Chap 1 - Defining marketing for new realities

Chap 3 - Creating long term relationships

Chap 5 - Conducting Marketing research

Chap 6 - Analyzing consumer markets

Chap 7 - Analyzing Business markets

Chap 9 - Identifying market segments and targets

Chap 12 - Addressing competition and driving growth

Chap 1 Defining marketing for new realities

 Why is marketing important?
 Scope of marketing
 Core marketing concepts
 What are the forces that are impacting marketing managers?
 Holistic marketing

Marketing is about identifying and meeting human and social needs.

Human – Personal; Social needs – Need of society

Scope of marketing
 Goods can be marketed
 Services can be marketed
 Experiences can be marketed
 Person can be marketed
 Ideas can be marketed
 Information can be marketed
 Places can be marketed
 Organizations can be marketed
 Property can be marketed
 Events can be marketed

Why is it important?

 Need
 Wants
 Demands

Need is physiological.
Want is a desire. It is cultural. It is a preference.
Demand is willingness, ability to pay and when the government or law allows it.
 Marketing management
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.

Evolution of marketing philosophies

 The production concepts – Just to keep producing. The basic proposition of the production
concept is that customers will choose products and services that are widely available and are
of low cost. So business is mainly concerned with making as many units as possible.
 The product concepts – Focusing on developing the product to meet customer needs. The
product concept proposes that consumers will prefer products that have better quality,
performance and features as opposed to a normal product.
 The selling concepts – Consumers will buy the products only if the company promotes/ sells
these products. The selling concept holds the idea- “consumers will not buy enough of the
firm's products unless it undertakes a large-scale selling and promotion effort.”
 The marketing concepts – Focuses on needs/ wants of the target markets and delivering
satisfaction better than competitors.
 The Holistic marketing concepts – Based on the development, design and implementation
of marketing programs, processes and activities.

Holistic marketing

 Relationship marketing – The goal of relationship marketing is to build strong, long-lasting

relationships with various stakeholders and other important parties connected to the
business.
 Integrated marketing – Within the integrated marketing component of a holistic strategy,
businesses work towards making marketing decisions that create value for stakeholders
through a clear, concise marketing message.
 Internal marketing – Internal marketing is aimed at catering to the specific needs of the
business's own employees. Internal marketing ensures that employees are satisfied with the
work they perform each day as well as the philosophy and direction of the organization as a
whole. Greater satisfaction among employees leads to increased customer satisfaction over
time, making internal marketing a key aspect of the holistic approach.
 Performance marketing – The last component of holistic marketing is societal or socially-
responsible marketing. This component extends a company's reach beyond the customers
consuming its product or service to society in general.
Societal marketing is aimed at creating marketing initiatives that are based on ethically
sound business practices, such as environmentally-friendly production or meaningful
interaction with the surrounding community.
Chap 5 - Conducting Marketing research

Marketing research is the function that links the consumers, customers and public to the
marketer through information.

Ways to conduct marketing research

 Check the rivals
 Check with partners. (channel, distribution, retailers)
 Internet
 Students and professors
 Employees

Scope of marketing research

 Syndicate marketing – Organizations that collect data and keep. Agencies who collect the
data and keep it and sell it to you. Professional agencies
 Custom marketing research firms – Customized market research. Tailored to our need and
requirements.
 Speciality line marketing research firms – Very few agencies do it. It is very special which
can’t be done by everyone.
Steps involved in marketing research

1. Define the problem: To understand marketing feasibility of WIFI service in Vistara at the
rate of Rs. 500 per hour
2. Develop the research plan
 Data sources
 Primary
 Secondary
 Research approaches
 Observational research – By observation, should be a qualified
researcher. Eg: Kids toys (What they like, colour, shape, type)
 Ethnographical research – Experts who know about the past,
people, what people ate, drank, wore (cultural)
 Focus group research – Organized group discussion. The study has a
purpose. The researcher calls about 8-12 people. (quantitative)
 Survey research
 Behavioural research – When we introduce something what is the
behaviour. When a service is introduced.
 Experimental research
3. Research Instruments
 Questionnaires
 Qualitative measures
 Word associations – Word by which we associate that thing.
 Projective techniques – Story writing Eg: Writing incomplete story
and ask to complete it. What the person writes, we can understand
the persons personality/ perception.
 Visualization
  Laddering – Asking for more and more questions. Trying to get more
information. Trying to exaggerate to get true information one to
one, intense interview, where the interviewer keeps probing to get
more information.
 Brand personification – Giving human/person/entity like image.
 Technological devices – Devices used to understand people.
4. Sampling plan
 Sampling unit – Defining what kind or category. Actors, Artists,
Doctors.
 Sample size – Number of units.
 Sampling procedure – The method of collecting the sample. Eg:
Random sample, Systematic sample.

