Companyrsquos orientation towards the marketplace

The various concepts used by organizations can be classified as follows

bull Production conceptbull Product conceptbull Selling conceptbull Marketing conceptbull Holistic marketing concept

Production conceptbull Holds the view that mass distributed inexpensive

productsare required to expand the marketeg Chinese products take advantage of inexpensivelabour and low costs to dominate the marketProduct conceptbull Holds the view that products of good features and qualitywill attract the market itselfbull It might but not on a long standing basisbull Unless the distribution pricing advertisements are

correctthe concept will not work

Selling conceptbull Holds the view that products should be aggressively

sold promotedbull Hard sell is the methodbull Used extensively by unsought goodsndash eg insurance bull Assumes that consumers will buy a product andeventually like it and will not complain even if there is aproblembull Sell more to make more money and more profit

Holistic marketing concept

This concept is based on the development design andimplementation of marketing programmes processes andactivities that recognises their breadth and

interdependenciesThis concept assumes that everything matters in

marketingFour components of holistic marketing are ndash Relationshipndash Integrationndash Internalndash Social

Relationship marketing is the process of building a mutually

healthy and beneficial relationship between the marketer and

the prospectFour key constituents for marketing are customersemployees marketing partners ( channel partners

suppliersdistributors dealers) and members of the financialcommunity(shareholders investors analysts)The outcome of this relationship is building of a strongmarketing network The operating principle of this network

isthatldquobuild the network and profits will followrdquo

A growing number of organizations are customizing offersservices and messages to suit individual needs Thesecompanies collect information on each customers pasttransactions demographics psychographics media anddistribution preferences They hope to capture a large

shareof each customerrsquos expenditures by building high

customerloyalty and focusing on customer lifetime valueThe ability of a company to deal with customers

individuallyhas become possible because of advances in factorycustomization computers internet database marketingsoftware

Integrated MarketingThe marketer has to devise the marketing programs to

createcommunicate and deliver value to the consumersOne traditional depiction of marketing is in terms of themarketing mix

It is a set of marketing tools that the firm uses to pursue its marketing objectives in the target market

McCarthy classified the mix into four broad groups which he

called the 4 Prsquos of Marketing Product Price Promotion Place

Product

Product variety Quality Design Features Brand name Packaging Sizes Services Warranties Returns

Price

List Price Discounts Allowances Payment period Credit terms

Promotion

Sales promotion Advertising Sales force Public relations Direct marketing

Place

Channels Coverage Assortments Locations Inventory Transport

From a sellers point of view each of the component signifies a

tool to influence a buyer

From a buyers view each of this connotes a customer value

Robert Lauterborn suggests that the sellerrsquos 4 Prsquos correspond to

4 Crsquos as followsFour Prsquos Four CrsquosProduct Customer solutionPrice Customer costPlace ConveniencePromotion Communication

A special insightIn this context what needs to be understand is that the 4Prsquos

haveto be added with two more Psrsquo

6Psrsquo make a holistic framework

4Prsquos + 5th P (people) + 6th P (process)People will have to be oriented towards the market place andthe processes will have to be constantly reviewed to ensure

thatevery business action is in sync with the market philosophyOnly when this concept sinks into an organizational approachwill Holistic Marketing have truly been assimilated

Two key themes of integrated marketing are1 Many marketing activities are strung

together to deliver value and customer satisfaction

2 All these activities are co-ordinated to get the maximum effect

An integrated marketing communications strategy involves choosing communications that reinforce and complement each other

Internal MarketingHolistic marketing incorporates internal marketing ensuring thateveryone in the organization embraces appropriate marketingprinciples especially senior managementInternal marketing should work at two levels One between the various marketing functions like salesadvertising product management marketing research mustwork together All these functions must be co-ordinated fromthe customerrsquos point of viewNext the various other departments like production finance Ramp D should also ldquothink customerrdquo Marketing orientation mustbecome pervasive throughout the company

Social Responsibility MarketingHolistic marketing tells us the importance of understandingbroader concerns and the ethical and social issues in thecontext of marketing actions

One should approach issues with lsquohumanistic marketingrsquo andlsquoecological marketingrsquoSocial marketing concept holds that the marketing companyshould deliver value to its target customer in a way better thancompetition does by protecting social and environmental needsand enhance social well beingCause related marketing ie building market relationships witha cause or causes for mutual benefit is what companies aspirefor

Fundamental Marketing Conceptsbull Needs wants demandsbull Value satisfactionbull Segmentation Target markets

Positioningbull Offerings brandsbull Marketing channels Supply chainbull Competitionbull Marketing Environmentbull Planning

Needs Wants DemandsNeeds are basic human requirementsWants are directed to specific objects that satisfy a needDemands are wants for specific products backed by ability toPayThere are five types of needs 1Stated Needs (customer says he wants an inexpensive car)2Real Needs ( customer wants a car whose operating cost islow not the initial price)3Unstated Needs (customer expects good service from dealerdoes not ask for it)4Delight Needs(customer would like to get extra fittings at nocost)5Secret Need (customer wants to be seen a savvy consumerowning the car)

Value SatisfactionValue reflects the perceived tangible and intangible benefits

andcosts to the customersValue is a combination of quality service and price (QSP) called the lsquocustomer value triadrsquoValue increases with quality and decreases with priceMarketing constantly works on increasing and communicatingvalue to the consumersSatisfaction is the cumulative comparative judgements

resultingfrom the productrsquos perceived performance or outcome inrelation to his or her expectations Satisfaction is directlyproportional to expectations and exceeds and decreases with

it

bull Customer value

The Customer delivered value is the difference between total customer value and total customer cost

The total customer value is the bundle of benefits customer expects from a given product or service

Total customer cost is the bundle of costs customers expect to incur in evaluating obtaining using and disposing of the product or service

Now we shall go to the section of how marketing creates value

for the consumerMarketing has to constantly create and deliver value to theconsumerValue we saw in the previous chapter as a sum total oftangible and intangible perceived by the consumer for the

pricethat he paysMarketers must first choose the value delivery process andcommunicate superior value by fine tuning the process

Value delivery process The delivery process has three stages as is explained belowndash First phase choosing the valueThis is the first phase of determining what should be the

valueoffered to the consumerbull Homework before any product is marketedbull Segment the market select the target and develop thevalue positioningbull STP ndash seg targeting positioning is the essence ofmarketingndash Second phase providing the valuebull Developing product features pricing sourcing makingdistributing the product

Third phase communicating the valueUtilise sales force promotion advertising masscommunicationNirmallya Kumar has proposed a 3 V approach to

marketing3Vrsquos Value segmentValue propositionValue networkbull Value segments ndash customers ( hisher needs)bull Value proposition ndash product offeringbull Value network - channel method of delivering thevalue

The concept of Value Chain bull Michael Porterrsquos value chain is a tool

for creating more customer valueAccording to this model every

business gets into nine value creating activities out of which five are primary activities and four are support activities

bull Primary activities bringing materials (inbound logistics) converting them into final products (operations)shipping out final products (outbound logistics)marketing (marketing and sales)servicing (service)bull Support activities procurement HR technologydevelopment and firm infrastructureThe firm constantly examines costs and performance in each ofthese value creating activity and looks for ways to improve thefunction The firm analyses the competitors costs andbenchmarks against which to perform It also establishes lsquo bestpracticesrsquo and makes them industry standards

bull All of these must be aligned to the core businessprocessesbull Today companies are partnering with suppliers anddistributors to create a superior value network or a supplychainThe need for developing Core competenciesbull Core business processes need resources ndash labour powermaterials machines informationbull Nurture resources to gain better competenciesbull Outsource others to reduce overheads and concentrate

onthe core

Holistic marketing framework and customer value

Holistic marketing talks about three key management questions on value

Value exploration Value creation Value delivery

Let us examine each in detail

1048729 Value exploration- Must integrate cognitive space competency of

thecompany and resource space of the organization- Cognitive space includes existing and latent

needs- Competency space understanding scope ofbusiness and physical and knowledge competencies- Resource space partners who can collaborate

withthem

1048729 Value Creation- Marketers must identify the following- Customer benefits- Utilise core competencies- Manage business partners- To realign core competencies - Define the business concept- Reshape the scope of business- Position (re) the companyrsquos identity in peoplersquosminds

1048729 Value Delivery- Customer relationship constantly

understand customer needs- Internal resource management

single family of software to link all business processes

- Business partnership allows to manage complex business relationships

Who MarketsA marketer is someone who has a product service to

offer sell He seeks response from the other party a prospect

theone who receives the message and decides to act upon itMarketers stimulate demand in the marketplace for theircompanyrsquos products demand management is an

importantfunction for any marketing departmentMarketers seek to influence the level of demand time ofdemand and composition of demand

Eight states of demand are possible 1 Negative demand Consumers dislike the

product and may even pay a price to avoid it2 Non Existent demand Consumes may be

unaware or uninterested in the product3 Latent demand Consumers may share a

strong need that cannot be satisfied by an existing product

4 Declining demand Consumers buy less frequently or not

at all5 Irregular demand Consumer purchases vary onoccasional basis seasonal weekly monthly6 Full demand Consumers are adequately purchasingexpected levels of products7 Overfull demand More consumers want the product

butcanrsquot be satisfied8 Unwholesome demand Consumers are attracted toproducts that have undesirable social consequences

What are the tasks of Marketing management

bull Developing marketing strategies and plansbull Capturing marketing insightsbull Connecting with the consumersbull Building strong brandsbull Shaping the market offeringsbull Delivering valuebull Communicating valuebull Creating long term growth

Developing marketing strategies and plansndash Identify long and short term potentialsndash Make strategic and tactical plans

bull Capturing marketing insightsndash Closely monitor marketing environmentndash Gather information both at micro and macro levelsndash Establish marketing information system marketingresearch system marketing implementation systemmarketing control system

Connecting with the consumersndash Develop strong long term relationship withcustomersndash Where what why they buy is to be understoodndash Segment the market and identify the targets in

eachgroupBuilding strong brandsndash Develop products with strong brand namesndash Establish these brands monitor them and keepevaluating them

Understand competitionbull Shaping the market offeringsndash Product quality design shape price

maintenanceafter sales service discounts schemes credit

terms

bull Delivering valuendash Determine channels of distributionndash Make it available within easy reach of the

customers

Communicating valuendash Develop and run marketing communications toinform persuade remind consumers directly orindirectly about the brands they sellndash Develop mass programmes sales promotions directselling public relations interactive marketing andother activitiesbull Creating long term growthndash Initiate programmes to constantly monitor growthndash Product relaunches new product developmentevaluating marketing programmes should beconstantly undertaken

Production conceptbull Holds the view that mass distributed inexpensive

productsare required to expand the marketeg Chinese products take advantage of inexpensivelabour and low costs to dominate the marketProduct conceptbull Holds the view that products of good features and qualitywill attract the market itselfbull It might but not on a long standing basisbull Unless the distribution pricing advertisements are

correctthe concept will not work

Selling conceptbull Holds the view that products should be aggressively

sold promotedbull Hard sell is the methodbull Used extensively by unsought goodsndash eg insurance bull Assumes that consumers will buy a product andeventually like it and will not complain even if there is aproblembull Sell more to make more money and more profit

Holistic marketing concept

This concept is based on the development design andimplementation of marketing programmes processes andactivities that recognises their breadth and

interdependenciesThis concept assumes that everything matters in

marketingFour components of holistic marketing are ndash Relationshipndash Integrationndash Internalndash Social

Relationship marketing is the process of building a mutually

healthy and beneficial relationship between the marketer and

the prospectFour key constituents for marketing are customersemployees marketing partners ( channel partners

suppliersdistributors dealers) and members of the financialcommunity(shareholders investors analysts)The outcome of this relationship is building of a strongmarketing network The operating principle of this network

isthatldquobuild the network and profits will followrdquo

A growing number of organizations are customizing offersservices and messages to suit individual needs Thesecompanies collect information on each customers pasttransactions demographics psychographics media anddistribution preferences They hope to capture a large

shareof each customerrsquos expenditures by building high

customerloyalty and focusing on customer lifetime valueThe ability of a company to deal with customers

individuallyhas become possible because of advances in factorycustomization computers internet database marketingsoftware

Integrated MarketingThe marketer has to devise the marketing programs to

createcommunicate and deliver value to the consumersOne traditional depiction of marketing is in terms of themarketing mix

It is a set of marketing tools that the firm uses to pursue its marketing objectives in the target market

McCarthy classified the mix into four broad groups which he

called the 4 Prsquos of Marketing Product Price Promotion Place

Product

Product variety Quality Design Features Brand name Packaging Sizes Services Warranties Returns

Price

List Price Discounts Allowances Payment period Credit terms

Promotion

Sales promotion Advertising Sales force Public relations Direct marketing

Place

Channels Coverage Assortments Locations Inventory Transport

From a sellers point of view each of the component signifies a

tool to influence a buyer

From a buyers view each of this connotes a customer value

Robert Lauterborn suggests that the sellerrsquos 4 Prsquos correspond to

4 Crsquos as followsFour Prsquos Four CrsquosProduct Customer solutionPrice Customer costPlace ConveniencePromotion Communication

A special insightIn this context what needs to be understand is that the 4Prsquos

haveto be added with two more Psrsquo

6Psrsquo make a holistic framework

4Prsquos + 5th P (people) + 6th P (process)People will have to be oriented towards the market place andthe processes will have to be constantly reviewed to ensure

thatevery business action is in sync with the market philosophyOnly when this concept sinks into an organizational approachwill Holistic Marketing have truly been assimilated

Two key themes of integrated marketing are1 Many marketing activities are strung

together to deliver value and customer satisfaction

2 All these activities are co-ordinated to get the maximum effect

An integrated marketing communications strategy involves choosing communications that reinforce and complement each other

Internal MarketingHolistic marketing incorporates internal marketing ensuring thateveryone in the organization embraces appropriate marketingprinciples especially senior managementInternal marketing should work at two levels One between the various marketing functions like salesadvertising product management marketing research mustwork together All these functions must be co-ordinated fromthe customerrsquos point of viewNext the various other departments like production finance Ramp D should also ldquothink customerrdquo Marketing orientation mustbecome pervasive throughout the company

Social Responsibility MarketingHolistic marketing tells us the importance of understandingbroader concerns and the ethical and social issues in thecontext of marketing actions

One should approach issues with lsquohumanistic marketingrsquo andlsquoecological marketingrsquoSocial marketing concept holds that the marketing companyshould deliver value to its target customer in a way better thancompetition does by protecting social and environmental needsand enhance social well beingCause related marketing ie building market relationships witha cause or causes for mutual benefit is what companies aspirefor

Fundamental Marketing Conceptsbull Needs wants demandsbull Value satisfactionbull Segmentation Target markets

Positioningbull Offerings brandsbull Marketing channels Supply chainbull Competitionbull Marketing Environmentbull Planning

Needs Wants DemandsNeeds are basic human requirementsWants are directed to specific objects that satisfy a needDemands are wants for specific products backed by ability toPayThere are five types of needs 1Stated Needs (customer says he wants an inexpensive car)2Real Needs ( customer wants a car whose operating cost islow not the initial price)3Unstated Needs (customer expects good service from dealerdoes not ask for it)4Delight Needs(customer would like to get extra fittings at nocost)5Secret Need (customer wants to be seen a savvy consumerowning the car)

Value SatisfactionValue reflects the perceived tangible and intangible benefits

andcosts to the customersValue is a combination of quality service and price (QSP) called the lsquocustomer value triadrsquoValue increases with quality and decreases with priceMarketing constantly works on increasing and communicatingvalue to the consumersSatisfaction is the cumulative comparative judgements

resultingfrom the productrsquos perceived performance or outcome inrelation to his or her expectations Satisfaction is directlyproportional to expectations and exceeds and decreases with

it

bull Customer value

The Customer delivered value is the difference between total customer value and total customer cost

The total customer value is the bundle of benefits customer expects from a given product or service

Total customer cost is the bundle of costs customers expect to incur in evaluating obtaining using and disposing of the product or service

Now we shall go to the section of how marketing creates value

for the consumerMarketing has to constantly create and deliver value to theconsumerValue we saw in the previous chapter as a sum total oftangible and intangible perceived by the consumer for the

pricethat he paysMarketers must first choose the value delivery process andcommunicate superior value by fine tuning the process

Value delivery process The delivery process has three stages as is explained belowndash First phase choosing the valueThis is the first phase of determining what should be the

valueoffered to the consumerbull Homework before any product is marketedbull Segment the market select the target and develop thevalue positioningbull STP ndash seg targeting positioning is the essence ofmarketingndash Second phase providing the valuebull Developing product features pricing sourcing makingdistributing the product

Third phase communicating the valueUtilise sales force promotion advertising masscommunicationNirmallya Kumar has proposed a 3 V approach to

marketing3Vrsquos Value segmentValue propositionValue networkbull Value segments ndash customers ( hisher needs)bull Value proposition ndash product offeringbull Value network - channel method of delivering thevalue

The concept of Value Chain bull Michael Porterrsquos value chain is a tool

for creating more customer valueAccording to this model every

business gets into nine value creating activities out of which five are primary activities and four are support activities

bull Primary activities bringing materials (inbound logistics) converting them into final products (operations)shipping out final products (outbound logistics)marketing (marketing and sales)servicing (service)bull Support activities procurement HR technologydevelopment and firm infrastructureThe firm constantly examines costs and performance in each ofthese value creating activity and looks for ways to improve thefunction The firm analyses the competitors costs andbenchmarks against which to perform It also establishes lsquo bestpracticesrsquo and makes them industry standards

bull All of these must be aligned to the core businessprocessesbull Today companies are partnering with suppliers anddistributors to create a superior value network or a supplychainThe need for developing Core competenciesbull Core business processes need resources ndash labour powermaterials machines informationbull Nurture resources to gain better competenciesbull Outsource others to reduce overheads and concentrate

onthe core

Holistic marketing framework and customer value

Holistic marketing talks about three key management questions on value

Value exploration Value creation Value delivery

Let us examine each in detail

1048729 Value exploration- Must integrate cognitive space competency of

thecompany and resource space of the organization- Cognitive space includes existing and latent

needs- Competency space understanding scope ofbusiness and physical and knowledge competencies- Resource space partners who can collaborate

withthem

1048729 Value Creation- Marketers must identify the following- Customer benefits- Utilise core competencies- Manage business partners- To realign core competencies - Define the business concept- Reshape the scope of business- Position (re) the companyrsquos identity in peoplersquosminds

1048729 Value Delivery- Customer relationship constantly

understand customer needs- Internal resource management

single family of software to link all business processes

- Business partnership allows to manage complex business relationships

Who MarketsA marketer is someone who has a product service to

offer sell He seeks response from the other party a prospect

theone who receives the message and decides to act upon itMarketers stimulate demand in the marketplace for theircompanyrsquos products demand management is an

importantfunction for any marketing departmentMarketers seek to influence the level of demand time ofdemand and composition of demand

Eight states of demand are possible 1 Negative demand Consumers dislike the

product and may even pay a price to avoid it2 Non Existent demand Consumes may be

unaware or uninterested in the product3 Latent demand Consumers may share a

strong need that cannot be satisfied by an existing product

4 Declining demand Consumers buy less frequently or not

at all5 Irregular demand Consumer purchases vary onoccasional basis seasonal weekly monthly6 Full demand Consumers are adequately purchasingexpected levels of products7 Overfull demand More consumers want the product

butcanrsquot be satisfied8 Unwholesome demand Consumers are attracted toproducts that have undesirable social consequences

What are the tasks of Marketing management

bull Developing marketing strategies and plansbull Capturing marketing insightsbull Connecting with the consumersbull Building strong brandsbull Shaping the market offeringsbull Delivering valuebull Communicating valuebull Creating long term growth

Developing marketing strategies and plansndash Identify long and short term potentialsndash Make strategic and tactical plans

bull Capturing marketing insightsndash Closely monitor marketing environmentndash Gather information both at micro and macro levelsndash Establish marketing information system marketingresearch system marketing implementation systemmarketing control system

Connecting with the consumersndash Develop strong long term relationship withcustomersndash Where what why they buy is to be understoodndash Segment the market and identify the targets in

eachgroupBuilding strong brandsndash Develop products with strong brand namesndash Establish these brands monitor them and keepevaluating them

Understand competitionbull Shaping the market offeringsndash Product quality design shape price

maintenanceafter sales service discounts schemes credit

terms

bull Delivering valuendash Determine channels of distributionndash Make it available within easy reach of the

customers

Communicating valuendash Develop and run marketing communications toinform persuade remind consumers directly orindirectly about the brands they sellndash Develop mass programmes sales promotions directselling public relations interactive marketing andother activitiesbull Creating long term growthndash Initiate programmes to constantly monitor growthndash Product relaunches new product developmentevaluating marketing programmes should beconstantly undertaken

Selling conceptbull Holds the view that products should be aggressively

sold promotedbull Hard sell is the methodbull Used extensively by unsought goodsndash eg insurance bull Assumes that consumers will buy a product andeventually like it and will not complain even if there is aproblembull Sell more to make more money and more profit

Holistic marketing concept

This concept is based on the development design andimplementation of marketing programmes processes andactivities that recognises their breadth and

interdependenciesThis concept assumes that everything matters in

marketingFour components of holistic marketing are ndash Relationshipndash Integrationndash Internalndash Social

Relationship marketing is the process of building a mutually

healthy and beneficial relationship between the marketer and

the prospectFour key constituents for marketing are customersemployees marketing partners ( channel partners

suppliersdistributors dealers) and members of the financialcommunity(shareholders investors analysts)The outcome of this relationship is building of a strongmarketing network The operating principle of this network

isthatldquobuild the network and profits will followrdquo

A growing number of organizations are customizing offersservices and messages to suit individual needs Thesecompanies collect information on each customers pasttransactions demographics psychographics media anddistribution preferences They hope to capture a large

shareof each customerrsquos expenditures by building high

customerloyalty and focusing on customer lifetime valueThe ability of a company to deal with customers

individuallyhas become possible because of advances in factorycustomization computers internet database marketingsoftware

Integrated MarketingThe marketer has to devise the marketing programs to

createcommunicate and deliver value to the consumersOne traditional depiction of marketing is in terms of themarketing mix

It is a set of marketing tools that the firm uses to pursue its marketing objectives in the target market

McCarthy classified the mix into four broad groups which he

called the 4 Prsquos of Marketing Product Price Promotion Place

Product

Product variety Quality Design Features Brand name Packaging Sizes Services Warranties Returns

Price

List Price Discounts Allowances Payment period Credit terms

Promotion

Sales promotion Advertising Sales force Public relations Direct marketing

Place

Channels Coverage Assortments Locations Inventory Transport

From a sellers point of view each of the component signifies a

tool to influence a buyer

From a buyers view each of this connotes a customer value

Robert Lauterborn suggests that the sellerrsquos 4 Prsquos correspond to

4 Crsquos as followsFour Prsquos Four CrsquosProduct Customer solutionPrice Customer costPlace ConveniencePromotion Communication

A special insightIn this context what needs to be understand is that the 4Prsquos

haveto be added with two more Psrsquo

6Psrsquo make a holistic framework

4Prsquos + 5th P (people) + 6th P (process)People will have to be oriented towards the market place andthe processes will have to be constantly reviewed to ensure

thatevery business action is in sync with the market philosophyOnly when this concept sinks into an organizational approachwill Holistic Marketing have truly been assimilated

Two key themes of integrated marketing are1 Many marketing activities are strung

together to deliver value and customer satisfaction

2 All these activities are co-ordinated to get the maximum effect

An integrated marketing communications strategy involves choosing communications that reinforce and complement each other

Internal MarketingHolistic marketing incorporates internal marketing ensuring thateveryone in the organization embraces appropriate marketingprinciples especially senior managementInternal marketing should work at two levels One between the various marketing functions like salesadvertising product management marketing research mustwork together All these functions must be co-ordinated fromthe customerrsquos point of viewNext the various other departments like production finance Ramp D should also ldquothink customerrdquo Marketing orientation mustbecome pervasive throughout the company

Social Responsibility MarketingHolistic marketing tells us the importance of understandingbroader concerns and the ethical and social issues in thecontext of marketing actions

One should approach issues with lsquohumanistic marketingrsquo andlsquoecological marketingrsquoSocial marketing concept holds that the marketing companyshould deliver value to its target customer in a way better thancompetition does by protecting social and environmental needsand enhance social well beingCause related marketing ie building market relationships witha cause or causes for mutual benefit is what companies aspirefor

Fundamental Marketing Conceptsbull Needs wants demandsbull Value satisfactionbull Segmentation Target markets

Positioningbull Offerings brandsbull Marketing channels Supply chainbull Competitionbull Marketing Environmentbull Planning

Needs Wants DemandsNeeds are basic human requirementsWants are directed to specific objects that satisfy a needDemands are wants for specific products backed by ability toPayThere are five types of needs 1Stated Needs (customer says he wants an inexpensive car)2Real Needs ( customer wants a car whose operating cost islow not the initial price)3Unstated Needs (customer expects good service from dealerdoes not ask for it)4Delight Needs(customer would like to get extra fittings at nocost)5Secret Need (customer wants to be seen a savvy consumerowning the car)

Value SatisfactionValue reflects the perceived tangible and intangible benefits

andcosts to the customersValue is a combination of quality service and price (QSP) called the lsquocustomer value triadrsquoValue increases with quality and decreases with priceMarketing constantly works on increasing and communicatingvalue to the consumersSatisfaction is the cumulative comparative judgements

resultingfrom the productrsquos perceived performance or outcome inrelation to his or her expectations Satisfaction is directlyproportional to expectations and exceeds and decreases with

it

bull Customer value

The Customer delivered value is the difference between total customer value and total customer cost

