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Module 1: Introduzione al marketing

    Study Reminders

    Now, you look at how the marketing roles that is the role of marketing in a company hasstarted evolving. If you looked at first diagram Production Finance Marketing Personneloccupied equal space. So, you had a 25 percent importance even to each one of them inthe beginning. So, marketing as an equal function along with the other three functionalareas, kindly note in a company there are only four functional areas it is production,finance, marketing and personnel.What we now see as systems it is used by all these areas kindly note that also, what welook at the different things like these business process, reengineering all those types ofthings. Many times is not confined to one particular functional area it will cut acrossfunctional areas in management.So, you have this situation where you are looking at marketing as an equal function, thishas changed where you are looking at marketing as a more important function. If you see
    this, this is second diagram which tells you marketing is having a more importantfunction; it is occupying more space compare to the other three functional areas ofmanagement. It has become so because marketing or the role of marketing has beenstarted has been perceived as more important due to the marketing economy which hasstarted setting in.Now, if look at the third diagram what is happening, if you look this more or less theway in which the Indian companies are now in. You are looking at marketing as thecentral function and around marketing you are seeing the other functional areas that isthe production, finance and the personal revolving around marketing. So, marketing hasbecome major and the other functional areas are all most revolving around marketing.If you look at the next diagram what should be really looking at this is the weight, it isright now in the present if situation it is a customer who is controlling the company. So,customer is at the middle and you are looking it all the functional areas around thecustomer. So, it is a customer centric function which most of the companies are doing.So, their companies are forced look at the needs of the customer and he is controllingwhat the company should be producing and what it should be marketing. So, you havethe customer at the centre, you have the other functional areas that is the productionfinance personnel and marketing revolving around him. So, this is the way the marketingroles have evolved over the years.In the first diagram you had marketing as an equal function, the second diagram you hadmarketing as a more important function, in the third diagram you have marketing as amajor function, in the fourth diagram as it is today you are having customer as thecontrolling function and you have the other functional areas. All the functional areas ofmanagement revolving around the customer whether it is production, whether it isfinance, whether it is personnel or whether it is marketing.Now, a slide change has also got introduced, what is the change which has come. Thechange which has come is if you really look at it the change which has come to the fourright now, if customer still is the controlling function. But, you have one more circlearound the customer where it is mentioned that customer is the marketing department isclosely interacting with the customer. In other words what is marketing departmenttrying to do, the customer’s needs the marketing department is integrating. It is serving
    as an integrative function it is conveying the needs of the customer to the productiondepartment and when you have this new product developments taking place you have allthese feed backs coming from the customer.So, you have the marketing revolving around the customer and when it reveals aroundthe customer it acts as an integrative function. So, you have the customer still as thecontrolling function, but you also have the marketing revolving around him. In anotherwords you have the top management of marketing always in interaction with thecustomer. The result is customer still controls, but marketing integrates. So, you havecustomer as a controlling function marketing as the integrative function.(Refer Slide Time: 07:21)
    Now, if you look at I am giving you in this particular slide some basic marketing tasks,these basic marketing tasks are with respect to four aspects. One is with respect to thedemand state, with respect to that demand state what is the type of marketing task thatshould be done and what is a formal name given for the type of marketing. And someexamples I have given for this; suppose there is a negative demand for your product whatis the marketing task that is associated with this negative demand it is to disabusedemand.What is the formal name given for this particular marketing, it is called conversionalmarketing. Suppose you have to sell meat to a person who is a strict vegetarian it is a bigtask. Similarly, you have to tell as a dentist that the person who has come to you his teeth
    or tooth has to be removed. It is a big task as a dentist to convince your customer thatyour tooth requires to be extracted because he is not going to easily consent for that.Similarly, vaccinations you thought that if your child should be vaccinated, but the childis going to resist this vaccination with all the force that is (Refer Time: 09:14) command.So, these are the types of the negative demand states which you can easily visualize theremay be number of them. Suppose you do not have demand for a product at all, what willyou do? So, you have to create demand what is that type of marketing called, it is calledstimulation marketing this is in a lighter weighing the example which I am giving you.Suppose your father in law were to give his son in law a boat, but there is no water, whatcan this son in law do is a next question which you have to answer. How does he createdemand for the boat, this demand for the boat can be created in a creative manner only?So, this son in law can look at creating