BASICS of Marketing

Define Marketing
American Marketing Association: Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. Marketing makes the journey of a product from its birthplace of factory to the hands of the consumer It is a fascinating field involving decisions like knowing the needs of the consumer, how to communicate the benefits to the target audience and reaching the product in the hands of the consumer and then ensuring that the consumer comes back for more B2B, B2C

Marketing vs Sales
Selling is the act of persuading or influencing a customer to buy (actually exchange something of value for) a product or service The selling concept, instead of focusing on meeting consumer demand, tries to make consumer demand match the products it has produced

Sales takes the awareness marketing has created and sells to the people who now know not only about the product, but now want it

SELLING V/S MARKETING

SELLING STARTING POINT PRODUCT MARKETING CUSTOMER NEEDS

MEANS

AGGRESSIVE SELLING & PROMOTION

SUPERFLUOUS SELLING

ENDS

PROFITS THROUGH SALES VOLUME

PROFITABILITY THROUGH CUSTOMER SATISFACTION

What can be sold

Services Events Experiences Persons Places Properties Organizations Information Ideas

What is a SBU
SBU Strategic Business Unit An SBU has three characteristics: (1) It is a single business or collection of related businesses that can be planned separately from the rest of the company; (2) it has its own set of competitors; and (3) it has a manager responsible for strategic planning and profit performance who controls most of the factors affecting profit

4 Ps

4 Ps & 4 Cs
4 Ps
Product Place Price Promotion

4 Cs
Customer Solution Convenience Customer Cost Communication

7 Ps
Product
Applicable on to service marketing
People: directly or indirectly involved in the consumption of a service Process: Procedure, mechanisms and flow of activities by which services are consumed Physical Evidence: The ability and environment in which the service is delivered.

Place
Price Promotion People

Process
Physical Evidence

Selecting the Media

One Way

Two Way

Low

Customization

HIgh

 Single source of all these communication to bring consistency in the communication.

Integrated Marketing Communication

Television Advertisement good for awareness but not as powerful as Sales Promotion to generate Action. Cost per Thousand (CPM) Pass Along Readership

 Web as a medium cannot be ignored.

Hyper Impulsivity: Due to closer conjunction of Desire, Transaction and Payment. Event Marketing/Sponsorships Cause Marketing

Unconventional Media
Packaging Customer service

POP Novel Media

Events, Trade shows

Advertising specialties

Sponsorships

 6 Ms for Communication Planning:

Market Mission Message Media Money Measurement

STP
Segmentation
A market segment consists of a large identifiable group within a market, with similar wants, purchasing power, geographical location, buying attitudes, or buying habits Geographic, Demographic, Psychographic, Behavioral Niche Marketing: A niche is a more narrowly dened group, typically a small market whose needs are not being well served.

Target Market
Marketers evaluate each segment to determine how many and which ones to target and enter

Positioning
Positioning is the act of designing the companys offering and image to occupy a distinctive place in the target markets mind

The STDP Process

Identify markets with unfulfilled needs Discover segments on the basis of consumer characteristics Analyse segment potential & finalise segments to target

Create a distinctive positioning in the minds of consumers

Differentiate product offering from competitors

Segmentation
Mass marketing Segment marketing

Product Life Cycle

BCG Matrix

?: A question mark requires a lot of cash; company is spending money on plant, equipment, and personnel. Co has to think hard about whether to keep pouring money into this business. Stars: Market leaders in a high-growth market. It does not necessarily produce positive cash ow; the company must still spend to keep up with the high market growth and ght off competition. Cash cow: produces a lot of cash for the company (due to economies of scale and higher prot margins), paying the companys bills and supporting its other businesses Dogs: generate low prots or even losses

GE Investment Priority System

Business Unit Position
Low HOLD
Medium

High High Low

Medium

BUILD

BUILD

Harvest

HOLD

BUILD

Harvest

Harvest

HOLD

Industry Attractiveness

Porters Five Forces Model of Competition

Threat of Threat of New New Entrants Entrants

Bargaining Power of Suppliers

Rivalry Among Competing Firms in Industry

Bargaining Power of Buyers

Threat of Substitute Products

Product Mix
The product mix of an individual company can be described in terms of width, length, depth, and consistency. Width: how many different categories (tbr, tp, personal care) Length (Line): total number of products Depth: how many variants of each product are offered(dry, oily, normal / size / colours ) Consistency: how closely related the various product lines are in end use, production requirements, distribution channels, or some other way.

Product Mix
Same Brand Name New Brand Name

Same Product Category

Line Extension

Multi Branding

New Product Category

Brand Extension

New Brand Development

Ansoffs Model

Branding
Brand: name, term, sign, symbol, or design, or a combination of these, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors Brand Equity: Brand equity refers to the marketing effects or outcomes that accrue to a product with its brand name compared with those that would accrue if the same product did not have the brand name The brand can add significant value when it is well recognized and has positive associations in the mind of the consumer. This concept is referred to as brand equity

Brand Strategy
Line extensions: existing brand name extended to new sizes or avours in the existing product category Brand extensions: brand names extended to new product categories Multibrands/Flanker Brands: new brand names introduced in the same product category New brands: new brand name for a new category product Co-brands: brands bearing two or more well-known brand names

Distribution

Channel Partners/Intermediaries
Merchants: wholesalers and retailersbuy, take title to, and resell the merchandise. Agents: brokers, manufacturers representatives and sales agentssearch for customers and may negotiate on the producers behalf but do not take title to the goods Facilitators: transportation companies, independent warehouses, banks, and advertising agenciesassist in the distribution process but neither take title to goods nor negotiate purchases or sales

Push vs Pull
A pull selling strategy is one that requires high spending on advertising and consumer promotion to build up consumer demand for a product A push promotional strategy makes use of a company's sales force and trade promotion activities to create consumer demand for a product In Push strategy the products has to be promoted by Producer to Wholesalers to Retailers to Consumer

Experiential/Buzz/Viral
Experiential Marketing is the art of creating an experience where the result is an emotional connection to a person, brand, product or idea Viral Marketing use pre-existing social networks to produce increases in brand awareness or to achieve other marketing objectives (such as product sales) through self-replicating viral processes, analogous to the spread of pathological and computer viruses. Viral promotions may take the form of video clips, interactive Flash games, advergames, ebooks, brandable software, images, or even text messages.

Buzz Marketing is a viral marketing technique that attempts to make each encounter with a consumer appear to be a unique, spontaneous personal exchange of information

Misc
Mind vs Shelf ATL
Above the line is a type of advertising through media such as TV, cinema, radio, print, banners and search engines to promote brands. This type of communication is conventional in nature and is considered impersonal to customers

BTL
Below the Line uses less conventional methods than the usual specific channels of advertising to promote products, services, etc. Price promotion, Coupons, Gift with purchases, also gifts certificates, Competitions and prizes, Money refunds, Frequent user/loyalty incentives, Point-of-sale displays, Events

Horizontal vs Vertical Marketing

To Read
Advertising / PR Market Research Direct Marketing Sales Promotions Rural Marketing CRM

Q&A
There's more than one answer to these questions