The total customer value is the bundle of benefits customer expects from a given product or service

Total customer cost is the bundle of costs customers expect to incur in evaluating obtaining using and disposing of the product or service

Now we shall go to the section of how marketing creates value

for the consumerMarketing has to constantly create and deliver value to theconsumerValue we saw in the previous chapter as a sum total oftangible and intangible perceived by the consumer for the

pricethat he paysMarketers must first choose the value delivery process andcommunicate superior value by fine tuning the process

Value delivery process The delivery process has three stages as is explained belowndash First phase choosing the valueThis is the first phase of determining what should be the

valueoffered to the consumerbull Homework before any product is marketedbull Segment the market select the target and develop thevalue positioningbull STP ndash seg targeting positioning is the essence ofmarketingndash Second phase providing the valuebull Developing product features pricing sourcing makingdistributing the product

Third phase communicating the valueUtilise sales force promotion advertising masscommunicationNirmallya Kumar has proposed a 3 V approach to

marketing3Vrsquos Value segmentValue propositionValue networkbull Value segments ndash customers ( hisher needs)bull Value proposition ndash product offeringbull Value network - channel method of delivering thevalue

The concept of Value Chain bull Michael Porterrsquos value chain is a tool

for creating more customer valueAccording to this model every

business gets into nine value creating activities out of which five are primary activities and four are support activities

bull Primary activities bringing materials (inbound logistics) converting them into final products (operations)shipping out final products (outbound logistics)marketing (marketing and sales)servicing (service)bull Support activities procurement HR technologydevelopment and firm infrastructureThe firm constantly examines costs and performance in each ofthese value creating activity and looks for ways to improve thefunction The firm analyses the competitors costs andbenchmarks against which to perform It also establishes lsquo bestpracticesrsquo and makes them industry standards

bull All of these must be aligned to the core businessprocessesbull Today companies are partnering with suppliers anddistributors to create a superior value network or a supplychainThe need for developing Core competenciesbull Core business processes need resources ndash labour powermaterials machines informationbull Nurture resources to gain better competenciesbull Outsource others to reduce overheads and concentrate

onthe core

Holistic marketing framework and customer value

Holistic marketing talks about three key management questions on value

Value exploration Value creation Value delivery

Let us examine each in detail

1048729 Value exploration- Must integrate cognitive space competency of

thecompany and resource space of the organization- Cognitive space includes existing and latent

needs- Competency space understanding scope ofbusiness and physical and knowledge competencies- Resource space partners who can collaborate

withthem

1048729 Value Creation- Marketers must identify the following- Customer benefits- Utilise core competencies- Manage business partners- To realign core competencies - Define the business concept- Reshape the scope of business- Position (re) the companyrsquos identity in peoplersquosminds

1048729 Value Delivery- Customer relationship constantly

understand customer needs- Internal resource management

single family of software to link all business processes

- Business partnership allows to manage complex business relationships

Who MarketsA marketer is someone who has a product service to

offer sell He seeks response from the other party a prospect

theone who receives the message and decides to act upon itMarketers stimulate demand in the marketplace for theircompanyrsquos products demand management is an

importantfunction for any marketing departmentMarketers seek to influence the level of demand time ofdemand and composition of demand

Eight states of demand are possible 1 Negative demand Consumers dislike the

product and may even pay a price to avoid it2 Non Existent demand Consumes may be

unaware or uninterested in the product3 Latent demand Consumers may share a

strong need that cannot be satisfied by an existing product

4 Declining demand Consumers buy less frequently or not

at all5 Irregular demand Consumer purchases vary onoccasional basis seasonal weekly monthly6 Full demand Consumers are adequately purchasingexpected levels of products7 Overfull demand More consumers want the product

butcanrsquot be satisfied8 Unwholesome demand Consumers are attracted toproducts that have undesirable social consequences

What are the tasks of Marketing management

bull Developing marketing strategies and plansbull Capturing marketing insightsbull Connecting with the consumersbull Building strong brandsbull Shaping the market offeringsbull Delivering valuebull Communicating valuebull Creating long term growth

Developing marketing strategies and plansndash Identify long and short term potentialsndash Make strategic and tactical plans

bull Capturing marketing insightsndash Closely monitor marketing environmentndash Gather information both at micro and macro levelsndash Establish marketing information system marketingresearch system marketing implementation systemmarketing control system

Connecting with the consumersndash Develop strong long term relationship withcustomersndash Where what why they buy is to be understoodndash Segment the market and identify the targets in

eachgroupBuilding strong brandsndash Develop products with strong brand namesndash Establish these brands monitor them and keepevaluating them

Understand competitionbull Shaping the market offeringsndash Product quality design shape price

maintenanceafter sales service discounts schemes credit

terms

bull Delivering valuendash Determine channels of distributionndash Make it available within easy reach of the

customers

Communicating valuendash Develop and run marketing communications toinform persuade remind consumers directly orindirectly about the brands they sellndash Develop mass programmes sales promotions directselling public relations interactive marketing andother activitiesbull Creating long term growthndash Initiate programmes to constantly monitor growthndash Product relaunches new product developmentevaluating marketing programmes should beconstantly undertaken

Holistic marketing concept

This concept is based on the development design andimplementation of marketing programmes processes andactivities that recognises their breadth and

interdependenciesThis concept assumes that everything matters in

marketingFour components of holistic marketing are ndash Relationshipndash Integrationndash Internalndash Social

Relationship marketing is the process of building a mutually

healthy and beneficial relationship between the marketer and

the prospectFour key constituents for marketing are customersemployees marketing partners ( channel partners

suppliersdistributors dealers) and members of the financialcommunity(shareholders investors analysts)The outcome of this relationship is building of a strongmarketing network The operating principle of this network

isthatldquobuild the network and profits will followrdquo

A growing number of organizations are customizing offersservices and messages to suit individual needs Thesecompanies collect information on each customers pasttransactions demographics psychographics media anddistribution preferences They hope to capture a large

shareof each customerrsquos expenditures by building high

customerloyalty and focusing on customer lifetime valueThe ability of a company to deal with customers

individuallyhas become possible because of advances in factorycustomization computers internet database marketingsoftware

Integrated MarketingThe marketer has to devise the marketing programs to

createcommunicate and deliver value to the consumersOne traditional depiction of marketing is in terms of themarketing mix

It is a set of marketing tools that the firm uses to pursue its marketing objectives in the target market

McCarthy classified the mix into four broad groups which he

called the 4 Prsquos of Marketing Product Price Promotion Place

Product

Product variety Quality Design Features Brand name Packaging Sizes Services Warranties Returns

Price

List Price Discounts Allowances Payment period Credit terms

Promotion

Sales promotion Advertising Sales force Public relations Direct marketing

Place

Channels Coverage Assortments Locations Inventory Transport

From a sellers point of view each of the component signifies a

tool to influence a buyer

From a buyers view each of this connotes a customer value

Robert Lauterborn suggests that the sellerrsquos 4 Prsquos correspond to

4 Crsquos as followsFour Prsquos Four CrsquosProduct Customer solutionPrice Customer costPlace ConveniencePromotion Communication

A special insightIn this context what needs to be understand is that the 4Prsquos

haveto be added with two more Psrsquo

6Psrsquo make a holistic framework

4Prsquos + 5th P (people) + 6th P (process)People will have to be oriented towards the market place andthe processes will have to be constantly reviewed to ensure

thatevery business action is in sync with the market philosophyOnly when this concept sinks into an organizational approachwill Holistic Marketing have truly been assimilated

Two key themes of integrated marketing are1 Many marketing activities are strung

together to deliver value and customer satisfaction

2 All these activities are co-ordinated to get the maximum effect

An integrated marketing communications strategy involves choosing communications that reinforce and complement each other

Internal MarketingHolistic marketing incorporates internal marketing ensuring thateveryone in the organization embraces appropriate marketingprinciples especially senior managementInternal marketing should work at two levels One between the various marketing functions like salesadvertising product management marketing research mustwork together All these functions must be co-ordinated fromthe customerrsquos point of viewNext the various other departments like production finance Ramp D should also ldquothink customerrdquo Marketing orientation mustbecome pervasive throughout the company

Social Responsibility MarketingHolistic marketing tells us the importance of understandingbroader concerns and the ethical and social issues in thecontext of marketing actions

One should approach issues with lsquohumanistic marketingrsquo andlsquoecological marketingrsquoSocial marketing concept holds that the marketing companyshould deliver value to its target customer in a way better thancompetition does by protecting social and environmental needsand enhance social well beingCause related marketing ie building market relationships witha cause or causes for mutual benefit is what companies aspirefor

Fundamental Marketing Conceptsbull Needs wants demandsbull Value satisfactionbull Segmentation Target markets

Positioningbull Offerings brandsbull Marketing channels Supply chainbull Competitionbull Marketing Environmentbull Planning

Needs Wants DemandsNeeds are basic human requirementsWants are directed to specific objects that satisfy a needDemands are wants for specific products backed by ability toPayThere are five types of needs 1Stated Needs (customer says he wants an inexpensive car)2Real Needs ( customer wants a car whose operating cost islow not the initial price)3Unstated Needs (customer expects good service from dealerdoes not ask for it)4Delight Needs(customer would like to get extra fittings at nocost)5Secret Need (customer wants to be seen a savvy consumerowning the car)

Value SatisfactionValue reflects the perceived tangible and intangible benefits

andcosts to the customersValue is a combination of quality service and price (QSP) called the lsquocustomer value triadrsquoValue increases with quality and decreases with priceMarketing constantly works on increasing and communicatingvalue to the consumersSatisfaction is the cumulative comparative judgements

resultingfrom the productrsquos perceived performance or outcome inrelation to his or her expectations Satisfaction is directlyproportional to expectations and exceeds and decreases with

it

bull Customer value

The Customer delivered value is the difference between total customer value and total customer cost

The total customer value is the bundle of benefits customer expects from a given product or service

Total customer cost is the bundle of costs customers expect to incur in evaluating obtaining using and disposing of the product or service

Now we shall go to the section of how marketing creates value

for the consumerMarketing has to constantly create and deliver value to theconsumerValue we saw in the previous chapter as a sum total oftangible and intangible perceived by the consumer for the

pricethat he paysMarketers must first choose the value delivery process andcommunicate superior value by fine tuning the process

Value delivery process The delivery process has three stages as is explained belowndash First phase choosing the valueThis is the first phase of determining what should be the

valueoffered to the consumerbull Homework before any product is marketedbull Segment the market select the target and develop thevalue positioningbull STP ndash seg targeting positioning is the essence ofmarketingndash Second phase providing the valuebull Developing product features pricing sourcing makingdistributing the product

Third phase communicating the valueUtilise sales force promotion advertising masscommunicationNirmallya Kumar has proposed a 3 V approach to

marketing3Vrsquos Value segmentValue propositionValue networkbull Value segments ndash customers ( hisher needs)bull Value proposition ndash product offeringbull Value network - channel method of delivering thevalue

The concept of Value Chain bull Michael Porterrsquos value chain is a tool

for creating more customer valueAccording to this model every

business gets into nine value creating activities out of which five are primary activities and four are support activities

bull Primary activities bringing materials (inbound logistics) converting them into final products (operations)shipping out final products (outbound logistics)marketing (marketing and sales)servicing (service)bull Support activities procurement HR technologydevelopment and firm infrastructureThe firm constantly examines costs and performance in each ofthese value creating activity and looks for ways to improve thefunction The firm analyses the competitors costs andbenchmarks against which to perform It also establishes lsquo bestpracticesrsquo and makes them industry standards

bull All of these must be aligned to the core businessprocessesbull Today companies are partnering with suppliers anddistributors to create a superior value network or a supplychainThe need for developing Core competenciesbull Core business processes need resources ndash labour powermaterials machines informationbull Nurture resources to gain better competenciesbull Outsource others to reduce overheads and concentrate

onthe core

Holistic marketing framework and customer value

Holistic marketing talks about three key management questions on value

Value exploration Value creation Value delivery

Let us examine each in detail

1048729 Value exploration- Must integrate cognitive space competency of

thecompany and resource space of the organization- Cognitive space includes existing and latent

needs- Competency space understanding scope ofbusiness and physical and knowledge competencies- Resource space partners who can collaborate

withthem

1048729 Value Creation- Marketers must identify the following- Customer benefits- Utilise core competencies- Manage business partners- To realign core competencies - Define the business concept- Reshape the scope of business- Position (re) the companyrsquos identity in peoplersquosminds

1048729 Value Delivery- Customer relationship constantly

understand customer needs- Internal resource management

single family of software to link all business processes

- Business partnership allows to manage complex business relationships

Who MarketsA marketer is someone who has a product service to

offer sell He seeks response from the other party a prospect

theone who receives the message and decides to act upon itMarketers stimulate demand in the marketplace for theircompanyrsquos products demand management is an

importantfunction for any marketing departmentMarketers seek to influence the level of demand time ofdemand and composition of demand

Eight states of demand are possible 1 Negative demand Consumers dislike the

product and may even pay a price to avoid it2 Non Existent demand Consumes may be

unaware or uninterested in the product3 Latent demand Consumers may share a

strong need that cannot be satisfied by an existing product

4 Declining demand Consumers buy less frequently or not

at all5 Irregular demand Consumer purchases vary onoccasional basis seasonal weekly monthly6 Full demand Consumers are adequately purchasingexpected levels of products7 Overfull demand More consumers want the product

butcanrsquot be satisfied8 Unwholesome demand Consumers are attracted toproducts that have undesirable social consequences

What are the tasks of Marketing management

bull Developing marketing strategies and plansbull Capturing marketing insightsbull Connecting with the consumersbull Building strong brandsbull Shaping the market offeringsbull Delivering valuebull Communicating valuebull Creating long term growth

Developing marketing strategies and plansndash Identify long and short term potentialsndash Make strategic and tactical plans

bull Capturing marketing insightsndash Closely monitor marketing environmentndash Gather information both at micro and macro levelsndash Establish marketing information system marketingresearch system marketing implementation systemmarketing control system

Connecting with the consumersndash Develop strong long term relationship withcustomersndash Where what why they buy is to be understoodndash Segment the market and identify the targets in

eachgroupBuilding strong brandsndash Develop products with strong brand namesndash Establish these brands monitor them and keepevaluating them

Understand competitionbull Shaping the market offeringsndash Product quality design shape price

maintenanceafter sales service discounts schemes credit

terms

bull Delivering valuendash Determine channels of distributionndash Make it available within easy reach of the

customers

Communicating valuendash Develop and run marketing communications toinform persuade remind consumers directly orindirectly about the brands they sellndash Develop mass programmes sales promotions directselling public relations interactive marketing andother activitiesbull Creating long term growthndash Initiate programmes to constantly monitor growthndash Product relaunches new product developmentevaluating marketing programmes should beconstantly undertaken

Relationship marketing is the process of building a mutually

healthy and beneficial relationship between the marketer and

the prospectFour key constituents for marketing are customersemployees marketing partners ( channel partners

suppliersdistributors dealers) and members of the financialcommunity(shareholders investors analysts)The outcome of this relationship is building of a strongmarketing network The operating principle of this network

isthatldquobuild the network and profits will followrdquo

A growing number of organizations are customizing offersservices and messages to suit individual needs Thesecompanies collect information on each customers pasttransactions demographics psychographics media anddistribution preferences They hope to capture a large

shareof each customerrsquos expenditures by building high

customerloyalty and focusing on customer lifetime valueThe ability of a company to deal with customers

individuallyhas become possible because of advances in factorycustomization computers internet database marketingsoftware

Integrated MarketingThe marketer has to devise the marketing programs to

createcommunicate and deliver value to the consumersOne traditional depiction of marketing is in terms of themarketing mix

It is a set of marketing tools that the firm uses to pursue its marketing objectives in the target market

McCarthy classified the mix into four broad groups which he

called the 4 Prsquos of Marketing Product Price Promotion Place

Product

Product variety Quality Design Features Brand name Packaging Sizes Services Warranties Returns

Price

List Price Discounts Allowances Payment period Credit terms

Promotion

Sales promotion Advertising Sales force Public relations Direct marketing

Place

Channels Coverage Assortments Locations Inventory Transport

From a sellers point of view each of the component signifies a

tool to influence a buyer

From a buyers view each of this connotes a customer value

Robert Lauterborn suggests that the sellerrsquos 4 Prsquos correspond to

4 Crsquos as followsFour Prsquos Four CrsquosProduct Customer solutionPrice Customer costPlace ConveniencePromotion Communication

A special insightIn this context what needs to be understand is that the 4Prsquos

haveto be added with two more Psrsquo

6Psrsquo make a holistic framework

4Prsquos + 5th P (people) + 6th P (process)People will have to be oriented towards the market place andthe processes will have to be constantly reviewed to ensure

thatevery business action is in sync with the market philosophyOnly when this concept sinks into an organizational approachwill Holistic Marketing have truly been assimilated

Two key themes of integrated marketing are1 Many marketing activities are strung

together to deliver value and customer satisfaction

2 All these activities are co-ordinated to get the maximum effect

An integrated marketing communications strategy involves choosing communications that reinforce and complement each other

Internal MarketingHolistic marketing incorporates internal marketing ensuring thateveryone in the organization embraces appropriate marketingprinciples especially senior managementInternal marketing should work at two levels One between the various marketing functions like salesadvertising product management marketing research mustwork together All these functions must be co-ordinated fromthe customerrsquos point of viewNext the various other departments like production finance Ramp D should also ldquothink customerrdquo Marketing orientation mustbecome pervasive throughout the company

Social Responsibility MarketingHolistic marketing tells us the importance of understandingbroader concerns and the ethical and social issues in thecontext of marketing actions

One should approach issues with lsquohumanistic marketingrsquo andlsquoecological marketingrsquoSocial marketing concept holds that the marketing companyshould deliver value to its target customer in a way better thancompetition does by protecting social and environmental needsand enhance social well beingCause related marketing ie building market relationships witha cause or causes for mutual benefit is what companies aspirefor

Fundamental Marketing Conceptsbull Needs wants demandsbull Value satisfactionbull Segmentation Target markets

Positioningbull Offerings brandsbull Marketing channels Supply chainbull Competitionbull Marketing Environmentbull Planning

Needs Wants DemandsNeeds are basic human requirementsWants are directed to specific objects that satisfy a needDemands are wants for specific products backed by ability toPayThere are five types of needs 1Stated Needs (customer says he wants an inexpensive car)2Real Needs ( customer wants a car whose operating cost islow not the initial price)3Unstated Needs (customer expects good service from dealerdoes not ask for it)4Delight Needs(customer would like to get extra fittings at nocost)5Secret Need (customer wants to be seen a savvy consumerowning the car)

Value SatisfactionValue reflects the perceived tangible and intangible benefits

andcosts to the customersValue is a combination of quality service and price (QSP) called the lsquocustomer value triadrsquoValue increases with quality and decreases with priceMarketing constantly works on increasing and communicatingvalue to the consumersSatisfaction is the cumulative comparative judgements

resultingfrom the productrsquos perceived performance or outcome inrelation to his or her expectations Satisfaction is directlyproportional to expectations and exceeds and decreases with

it

bull Customer value

The Customer delivered value is the difference between total customer value and total customer cost

The total customer value is the bundle of benefits customer expects from a given product or service

Total customer cost is the bundle of costs customers expect to incur in evaluating obtaining using and disposing of the product or service

Now we shall go to the section of how marketing creates value

for the consumerMarketing has to constantly create and deliver value to theconsumerValue we saw in the previous chapter as a sum total oftangible and intangible perceived by the consumer for the

pricethat he paysMarketers must first choose the value delivery process andcommunicate superior value by fine tuning the process

Value delivery process The delivery process has three stages as is explained belowndash First phase choosing the valueThis is the first phase of determining what should be the

valueoffered to the consumerbull Homework before any product is marketedbull Segment the market select the target and develop thevalue positioningbull STP ndash seg targeting positioning is the essence ofmarketingndash Second phase providing the valuebull Developing product features pricing sourcing makingdistributing the product

Third phase communicating the valueUtilise sales force promotion advertising masscommunicationNirmallya Kumar has proposed a 3 V approach to

marketing3Vrsquos Value segmentValue propositionValue networkbull Value segments ndash customers ( hisher needs)bull Value proposition ndash product offeringbull Value network - channel method of delivering thevalue

The concept of Value Chain bull Michael Porterrsquos value chain is a tool

for creating more customer valueAccording to this model every

business gets into nine value creating activities out of which five are primary activities and four are support activities

bull Primary activities bringing materials (inbound logistics) converting them into final products (operations)shipping out final products (outbound logistics)marketing (marketing and sales)servicing (service)bull Support activities procurement HR technologydevelopment and firm infrastructureThe firm constantly examines costs and performance in each ofthese value creating activity and looks for ways to improve thefunction The firm analyses the competitors costs andbenchmarks against which to perform It also establishes lsquo bestpracticesrsquo and makes them industry standards

bull All of these must be aligned to the core businessprocessesbull Today companies are partnering with suppliers anddistributors to create a superior value network or a supplychainThe need for developing Core competenciesbull Core business processes need resources ndash labour powermaterials machines informationbull Nurture resources to gain better competenciesbull Outsource others to reduce overheads and concentrate

onthe core

Holistic marketing framework and customer value

Holistic marketing talks about three key management questions on value

Value exploration Value creation Value delivery

Let us examine each in detail

1048729 Value exploration- Must integrate cognitive space competency of

thecompany and resource space of the organization- Cognitive space includes existing and latent

needs- Competency space understanding scope ofbusiness and physical and knowledge competencies- Resource space partners who can collaborate

withthem

1048729 Value Creation- Marketers must identify the following- Customer benefits- Utilise core competencies- Manage business partners- To realign core competencies - Define the business concept- Reshape the scope of business- Position (re) the companyrsquos identity in peoplersquosminds

1048729 Value Delivery- Customer relationship constantly

understand customer needs- Internal resource management

single family of software to link all business processes

- Business partnership allows to manage complex business relationships

Who MarketsA marketer is someone who has a product service to

offer sell He seeks response from the other party a prospect

theone who receives the message and decides to act upon itMarketers stimulate demand in the marketplace for theircompanyrsquos products demand management is an

importantfunction for any marketing departmentMarketers seek to influence the level of demand time ofdemand and composition of demand

Eight states of demand are possible 1 Negative demand Consumers dislike the

product and may even pay a price to avoid it2 Non Existent demand Consumes may be

unaware or uninterested in the product3 Latent demand Consumers may share a

strong need that cannot be satisfied by an existing product

4 Declining demand Consumers buy less frequently or not

at all5 Irregular demand Consumer purchases vary onoccasional basis seasonal weekly monthly6 Full demand Consumers are adequately purchasingexpected levels of products7 Overfull demand More consumers want the product

butcanrsquot be satisfied8 Unwholesome demand Consumers are attracted toproducts that have undesirable social consequences

What are the tasks of Marketing management

bull Developing marketing strategies and plansbull Capturing marketing insightsbull Connecting with the consumersbull Building strong brandsbull Shaping the market offeringsbull Delivering valuebull Communicating valuebull Creating long term growth

Developing marketing strategies and plansndash Identify long and short term potentialsndash Make strategic and tactical plans

bull Capturing marketing insightsndash Closely monitor marketing environmentndash Gather information both at micro and macro levelsndash Establish marketing information system marketingresearch system marketing implementation systemmarketing control system

Connecting with the consumersndash Develop strong long term relationship withcustomersndash Where what why they buy is to be understoodndash Segment the market and identify the targets in

eachgroupBuilding strong brandsndash Develop products with strong brand namesndash Establish these brands monitor them and keepevaluating them

Understand competitionbull Shaping the market offeringsndash Product quality design shape price

maintenanceafter sales service discounts schemes credit

terms

bull Delivering valuendash Determine channels of distributionndash Make it available within easy reach of the

customers

Communicating valuendash Develop and run marketing communications toinform persuade remind consumers directly orindirectly about the brands they sellndash Develop mass programmes sales promotions directselling public relations interactive marketing andother activitiesbull Creating long term growthndash Initiate programmes to constantly monitor growthndash Product relaunches new product developmentevaluating marketing programmes should beconstantly undertaken

A growing number of organizations are customizing offersservices and messages to suit individual needs Thesecompanies collect information on each customers pasttransactions demographics psychographics media anddistribution preferences They hope to capture a large

shareof each customerrsquos expenditures by building high

customerloyalty and focusing on customer lifetime valueThe ability of a company to deal with customers

individuallyhas become possible because of advances in factorycustomization computers internet database marketingsoftware

Integrated MarketingThe marketer has to devise the marketing programs to

createcommunicate and deliver value to the consumersOne traditional depiction of marketing is in terms of themarketing mix

It is a set of marketing tools that the firm uses to pursue its marketing objectives in the target market

McCarthy classified the mix into four broad groups which he

called the 4 Prsquos of Marketing Product Price Promotion Place

Product

Product variety Quality Design Features Brand name Packaging Sizes Services Warranties Returns

Price

List Price Discounts Allowances Payment period Credit terms

Promotion

Sales promotion Advertising Sales force Public relations Direct marketing

Place

Channels Coverage Assortments Locations Inventory Transport

From a sellers point of view each of the component signifies a

tool to influence a buyer

From a buyers view each of this connotes a customer value

Robert Lauterborn suggests that the sellerrsquos 4 Prsquos correspond to

4 Crsquos as followsFour Prsquos Four CrsquosProduct Customer solutionPrice Customer costPlace ConveniencePromotion Communication

