MARKETING MANAGEMENT COURSE

CONCEPT 1- Difference between Marketing, Sales and CRM

Marketing Customer Relation

Lead Conversion
Sales Client Management
Management
Lead Generation Customer Management
Lead Management

Interpretation –

1) Sales is the only Department which brings in revenue for a Company.

2) Marketing department uses revenue to generate leads.
3) CRM department has a team that manages the existing clients, that department also uses the money.

LEAD – The potential/Probable customer who can buy the product. Example – A person who signed up/Enrolled up on website.
LEAD CONVERTED – The money paid by person for a product or service.

For Example – A person opened up any website and is looking for a product or service, the person is being managed by Marketing
Department. If the person enrolls/signs up, that means the lead is generated. If the persons pays the money for that product or service,
that is called Lead converted by Sales Department. Now the person is using that product or service and this will come under
Operations and CRM Department.

QUESTION 1 – What is Lead Generation?

Ans - A person when enquires/shows interest/give acceptance about a product or service.

QUESTION 2 – Is there any Sales Department for e-commerce companies like Amazon, Flip kart as we just need to go to their
website and buy the product. There is no one needed to convert the leads.
Ans – B2B – Amazon to Apple, One Plus
B2C – Amazon to Common people like me and you. So, Company like Amazon deals in Both B2B and B2C. They require
Sales department for B2B conversions. Example – Amazon will try to convert one plus to make their product available on Amazon’s
website.

QUESTION 3 – When the CRM department comes into play?

Ans – When the customer pays the money, the work of sales department ends there and then. After sales part is generally taken by the
CRM department.

QUESTION 4 – Does all these departments exist for a NGO?

ANS – Yes, Identification of interested company who provide funds to NGO is part of Marketing Department, the Sales Team will
convert them to take funds and the use of funds to provide products will be under CRM/Operations Department.

QUESTION 5 – If the tenure of the product or services gets over, so now that person would be included in which department?
Ans – That person will now be again the lead for the company so it will be included in the marketing department.

CONCEPT – 2 Marketing
Creating – Advertisements, Brand Name, Content
Communication – Offering the offer, Offering the brand
Delivering – Social Media Marketing, Using Billboards, Telecommunication, Sponsorship
Exchanging Offers that have value for Customers/Clients/Partner/Society (CSR Fund) at large.

CONCEPT – 3 Needs, Wants, Demand and Desires

NEED and WANT – Example
I need some food, I am hungry – Need
I want to eat Pizza, I am hungry – Want
But if you are hungry, and there is pizza to eat it will be still a example of need.
It depends on geographical location as well, if Pizza is costlier than Dal Roti in some country, then eating a pizza over Dal Roti will
come under need. It depends on the purchasing power of Individual.
DEMAND and DESIRE
Demand is backed by the purchasing power of the Individual.
Desire is backed the purchasing power and willingness of the Individual.

Example – I want to buy Ajanta shoe but desire to buy Reebok shoes.

Types of Needs
Case Study – Analysis of Need ( Automobile )

Stated Needs – Explicitly stated by consumer. Example: The car should be affordable/economical.

Real Needs – It is the underlying utility of a consumer irrespective of Stated need. Example: Maintenance Cost/Service Cost

Unstated Needs – Something which is expectation of the customer. Example: Mileage/Average, Power Steering

Delighted Needs – Something which is not expected or stated but will delight the consumer if provided (Increase the goodwill of
company and will ease the decision making for consumer). Example: First three services Free, Insurance

Secret Needs – Improves the perception of the consumer as the owner of the product. Example: Admiration/Envy

*Apple: ENVY – Introduced the concept of Mirror Selfie to promote the brand through logo.

Concept – Consumer Behavior

Select – Levis has one Jeans that has maximum sales, a consumer selects two Jeans and buys one, to make the selection of 2 nd option
of the jeans by giving a Rs. 2000 discount on other option might result in sale of both.

Buy – The Buying decision

Usage – I Phone, Use of charger cables for earphones, Expanding the eco system

Disposal – Adani Group will be carbon negative by 2030.

Gucci doesn’t Dispose the unsold bags…..Why? How they dispose?

Gucci adds the cost of unsold products in the MRP of sold products. If they produce 10 bags, they estimate that only 4 will be sold, the
cost of other bags will be added to sold bags. Gucci do this to maintain premium of its brand.

ZARA and H&M – Why H&M grew because of some mistakes done by ZARA. ZARA gave discounts and H&M came into market.

TATA diluted its brand value due to TATA NANO

Factors affecting Consumer Behavior

Cultural Factors – Filter Coffee has great demand in east India but no demand in North India. Saree has great demand in India but zero
demand in London.

Social Factors – Reference Groups, *Keyword based digital marketing

Personal Factors – Life Events

Marriage – Manayvar Mohe
Death - Insurance
Child Birth – Jhonsons and Jhonsons.
Students entering graduation - Letsbookmypg
People generally spend good amount of Money in these life events.
CONCEPT – STP ( Segmentation, Targeting, Positioning )
SEGMENTATION – Dividing large market into small groups based on similar needs.
Example – Tata motors makes Jaguar, Range rover, Honda City and Nano too.

