Professional Documents
Culture Documents
Is it about people?
[including training & development]
3/10/2012 3
Case
AV
3/10/2012
Selling Selling starts with seller & is preoccupied all the time with the needs of the seller Emphasizes on saleable surplus available with the company Seeks to convert products in to cash Views business as goods producing process Selling views the customer as the last link in the business
Marketing Marketing starts with the buyer and focuses constantly on the needs of the buyer Emphasizes on identification of market opportunity Seeks to convert customer needs in to products Views business as a customer satisfying process Marketing views the customer as the very purpose of business.
2000s
Exclusive Brand Outlets Hyper / Super Markets Department Stores Super Malls
AV1
Definitions ( contd ) :
Shopper :
Who influences the brand choice at the POP
Consumer :
The End User of the Product
Buyer :
Who finances the purchase of the Brand
Customer :
The level in the Trade Distribution Chain which is serviced directly by the Marketer categorized into Primary, Secondary, & Tertiary
3/10/2012
Shrirang Altekar
Consumer
Shopper
There is a need to recognize the Shopper and Consumer as different entities Need to understand shopper behavior & category shopping insights
Consumer to Shopper
Facts 40 % of TV advertising goes WASTE
&
Communication
Shopping
Usage
One of the last marketing mediums that consumers are willing to be marketed from An environment where they really want to touch, experience our brands, compare & contrast : does this brand meet my need ? The moment of truth for consumers to exercise their belief in our brand messageif we are relevant
3/10/2012 Shrirang Altekar Source: Marketing Contact Audit Meta-Analysis, Arc WW, 2005
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Shrirang Altekar
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3/10/2012
Shrirang Altekar
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Wanted to find a way to create news and excitement in the laundry category. Wanted to reinforce family values.
Customer Objective
Surf Excel
Surf Excel stood for modern parenting go ahead, get dirty. Sf Xl is the category leader and needed to drive excitement and news.
Shopper insights
Shopping for household staples like laundry detergent is just a part of daily life, not something to get excited about. I might try something new if it really caught my eye, but I tend to be focused on other things.
3/10/2012
Shrirang Altekar
17
The Urban Consumer Getting exposed to international lifestyles Inclined to acquiring assets (Source: NCAER)
The Top of the pyramid is growing at a faster rate 6% of the Indian HH - MHI of >Rs.10,000 (CAGR 25% over 00) 56% of HH have - MHI less than Rs. 3000 (CAGR is -3%) (Source:NRS05)
Consumer of tomorrow Youngest population profile High and Middle income population growing at a pace of over 10%* per annum over last decade (Source : NCAER)
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Shrirang Altekar
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Income Per Capita > INR 200000 > INR 40000 > INR 18000 < INR 18000
Per Annum INR (2005- 06 Prices) Source : NCAER 4% Global India 20% Seeking and Striving India 42% Aspiring India 34% Deprived India
Shrirang Altekar
19
Most FMCG companies address - Global, Seeking & Aspiring India Economic Progress Forecasts Middle - class (Part of Seeking & Striving) to grow from less than 100 million to 250 -300 million by 2015 Inclusive Economic Growth should sharply reduce Deprived India from 65% to approximately 34% in 2015 A Young, growing, large population 540 million people below 25 Years (50% of India Population)
3/10/2012
Shrirang Altekar
20
Segment
Global India
Occupation
HNI, Corp. Execs, Owners of large businesses etc BPO Executive, Shop Owner, Officer/Supervisor in Organized sector/MNC/ mid level government Clerk, small shop keepers/Shop floor Supervisor in small scale / unorganized sector/semi skilled Daily wage earners, agri labourers, construction workers
Aspiring India
Health is a concern but cost prevails Packaged tea, snacks, biscuits Cost is the only concern Unbranded products
Deprived India
17 % own a B & W TV
Eclairs
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Shrirang Altekar
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Winning at POP
Availability Visibility
Attractive Display
Change with changing times
Shopping as an experience
Groceries
Monthly shopping by residents of the middle income groups upwards
General Stores
Trial and variety seeking behavior by middle income groups upwards is predominant. Purchases of floating population
Chemists
Impulse or variety seeking behavior is predominant
(80 % situations)
Marketing Overview
The definition of Marketing used to be: human activities directed at the satisfaction of needs and wants through exchange processes (Kotler, Northwestern University) or
Performance of business activities that direct the flow of goods and services from producer to consumer (American Marketing Association)
or
the process of identifying customer needs; conceptualizing those needs in terms of an organizations capacity to produce; communicating the conceptualization to the appropriate laws of power in the organization; conceptualizing the consequent output in terms of the customer needs earlier identified; and communicating that conceptualization to the customer (Howard, Columbia University) why does it say customer and not consumer ? or
the process of creating, distributing, promoting, and pricing goods, services and ideas to facilitate satisfying exchange relationships with customers in a dynamic environment (Pride [Texas A&M] - Ferrell, [Colorado State])
or
Is this enough? Is knowing what the customer wants enough when all of your competitors know it as well? Or is success based primarily on strategies and tactics?