A special insightIn this context what needs to be understand is that the 4Prsquos

haveto be added with two more Psrsquo

6Psrsquo make a holistic framework

4Prsquos + 5th P (people) + 6th P (process)People will have to be oriented towards the market place andthe processes will have to be constantly reviewed to ensure

thatevery business action is in sync with the market philosophyOnly when this concept sinks into an organizational approachwill Holistic Marketing have truly been assimilated

Two key themes of integrated marketing are1 Many marketing activities are strung

together to deliver value and customer satisfaction

2 All these activities are co-ordinated to get the maximum effect

An integrated marketing communications strategy involves choosing communications that reinforce and complement each other

Internal MarketingHolistic marketing incorporates internal marketing ensuring thateveryone in the organization embraces appropriate marketingprinciples especially senior managementInternal marketing should work at two levels One between the various marketing functions like salesadvertising product management marketing research mustwork together All these functions must be co-ordinated fromthe customerrsquos point of viewNext the various other departments like production finance Ramp D should also ldquothink customerrdquo Marketing orientation mustbecome pervasive throughout the company

Social Responsibility MarketingHolistic marketing tells us the importance of understandingbroader concerns and the ethical and social issues in thecontext of marketing actions

One should approach issues with lsquohumanistic marketingrsquo andlsquoecological marketingrsquoSocial marketing concept holds that the marketing companyshould deliver value to its target customer in a way better thancompetition does by protecting social and environmental needsand enhance social well beingCause related marketing ie building market relationships witha cause or causes for mutual benefit is what companies aspirefor

Fundamental Marketing Conceptsbull Needs wants demandsbull Value satisfactionbull Segmentation Target markets

Positioningbull Offerings brandsbull Marketing channels Supply chainbull Competitionbull Marketing Environmentbull Planning

Needs Wants DemandsNeeds are basic human requirementsWants are directed to specific objects that satisfy a needDemands are wants for specific products backed by ability toPayThere are five types of needs 1Stated Needs (customer says he wants an inexpensive car)2Real Needs ( customer wants a car whose operating cost islow not the initial price)3Unstated Needs (customer expects good service from dealerdoes not ask for it)4Delight Needs(customer would like to get extra fittings at nocost)5Secret Need (customer wants to be seen a savvy consumerowning the car)

Value SatisfactionValue reflects the perceived tangible and intangible benefits

andcosts to the customersValue is a combination of quality service and price (QSP) called the lsquocustomer value triadrsquoValue increases with quality and decreases with priceMarketing constantly works on increasing and communicatingvalue to the consumersSatisfaction is the cumulative comparative judgements

resultingfrom the productrsquos perceived performance or outcome inrelation to his or her expectations Satisfaction is directlyproportional to expectations and exceeds and decreases with

it

bull Customer value

The Customer delivered value is the difference between total customer value and total customer cost

The total customer value is the bundle of benefits customer expects from a given product or service

Total customer cost is the bundle of costs customers expect to incur in evaluating obtaining using and disposing of the product or service

Now we shall go to the section of how marketing creates value

for the consumerMarketing has to constantly create and deliver value to theconsumerValue we saw in the previous chapter as a sum total oftangible and intangible perceived by the consumer for the

pricethat he paysMarketers must first choose the value delivery process andcommunicate superior value by fine tuning the process

Value delivery process The delivery process has three stages as is explained belowndash First phase choosing the valueThis is the first phase of determining what should be the

valueoffered to the consumerbull Homework before any product is marketedbull Segment the market select the target and develop thevalue positioningbull STP ndash seg targeting positioning is the essence ofmarketingndash Second phase providing the valuebull Developing product features pricing sourcing makingdistributing the product

Third phase communicating the valueUtilise sales force promotion advertising masscommunicationNirmallya Kumar has proposed a 3 V approach to

marketing3Vrsquos Value segmentValue propositionValue networkbull Value segments ndash customers ( hisher needs)bull Value proposition ndash product offeringbull Value network - channel method of delivering thevalue

The concept of Value Chain bull Michael Porterrsquos value chain is a tool

for creating more customer valueAccording to this model every

business gets into nine value creating activities out of which five are primary activities and four are support activities

bull Primary activities bringing materials (inbound logistics) converting them into final products (operations)shipping out final products (outbound logistics)marketing (marketing and sales)servicing (service)bull Support activities procurement HR technologydevelopment and firm infrastructureThe firm constantly examines costs and performance in each ofthese value creating activity and looks for ways to improve thefunction The firm analyses the competitors costs andbenchmarks against which to perform It also establishes lsquo bestpracticesrsquo and makes them industry standards

bull All of these must be aligned to the core businessprocessesbull Today companies are partnering with suppliers anddistributors to create a superior value network or a supplychainThe need for developing Core competenciesbull Core business processes need resources ndash labour powermaterials machines informationbull Nurture resources to gain better competenciesbull Outsource others to reduce overheads and concentrate

onthe core

Holistic marketing framework and customer value

Holistic marketing talks about three key management questions on value

Value exploration Value creation Value delivery

Let us examine each in detail

1048729 Value exploration- Must integrate cognitive space competency of

thecompany and resource space of the organization- Cognitive space includes existing and latent

needs- Competency space understanding scope ofbusiness and physical and knowledge competencies- Resource space partners who can collaborate

withthem

1048729 Value Creation- Marketers must identify the following- Customer benefits- Utilise core competencies- Manage business partners- To realign core competencies - Define the business concept- Reshape the scope of business- Position (re) the companyrsquos identity in peoplersquosminds

1048729 Value Delivery- Customer relationship constantly

understand customer needs- Internal resource management

single family of software to link all business processes

- Business partnership allows to manage complex business relationships

Who MarketsA marketer is someone who has a product service to

offer sell He seeks response from the other party a prospect

theone who receives the message and decides to act upon itMarketers stimulate demand in the marketplace for theircompanyrsquos products demand management is an

importantfunction for any marketing departmentMarketers seek to influence the level of demand time ofdemand and composition of demand

Eight states of demand are possible 1 Negative demand Consumers dislike the

product and may even pay a price to avoid it2 Non Existent demand Consumes may be

unaware or uninterested in the product3 Latent demand Consumers may share a

strong need that cannot be satisfied by an existing product

4 Declining demand Consumers buy less frequently or not

at all5 Irregular demand Consumer purchases vary onoccasional basis seasonal weekly monthly6 Full demand Consumers are adequately purchasingexpected levels of products7 Overfull demand More consumers want the product

butcanrsquot be satisfied8 Unwholesome demand Consumers are attracted toproducts that have undesirable social consequences

What are the tasks of Marketing management

bull Developing marketing strategies and plansbull Capturing marketing insightsbull Connecting with the consumersbull Building strong brandsbull Shaping the market offeringsbull Delivering valuebull Communicating valuebull Creating long term growth

Developing marketing strategies and plansndash Identify long and short term potentialsndash Make strategic and tactical plans

bull Capturing marketing insightsndash Closely monitor marketing environmentndash Gather information both at micro and macro levelsndash Establish marketing information system marketingresearch system marketing implementation systemmarketing control system

Connecting with the consumersndash Develop strong long term relationship withcustomersndash Where what why they buy is to be understoodndash Segment the market and identify the targets in

eachgroupBuilding strong brandsndash Develop products with strong brand namesndash Establish these brands monitor them and keepevaluating them

Understand competitionbull Shaping the market offeringsndash Product quality design shape price

maintenanceafter sales service discounts schemes credit

terms

bull Delivering valuendash Determine channels of distributionndash Make it available within easy reach of the

customers

Communicating valuendash Develop and run marketing communications toinform persuade remind consumers directly orindirectly about the brands they sellndash Develop mass programmes sales promotions directselling public relations interactive marketing andother activitiesbull Creating long term growthndash Initiate programmes to constantly monitor growthndash Product relaunches new product developmentevaluating marketing programmes should beconstantly undertaken

Integrated MarketingThe marketer has to devise the marketing programs to

createcommunicate and deliver value to the consumersOne traditional depiction of marketing is in terms of themarketing mix

It is a set of marketing tools that the firm uses to pursue its marketing objectives in the target market

McCarthy classified the mix into four broad groups which he

called the 4 Prsquos of Marketing Product Price Promotion Place

Product

Product variety Quality Design Features Brand name Packaging Sizes Services Warranties Returns

Price

List Price Discounts Allowances Payment period Credit terms

Promotion

Sales promotion Advertising Sales force Public relations Direct marketing

Place

Channels Coverage Assortments Locations Inventory Transport

From a sellers point of view each of the component signifies a

tool to influence a buyer

From a buyers view each of this connotes a customer value

Robert Lauterborn suggests that the sellerrsquos 4 Prsquos correspond to

4 Crsquos as followsFour Prsquos Four CrsquosProduct Customer solutionPrice Customer costPlace ConveniencePromotion Communication

A special insightIn this context what needs to be understand is that the 4Prsquos

haveto be added with two more Psrsquo

6Psrsquo make a holistic framework

4Prsquos + 5th P (people) + 6th P (process)People will have to be oriented towards the market place andthe processes will have to be constantly reviewed to ensure

thatevery business action is in sync with the market philosophyOnly when this concept sinks into an organizational approachwill Holistic Marketing have truly been assimilated

Two key themes of integrated marketing are1 Many marketing activities are strung

together to deliver value and customer satisfaction

2 All these activities are co-ordinated to get the maximum effect

An integrated marketing communications strategy involves choosing communications that reinforce and complement each other

Internal MarketingHolistic marketing incorporates internal marketing ensuring thateveryone in the organization embraces appropriate marketingprinciples especially senior managementInternal marketing should work at two levels One between the various marketing functions like salesadvertising product management marketing research mustwork together All these functions must be co-ordinated fromthe customerrsquos point of viewNext the various other departments like production finance Ramp D should also ldquothink customerrdquo Marketing orientation mustbecome pervasive throughout the company

Social Responsibility MarketingHolistic marketing tells us the importance of understandingbroader concerns and the ethical and social issues in thecontext of marketing actions

One should approach issues with lsquohumanistic marketingrsquo andlsquoecological marketingrsquoSocial marketing concept holds that the marketing companyshould deliver value to its target customer in a way better thancompetition does by protecting social and environmental needsand enhance social well beingCause related marketing ie building market relationships witha cause or causes for mutual benefit is what companies aspirefor

Fundamental Marketing Conceptsbull Needs wants demandsbull Value satisfactionbull Segmentation Target markets

Positioningbull Offerings brandsbull Marketing channels Supply chainbull Competitionbull Marketing Environmentbull Planning

Needs Wants DemandsNeeds are basic human requirementsWants are directed to specific objects that satisfy a needDemands are wants for specific products backed by ability toPayThere are five types of needs 1Stated Needs (customer says he wants an inexpensive car)2Real Needs ( customer wants a car whose operating cost islow not the initial price)3Unstated Needs (customer expects good service from dealerdoes not ask for it)4Delight Needs(customer would like to get extra fittings at nocost)5Secret Need (customer wants to be seen a savvy consumerowning the car)

Value SatisfactionValue reflects the perceived tangible and intangible benefits

andcosts to the customersValue is a combination of quality service and price (QSP) called the lsquocustomer value triadrsquoValue increases with quality and decreases with priceMarketing constantly works on increasing and communicatingvalue to the consumersSatisfaction is the cumulative comparative judgements

resultingfrom the productrsquos perceived performance or outcome inrelation to his or her expectations Satisfaction is directlyproportional to expectations and exceeds and decreases with

it

bull Customer value

The Customer delivered value is the difference between total customer value and total customer cost

The total customer value is the bundle of benefits customer expects from a given product or service

Total customer cost is the bundle of costs customers expect to incur in evaluating obtaining using and disposing of the product or service

Now we shall go to the section of how marketing creates value

for the consumerMarketing has to constantly create and deliver value to theconsumerValue we saw in the previous chapter as a sum total oftangible and intangible perceived by the consumer for the

pricethat he paysMarketers must first choose the value delivery process andcommunicate superior value by fine tuning the process

Value delivery process The delivery process has three stages as is explained belowndash First phase choosing the valueThis is the first phase of determining what should be the

valueoffered to the consumerbull Homework before any product is marketedbull Segment the market select the target and develop thevalue positioningbull STP ndash seg targeting positioning is the essence ofmarketingndash Second phase providing the valuebull Developing product features pricing sourcing makingdistributing the product

Third phase communicating the valueUtilise sales force promotion advertising masscommunicationNirmallya Kumar has proposed a 3 V approach to

marketing3Vrsquos Value segmentValue propositionValue networkbull Value segments ndash customers ( hisher needs)bull Value proposition ndash product offeringbull Value network - channel method of delivering thevalue

The concept of Value Chain bull Michael Porterrsquos value chain is a tool

for creating more customer valueAccording to this model every

business gets into nine value creating activities out of which five are primary activities and four are support activities

bull Primary activities bringing materials (inbound logistics) converting them into final products (operations)shipping out final products (outbound logistics)marketing (marketing and sales)servicing (service)bull Support activities procurement HR technologydevelopment and firm infrastructureThe firm constantly examines costs and performance in each ofthese value creating activity and looks for ways to improve thefunction The firm analyses the competitors costs andbenchmarks against which to perform It also establishes lsquo bestpracticesrsquo and makes them industry standards

bull All of these must be aligned to the core businessprocessesbull Today companies are partnering with suppliers anddistributors to create a superior value network or a supplychainThe need for developing Core competenciesbull Core business processes need resources ndash labour powermaterials machines informationbull Nurture resources to gain better competenciesbull Outsource others to reduce overheads and concentrate

onthe core

Holistic marketing framework and customer value

Holistic marketing talks about three key management questions on value

Value exploration Value creation Value delivery

Let us examine each in detail

1048729 Value exploration- Must integrate cognitive space competency of

thecompany and resource space of the organization- Cognitive space includes existing and latent

needs- Competency space understanding scope ofbusiness and physical and knowledge competencies- Resource space partners who can collaborate

withthem

1048729 Value Creation- Marketers must identify the following- Customer benefits- Utilise core competencies- Manage business partners- To realign core competencies - Define the business concept- Reshape the scope of business- Position (re) the companyrsquos identity in peoplersquosminds

1048729 Value Delivery- Customer relationship constantly

understand customer needs- Internal resource management

single family of software to link all business processes

- Business partnership allows to manage complex business relationships

Who MarketsA marketer is someone who has a product service to

offer sell He seeks response from the other party a prospect

theone who receives the message and decides to act upon itMarketers stimulate demand in the marketplace for theircompanyrsquos products demand management is an

importantfunction for any marketing departmentMarketers seek to influence the level of demand time ofdemand and composition of demand

Eight states of demand are possible 1 Negative demand Consumers dislike the

product and may even pay a price to avoid it2 Non Existent demand Consumes may be

unaware or uninterested in the product3 Latent demand Consumers may share a

strong need that cannot be satisfied by an existing product

4 Declining demand Consumers buy less frequently or not

at all5 Irregular demand Consumer purchases vary onoccasional basis seasonal weekly monthly6 Full demand Consumers are adequately purchasingexpected levels of products7 Overfull demand More consumers want the product

butcanrsquot be satisfied8 Unwholesome demand Consumers are attracted toproducts that have undesirable social consequences

What are the tasks of Marketing management

bull Developing marketing strategies and plansbull Capturing marketing insightsbull Connecting with the consumersbull Building strong brandsbull Shaping the market offeringsbull Delivering valuebull Communicating valuebull Creating long term growth

Developing marketing strategies and plansndash Identify long and short term potentialsndash Make strategic and tactical plans

bull Capturing marketing insightsndash Closely monitor marketing environmentndash Gather information both at micro and macro levelsndash Establish marketing information system marketingresearch system marketing implementation systemmarketing control system

Connecting with the consumersndash Develop strong long term relationship withcustomersndash Where what why they buy is to be understoodndash Segment the market and identify the targets in

eachgroupBuilding strong brandsndash Develop products with strong brand namesndash Establish these brands monitor them and keepevaluating them

Understand competitionbull Shaping the market offeringsndash Product quality design shape price

maintenanceafter sales service discounts schemes credit

terms

bull Delivering valuendash Determine channels of distributionndash Make it available within easy reach of the

customers

Communicating valuendash Develop and run marketing communications toinform persuade remind consumers directly orindirectly about the brands they sellndash Develop mass programmes sales promotions directselling public relations interactive marketing andother activitiesbull Creating long term growthndash Initiate programmes to constantly monitor growthndash Product relaunches new product developmentevaluating marketing programmes should beconstantly undertaken

Product

Product variety Quality Design Features Brand name Packaging Sizes Services Warranties Returns

Price

List Price Discounts Allowances Payment period Credit terms

Promotion

Sales promotion Advertising Sales force Public relations Direct marketing

Place

Channels Coverage Assortments Locations Inventory Transport

From a sellers point of view each of the component signifies a

tool to influence a buyer

From a buyers view each of this connotes a customer value

Robert Lauterborn suggests that the sellerrsquos 4 Prsquos correspond to

4 Crsquos as followsFour Prsquos Four CrsquosProduct Customer solutionPrice Customer costPlace ConveniencePromotion Communication

A special insightIn this context what needs to be understand is that the 4Prsquos

haveto be added with two more Psrsquo

6Psrsquo make a holistic framework

4Prsquos + 5th P (people) + 6th P (process)People will have to be oriented towards the market place andthe processes will have to be constantly reviewed to ensure

thatevery business action is in sync with the market philosophyOnly when this concept sinks into an organizational approachwill Holistic Marketing have truly been assimilated

Two key themes of integrated marketing are1 Many marketing activities are strung

together to deliver value and customer satisfaction

2 All these activities are co-ordinated to get the maximum effect

An integrated marketing communications strategy involves choosing communications that reinforce and complement each other

Internal MarketingHolistic marketing incorporates internal marketing ensuring thateveryone in the organization embraces appropriate marketingprinciples especially senior managementInternal marketing should work at two levels One between the various marketing functions like salesadvertising product management marketing research mustwork together All these functions must be co-ordinated fromthe customerrsquos point of viewNext the various other departments like production finance Ramp D should also ldquothink customerrdquo Marketing orientation mustbecome pervasive throughout the company

Social Responsibility MarketingHolistic marketing tells us the importance of understandingbroader concerns and the ethical and social issues in thecontext of marketing actions

One should approach issues with lsquohumanistic marketingrsquo andlsquoecological marketingrsquoSocial marketing concept holds that the marketing companyshould deliver value to its target customer in a way better thancompetition does by protecting social and environmental needsand enhance social well beingCause related marketing ie building market relationships witha cause or causes for mutual benefit is what companies aspirefor

Fundamental Marketing Conceptsbull Needs wants demandsbull Value satisfactionbull Segmentation Target markets

Positioningbull Offerings brandsbull Marketing channels Supply chainbull Competitionbull Marketing Environmentbull Planning

Needs Wants DemandsNeeds are basic human requirementsWants are directed to specific objects that satisfy a needDemands are wants for specific products backed by ability toPayThere are five types of needs 1Stated Needs (customer says he wants an inexpensive car)2Real Needs ( customer wants a car whose operating cost islow not the initial price)3Unstated Needs (customer expects good service from dealerdoes not ask for it)4Delight Needs(customer would like to get extra fittings at nocost)5Secret Need (customer wants to be seen a savvy consumerowning the car)

Value SatisfactionValue reflects the perceived tangible and intangible benefits

andcosts to the customersValue is a combination of quality service and price (QSP) called the lsquocustomer value triadrsquoValue increases with quality and decreases with priceMarketing constantly works on increasing and communicatingvalue to the consumersSatisfaction is the cumulative comparative judgements

resultingfrom the productrsquos perceived performance or outcome inrelation to his or her expectations Satisfaction is directlyproportional to expectations and exceeds and decreases with

it

bull Customer value

The Customer delivered value is the difference between total customer value and total customer cost

The total customer value is the bundle of benefits customer expects from a given product or service

Total customer cost is the bundle of costs customers expect to incur in evaluating obtaining using and disposing of the product or service

Now we shall go to the section of how marketing creates value

for the consumerMarketing has to constantly create and deliver value to theconsumerValue we saw in the previous chapter as a sum total oftangible and intangible perceived by the consumer for the

pricethat he paysMarketers must first choose the value delivery process andcommunicate superior value by fine tuning the process

Value delivery process The delivery process has three stages as is explained belowndash First phase choosing the valueThis is the first phase of determining what should be the

valueoffered to the consumerbull Homework before any product is marketedbull Segment the market select the target and develop thevalue positioningbull STP ndash seg targeting positioning is the essence ofmarketingndash Second phase providing the valuebull Developing product features pricing sourcing makingdistributing the product

Third phase communicating the valueUtilise sales force promotion advertising masscommunicationNirmallya Kumar has proposed a 3 V approach to

marketing3Vrsquos Value segmentValue propositionValue networkbull Value segments ndash customers ( hisher needs)bull Value proposition ndash product offeringbull Value network - channel method of delivering thevalue

The concept of Value Chain bull Michael Porterrsquos value chain is a tool

for creating more customer valueAccording to this model every

business gets into nine value creating activities out of which five are primary activities and four are support activities

bull Primary activities bringing materials (inbound logistics) converting them into final products (operations)shipping out final products (outbound logistics)marketing (marketing and sales)servicing (service)bull Support activities procurement HR technologydevelopment and firm infrastructureThe firm constantly examines costs and performance in each ofthese value creating activity and looks for ways to improve thefunction The firm analyses the competitors costs andbenchmarks against which to perform It also establishes lsquo bestpracticesrsquo and makes them industry standards

bull All of these must be aligned to the core businessprocessesbull Today companies are partnering with suppliers anddistributors to create a superior value network or a supplychainThe need for developing Core competenciesbull Core business processes need resources ndash labour powermaterials machines informationbull Nurture resources to gain better competenciesbull Outsource others to reduce overheads and concentrate

onthe core

Holistic marketing framework and customer value

Holistic marketing talks about three key management questions on value

Value exploration Value creation Value delivery

Let us examine each in detail

1048729 Value exploration- Must integrate cognitive space competency of

thecompany and resource space of the organization- Cognitive space includes existing and latent

needs- Competency space understanding scope ofbusiness and physical and knowledge competencies- Resource space partners who can collaborate

withthem

1048729 Value Creation- Marketers must identify the following- Customer benefits- Utilise core competencies- Manage business partners- To realign core competencies - Define the business concept- Reshape the scope of business- Position (re) the companyrsquos identity in peoplersquosminds

1048729 Value Delivery- Customer relationship constantly

understand customer needs- Internal resource management

single family of software to link all business processes

- Business partnership allows to manage complex business relationships

Who MarketsA marketer is someone who has a product service to

offer sell He seeks response from the other party a prospect

theone who receives the message and decides to act upon itMarketers stimulate demand in the marketplace for theircompanyrsquos products demand management is an

importantfunction for any marketing departmentMarketers seek to influence the level of demand time ofdemand and composition of demand

Eight states of demand are possible 1 Negative demand Consumers dislike the

product and may even pay a price to avoid it2 Non Existent demand Consumes may be

unaware or uninterested in the product3 Latent demand Consumers may share a

strong need that cannot be satisfied by an existing product

4 Declining demand Consumers buy less frequently or not

at all5 Irregular demand Consumer purchases vary onoccasional basis seasonal weekly monthly6 Full demand Consumers are adequately purchasingexpected levels of products7 Overfull demand More consumers want the product

butcanrsquot be satisfied8 Unwholesome demand Consumers are attracted toproducts that have undesirable social consequences

What are the tasks of Marketing management

bull Developing marketing strategies and plansbull Capturing marketing insightsbull Connecting with the consumersbull Building strong brandsbull Shaping the market offeringsbull Delivering valuebull Communicating valuebull Creating long term growth

Developing marketing strategies and plansndash Identify long and short term potentialsndash Make strategic and tactical plans

bull Capturing marketing insightsndash Closely monitor marketing environmentndash Gather information both at micro and macro levelsndash Establish marketing information system marketingresearch system marketing implementation systemmarketing control system

Connecting with the consumersndash Develop strong long term relationship withcustomersndash Where what why they buy is to be understoodndash Segment the market and identify the targets in

eachgroupBuilding strong brandsndash Develop products with strong brand namesndash Establish these brands monitor them and keepevaluating them

Understand competitionbull Shaping the market offeringsndash Product quality design shape price

maintenanceafter sales service discounts schemes credit

terms

bull Delivering valuendash Determine channels of distributionndash Make it available within easy reach of the

customers

Communicating valuendash Develop and run marketing communications toinform persuade remind consumers directly orindirectly about the brands they sellndash Develop mass programmes sales promotions directselling public relations interactive marketing andother activitiesbull Creating long term growthndash Initiate programmes to constantly monitor growthndash Product relaunches new product developmentevaluating marketing programmes should beconstantly undertaken

Price

List Price Discounts Allowances Payment period Credit terms

Promotion

Sales promotion Advertising Sales force Public relations Direct marketing

Place

Channels Coverage Assortments Locations Inventory Transport

From a sellers point of view each of the component signifies a

tool to influence a buyer

From a buyers view each of this connotes a customer value

Robert Lauterborn suggests that the sellerrsquos 4 Prsquos correspond to

4 Crsquos as followsFour Prsquos Four CrsquosProduct Customer solutionPrice Customer costPlace ConveniencePromotion Communication

A special insightIn this context what needs to be understand is that the 4Prsquos

haveto be added with two more Psrsquo

6Psrsquo make a holistic framework

4Prsquos + 5th P (people) + 6th P (process)People will have to be oriented towards the market place andthe processes will have to be constantly reviewed to ensure

thatevery business action is in sync with the market philosophyOnly when this concept sinks into an organizational approachwill Holistic Marketing have truly been assimilated

Two key themes of integrated marketing are1 Many marketing activities are strung

together to deliver value and customer satisfaction

2 All these activities are co-ordinated to get the maximum effect

An integrated marketing communications strategy involves choosing communications that reinforce and complement each other

