MARKETING

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MARKETING
by Dr. Onkar Nath Faculty Sir SPBT College, MUMBAI
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• MARKETING CONCEPT
• A situation where buyers and sellers of a
  commodity interact.
• Coming together of buyers and sellers of the same
  or similar commodities
• TYPES OF MARKET
• Geographical Area
• Product
• Nature of Transaction
• Volume of Transaction

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• MARKETING
• Marketing is the process of determining consumer
  demand for a product or service, motivating its
  sale and distributing it into ultimate
  consumption at a profit
• A management function
• A Business Philosophy

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• EVOLUTION OF MODERN MARKETING
• Industrial revolution
• Digital revolution
• Barter System
• Customer and market driven
• Wants of customers
• CRM
• Customer Satisfaction
• Nothing is worthwhile unless it touches the
  customer

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• MARKETING VS SELLING
• MARKETING MANAGEMENT
• A process of planning and executing the
  conception, pricing , promotion and distribution
  of goods and services and ides to create
  exchanges with target groups that satisfy
  customer and organizational objectives.
• FUNCTIONS OF MARKETING MANAGEMENT
• Analysis
• Planning
• Implementation
• Control

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• IMPORTANCE OF MARKETING FOR INDIAN BANKS
• "The relevance of aggressive marketing in banks
  has come to the fore as never before" - M N
  Goiporia.
• CHARACTERISTICS OF SERVICES
• Intangibility
• Inseparability
• Heterogeneity
• Perishability

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SERVICE A service is any act or performance that
one party can offer to another that is
essentially intangible and does not result in the
ownership of anything. Its production may or
may not be tied to physical product.
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S.No. Physical Goods Services
1. Tangible Intangible
2. Homogeneous Heterogeneous
3. Product and distribution separated from consumption Production, distribution and consumption re simultaneous process
4. A thing A activity
5. Core value produced in factory Core value produced in buyer-seller interaction
6. Customers do not participate in the production process Customers participate in production
7. Can be kept in stock Cannot be kept in stock
8. Transfer of ownership No transfer of ownership
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MAREKTING OF FINANCIAL SERVICES Intangibility,
inseparability and heterogeneity are manifested
at both strategic and tactible levels in services
marketing. Marketing strategy provides the
organisation with a sustainable competitive
advantage in the markets it operates. Organization
should understand consumer needs and identifies
how those consumers should be grouped into
different market segments. Product attributes,
pricing decisions, methods of distribution and
communication should all seek to reflect the
chosen position.
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• BANK MARKETING
• Provides services
• Aimed to satisfy customers needs and wants
• Needs and wants may be non financial in
  nature
• Competitive element, efficiency and
  effectiveness
• Organizational objectives are still the
  driving force
• Commercial objective to make profit
• Social Objectives

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• Essentials for a Banks Success
• Cannot exist without customer
• Create, win and keep customers
• Organizational design should be oriented to the
  customer
• Deliver total satisfaction to the customer
• Customer satisfaction is affected by the
  performance of all the personnel of the bank.

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• MARKETING MIX
• Key concept in the modern marketing
• Considered to be core of marketing
• It is the set of tools that the firm uses to
  pursue its marketing objectives in the target
  market
• Decisions must be made for both the
  distribution channels and the final consumers

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Marketing Lessons
OLD
New
Product
Consumer
Price
Cost
Convenience
Place
Promotion
Communication
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Wining companies are those that can meet customer
needs economically and conveniently and with
effective communication Services Marketing Mix
7Ps Product, Price, Place, Promotion, People,
Physical evidence, Process
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PRODUCT A product is anything that can be offered
to a market for attention, acquisition, use or
consumption that might satisfy a want or
need PRODUCT PERSONALITY
THE CORE
THE ASSOCIATED FEATURES
THE BRAND NAME LOGO
THE PACKAGE AND LABEL
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• PRODUCT LEVELS
• Core benefit, basic product, expected product,
  Augmented product and Potential product.
• PRODUCT CATEGORY
• Durability, tangibility and use
• Product item, Product Line, Product mix
• Banking product

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PRODUCT PLANNING The process of product planning
consists of determining the strategies in respect
of various elements. Product Line, Product Mix,
Branding, Packaging and New product
development. PRODUCT LIFE CYCLE Introduction,
Growth, Maturity, Decline The product Life cycle
operates at three levels product level, product
sub category, brand level.
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• WEAKNESS OF PLC CONCEPT
• Undefined concept
• No uniform shape
• Unpredictable turning points
• Unclear implications
• PRODUCT STRATEGIES
• Strategies based on Product Mix
• Strategies based on Product Life Cycle

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• PRODUCT MODIFICATION
• Quality Improvement
• Feature Improvement
• Style Improvement
• PRODUCT ELIMINATION
• GROWTH STRATEGIES
• Intensive
• Integrated
• Diversification