an artificial lake where this boat can be of use,ok.Similarly, you have to sell old barbed wire let us say many of our people have done it,how have they done it especially the people from Punjab when they are doing it inwestern countries many of this old products, this barbed wire products also. They areable to market these products as antics, ok. So, in other words we are not short of talent,ok.So, suppose the demand for your product is latent it is there, but it is hidden what shouldyou do. You should develop demand for the product that is called developmentalmarketing. What is this developmental marketing? An example for this could be you area smoker let us say, there is always a tagline there is always a caution line which is givenon this cigarette pack, what is that? It says smoking is injurious to your health in otherwords it is telling you do not purchase this product; if you take these cigarettes it cancause damage to your health.Now, this has to be put on every cigarette pack according to the directions of thegovernment. Now, suppose you say I have come out with a cigarette it causes damage tohealth alright, but compare to other cigarettes it causes less damage, ok. So, what is itthat you are likely to do look takes this brand a cigarette it causes damage to your health,this brand b which am giving you it causes less damage which you can try. So, many
    times when you are telling a person to give up smoking, he says suppose he where toconfront you by saying that look you also come to smoking a you all.So, try smoking will you be able to give up later I will see. Then this type of brandingcan be helpful to for such products. But not that we are trying to advocate smoking, butfor a company which is producing tobacco products this can be some of one of theexamples which you can think off. So, if you see some of the things mentioned less next;suppose your demand state is faltering. The best example is the task that is to beassociated with it is revitalizing the demand it is called remarketing, the best example forthis is church membership.So, in the present day when everyone is questioning who is their god that thing this thingand all that now similar church is also being questioned. So, what are all types of freethings; so many times you find that people are asking why should we contribute. So, in acountry like a Germany, these types of contributions are not really a promoted that is thechurch contributions. So, you are a member of the church you can; so, it does not believein that religious this thing at all.So, for the church to survive church has also got to remarketing, how it will doremarketing. It has to do its own promotional aspects. So, some churches said youbecome a member this month you do not have to pay, you do not have to pay this monthalso you do not have to pay next month also all this types of things. Suppose the demandfor your product is irregular then what is that type of task that is associate with it iscalled synchronizing demand. It is the name formal name for such marketing is calledsynchro marketing.The best example for this is your peak hour travel. So, if you want to travel in many ofthe European countries peak hour travel by train is always costlier compare to non peakhours, many times it is double or tribble. What is the objective the objective is you travelduring the peak hours only when it is a necessity, otherwise you are not going to travelduring peak hours. When it becomes a necessity that is you have going towards yourofficer things like that, then you going for your monthly pass are whatever when yougoing for your monthly pass the fair still comes back to the normal fair that type of ascenario.
    Similarly, when the demand for your product is full it was the case with HMTs’ watchesin the 90s. What do the job, the job was in the 80’s and the early 90’s, the job of thecompany was to maintain demand and it is called maintenance marketing. So, HMTSwatches was in this particular state straight from 70’s 80’s and also up to the mid 90’swithout any problem and when Titan came in it is demand started falling. Suppose youhave a scenario where you have overfull demand that is you are not able to really satisfythis demand, what should you do reduce the demand, this is called de-marketing.The best example which you can think of is the use of the San Francisco’s golden gatebridge by motorists too often; they wanted to use this golden gate bridge. There will be asmalls way which they wanted to a experience and result is the authorities started puttinga small tariff for using this golden gate bridge ok, you want a use that golden gate bridgefine, but pay so dollars use the golden gate bridge.Now, look at the rate of growth of Bangalore, it is harmful to the city itself. So, whatshould be authorities will thinking, the authorities should thinking how to curb thegrowth of Bangalore that is de-market Bangalore. So, how do you de-market Bangaloreone of the methods could be to impose a certain method of tax for on settling down inBangalore when it is not required. So, this use to be the state earlier with respect toBombay also back in the 80’s and the 90’s itself.Suppose, you wanted to move out to Bombay they use to ask you question, suppose withyou wanted to move with your what you call the luggage everything shift your residenceto Bombay. You had to produce proof to the authorities that is the police or a checkingpost that you have be transfer to Bombay. So, I am moving all these items all thesethings had to be done.Now, Bangalore is also in the same state right now, you have a burgeoning populationand a crumbling infrastructure; this infrastructure cannot really take care of this type ofburgeoning population. How do you do, how do you face this type of a situation, in otherwords you have to de-market. Suppose it is an unwholesome demand the next to state,what do you do you have to destroy demand, what is this called this is called countermarketing. An example for this is you have to do counter marketing with respect to youralcohol, drugs and cigarettes.