Internal MarketingHolistic marketing incorporates internal marketing ensuring thateveryone in the organization embraces appropriate marketingprinciples especially senior managementInternal marketing should work at two levels One between the various marketing functions like salesadvertising product management marketing research mustwork together All these functions must be co-ordinated fromthe customerrsquos point of viewNext the various other departments like production finance Ramp D should also ldquothink customerrdquo Marketing orientation mustbecome pervasive throughout the company

Social Responsibility MarketingHolistic marketing tells us the importance of understandingbroader concerns and the ethical and social issues in thecontext of marketing actions

One should approach issues with lsquohumanistic marketingrsquo andlsquoecological marketingrsquoSocial marketing concept holds that the marketing companyshould deliver value to its target customer in a way better thancompetition does by protecting social and environmental needsand enhance social well beingCause related marketing ie building market relationships witha cause or causes for mutual benefit is what companies aspirefor

Fundamental Marketing Conceptsbull Needs wants demandsbull Value satisfactionbull Segmentation Target markets

Positioningbull Offerings brandsbull Marketing channels Supply chainbull Competitionbull Marketing Environmentbull Planning

Needs Wants DemandsNeeds are basic human requirementsWants are directed to specific objects that satisfy a needDemands are wants for specific products backed by ability toPayThere are five types of needs 1Stated Needs (customer says he wants an inexpensive car)2Real Needs ( customer wants a car whose operating cost islow not the initial price)3Unstated Needs (customer expects good service from dealerdoes not ask for it)4Delight Needs(customer would like to get extra fittings at nocost)5Secret Need (customer wants to be seen a savvy consumerowning the car)

Value SatisfactionValue reflects the perceived tangible and intangible benefits

andcosts to the customersValue is a combination of quality service and price (QSP) called the lsquocustomer value triadrsquoValue increases with quality and decreases with priceMarketing constantly works on increasing and communicatingvalue to the consumersSatisfaction is the cumulative comparative judgements

resultingfrom the productrsquos perceived performance or outcome inrelation to his or her expectations Satisfaction is directlyproportional to expectations and exceeds and decreases with

it

bull Customer value

The Customer delivered value is the difference between total customer value and total customer cost

The total customer value is the bundle of benefits customer expects from a given product or service

Total customer cost is the bundle of costs customers expect to incur in evaluating obtaining using and disposing of the product or service

Now we shall go to the section of how marketing creates value

for the consumerMarketing has to constantly create and deliver value to theconsumerValue we saw in the previous chapter as a sum total oftangible and intangible perceived by the consumer for the

pricethat he paysMarketers must first choose the value delivery process andcommunicate superior value by fine tuning the process

Value delivery process The delivery process has three stages as is explained belowndash First phase choosing the valueThis is the first phase of determining what should be the

valueoffered to the consumerbull Homework before any product is marketedbull Segment the market select the target and develop thevalue positioningbull STP ndash seg targeting positioning is the essence ofmarketingndash Second phase providing the valuebull Developing product features pricing sourcing makingdistributing the product

Third phase communicating the valueUtilise sales force promotion advertising masscommunicationNirmallya Kumar has proposed a 3 V approach to

marketing3Vrsquos Value segmentValue propositionValue networkbull Value segments ndash customers ( hisher needs)bull Value proposition ndash product offeringbull Value network - channel method of delivering thevalue

The concept of Value Chain bull Michael Porterrsquos value chain is a tool

for creating more customer valueAccording to this model every

business gets into nine value creating activities out of which five are primary activities and four are support activities

bull Primary activities bringing materials (inbound logistics) converting them into final products (operations)shipping out final products (outbound logistics)marketing (marketing and sales)servicing (service)bull Support activities procurement HR technologydevelopment and firm infrastructureThe firm constantly examines costs and performance in each ofthese value creating activity and looks for ways to improve thefunction The firm analyses the competitors costs andbenchmarks against which to perform It also establishes lsquo bestpracticesrsquo and makes them industry standards

bull All of these must be aligned to the core businessprocessesbull Today companies are partnering with suppliers anddistributors to create a superior value network or a supplychainThe need for developing Core competenciesbull Core business processes need resources ndash labour powermaterials machines informationbull Nurture resources to gain better competenciesbull Outsource others to reduce overheads and concentrate

onthe core

Holistic marketing framework and customer value

Holistic marketing talks about three key management questions on value

Value exploration Value creation Value delivery

Let us examine each in detail

1048729 Value exploration- Must integrate cognitive space competency of

thecompany and resource space of the organization- Cognitive space includes existing and latent

needs- Competency space understanding scope ofbusiness and physical and knowledge competencies- Resource space partners who can collaborate

withthem

1048729 Value Creation- Marketers must identify the following- Customer benefits- Utilise core competencies- Manage business partners- To realign core competencies - Define the business concept- Reshape the scope of business- Position (re) the companyrsquos identity in peoplersquosminds

1048729 Value Delivery- Customer relationship constantly

understand customer needs- Internal resource management

single family of software to link all business processes

- Business partnership allows to manage complex business relationships

Who MarketsA marketer is someone who has a product service to

offer sell He seeks response from the other party a prospect

theone who receives the message and decides to act upon itMarketers stimulate demand in the marketplace for theircompanyrsquos products demand management is an

importantfunction for any marketing departmentMarketers seek to influence the level of demand time ofdemand and composition of demand

Eight states of demand are possible 1 Negative demand Consumers dislike the

product and may even pay a price to avoid it2 Non Existent demand Consumes may be

unaware or uninterested in the product3 Latent demand Consumers may share a

strong need that cannot be satisfied by an existing product

4 Declining demand Consumers buy less frequently or not

at all5 Irregular demand Consumer purchases vary onoccasional basis seasonal weekly monthly6 Full demand Consumers are adequately purchasingexpected levels of products7 Overfull demand More consumers want the product

butcanrsquot be satisfied8 Unwholesome demand Consumers are attracted toproducts that have undesirable social consequences

What are the tasks of Marketing management

bull Developing marketing strategies and plansbull Capturing marketing insightsbull Connecting with the consumersbull Building strong brandsbull Shaping the market offeringsbull Delivering valuebull Communicating valuebull Creating long term growth

Developing marketing strategies and plansndash Identify long and short term potentialsndash Make strategic and tactical plans

bull Capturing marketing insightsndash Closely monitor marketing environmentndash Gather information both at micro and macro levelsndash Establish marketing information system marketingresearch system marketing implementation systemmarketing control system

Connecting with the consumersndash Develop strong long term relationship withcustomersndash Where what why they buy is to be understoodndash Segment the market and identify the targets in

eachgroupBuilding strong brandsndash Develop products with strong brand namesndash Establish these brands monitor them and keepevaluating them

Understand competitionbull Shaping the market offeringsndash Product quality design shape price

maintenanceafter sales service discounts schemes credit

terms

bull Delivering valuendash Determine channels of distributionndash Make it available within easy reach of the

customers

Communicating valuendash Develop and run marketing communications toinform persuade remind consumers directly orindirectly about the brands they sellndash Develop mass programmes sales promotions directselling public relations interactive marketing andother activitiesbull Creating long term growthndash Initiate programmes to constantly monitor growthndash Product relaunches new product developmentevaluating marketing programmes should beconstantly undertaken

Promotion

Sales promotion Advertising Sales force Public relations Direct marketing

Place

Channels Coverage Assortments Locations Inventory Transport

From a sellers point of view each of the component signifies a

tool to influence a buyer

From a buyers view each of this connotes a customer value

Robert Lauterborn suggests that the sellerrsquos 4 Prsquos correspond to

4 Crsquos as followsFour Prsquos Four CrsquosProduct Customer solutionPrice Customer costPlace ConveniencePromotion Communication

A special insightIn this context what needs to be understand is that the 4Prsquos

haveto be added with two more Psrsquo

6Psrsquo make a holistic framework

4Prsquos + 5th P (people) + 6th P (process)People will have to be oriented towards the market place andthe processes will have to be constantly reviewed to ensure

thatevery business action is in sync with the market philosophyOnly when this concept sinks into an organizational approachwill Holistic Marketing have truly been assimilated

Two key themes of integrated marketing are1 Many marketing activities are strung

together to deliver value and customer satisfaction

2 All these activities are co-ordinated to get the maximum effect

An integrated marketing communications strategy involves choosing communications that reinforce and complement each other

Internal MarketingHolistic marketing incorporates internal marketing ensuring thateveryone in the organization embraces appropriate marketingprinciples especially senior managementInternal marketing should work at two levels One between the various marketing functions like salesadvertising product management marketing research mustwork together All these functions must be co-ordinated fromthe customerrsquos point of viewNext the various other departments like production finance Ramp D should also ldquothink customerrdquo Marketing orientation mustbecome pervasive throughout the company

Social Responsibility MarketingHolistic marketing tells us the importance of understandingbroader concerns and the ethical and social issues in thecontext of marketing actions

One should approach issues with lsquohumanistic marketingrsquo andlsquoecological marketingrsquoSocial marketing concept holds that the marketing companyshould deliver value to its target customer in a way better thancompetition does by protecting social and environmental needsand enhance social well beingCause related marketing ie building market relationships witha cause or causes for mutual benefit is what companies aspirefor

Fundamental Marketing Conceptsbull Needs wants demandsbull Value satisfactionbull Segmentation Target markets

Positioningbull Offerings brandsbull Marketing channels Supply chainbull Competitionbull Marketing Environmentbull Planning

Needs Wants DemandsNeeds are basic human requirementsWants are directed to specific objects that satisfy a needDemands are wants for specific products backed by ability toPayThere are five types of needs 1Stated Needs (customer says he wants an inexpensive car)2Real Needs ( customer wants a car whose operating cost islow not the initial price)3Unstated Needs (customer expects good service from dealerdoes not ask for it)4Delight Needs(customer would like to get extra fittings at nocost)5Secret Need (customer wants to be seen a savvy consumerowning the car)

Value SatisfactionValue reflects the perceived tangible and intangible benefits

andcosts to the customersValue is a combination of quality service and price (QSP) called the lsquocustomer value triadrsquoValue increases with quality and decreases with priceMarketing constantly works on increasing and communicatingvalue to the consumersSatisfaction is the cumulative comparative judgements

resultingfrom the productrsquos perceived performance or outcome inrelation to his or her expectations Satisfaction is directlyproportional to expectations and exceeds and decreases with

it

bull Customer value

The Customer delivered value is the difference between total customer value and total customer cost

The total customer value is the bundle of benefits customer expects from a given product or service

Total customer cost is the bundle of costs customers expect to incur in evaluating obtaining using and disposing of the product or service

Now we shall go to the section of how marketing creates value

for the consumerMarketing has to constantly create and deliver value to theconsumerValue we saw in the previous chapter as a sum total oftangible and intangible perceived by the consumer for the

pricethat he paysMarketers must first choose the value delivery process andcommunicate superior value by fine tuning the process

Value delivery process The delivery process has three stages as is explained belowndash First phase choosing the valueThis is the first phase of determining what should be the

valueoffered to the consumerbull Homework before any product is marketedbull Segment the market select the target and develop thevalue positioningbull STP ndash seg targeting positioning is the essence ofmarketingndash Second phase providing the valuebull Developing product features pricing sourcing makingdistributing the product

Third phase communicating the valueUtilise sales force promotion advertising masscommunicationNirmallya Kumar has proposed a 3 V approach to

marketing3Vrsquos Value segmentValue propositionValue networkbull Value segments ndash customers ( hisher needs)bull Value proposition ndash product offeringbull Value network - channel method of delivering thevalue

The concept of Value Chain bull Michael Porterrsquos value chain is a tool

for creating more customer valueAccording to this model every

business gets into nine value creating activities out of which five are primary activities and four are support activities

bull Primary activities bringing materials (inbound logistics) converting them into final products (operations)shipping out final products (outbound logistics)marketing (marketing and sales)servicing (service)bull Support activities procurement HR technologydevelopment and firm infrastructureThe firm constantly examines costs and performance in each ofthese value creating activity and looks for ways to improve thefunction The firm analyses the competitors costs andbenchmarks against which to perform It also establishes lsquo bestpracticesrsquo and makes them industry standards

bull All of these must be aligned to the core businessprocessesbull Today companies are partnering with suppliers anddistributors to create a superior value network or a supplychainThe need for developing Core competenciesbull Core business processes need resources ndash labour powermaterials machines informationbull Nurture resources to gain better competenciesbull Outsource others to reduce overheads and concentrate

onthe core

Holistic marketing framework and customer value

Holistic marketing talks about three key management questions on value

Value exploration Value creation Value delivery

Let us examine each in detail

1048729 Value exploration- Must integrate cognitive space competency of

thecompany and resource space of the organization- Cognitive space includes existing and latent

needs- Competency space understanding scope ofbusiness and physical and knowledge competencies- Resource space partners who can collaborate

withthem

1048729 Value Creation- Marketers must identify the following- Customer benefits- Utilise core competencies- Manage business partners- To realign core competencies - Define the business concept- Reshape the scope of business- Position (re) the companyrsquos identity in peoplersquosminds

1048729 Value Delivery- Customer relationship constantly

understand customer needs- Internal resource management

single family of software to link all business processes

- Business partnership allows to manage complex business relationships

Who MarketsA marketer is someone who has a product service to

offer sell He seeks response from the other party a prospect

theone who receives the message and decides to act upon itMarketers stimulate demand in the marketplace for theircompanyrsquos products demand management is an

importantfunction for any marketing departmentMarketers seek to influence the level of demand time ofdemand and composition of demand

Eight states of demand are possible 1 Negative demand Consumers dislike the

product and may even pay a price to avoid it2 Non Existent demand Consumes may be

unaware or uninterested in the product3 Latent demand Consumers may share a

strong need that cannot be satisfied by an existing product

4 Declining demand Consumers buy less frequently or not

at all5 Irregular demand Consumer purchases vary onoccasional basis seasonal weekly monthly6 Full demand Consumers are adequately purchasingexpected levels of products7 Overfull demand More consumers want the product

butcanrsquot be satisfied8 Unwholesome demand Consumers are attracted toproducts that have undesirable social consequences

What are the tasks of Marketing management

bull Developing marketing strategies and plansbull Capturing marketing insightsbull Connecting with the consumersbull Building strong brandsbull Shaping the market offeringsbull Delivering valuebull Communicating valuebull Creating long term growth

Developing marketing strategies and plansndash Identify long and short term potentialsndash Make strategic and tactical plans

bull Capturing marketing insightsndash Closely monitor marketing environmentndash Gather information both at micro and macro levelsndash Establish marketing information system marketingresearch system marketing implementation systemmarketing control system

Connecting with the consumersndash Develop strong long term relationship withcustomersndash Where what why they buy is to be understoodndash Segment the market and identify the targets in

eachgroupBuilding strong brandsndash Develop products with strong brand namesndash Establish these brands monitor them and keepevaluating them

Understand competitionbull Shaping the market offeringsndash Product quality design shape price

maintenanceafter sales service discounts schemes credit

terms

bull Delivering valuendash Determine channels of distributionndash Make it available within easy reach of the

customers

Communicating valuendash Develop and run marketing communications toinform persuade remind consumers directly orindirectly about the brands they sellndash Develop mass programmes sales promotions directselling public relations interactive marketing andother activitiesbull Creating long term growthndash Initiate programmes to constantly monitor growthndash Product relaunches new product developmentevaluating marketing programmes should beconstantly undertaken

Place

Channels Coverage Assortments Locations Inventory Transport

From a sellers point of view each of the component signifies a

tool to influence a buyer

From a buyers view each of this connotes a customer value

Robert Lauterborn suggests that the sellerrsquos 4 Prsquos correspond to

4 Crsquos as followsFour Prsquos Four CrsquosProduct Customer solutionPrice Customer costPlace ConveniencePromotion Communication

A special insightIn this context what needs to be understand is that the 4Prsquos

haveto be added with two more Psrsquo

6Psrsquo make a holistic framework

4Prsquos + 5th P (people) + 6th P (process)People will have to be oriented towards the market place andthe processes will have to be constantly reviewed to ensure

thatevery business action is in sync with the market philosophyOnly when this concept sinks into an organizational approachwill Holistic Marketing have truly been assimilated

Two key themes of integrated marketing are1 Many marketing activities are strung

together to deliver value and customer satisfaction

2 All these activities are co-ordinated to get the maximum effect

An integrated marketing communications strategy involves choosing communications that reinforce and complement each other

Internal MarketingHolistic marketing incorporates internal marketing ensuring thateveryone in the organization embraces appropriate marketingprinciples especially senior managementInternal marketing should work at two levels One between the various marketing functions like salesadvertising product management marketing research mustwork together All these functions must be co-ordinated fromthe customerrsquos point of viewNext the various other departments like production finance Ramp D should also ldquothink customerrdquo Marketing orientation mustbecome pervasive throughout the company

Social Responsibility MarketingHolistic marketing tells us the importance of understandingbroader concerns and the ethical and social issues in thecontext of marketing actions

One should approach issues with lsquohumanistic marketingrsquo andlsquoecological marketingrsquoSocial marketing concept holds that the marketing companyshould deliver value to its target customer in a way better thancompetition does by protecting social and environmental needsand enhance social well beingCause related marketing ie building market relationships witha cause or causes for mutual benefit is what companies aspirefor

Fundamental Marketing Conceptsbull Needs wants demandsbull Value satisfactionbull Segmentation Target markets

Positioningbull Offerings brandsbull Marketing channels Supply chainbull Competitionbull Marketing Environmentbull Planning

Needs Wants DemandsNeeds are basic human requirementsWants are directed to specific objects that satisfy a needDemands are wants for specific products backed by ability toPayThere are five types of needs 1Stated Needs (customer says he wants an inexpensive car)2Real Needs ( customer wants a car whose operating cost islow not the initial price)3Unstated Needs (customer expects good service from dealerdoes not ask for it)4Delight Needs(customer would like to get extra fittings at nocost)5Secret Need (customer wants to be seen a savvy consumerowning the car)

Value SatisfactionValue reflects the perceived tangible and intangible benefits

andcosts to the customersValue is a combination of quality service and price (QSP) called the lsquocustomer value triadrsquoValue increases with quality and decreases with priceMarketing constantly works on increasing and communicatingvalue to the consumersSatisfaction is the cumulative comparative judgements

resultingfrom the productrsquos perceived performance or outcome inrelation to his or her expectations Satisfaction is directlyproportional to expectations and exceeds and decreases with

it

bull Customer value

The Customer delivered value is the difference between total customer value and total customer cost

The total customer value is the bundle of benefits customer expects from a given product or service

Total customer cost is the bundle of costs customers expect to incur in evaluating obtaining using and disposing of the product or service

Now we shall go to the section of how marketing creates value

for the consumerMarketing has to constantly create and deliver value to theconsumerValue we saw in the previous chapter as a sum total oftangible and intangible perceived by the consumer for the

pricethat he paysMarketers must first choose the value delivery process andcommunicate superior value by fine tuning the process

Value delivery process The delivery process has three stages as is explained belowndash First phase choosing the valueThis is the first phase of determining what should be the

valueoffered to the consumerbull Homework before any product is marketedbull Segment the market select the target and develop thevalue positioningbull STP ndash seg targeting positioning is the essence ofmarketingndash Second phase providing the valuebull Developing product features pricing sourcing makingdistributing the product

Third phase communicating the valueUtilise sales force promotion advertising masscommunicationNirmallya Kumar has proposed a 3 V approach to

marketing3Vrsquos Value segmentValue propositionValue networkbull Value segments ndash customers ( hisher needs)bull Value proposition ndash product offeringbull Value network - channel method of delivering thevalue

The concept of Value Chain bull Michael Porterrsquos value chain is a tool

for creating more customer valueAccording to this model every

business gets into nine value creating activities out of which five are primary activities and four are support activities

bull Primary activities bringing materials (inbound logistics) converting them into final products (operations)shipping out final products (outbound logistics)marketing (marketing and sales)servicing (service)bull Support activities procurement HR technologydevelopment and firm infrastructureThe firm constantly examines costs and performance in each ofthese value creating activity and looks for ways to improve thefunction The firm analyses the competitors costs andbenchmarks against which to perform It also establishes lsquo bestpracticesrsquo and makes them industry standards

bull All of these must be aligned to the core businessprocessesbull Today companies are partnering with suppliers anddistributors to create a superior value network or a supplychainThe need for developing Core competenciesbull Core business processes need resources ndash labour powermaterials machines informationbull Nurture resources to gain better competenciesbull Outsource others to reduce overheads and concentrate

onthe core

Holistic marketing framework and customer value

Holistic marketing talks about three key management questions on value

Value exploration Value creation Value delivery

Let us examine each in detail

1048729 Value exploration- Must integrate cognitive space competency of

thecompany and resource space of the organization- Cognitive space includes existing and latent

needs- Competency space understanding scope ofbusiness and physical and knowledge competencies- Resource space partners who can collaborate

withthem

1048729 Value Creation- Marketers must identify the following- Customer benefits- Utilise core competencies- Manage business partners- To realign core competencies - Define the business concept- Reshape the scope of business- Position (re) the companyrsquos identity in peoplersquosminds

1048729 Value Delivery- Customer relationship constantly

understand customer needs- Internal resource management

single family of software to link all business processes

- Business partnership allows to manage complex business relationships

Who MarketsA marketer is someone who has a product service to

offer sell He seeks response from the other party a prospect

theone who receives the message and decides to act upon itMarketers stimulate demand in the marketplace for theircompanyrsquos products demand management is an

importantfunction for any marketing departmentMarketers seek to influence the level of demand time ofdemand and composition of demand

Eight states of demand are possible 1 Negative demand Consumers dislike the

product and may even pay a price to avoid it2 Non Existent demand Consumes may be

unaware or uninterested in the product3 Latent demand Consumers may share a

strong need that cannot be satisfied by an existing product

4 Declining demand Consumers buy less frequently or not

at all5 Irregular demand Consumer purchases vary onoccasional basis seasonal weekly monthly6 Full demand Consumers are adequately purchasingexpected levels of products7 Overfull demand More consumers want the product

butcanrsquot be satisfied8 Unwholesome demand Consumers are attracted toproducts that have undesirable social consequences

What are the tasks of Marketing management

bull Developing marketing strategies and plansbull Capturing marketing insightsbull Connecting with the consumersbull Building strong brandsbull Shaping the market offeringsbull Delivering valuebull Communicating valuebull Creating long term growth

Developing marketing strategies and plansndash Identify long and short term potentialsndash Make strategic and tactical plans

bull Capturing marketing insightsndash Closely monitor marketing environmentndash Gather information both at micro and macro levelsndash Establish marketing information system marketingresearch system marketing implementation systemmarketing control system

Connecting with the consumersndash Develop strong long term relationship withcustomersndash Where what why they buy is to be understoodndash Segment the market and identify the targets in

eachgroupBuilding strong brandsndash Develop products with strong brand namesndash Establish these brands monitor them and keepevaluating them

Understand competitionbull Shaping the market offeringsndash Product quality design shape price

maintenanceafter sales service discounts schemes credit

terms

bull Delivering valuendash Determine channels of distributionndash Make it available within easy reach of the

customers

Communicating valuendash Develop and run marketing communications toinform persuade remind consumers directly orindirectly about the brands they sellndash Develop mass programmes sales promotions directselling public relations interactive marketing andother activitiesbull Creating long term growthndash Initiate programmes to constantly monitor growthndash Product relaunches new product developmentevaluating marketing programmes should beconstantly undertaken

From a sellers point of view each of the component signifies a

tool to influence a buyer

From a buyers view each of this connotes a customer value

Robert Lauterborn suggests that the sellerrsquos 4 Prsquos correspond to

4 Crsquos as followsFour Prsquos Four CrsquosProduct Customer solutionPrice Customer costPlace ConveniencePromotion Communication

A special insightIn this context what needs to be understand is that the 4Prsquos

haveto be added with two more Psrsquo

6Psrsquo make a holistic framework

4Prsquos + 5th P (people) + 6th P (process)People will have to be oriented towards the market place andthe processes will have to be constantly reviewed to ensure

thatevery business action is in sync with the market philosophyOnly when this concept sinks into an organizational approachwill Holistic Marketing have truly been assimilated

Two key themes of integrated marketing are1 Many marketing activities are strung

together to deliver value and customer satisfaction

2 All these activities are co-ordinated to get the maximum effect

An integrated marketing communications strategy involves choosing communications that reinforce and complement each other

Internal MarketingHolistic marketing incorporates internal marketing ensuring thateveryone in the organization embraces appropriate marketingprinciples especially senior managementInternal marketing should work at two levels One between the various marketing functions like salesadvertising product management marketing research mustwork together All these functions must be co-ordinated fromthe customerrsquos point of viewNext the various other departments like production finance Ramp D should also ldquothink customerrdquo Marketing orientation mustbecome pervasive throughout the company

Social Responsibility MarketingHolistic marketing tells us the importance of understandingbroader concerns and the ethical and social issues in thecontext of marketing actions

One should approach issues with lsquohumanistic marketingrsquo andlsquoecological marketingrsquoSocial marketing concept holds that the marketing companyshould deliver value to its target customer in a way better thancompetition does by protecting social and environmental needsand enhance social well beingCause related marketing ie building market relationships witha cause or causes for mutual benefit is what companies aspirefor

Fundamental Marketing Conceptsbull Needs wants demandsbull Value satisfactionbull Segmentation Target markets

Positioningbull Offerings brandsbull Marketing channels Supply chainbull Competitionbull Marketing Environmentbull Planning

