Introduction to Marketing

2+2=4 But in marketing ? Never !

 What do you understand by Marketing ? The Importance of marketing :

Financial success often depends on marketing ability There must be a top line for there to be a bottom line The death of Marketing

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Marketing?
Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.

Marketing Management?
Marketing management:
choosing your value proposition target markets getting, keeping, and growing customers creating, delivering, and communicating superior (to competitors) customer value. Project will aim to give you experiential learning of these

Changing attitudes Towards Marketing

History and Development of company orientations Production Concept
Product concept Selling Concept Marketing Concept Marketing is everybodys business Integrated Marketing Consumer drives marketing ! Or the entire business ?

Holistic Marketing Dimensions

 In this course we will address the following questions:

What is the new economy like? What are the tasks of marketing? What are the major concepts and tools of marketing? What orientations do companies exhibit in the marketplace? What are the new challenges for marketing? How are companies and marketers responding to the new challenges?

Marketing Debate:
Does marketing shape consumer needs? or Does marketing merely reflect the needs and wants of consumers?

Assignment
Read Breakthrough Marketing Tata Ace, page 6 Project strategy for Tata Nano for discussion in the next class

The New Economy

Fast change - short product life cycles change due to technology, culture, etc. Substantial increase in buying power A greater variety of goods and services A greater amount of information about practically anything Greater ease in interacting, placing and receiving orders An amplified voice to influence public opinion

The New Economy

Ability to compare notes on products and services Websites can provide companies with powerful new information and sales channels. Companies can collect fuller and richer information about markets, customers, prospects and competitors. Companies can facilitate and speed up communications among employees.

The New Economy

Companies can have 2-way communication with customers and prospects Companies can send ads, coupons, samples, information to targeted customers. Companies can customize offerings and services to individual customers. The Internet can be used as a communication channel for purchasing, training, and recruiting.

The 4 major challenges faced by businesses today are:

1. Globalization 2. Advances in technology 3. Deregulation 4. Informed & demanding consumer new consumer capabilities are these opportunities or threats to businesses? Why?

Challenges are due to :

Information technology Globalization Deregulation Privatization Competition Convergence

Consumer resistance
Retail transformation

CMOs Task
Unwritten rules of Marketing
The CEO must own the marketing function. Make sure the marketing department starts small and flat and stays small and flat. Get face to face with the people who matter most the customers. Use market research cautiously* to gather meaningful customer insights Hire only passionate missionaries. Utilize new marketing technology

A quick test..

Buffy the Vampire slayer who is the typical viewer? Current Affairs documentaries who is watching?

Answers
Buffy the Vampire slayer - typical viewer?

Male - age 41

Current Affairs documentaries -who is watching? Increasingly -18 - 30

Assumptions are changing.

Marketing Task
Love and respect your customers.
Create a community of consumers.

Rethink the marketing mix .

Be true to the brand. Keep your brand promise.

Marketing Mix - Four Ps

The Scope of Marketing

Places Properties Organizations Information Ideas Goods Services Experiences Events Persons

Key Market Categories

Consumer Markets Business Markets Global Markets Nonprofit and Governmental Markets

A Simple Marketing System

Marketing Concepts and Tools

Marketers and Prospects target markets Needs, Wants, and Demands
Stated needs Real needs Unstated needs Delight needs Secret needs

Marketing Concepts and Tools

Product, Offering, and Brand Value and Satisfaction
Customer value Value = Benefits / Costs = (Functional-tangible-benefits- + Emotionalintangible benefits ) / (Monetary costs + Time costs + Energy costs + Psychic costs)

Company Orientations Toward the Marketplace

Integrated Marketing
External marketing Internal marketing

Company Orientations Toward the Marketplace

Profitability
Sales decline Slow growth Changing buying patterns Increasing competition Increasing marketing expenditures

Company Orientations Toward the Marketplace Performance Marketing

Financial Accountability Social Responsibility Marketing

Social Initiatives Corporate social marketing Cause-related marketing Corporate philanthropy Corporate community involvement Socially responsible business practices

How Business and Marketing are Changing

Company responses and adjustments
Reengineering Outsourcing E-commerce Benchmarking Alliances Partner-suppliers Market-centered Global and local Decentralized

How Business and Marketing are Changing

Marketer Responses and Adjustments
Customer relationship marketing Customer lifetime value Customer share Target marketing Customization Customer database Integrated marketing communications Channels as partners Every employee a marketer