Marketing Summers Primer

Akshay

Why do people believe that Amazon has the best customer service?

Why do travelers favour suntan lotion over coconut oil?
Why do people consider ‘Sushi’ as gourmet? It’s all about Marketing, honey!

Marketing
A management process responsible for • identifying • anticipating • satisfying customer requirements ‘profitably’ 

Consumer Behaviour Model Marketing Stimuli (Mix) Place Price Product Promotion Other Stimuli Political Economic Social Technological Consumer State of Being Social Cultural Economic Consumer State of Mind Motivation Perception Learning Memory Purchase Decision Process Problem Recognition Information Search Evaluation of Consideration Set Purchase decision Product Choice Purchase Behaviour Brand Choice Dealer Choice Purchase Amount Timing Payment Terms .

Basics • Consumer Focus • Satisfying consumer needs (Maslow’s Model) – Basic (Level 1 and 2) – Social Acceptance (Level 3) – Social Envy (Level 4) .

owning a Harley Davidson or a Ferrari . man-made.The Core of Marketing • Need – Felt when there is a conflict between desired state and the current state e. e. thirst.g.g. water • Desire – Strong expression of a want e. juice.g. bath • Want – Manifestation of a need – Specific.

exhibitions. wholesalers or retailers • Communicating the value proposition and benefits offered by the product or service to the consumer Promoti • Branding.• The Base 4 Mind your Ps • The basic value proposition Product • Can be a product or service • Consideration given by the consumer • Includes strategies like offers. PR. discounts Price Place • Availability at the right place. advertising. sales promotions on . right time and in the right quantity • Channels such as the internet.

testimonials. brochures Process • Process followed during delivery of service • e. banking.g. wealth management .The 7Ps of Services/B2B Marketing Physical • Physical evidence for a consumer to know more about the experience of using a particular service • Vital since the service is essentially intangible and lacks a physical form • Pamphlets.g. process at ICICI bank branches People • The people in the organization who interface with the consumer • Perception of service quality directly depends on the customer service provided by the people e. insurance. processes followed by McDonalds.

Communication Channel • • • • • • TV Radio – Maximum penetration Print Internet Mobile Social networks (word of mouth) .

ATL/BTL Above The Line • Promotional activities carried out through conventional forms of mass media – Television – Radio – Print – Billboards Below The Line • Non-media advertising • Flex/banners at Points of Purchase Through The Line (Combination of both) .

Bingo.Consumer Behaviour • Different buying behaviour in different situations • Marketing strategy based on consumer behaviour • Impulsive • Picking (Lays. Biscuits) • Unplanned • Low-involvement Products • Variety Seeking • Switching .

industrial marketing. Dettol • Purposive • B2B. high involvement products . D-Cold.Consumer Behaviour • Brand Loyal Purchasing • Levis Jeans • Van Heusen shirts • Raymond Suits • Problem Solving • Crocin. Burnol.

W) – Demographic (age. IT services in N/E regions?) Actionable (product can be customized to serve) . S.g. E. Achievers. usage rates) Differentiable (through different marketing mix) Measurable (in terms of size and profitability) Accessible (e. values. lifestyles) • Thinkers. gender. Strivers. loyal. income) – Psychographic (traits. Experiencers – Behavioral (benefit-seeking.STP – The Essence • Segmentation (Homogeneity of needs) – Geographic (N.

D) • Based on occupation and education of the head of the household Rural SEC (R1 to R4) System • Based on the education of the head of the household and the type of housing .Socio-economic Class (Demographic) Urban SEC System (SEC A1.Demographic Segmentation • SEC . C. A2. B.

competition.• Targeting – Assess segment attractiveness – Market growth. Rolls Royce (premium). Surf Excel Matic (high-quality). Harley Davidson (iconic American) . Low price. low calorie. channel attractiveness • Positioning – Conveying the message of differentiation – Creating Points of Parity and Points of Difference – E. high quality. refined etc.g. – Positioning of Nirma (low price).

marketing planning. trade tariffs. attitudes. product development – Political • Tax laws. inflation – Social • Health consciousness. trade restrictions – Economic • Growth rate. acceptance – Technological – Legal – Environmental .PESTLE Framework • Used in SWOT analysis for strategic planning. interest rates.

Porter’s 5 Forces Model .

The Mother of all 2X2s .

Portfolio Planning • Cash Cows – Low growth and "mature" market – To be "milked" continuously with as little investment as possible – E. ITC Cigarettes . Dettol antiseptic.BCG Matrix Explained Applications – Brand marketing. Product management – Strategic management.g.