Needs Wants DemandsNeeds are basic human requirementsWants are directed to specific objects that satisfy a needDemands are wants for specific products backed by ability toPayThere are five types of needs 1Stated Needs (customer says he wants an inexpensive car)2Real Needs ( customer wants a car whose operating cost islow not the initial price)3Unstated Needs (customer expects good service from dealerdoes not ask for it)4Delight Needs(customer would like to get extra fittings at nocost)5Secret Need (customer wants to be seen a savvy consumerowning the car)

Value SatisfactionValue reflects the perceived tangible and intangible benefits

andcosts to the customersValue is a combination of quality service and price (QSP) called the lsquocustomer value triadrsquoValue increases with quality and decreases with priceMarketing constantly works on increasing and communicatingvalue to the consumersSatisfaction is the cumulative comparative judgements

resultingfrom the productrsquos perceived performance or outcome inrelation to his or her expectations Satisfaction is directlyproportional to expectations and exceeds and decreases with

it

bull Customer value

The Customer delivered value is the difference between total customer value and total customer cost

The total customer value is the bundle of benefits customer expects from a given product or service

Total customer cost is the bundle of costs customers expect to incur in evaluating obtaining using and disposing of the product or service

Now we shall go to the section of how marketing creates value

for the consumerMarketing has to constantly create and deliver value to theconsumerValue we saw in the previous chapter as a sum total oftangible and intangible perceived by the consumer for the

pricethat he paysMarketers must first choose the value delivery process andcommunicate superior value by fine tuning the process

Value delivery process The delivery process has three stages as is explained belowndash First phase choosing the valueThis is the first phase of determining what should be the

valueoffered to the consumerbull Homework before any product is marketedbull Segment the market select the target and develop thevalue positioningbull STP ndash seg targeting positioning is the essence ofmarketingndash Second phase providing the valuebull Developing product features pricing sourcing makingdistributing the product

Third phase communicating the valueUtilise sales force promotion advertising masscommunicationNirmallya Kumar has proposed a 3 V approach to

marketing3Vrsquos Value segmentValue propositionValue networkbull Value segments ndash customers ( hisher needs)bull Value proposition ndash product offeringbull Value network - channel method of delivering thevalue

The concept of Value Chain bull Michael Porterrsquos value chain is a tool

for creating more customer valueAccording to this model every

business gets into nine value creating activities out of which five are primary activities and four are support activities

bull Primary activities bringing materials (inbound logistics) converting them into final products (operations)shipping out final products (outbound logistics)marketing (marketing and sales)servicing (service)bull Support activities procurement HR technologydevelopment and firm infrastructureThe firm constantly examines costs and performance in each ofthese value creating activity and looks for ways to improve thefunction The firm analyses the competitors costs andbenchmarks against which to perform It also establishes lsquo bestpracticesrsquo and makes them industry standards

bull All of these must be aligned to the core businessprocessesbull Today companies are partnering with suppliers anddistributors to create a superior value network or a supplychainThe need for developing Core competenciesbull Core business processes need resources ndash labour powermaterials machines informationbull Nurture resources to gain better competenciesbull Outsource others to reduce overheads and concentrate

onthe core

Holistic marketing framework and customer value

Holistic marketing talks about three key management questions on value

Value exploration Value creation Value delivery

Let us examine each in detail

1048729 Value exploration- Must integrate cognitive space competency of

thecompany and resource space of the organization- Cognitive space includes existing and latent

needs- Competency space understanding scope ofbusiness and physical and knowledge competencies- Resource space partners who can collaborate

withthem

1048729 Value Creation- Marketers must identify the following- Customer benefits- Utilise core competencies- Manage business partners- To realign core competencies - Define the business concept- Reshape the scope of business- Position (re) the companyrsquos identity in peoplersquosminds

1048729 Value Delivery- Customer relationship constantly

understand customer needs- Internal resource management

single family of software to link all business processes

- Business partnership allows to manage complex business relationships

Who MarketsA marketer is someone who has a product service to

offer sell He seeks response from the other party a prospect

theone who receives the message and decides to act upon itMarketers stimulate demand in the marketplace for theircompanyrsquos products demand management is an

importantfunction for any marketing departmentMarketers seek to influence the level of demand time ofdemand and composition of demand

Eight states of demand are possible 1 Negative demand Consumers dislike the

product and may even pay a price to avoid it2 Non Existent demand Consumes may be

unaware or uninterested in the product3 Latent demand Consumers may share a

strong need that cannot be satisfied by an existing product

4 Declining demand Consumers buy less frequently or not

at all5 Irregular demand Consumer purchases vary onoccasional basis seasonal weekly monthly6 Full demand Consumers are adequately purchasingexpected levels of products7 Overfull demand More consumers want the product

butcanrsquot be satisfied8 Unwholesome demand Consumers are attracted toproducts that have undesirable social consequences

What are the tasks of Marketing management

bull Developing marketing strategies and plansbull Capturing marketing insightsbull Connecting with the consumersbull Building strong brandsbull Shaping the market offeringsbull Delivering valuebull Communicating valuebull Creating long term growth

Developing marketing strategies and plansndash Identify long and short term potentialsndash Make strategic and tactical plans

bull Capturing marketing insightsndash Closely monitor marketing environmentndash Gather information both at micro and macro levelsndash Establish marketing information system marketingresearch system marketing implementation systemmarketing control system

Connecting with the consumersndash Develop strong long term relationship withcustomersndash Where what why they buy is to be understoodndash Segment the market and identify the targets in

eachgroupBuilding strong brandsndash Develop products with strong brand namesndash Establish these brands monitor them and keepevaluating them

Understand competitionbull Shaping the market offeringsndash Product quality design shape price

maintenanceafter sales service discounts schemes credit

terms

bull Delivering valuendash Determine channels of distributionndash Make it available within easy reach of the

customers

Communicating valuendash Develop and run marketing communications toinform persuade remind consumers directly orindirectly about the brands they sellndash Develop mass programmes sales promotions directselling public relations interactive marketing andother activitiesbull Creating long term growthndash Initiate programmes to constantly monitor growthndash Product relaunches new product developmentevaluating marketing programmes should beconstantly undertaken

A special insightIn this context what needs to be understand is that the 4Prsquos

haveto be added with two more Psrsquo

6Psrsquo make a holistic framework

4Prsquos + 5th P (people) + 6th P (process)People will have to be oriented towards the market place andthe processes will have to be constantly reviewed to ensure

thatevery business action is in sync with the market philosophyOnly when this concept sinks into an organizational approachwill Holistic Marketing have truly been assimilated

Two key themes of integrated marketing are1 Many marketing activities are strung

together to deliver value and customer satisfaction

2 All these activities are co-ordinated to get the maximum effect

An integrated marketing communications strategy involves choosing communications that reinforce and complement each other

Internal MarketingHolistic marketing incorporates internal marketing ensuring thateveryone in the organization embraces appropriate marketingprinciples especially senior managementInternal marketing should work at two levels One between the various marketing functions like salesadvertising product management marketing research mustwork together All these functions must be co-ordinated fromthe customerrsquos point of viewNext the various other departments like production finance Ramp D should also ldquothink customerrdquo Marketing orientation mustbecome pervasive throughout the company

Social Responsibility MarketingHolistic marketing tells us the importance of understandingbroader concerns and the ethical and social issues in thecontext of marketing actions

One should approach issues with lsquohumanistic marketingrsquo andlsquoecological marketingrsquoSocial marketing concept holds that the marketing companyshould deliver value to its target customer in a way better thancompetition does by protecting social and environmental needsand enhance social well beingCause related marketing ie building market relationships witha cause or causes for mutual benefit is what companies aspirefor

Fundamental Marketing Conceptsbull Needs wants demandsbull Value satisfactionbull Segmentation Target markets

Positioningbull Offerings brandsbull Marketing channels Supply chainbull Competitionbull Marketing Environmentbull Planning

Needs Wants DemandsNeeds are basic human requirementsWants are directed to specific objects that satisfy a needDemands are wants for specific products backed by ability toPayThere are five types of needs 1Stated Needs (customer says he wants an inexpensive car)2Real Needs ( customer wants a car whose operating cost islow not the initial price)3Unstated Needs (customer expects good service from dealerdoes not ask for it)4Delight Needs(customer would like to get extra fittings at nocost)5Secret Need (customer wants to be seen a savvy consumerowning the car)

Value SatisfactionValue reflects the perceived tangible and intangible benefits

andcosts to the customersValue is a combination of quality service and price (QSP) called the lsquocustomer value triadrsquoValue increases with quality and decreases with priceMarketing constantly works on increasing and communicatingvalue to the consumersSatisfaction is the cumulative comparative judgements

resultingfrom the productrsquos perceived performance or outcome inrelation to his or her expectations Satisfaction is directlyproportional to expectations and exceeds and decreases with

it

bull Customer value

The Customer delivered value is the difference between total customer value and total customer cost

The total customer value is the bundle of benefits customer expects from a given product or service

Total customer cost is the bundle of costs customers expect to incur in evaluating obtaining using and disposing of the product or service

Now we shall go to the section of how marketing creates value

for the consumerMarketing has to constantly create and deliver value to theconsumerValue we saw in the previous chapter as a sum total oftangible and intangible perceived by the consumer for the

pricethat he paysMarketers must first choose the value delivery process andcommunicate superior value by fine tuning the process

Value delivery process The delivery process has three stages as is explained belowndash First phase choosing the valueThis is the first phase of determining what should be the

valueoffered to the consumerbull Homework before any product is marketedbull Segment the market select the target and develop thevalue positioningbull STP ndash seg targeting positioning is the essence ofmarketingndash Second phase providing the valuebull Developing product features pricing sourcing makingdistributing the product

Third phase communicating the valueUtilise sales force promotion advertising masscommunicationNirmallya Kumar has proposed a 3 V approach to

marketing3Vrsquos Value segmentValue propositionValue networkbull Value segments ndash customers ( hisher needs)bull Value proposition ndash product offeringbull Value network - channel method of delivering thevalue

The concept of Value Chain bull Michael Porterrsquos value chain is a tool

for creating more customer valueAccording to this model every

business gets into nine value creating activities out of which five are primary activities and four are support activities

bull Primary activities bringing materials (inbound logistics) converting them into final products (operations)shipping out final products (outbound logistics)marketing (marketing and sales)servicing (service)bull Support activities procurement HR technologydevelopment and firm infrastructureThe firm constantly examines costs and performance in each ofthese value creating activity and looks for ways to improve thefunction The firm analyses the competitors costs andbenchmarks against which to perform It also establishes lsquo bestpracticesrsquo and makes them industry standards

bull All of these must be aligned to the core businessprocessesbull Today companies are partnering with suppliers anddistributors to create a superior value network or a supplychainThe need for developing Core competenciesbull Core business processes need resources ndash labour powermaterials machines informationbull Nurture resources to gain better competenciesbull Outsource others to reduce overheads and concentrate

onthe core

Holistic marketing framework and customer value

Holistic marketing talks about three key management questions on value

Value exploration Value creation Value delivery

Let us examine each in detail

1048729 Value exploration- Must integrate cognitive space competency of

thecompany and resource space of the organization- Cognitive space includes existing and latent

needs- Competency space understanding scope ofbusiness and physical and knowledge competencies- Resource space partners who can collaborate

withthem

1048729 Value Creation- Marketers must identify the following- Customer benefits- Utilise core competencies- Manage business partners- To realign core competencies - Define the business concept- Reshape the scope of business- Position (re) the companyrsquos identity in peoplersquosminds

1048729 Value Delivery- Customer relationship constantly

understand customer needs- Internal resource management

single family of software to link all business processes

- Business partnership allows to manage complex business relationships

Who MarketsA marketer is someone who has a product service to

offer sell He seeks response from the other party a prospect

theone who receives the message and decides to act upon itMarketers stimulate demand in the marketplace for theircompanyrsquos products demand management is an

importantfunction for any marketing departmentMarketers seek to influence the level of demand time ofdemand and composition of demand

Eight states of demand are possible 1 Negative demand Consumers dislike the

product and may even pay a price to avoid it2 Non Existent demand Consumes may be

unaware or uninterested in the product3 Latent demand Consumers may share a

strong need that cannot be satisfied by an existing product

4 Declining demand Consumers buy less frequently or not

at all5 Irregular demand Consumer purchases vary onoccasional basis seasonal weekly monthly6 Full demand Consumers are adequately purchasingexpected levels of products7 Overfull demand More consumers want the product

butcanrsquot be satisfied8 Unwholesome demand Consumers are attracted toproducts that have undesirable social consequences

What are the tasks of Marketing management

bull Developing marketing strategies and plansbull Capturing marketing insightsbull Connecting with the consumersbull Building strong brandsbull Shaping the market offeringsbull Delivering valuebull Communicating valuebull Creating long term growth

Developing marketing strategies and plansndash Identify long and short term potentialsndash Make strategic and tactical plans

bull Capturing marketing insightsndash Closely monitor marketing environmentndash Gather information both at micro and macro levelsndash Establish marketing information system marketingresearch system marketing implementation systemmarketing control system

Connecting with the consumersndash Develop strong long term relationship withcustomersndash Where what why they buy is to be understoodndash Segment the market and identify the targets in

eachgroupBuilding strong brandsndash Develop products with strong brand namesndash Establish these brands monitor them and keepevaluating them

Understand competitionbull Shaping the market offeringsndash Product quality design shape price

maintenanceafter sales service discounts schemes credit

terms

bull Delivering valuendash Determine channels of distributionndash Make it available within easy reach of the

customers

Communicating valuendash Develop and run marketing communications toinform persuade remind consumers directly orindirectly about the brands they sellndash Develop mass programmes sales promotions directselling public relations interactive marketing andother activitiesbull Creating long term growthndash Initiate programmes to constantly monitor growthndash Product relaunches new product developmentevaluating marketing programmes should beconstantly undertaken

Two key themes of integrated marketing are1 Many marketing activities are strung

together to deliver value and customer satisfaction

2 All these activities are co-ordinated to get the maximum effect

An integrated marketing communications strategy involves choosing communications that reinforce and complement each other

Internal MarketingHolistic marketing incorporates internal marketing ensuring thateveryone in the organization embraces appropriate marketingprinciples especially senior managementInternal marketing should work at two levels One between the various marketing functions like salesadvertising product management marketing research mustwork together All these functions must be co-ordinated fromthe customerrsquos point of viewNext the various other departments like production finance Ramp D should also ldquothink customerrdquo Marketing orientation mustbecome pervasive throughout the company

Social Responsibility MarketingHolistic marketing tells us the importance of understandingbroader concerns and the ethical and social issues in thecontext of marketing actions

One should approach issues with lsquohumanistic marketingrsquo andlsquoecological marketingrsquoSocial marketing concept holds that the marketing companyshould deliver value to its target customer in a way better thancompetition does by protecting social and environmental needsand enhance social well beingCause related marketing ie building market relationships witha cause or causes for mutual benefit is what companies aspirefor

Fundamental Marketing Conceptsbull Needs wants demandsbull Value satisfactionbull Segmentation Target markets

Positioningbull Offerings brandsbull Marketing channels Supply chainbull Competitionbull Marketing Environmentbull Planning

Needs Wants DemandsNeeds are basic human requirementsWants are directed to specific objects that satisfy a needDemands are wants for specific products backed by ability toPayThere are five types of needs 1Stated Needs (customer says he wants an inexpensive car)2Real Needs ( customer wants a car whose operating cost islow not the initial price)3Unstated Needs (customer expects good service from dealerdoes not ask for it)4Delight Needs(customer would like to get extra fittings at nocost)5Secret Need (customer wants to be seen a savvy consumerowning the car)

Value SatisfactionValue reflects the perceived tangible and intangible benefits

andcosts to the customersValue is a combination of quality service and price (QSP) called the lsquocustomer value triadrsquoValue increases with quality and decreases with priceMarketing constantly works on increasing and communicatingvalue to the consumersSatisfaction is the cumulative comparative judgements

resultingfrom the productrsquos perceived performance or outcome inrelation to his or her expectations Satisfaction is directlyproportional to expectations and exceeds and decreases with

it

bull Customer value

The Customer delivered value is the difference between total customer value and total customer cost

The total customer value is the bundle of benefits customer expects from a given product or service

Total customer cost is the bundle of costs customers expect to incur in evaluating obtaining using and disposing of the product or service

Now we shall go to the section of how marketing creates value

for the consumerMarketing has to constantly create and deliver value to theconsumerValue we saw in the previous chapter as a sum total oftangible and intangible perceived by the consumer for the

pricethat he paysMarketers must first choose the value delivery process andcommunicate superior value by fine tuning the process

Value delivery process The delivery process has three stages as is explained belowndash First phase choosing the valueThis is the first phase of determining what should be the

valueoffered to the consumerbull Homework before any product is marketedbull Segment the market select the target and develop thevalue positioningbull STP ndash seg targeting positioning is the essence ofmarketingndash Second phase providing the valuebull Developing product features pricing sourcing makingdistributing the product

Third phase communicating the valueUtilise sales force promotion advertising masscommunicationNirmallya Kumar has proposed a 3 V approach to

marketing3Vrsquos Value segmentValue propositionValue networkbull Value segments ndash customers ( hisher needs)bull Value proposition ndash product offeringbull Value network - channel method of delivering thevalue

The concept of Value Chain bull Michael Porterrsquos value chain is a tool

for creating more customer valueAccording to this model every

business gets into nine value creating activities out of which five are primary activities and four are support activities

bull Primary activities bringing materials (inbound logistics) converting them into final products (operations)shipping out final products (outbound logistics)marketing (marketing and sales)servicing (service)bull Support activities procurement HR technologydevelopment and firm infrastructureThe firm constantly examines costs and performance in each ofthese value creating activity and looks for ways to improve thefunction The firm analyses the competitors costs andbenchmarks against which to perform It also establishes lsquo bestpracticesrsquo and makes them industry standards

bull All of these must be aligned to the core businessprocessesbull Today companies are partnering with suppliers anddistributors to create a superior value network or a supplychainThe need for developing Core competenciesbull Core business processes need resources ndash labour powermaterials machines informationbull Nurture resources to gain better competenciesbull Outsource others to reduce overheads and concentrate

onthe core

Holistic marketing framework and customer value

Holistic marketing talks about three key management questions on value

Value exploration Value creation Value delivery

Let us examine each in detail

1048729 Value exploration- Must integrate cognitive space competency of

thecompany and resource space of the organization- Cognitive space includes existing and latent

needs- Competency space understanding scope ofbusiness and physical and knowledge competencies- Resource space partners who can collaborate

withthem

1048729 Value Creation- Marketers must identify the following- Customer benefits- Utilise core competencies- Manage business partners- To realign core competencies - Define the business concept- Reshape the scope of business- Position (re) the companyrsquos identity in peoplersquosminds

1048729 Value Delivery- Customer relationship constantly

understand customer needs- Internal resource management

single family of software to link all business processes

- Business partnership allows to manage complex business relationships

Who MarketsA marketer is someone who has a product service to

offer sell He seeks response from the other party a prospect

theone who receives the message and decides to act upon itMarketers stimulate demand in the marketplace for theircompanyrsquos products demand management is an

importantfunction for any marketing departmentMarketers seek to influence the level of demand time ofdemand and composition of demand

Eight states of demand are possible 1 Negative demand Consumers dislike the

product and may even pay a price to avoid it2 Non Existent demand Consumes may be

unaware or uninterested in the product3 Latent demand Consumers may share a

strong need that cannot be satisfied by an existing product

4 Declining demand Consumers buy less frequently or not

at all5 Irregular demand Consumer purchases vary onoccasional basis seasonal weekly monthly6 Full demand Consumers are adequately purchasingexpected levels of products7 Overfull demand More consumers want the product

butcanrsquot be satisfied8 Unwholesome demand Consumers are attracted toproducts that have undesirable social consequences

What are the tasks of Marketing management

bull Developing marketing strategies and plansbull Capturing marketing insightsbull Connecting with the consumersbull Building strong brandsbull Shaping the market offeringsbull Delivering valuebull Communicating valuebull Creating long term growth

Developing marketing strategies and plansndash Identify long and short term potentialsndash Make strategic and tactical plans

bull Capturing marketing insightsndash Closely monitor marketing environmentndash Gather information both at micro and macro levelsndash Establish marketing information system marketingresearch system marketing implementation systemmarketing control system

Connecting with the consumersndash Develop strong long term relationship withcustomersndash Where what why they buy is to be understoodndash Segment the market and identify the targets in

eachgroupBuilding strong brandsndash Develop products with strong brand namesndash Establish these brands monitor them and keepevaluating them

Understand competitionbull Shaping the market offeringsndash Product quality design shape price

maintenanceafter sales service discounts schemes credit

terms

bull Delivering valuendash Determine channels of distributionndash Make it available within easy reach of the

customers

Communicating valuendash Develop and run marketing communications toinform persuade remind consumers directly orindirectly about the brands they sellndash Develop mass programmes sales promotions directselling public relations interactive marketing andother activitiesbull Creating long term growthndash Initiate programmes to constantly monitor growthndash Product relaunches new product developmentevaluating marketing programmes should beconstantly undertaken

Internal MarketingHolistic marketing incorporates internal marketing ensuring thateveryone in the organization embraces appropriate marketingprinciples especially senior managementInternal marketing should work at two levels One between the various marketing functions like salesadvertising product management marketing research mustwork together All these functions must be co-ordinated fromthe customerrsquos point of viewNext the various other departments like production finance Ramp D should also ldquothink customerrdquo Marketing orientation mustbecome pervasive throughout the company

Social Responsibility MarketingHolistic marketing tells us the importance of understandingbroader concerns and the ethical and social issues in thecontext of marketing actions

One should approach issues with lsquohumanistic marketingrsquo andlsquoecological marketingrsquoSocial marketing concept holds that the marketing companyshould deliver value to its target customer in a way better thancompetition does by protecting social and environmental needsand enhance social well beingCause related marketing ie building market relationships witha cause or causes for mutual benefit is what companies aspirefor

Fundamental Marketing Conceptsbull Needs wants demandsbull Value satisfactionbull Segmentation Target markets

Positioningbull Offerings brandsbull Marketing channels Supply chainbull Competitionbull Marketing Environmentbull Planning

Needs Wants DemandsNeeds are basic human requirementsWants are directed to specific objects that satisfy a needDemands are wants for specific products backed by ability toPayThere are five types of needs 1Stated Needs (customer says he wants an inexpensive car)2Real Needs ( customer wants a car whose operating cost islow not the initial price)3Unstated Needs (customer expects good service from dealerdoes not ask for it)4Delight Needs(customer would like to get extra fittings at nocost)5Secret Need (customer wants to be seen a savvy consumerowning the car)

Value SatisfactionValue reflects the perceived tangible and intangible benefits

andcosts to the customersValue is a combination of quality service and price (QSP) called the lsquocustomer value triadrsquoValue increases with quality and decreases with priceMarketing constantly works on increasing and communicatingvalue to the consumersSatisfaction is the cumulative comparative judgements

resultingfrom the productrsquos perceived performance or outcome inrelation to his or her expectations Satisfaction is directlyproportional to expectations and exceeds and decreases with

it

bull Customer value

The Customer delivered value is the difference between total customer value and total customer cost

The total customer value is the bundle of benefits customer expects from a given product or service

Total customer cost is the bundle of costs customers expect to incur in evaluating obtaining using and disposing of the product or service

Now we shall go to the section of how marketing creates value

for the consumerMarketing has to constantly create and deliver value to theconsumerValue we saw in the previous chapter as a sum total oftangible and intangible perceived by the consumer for the

pricethat he paysMarketers must first choose the value delivery process andcommunicate superior value by fine tuning the process

Value delivery process The delivery process has three stages as is explained belowndash First phase choosing the valueThis is the first phase of determining what should be the

valueoffered to the consumerbull Homework before any product is marketedbull Segment the market select the target and develop thevalue positioningbull STP ndash seg targeting positioning is the essence ofmarketingndash Second phase providing the valuebull Developing product features pricing sourcing makingdistributing the product

Third phase communicating the valueUtilise sales force promotion advertising masscommunicationNirmallya Kumar has proposed a 3 V approach to

marketing3Vrsquos Value segmentValue propositionValue networkbull Value segments ndash customers ( hisher needs)bull Value proposition ndash product offeringbull Value network - channel method of delivering thevalue

The concept of Value Chain bull Michael Porterrsquos value chain is a tool

for creating more customer valueAccording to this model every

business gets into nine value creating activities out of which five are primary activities and four are support activities

bull Primary activities bringing materials (inbound logistics) converting them into final products (operations)shipping out final products (outbound logistics)marketing (marketing and sales)servicing (service)bull Support activities procurement HR technologydevelopment and firm infrastructureThe firm constantly examines costs and performance in each ofthese value creating activity and looks for ways to improve thefunction The firm analyses the competitors costs andbenchmarks against which to perform It also establishes lsquo bestpracticesrsquo and makes them industry standards

bull All of these must be aligned to the core businessprocessesbull Today companies are partnering with suppliers anddistributors to create a superior value network or a supplychainThe need for developing Core competenciesbull Core business processes need resources ndash labour powermaterials machines informationbull Nurture resources to gain better competenciesbull Outsource others to reduce overheads and concentrate

onthe core

Holistic marketing framework and customer value

Holistic marketing talks about three key management questions on value

Value exploration Value creation Value delivery

Let us examine each in detail

1048729 Value exploration- Must integrate cognitive space competency of

thecompany and resource space of the organization- Cognitive space includes existing and latent

needs- Competency space understanding scope ofbusiness and physical and knowledge competencies- Resource space partners who can collaborate

withthem

1048729 Value Creation- Marketers must identify the following- Customer benefits- Utilise core competencies- Manage business partners- To realign core competencies - Define the business concept- Reshape the scope of business- Position (re) the companyrsquos identity in peoplersquosminds