Demographic( Based on age, income groups) Segementation – Nano ( lower income group, affordable car)

Geographic (Land and culture) Segmentation – Aloo Tikki Burger ( Capture vegetarians )
MC’D Selling beers in India ? No but Mc’D selling beers in Amsterdam? Yes

Psycographic ( Belief of Individual) Segmentation – Patanjali ( They show themselves as natural products,
capture market of above 45 years olds)

Behavioral ( Loyalty Brand Loyalty of customer) Segmentation – Dove shampoo ( Anti dandruff, oily hair, dry hair
shampoo)

TARGETING – Market one product to multiple segments, Multiple products in one segment
Example – Horlics make powder, now they market the same product to Kids, Women, Adults
Horlics – Segmentation (behavioral – kids) then targeted adults, women.

POSITIONING – It means trying to occupy a distinctive place in the eye of the target audience.
Example – Apple, ENO
POP – Point of Parity, Basic attributes which should be provided by brands in the industry.
POD – Point of Difference, Certain Attributes that give you an edge over the competition, gives abnormal profit.

4 P’s of Marketing – Marketing Mix

PLACE, PRICE, PRODUCT, PROMOTION

PLACE
Channel of distribution – Manufacturer to Consumer

Channel A

Manufacturer Consume
r
Amazon Basic
Margin and volume both good. Example – Medicine business(Directly to Hospital and medical stores)

Channel B

Manufacturer Retailer Consumer

Amazon is online retailer

Bata has own retail stores, MC’d and food outlets follow this channel.

Channel C

Manufacturer Wholesale Retailer Consumer

r
Local Brands use this channel. Example – Tobacco Companies(Big Fish – Vimal)
Why Channel C ?
To get back supply on line as the manufacturing unit is in city/state only and if the agent is involves he will also make money, so to
avoid that expense and earn some extra money they go for channel C.

Channel D

Manufacturer Agent Wholesale Retailer Consumer

FMCG Products – ITC
r
Product sales high on volume uses this channel.
Example – Rice sales has Rs. 20 but the product volume is in lakhs leads to Profit in crores.
To Avoid shortage of product.
Concept of Retail market/General Stores VS Big fishes/Super Markets

Why Big retail stores are able to capture market of General Stores?
Considering the example of Nestle’s Maggie. It is high volume product available widely in retail stores.
Cost of 1pkt of Maggie – Rs 12
Maggie releases 1pkt – Rs. 9.50
Agent takes with him Rs – 0.50
Whole seller takes at Rs – 1.00
Retailer Makes Rs – 1 with each Pkt of Maggie

Now the General store visits Manufacturer to purchase 50 pkts of Maggie. Manufacturer sends him to Wholesaler.
Retailer gets the pkts at Rs 11. He earns profit of Rs 1 per pkt.

Now Big Bazar visits the Agent and asks for 1 crore pkts for 200 stores around India. Agents suggest Big Bazar ko go directly to
Nestle. Nestle releases the product at Rs 9.50 but Big Bazar Acquired it at Rs 8.50 due to bulk order. Now the Big Bazar can offer
discounts at their stores and earn more than what retail store earns.

Another reason is that, General stores focus on seasonal Profits rather than perennial profits. Also there is Capital crunch in case of
retail/general stores.

PRICE
Consumer Perceived Value (CPV) = Total Consumer Benefit – Total Consumer Cost (TCB – TCC)

If A buys a product, say laptop. If the laptop works well and contributes to Functional and economical benefit plus if the laptop
doesn’t require service for 2-3 years as compared to other laptop which required service, which derives the psychological benefit.
When all the benefits combined together, they form Total consumer Benefit which can vary from people to people.

Now, Total customer cost includes all the time, energy, monetary cost spent to buy the product. Amazon has tried to take the TCC
down by selling the product online. They have tried to lower the hustle in buying the product.

PRODUCT
Emotional Factors – Johnson and Johnson talking about motherhood, Cadbury’s Dairy Milk (Festivals). PC Jewelers, Parle G.

Functionality Factors – Tesla (Electric car), CNG, Maruti, Sony, Gillete.

Self Image Factors – Apple, Nike (Passion), Raymond, Starbucks.

PROMOTION
ATL – Above the line = Reach out to masses
BTL – Below the line = Direct Marketing, Direct Sales
TTL – Through the line = Mix of ATL & BTL (Social Media Marketing)

GTM STRATEGY (Distribution)

Go To Market Strategy – It is a strategy of 1) How the company will reach the Consumer? 2) How company will gain Competitive
advantage over the competitor?
Apple has its own stores in particular city to reduce TCC. When customer buys the product from the apple stores it has two advantages
– 1) Fear of Fake Product is less 2) Less struggle to purchase the product
To gain the competitive advantage company need to squeeze their margin and give it to middlemen,
GTM vs Business Plan
GTM strategy is part of Business plan but not vice versa.
( GTM strategy does not talk about financial plan whereas business plan includes financial planning.)

Used in FMCG Companies ( ITX, HUL, P&G, Nestle)

PRODUCT MIX
All the products available with the company are part of Product Mix.