Marketing is War!
War belongs to the province of business competition, which is also a conflict of human interests and activities. (Karl von Clausewitz, On War)
The true nature of marketing today involves the conflict between corporations. Not the satisfying of human needs and wants!
Understand the customer and the target market Understand the competition Support the sales function Create shareholder / stakeholder value Determine what products a company can sell Providing customer value What else?
Concepts
Production Concept Product Concept Selling Concept Marketing Concept Societal Marketing Concept
Define Providing value to customers In terms of the Price/Value ratio In terms of product features In terms of product benefits V=f( c,v,t ) where v =( q,s )
The target market Price Discounts Allowances Credit terms Payment period Rental/lease List price Promotion Advertising Personal selling Sales promotion Point-of-purchase materials Publicity
Good Marketing professionals need to understand the nature, causes, and cures of marketing failures
Marketing Failures are never Single Point Most Common Marketing Errors Failure to keep products/services up-to-date Failure to estimate market potential accurately Failure to gauge the trend of the market Failure to appreciate regional differences in market potential and in trend of market Failure to appreciate seasonal differences in your customers demand
Failure to establish the advertising budget based on the job to be done Failure to adhere to policies established in connection with long-range goals Failure to test-market new ideas ( Innovation ! ) Failure to differentiate between long-term strategies and short-term tactics Failure to admit defeat
Failure to try new ideas while a brand is climbing Failure to integrate all phases of the marketing operation into the over-all program Failure to appraise objectively your competitors brands Failure to get the facts and interpret them correctly
Company sells what it can make; primary focus on functional performance and cost. Narrow.
Based on production and distribution costs.
Company makes what it can sell; primary focus on customers needs and market opportunities. Broad.
Based on perceived benefits provided.
Product line
Pricing
Research
Technical research; focus on product improvement and cost cutting in the production process.
Market research; focus on identifying new opportunities and applying new technology to satisfy customer needs.
Designed for customer convenience; a promotional tool. A customer service; a tool to attract customers. Emphasis on product benefits and ability to satisfy customers needs or solve problems.
Credit
A necessary evil; minimize bad debt losses. Emphasis on product features, quality, and price.
Promotion
Strategy
Companies often talk about their strategies. What does strategy mean? A fundamental pattern of present and planned objectives, resource deployments, and interactions of an organization with markets, competitors, and other environmental factors.
Components of Strategy
Scope Goals and objectives Resource deployments Identification of sustainable competitive advantage Synergy
Current markets
Market penetration
Product development
New markets
Market development
Diversification
Current markets
New markets
Market development strategies Expand markets for existing products Geographic expansion Target new segments
Diversification strategies Vertical integration Forward/backward integration Diversification into related businesses (concentric diversification) Diversification into unrelated businesses (conglomerate diversification)
Executive summary Current situation (SWOT) and trends Performance review (for an existing good or service only) Key issues Objectives Marketing strategy Action plans Projected profit-and-loss statement Controls Contingency plans
Strategic Planning
What is a SWOT Analysis? An assessment of the companys Strengths, Weaknesses, Opportunities, and Threats.
Threats Competition from other B-schools likely to increase for students, academics, and corporate training programs Government interference in admissions process Rapid changes in IT may make current systems obsolete In case new campuses do not perform, may affect brand value of SIBM Pune New technologies, services, ideas being utilized by other B schools Other B- school collaborations with international partners or setting up of international campuses Sustaining internal capabilities, retention of existing faculty members, Loss of key staff may happen due to shift to Lavale
Marketing Jeopardy
What are Stars, Cash Cows, Question Marks, and Dogs? The four cells in the Boston Consulting Group growth share matrix
Strategic Planning
Product Portfolio Matrix High Stars Question Marks
Cash Cows
Dogs
Environmental Analysis
Self-denial ethic Higher standard of living Traditional sex roles Accepted definition of success Traditional family life Faith in industry, institutions Live to work Hero worship Expansionism Patriotism Unparalleled growth Industrial growth Receptivity to technology
Self-fulfillment ethic Better quality of life Blurring of sex roles Individualized definition of success Alternative families Self-reliance Work to live Love of ideas Pluralism Less nationalistic Growing sense of limits Information/service growth Technology orientation
Economic Environment
GDP gap has increased between rich and poor countries Worlds economic growth continues to increase ( though rate may vary ) Developing countries are expected to have higher growth rates than developed countries
Political/Legal Environment
of Fiber-optic Cables Storage devices developed to handle the increasing volume of data Use of flexible low-cost wireless transmission Development of low-cost multimedia chip Advances in biology Progress in agriculture
Physical Environment
Depletion of valuable resources Deserts growing Forests shrinking Lakes dying Quality and quantity of groundwater declining Rise in temperature