Skip to main content
UploadLanguage (EN)Support
BusinessMobileSocial MediaMarketingTechnologyArt & PhotosCareerDesignEducationPresentations & Public SpeakingGovernment & NonprofitHealthcareInternetLawLeadership & ManagementAutomotiveEngineeringSoftwareRecruiting & HRRetailSalesServicesScienceSmall Business & EntrepreneurshipFoodEnvironmentEconomy & FinanceData & AnalyticsInvestor RelationsSportsSpiritualNews & PoliticsTravelSelf ImprovementReal EstateEntertainment & HumorHealth & MedicineDevices & HardwareLifestyle
VU
Uploaded byVinayak Uppund
PPTX, PDF482 views

Marketing for customer value module - 1

This document discusses key concepts in marketing for the 21st century. It begins by defining marketing as creating, communicating, and delivering value to customers to benefit the organization. Marketing management is choosing target markets and getting, keeping, and growing customers through superior customer value. The core concepts discussed include needs, wants, demands, target markets, positioning, offerings, value, satisfaction, and competition. The document also discusses how the modern marketplace has changed due to technology, globalization, and informed consumers. It outlines the main tasks of marketing management and tools for analysis like SWOT and competitive dynamics using Porter's five forces model.

Marketingâ—¦
Download to read offline
Defining Marketing for the 21st Century 1 Marketing Management A South Asian Perspective, 13th ed
CERTIFICATE This is to certify that Participated in the Public Speaking Competition on the VAW-2018 theme: “ERADICATECORRUPTION – BUILD A NEW INDIA” held on 31st October 2018 Jointly organized by BHEL, Electronics Division & Acharya Bangalore BSchool, Bengaluru and secured the FIRST / SECOND / THIRD / CONSOLATION PRIZE Mr./ Ms. ________________________________________________ a Student of Master of Business Administration Shri Senthil Kumar G Additional General Manager [Vigilance] BHEL, EDN, Bengaluru BHEL EDN Vigilance Awareness Week (VAW) 2018 Dr. H R Venkatesha Director – MBA Program Acharya Bangalore B School, BengaluruDated : 31st October 2018
MODULE 1 • Importance of marketing, • Core marketing concepts, • Company orientation towards market place, • Marketing management tasks, • SWOT analysis, • Competitive dynamics Assignment : Marketing strategies & plans,
What is Marketing? Marketing is an organizational function & a set of processes for Creating, Communicating & Delivering Value to customers & for managing C’mer Reln in ways that benefit the organization & its stakeholders.
What is Marketing Management? Marketing Management is The art & science of choosing target markets & getting, keeping, & growing customers Thr’ creating, delivering, & communicating Superior Customer Value.
Selling is only the tip of the iceberg “The aim of marketing is to know & understand the customer so well that the product or service fits him & sells itself. Ideally, marketing should result in a customer who is ready to buy. All that should be needed is to make the product or service available.” Peter Drucker
Copyright © 2009 Dorling Kindersley (India) Pvt. Ltd. What is Marketed? Goods Services Events & Experiences Persons Places & Properties Organizations Information Ideas
Importance of Marketing Class Discussion
• Needs, wants, & demands • Target markets, positioning, segmentation • Offerings & brands • Value & satisfaction • Marketing channels • Supply chain • Competition • Marketing environment Core Marketing Concepts
Positioning Press ads of the Scorpio focused on the functional features of the vehicle & the television ads focused on emotional benefits.
The marketplace isn’t what it used to be… Information technology Globalization Deregulation Privatization Competition Convergence Consumer resistance Retail transformation
New Consumer Capabilities • A substantial increase in buying power • A greater variety of available goods and services • A great amount of information about practically anything • More ease in interacting & placing & receiving orders • An ability to compare notes on products and services • An amplified voice to influence public opinion
Production Selling Marketing Product Company Orientation towards Market Place
Marketing Management Tasks • Develop market strategies and plans • Capture marketing insights • Connect with customers • Build strong brands • Shape market offerings • Communicate & Deliver value • Create long-term growth
SWOT Analysis
Competitive Dynamics
Threat of new entrants Profitable industries that yield high returns will attract new firms. New entrants eventually will decrease profitability for other firms in the industry. Unless the entry of new firms can be made more difficult by incumbents, abnormal profitability will fall towards zero (perfect competition), which is the minimum level of profitability required to keep an industry in business. The following factors can have an effect on how much of a threat new entrants may pose: • The existence of barriers to entry (patents, rights, etc.). The most attractive segment is one in which entry barriers are high and exit barriers are low. • Government policy & Capital requirements • Absolute cost • Economies of scale • Product differentiation • Switching costs • Expected retaliation • Access to distribution channels • Industry profitability (the more profitable the industry, the more attractive it will be to new competitors)
Threat of substitutes A substitute product uses a different technology to try to solve the same economic need. Examples of substitutes are meat, poultry, and fish; landlines and cellular telephones; airlines, automobiles, trains, and ships; beer and wine; and so on. For example, tap water is a substitute for Coke, but Pepsi is a product that uses the same technology (albeit different ingredients) to compete head-to-head with Coke, so it is not a substitute. Increased marketing for drinking tap water might "shrink the pie" for both Coke and Pepsi, whereas increased Pepsi advertising would likely "grow the pie" (increase consumption of all soft drinks), while giving Pepsi a larger market share at Coke's expense. Potential factors: • Buyer propensity to substitute • Relative price performance of substitute • Buyer's switching costs • Number of substitute products available in the market • Ease of substitution • Availability of close substitute
