Marketing Management
Marketing (management) is
the process of planning and executing the conception, pricing, promotion and
distribution of goods, service, and ideas to create exchanges with target
groups that satisfy customer and organisational objectives.
Functions of Marketing Management
Analysis
Planning
Implementation
Control
Characteristics of Services
1. Intangibility
2. Inseparability
3. Heterogeneity
4. Perishability
Physical Goods
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Services
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1
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Tangible
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Intangible
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2
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Homogeneous
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Heterogeneous
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3
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Production and
Distribution are
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Production,
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Distribution
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and
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separated from
consumption
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Consumption are
simultaneous process
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4
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A thing
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An activity or process
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5
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Core value produced in
factory
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Core value
produced in buyer-seller
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interactions
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6
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Customers do not
participate
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Customers participate in
the production
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7
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Can be kept in stock
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Cannot be kept in stock
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8
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Transfer of ownership
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No Transfer of Ownership
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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 and Logo
The Package and Label
Product Levels
Product Categories
Product Item, Product Line and Product Mix
The Banking Product
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
New Product Development
The Process of product Development comprises
five main stages:
Idea Screening
Concept Testing
Product Development
Test Marketing
Commercial Launch
Diversification
Diversification refers to
entering attractive opportunities which are outside the existing businesses of
the firm. Three types of diversification
Concentric Diversification
Horizontal Diversification
Conglomerate Diversification
Other Aspects of Product Development
·
Branding
·
Packaging
1. Primary Package
2. Secondary Package
3. Shipping Package
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Labelling
Cost Based Pricing
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Value Based Pricing
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Competition Based Pricing
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Mark up Pricing
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·
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Perceived
value
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· Going – Rate Pricing
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·
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Absorption
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Cost
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·
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pricing
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·
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Auction- Type Pricing
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·
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Pricing
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Value Pricing
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English Auctions
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Target-return Pricing
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Dutch Auctions
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·
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Marginal
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Cost
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·
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Sealed – bid Auctions
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Pricing
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Group Pricing
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Pricing Strategies
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Geographical Pricing: different locations, different prices, cost of
transportation included.
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Price Discounts and Allowance : Cash Discount, Quantity Discount,
Functional Discount, Seasonal Discount
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Psychological Pricing: To many consumers think that higher priced
product to be of better quality. By setting the price in particular range
sellers can create an impression about the product belongs to the particular
class
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Promotional Pricing :
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Discriminatory
Pricing: when different prices are changed to different buyers.
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Product-Mix Pricing :
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Market-skimming Pricing: Product is initially priced higher, and over a
period of time it is reduced to attract more buyers, with a view to ‘skimming’
the revenues layer to layer from the market.
·
Market-penetration Pricing: Setting the price low initially in order to
penetrate the market quickly and deeply attracting a large market share.
Functions of Distribution Channel
Market Information
Promotion
Contact
Matching
Negotiation
Product Information
Physical Distribution
Financing
Risk Taking
Channel Types
Following factors influenced producers to select
the channels for distribution. Product Characteristics
Market Characteristics
Customer Characteristics
Company Resources
Competition
Product Lines
Channels for Banking Services
The following factors affects the channel
decision
Intangibility
Inseparability
Variability
Perishability
Client Relationship
Channels
1. Branches are the primary distribution outlets for banking services. These are fixed in location and customer is
required to visit the branches.
2. Other Channels
Tele-banking and Call Centres
ATMS
Personal Computer
Plastic Cards
Virtual Branches
3. Intermediaries in Banking Services Direct Sales
Agents Automobile Dealers
Merchant Establishments
Physical Distribution
Role of Promotion in MARKETING
Promotion is the exercise of communicating the
properties of different elements of marketing mix to the customers with the
motto of influencing them. This involves the following aims:
a) Persuasion
b) Inform
c) Reminding
d) Reinforcing
Promotion Mix
The promotion mix comprises the following tools:
Advertising
Sales Promotion
Public Relations
Personal Selling
Direct Marketing
Promotion-mix Strategies
There are two basic promotion-mix strategies
Push Strategy – promotion
efforts are directed at the channel members to induce them to purchase the
products and sell them to the final customer.
Pull Strategy - promotion efforts are directed to the final consumer to induce them to
buy the product
Factors influencing the Promotion Mix
Three major factors affecting the choice of
promotion mix are
Type of Product / Market
Buyers’ Readiness Stage
Product Life Cycle Stage
Need of MIS
a) Complex marketing activity
b) Knowledge / information explosion
c) Communication Gap
d) Prompt Decisions
e) Non-Price Competition
Kind of Information needed
Information about market forces
Information about the
bank’s market behaviour Internal Information
Components of MIS
MIS consists of four subsystems, which
facilities the entire MIS system.
a) Internal Record System
b) Market Intelligence System
c) Marketing Research System
d) Marketing Management and
Science System
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