1048729 Value Delivery- Customer relationship constantly

understand customer needs- Internal resource management

single family of software to link all business processes

- Business partnership allows to manage complex business relationships

Who MarketsA marketer is someone who has a product service to

offer sell He seeks response from the other party a prospect

theone who receives the message and decides to act upon itMarketers stimulate demand in the marketplace for theircompanyrsquos products demand management is an

importantfunction for any marketing departmentMarketers seek to influence the level of demand time ofdemand and composition of demand

Eight states of demand are possible 1 Negative demand Consumers dislike the

product and may even pay a price to avoid it2 Non Existent demand Consumes may be

unaware or uninterested in the product3 Latent demand Consumers may share a

strong need that cannot be satisfied by an existing product

4 Declining demand Consumers buy less frequently or not

at all5 Irregular demand Consumer purchases vary onoccasional basis seasonal weekly monthly6 Full demand Consumers are adequately purchasingexpected levels of products7 Overfull demand More consumers want the product

butcanrsquot be satisfied8 Unwholesome demand Consumers are attracted toproducts that have undesirable social consequences

What are the tasks of Marketing management

bull Developing marketing strategies and plansbull Capturing marketing insightsbull Connecting with the consumersbull Building strong brandsbull Shaping the market offeringsbull Delivering valuebull Communicating valuebull Creating long term growth

Developing marketing strategies and plansndash Identify long and short term potentialsndash Make strategic and tactical plans

bull Capturing marketing insightsndash Closely monitor marketing environmentndash Gather information both at micro and macro levelsndash Establish marketing information system marketingresearch system marketing implementation systemmarketing control system

Connecting with the consumersndash Develop strong long term relationship withcustomersndash Where what why they buy is to be understoodndash Segment the market and identify the targets in

eachgroupBuilding strong brandsndash Develop products with strong brand namesndash Establish these brands monitor them and keepevaluating them

Understand competitionbull Shaping the market offeringsndash Product quality design shape price

maintenanceafter sales service discounts schemes credit

terms

bull Delivering valuendash Determine channels of distributionndash Make it available within easy reach of the

customers

Communicating valuendash Develop and run marketing communications toinform persuade remind consumers directly orindirectly about the brands they sellndash Develop mass programmes sales promotions directselling public relations interactive marketing andother activitiesbull Creating long term growthndash Initiate programmes to constantly monitor growthndash Product relaunches new product developmentevaluating marketing programmes should beconstantly undertaken

Social Responsibility MarketingHolistic marketing tells us the importance of understandingbroader concerns and the ethical and social issues in thecontext of marketing actions

One should approach issues with lsquohumanistic marketingrsquo andlsquoecological marketingrsquoSocial marketing concept holds that the marketing companyshould deliver value to its target customer in a way better thancompetition does by protecting social and environmental needsand enhance social well beingCause related marketing ie building market relationships witha cause or causes for mutual benefit is what companies aspirefor

Fundamental Marketing Conceptsbull Needs wants demandsbull Value satisfactionbull Segmentation Target markets

Positioningbull Offerings brandsbull Marketing channels Supply chainbull Competitionbull Marketing Environmentbull Planning

Needs Wants DemandsNeeds are basic human requirementsWants are directed to specific objects that satisfy a needDemands are wants for specific products backed by ability toPayThere are five types of needs 1Stated Needs (customer says he wants an inexpensive car)2Real Needs ( customer wants a car whose operating cost islow not the initial price)3Unstated Needs (customer expects good service from dealerdoes not ask for it)4Delight Needs(customer would like to get extra fittings at nocost)5Secret Need (customer wants to be seen a savvy consumerowning the car)

Value SatisfactionValue reflects the perceived tangible and intangible benefits

andcosts to the customersValue is a combination of quality service and price (QSP) called the lsquocustomer value triadrsquoValue increases with quality and decreases with priceMarketing constantly works on increasing and communicatingvalue to the consumersSatisfaction is the cumulative comparative judgements

resultingfrom the productrsquos perceived performance or outcome inrelation to his or her expectations Satisfaction is directlyproportional to expectations and exceeds and decreases with

it

bull Customer value

The Customer delivered value is the difference between total customer value and total customer cost

The total customer value is the bundle of benefits customer expects from a given product or service

Total customer cost is the bundle of costs customers expect to incur in evaluating obtaining using and disposing of the product or service

Now we shall go to the section of how marketing creates value

for the consumerMarketing has to constantly create and deliver value to theconsumerValue we saw in the previous chapter as a sum total oftangible and intangible perceived by the consumer for the

pricethat he paysMarketers must first choose the value delivery process andcommunicate superior value by fine tuning the process

Value delivery process The delivery process has three stages as is explained belowndash First phase choosing the valueThis is the first phase of determining what should be the

valueoffered to the consumerbull Homework before any product is marketedbull Segment the market select the target and develop thevalue positioningbull STP ndash seg targeting positioning is the essence ofmarketingndash Second phase providing the valuebull Developing product features pricing sourcing makingdistributing the product

Third phase communicating the valueUtilise sales force promotion advertising masscommunicationNirmallya Kumar has proposed a 3 V approach to

marketing3Vrsquos Value segmentValue propositionValue networkbull Value segments ndash customers ( hisher needs)bull Value proposition ndash product offeringbull Value network - channel method of delivering thevalue

The concept of Value Chain bull Michael Porterrsquos value chain is a tool

for creating more customer valueAccording to this model every

business gets into nine value creating activities out of which five are primary activities and four are support activities

bull Primary activities bringing materials (inbound logistics) converting them into final products (operations)shipping out final products (outbound logistics)marketing (marketing and sales)servicing (service)bull Support activities procurement HR technologydevelopment and firm infrastructureThe firm constantly examines costs and performance in each ofthese value creating activity and looks for ways to improve thefunction The firm analyses the competitors costs andbenchmarks against which to perform It also establishes lsquo bestpracticesrsquo and makes them industry standards

bull All of these must be aligned to the core businessprocessesbull Today companies are partnering with suppliers anddistributors to create a superior value network or a supplychainThe need for developing Core competenciesbull Core business processes need resources ndash labour powermaterials machines informationbull Nurture resources to gain better competenciesbull Outsource others to reduce overheads and concentrate

onthe core

Holistic marketing framework and customer value

Holistic marketing talks about three key management questions on value

Value exploration Value creation Value delivery

Let us examine each in detail

1048729 Value exploration- Must integrate cognitive space competency of

thecompany and resource space of the organization- Cognitive space includes existing and latent

needs- Competency space understanding scope ofbusiness and physical and knowledge competencies- Resource space partners who can collaborate

withthem

1048729 Value Creation- Marketers must identify the following- Customer benefits- Utilise core competencies- Manage business partners- To realign core competencies - Define the business concept- Reshape the scope of business- Position (re) the companyrsquos identity in peoplersquosminds

1048729 Value Delivery- Customer relationship constantly

understand customer needs- Internal resource management

single family of software to link all business processes

- Business partnership allows to manage complex business relationships

Who MarketsA marketer is someone who has a product service to

offer sell He seeks response from the other party a prospect

theone who receives the message and decides to act upon itMarketers stimulate demand in the marketplace for theircompanyrsquos products demand management is an

importantfunction for any marketing departmentMarketers seek to influence the level of demand time ofdemand and composition of demand

Eight states of demand are possible 1 Negative demand Consumers dislike the

product and may even pay a price to avoid it2 Non Existent demand Consumes may be

unaware or uninterested in the product3 Latent demand Consumers may share a

strong need that cannot be satisfied by an existing product

4 Declining demand Consumers buy less frequently or not

at all5 Irregular demand Consumer purchases vary onoccasional basis seasonal weekly monthly6 Full demand Consumers are adequately purchasingexpected levels of products7 Overfull demand More consumers want the product

butcanrsquot be satisfied8 Unwholesome demand Consumers are attracted toproducts that have undesirable social consequences

What are the tasks of Marketing management

bull Developing marketing strategies and plansbull Capturing marketing insightsbull Connecting with the consumersbull Building strong brandsbull Shaping the market offeringsbull Delivering valuebull Communicating valuebull Creating long term growth

Developing marketing strategies and plansndash Identify long and short term potentialsndash Make strategic and tactical plans

bull Capturing marketing insightsndash Closely monitor marketing environmentndash Gather information both at micro and macro levelsndash Establish marketing information system marketingresearch system marketing implementation systemmarketing control system

Connecting with the consumersndash Develop strong long term relationship withcustomersndash Where what why they buy is to be understoodndash Segment the market and identify the targets in

eachgroupBuilding strong brandsndash Develop products with strong brand namesndash Establish these brands monitor them and keepevaluating them

Understand competitionbull Shaping the market offeringsndash Product quality design shape price

maintenanceafter sales service discounts schemes credit

terms

bull Delivering valuendash Determine channels of distributionndash Make it available within easy reach of the

customers

Communicating valuendash Develop and run marketing communications toinform persuade remind consumers directly orindirectly about the brands they sellndash Develop mass programmes sales promotions directselling public relations interactive marketing andother activitiesbull Creating long term growthndash Initiate programmes to constantly monitor growthndash Product relaunches new product developmentevaluating marketing programmes should beconstantly undertaken

Fundamental Marketing Conceptsbull Needs wants demandsbull Value satisfactionbull Segmentation Target markets

Positioningbull Offerings brandsbull Marketing channels Supply chainbull Competitionbull Marketing Environmentbull Planning

Needs Wants DemandsNeeds are basic human requirementsWants are directed to specific objects that satisfy a needDemands are wants for specific products backed by ability toPayThere are five types of needs 1Stated Needs (customer says he wants an inexpensive car)2Real Needs ( customer wants a car whose operating cost islow not the initial price)3Unstated Needs (customer expects good service from dealerdoes not ask for it)4Delight Needs(customer would like to get extra fittings at nocost)5Secret Need (customer wants to be seen a savvy consumerowning the car)

Value SatisfactionValue reflects the perceived tangible and intangible benefits

andcosts to the customersValue is a combination of quality service and price (QSP) called the lsquocustomer value triadrsquoValue increases with quality and decreases with priceMarketing constantly works on increasing and communicatingvalue to the consumersSatisfaction is the cumulative comparative judgements

resultingfrom the productrsquos perceived performance or outcome inrelation to his or her expectations Satisfaction is directlyproportional to expectations and exceeds and decreases with

it

bull Customer value

The Customer delivered value is the difference between total customer value and total customer cost

The total customer value is the bundle of benefits customer expects from a given product or service

Total customer cost is the bundle of costs customers expect to incur in evaluating obtaining using and disposing of the product or service

Now we shall go to the section of how marketing creates value

for the consumerMarketing has to constantly create and deliver value to theconsumerValue we saw in the previous chapter as a sum total oftangible and intangible perceived by the consumer for the

pricethat he paysMarketers must first choose the value delivery process andcommunicate superior value by fine tuning the process

Value delivery process The delivery process has three stages as is explained belowndash First phase choosing the valueThis is the first phase of determining what should be the

valueoffered to the consumerbull Homework before any product is marketedbull Segment the market select the target and develop thevalue positioningbull STP ndash seg targeting positioning is the essence ofmarketingndash Second phase providing the valuebull Developing product features pricing sourcing makingdistributing the product

Third phase communicating the valueUtilise sales force promotion advertising masscommunicationNirmallya Kumar has proposed a 3 V approach to

marketing3Vrsquos Value segmentValue propositionValue networkbull Value segments ndash customers ( hisher needs)bull Value proposition ndash product offeringbull Value network - channel method of delivering thevalue

The concept of Value Chain bull Michael Porterrsquos value chain is a tool

for creating more customer valueAccording to this model every

business gets into nine value creating activities out of which five are primary activities and four are support activities

bull Primary activities bringing materials (inbound logistics) converting them into final products (operations)shipping out final products (outbound logistics)marketing (marketing and sales)servicing (service)bull Support activities procurement HR technologydevelopment and firm infrastructureThe firm constantly examines costs and performance in each ofthese value creating activity and looks for ways to improve thefunction The firm analyses the competitors costs andbenchmarks against which to perform It also establishes lsquo bestpracticesrsquo and makes them industry standards

bull All of these must be aligned to the core businessprocessesbull Today companies are partnering with suppliers anddistributors to create a superior value network or a supplychainThe need for developing Core competenciesbull Core business processes need resources ndash labour powermaterials machines informationbull Nurture resources to gain better competenciesbull Outsource others to reduce overheads and concentrate

onthe core

Holistic marketing framework and customer value

Holistic marketing talks about three key management questions on value

Value exploration Value creation Value delivery

Let us examine each in detail

1048729 Value exploration- Must integrate cognitive space competency of

thecompany and resource space of the organization- Cognitive space includes existing and latent

needs- Competency space understanding scope ofbusiness and physical and knowledge competencies- Resource space partners who can collaborate

withthem

1048729 Value Creation- Marketers must identify the following- Customer benefits- Utilise core competencies- Manage business partners- To realign core competencies - Define the business concept- Reshape the scope of business- Position (re) the companyrsquos identity in peoplersquosminds

1048729 Value Delivery- Customer relationship constantly

understand customer needs- Internal resource management

single family of software to link all business processes

- Business partnership allows to manage complex business relationships

Who MarketsA marketer is someone who has a product service to

offer sell He seeks response from the other party a prospect

theone who receives the message and decides to act upon itMarketers stimulate demand in the marketplace for theircompanyrsquos products demand management is an

importantfunction for any marketing departmentMarketers seek to influence the level of demand time ofdemand and composition of demand

Eight states of demand are possible 1 Negative demand Consumers dislike the

product and may even pay a price to avoid it2 Non Existent demand Consumes may be

unaware or uninterested in the product3 Latent demand Consumers may share a

strong need that cannot be satisfied by an existing product

4 Declining demand Consumers buy less frequently or not

at all5 Irregular demand Consumer purchases vary onoccasional basis seasonal weekly monthly6 Full demand Consumers are adequately purchasingexpected levels of products7 Overfull demand More consumers want the product

butcanrsquot be satisfied8 Unwholesome demand Consumers are attracted toproducts that have undesirable social consequences

What are the tasks of Marketing management

bull Developing marketing strategies and plansbull Capturing marketing insightsbull Connecting with the consumersbull Building strong brandsbull Shaping the market offeringsbull Delivering valuebull Communicating valuebull Creating long term growth

Developing marketing strategies and plansndash Identify long and short term potentialsndash Make strategic and tactical plans

bull Capturing marketing insightsndash Closely monitor marketing environmentndash Gather information both at micro and macro levelsndash Establish marketing information system marketingresearch system marketing implementation systemmarketing control system

Connecting with the consumersndash Develop strong long term relationship withcustomersndash Where what why they buy is to be understoodndash Segment the market and identify the targets in

eachgroupBuilding strong brandsndash Develop products with strong brand namesndash Establish these brands monitor them and keepevaluating them

Understand competitionbull Shaping the market offeringsndash Product quality design shape price

maintenanceafter sales service discounts schemes credit

terms

bull Delivering valuendash Determine channels of distributionndash Make it available within easy reach of the

customers

Communicating valuendash Develop and run marketing communications toinform persuade remind consumers directly orindirectly about the brands they sellndash Develop mass programmes sales promotions directselling public relations interactive marketing andother activitiesbull Creating long term growthndash Initiate programmes to constantly monitor growthndash Product relaunches new product developmentevaluating marketing programmes should beconstantly undertaken

Needs Wants DemandsNeeds are basic human requirementsWants are directed to specific objects that satisfy a needDemands are wants for specific products backed by ability toPayThere are five types of needs 1Stated Needs (customer says he wants an inexpensive car)2Real Needs ( customer wants a car whose operating cost islow not the initial price)3Unstated Needs (customer expects good service from dealerdoes not ask for it)4Delight Needs(customer would like to get extra fittings at nocost)5Secret Need (customer wants to be seen a savvy consumerowning the car)

Value SatisfactionValue reflects the perceived tangible and intangible benefits

andcosts to the customersValue is a combination of quality service and price (QSP) called the lsquocustomer value triadrsquoValue increases with quality and decreases with priceMarketing constantly works on increasing and communicatingvalue to the consumersSatisfaction is the cumulative comparative judgements

resultingfrom the productrsquos perceived performance or outcome inrelation to his or her expectations Satisfaction is directlyproportional to expectations and exceeds and decreases with

it

bull Customer value

The Customer delivered value is the difference between total customer value and total customer cost

The total customer value is the bundle of benefits customer expects from a given product or service

Total customer cost is the bundle of costs customers expect to incur in evaluating obtaining using and disposing of the product or service

Now we shall go to the section of how marketing creates value

for the consumerMarketing has to constantly create and deliver value to theconsumerValue we saw in the previous chapter as a sum total oftangible and intangible perceived by the consumer for the

pricethat he paysMarketers must first choose the value delivery process andcommunicate superior value by fine tuning the process

Value delivery process The delivery process has three stages as is explained belowndash First phase choosing the valueThis is the first phase of determining what should be the

valueoffered to the consumerbull Homework before any product is marketedbull Segment the market select the target and develop thevalue positioningbull STP ndash seg targeting positioning is the essence ofmarketingndash Second phase providing the valuebull Developing product features pricing sourcing makingdistributing the product

Third phase communicating the valueUtilise sales force promotion advertising masscommunicationNirmallya Kumar has proposed a 3 V approach to

marketing3Vrsquos Value segmentValue propositionValue networkbull Value segments ndash customers ( hisher needs)bull Value proposition ndash product offeringbull Value network - channel method of delivering thevalue

The concept of Value Chain bull Michael Porterrsquos value chain is a tool

for creating more customer valueAccording to this model every

business gets into nine value creating activities out of which five are primary activities and four are support activities

bull Primary activities bringing materials (inbound logistics) converting them into final products (operations)shipping out final products (outbound logistics)marketing (marketing and sales)servicing (service)bull Support activities procurement HR technologydevelopment and firm infrastructureThe firm constantly examines costs and performance in each ofthese value creating activity and looks for ways to improve thefunction The firm analyses the competitors costs andbenchmarks against which to perform It also establishes lsquo bestpracticesrsquo and makes them industry standards

bull All of these must be aligned to the core businessprocessesbull Today companies are partnering with suppliers anddistributors to create a superior value network or a supplychainThe need for developing Core competenciesbull Core business processes need resources ndash labour powermaterials machines informationbull Nurture resources to gain better competenciesbull Outsource others to reduce overheads and concentrate

onthe core

Holistic marketing framework and customer value

Holistic marketing talks about three key management questions on value

Value exploration Value creation Value delivery

Let us examine each in detail

1048729 Value exploration- Must integrate cognitive space competency of

thecompany and resource space of the organization- Cognitive space includes existing and latent

needs- Competency space understanding scope ofbusiness and physical and knowledge competencies- Resource space partners who can collaborate

withthem

1048729 Value Creation- Marketers must identify the following- Customer benefits- Utilise core competencies- Manage business partners- To realign core competencies - Define the business concept- Reshape the scope of business- Position (re) the companyrsquos identity in peoplersquosminds

1048729 Value Delivery- Customer relationship constantly

understand customer needs- Internal resource management

single family of software to link all business processes

- Business partnership allows to manage complex business relationships

Who MarketsA marketer is someone who has a product service to

offer sell He seeks response from the other party a prospect

theone who receives the message and decides to act upon itMarketers stimulate demand in the marketplace for theircompanyrsquos products demand management is an

importantfunction for any marketing departmentMarketers seek to influence the level of demand time ofdemand and composition of demand

Eight states of demand are possible 1 Negative demand Consumers dislike the

product and may even pay a price to avoid it2 Non Existent demand Consumes may be

unaware or uninterested in the product3 Latent demand Consumers may share a

strong need that cannot be satisfied by an existing product

4 Declining demand Consumers buy less frequently or not

at all5 Irregular demand Consumer purchases vary onoccasional basis seasonal weekly monthly6 Full demand Consumers are adequately purchasingexpected levels of products7 Overfull demand More consumers want the product

butcanrsquot be satisfied8 Unwholesome demand Consumers are attracted toproducts that have undesirable social consequences

What are the tasks of Marketing management

bull Developing marketing strategies and plansbull Capturing marketing insightsbull Connecting with the consumersbull Building strong brandsbull Shaping the market offeringsbull Delivering valuebull Communicating valuebull Creating long term growth

Developing marketing strategies and plansndash Identify long and short term potentialsndash Make strategic and tactical plans

bull Capturing marketing insightsndash Closely monitor marketing environmentndash Gather information both at micro and macro levelsndash Establish marketing information system marketingresearch system marketing implementation systemmarketing control system

Connecting with the consumersndash Develop strong long term relationship withcustomersndash Where what why they buy is to be understoodndash Segment the market and identify the targets in

eachgroupBuilding strong brandsndash Develop products with strong brand namesndash Establish these brands monitor them and keepevaluating them

Understand competitionbull Shaping the market offeringsndash Product quality design shape price

maintenanceafter sales service discounts schemes credit

terms

bull Delivering valuendash Determine channels of distributionndash Make it available within easy reach of the

customers

Communicating valuendash Develop and run marketing communications toinform persuade remind consumers directly orindirectly about the brands they sellndash Develop mass programmes sales promotions directselling public relations interactive marketing andother activitiesbull Creating long term growthndash Initiate programmes to constantly monitor growthndash Product relaunches new product developmentevaluating marketing programmes should beconstantly undertaken

Value SatisfactionValue reflects the perceived tangible and intangible benefits

andcosts to the customersValue is a combination of quality service and price (QSP) called the lsquocustomer value triadrsquoValue increases with quality and decreases with priceMarketing constantly works on increasing and communicatingvalue to the consumersSatisfaction is the cumulative comparative judgements

resultingfrom the productrsquos perceived performance or outcome inrelation to his or her expectations Satisfaction is directlyproportional to expectations and exceeds and decreases with

it

bull Customer value

The Customer delivered value is the difference between total customer value and total customer cost

The total customer value is the bundle of benefits customer expects from a given product or service

Total customer cost is the bundle of costs customers expect to incur in evaluating obtaining using and disposing of the product or service

Now we shall go to the section of how marketing creates value

for the consumerMarketing has to constantly create and deliver value to theconsumerValue we saw in the previous chapter as a sum total oftangible and intangible perceived by the consumer for the

pricethat he paysMarketers must first choose the value delivery process andcommunicate superior value by fine tuning the process

Value delivery process The delivery process has three stages as is explained belowndash First phase choosing the valueThis is the first phase of determining what should be the

valueoffered to the consumerbull Homework before any product is marketedbull Segment the market select the target and develop thevalue positioningbull STP ndash seg targeting positioning is the essence ofmarketingndash Second phase providing the valuebull Developing product features pricing sourcing makingdistributing the product

Third phase communicating the valueUtilise sales force promotion advertising masscommunicationNirmallya Kumar has proposed a 3 V approach to

marketing3Vrsquos Value segmentValue propositionValue networkbull Value segments ndash customers ( hisher needs)bull Value proposition ndash product offeringbull Value network - channel method of delivering thevalue

The concept of Value Chain bull Michael Porterrsquos value chain is a tool

for creating more customer valueAccording to this model every

business gets into nine value creating activities out of which five are primary activities and four are support activities

bull Primary activities bringing materials (inbound logistics) converting them into final products (operations)shipping out final products (outbound logistics)marketing (marketing and sales)servicing (service)bull Support activities procurement HR technologydevelopment and firm infrastructureThe firm constantly examines costs and performance in each ofthese value creating activity and looks for ways to improve thefunction The firm analyses the competitors costs andbenchmarks against which to perform It also establishes lsquo bestpracticesrsquo and makes them industry standards

bull All of these must be aligned to the core businessprocessesbull Today companies are partnering with suppliers anddistributors to create a superior value network or a supplychainThe need for developing Core competenciesbull Core business processes need resources ndash labour powermaterials machines informationbull Nurture resources to gain better competenciesbull Outsource others to reduce overheads and concentrate

onthe core

Holistic marketing framework and customer value

Holistic marketing talks about three key management questions on value

Value exploration Value creation Value delivery

Let us examine each in detail

1048729 Value exploration- Must integrate cognitive space competency of

thecompany and resource space of the organization- Cognitive space includes existing and latent

needs- Competency space understanding scope ofbusiness and physical and knowledge competencies- Resource space partners who can collaborate

withthem

1048729 Value Creation- Marketers must identify the following- Customer benefits- Utilise core competencies- Manage business partners- To realign core competencies - Define the business concept- Reshape the scope of business- Position (re) the companyrsquos identity in peoplersquosminds

1048729 Value Delivery- Customer relationship constantly

understand customer needs- Internal resource management

single family of software to link all business processes

- Business partnership allows to manage complex business relationships

Who MarketsA marketer is someone who has a product service to

offer sell He seeks response from the other party a prospect

theone who receives the message and decides to act upon itMarketers stimulate demand in the marketplace for theircompanyrsquos products demand management is an

importantfunction for any marketing departmentMarketers seek to influence the level of demand time ofdemand and composition of demand

Eight states of demand are possible 1 Negative demand Consumers dislike the

product and may even pay a price to avoid it2 Non Existent demand Consumes may be

unaware or uninterested in the product3 Latent demand Consumers may share a

strong need that cannot be satisfied by an existing product

4 Declining demand Consumers buy less frequently or not

at all5 Irregular demand Consumer purchases vary onoccasional basis seasonal weekly monthly6 Full demand Consumers are adequately purchasingexpected levels of products7 Overfull demand More consumers want the product

butcanrsquot be satisfied8 Unwholesome demand Consumers are attracted toproducts that have undesirable social consequences

