1. Mantra of Marketing
Marketing’s job is to create, communicate and deliver value to a target market
at a profit. Market Management needs to “Create Value,” “Communicate Value,”
and “Deliver Value.”
There are three businesses here: Product Management; Brand Management; and
Customer Management.
(Kotler at London Business Forum)
2. Marketing Vs. Selling
SELLING MARKETING
1 Emphasis is on the product 1 Emphasis on consumer needs wants
2 Company Manufactures the 2 Company first determines customers
product first needs and wants and then decides out
3 Management is sales how to deliver a product to satisfy these
volume oriented wants
4 Planning is short-run- 3 Management is profit oriented
oriented in terms of today’s 4 Planning is long-run-oriented in today’s
products and markets products and terms of new
5 Stresses needs of seller products, tomorrow’s markets
6 Views business as a good and future growth
producing process 5 Stresses needs and wants of buyers
6 Views business as consumer producing
process satisfying process
3. Marketing Vs. Selling
Selling Marketing
7 Emphasis on staying with 7 Emphasis on innovation on every existing
existing technology and technology and reducing every sphere, on
reducing costs providing better costs value to the
customer by adopting a superior technology
8 Different departments
work as in a highly separate 8 All departments of the business integrated
water tight compartments manner, the sole purpose being generation
of consumer satisfaction
9 Cost determines Price
9. Consumer determine price, price
determines cost
10 Selling views customer
as a last link in business
10. Marketing views the customer last link in
business as the very purpose of the business
4. Marketing Mix
Marketing Mix is the combination of four
elements, called the 4P’s (Product, Price, Promotion and
Place), that every company has the option of
adding, subtracting, or modifying in order to create a
desired marketing strategy. (Philip Kotler)
5. Marketing Mix - A mixture of several ideas and plans followed by a marketing
representative to promote a particular product or brand is called marketing mix. Several
concepts and ideas combined together to formulate final strategies helpful in making a
brand popular amongst the masses form marketing mix.
Elements of Marketing Mix
The elements of marketing mix are often called the four P’s of marketing.
• Product- Goods manufactured by organizations for the end-users are called products.
(Tangible Product and Intangible Product -Services)
• Price - The money which a buyer pays for a product is called as price of the product.
• Place - Place refers to the location where the products are available and can be sold or
purchased.
• Promotion - Advertising, Print media, Television, radio , Billboards, hoardings, banners,
Taglines , Word of mouth.
Lately three more P’s have been added to the marketing mix. They
are as follows:
• People - The individuals involved in the sale and purchase of products or services come
under people.
• Process - Process includes the various mechanisms and procedures which help the
product to finally reach its target market
• Physical Evidence - With the help of physical evidence, a marketer tries to communicate
the USP’s and benefits of a product to the end users
7. Product Mix
• Set of all product offered for sale by a
company.
• It consist of various product line.
• Any company’s product mix has four
dimension :
1. Width,
2. Length,
3. Depth,
4. Consistency.
8. Product Mix
• Width : Number of different product lines
carries by the company.
• Length : Total number of items in the product
mix of the company.
• Depth : Assortment of size, color and models
offered in each item of a product line.
• Consistency : It refers to the relationship of
various product line either in their
end use, production requirement, distribution
channel or other way.
24. Customer Life time Value
customer lifetime value (CLV), lifetime
customer value (LCV), or user lifetime
value (LTV) is a prediction of the net profit
attributed to the entire future relationship with
a customer.
25. Customer Lifetime Value
Advantages of CLV:
• management of customer relationship as an asset
• monitoring the impact of management strategies and marketing investments on
the value of customer assets
• determination of the optimal level of investments in marketing and sales activities
• encourages marketers to focus on the long-term value of customers instead of
investing resources in acquiring "cheap" customers with low total revenue value
• implementation of sensitivity analysis in order to determinate getting impact by
spending extra money on each customer.
• optimal allocation of limited resources for on going marketing activities in order to
achieve a maximum return
• a good basis for selecting customers and for decision making regarding customer
specific communication strategies
• measurement of customer loyalty (proportion of purchase, probability of purchase
and repurchase, purchase frequency and sequence etc.
