Marketing

Presented by
Abhay Tangade

Marketing Overview
Need & want Marketing

Marketing Concepts Marketing Mix

STP Product life cycle Marketing Environment
Steps of Marketing : Market Research, Product designing, Promotion, Distribution, Selling

Management Information System (MIS) Strategy : Porters generic strategy, BCG Matrix for Growth

Need & want

Need : Needs are the basic human requirements. People need food, air, water, clothing, and shelter to survive. People also have strong needs for creation, education, and entertainment.

Wants
The needs become wants when they are directed to specific objects that might satisfy the need.

An American needs food but may want a hamburger, French fries, and a soft drink. A person in Mauritius needs food but may want a mango, rice, lentils, and beans. Wants are shaped by one's society.

Need : Drinking Wants : water, soda, Bear, Rum, Cold Drink

Needs
Stated needs (the customer wants an inexpensive car).

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

Marketing
Process of identifying & Satisfying customer needs in exchange of values in benefit of customers is called marketing.

Marketing Decisions
Push Marketing Pull Marketing

15-8

Marketing Concepts
Production Concept
To increase production was target

Product Concept
Selling Concept Marketing Concept

To make best product

Sell...!! Sell.....!!!!

Make product as per customer needs & then sell the products.

Marketing Mix

Segmentation

STP

Targeting
Positioning

Segmenting Consumer Markets

Geographic
Demographic Psychographic Behavioral

8-12

Targeting
A target market is a group of customers that the business has decided to aim its marketing efforts and ultimately its merchandise.

Positioning
positioning has come to mean the process by which marketers try to create an image or identity in the minds of their target market for its product, brand, or organization.

Positioning
Act of designing the companys offering and image to occupy a distinctive place in the mind of the target market.

11-15

Segmentation
Criteria based on customer based characteristics or on product attributes S-1

S-3 S-2

Targeting
Choice criteria?
Focus on segment(s) which provide most value

S-1

S-3 S-2

Positioning
Low Price

B
Consistent quality Not accessible

premiu m convenient

C A
accessible

Brand conscious

Environmental Forces
Demographic

Economic
Socio-Cultural Natural Technological Political-Legal

3-19

Marketing Enviornment

SLEPT

PEST

Product Life Cycle (PLC)

It is the succession of strategies used by business management as a product goes through its life cycle.

PLC (Product Life Cycle)

Chain of Marketing Activities

Market Research

Product Dev & Packaging

Promotions Distribution Selling Market Feedback Product Development

Marketing Management in Company

HeadMarketing

ManagerPromotion

Manager Market Research

Manager Sales

Manager Market Logistics

Manager Customer Service

Market Research
A systematic, formal and objective search for information to assist in marketing decision making. MR help in Consumer behaviour Consumer attitude Consumer need & want etc

Market Research

Type Of Research
Qualitative Research
Open ended, dynamic, flexible Depth of understanding Taps consumer creativity Database - broader, deeper Penetrates rationalized or superficial responses Richer source of ideas for marketing and creative teams

Quantitative Research
Statistical and numerical measurement Sub group sampling or comparisons Survey can be repeated in the future and results compared Taps individual responses Less dependent on RE skills or orientation

27

Promotion
It is the communication link between sellers and buyers for the purpose of influencing, informing, or persuading a potential buyer's for purchasing decision.

Personal selling,

Advertising, Sales promotion, Direct marketing

Publicity

Brand

A name, term, sign, symbol or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors.

10-29

Product logic(marketing mix) to brand logic (meaning and value)

Brand
Brand Relationship = Brand Image + Brand Attitude

Brand Symbol = Brand character+ Brand Logo

Brand Association = Link up in Brand Looks = memory with Brand Symbol brands + Brand Name attributes, benefits and looks

Brand Image = Brand Associations + Brand Personality

Product

Branding Brand Brand name Brand logo Brand Characters Brand Symbol Tagline Brand association Brand Personality Brand Image Brand attitude Brand relationship Positioning Target segment

Endowing products & Services with power of brand. Brand, a name, logo, slogan, and/or design scheme associated with a product or service. Bank of Baroda

Rising sun of Baroda to create sense of Pride in people Indias International Bank

Advertisement themes CMD M D Mallya

Advertisement
Advertising is a form of communication intended to persuade an audience (viewers, readers or listeners) to purchase or take some action upon products, ideas, or services.