What are the tasks of Marketing management

bull Developing marketing strategies and plansbull Capturing marketing insightsbull Connecting with the consumersbull Building strong brandsbull Shaping the market offeringsbull Delivering valuebull Communicating valuebull Creating long term growth

Developing marketing strategies and plansndash Identify long and short term potentialsndash Make strategic and tactical plans

bull Capturing marketing insightsndash Closely monitor marketing environmentndash Gather information both at micro and macro levelsndash Establish marketing information system marketingresearch system marketing implementation systemmarketing control system

Connecting with the consumersndash Develop strong long term relationship withcustomersndash Where what why they buy is to be understoodndash Segment the market and identify the targets in

eachgroupBuilding strong brandsndash Develop products with strong brand namesndash Establish these brands monitor them and keepevaluating them

Understand competitionbull Shaping the market offeringsndash Product quality design shape price

maintenanceafter sales service discounts schemes credit

terms

bull Delivering valuendash Determine channels of distributionndash Make it available within easy reach of the

customers

Communicating valuendash Develop and run marketing communications toinform persuade remind consumers directly orindirectly about the brands they sellndash Develop mass programmes sales promotions directselling public relations interactive marketing andother activitiesbull Creating long term growthndash Initiate programmes to constantly monitor growthndash Product relaunches new product developmentevaluating marketing programmes should beconstantly undertaken

bull Customer value

The Customer delivered value is the difference between total customer value and total customer cost

The total customer value is the bundle of benefits customer expects from a given product or service

Total customer cost is the bundle of costs customers expect to incur in evaluating obtaining using and disposing of the product or service

Now we shall go to the section of how marketing creates value

for the consumerMarketing has to constantly create and deliver value to theconsumerValue we saw in the previous chapter as a sum total oftangible and intangible perceived by the consumer for the

pricethat he paysMarketers must first choose the value delivery process andcommunicate superior value by fine tuning the process

Value delivery process The delivery process has three stages as is explained belowndash First phase choosing the valueThis is the first phase of determining what should be the

valueoffered to the consumerbull Homework before any product is marketedbull Segment the market select the target and develop thevalue positioningbull STP ndash seg targeting positioning is the essence ofmarketingndash Second phase providing the valuebull Developing product features pricing sourcing makingdistributing the product

Third phase communicating the valueUtilise sales force promotion advertising masscommunicationNirmallya Kumar has proposed a 3 V approach to

marketing3Vrsquos Value segmentValue propositionValue networkbull Value segments ndash customers ( hisher needs)bull Value proposition ndash product offeringbull Value network - channel method of delivering thevalue

The concept of Value Chain bull Michael Porterrsquos value chain is a tool

for creating more customer valueAccording to this model every

business gets into nine value creating activities out of which five are primary activities and four are support activities

bull Primary activities bringing materials (inbound logistics) converting them into final products (operations)shipping out final products (outbound logistics)marketing (marketing and sales)servicing (service)bull Support activities procurement HR technologydevelopment and firm infrastructureThe firm constantly examines costs and performance in each ofthese value creating activity and looks for ways to improve thefunction The firm analyses the competitors costs andbenchmarks against which to perform It also establishes lsquo bestpracticesrsquo and makes them industry standards

bull All of these must be aligned to the core businessprocessesbull Today companies are partnering with suppliers anddistributors to create a superior value network or a supplychainThe need for developing Core competenciesbull Core business processes need resources ndash labour powermaterials machines informationbull Nurture resources to gain better competenciesbull Outsource others to reduce overheads and concentrate

onthe core

Holistic marketing framework and customer value

Holistic marketing talks about three key management questions on value

Value exploration Value creation Value delivery

Let us examine each in detail

1048729 Value exploration- Must integrate cognitive space competency of

thecompany and resource space of the organization- Cognitive space includes existing and latent

needs- Competency space understanding scope ofbusiness and physical and knowledge competencies- Resource space partners who can collaborate

withthem

1048729 Value Creation- Marketers must identify the following- Customer benefits- Utilise core competencies- Manage business partners- To realign core competencies - Define the business concept- Reshape the scope of business- Position (re) the companyrsquos identity in peoplersquosminds

1048729 Value Delivery- Customer relationship constantly

understand customer needs- Internal resource management

single family of software to link all business processes

- Business partnership allows to manage complex business relationships

Who MarketsA marketer is someone who has a product service to

offer sell He seeks response from the other party a prospect

theone who receives the message and decides to act upon itMarketers stimulate demand in the marketplace for theircompanyrsquos products demand management is an

importantfunction for any marketing departmentMarketers seek to influence the level of demand time ofdemand and composition of demand

Eight states of demand are possible 1 Negative demand Consumers dislike the

product and may even pay a price to avoid it2 Non Existent demand Consumes may be

unaware or uninterested in the product3 Latent demand Consumers may share a

strong need that cannot be satisfied by an existing product

4 Declining demand Consumers buy less frequently or not

at all5 Irregular demand Consumer purchases vary onoccasional basis seasonal weekly monthly6 Full demand Consumers are adequately purchasingexpected levels of products7 Overfull demand More consumers want the product

butcanrsquot be satisfied8 Unwholesome demand Consumers are attracted toproducts that have undesirable social consequences

What are the tasks of Marketing management

bull Developing marketing strategies and plansbull Capturing marketing insightsbull Connecting with the consumersbull Building strong brandsbull Shaping the market offeringsbull Delivering valuebull Communicating valuebull Creating long term growth

Developing marketing strategies and plansndash Identify long and short term potentialsndash Make strategic and tactical plans

bull Capturing marketing insightsndash Closely monitor marketing environmentndash Gather information both at micro and macro levelsndash Establish marketing information system marketingresearch system marketing implementation systemmarketing control system

Connecting with the consumersndash Develop strong long term relationship withcustomersndash Where what why they buy is to be understoodndash Segment the market and identify the targets in

eachgroupBuilding strong brandsndash Develop products with strong brand namesndash Establish these brands monitor them and keepevaluating them

Understand competitionbull Shaping the market offeringsndash Product quality design shape price

maintenanceafter sales service discounts schemes credit

terms

bull Delivering valuendash Determine channels of distributionndash Make it available within easy reach of the

customers

Communicating valuendash Develop and run marketing communications toinform persuade remind consumers directly orindirectly about the brands they sellndash Develop mass programmes sales promotions directselling public relations interactive marketing andother activitiesbull Creating long term growthndash Initiate programmes to constantly monitor growthndash Product relaunches new product developmentevaluating marketing programmes should beconstantly undertaken

Now we shall go to the section of how marketing creates value

for the consumerMarketing has to constantly create and deliver value to theconsumerValue we saw in the previous chapter as a sum total oftangible and intangible perceived by the consumer for the

pricethat he paysMarketers must first choose the value delivery process andcommunicate superior value by fine tuning the process

Value delivery process The delivery process has three stages as is explained belowndash First phase choosing the valueThis is the first phase of determining what should be the

valueoffered to the consumerbull Homework before any product is marketedbull Segment the market select the target and develop thevalue positioningbull STP ndash seg targeting positioning is the essence ofmarketingndash Second phase providing the valuebull Developing product features pricing sourcing makingdistributing the product

Third phase communicating the valueUtilise sales force promotion advertising masscommunicationNirmallya Kumar has proposed a 3 V approach to

marketing3Vrsquos Value segmentValue propositionValue networkbull Value segments ndash customers ( hisher needs)bull Value proposition ndash product offeringbull Value network - channel method of delivering thevalue

The concept of Value Chain bull Michael Porterrsquos value chain is a tool

for creating more customer valueAccording to this model every

business gets into nine value creating activities out of which five are primary activities and four are support activities

bull Primary activities bringing materials (inbound logistics) converting them into final products (operations)shipping out final products (outbound logistics)marketing (marketing and sales)servicing (service)bull Support activities procurement HR technologydevelopment and firm infrastructureThe firm constantly examines costs and performance in each ofthese value creating activity and looks for ways to improve thefunction The firm analyses the competitors costs andbenchmarks against which to perform It also establishes lsquo bestpracticesrsquo and makes them industry standards

bull All of these must be aligned to the core businessprocessesbull Today companies are partnering with suppliers anddistributors to create a superior value network or a supplychainThe need for developing Core competenciesbull Core business processes need resources ndash labour powermaterials machines informationbull Nurture resources to gain better competenciesbull Outsource others to reduce overheads and concentrate

onthe core

Holistic marketing framework and customer value

Holistic marketing talks about three key management questions on value

Value exploration Value creation Value delivery

Let us examine each in detail

1048729 Value exploration- Must integrate cognitive space competency of

thecompany and resource space of the organization- Cognitive space includes existing and latent

needs- Competency space understanding scope ofbusiness and physical and knowledge competencies- Resource space partners who can collaborate

withthem

1048729 Value Creation- Marketers must identify the following- Customer benefits- Utilise core competencies- Manage business partners- To realign core competencies - Define the business concept- Reshape the scope of business- Position (re) the companyrsquos identity in peoplersquosminds

1048729 Value Delivery- Customer relationship constantly

understand customer needs- Internal resource management

single family of software to link all business processes

- Business partnership allows to manage complex business relationships

Who MarketsA marketer is someone who has a product service to

offer sell He seeks response from the other party a prospect

theone who receives the message and decides to act upon itMarketers stimulate demand in the marketplace for theircompanyrsquos products demand management is an

importantfunction for any marketing departmentMarketers seek to influence the level of demand time ofdemand and composition of demand

Eight states of demand are possible 1 Negative demand Consumers dislike the

product and may even pay a price to avoid it2 Non Existent demand Consumes may be

unaware or uninterested in the product3 Latent demand Consumers may share a

strong need that cannot be satisfied by an existing product

4 Declining demand Consumers buy less frequently or not

at all5 Irregular demand Consumer purchases vary onoccasional basis seasonal weekly monthly6 Full demand Consumers are adequately purchasingexpected levels of products7 Overfull demand More consumers want the product

butcanrsquot be satisfied8 Unwholesome demand Consumers are attracted toproducts that have undesirable social consequences

What are the tasks of Marketing management

bull Developing marketing strategies and plansbull Capturing marketing insightsbull Connecting with the consumersbull Building strong brandsbull Shaping the market offeringsbull Delivering valuebull Communicating valuebull Creating long term growth

Developing marketing strategies and plansndash Identify long and short term potentialsndash Make strategic and tactical plans

bull Capturing marketing insightsndash Closely monitor marketing environmentndash Gather information both at micro and macro levelsndash Establish marketing information system marketingresearch system marketing implementation systemmarketing control system

Connecting with the consumersndash Develop strong long term relationship withcustomersndash Where what why they buy is to be understoodndash Segment the market and identify the targets in

eachgroupBuilding strong brandsndash Develop products with strong brand namesndash Establish these brands monitor them and keepevaluating them

Understand competitionbull Shaping the market offeringsndash Product quality design shape price

maintenanceafter sales service discounts schemes credit

terms

bull Delivering valuendash Determine channels of distributionndash Make it available within easy reach of the

customers

Communicating valuendash Develop and run marketing communications toinform persuade remind consumers directly orindirectly about the brands they sellndash Develop mass programmes sales promotions directselling public relations interactive marketing andother activitiesbull Creating long term growthndash Initiate programmes to constantly monitor growthndash Product relaunches new product developmentevaluating marketing programmes should beconstantly undertaken

Value delivery process The delivery process has three stages as is explained belowndash First phase choosing the valueThis is the first phase of determining what should be the

valueoffered to the consumerbull Homework before any product is marketedbull Segment the market select the target and develop thevalue positioningbull STP ndash seg targeting positioning is the essence ofmarketingndash Second phase providing the valuebull Developing product features pricing sourcing makingdistributing the product

Third phase communicating the valueUtilise sales force promotion advertising masscommunicationNirmallya Kumar has proposed a 3 V approach to

marketing3Vrsquos Value segmentValue propositionValue networkbull Value segments ndash customers ( hisher needs)bull Value proposition ndash product offeringbull Value network - channel method of delivering thevalue

The concept of Value Chain bull Michael Porterrsquos value chain is a tool

for creating more customer valueAccording to this model every

business gets into nine value creating activities out of which five are primary activities and four are support activities

bull Primary activities bringing materials (inbound logistics) converting them into final products (operations)shipping out final products (outbound logistics)marketing (marketing and sales)servicing (service)bull Support activities procurement HR technologydevelopment and firm infrastructureThe firm constantly examines costs and performance in each ofthese value creating activity and looks for ways to improve thefunction The firm analyses the competitors costs andbenchmarks against which to perform It also establishes lsquo bestpracticesrsquo and makes them industry standards

bull All of these must be aligned to the core businessprocessesbull Today companies are partnering with suppliers anddistributors to create a superior value network or a supplychainThe need for developing Core competenciesbull Core business processes need resources ndash labour powermaterials machines informationbull Nurture resources to gain better competenciesbull Outsource others to reduce overheads and concentrate

onthe core

Holistic marketing framework and customer value

Holistic marketing talks about three key management questions on value

Value exploration Value creation Value delivery

Let us examine each in detail

1048729 Value exploration- Must integrate cognitive space competency of

thecompany and resource space of the organization- Cognitive space includes existing and latent

needs- Competency space understanding scope ofbusiness and physical and knowledge competencies- Resource space partners who can collaborate

withthem

1048729 Value Creation- Marketers must identify the following- Customer benefits- Utilise core competencies- Manage business partners- To realign core competencies - Define the business concept- Reshape the scope of business- Position (re) the companyrsquos identity in peoplersquosminds

1048729 Value Delivery- Customer relationship constantly

understand customer needs- Internal resource management

single family of software to link all business processes

- Business partnership allows to manage complex business relationships

Who MarketsA marketer is someone who has a product service to

offer sell He seeks response from the other party a prospect

theone who receives the message and decides to act upon itMarketers stimulate demand in the marketplace for theircompanyrsquos products demand management is an

importantfunction for any marketing departmentMarketers seek to influence the level of demand time ofdemand and composition of demand

Eight states of demand are possible 1 Negative demand Consumers dislike the

product and may even pay a price to avoid it2 Non Existent demand Consumes may be

unaware or uninterested in the product3 Latent demand Consumers may share a

strong need that cannot be satisfied by an existing product

4 Declining demand Consumers buy less frequently or not

at all5 Irregular demand Consumer purchases vary onoccasional basis seasonal weekly monthly6 Full demand Consumers are adequately purchasingexpected levels of products7 Overfull demand More consumers want the product

butcanrsquot be satisfied8 Unwholesome demand Consumers are attracted toproducts that have undesirable social consequences

What are the tasks of Marketing management

bull Developing marketing strategies and plansbull Capturing marketing insightsbull Connecting with the consumersbull Building strong brandsbull Shaping the market offeringsbull Delivering valuebull Communicating valuebull Creating long term growth

Developing marketing strategies and plansndash Identify long and short term potentialsndash Make strategic and tactical plans

bull Capturing marketing insightsndash Closely monitor marketing environmentndash Gather information both at micro and macro levelsndash Establish marketing information system marketingresearch system marketing implementation systemmarketing control system

Connecting with the consumersndash Develop strong long term relationship withcustomersndash Where what why they buy is to be understoodndash Segment the market and identify the targets in

eachgroupBuilding strong brandsndash Develop products with strong brand namesndash Establish these brands monitor them and keepevaluating them

Understand competitionbull Shaping the market offeringsndash Product quality design shape price

maintenanceafter sales service discounts schemes credit

terms

bull Delivering valuendash Determine channels of distributionndash Make it available within easy reach of the

customers

Communicating valuendash Develop and run marketing communications toinform persuade remind consumers directly orindirectly about the brands they sellndash Develop mass programmes sales promotions directselling public relations interactive marketing andother activitiesbull Creating long term growthndash Initiate programmes to constantly monitor growthndash Product relaunches new product developmentevaluating marketing programmes should beconstantly undertaken

Third phase communicating the valueUtilise sales force promotion advertising masscommunicationNirmallya Kumar has proposed a 3 V approach to

marketing3Vrsquos Value segmentValue propositionValue networkbull Value segments ndash customers ( hisher needs)bull Value proposition ndash product offeringbull Value network - channel method of delivering thevalue

The concept of Value Chain bull Michael Porterrsquos value chain is a tool

for creating more customer valueAccording to this model every

business gets into nine value creating activities out of which five are primary activities and four are support activities

bull Primary activities bringing materials (inbound logistics) converting them into final products (operations)shipping out final products (outbound logistics)marketing (marketing and sales)servicing (service)bull Support activities procurement HR technologydevelopment and firm infrastructureThe firm constantly examines costs and performance in each ofthese value creating activity and looks for ways to improve thefunction The firm analyses the competitors costs andbenchmarks against which to perform It also establishes lsquo bestpracticesrsquo and makes them industry standards

bull All of these must be aligned to the core businessprocessesbull Today companies are partnering with suppliers anddistributors to create a superior value network or a supplychainThe need for developing Core competenciesbull Core business processes need resources ndash labour powermaterials machines informationbull Nurture resources to gain better competenciesbull Outsource others to reduce overheads and concentrate

onthe core

Holistic marketing framework and customer value

Holistic marketing talks about three key management questions on value

Value exploration Value creation Value delivery

Let us examine each in detail

1048729 Value exploration- Must integrate cognitive space competency of

thecompany and resource space of the organization- Cognitive space includes existing and latent

needs- Competency space understanding scope ofbusiness and physical and knowledge competencies- Resource space partners who can collaborate

withthem

1048729 Value Creation- Marketers must identify the following- Customer benefits- Utilise core competencies- Manage business partners- To realign core competencies - Define the business concept- Reshape the scope of business- Position (re) the companyrsquos identity in peoplersquosminds

1048729 Value Delivery- Customer relationship constantly

understand customer needs- Internal resource management

single family of software to link all business processes

- Business partnership allows to manage complex business relationships

Who MarketsA marketer is someone who has a product service to

offer sell He seeks response from the other party a prospect

theone who receives the message and decides to act upon itMarketers stimulate demand in the marketplace for theircompanyrsquos products demand management is an

importantfunction for any marketing departmentMarketers seek to influence the level of demand time ofdemand and composition of demand

Eight states of demand are possible 1 Negative demand Consumers dislike the

product and may even pay a price to avoid it2 Non Existent demand Consumes may be

unaware or uninterested in the product3 Latent demand Consumers may share a

strong need that cannot be satisfied by an existing product

4 Declining demand Consumers buy less frequently or not

at all5 Irregular demand Consumer purchases vary onoccasional basis seasonal weekly monthly6 Full demand Consumers are adequately purchasingexpected levels of products7 Overfull demand More consumers want the product

butcanrsquot be satisfied8 Unwholesome demand Consumers are attracted toproducts that have undesirable social consequences

What are the tasks of Marketing management

bull Developing marketing strategies and plansbull Capturing marketing insightsbull Connecting with the consumersbull Building strong brandsbull Shaping the market offeringsbull Delivering valuebull Communicating valuebull Creating long term growth

Developing marketing strategies and plansndash Identify long and short term potentialsndash Make strategic and tactical plans

bull Capturing marketing insightsndash Closely monitor marketing environmentndash Gather information both at micro and macro levelsndash Establish marketing information system marketingresearch system marketing implementation systemmarketing control system

Connecting with the consumersndash Develop strong long term relationship withcustomersndash Where what why they buy is to be understoodndash Segment the market and identify the targets in

eachgroupBuilding strong brandsndash Develop products with strong brand namesndash Establish these brands monitor them and keepevaluating them

Understand competitionbull Shaping the market offeringsndash Product quality design shape price

maintenanceafter sales service discounts schemes credit

terms

bull Delivering valuendash Determine channels of distributionndash Make it available within easy reach of the

customers

Communicating valuendash Develop and run marketing communications toinform persuade remind consumers directly orindirectly about the brands they sellndash Develop mass programmes sales promotions directselling public relations interactive marketing andother activitiesbull Creating long term growthndash Initiate programmes to constantly monitor growthndash Product relaunches new product developmentevaluating marketing programmes should beconstantly undertaken

The concept of Value Chain bull Michael Porterrsquos value chain is a tool

for creating more customer valueAccording to this model every

business gets into nine value creating activities out of which five are primary activities and four are support activities

bull Primary activities bringing materials (inbound logistics) converting them into final products (operations)shipping out final products (outbound logistics)marketing (marketing and sales)servicing (service)bull Support activities procurement HR technologydevelopment and firm infrastructureThe firm constantly examines costs and performance in each ofthese value creating activity and looks for ways to improve thefunction The firm analyses the competitors costs andbenchmarks against which to perform It also establishes lsquo bestpracticesrsquo and makes them industry standards

bull All of these must be aligned to the core businessprocessesbull Today companies are partnering with suppliers anddistributors to create a superior value network or a supplychainThe need for developing Core competenciesbull Core business processes need resources ndash labour powermaterials machines informationbull Nurture resources to gain better competenciesbull Outsource others to reduce overheads and concentrate

onthe core

Holistic marketing framework and customer value

Holistic marketing talks about three key management questions on value

Value exploration Value creation Value delivery

Let us examine each in detail

1048729 Value exploration- Must integrate cognitive space competency of

thecompany and resource space of the organization- Cognitive space includes existing and latent

needs- Competency space understanding scope ofbusiness and physical and knowledge competencies- Resource space partners who can collaborate

withthem

1048729 Value Creation- Marketers must identify the following- Customer benefits- Utilise core competencies- Manage business partners- To realign core competencies - Define the business concept- Reshape the scope of business- Position (re) the companyrsquos identity in peoplersquosminds

1048729 Value Delivery- Customer relationship constantly

understand customer needs- Internal resource management

single family of software to link all business processes

- Business partnership allows to manage complex business relationships

Who MarketsA marketer is someone who has a product service to

offer sell He seeks response from the other party a prospect

theone who receives the message and decides to act upon itMarketers stimulate demand in the marketplace for theircompanyrsquos products demand management is an

importantfunction for any marketing departmentMarketers seek to influence the level of demand time ofdemand and composition of demand

Eight states of demand are possible 1 Negative demand Consumers dislike the

product and may even pay a price to avoid it2 Non Existent demand Consumes may be

unaware or uninterested in the product3 Latent demand Consumers may share a

strong need that cannot be satisfied by an existing product

4 Declining demand Consumers buy less frequently or not

at all5 Irregular demand Consumer purchases vary onoccasional basis seasonal weekly monthly6 Full demand Consumers are adequately purchasingexpected levels of products7 Overfull demand More consumers want the product

butcanrsquot be satisfied8 Unwholesome demand Consumers are attracted toproducts that have undesirable social consequences

What are the tasks of Marketing management

bull Developing marketing strategies and plansbull Capturing marketing insightsbull Connecting with the consumersbull Building strong brandsbull Shaping the market offeringsbull Delivering valuebull Communicating valuebull Creating long term growth

Developing marketing strategies and plansndash Identify long and short term potentialsndash Make strategic and tactical plans

bull Capturing marketing insightsndash Closely monitor marketing environmentndash Gather information both at micro and macro levelsndash Establish marketing information system marketingresearch system marketing implementation systemmarketing control system

Connecting with the consumersndash Develop strong long term relationship withcustomersndash Where what why they buy is to be understoodndash Segment the market and identify the targets in

eachgroupBuilding strong brandsndash Develop products with strong brand namesndash Establish these brands monitor them and keepevaluating them

Understand competitionbull Shaping the market offeringsndash Product quality design shape price

maintenanceafter sales service discounts schemes credit

terms

bull Delivering valuendash Determine channels of distributionndash Make it available within easy reach of the

customers

Communicating valuendash Develop and run marketing communications toinform persuade remind consumers directly orindirectly about the brands they sellndash Develop mass programmes sales promotions directselling public relations interactive marketing andother activitiesbull Creating long term growthndash Initiate programmes to constantly monitor growthndash Product relaunches new product developmentevaluating marketing programmes should beconstantly undertaken

bull Primary activities bringing materials (inbound logistics) converting them into final products (operations)shipping out final products (outbound logistics)marketing (marketing and sales)servicing (service)bull Support activities procurement HR technologydevelopment and firm infrastructureThe firm constantly examines costs and performance in each ofthese value creating activity and looks for ways to improve thefunction The firm analyses the competitors costs andbenchmarks against which to perform It also establishes lsquo bestpracticesrsquo and makes them industry standards

bull All of these must be aligned to the core businessprocessesbull Today companies are partnering with suppliers anddistributors to create a superior value network or a supplychainThe need for developing Core competenciesbull Core business processes need resources ndash labour powermaterials machines informationbull Nurture resources to gain better competenciesbull Outsource others to reduce overheads and concentrate

onthe core

Holistic marketing framework and customer value

Holistic marketing talks about three key management questions on value

Value exploration Value creation Value delivery

Let us examine each in detail

1048729 Value exploration- Must integrate cognitive space competency of

thecompany and resource space of the organization- Cognitive space includes existing and latent

needs- Competency space understanding scope ofbusiness and physical and knowledge competencies- Resource space partners who can collaborate

withthem

1048729 Value Creation- Marketers must identify the following- Customer benefits- Utilise core competencies- Manage business partners- To realign core competencies - Define the business concept- Reshape the scope of business- Position (re) the companyrsquos identity in peoplersquosminds

1048729 Value Delivery- Customer relationship constantly

understand customer needs- Internal resource management

single family of software to link all business processes

- Business partnership allows to manage complex business relationships

Who MarketsA marketer is someone who has a product service to

offer sell He seeks response from the other party a prospect

theone who receives the message and decides to act upon itMarketers stimulate demand in the marketplace for theircompanyrsquos products demand management is an

importantfunction for any marketing departmentMarketers seek to influence the level of demand time ofdemand and composition of demand

