Understanding of Marketing Concepts and Practices

❖ Need – Must have in order to survive. If not suffer physically or mentally (Air, Food)

❖ Want - Choice or desire. May not be able to get. Life continues without wants (Pizza, Burger)

❖ Customer – Person who buys good or commodity (Payer)

❖ Consumer – Who consumes the good (User)

❖ Market - All the potential customers, sharing a particular need or want, willing able to engage,
exchange, satisfy need or want

❖ Marketing (Phillip Kotler) – A management process of identifying, anticipating, satisfying,

(3 pillars) customer requirement for profitability.

❖ STP – Segmentation / Targeting / Positioning - To whom you market your products & how,
More focus on market communication, Relevant and personalize your customers.
• Segment audience
- Geographical – city, province
- Demographic – age, gender (personal information measured)
- Psychographic – lifestyle, social class (life pattern, emotional, can’t see, intangible)
- Behavioral – occasions, benefits, loyalty (Sub segments based on activities and
behavior – (Ex - discounts on hotel packages)
• Target the best fit – Evaluating potential and attractiveness of each segment and selecting
one or more segments
• Position the product – Process how to brand is going occupy a clear distinctive &
desirable place relative to competing products in the mind of target consumer (to capture
the target effectively)

❖ Marketing Mix – 7Ps

• Product – design, quality, brand, packaging, size
• Price – price list, discounts, allowances, payment, credit terms
• Place – channel, inventory, transportation
• Promotion – advertising, sales promotions, personal selling, direct marketing, public
relation (PR)
• People – customer, consumer
• Process – process and procedure
• Physical Evidence – lighting, floor music, fragrance

❖ Marketing Mix – 4Ps & 4Cs

 • Product, Price, Place, Promotion
• Consumer, Cost, Convenience, Communication

❖ Strategies
• Advertising - Mass / non personal paid media to create awareness to encourage the
product purchasing
- Above Line – TV, Radio, Press
- Below Line – Banners / Leaflets / Pennants
- Through the Line – Web / Digital & Social Media
• Sales Promotion – Short term incentive to encourage buyer for purchase products.
(Discount / Gift / Free Issue)
• Direct Marketing – Communicate customer directly via Media, Phone, Messages, Email,
Website, Online
• Personal Selling – Direct face to face interaction / personal presentation / Sales
representatives
• Public Relations – Public and Media for good corporate image (Annual Report)

❖ Product Life Cycle (PLC)

• Development stage -
• Introduction – Slow sales growth, Minimum or Negative profit, Little competition, High
marketing cost, High failure rate
• Growth – Increase sales, Profit reach peak, Increase market share, More competitors
entering to the market, Cost reduces
• Maturity – Sales continues increase, Profits reduces with age, Heavy promotion, High
competition
• Decline - Sales volume declines, Profitability diminish, No promotional expenses, Further
decreasing price
• Product Extension – Need to change, Modification, Revamping

❖ Ansoff Model – is a tool represent different options to the marketing manager when
considering new opportunities for sales growth
 New to same
Same to Same

Same to New New to New

❖ Customer Buying Behavior Process

• Problem recognition
• Information search – Internal / External
• Evaluation of alternatives
• Purchase decision
• Post purchase evaluation – Disappoint / Satisfy / Delighted

❖ Characteristics of Service
▪ Intangibility – Not physical / Cannot possess, seen or felt
▪ Inseparability - Can’t separate from its consumption
▪ Perishability – Can’t store for future use
▪ Variability – Depend on service provider (When and where)

❖ Cross Selling – Sales technique for customer spend more purchasing products what relate
being bought already (FD → Vishwa)

❖ Up Selling – Seller induces to purchase more expensive items, upgrade add-ons attempt for
more profitability (FD → FD higher value)

❖ Relationship Marketing – Facet of customer relationship manager (CRM). Focus customer

loyalty, Long term customer, Engage rather than short term goals.
• Retain customer is cheaper than recruiting a new one
• Loyal customer is not switching to a competitor
• Word of mouth induces more customers
• Can charge higher price

❖ Internal Marketing – Orienting and motivate customer contact employees & supporting
services work as team for customer satisfaction (MD’s Desk)
❖ Brand – A combination of name, term, sign, symbol, design etc. Identify the product by
differentiating the competitors

❖ Brand Guidelines – Logo, Color combination, Do and Don’ts