• Dogs – Low growth. Vivel. low market share – Analyze carefully in order to determine whether they are worth the investment required to grow market share e. low market share – Should be hived off or divested e. high market share – Hotels and Agri-business for ITC Group . Sunfeast • Rising Stars – Invest: High growth. Fiama De Wills. ITC Infotech • Question Marks (Problem Child) – High growth.g.g.

• Limitations – Linkage between market share and profitability is questionable – A low market share product may actually be very profitable and vice versa .

g.Ansoff Growth Matrix e. Dettol tried to promote its disinfectant as a medical antiseptic as well as a household cleaning product (market development) ITC Bingo chips (product development) Virgin Group (diversification) .

The Product Life Cycle A product has a limited life during which it poses different challenges – these have to be managed .

• Introduction Phase (Innovators) – – – – Costs high (promotion and marketing) Sales volume low No/little competition Demand has to be created • Growth Phase (Early Adopters) – Reduced costs due to economies of scale – Sales volume increases significantly – Competition increases with few new players in establishing market – Maximize market share .

• Maturity Phase (Majority) – Costs are very low – Sales volume peaks – Increase in competitive offerings – Prices tend to drop due to the proliferation of competing products – brand differentiation. feature diversification – Industrial profits go down .

• Saturation and Decline Phase (Laggards) – Costs become counter-optimal – Sales volume decline or stabilize – Prices. profitability diminish – Profits through cost cutting – Focus on production/distribution efficiency rather than increased sales .

Sales and Distribution Colgate Palmolive Factory Stock Transfer Carrying and Forwarding Agents Primary Sale Stockist Secondary Sale Wholesaler Retailer Offtake / Tertiary Sale Customer .

Sales and Distribution N/w .

3 million retailers – Entire urban population + 250 million rural consumers • Marico – – – – 1.500 stockists 1.000 stockists – 6.6 million retailers 18 million Indian households .000 distributors 2.Statistics • HUL – 4.

right time and right quantity .Sales Objectives • ‘Place’ of the Marketing Mix • Target-driven (push strategy) • Making the product available at the right place.

Other Segmentation Models Globals Strivers Seekers Aspirers Project Shakti. Swasthya Chetna Customizin g products Smaller stock & services keeping for the lesser units (SKU) privileged Deprived (Bottom of Pyramid) .

Pepsodent – Built up defenses on all price points and varieties .Marketing Warfare • Defensive – Only the market leader should consider – Best defensive strategy is the courage to attack yourself – Blocking strong competitive moves – E.g. Colgate Dental Cream – Market leader – consistently defensive positioning v/s Close-up.

– Avis talked of being perfect because of the number two tag – Burger King claims its burgers are bigger and taste better than McDonald's – ‘Have It Your Way’ Campaign attacks McDonald's ‘inflexible’ consistent production line .• Attack – Usually practiced by challenger(s) to the market leader – Attack a weakness in the leader’s position – Car rental firm Avis attacked market leader Hertz with purely offensive strategies.

Flanking • • • • • Practiced by the other smaller players Flanking move played in uncontested territory Tactical surprise is the key Pursuit (follow-up) is equally important Types – Geographical – Segmented • Nirma’s exclusive foray in the low-price segments .

Chandrika. never act like the leader • Be prepared to leave at a moment's notice • Babool. Medimix .Guerilla • Usually implemented by firms who are smaller in market position/resource base than the firm they attack • Find a segment of the market small enough to defend • No matter how successful you become.

Marketing Myopia • Be customer-oriented rather than product-oriented • Hollywood – Faced an increased competition from television – Business of “entertainment” rather than “moviemaking” • Cadbury’s – Business of spreading joy (rather than chocolate making) • Coca-Cola – Business of quenching thirst – Drops of Joy positioning .

hair care.Some Tips • Read up on leading brands of the leading FMCGs • Know more about the leading brands and the companies they belong to for various product categories like foods. • Most interviews are form-based • HUL interview involves questions on competing brands . personal care etc.

9 6009 10356 11356 28.1 -3.1 18.1 -0.3 21.3 28.5 12.0 QoQ (%) 4.4 Godrej Consumer HUL ITC Marico Nestle Tata Tea 3616 42157 38997 26.0 11.2 -0.1 23.4 33.6 .India FMCG Snapshot Company Colgate Palmolive Dabur Sales Revenue YoY (%) 4076 6040 16.5 -5.2 16.

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