Eight states of demand are possible 1 Negative demand Consumers dislike the

product and may even pay a price to avoid it2 Non Existent demand Consumes may be

unaware or uninterested in the product3 Latent demand Consumers may share a

strong need that cannot be satisfied by an existing product

4 Declining demand Consumers buy less frequently or not

at all5 Irregular demand Consumer purchases vary onoccasional basis seasonal weekly monthly6 Full demand Consumers are adequately purchasingexpected levels of products7 Overfull demand More consumers want the product

butcanrsquot be satisfied8 Unwholesome demand Consumers are attracted toproducts that have undesirable social consequences

What are the tasks of Marketing management

bull Developing marketing strategies and plansbull Capturing marketing insightsbull Connecting with the consumersbull Building strong brandsbull Shaping the market offeringsbull Delivering valuebull Communicating valuebull Creating long term growth

Developing marketing strategies and plansndash Identify long and short term potentialsndash Make strategic and tactical plans

bull Capturing marketing insightsndash Closely monitor marketing environmentndash Gather information both at micro and macro levelsndash Establish marketing information system marketingresearch system marketing implementation systemmarketing control system

Connecting with the consumersndash Develop strong long term relationship withcustomersndash Where what why they buy is to be understoodndash Segment the market and identify the targets in

eachgroupBuilding strong brandsndash Develop products with strong brand namesndash Establish these brands monitor them and keepevaluating them

Understand competitionbull Shaping the market offeringsndash Product quality design shape price

maintenanceafter sales service discounts schemes credit

terms

bull Delivering valuendash Determine channels of distributionndash Make it available within easy reach of the

customers

Communicating valuendash Develop and run marketing communications toinform persuade remind consumers directly orindirectly about the brands they sellndash Develop mass programmes sales promotions directselling public relations interactive marketing andother activitiesbull Creating long term growthndash Initiate programmes to constantly monitor growthndash Product relaunches new product developmentevaluating marketing programmes should beconstantly undertaken

bull All of these must be aligned to the core businessprocessesbull Today companies are partnering with suppliers anddistributors to create a superior value network or a supplychainThe need for developing Core competenciesbull Core business processes need resources ndash labour powermaterials machines informationbull Nurture resources to gain better competenciesbull Outsource others to reduce overheads and concentrate

onthe core

Holistic marketing framework and customer value

Holistic marketing talks about three key management questions on value

Value exploration Value creation Value delivery

Let us examine each in detail

1048729 Value exploration- Must integrate cognitive space competency of

thecompany and resource space of the organization- Cognitive space includes existing and latent

needs- Competency space understanding scope ofbusiness and physical and knowledge competencies- Resource space partners who can collaborate

withthem

1048729 Value Creation- Marketers must identify the following- Customer benefits- Utilise core competencies- Manage business partners- To realign core competencies - Define the business concept- Reshape the scope of business- Position (re) the companyrsquos identity in peoplersquosminds

1048729 Value Delivery- Customer relationship constantly

understand customer needs- Internal resource management

single family of software to link all business processes

- Business partnership allows to manage complex business relationships

Who MarketsA marketer is someone who has a product service to

offer sell He seeks response from the other party a prospect

theone who receives the message and decides to act upon itMarketers stimulate demand in the marketplace for theircompanyrsquos products demand management is an

importantfunction for any marketing departmentMarketers seek to influence the level of demand time ofdemand and composition of demand

Eight states of demand are possible 1 Negative demand Consumers dislike the

product and may even pay a price to avoid it2 Non Existent demand Consumes may be

unaware or uninterested in the product3 Latent demand Consumers may share a

strong need that cannot be satisfied by an existing product

4 Declining demand Consumers buy less frequently or not

at all5 Irregular demand Consumer purchases vary onoccasional basis seasonal weekly monthly6 Full demand Consumers are adequately purchasingexpected levels of products7 Overfull demand More consumers want the product

butcanrsquot be satisfied8 Unwholesome demand Consumers are attracted toproducts that have undesirable social consequences

What are the tasks of Marketing management

bull Developing marketing strategies and plansbull Capturing marketing insightsbull Connecting with the consumersbull Building strong brandsbull Shaping the market offeringsbull Delivering valuebull Communicating valuebull Creating long term growth

Developing marketing strategies and plansndash Identify long and short term potentialsndash Make strategic and tactical plans

bull Capturing marketing insightsndash Closely monitor marketing environmentndash Gather information both at micro and macro levelsndash Establish marketing information system marketingresearch system marketing implementation systemmarketing control system

Connecting with the consumersndash Develop strong long term relationship withcustomersndash Where what why they buy is to be understoodndash Segment the market and identify the targets in

eachgroupBuilding strong brandsndash Develop products with strong brand namesndash Establish these brands monitor them and keepevaluating them

Understand competitionbull Shaping the market offeringsndash Product quality design shape price

maintenanceafter sales service discounts schemes credit

terms

bull Delivering valuendash Determine channels of distributionndash Make it available within easy reach of the

customers

Communicating valuendash Develop and run marketing communications toinform persuade remind consumers directly orindirectly about the brands they sellndash Develop mass programmes sales promotions directselling public relations interactive marketing andother activitiesbull Creating long term growthndash Initiate programmes to constantly monitor growthndash Product relaunches new product developmentevaluating marketing programmes should beconstantly undertaken

Holistic marketing framework and customer value

Holistic marketing talks about three key management questions on value

Value exploration Value creation Value delivery

Let us examine each in detail

1048729 Value exploration- Must integrate cognitive space competency of

thecompany and resource space of the organization- Cognitive space includes existing and latent

needs- Competency space understanding scope ofbusiness and physical and knowledge competencies- Resource space partners who can collaborate

withthem

1048729 Value Creation- Marketers must identify the following- Customer benefits- Utilise core competencies- Manage business partners- To realign core competencies - Define the business concept- Reshape the scope of business- Position (re) the companyrsquos identity in peoplersquosminds

1048729 Value Delivery- Customer relationship constantly

understand customer needs- Internal resource management

single family of software to link all business processes

- Business partnership allows to manage complex business relationships

Who MarketsA marketer is someone who has a product service to

offer sell He seeks response from the other party a prospect

theone who receives the message and decides to act upon itMarketers stimulate demand in the marketplace for theircompanyrsquos products demand management is an

importantfunction for any marketing departmentMarketers seek to influence the level of demand time ofdemand and composition of demand

Eight states of demand are possible 1 Negative demand Consumers dislike the

product and may even pay a price to avoid it2 Non Existent demand Consumes may be

unaware or uninterested in the product3 Latent demand Consumers may share a

strong need that cannot be satisfied by an existing product

4 Declining demand Consumers buy less frequently or not

at all5 Irregular demand Consumer purchases vary onoccasional basis seasonal weekly monthly6 Full demand Consumers are adequately purchasingexpected levels of products7 Overfull demand More consumers want the product

butcanrsquot be satisfied8 Unwholesome demand Consumers are attracted toproducts that have undesirable social consequences

What are the tasks of Marketing management

bull Developing marketing strategies and plansbull Capturing marketing insightsbull Connecting with the consumersbull Building strong brandsbull Shaping the market offeringsbull Delivering valuebull Communicating valuebull Creating long term growth

Developing marketing strategies and plansndash Identify long and short term potentialsndash Make strategic and tactical plans

bull Capturing marketing insightsndash Closely monitor marketing environmentndash Gather information both at micro and macro levelsndash Establish marketing information system marketingresearch system marketing implementation systemmarketing control system

Connecting with the consumersndash Develop strong long term relationship withcustomersndash Where what why they buy is to be understoodndash Segment the market and identify the targets in

eachgroupBuilding strong brandsndash Develop products with strong brand namesndash Establish these brands monitor them and keepevaluating them

Understand competitionbull Shaping the market offeringsndash Product quality design shape price

maintenanceafter sales service discounts schemes credit

terms

bull Delivering valuendash Determine channels of distributionndash Make it available within easy reach of the

customers

Communicating valuendash Develop and run marketing communications toinform persuade remind consumers directly orindirectly about the brands they sellndash Develop mass programmes sales promotions directselling public relations interactive marketing andother activitiesbull Creating long term growthndash Initiate programmes to constantly monitor growthndash Product relaunches new product developmentevaluating marketing programmes should beconstantly undertaken

1048729 Value exploration- Must integrate cognitive space competency of

thecompany and resource space of the organization- Cognitive space includes existing and latent

needs- Competency space understanding scope ofbusiness and physical and knowledge competencies- Resource space partners who can collaborate

withthem

1048729 Value Creation- Marketers must identify the following- Customer benefits- Utilise core competencies- Manage business partners- To realign core competencies - Define the business concept- Reshape the scope of business- Position (re) the companyrsquos identity in peoplersquosminds

1048729 Value Delivery- Customer relationship constantly

understand customer needs- Internal resource management

single family of software to link all business processes

- Business partnership allows to manage complex business relationships

Who MarketsA marketer is someone who has a product service to

offer sell He seeks response from the other party a prospect

theone who receives the message and decides to act upon itMarketers stimulate demand in the marketplace for theircompanyrsquos products demand management is an

importantfunction for any marketing departmentMarketers seek to influence the level of demand time ofdemand and composition of demand

Eight states of demand are possible 1 Negative demand Consumers dislike the

product and may even pay a price to avoid it2 Non Existent demand Consumes may be

unaware or uninterested in the product3 Latent demand Consumers may share a

strong need that cannot be satisfied by an existing product

4 Declining demand Consumers buy less frequently or not

at all5 Irregular demand Consumer purchases vary onoccasional basis seasonal weekly monthly6 Full demand Consumers are adequately purchasingexpected levels of products7 Overfull demand More consumers want the product

butcanrsquot be satisfied8 Unwholesome demand Consumers are attracted toproducts that have undesirable social consequences

What are the tasks of Marketing management

bull Developing marketing strategies and plansbull Capturing marketing insightsbull Connecting with the consumersbull Building strong brandsbull Shaping the market offeringsbull Delivering valuebull Communicating valuebull Creating long term growth

Developing marketing strategies and plansndash Identify long and short term potentialsndash Make strategic and tactical plans

bull Capturing marketing insightsndash Closely monitor marketing environmentndash Gather information both at micro and macro levelsndash Establish marketing information system marketingresearch system marketing implementation systemmarketing control system

Connecting with the consumersndash Develop strong long term relationship withcustomersndash Where what why they buy is to be understoodndash Segment the market and identify the targets in

eachgroupBuilding strong brandsndash Develop products with strong brand namesndash Establish these brands monitor them and keepevaluating them

Understand competitionbull Shaping the market offeringsndash Product quality design shape price

maintenanceafter sales service discounts schemes credit

terms

bull Delivering valuendash Determine channels of distributionndash Make it available within easy reach of the

customers

Communicating valuendash Develop and run marketing communications toinform persuade remind consumers directly orindirectly about the brands they sellndash Develop mass programmes sales promotions directselling public relations interactive marketing andother activitiesbull Creating long term growthndash Initiate programmes to constantly monitor growthndash Product relaunches new product developmentevaluating marketing programmes should beconstantly undertaken

1048729 Value Creation- Marketers must identify the following- Customer benefits- Utilise core competencies- Manage business partners- To realign core competencies - Define the business concept- Reshape the scope of business- Position (re) the companyrsquos identity in peoplersquosminds

1048729 Value Delivery- Customer relationship constantly

understand customer needs- Internal resource management

single family of software to link all business processes

- Business partnership allows to manage complex business relationships

Who MarketsA marketer is someone who has a product service to

offer sell He seeks response from the other party a prospect

theone who receives the message and decides to act upon itMarketers stimulate demand in the marketplace for theircompanyrsquos products demand management is an

importantfunction for any marketing departmentMarketers seek to influence the level of demand time ofdemand and composition of demand

Eight states of demand are possible 1 Negative demand Consumers dislike the

product and may even pay a price to avoid it2 Non Existent demand Consumes may be

unaware or uninterested in the product3 Latent demand Consumers may share a

strong need that cannot be satisfied by an existing product

4 Declining demand Consumers buy less frequently or not

at all5 Irregular demand Consumer purchases vary onoccasional basis seasonal weekly monthly6 Full demand Consumers are adequately purchasingexpected levels of products7 Overfull demand More consumers want the product

butcanrsquot be satisfied8 Unwholesome demand Consumers are attracted toproducts that have undesirable social consequences

What are the tasks of Marketing management

bull Developing marketing strategies and plansbull Capturing marketing insightsbull Connecting with the consumersbull Building strong brandsbull Shaping the market offeringsbull Delivering valuebull Communicating valuebull Creating long term growth

Developing marketing strategies and plansndash Identify long and short term potentialsndash Make strategic and tactical plans

bull Capturing marketing insightsndash Closely monitor marketing environmentndash Gather information both at micro and macro levelsndash Establish marketing information system marketingresearch system marketing implementation systemmarketing control system

Connecting with the consumersndash Develop strong long term relationship withcustomersndash Where what why they buy is to be understoodndash Segment the market and identify the targets in

eachgroupBuilding strong brandsndash Develop products with strong brand namesndash Establish these brands monitor them and keepevaluating them

Understand competitionbull Shaping the market offeringsndash Product quality design shape price

maintenanceafter sales service discounts schemes credit

terms

bull Delivering valuendash Determine channels of distributionndash Make it available within easy reach of the

customers

Communicating valuendash Develop and run marketing communications toinform persuade remind consumers directly orindirectly about the brands they sellndash Develop mass programmes sales promotions directselling public relations interactive marketing andother activitiesbull Creating long term growthndash Initiate programmes to constantly monitor growthndash Product relaunches new product developmentevaluating marketing programmes should beconstantly undertaken

1048729 Value Delivery- Customer relationship constantly

understand customer needs- Internal resource management

single family of software to link all business processes

- Business partnership allows to manage complex business relationships

Who MarketsA marketer is someone who has a product service to

offer sell He seeks response from the other party a prospect

theone who receives the message and decides to act upon itMarketers stimulate demand in the marketplace for theircompanyrsquos products demand management is an

importantfunction for any marketing departmentMarketers seek to influence the level of demand time ofdemand and composition of demand

Eight states of demand are possible 1 Negative demand Consumers dislike the

product and may even pay a price to avoid it2 Non Existent demand Consumes may be

unaware or uninterested in the product3 Latent demand Consumers may share a

strong need that cannot be satisfied by an existing product

4 Declining demand Consumers buy less frequently or not

at all5 Irregular demand Consumer purchases vary onoccasional basis seasonal weekly monthly6 Full demand Consumers are adequately purchasingexpected levels of products7 Overfull demand More consumers want the product

butcanrsquot be satisfied8 Unwholesome demand Consumers are attracted toproducts that have undesirable social consequences

What are the tasks of Marketing management

bull Developing marketing strategies and plansbull Capturing marketing insightsbull Connecting with the consumersbull Building strong brandsbull Shaping the market offeringsbull Delivering valuebull Communicating valuebull Creating long term growth

Developing marketing strategies and plansndash Identify long and short term potentialsndash Make strategic and tactical plans

bull Capturing marketing insightsndash Closely monitor marketing environmentndash Gather information both at micro and macro levelsndash Establish marketing information system marketingresearch system marketing implementation systemmarketing control system

Connecting with the consumersndash Develop strong long term relationship withcustomersndash Where what why they buy is to be understoodndash Segment the market and identify the targets in

eachgroupBuilding strong brandsndash Develop products with strong brand namesndash Establish these brands monitor them and keepevaluating them

Understand competitionbull Shaping the market offeringsndash Product quality design shape price

maintenanceafter sales service discounts schemes credit

terms

bull Delivering valuendash Determine channels of distributionndash Make it available within easy reach of the

customers

Communicating valuendash Develop and run marketing communications toinform persuade remind consumers directly orindirectly about the brands they sellndash Develop mass programmes sales promotions directselling public relations interactive marketing andother activitiesbull Creating long term growthndash Initiate programmes to constantly monitor growthndash Product relaunches new product developmentevaluating marketing programmes should beconstantly undertaken

Who MarketsA marketer is someone who has a product service to

offer sell He seeks response from the other party a prospect

theone who receives the message and decides to act upon itMarketers stimulate demand in the marketplace for theircompanyrsquos products demand management is an

importantfunction for any marketing departmentMarketers seek to influence the level of demand time ofdemand and composition of demand

Eight states of demand are possible 1 Negative demand Consumers dislike the

product and may even pay a price to avoid it2 Non Existent demand Consumes may be

unaware or uninterested in the product3 Latent demand Consumers may share a

strong need that cannot be satisfied by an existing product

4 Declining demand Consumers buy less frequently or not

at all5 Irregular demand Consumer purchases vary onoccasional basis seasonal weekly monthly6 Full demand Consumers are adequately purchasingexpected levels of products7 Overfull demand More consumers want the product

butcanrsquot be satisfied8 Unwholesome demand Consumers are attracted toproducts that have undesirable social consequences

What are the tasks of Marketing management

bull Developing marketing strategies and plansbull Capturing marketing insightsbull Connecting with the consumersbull Building strong brandsbull Shaping the market offeringsbull Delivering valuebull Communicating valuebull Creating long term growth

Developing marketing strategies and plansndash Identify long and short term potentialsndash Make strategic and tactical plans

bull Capturing marketing insightsndash Closely monitor marketing environmentndash Gather information both at micro and macro levelsndash Establish marketing information system marketingresearch system marketing implementation systemmarketing control system

Connecting with the consumersndash Develop strong long term relationship withcustomersndash Where what why they buy is to be understoodndash Segment the market and identify the targets in

eachgroupBuilding strong brandsndash Develop products with strong brand namesndash Establish these brands monitor them and keepevaluating them

Understand competitionbull Shaping the market offeringsndash Product quality design shape price

maintenanceafter sales service discounts schemes credit

terms

bull Delivering valuendash Determine channels of distributionndash Make it available within easy reach of the

customers

Communicating valuendash Develop and run marketing communications toinform persuade remind consumers directly orindirectly about the brands they sellndash Develop mass programmes sales promotions directselling public relations interactive marketing andother activitiesbull Creating long term growthndash Initiate programmes to constantly monitor growthndash Product relaunches new product developmentevaluating marketing programmes should beconstantly undertaken

Eight states of demand are possible 1 Negative demand Consumers dislike the

product and may even pay a price to avoid it2 Non Existent demand Consumes may be

unaware or uninterested in the product3 Latent demand Consumers may share a

strong need that cannot be satisfied by an existing product

4 Declining demand Consumers buy less frequently or not

at all5 Irregular demand Consumer purchases vary onoccasional basis seasonal weekly monthly6 Full demand Consumers are adequately purchasingexpected levels of products7 Overfull demand More consumers want the product

butcanrsquot be satisfied8 Unwholesome demand Consumers are attracted toproducts that have undesirable social consequences

What are the tasks of Marketing management

bull Developing marketing strategies and plansbull Capturing marketing insightsbull Connecting with the consumersbull Building strong brandsbull Shaping the market offeringsbull Delivering valuebull Communicating valuebull Creating long term growth

Developing marketing strategies and plansndash Identify long and short term potentialsndash Make strategic and tactical plans

bull Capturing marketing insightsndash Closely monitor marketing environmentndash Gather information both at micro and macro levelsndash Establish marketing information system marketingresearch system marketing implementation systemmarketing control system

Connecting with the consumersndash Develop strong long term relationship withcustomersndash Where what why they buy is to be understoodndash Segment the market and identify the targets in

eachgroupBuilding strong brandsndash Develop products with strong brand namesndash Establish these brands monitor them and keepevaluating them

Understand competitionbull Shaping the market offeringsndash Product quality design shape price

maintenanceafter sales service discounts schemes credit

terms

bull Delivering valuendash Determine channels of distributionndash Make it available within easy reach of the

customers

Communicating valuendash Develop and run marketing communications toinform persuade remind consumers directly orindirectly about the brands they sellndash Develop mass programmes sales promotions directselling public relations interactive marketing andother activitiesbull Creating long term growthndash Initiate programmes to constantly monitor growthndash Product relaunches new product developmentevaluating marketing programmes should beconstantly undertaken

4 Declining demand Consumers buy less frequently or not

at all5 Irregular demand Consumer purchases vary onoccasional basis seasonal weekly monthly6 Full demand Consumers are adequately purchasingexpected levels of products7 Overfull demand More consumers want the product

butcanrsquot be satisfied8 Unwholesome demand Consumers are attracted toproducts that have undesirable social consequences

What are the tasks of Marketing management

bull Developing marketing strategies and plansbull Capturing marketing insightsbull Connecting with the consumersbull Building strong brandsbull Shaping the market offeringsbull Delivering valuebull Communicating valuebull Creating long term growth

Developing marketing strategies and plansndash Identify long and short term potentialsndash Make strategic and tactical plans

bull Capturing marketing insightsndash Closely monitor marketing environmentndash Gather information both at micro and macro levelsndash Establish marketing information system marketingresearch system marketing implementation systemmarketing control system

Connecting with the consumersndash Develop strong long term relationship withcustomersndash Where what why they buy is to be understoodndash Segment the market and identify the targets in

eachgroupBuilding strong brandsndash Develop products with strong brand namesndash Establish these brands monitor them and keepevaluating them

Understand competitionbull Shaping the market offeringsndash Product quality design shape price

maintenanceafter sales service discounts schemes credit

terms

bull Delivering valuendash Determine channels of distributionndash Make it available within easy reach of the

customers

Communicating valuendash Develop and run marketing communications toinform persuade remind consumers directly orindirectly about the brands they sellndash Develop mass programmes sales promotions directselling public relations interactive marketing andother activitiesbull Creating long term growthndash Initiate programmes to constantly monitor growthndash Product relaunches new product developmentevaluating marketing programmes should beconstantly undertaken

What are the tasks of Marketing management

bull Developing marketing strategies and plansbull Capturing marketing insightsbull Connecting with the consumersbull Building strong brandsbull Shaping the market offeringsbull Delivering valuebull Communicating valuebull Creating long term growth

Developing marketing strategies and plansndash Identify long and short term potentialsndash Make strategic and tactical plans

bull Capturing marketing insightsndash Closely monitor marketing environmentndash Gather information both at micro and macro levelsndash Establish marketing information system marketingresearch system marketing implementation systemmarketing control system

Connecting with the consumersndash Develop strong long term relationship withcustomersndash Where what why they buy is to be understoodndash Segment the market and identify the targets in

eachgroupBuilding strong brandsndash Develop products with strong brand namesndash Establish these brands monitor them and keepevaluating them

Understand competitionbull Shaping the market offeringsndash Product quality design shape price

maintenanceafter sales service discounts schemes credit

terms

bull Delivering valuendash Determine channels of distributionndash Make it available within easy reach of the

customers

Communicating valuendash Develop and run marketing communications toinform persuade remind consumers directly orindirectly about the brands they sellndash Develop mass programmes sales promotions directselling public relations interactive marketing andother activitiesbull Creating long term growthndash Initiate programmes to constantly monitor growthndash Product relaunches new product developmentevaluating marketing programmes should beconstantly undertaken

Developing marketing strategies and plansndash Identify long and short term potentialsndash Make strategic and tactical plans

bull Capturing marketing insightsndash Closely monitor marketing environmentndash Gather information both at micro and macro levelsndash Establish marketing information system marketingresearch system marketing implementation systemmarketing control system

Connecting with the consumersndash Develop strong long term relationship withcustomersndash Where what why they buy is to be understoodndash Segment the market and identify the targets in

eachgroupBuilding strong brandsndash Develop products with strong brand namesndash Establish these brands monitor them and keepevaluating them

Understand competitionbull Shaping the market offeringsndash Product quality design shape price

maintenanceafter sales service discounts schemes credit

terms

bull Delivering valuendash Determine channels of distributionndash Make it available within easy reach of the

customers

Communicating valuendash Develop and run marketing communications toinform persuade remind consumers directly orindirectly about the brands they sellndash Develop mass programmes sales promotions directselling public relations interactive marketing andother activitiesbull Creating long term growthndash Initiate programmes to constantly monitor growthndash Product relaunches new product developmentevaluating marketing programmes should beconstantly undertaken

Connecting with the consumersndash Develop strong long term relationship withcustomersndash Where what why they buy is to be understoodndash Segment the market and identify the targets in

eachgroupBuilding strong brandsndash Develop products with strong brand namesndash Establish these brands monitor them and keepevaluating them

Understand competitionbull Shaping the market offeringsndash Product quality design shape price

maintenanceafter sales service discounts schemes credit

terms

bull Delivering valuendash Determine channels of distributionndash Make it available within easy reach of the

customers

Communicating valuendash Develop and run marketing communications toinform persuade remind consumers directly orindirectly about the brands they sellndash Develop mass programmes sales promotions directselling public relations interactive marketing andother activitiesbull Creating long term growthndash Initiate programmes to constantly monitor growthndash Product relaunches new product developmentevaluating marketing programmes should beconstantly undertaken

Understand competitionbull Shaping the market offeringsndash Product quality design shape price

maintenanceafter sales service discounts schemes credit

terms

bull Delivering valuendash Determine channels of distributionndash Make it available within easy reach of the

customers

Communicating valuendash Develop and run marketing communications toinform persuade remind consumers directly orindirectly about the brands they sellndash Develop mass programmes sales promotions directselling public relations interactive marketing andother activitiesbull Creating long term growthndash Initiate programmes to constantly monitor growthndash Product relaunches new product developmentevaluating marketing programmes should beconstantly undertaken

Communicating valuendash Develop and run marketing communications toinform persuade remind consumers directly orindirectly about the brands they sellndash Develop mass programmes sales promotions directselling public relations interactive marketing andother activitiesbull Creating long term growthndash Initiate programmes to constantly monitor growthndash Product relaunches new product developmentevaluating marketing programmes should beconstantly undertaken