    (Refer Slide Time: 20:11)
    Now, if you things are coming in the present day setup. Marketing is now looking atwhat is called these social initiatives. This Social initiate initiatives is taking differentnames it is called corporate social marketing, cause marketing. Corporate socialmarketing refers to how you can be as a corporative useful to the society at large, causemarketing refers to how do you contribute towards a cause may be towards environmentor greenery things like that. Corporate philanthropy is where as a corporate you startdonating certain amounts or whatever is the possible amounts to certain causes.Similarly, corporate community involvement where as a corporate you involve thecommunity in the development of the surrounding areas with respect to your company orsome other designated areas. Similarly, social responsibly socially responsible businesspractices.So, you start practicing some of these ethics all this is coming under more or less ethicalmarketing practices, socially responsible business practices. Where you say you do notmarket a product which is not ethical like your drugs or things like you do not marketsuch types of products. So, these are things which companies should volunteer is nothese things we are not going to be a part, ok.So, instead of the government coming in and stopping alcohol things likes that. So, thecompanies also should make it a point that the customer’s health is also centric to them.So, these are some of the socially responsible business practices which they have to
    evolve. Similar, if you look at not to promote money laundering, not to promote shellcompanies all these come under this category.So, this all these under this heads we are looking at performance marketing. Thisperformance marketing has two aspects one is financial accountability and socialresponsibility marketing. Social responsibility marketing is looking at social initiativesand when you are looking at social initiative you are looking at corporate socialmarketing, you are looking at cause marketing, you are looking at corporate philanthropyand you are looking at corporate community involvement and you are looking at sociallyresponsible business practices. All these are coming under the umbrella of the socialinitiatives.(Refer Slide Time: 23:45)
    So, having looked at all this, we look at one important aspect with respect to this lecturethat is the holistic marketing. What is holistic marketing? If you look at holisticmarketing you look at in this manner that is you look at aspects which are internalmarketing, you are looking at aspects which are socially responsible marketing, you arelooking at aspects which are integrated marketing and you are looking at aspects whichare relationship marketing. What are these dimensions? When you look at internalmarketing you are looking at marketing department, senior management and otherdepartments. You are looking at marketing functions from all these angles.
    When you are looking at socially responsible marketing you are looking at ethics, youare looking at environment you are looking at legal, you are looking at the community.How the type of marketing that you are going to do is going to affect the community orgoing to benefit the community that is socially responsible marketing. Then when youlook at the integrated marketing, what are you looking at in integrated marketing, you arelooking at communications, you are looking at products and services you are looking atchannels all the three put together you are this is what we are looking at in the integratedmarketing function.Now, in this present fiercely competitive marketing network marketing environment, weare looking at this relationship marketing. What are we looking at in relationshipmarketing, we are looking at customers, we are looking at channels and we are looking atpartners.So, as I mentioned the job of the marketer does not end by selling a product to thecustomer, you have to have a relationship between with the customer even if even afterthe product is sold to him, this is what is called the relationship marketing. When it iswith respect to customers you give the name as the customer relationship management,when it is with respect to channels you give the name as channel relationshipmanagement, when it is with respect to your partners it is partner’s relationshipmanagement.So, when you look at all these four compartments put together they lead you to what iscalled the holistic marketing. The holistic marketing in other words encompasses allthese four compartments. So, this is the crux of what we are presently looking at in thepresent day marketing environment in India. We looking at holistic marketing and theseare the dimensions of holistic marketing. We stop here we will continue in the next class.Thank you.