Pom 2 2
Pom 2 2
Pom 2 2
Environment
1.Introduction to Marketing and
Marketing Management
2.Marketing in the
Contemporary World
3.Marketing Mix
4.Marketing Environment
1. Introduction to Marketing and Marketing
Management
Meaning of Marketing
Marketing is a social process . Its activities are
designed to meet the needs and expectations of the
society.
The performance of business activities that direct the
flow of goods and services from the producer to
consumer or user.
Marketing is the process of planning and executing
the conception, pricing, promotion and distribution of
ideas, goods and services to create exchanges that
satisfy individual and organizational objectives.
Philip Kotler’s definition
Marketing is a societal process by which individuals and groups
obtain what they need and want through creating, offering and
freely exchanging products and services of value with others.
This focuses on 5 aspects:-
Marketing is a societal process.
It satisfies needs and wants.
It creates satisfying products and services.
Products are exchanged for value in a transaction that provides
mutual benefits to sellers and buyers.
Exchange takes place freely without any external imposion or
compulsion.
What is Marketing
Marketing is managing profitable customer
relationships. For ex. Mc Donald’s fulfills its “I’m
lovin’ it” motto by being our customer favorite place
and way to eat”.
Construct
Understandi Capture
an Build
ng the Design a value from
integrated profitable
market place customer customer to
marketing relationship
and driven create
program and create
customers marketing profits and
that delivers customer
needs and strategy customer
superior delight
wants equity
value
1. Understanding the market place and
customer needs
Needs, wants and demands
Market offerings (Product, services and
experiences)
Value and satisfaction
Exchanges and relationships
Markets
Cont……
Needs, wants and demands
Needs:- state of felt deprivation.
Wants:- the form human needs take as they are shaped
by culture and individual personality.
Demands:- human wants that are backed up by buying
power.
Market offerings
Some combination of products, services, information, or
experiences offered to a market to satisfy a need or want.
Cont…..
Customer value and satisfaction.
Markets
The market is the set of all actual and potential buyers
of a product or service.
2.Designing a customer driven marketing
strategy
Marketing management:- the art and science of choosing target
markets and building profitable relationships with them.
high
Poten
Strangers Barnacles
tial
profit
ability
low
Short Long
term term
Projected loyalty
Company- Wide Strategic Planning: defining
marketing’s role
Company’s wide strategic planning guides the
company’s marketing strategy and planning. Like
marketing strategy the company’s broader strategy
must be customer focused.
Strategic planning:- the process of developing and
maintaining a strategic fit between the organization’s
goals and capabilities and its changing marketing
opportunities.
Steps in strategic planning
Setting Planning
Defining the Designing the
company marketing and
company business
objectives and other functional
mission portfolio
goals strategies
1. Defining the company mission
Mission statement:- a statement of the organization’s
purpose- what it wants to accomplish in the larger
environment.
Defining a market oriented mission
High low
Relative market
share
Growth Strategies
Existing Product New Product
Product development:
the firms develops new products targeted to its existing market segments.
Diversification:
the firm grows by diversifying into new businesses by developing new
products for new markets.
Backward integration
Forward integration.
Horizontal integration.
4. Planning marketing: partnering to build
customer relationships
Partnering with other company departments
Value chain:- the series of internal departments that
carry out value creating activities to design, produce,
market, deliver and support a firm’s products.
Partners with others in the marketing system
Value delivery network:- the network made up of the
company, its suppliers, its distributors, and ultimately
its customers who partner with each other to improve
the performance of the entire system.
Marketing strategy and the marketing mix
Marketing strategy:- the marketing logic by which the
company hopes to create customer value and achieve
profitable customer relationships.
Customer driven marketing strategy:- it involves-
Market segmentation
Market targeting
Differentiation
Positioning
Cont….developing an integrated marketing
mix
Marketing mix:- the set of tactical marketing tools-
product, price, place and promotion- that the firm
blends to produce the response it wants in the target
market.
4 P’s 4 C’s
Product Customer solution
Price Customer cost
Place Convenience
Promotion Communication
Product
Variety , quality, Price
design, features, List price, discounts,
brand name , allowances, credit
packaging, terms
Target customer
Promotion
Advertising, personal Place
selling, sales Channels, coverage,
promotion , public locations, inventory,
relations transportation
Managing the marketing effort
Managing the marketing process requires the 4
marketing management functions:-
1. Analysis
2. Planning
3. Implementation
4. Control.
Marketing analysis
SWOT analysis
Weaknesses
Strengths
Internal limitations
Internal capabilities
interfere with a co.
that may help a co.
ability to achieve its
reach its objectives
objectives
Threats
Opportunities
Current and emerging
External factors that
external factors that
the co. may be able to
may challenge the co.
exploit to its objectives
performance
Marketing planning
It involves choosing marketing
strategies that will help the
company attain its overall
strategic objectives.
Marketing implementation
Turning marketing
strategies and plans in to
marketing actions to
accomplish strategic
marketing objectives.
Marketing control
Measuring and evaluating the results
of marketing strategies and plans and
taking corrective action to ensure that
the objectives are achieved.
Operating control
Strategic control.
Measuring and managing return on
marketing investment
Return on marketing investment (or
marketing ROI):- the net return from a
marketing investment divided by cost
of the marketing investment.
Marketing investments
Marketing returns
Customer Goals of
Relationship Marketing
Enhancing
Retaining
Satisfying
Getting
Benefits for the firm (company) from
Relationship Marketing
Increase revenues over time due to regular customers.
Reduces marketing and administrative costs due to
saving of attracting , training and educating costs of
new customers.
Ability to maintain margins without reducing price.
Saves start up cost like advertisement, promotional cost
etc.
Reduce problems and questions inquiring handling
cost since old customer have less inquires and
problems.
Cont…..
Generate good word of mouth.
Help to retain employees since employees like to work with
satisfied customer .
If company has good relationship with customer, customer
helps, cooperates with and encourage other newer customers.
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Marketing environment in Nepal
Political: The major setback for any business in Nepal concerned with the political
aspect is the lack of strong and consistent government. For many decades the Nepal
hasn’t been able to have a strong and consistent government hence the rise in
corruption, unclear foreign policies, minimal economic development, etc affecting the
marketing ability of foreign as well as national business organizations.
Economic: Nepal, an under-developed nation, has since the past many decades not
been able to lift its economic status. Due to various factors the economic performance
of our nation has been below par. There is and increasing gap between rich and poor,
heavy dependence on remittance which will affect the performance of the economy in
the long run. The slow economic growth and increasing unemployment negatively
affects the marketing environment of Nepal.
Cont…
Social-cultural: The major portions of Nepalese population live in rural areas with
very small markets. High numbers of population are uneducated. There is an
increasing trend of domestic and international migration. Major religion being
Hindu and with joint family structure the major number of population are very
traditional in thinking which affects the marketing strategies of businesses.
Technological: Nepal is far behind in use of contemporary technologies. the level of
research and development is poor with very minimal level of technological transfer.
There is heavy dependence on manual labor and older technologies.
Legal: the major fault in Nepalese legal system is the lack of clarity in many laws,
rules and regulation. Nepal has a very poor legislative and administrative system.
Environmental: in Nepal the is very minimal attention given to the environment by
stake holders. The positive aspect to this is the emerging concepts of corporate social
responsibility in a few companies and regulatory bodies.