Marketing

DABUR INDIA BRANDS

HINDUSTAN UNILEVER BRANDS

RECKITT AND BENCKISER

ORGANISATION

Marketing Department

Human Resources Department

Production Department

R& D Dept.

Finance Department

REVENUE GENERATION DEPARTMENT

Market

What is a market? It is composed of...

People and/or organizations

with needs and wants,

the ability to buy,

the willingness to buy, and the authority to buy.
We need to have all of these elements present before you have a market!

Needs
Basic human requirements

MARKETING CONCEPT Wants Demands

When specific objects that satisfy needs, NEED directed towards specific product Are wants for specific products backed by ability to pay

Food,air,water,shelter

An American needs food but wants hamburger, cold drinks

An Indian may need food but wants puri,bhaji,or roti,rice with Dal tadka Wants are shaped by ones society

Many people want Mercedes but only few are able and willing to buy one

Education, entertainment

1. Stated needs (the customer wants an inexpensive car). 2. Real needs (the customer wants a car who operating cost, not its initial price, is low). 3. Unstated needs (the customer expects good service from the dealer). 4. Delight needs (the customer would like the dealer to include an onboard navigation system). 5. Secret needs (the customer wants to be seen by friends as a savvy consumer).

Communication Market

Industry ( a collection of sellers)

Goods/Services

( a collection of buyers) YOUNG AGE 14-30 FOR PEPSI

Money

YOUNG AGE 12-35 years old for COKE

Information
Exchange and transaction process

MARKETING Definition
MARKETING : is directly responsible to generate income and contribute to the growth of the business whereas other management functions centre around cost and allocation of scarce resources. Marketing is the main pillar to achieve business goals. Marketing Management : According to Philip kotler marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering and freely exchanging products and services of value to each other. AMA : 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.

Marketing is a continuous process ascertaining consumer needs

converting them in to products /Brands or services and moving them to final consumers to satisfy their wants ,needs, desires with emphasis on profitability through optimum use of resources Value Delivery Chain

Suppliers Raw materials Manufacturer

Market intermediaries Retailers

Customer is King

Vendors/ stockiest

Modern Marketing
Transaction of ten entities: 1)Goods-television sets, plasma TVs, millions of hair dryers, toys 2)Services-Accountants ,Lawyers, engineers, doctors, management consultants 3)Experiences: water parks,caf-coffe day, climbing mount Everest 4)Events: olympics,20-20 cricket,filmfare awards 5)Persons: CEOs, Amitabh bachchan,shahrukh khan 6)Places: cities,states,regions,INCREDIBLE INDIA BY AAMIR KHAN 7)Properties: Intangible rights, real property (real estates), financial property -stocks bonds 8)Organizations: Philips-lets make things better..ICICI BANK-HUM HAIN NA.. 9)Information: encyclopedias, magazines-times of India, internet 10)Ideas: Every market offering includes basic idea say no to drugs", avoid fatty foods

Company Orientations towards Market Place Six competing concepts: 1.The production concept 2.The product concept 3.The selling concept 4.The marketing concept

5.The customer concept

6.The societal marketing concept

TRADITIONAL ORGANISATION
TOP mgt MIDDLE MGT

MODERN CUSTOMER ORIENTED ORGANISATION

CUSTOMERS
FRONT LINE PEOPLE

FRONT LINE PEOPLE MIDDLE MANAGEMENT

CUSTOMERS

TOP mgt

Fundamental of Marketing Management

To use the marketing concept, businesses should: Determine the needs of their customers (Market Research); Analyze their competitive advantages (Market Strategy);

Select specific markets to serve

(Target Marketing), and; Determine how to satisfy those needs (Market Mix).

Functions of marketing Management 1)Determine objectives- goals 2) Analysis of information- Market research ,MIS 3) Marketing strategies: plans,campaigns,programmes 4)Planning: new product, sales forecast 5) organizing: ways & means to achieve objectives 6) Directing : guidance to employees from marketing manager or VP/MD 7)Staffing : recruitment,selection,development,training,compensation Why RELIANCE,RANBAXY,PEPSI,COKE ,P&G are top companies 8) Implementation: organizing for marketing plan/strategy 9) Controlling : comparison of actual performance vs. standard objective

4 Ps of Marketing
The 4 Ps of Marketing
Product: Market research, Quality, Design, Warranties, Slogans, Name, Logos, Packaging, Features, Sizes, Options, Services, Style, Returns. Price: Based on Cost and Positioning (List price, Discounts, Allowances, Payment period, Credit terms). Place: (distribution) how you will bring your product together with your customers. Promotion: There are many promotional activities you can undertake including: Advertising, Publicity, Sponsorship, Sales promotion, Personal selling, Direct Marketing, Internet Marketing.

Market Research
In order to manage the marketing function successfully, good information about the market is necessary. Frequently, a small market research program, based on a questionnaire given to present customers and/or prospective customers, can disclose problems and areas of dissatisfaction that can be easily remedied, or new products or services that could be offered successfully.