PRODUCT BREDTH
It consists of all the different kind (types) of products available with organization.
Example – Calculate the product breadth of P&G. The types of product available are Hair Product, Oral Care, Soaps and Detergents,
Baby Care and personal Care. So, the product breadth of P&G is 5.

PRODUCT DEPTH
It refers to all the different products available in one product breadth.
Example – Dove has product category of Hair Products. It includes, Anti-Dandruff, Oily, Dry, Smooth and Mixed use. Product depth
is 5.

PRODUCT LENGTH
Product Length = Product Mix
It refers to who number of items available in Product Mix
Total of product Depth.

Hair Products Oral Care Personal Care Soaps & Detergents Baby Care

PRODUCT BREADTH

1 1 1 1 1
2 2 PRODUCT
2 2 2 LENGTH
3 3
= 17
4 3 3 4
5

3 3 4 2
5

PRODUCT DEPTH

PRODUCT LINE CONSISTENCY

It means the similarity between the raw material required in production of different breadths.

PRODUCT LIFE CYCLE

2 3 4 5
 Stage 1

Product Research and Development

Stage 2

Introduction Stage

Stage 3

Growth Stage

Stage 4

Maturity Stage

Stage 5
Revenues
Decline Stage

TIME
The life of the product from introduction till the product becomes Scrap. It has basically 5 Stages throughProfits
which company goes
through starting from initiation till closure.

STAGE 1 – Product Research and Development

Research is Scrap cost and Development is Fixed/Main Cost.
For Example – If the product is not launched in the market and the money spent in Research is Scrap Cost.
This Stage Answers two Questions – Is there need of the product in the market? And Will the company be able to make the product?
Product Development includes that the company can make the product and it will be launched in the market.
Example – 2017 Tesla is Developed and launched. Neurlinks is startup which is in research stage. No one has seen its product in the
market.

STAGE 2 – Introduction
 Marketing Expenditures are at highest level.
 The company is in loss, they bear expenses and revenue is less.
 The company is on highest risk level and they need to prove their worth.
Example – Flipkart+ was launched and the supply chain was changed but the product didn’t worked out.

STAGE 3 – Growth
Early Growth –
 Marketing expenditure is more.
 The Revenue is increasing but still less than marketing expenses.
 The company is still making name in the market.
 The company is still booking losses but people start investing in the company because they know that company can make
profits soon.
 Why people are investing? MARKET SHARE.

Late Growth –
 Company will try to eliminate competitors and gain a good Market Share.
For Example – JIO eliminated all small companies in early growth stage and now it is aiming for Vodafone in late growth stage. And
as Airtel is having a good share, JIO will aim them in Maturity Stage.
In this stage –
 The Company earns the highest PERCENTAGE PROFITS. It means if I am investing Rs 100 and I am making Rs 20. The
growth is in increasing rate. 100 to 150 products sold, is increase of 50%.
 Example – Growth of OTT platforms.

STAGE 4 – Maturity
 The percentage profits are less as compared to Growth stage. 150 to 200, is increase of less than 50%. The growth is at
decreasing rate.
 Quantity Sold is more as compared to Growth Stage.
 Market is consolidating as competitors are backing out and companies are satisfied with their share in the market.
 New competition enters market as a new industry. Example – Netflix vs Bollywood. (Late Maturity)
 Now the percentage profits start decreasing at decreasing rate. (Late Maturity)
 Example – Television Industry has gone down. How to stop this? Innovation.
STAGE 5 – Decline
 The profits start decreasing at increasing rate.
 Example – Desktop Computers.

BRANDING
BRAND EXTENSION – Line Extension and Category Extension

Line Extension
Example – Dove makes various shampoos. One Brand – Various Products

Category Extension
Example – Loreal Makes oil, hair serum, shampoo, Conditioner – Consumer is same. Only the main product is marketed and side
products will be sold due to Brand Loyalty.

Example – Apple Launches new series of watches, mac books with every new I phone. The sales of products other than I phone is
equivalent to that of I Phone.

Disadvantages –

 Brand Dilution (Category Extension)

 Example – TATA Nano was the biggest brand dilution exercised by Tata. This affected their complete sales. People started to
see Tata as a cheap/affordable brand.

 Brand Confusion (Line Extension)

 Example – Cadbury Launched, Cadbury Silk, Cadbury Almond, Cadbury Crackles, Cadbury Silk, Cadbury Oreo. People
preferred Normal Silk. This created Brand Confusion. To remove this, Cadbury launched Cadbury Silk with Almonds,
Cadbury Silk Oreo.

Advantages –

 The company forms a brand image/Goodwill and it will easy to sell the side products to them.
 The company will be able to make more revenue/additional revenue with less marketing cost.

ATTACKS
Any kind of branding which happens in response to competitor or to instigate competitor.

Types of Attacks
Frontal Attack – The Attack on the opponent’s product, advertisement, price and distribution.
Pure Frontal Attack –
Limited Frontal Attack – Attack on specific customer segment
Price Based Frontal Attack – Attack on basis of price. Example – Rin and Tide (Exact consumer base)