Marketing definition and core concepts that how marketing affects the business and what are the channels of different Marketing. This presentation gives you he detailed information about 4 P's of Marketing Mix with Product development life cycle and Product Policy. It also shows strategies of Marketing with interactive examples. This will definitely help you to lead to keen interest in Marketing.

1. Marketing
Management

2. Marketing Management
• After this presentation you will
understand:
• Concept of Marketing Management
• Marketing Mix
• Product Policy
• New Product Development
• Product Life Cycle
• Channels of Distribution

3. Market=?
• Market means that customers who
have purchased or want to purchase a
certain product or service.
• Market = population+ Purchasing
Power + Purchasing Need

4. Market=?
• Consumer Market
• Business Market
• Global Market
• Nonprofit and Government Markets

5. Marketing=?
• Selling?
• Advertising?
• Promotions?
• Making products available in stores?
• Maintaining inventories?
Yes! All of the above, plus much
more!

6. Marketing=?
• 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.
- Philip Kotler

7. Marketing=? & Marketing
Management=?
• Is the process of planning and executing
the conception, pricing, promotion, and
distribution of ideas, goods, services to
create exchanges that satisfy individual
and organizational goals.
• Marketing management is the art and
science of choosing target markets and
getting, keeping, and growing customers
through creating, delivering, and
communicating superior customer value.

8. The Marketing Process
A Five-Step Process
1. Understand the marketplace and
customer needs and wants
2. Design a customer-driven marketing
strategy
3. Construct a marketing program that
delivers superior value
4. Build profitable relationships and create
customer delight
5. Capture value from customers to create
profits and customer quality

9. Simple Marketing System
Industry
(A collection
of sellers)
Market
(A collection
of Buyers)
Goods/Services
Money
Communication
Information

10. Core Marketing Concepts

11. Understanding the Core Concepts
• Needs, wants, and
demands
• Marketing offers: including
products, services and
experiences
• Value and satisfaction
• Exchange, transactions and
relationships
• Markets
• Need
– State of felt deprivation
– Example: Need food
• Wants
– The form of needs as
shaped by culture and
the individual
– Example: Want a Big
Mac
• Demands
– Wants which are backed
by buying power

12. Understanding the Core Concepts
• Needs, wants, and
demands
• Marketing offers: including
products, services and
experiences
• Value and satisfaction
• Exchange, transactions
and relationships
• Markets
• Marketing offer
– Combination of
products, services,
information or
experiences that satisfy
a need or want
– Offer may include
services, activities,
people, places,
information or ideas

13. Understanding the Core Concepts
• Needs, wants, and
demands
• Marketing offers:
including products,
services and
experiences
• Value and satisfaction
• Exchange, transactions
and relationships
• Markets
• Value
– Customers form
expectations regarding
value
– Marketers must deliver
value to consumers
• Satisfaction
– A satisfied customer will
buy again and tell others
about their good
experience

14. Understanding the Core Concepts
• Needs, wants, and
demands
• Marketing offers:
including products,
services and
experiences
• Value and satisfaction
• Exchange, transactions and
relationships
• Markets
• Exchange
– The act of obtaining a
desired object from
someone by offering
something in return
– One exchange is not the
goal, relationships with
several exchanges are
the goal
– Relationships are built
through delivering value
and satisfaction

15. Understanding the Core Concepts
• Needs, wants, and
demands
• Marketing offers:
including products,
services and
experiences
• Value and satisfaction
• Exchange, transactions
and relationships
• Markets
• Market
– Set of actual and
potential buyers of a
product
– Marketers seek buyers
that are profitable

16. Marketing strategies
• Meaning:
• “Marketing Strategy is a set of specific
ideas and actions that outline and guide
decisions on the best or chosen way to
create, distribute, promote, and price a
product or service(Manages the marketing
mix variables).”
• There are over 52 and more types
marketing strategies.
• We’ll see some of them from next slide
onwards…

17. Types of Marketing Strategies
• Cause Marketing: Find a cause both
your customers and your company care
about. It can create magic for your
business.