Sales
Sales is the action arm of marketing which is interface between Outside world, organization, Customers, Channel Partners

Strategies of selling
Mass Selling
Print advertisement Television marketing etc

Personal Selling
Telemarketing Cold Calling etc

Direct selling

Selling process
Prospecting : Referrals, Qualifying Preapproach Approach Sales Presentation : Questions, Selling the sizzle Handling objections Closing : Pre-closing questions, Tie downs Follow up

Distribution
The steps taken to move and store a product from the supplier stage to the customer stage in a supply chain. Parts of Distribution : Channel Management & Logistics

Buying Behaviour :Consumer DecisionNitin realizes that Making Process he is fed up with
Motivation, attitude, opinion leaders, perception, personality, Communication, Cultural, Social, Individual and Psychological Factors affect all steps Need Recognition Information Search Evaluation of Alternatives Purchase Postpurchase Behavior
his puny b/w TV He talks to a few of his friends about a new TV He goes shopping to compare TVs of different brands He chooses one model/brand for its features and price He takes the TV home and becomes a couch potato

Value Proposition
The whole cluster of benefits the company promises to deliver
Scorpio, Mahindra & Mahindra Luxury of a Car and thrill of an SUV Dominos A good hot pizza, delivered to your door within 30 minutes of ordering, at a moderate price

Competitor strategies
Market leader : Defense Strategy Market Challenger : attacking startegy Market Follower
Flank, Preemptive, Counteroffensive, Mobile Contraction Frontal attack, Flank attack, Encirclement attack, Bypass attack Guerrilla warfare

Counterfeiter, Cloner, Imitator Adaptor

Nicher

Five Product Levels

Core benefit
Basic product Expected product Augmented product Potential product

12-45

Porters Generic Strategies

Overall cost leadership
Differentiation Focus

2-47

Internal Records
Order-to-Payment Cycle
Sales Information System Databases, Warehousing, Data mining Marketing Intelligence System

3-48

Loyalty
A deeply held commitment to re-buy or re-patronize a preferred product or service in the future despite situational influences and marketing efforts having the potential to cause switching behavior.

5-49

Total Quality Management

TQM is an organization-wide approach to continuously improving the quality of all the organizations processes, products, and services.

5-50

Motivation
Freuds theory
Maslows hierarchy of needs Herzbergs two-factor theory

6-51

Figure 1.1 Five Forces Determining Segment Structural Attractiveness

Potential entrants
Suppliers Buyers Industry competitors Substitutes

9-52

Table 16.1 Major Retailer Types

Specialty store Department store Supermarket Convenience store Discount store Off-price retailer Superstore Catalog showroom

16-53

Table 17.1 Communication Platforms Advertising Sales Promotion

Print and broadcast ads Packaging inserts Motion pictures Brochures and booklets Posters Billboards Contests, games, sweepstakes Premiums Sampling Trade shows, exhibits Coupons Rebates

POP displays
Logos Videotapes
17-54

Entertainment
Continuity programs Tie-ins

Events/ Experiences Sports Entertainment Festivals Arts Causes Factory tours

Table 17.1 Communication Platforms

Public Relations Press kits Speeches Seminars Annual reports Charitable donations Publications Community relations Lobbying Identity media
17-55

Company museums Street activities

Company magazine

Table 17.1 Communication Platforms Personal Selling Direct Marketing

Sales presentations Sales meetings Incentive programs Samples Fairs and trade shows Catalogs Mailings Telemarketing Electronic shopping TV shopping Fax mail E-mail Voice mail
17-56

Major Media Types

Newspapers Outdoor

Television
Direct mail Radio Magazines

Yellow pages
Newsletters Brochures Telephone Internet

18-57

Place Advertising
Billboards
Public spaces Product placement Point-of-purchase

18-58

Direct Marketing
Use of consumer-direct channels to reach and deliver goods and services to customers without using market middlemen.

19-59

Direct Marketing Channels

Catalogs
Direct mail Telemarketing

Web sites
Email marketing Mobile devices Interactive TV
19-60

Regional Free Trade Zones

European Union

NAFTA
MERCOSUL APEC

21-61

Five Modes of Entry into Foreign Markets

Indirect exporting
Direct exporting Licensing Joint venture Direct investment

21-62

Corporate Social Responsibility

Legal behavior
Ethical behavior Socially responsible behavior

22-63