Marketing Management for Lawyers

Module 1
 Case of Nirma Washing Power
• With the introduction of Nirma Washing Powder the complexion of
detergent market in India underwent a transformation. During the
initial days brand was not advertised. Customer franchise and sales
volume increased due to attractive value proposition. An attractive
value proposition for money supported by distribution beneficial
retailer relationship and word of mouth publicity create the demand
during the initial period of brand introduction.
• A detergent that performed the basic function of the washing clothes
as an affordable price to even low income families. Television
advertisement with memorable Jingle “ Doodh ki safedi Nirma se
aaye, rangeen kapde bhi khil khil jaaye, sabki pasand Nirma” has
the brand to be one of the powerful brand in the country and later
point of time Nirma introduced several other products under Nirma
brand.
• The success of Tata ACE is a mini truck with engine capacity of less than one
ton launched by Tata Motors in 2005 was due to deep understanding of the
market needs and customer requirements. The company realized that Indian
economy was growing there would be a demand for smaller vehicles that can
navigate through narrow roads or by lanes of cities towns villages to service the
feeder roots. It was advertised using the symbol of an event with taglines
“small is big”. It is was launched with 50% to 20% higher price tag than that of
comparable model of three Wheeler. As a vehicle operated only within a limited
radius service centers had to be closer to the windows operating route. For this
purpose the company augmented the service network by training automobile
garages that were branded as Tata-certified service points. The company rolled
out 100000. Besides Indian market Tata ACE was also launching Sri Lanka and
Nepal.
P&G Issues Voluntary Recall of Specific Old
Spice and Secret Aerosol Spray
Antiperspirant Products Due to Detection of
Benzene

[Link]
details/2021/PG-Issues-Voluntary-Recall-of-Specific-
Old-Spice-and-Secret-Aerosol-Spray-Antiperspirant-
Products-Due-to-Detection-of-Benzene/[Link]
 1890: One of the first print ads for Coca-Cola. It
included the slogan "refreshing and
invigorating," something that is still
synonymous with the brand. It also mentions
the original price for a glass: 5 cents, a price
that did not change until 1959.

Amazon: Obsessed with creating customer value

engagement and relationship
[Link]
 Definition of Marketing
American Marketing
Association Definition

Marketing is the process of planning and executing the

conception, pricing, promotion and distribution of ideas,
goods and services to create exchanges that satisfy individual
and organizational goals.

Philip Kotler
Definition

Marketing Management is the Art and Science of choosing

target markets and getting, keeping and growing customers
through creating, delivering and communicating superior
customer value.
What is marketed

• Goods
• Services
• Events
• Experiences
• Properties
• Places
• Persons
• Organisations
• Information
• Ideas
 Needs, Wants and Demand
• Needs (States of felt deprivation):These are basic human
requirements. These include physical needs for food, clothing,
shelter, warmth, and safety, as well as knowledge and self-
expression. Marketers cannot generate these needs because they
are a fundamental component of human existence.
• Wants(Shaped by culture and individual personality): are needs
directed to specific objects/services that might satisfy the need.
Wants are nothing but an evolved form of needs; however.
they are shaped by society or culture.
• Demand (Backed by buying power): is the “wants” for specific
products backed by an ability to pay for it. Demand is an index
of people’s strong purchasing power. When an enterprise
addresses the demands of its clients, it brings them happiness
which is more than just satisfaction.
 Types of Need

• Physiological Needs (Innate, biogenic and primary)

• Psychosocial Needs social environment and interactions with others it’s
include needs for prestige, self-esteem, affection, power and achievement
• Stated Needs (the customer wants an expensive car)
• Real Needs(the customer wants a car whose operating cost not its initial price
is low)
• Unstated Needs(the customer expect good service from the dealer)
• Delight Needs(the customer would like the dealer to include an onboard
navigation system)
• Secret Needs(the customer wants friends to see him as a savvy customer)
Types of Demand
Key Customers Market
 Pre-Industrial Revolution

• Small scale industries have a command over the economy.

• Manufacturing received most attention because it was a major problem.
• Selling goods to nearby customers was done without problem.
• Demand was more than supply.
 Production Concept

• After the Industrial Revolution which started in UK and America during 1760.
• 1760-1930
• Mass Production started.
• Large scale manufacturer started commanding the market.
• Functional departments (e.g-manufacturing, finance, sales) were established because
due to large quantities of goods selling to nearby market was not sufficient.
• Involvement of wholesalers, relailers concept started for the customers staying far
away from the manufacturing unit.
• No concept of quality.
 Product Concept
• Great Depression-1930; Demand decline
• Competition Started;Existed until mid 1940’s;
• Consumers will favor those products that offer the superior quality, or
innovative features; Focus: making superior products and improving them
over time.
• This is called technology push model the main problem with this orientation
was the managers were launching innovative products without
understanding and analyzing the need of the customers that is the reason
innovative products are launched without educating the customers about the
innovation and profitable benefits that the consumers hope to get it from.
• The golden eye technology was first introduced in Indian market by the
television major Videocon but the market was unable to perceive the benefits
of the technology after certain time at an advanced stage of the market LG
reintroduced the technology and make its unique selling proposition for
marketing success
Marketing Myopia