Marketing Strategy
Marketing strategy encompasses identifying customer groups (Target Markets), which a small business can serve better than its larger competitors, and tailoring its product offerings, prices, distribution, promotional efforts and services towards that particular market segment (Managing the Market Mix). A good strategy implies that a business cannot be all things to all people and must analyze its markets and its own capabilities so as to focus on a target market it can serve best.

What is Market Segmentation?

Defined:

the process of dividing a market into meaningful, relatively similar and identifiable segments or groups. Changing a heterogeneous group (market) into smaller homogenous groups (market segments) 4 Criteria:

Substantiality Accessibility

Identifiability and Measureability Responsiveness

Market Segmentation
Why do we segment markets? To do a better job of meeting consumer needs, and to be consistent with the marketing concept. Consider Coca-Cola Co.

Before 1960: Coke

Since 1960: Coke, Diet Coke, Sprite, Cherry Coke, Caffeine-Free Coke, Citra, Minute Maid, Fruitopia, etc.

Bases of Segmentation
Geographic: grouping potential buyers according to location (ex: MNCs ) Demographic: grouping potential buyers according to age, gender, income, ethnic background, family characteristics, etc. (ex: many clothing stores, movies) Psychographic: grouping potential buyers according to personality, motives, and lifestyles

Bases of Segmentation

(continued)

Benefit segmentation: grouping potential buyers according to the benefits they seek from products. It groups according to product-related needs. (ex: Head and Shoulders) Usage-rate (type of customer) segmentation: grouping potential customers by the amount they would buy (ex: travelers, banks)

How STP Adds Value To A Firm?

Segmentation Identify segments Targeting Select segments Positioning Create competitive advantage

Marketing resources are focused to better meet customers needs and deliver more value to them Customers develop preference for brands that better meet their needs and deliver more value

Customers become brand/supplier loyal, repeat purchase, communicate favorable experiences

Brand/supplier loyalty leads to increased market share and creates a barrier to competition Fewer marketing resources needed over time to maintain share due to brand or supplier loyalty Profitability (value to the firm) increases
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Target market - a homogenous segment that your organization has chosen to pursue. Niche - one segment (usually small) of an overall market. Mass market - an entire market, unsegmented (ex: Wal-Mart) For a segmentation basis to work, it need to based on a set of attributes that are meaningful.

Objectives of Segmentation
Determine how much to charge (price discrimination): tickets, laptops, books...
price sensitivity

Design advertising images

attitudes, lifestyles, media habits(cluster analysis)

Identify targets for a direct promotion program

choice probability(choice model)

Help the design of new products: cell phones

utilities for different features/functions (conjoint analysis)
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A Note on Positioning
Positioning involves designing an offering so that the target segment members perceive it in a distinct and valued way relative to competitors. Three ways to position an offering:
1.Unique (Only product/service with USP)

2.Difference (More than twice the *feature+ vs. *competitor+)

3.Similarities (Same functionality as *competitor+; lower price)

What are you telling your targeted segments?

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4 Cs of Marketing
Customer Benefit: Dettol Soap- TOTAL PROTECTION
J W STANTON: A PRODUCT IS A COMPLEX OF TANGIBLE AND INTAGIBLE ATTRIBUTES

Customer Convenience: crocin to get relief from pain Customer Cost: substitution ,DYNAMIC & SUBJECT
TO CHANGES

Customer Communication: Personal selling,Advertising,publicity,sales promotion, public relations,internet,WORD OF MOUTH PROMOTION

P&G PRODUCTS CATEGORY

BRANDS OF AUTOMOBILES

In order to conduct a successful marketing program you must be able to answer the following questions:
1. What type of business are you in (manufacturing, merchandising or service)? 2. What is the nature of your product(s) or service(s)? 3. What market segments do you intend to serve? (Describe the age, sex, income level, and life-style characteristics of each market segment.) 4. What strategies will you use to attract and keep customers? 5. Product 6. Price 7. Place 8. Promotion 9. Persuasion (personal selling) 10. What is your unique selling proposition (USP)? 11. Who is your competition, and what will you do to control your share of the market? 12. How are you going to build and support your product?

CUSTOMER IS KING

Marketing as a philosophy
1.Customer is king 2.Revenue generation 3.Large scale employment 4.Research & innovation 5.Social process 6.Special efforts Consumer behavior 7.Alternative of choices, redistribution of income 8.Environment scanning, forecasting techniques,SWOT ANALYSIS 9.Creates TIME, PLACE,POSSESSION UTILITY 10.Mass marketing provides much needed revenues to the Government aspirin, Colin

Objectives of Marketing
1.To satisfy the customers 2.To improve quality of life of people 3.To attain higher sales 4.To create good image 5.To work out appropriate marketing mix 6.To increase business profits

OPEN HAPPINESS-COKE

YOUNGISTAN PEPSI

THANK YOU