18. • Relationship Marketing:
Focus on building
relationships with your
customers instead of
always exclusively trying to
sell them something
(called transactional
marketing). Customers
who love your brand more
will also spend more
money with your brand.
Many traditional retailers have found this
to be true. Walgreens has seen that
customers who buy from all of their
purchasing channels (store, web, mobile,
etc.) buy up to six times more than the
average customer that only buys in their
store.

19. • Offline Marketing: Find
new ways of
• integrating offline
marketing with new
• technologies to create
more engaging
• customer experiences.
The Coca-Cola company has create
vending machines that invite
customers to hug them. This
continues to tie the Coca-Cola brand
to the core emotion of happiness,
but also invites customers to
experience the real product offline.

20. • Digital Marketing: Use
various digital devices
• like smartphones,
computers, tablets, or
digital
• billboards to inform
customers and business
• partners about your
products.

21. • Scarcity Marketing:
Where appropriate,
• consider making your
products accessible
• to only a few
customers.
• And many more..(2
lectures is also not
enough…)
Rolls-Royce’s release of their Year of
the Dragon Collection edition of the
Phantom sold quickly. Although the
cost of the car was higher than other
luxury cars, the scarcity drove the
desire and the price.

22. Marketing mix
• Definition of Marketing mix from
Economic Times:
– “The marketing mix refers to the set of
actions, or tactics, that a company uses to
promote its brand or product in the market.
The 4Ps make up a typical marketing mix -
Price, Product, Promotion and Place.
However, nowadays, the marketing mix
increasingly includes several other Ps like
Packaging, Positioning, People and even
Politics as vital mix elements.”

23. Marketing mix
• The Marketing Mix is one of two
interrelated components of strategy
• Marketing Mix strategy is choosing and
implementing the best possible course
of action to attain the organization’s
long-term objectives and gain
competitive edge.

24. Marketing mix
• Price: refers to the value that
is put for a product. It depends
on costs of production,
segment targeted, ability of
the market to pay, supply -
demand and a host of other
direct and indirect factors.
There can be several types of
pricing strategies, each tied in
with an overall business plan.
Pricing can also be used a
demarcation, to differentiate
and enhance the image of a
product.

25. • Product: refers to the item
actually being sold. The
product must deliver a
minimum level of
performance; otherwise
even the best work on the
other elements of the
marketing mix won't do any
good.
Marketing mix

26. • Place: refers to the point of
sale. In every industry,
catching the eye of the
consumer and making it easy
for her to buy it is the main
aim of a good distribution or
'place' strategy. Retailers pay a
premium for the right location.
In fact, the mantra of a
successful retail business is
'location, location, location'.
Marketing mix

27. • Promotion: this refers to all
the activities undertaken to
make the product or service
known to the user and trade.
This can include advertising,
word of mouth, press reports,
incentives, commissions and
awards to the trade. It can also
include consumer schemes,
direct marketing, contests and
prizes.
Marketing mix

28. Marketing Mix
• Promotions has four components called
the Promotions Mix as follows:
• Advertising – to effectively inform and
persuade the target market
• Public Relations – to offer a positive
image of the company and the brand
• Selling – to get the customers buy
• Sales Promotions – to convince
customers to buy immediately

29. Product Policy
• Product policies are the general rules
set by the management.
• Product policy guides the marketing
activities of the firm and helps it to
make the right products to the
consumers.
• Product policy is concerned with
defining type, volume and timing of
products a company offers for sale.

