales :

Production Selling Consumer

Marketing :
Achievement
Consumer Integrated Consumer of
Need Marketing Organisation
Evaluation Effort Satisfaction
Goals
FEEDBACK
Marketing Management - I
 SALES & MARKETING

• How Marketing Evolves :

Production Sales Marketing Marketing
Era Department Company
Era
Era Era

Demand Supply Supply Supply

Exceeds Equals Exceeds Exceeds
Supply Demand Demand Demand

Integrated
Selling Marketing a Comprehensive
Output Process Subsidiary Role for
Expanded Important Function Marketing

Marketing Management - I
 THREE C’s OF MARKETING
• The Marketing Triangle :

Customer

Company Competitor

• “Satisfying the needs of the CUSTOMER

Better than the COMPETITION
and profitable to the COMPANY”

Marketing Management - I
 MARKETING CONCEPT

• “It Means An Organisation Aims All It’s Efforts At

Satisfying The Customers At Profit”

CUSTOMER
SATISFACTION PROFIT – AS
OBJECTIVE
MARKETING
CONCEPT

TOTAL COMPANY
EFFORTS
Marketing Management - I
 INTEGRATED MARKETING
• Customer should always be the FOCUS

R&D
Pu
Sales r ch
as
e
Finance

Customer

n
tio
Pr Marketing
bu
od is
t ri
uc
D

tio Human
n Resources
Marketing Management - I
 CUSTOMER ORIENTATION
• “One common factor among highly successful
companies is CUSTOMER ORIENTED CULTURE”
• In fact they almost seemed to SMELL CUSTOMER
• Our goal is not only to satisfy customer but to
delight them - Japanese Can Company
• Our Goal as a company is to have a customer
service not just the best but legendary - Wal Mart
• “Customer Satisfaction is a Long Term Strategy”
• Forget about Selling, People love to buy, but hate
to be sold

Marketing Management - I
 CUSTOMER ORIENTATION
• Only two things people want to buy :
“Good Feelings & Solution to Problem”
• Why Customers Quit ?
65% quit because of an attitude of indifference towards
the customer by company, managers, employees
• Five best ways to keep customer coming back …
– Be Reliable
– Be Creditable
– Be Attractive
– Be Responsive
– Be Emphatic
Marketing Management - I
 CUSTOMER ORIENTATION
• Customer Orientation - A Checklist
1. Letters from customers are answered before that of
HO
2. Promises to customers are almost sacred for everyone
in the company
3. Customer complaints are handled promptly with
genuine concern rather than “LEGALISTICALLY”
4. Non-Marketing people (e.g. Design, Production etc.)
visit customers periodically
5. Sales Staff feels proud of company & are treated with
genuine respect in the company

Marketing Management - I
 CUSTOMER ORIENTATION
• Customer Orientation - A Checklist
6. Very high number of Repeat Buyers and each of
them is proud to be associated with the company
7. Secretaries / Telephone Operator answer the call …
“The boss is not in today, but may I help you ?”
rather than “Please call back tomorrow.”
8. Telephone calls of Key Customers are readily &
quickly put through to the right person
9. Customer visit reports are always read by Senior
executives and acted upon promptly
10. Everyone in the department knows the Top Ten
Customers
Marketing Management - I
 CUSTOMER ORIENTATION
• A Five Point Plan
1. Know your Customer/s
2. Find Out what will …
– Satisfy them
– Please them
– Delight them
3. Critically evaluate work practices, internal rules,
systems & attitudes
4. Identify the changes needed
5. Work on people (including yourself) who can make
it happen
Marketing Management - I
 CUSTOMER ORIENTATION

UNDERSTANDING THE CUSTOMER

• Alfa & Omega Of Marketing
– Who Is The Customer?
– Why Does He Buy ?
– What Is His Opinion ?
– What Are His Problems ?
Current Customers
Lapsed Customers
Potential Customers

Marketing Management - I
 CUSTOMER ORIENTATION

COMPETITOR ORIENTATION
• Competitor could be
– Direct Competition
– Future Competition
• From which competitor are we gaining ?
• Which market are we gaining and what is the
reason for our gain in market share
• Are our competitor(s) vulnerable ?
• How can we exploit their weaknesses ?

Marketing Management - I
 CUSTOMER ORIENTATION

How can we differentiate w.r.t. Competition

• Product Superiority
• Packaging Convenience
• Better Availability
• Speed / Reliability of Delivery
• Better Technical / Purchasing Advice
• Better After-Sales Service
• Better “IMAGE”

Marketing Management - I
 CUSTOMER ORIENTATION
A. How well do we know our market ?
What do we need to know about our customers ?
• Who are they - Actual and Potential ?
• How many ?
• What do they currently buy ?
• At what Price ?
• For what purpose ?
• How often ? How much ?
• Why do they buy ?
• How do they buy ?
• How do they chose between competitors ?
Marketing Management - I
 CUSTOMER ORIENTATION
B. How well do we know our Competitors ?
What do we need to know about our competitors ?
• Who are our competitors ?
- Direct and Indirect
• What are their strengths & Weaknesses ?
• What are their current & likely future strategies ?
• What will they do ?
And How will we react ?
• What will we do ?
And how will they react ?
Marketing Management - I
 CUSTOMER ORIENTATION
C. How well do we know our Markets ?
How can we get this information ?
- Quickly & Economically
(a) From Current activities
• Sales Force visit/s
• Other Customer contact staff
• Published data
• Staff recruitment
• Sales record analysis
• Financial record analysis
Marketing Management - I
 CUSTOMER ORIENTATION

C. How well do we know our Markets ?

How can we get this information ?
- Quickly & Economically (cont…)
(b) From Market Research
Organize the research report from :
• Company staff
• Business school student
• shared surveys
• local researchers

Marketing Management - I
 CUSTOMER ORIENTATION
D. How well do we know our Markets ?
What can we do with this information ?
(a) Decide which customers to concentrate on :
• understand their needs
• provide satisfaction better than competition
(b) Decide which products to concentrate on :
• from understanding the customers and competitors better
(c) Decide how to better access & persuade customers
• By understand what information they need
• By understanding how/where do they want to buy ?
• By understanding their needs / acceptable price
Marketing Management - I
 CUSTOMER ORIENTATION
E. How well do we know our Markets ?
What can we do with this information ?
Decide how to manage our Marketing
activities better :
• Market Focus
• Product development
• Pricing policy
• Distribution strategy
• Advertising & Sales Promotion Strategy
• Sales Force
Marketing Management - I
 BASIC QUESTIONS IN MARKETING
Key Strategic Questions

Where
are we
now ?

How will
we get Where do we
there ? want to go ?

Marketing Management - I