5. Contact methods
 Mail contacts
 Telephone contacts
 Personal contacts
 Online contacts

Matrix involved in marketing research

Marketing Metrics: -
• Assesses marketing effects.
• Set of measures that helps marketers quantify, compare, and interpret their performance .
Marketing-mix modelling: -
• Estimates causal relationship and to measure how marketing activity affects outcomes.
• Analysis data from variety of sources to understand more precisely the effects of specific
marketing activities

Chap 3 Creating long term relationships

Creating long term loyalty relationship

 Customer perceived value

 Net promotor score

Customer perceived value – It is the difference between the prospective customer evaluation
benefits and costs of an offering and the perceived alternatives.
 Total Customer Benefits Total customer costs

Product benefit Monetary benefit

Service benefit Time cost
Personal benefit Energy cost
Image benefit Psychological cost

Monetary – how much money to spend

Time – How much time is spent to research what to buy

Energy – Travelling to the place where the product is

Psychological – Established brands have less psychological cost

Cost is less than the benefit

Product – Good features of the product

Service – Providing good service

Personnel – Connecting on personal level. Building customer relationship

Image – Image of the brand we buy

Benefit more & cost less

Net promotor score

70 click 9-10 promotors
15 click 7-6 passive (ignore)
15 click 1-6 detractors
70-15= 55% score
Chap 6 - Analysing consumer markets

Modal of consumer behavior

Consumer psychology

1. Motivation – The motivation to buy a certain product. (motivation to shoot the video)
2. Perception – Something we perceive over years (consumers perception) Eg. Man with good
clothes and a book (
3. Learning – Learning can be positive / learning. The experience we accumulate over a period of
time.
4. Memory – Short term memory will fade, long term memory will stay

Consumer characteristics

1. Cultural (has to do with different cultures, people consumer things on basis of their culture)
2. Social (has to do with society and surroundings)
 Reference group-when we observe people and buy things similar to theirs.
 Aspirational group- we want to be like them, we don’t have it rn but we want to be like them.
(eg. Brand ambassadors)
 dissociative group- we don’t want to associate / be associated with a particular group.
3. Personal

Consumer stimuli

Marketing stimuli

 Product and services

 Price
 Distribution
 Communication

Other stimuli

 Economic – we can get it from different price range

 Technological – features which the product provides/ as per our needs.
 Political – government is inviting different brands to India
 Cultural – it is a western culture, new generation started eating pizzas/ how we’re evolving
culturally adapting different cultures.

Buying decision process

Process involved in buying decision making

 Problem recognition
 Information search
 Evaluation of processes
 Purchase decision
 Post purchase behavior
 Purchase decision
 Product choice
 Brand choice
 Dealer choice
 Purchase Amount
 Purchase Timing
 Payment Method

Customer is the one who consumes the product and customer is the one who buys it.

Hypothetical mental map

Chap 7 - Analysing Business markets

Analyzing Business Market Behavior

Organizational Buying can be defined as the decision-making process by which formal organizations
establish the need for purchased products and services and identify, evaluate and choose among
alternative brands and suppliers.

Buying Situations in business markets

1. New Task – an organisational buying situation in which the organisation has had no previous

experience with the purchase of product of the kind required.
Eg. Different agencies coming to present and then I’ll select one.
2. Modified Rebuy – we make some modification so we might call some new sellers
3. Straight Rebuy – we buy straight from the same buyer again.

We’ll have a lot of sellers/ service providers

 Then select one from them
Straight rebuy means when next year we repeat the same process with same seller
When necessary we’ll tell them, we need to make some changes and might consider some
other sellers.

Buying Centers
1. Initiators- Sir can be the initiator
2. Users- Students
3. Influencers- Students (who tell this is required/We’ll choose this company)
4. Deciders- Internal Purchase committee (who decide what to choose)
5. Approvers- Management (the management approves)
6. Buyers - People who authorise the proposed actions of deciders or buyers are approvers.
They could also be personnel from top management or finance department or the users.
(Accounts department)
7. Gate Keepers -A gatekeeper is like a filter of information. He is the one the marketer has to
pass through before he reaches the decision makers.