• Coined by Harvard Professor Theodore

Levitt, a German-born American
economist and a professor at the Harvard
Business School,in 1960.
 Selling Concept

• The organization must, therefore, undertake an aggressive selling and

promotion effort.
• This concept assumes that consumers typically show buying inertia or
resistance and must be coaxed into buying. It also assumes that the company
has a whole battery of effective selling and promotional tools to stimulate
more buying.
• Most firms practice the selling concept when they have overcapacity.
• Sales department used to handle the activities like advertising sales
promotion.
• Their aim is to sell what they make rather than make what the market wants.
 Marketing Concept

• The marketing concept rests on four pillars: target market, customer needs,
integrated marketing and profitability.
• Started from 1950.
• Concept of Video on Wheels (VOW) used by Colgate. VOW ran with a screen
mounted on the roofs of the vehicle. There they show entertainment features
with commercials with 30 minute infomercials and distribute free toothbrush
and toothpaste samples to rural residents during 1990s.
• To generate demand of microwave Godrej launched a nationwide educational
campaign. It gave free product demonstrations and cooking demonstrations
to let the customers learn first hand about microwave ovens. Each microwave
oven came with free microwave safe cookware as well as Indian cookbook
which include recipes from famous local 5 star chefs. Godrej also advertise its
product in Indian lifestyle magazines.
 Holistic Marketing Concept
• Holistic marketing concept is based on the development design and
implementation of marketing program processes and activities that
recognizes their breath and interdependencies.
The Societal Marketing Concept

• This concept holds that the organization’s task is to determine the needs,
wants, and interests of target markets and to deliver the desired satisfactions
more effectively and efficiently than competitors (this is the original
Marketing Concept).
• Additionally, it holds that this all must be done in a way that preserves or
enhances the consumer’s and the society’s well-being.
Product-Oriented versus Market-
Oriented Definitions of a Business
Traditional Organization versus Modern Customer-
Oriented Company
Organization
 Value Proposition and Customer Value
• Value proposition is a set of benefits that the company offers to the customers to
satisfy their needs.
• Customer delivered/perceived value is the difference between total customer benefit
and total customer cost.
• Total customer benefit/value is the bundle of benefits customers expect from a given
product or service . Total customer benefit is the perceived monetary value of the
bundle of economic, functional, and psychological benefits customers expect from a
given market offering because of the product, service, people, and image. Total
customer cost is the perceived bundle of costs customers expect to incur in evaluating,
obtaining, using, and disposing of the given market offering, including monetary,
time, energy, and psychological costs.
• Total customer cost is the bundle of costs customers expect to incur in evaluating,
obtaining, using and disposing of the product or service.
• Total Customer Cost>Total Customer Benefit: Dissatisfied
• Total Customer Cost<Total Customer Benefit: Delight
• Total Customer Cost=Total Customer Benefit: Satisfaction
• Customer-perceived value (CPV) is the difference between the prospective customer’s
evaluation of all the benefits and costs of an offering and the perceived alternatives.
Component of Customer Value
Customer Value-P&G Pringles Example
Customer Perceived Value

• Total Customer Cost>Total Customer Benefit:

Dissatisfied
• Total Customer Cost<Total Customer Benefit:
Delight
• Total Customer Cost=Total Customer Benefit:
Satisfaction
 Satisfaction

• Satisfaction is a person’s feelings of pleasure or disappointment resulting from

comparing a product’s perceived performance (or outcome) in relation to his/her
expectations.
• Therefore, satisfaction is a function of perceived performance and expectations.
 Value Proposition and Customer Value

• Value proposition is a set of benefits that the company offers to the customers
to satisfy their needs.
• Customer delivered/perceived value is the difference between total customer
benefit and total customer cost.
• Total customer benefit/value is the bundle of benefits customers expect 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.
• Functional Benefit and Psychological Benefit
Marketing Mix

The 4 Ps were first formally

conceptualized in 1960 by E. Jerome
McCarthy, American marketing
professor and author.

The 4C marketing model was first

proposed by Bob Lauterborn
Marketing Mix

The 4 A marketing model was

developed by Professor Jagdish
Sheth, marketing professor at Emory
University, and Dr Rajendra Sisodia,
a marketing professor at Bentley
University.
Difference between selling and marketing
Strategic Marketing and Marketing Management
THANK
YOU