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• NEW PRODUCT DEVELOPMENT
• Idea Screening
• Concept Testing
• Product Development
• Test Marketing
• Commercial Launch
• DIVERSIFICATION
• Concentric Diversification technologically
  related but the target customers are entirely
  different
• Horizontal Diversification - technologically
  unrelated but the target customers are same
• Conglomerate Diversification no relationship
  with the existing product

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• BRANDING
• Line Extension
• Brand Extension
• Multi brands
• New Brands
• PACKAGING
• Primary Package
• Secondary Package
• Shipping Package
• LABELLING
• Identify the product or brand
• Describing information
• Promoting the product through 'attractive
  graphics'

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• PRICING
• Price is the sum value of all the values that
  consumers exchange for the benefits or having or
  using the product or service
• Different forms - Goods bought, hire charges,
  tution fees
• Dynamic Pricing - Varying prices
• Flexibility

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• OBJECTIVE OF PRICING
• Profit
• Survival
• Market Share
• Cash Flow
• Status Quo
• Product Quality
• Communicating Image
• Short term/Long term
• FACTORS INFLUENCING PRICING
• The Customer's Demand Schedule
• The Cost Function and
• Competitors Prices

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• PRICING METHODS
• Mark up Pricing
• Variable costs and contribution for fixed costs
• Absorption cost Pricing
• margin for profit
• Target Return Pricing
• Return on the investment
• Marginal cost Pricing
• Direct variable costs are fully realized
• Only a portion of fixed costs may realized
• Perceived Value Pricing
• Buyers perception of value
• Value Pricing
• Product with high value at a fairly low price
• Going Rate Pricing
• Based on competitors prices

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• PRICING METHODS (Contd..)
• Auction Type Pricing
• English Auctions
• One seller many buyer
• Dutch Auctions
• Sealed Bid Auctions
• Group Pricing.

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• Pricing Strategies
• Geographical pricing
• Price discount and allowances
• Psychological pricing
• Promotional pricing
• Loss-leader pricing
• Loss is covered by sale of other items
• Special event pricing
• Cash rebates
• Low-interest financing
• Longer payment terms
• Warranties and service contracts
• Psychological discounting

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• Pricing Strategies (Contd.)
• Discriminating pricing
• First degree
• different prices to each customer depending
  upon their intensity of demand
• Second degree
• Lower prices for buyers of a larger volume
• Third degree
• Customer groups student, senior citizen
• Product form
• Image pricing
• Channel
• Location
• Time

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• Pricing Strategies (Contd.)
• Product-mix pricing
• Product line pricing developing product line
• Captive-product pricing main product at lower
  price, ancillary product at higher price
• Two-part pricing split into fixed and variable
  component
• By-product pricing by-products obtained in
  production of other products
• Product-bundling pricing
• Market skimming pricing
• Market-penetration pricing

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Distribution Distribution channel Marketing
channels are sets of independent organizations
involved in the process of making a product or
service available for use of consumption.
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• Functions of distribution channels
• Market information
• Promotion
• Contact
• Matching
• Negotiation
• Product information
• Physical distribution
• Financing

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• Channels types
• Channel 1, Channel 2, Channel 3, Channel 4,
• Factor influencing channel section
• Product characteristics
• Perishable products
• Consumer durables
• Industrial products
• Market characteristics
• Customer characteristics
• Company resources
• Competition
• Product lines

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• Channels for banking products
• Intangibility
• Inseparability
• Variability
• Perishability
• Client relationship
• Branches
• Other channels
• Tele-banking
• ATMs
• Computerization
• Plastic Cards
• Virtual branches and automated video banking

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• Intermediaries in banking services
• DSA
• Automobile Dealers
• Merchant establishments
• Physical distribution
• Transportation
• Warehousing
• Inventory
• Tasks of physical distribution
• Forecasting
• Order processing
• Inventory management
• Storage
• Protective packaging
• Transportation

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• Promotion
• Role of promotion
• Persuasion
• Inform
• Reminding
• Reinforcing

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Promotion mix
Blended Mix of Promotion Tools
Personal selling
Advertising
Public Relations
Sales Promotion
Direct Marketing
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• Promotion mix strategies
• Push strategy -Retailer
• Pull strategy - Customer
• Factors influencing promotion mix
• Types of product/market
• Buyers readiness stage
• PLC stage
• Promotion mix integration

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• Marketing Information System (MIS)
• Features of MIS
• Master Plan
• Coordination
• Future Orientation
• Computerized Environment
• Analyse Quantitative Information
• Regular flow of Information

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• Functions of MIS
• Collecting and assembling data
• Processing of data
• Analysis of data
• Storage of data
• Discrimination of information

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• Need of MIS
• Complex marketing activity
• Knowledge /information explosion
• Communication gap
• Prompt decision
• Non-price competition

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• Kinds of information needed
• Information about market forces
• Information about the banks market behaviour
• Internal information
• Components of MIS
• Internal marketing information
• Marketing intelligence system
• Marketing research system
• Advantages of MIS

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Q
? ueries
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