30. Product Policy
• A product policy generally covers the
follows:
 Product planning and development
 Product line
 Product mix
 Product branding
 Product positioning
 Product packaging

31. New-Product Development Strategy
• Strategies for Obtaining New-
Product Ideas:
 Acquisition of companies,
patents, licenses
 Original products,
improvements, modifications

32. • To suit the changes in customers needs
• To adopt new technological advances
and avoid obsolesce
• To match competition
• Product Life Cycle Concept
• To bring down the cost
Reasons for introducing new products

33. Major Stages in New-Product
Development
• Idea generation
• Idea screening
• Concept development and testing
• Marketing strategy development
• Business analysis
• Product development
• Test marketing
• Commercialization

34. • Ideas can be generate from the
following :
 Company employees
 Customers
 Competitors
 Distributors
 Suppliers
Idea Generation

35. Idea Screening
• Process to spot good ideas.
• Develop system to estimate: market
size, product price, development time
and costs, manufacturing costs, and
rate of return.
• Evaluate these findings against set of
company criteria for new products.

36. Concept Development and Testing
• Product Idea: idea for a possible product
that the company can see itself offering.
• Product Concept: detailed version of the
idea stated in meaningful consumer
terms.
• Product Image: the way consumers
perceive an actual or potential product.

37. Marketing Strategy Development
• Part One Describes:
– The target market, planned product
positions, sales, market share, and
profit goals
• Part Two Outlines the First Year’s:
– Product’s planned price, distribution,
and marketing budget
• Part Three Describes Long-Run:
– Sales and profit goals, marketing mix
strategy

38. Business Analysis
• Involves a review of the sales, costs,
and profit projections to assess fit
with company objectives.
• If yes, move to the product
development phase.

39. Product Development
• Develop concept into physical
product
• Calls for large jump in investment
• Prototypes are made
• Prototype must have correct
physical features and convey
psychological characteristics

40. Test Marketing
• Product and program introduced
in more realistic market setting.
• Not needed for all products.
• Can be expensive and time
consuming, but better than
making major marketing mistake.

41. Commercialization
• Must decide on timing (i.e.,
when to introduce the product).
• Must decide on where to
introduce the product (e.g.,
single location, state, region,
nationally, internationally).
• Must develop a market rollout
plan.

42. Organizing New-Product Development
• Sequential Approach:
each stage completed before
moving to next phase of the
project.
• Simultaneous Approach:
Cross-functional teams work
through overlapping steps to save
time and increase effectiveness.

43. The Product Life Cycle
• Introduction
• Growth
• Maturity
• Saturation
• Decline

44. Introduction Stage of PLC
 The Introduction stage is probably the
most important stage in the PLC. In fact,
most products that fail do so in
the Introduction stage.
 This is the stage in which the product is
initially promoted.
 Public awareness is very important to
the success of a product.
 If people don't know about the product
they won't go out and buy it.

45. Features
• Sales: low
• Costs: high cost per customer
• Profits: negative
• Marketing Objective: create product
awareness and trial
• Product: offer a basic product
• Price: use cost-plus formula
• Distribution: build selective distribution
• Promotion: heavy to entice product trial

46. Products presently in introduction
stage
HOLOGRAPHIC PROJECTIONS
Minority Report Gloves

47. Growth Stage of PLC
• If the company is lucky enough to get
their product out of the Introduction
stage, then enter this stage.
• The Growth stage is where the product
starts to grow.
• In this stage a very large amount of
money is spent on advertising.
• (because the company want to
concentrate of telling the consumer how
much better the product is than the
competitors' products.)

48. Features
• Sales: rapidly rising
• Costs: average cost per customer
• Profits: rising
• Marketing Objective: maximize market
share
• Product: offer extension, service,
warranty
• Price: penetration strategy
• Distribution: build intensive distribution
• Promotion: reduce to take advantage of
demand

49. Products presently in growth stage
BLU-RAY tablet pc’s

50. Maturity Stage of PLC
• During this stage sales grow at a very
fast rate
and then gradually begin to stabilize.
• The key to surviving this stage is
differentiating the product from the
similar
products offered by the competitors.
• the company must make the
product stand out among the rest Due
to the fact that sales are beginning to
stabilize.