Bargaining power of customers : The bargaining power of customers is also described as the market of outputs: the ability of customers to put the firm under pressure, which also affects the customer's sensitivity to price changes. Firms can take measures to reduce buyer power, such as implementing a loyalty program. Buyers' power is high if buyers have many alternatives. It is low if they have few choices. Potential factors: • Buyer concentration to firm concentration ratio • Degree of dependency upon existing channels of distribution • Buyer switching costs • Buyer information availability • Availability of existing substitute products • Buyer price sensitivity • Differential advantage (uniqueness) of industry products
Bargaining power of suppliers : The bargaining power of suppliers is also described as the market of inputs. Suppliers of raw materials, components, labor, and services (such as expertise) to the firm can be a source of power over the firm when there are few substitutes. If you are making biscuits and there is only one person who sells flour, you have no alternative but to buy it from them. Suppliers may refuse to work with the firm or charge excessively high prices for unique resources. Potential factors are: • Supplier switching costs relative to firm switching costs • Degree of differentiation of inputs • Impact of inputs on cost and differentiation • Presence of substitute inputs • Strength of distribution channel • Supplier concentration to firm concentration ratio • Supplier competition: the ability to forward vertically integrate and cut out the buyer.
Industry rivalry For most industries the intensity of competitive rivalry is the major determinant of the competitiveness of the industry. Having an understanding of industry rivals is vital to successfully market a product. Positioning pertains to how the public perceives a product and distinguishes it from competitors. A business must be aware of its competitors marketing strategy and pricing and also be reactive to any changes made. Potential factors: • Sustainable competitive advantage through innovation • Competition between online and offline companies • Level of advertising expense • Powerful competitive strategy • Firm concentration ratio • Degree of transparency
Application of Model Strategy consultants occasionally use Porter's five forces framework when making a qualitative evaluation of a firm's strategic position. However, for most consultants, the framework is only a starting point. They might use value chain or another type of analysis in conjunction.
Strategy Competitive Advantage
Strategy - Competitive Advantage What is Competitive Advantage ? Definition A competitive advantage is an advantage over competitors gained by offering consumers greater value, either by means of lower prices or by providing greater benefits & service that justifies higher prices.
Competitive Strategies Based on his work of analyzing the competitive forces in an industry, Michael Porter suggested three "generic" business strategies that could be adopted in order to gain competitive advantage. The three strategies relate to the extent to which the scope of a businesses' activities are narrow versus broad and the extent to which a business seeks to differentiate its products.
Porter’s Generic Strategies • Goals indicate what a business unit wants to achieve . • STRATEGY is a game plan for getting there. • Every business must design a strategy for achieving its goals, consisting of a marketing strategy compatible technology strategy
Porter’s Generic Strategies Overall Cost Leadership Differentiation Focus He has proposed three generic strategies that provide a good starting point for strategic thinking.
The differentiation and cost leadership strategies seek competitive advantage in a broad range of market or industry segments. By contrast, the differentiation focus and cost focus strategies are are adopted in a narrow market or
Overall Cost Leadership Firms pursuing this strategy work hard to achieve the lowest production & distribution costs so they can price lower than competitors & win a large market share. They need less skill in mktg. The problem with this strategy is that other firms will usually compete
Strategy - Cost Leadership With this strategy, the objective is to become the lowest-cost producer in the industry. Many (perhaps all) market segments in the industry are supplied with the emphasis placed minimizing costs. If the achieved selling price can at least equal (or near)the average for the market, then the lowest-cost producer will (in theory) enjoy the best profits.
Strategy - Cost Leadership This strategy is usually associated with large-scale businesses offering "standard" products with relatively little differentiation that are perfectly acceptable to the majority of customers.
Strategy - Cost Leadership Occasionally, a low-cost leader will also discount its product to maximize sales, particularly if it has a significant cost advantage over the competition and, in doing so, it can further increase its market share. • Examples of Cost Leadership: Nirma Detergent Powder , Babul Tooth Tooth Paste,Tata Neno Car
Differentiation The business concentrates on uniquely achieving superior performance in an important customer benefit area valued by a large part of the market. Thus the firm seeking quality leadership , e.g. firm must make products with the best components , put them together expertly ,
Strategy - Differentiation • This strategy involves selecting one or more criteria used by buyers in a market - and then positioning the business uniquely to meet those criteria. This strategy is usually associated with charging a premium price for the product - often to reflect the higher
• Differentiation is about charging a premium price that more than covers the additional production costs, and about giving customers clear reasons to prefer the product over other, less differentiated products.
Focus The business focuses on one or more narrow market segments. The firm gets to know these segments intimately and pursues either cost leadership or differentiation within the target segment.
Strategy - Differentiation Focus • In the differentiation focus strategy, a business aims to differentiate within just one or a small number of target market segments. The special customer needs of the segment mean that there are opportunities to provide products that are clearly different from competitors who may be targeting a broader group of customers. The important issue for any business adopting this strategy is to ensure that customers really do have different needs and wants - in other words that there is a valid basis for differentiation - and that
Strategy - Cost Focus Here a business seeks a lower- cost advantage in just on or a small number of market segments. The product will be basic - perhaps a similar product to the higher-priced and featured market leader, but acceptable to sufficient consumers. Such products are