Stages in buying process

 Buy grid framework
1. Problem Recognition- Recognize the problem
2. General Need Description- describe what we require
3. Product specification- what machines we need
4. Supplier search- who will supply the products
5. Proposal solicitation- sending the proposal
6. Supplier selection- select the supplier
7. Order- routine specification- repeat orders/ monthly or weekly. If we want it regularly then
we must specify it
8. Performance review-

Vender Analysis
Attributes of vendor analysis
1. Price – Get quotations from suppliers for different product =0.20
2. Supplier reputation – on a scale of 1-10 we can ask people and understand the reputation =
0.10
3. Product reliability – visit the location where the product is and check it, past experience =
0.20
4. Service reliability – do a market research = 0.20
5. Supplier flexibility – put different conditions to the supplier and see how many of them are
met = 0.30
Poor=1 Fair=2 Good=3 Excellent=4

Otis Chandelier Johnson Bluestar

Price
 Supplier
reputation
Product
reliability
Service reliability
Supplier
flexibility
Total

 Derived demand is derived from economic situation.

 Fewer, Larger buyers
 Close supplier customer relationship
 Professional purchasing
 Multiple sales calls
 Derived demand
 Inelastic Demand
 Geographically concentrated buyers

Buying situation

Buying stages

Vender analysis

Multiple sales calls

Inelastic demand

Geographically concentrated buyers

Chap 9 - Identifying market segments and targets

People have specific requirements and the companies target these customers who are ready to pay
high price for these products.

Identifying market segments and targets

Segmentation variables

 Criteria for segmentation

 Levels of segmentation
 Steps in segmentation process

S–Segmentation T–Targeting P–Position

4 Variables in segmentation
 Geographic
 Demographic
 Psychographic
 Behavioral

Chap 12 - Addressing competition and driving

growth

Addressing competition and driving growth

Product Category

Toothpaste

Market leader (40% market share) – Colgate

Market challenger (30% market share) – Pepsodent, Close-up

Market follower (20% market share) – Dabur, Sendodine

Market Niches (10% market share) – Himalaya, Danta Kanti , Sendodine

Cars / Automobile

Market leader (40% market share) – Maruti Suzuki Honda,

Market challenger (30% market share) – Hyundai, Ford

Market follower (20% market share) – Maruti Suzuki, Toyota

Market Niches (10% market share) – Chevrolet, Tata

4 players

Market leader (40% market share)

Market challenger (30% market share)

Market follower (20% market share)

Market Niches (10% market share)

6 Defense Strategies

General attacking the strategies- Market leader (6 types)

1. Position – stand in position and attack

2. Flank – moving to the side and attack (bisleri)
3. Preemptive – before the opponent is ready go and attack
4. Counter offensive – If the opponent attacks first then attack
5. Mobile – move and attack (rebel)
6. Contraction – leave the place, withdraw

Market challenger (5 strategies) Defense strategies

1. Frontal attack – move forward and attack (alexander)

2. Flank attack – moving to the side and attack
3. Encirclement attack – go around in circle and attack (if a challenger of bisleri can go and
capture metropolitan cities)
4. Bypass attack – In between encirclement and flank attack (Aquafina)
5. Gorilla attack – attack suddenly and come back (Shivaji Maharaj)

Attack strategies – Market follower

Market Niches –

Product Life Cycle

1. Development
The product development stage is often referred to as “the valley of death.” At this stage,
costs are accumulating with no corresponding revenue. Some products require years and
large capital investment to develop and then test their effectiveness. Since risk is high,
outside funding sources are limited. While existing companies often fund research and
development from revenue generated by current products, in startup businesses, this stage
is typically funded by the entrepreneur from their own personal resources.
2. Introduction
The introduction stage is about developing a market for the product and building product
awareness. Marketing costs are high at this stage, as it is necessary to reach out to potential
customers. This is also the stage where intellectual property rights protection is obtained.
Product pricing may be high to recover costs associated with the development stage of the
product life cycle, and funding for this stage is typically through investors or lenders.
3. Growth
In the growth stage, the product has been accepted by customers, and companies are
striving to increase market share. For innovative products there is limited competition at
this stage, so pricing can remain at a higher level. Both product demand and profits are
increasing, and marketing is aimed at a broad audience. Funding for this stage is generally
still through lenders, or through increasing sales revenue.
4. Maturity
At the mature stage, sales will level off. Competition increases, so product features may
need to be enhanced to maintain market share. While unit sales are at their highest at this
stage, prices tend to decline to stay competitive. Production costs also tend to decline at
this stage because of more efficiency in the manufacturing process. Companies usually do
not need additional funding at this stage.
5. Decline
The decline stage of the product life cycle is associated with decreasing revenue due to
market saturation, high competition, and changing customer needs. Companies at this stage
have several options: They can choose to discontinue the product, sell the manufacturing
rights to another business that can better compete or maintain the product by adding new
features, finding new uses for the product, or tap into new markets through exporting. This
is the stage where packaging will often announce “new and improved.”