51. Features
• Sales: peak
• Costs: low cost per customer
• Profits: high
• Marketing Objective: maximize profits
while defending market share
• Product: diversify brand and models
• Price: match or best (competitors)
• Distribution: build more intensive
distribution
• Promotion: Increase to encourage brand
switching

52. Three ways to be stand there in
maturity:
1. Modifying the Market: Increase the
consumption of the current product.
• How?
– Look for new users and market
segments
– Reposition the brand to appeal to
larger or faster-growing segment
– Look for ways to increase usage
among present customers

53. 2. Modifying the Product: Changing
characteristics such as quality,
features, or style to attract new users
and to inspire more usage.
• How?
– Improve durability, reliability,
speed, taste
– Improve styling and attractiveness
– Add new features
– Expand usefulness, safety,
convenience
Three ways to be stand there in
maturity:

54. Three ways to be stand there in
maturity:
3. Modifying the Marketing Mix: Improving
sales by changing one or more
marketing mix elements( price, place,
promotion and product)
• How?
– Cut prices
– Launch a better ad campaign
– Move into larger market channels
– Offer new or improved services to
buyers

55. Products presently in maturity stage

56. Saturation
• This is a period of stability. The sales of the
product reach the peak and there is no
further possibility to increase it.
• This stage is characterized by:
– Saturation of sales (at the early part of
this stage sales remain stable then it
starts falling).
– It continues till substitutes enter into the
market.
– Marketer must try to develop new and
alternative uses of product.

57. Decline Stage of PLC
• This is the stage in which sales of the
product begin to fall.
• Either everyone that wants to has bought
the product or new, more innovative
products have been created that replace
that product.
• Many companies decide to withdrawal
their products from the market due to the
downturn.
• The only way to increase sales during this
period is to cut your costs reduce your
spending.

58. Features
• Sales: declining
• Costs: high cost per customer
• Profits: declining
• Marketing Objective: reduce
expenditures
• Product: phase out weak items
• Price: cut price
• Distribution: selective--phase out
unprofitable outlets
• Promotion: reduce to minimal level

59. Products presently in decline stage

60. Product Life Cycle through graph

61. Summary of Product Life Cycle

62. Channels of Distribution
• Marketing channels are set of
interdependent organizations involved
in the process of making the product or
service available for use or
consumption.
• They are the set of pathways a product
or service follow after production.

63. Importance of channels
• Decisions about the marketing channels
are among the most critical
management decisions.
• They just not serve markets, they make
market.
• Channels chosen affects all other
marketing decisions.
• Firm’s sale depends upon training and
motivation of dealers.

64. Classification of channels/channel
levels
Channels of
distribution
0-Level 1-Level 2-Level 3-Level

65. Channels of Distribution
0-Level
manufacturer
Consumer
1-Level
manufacturer
Consumer
Retailer
2-Level
manufacturer
Consumer
Retailer
Wholesaler
3-Level
manufacturer
Consumer
Wholesaler
Retailer
Jobber

66. Intermediaries
• Intermediaries are the middlemen and
signify those individuals in the channels
that either take title to take goods and
sell at profit.
• They are directly involved in process of
flow of goods from manufacturer to
consumer.

67. Types of intermediaries
1. Merchant middlemen
i. Wholesalers
ii. Retailers
2. Agents
i. Brokers
ii. Commission agents
iii. Selling agents
iv. Factors
v. Clearing agents
vi. auctioneer

68. Factors governing the choice of
channel of distribution
Factors
Product
factors
Market
factors
Environme
ntal
factors
Institution
al Factors
Unit
Factors

69. Product factors
• Product nature.
• Technical nature: simple or complex.
• The length of product line.
• The market position: market position of
manufacturer.

70. The market factors
• The existing market structure.
• The nature of purchase deliberations.
• Availability channel.
• competitor's channels.

71. Institutional factors
• The financial ability of channel
members.
• The promotional ability of channel
members.
• The post-sale service ability.

72. Unit factors
• The company’s financial position.
• The extent of market control desired.
• The company reputation.
• The company marketing policies.

73. Thank You