Marketing

Introduction
Key Concepts
 Learning Objectives
1. What is marketing ( Role)
2. Evolution and Importance
3. Customer Value
4. Core marketing concepts
5. Marketing strategy framework
 The Scope of Marketing
• Marketing is about identifying and meeting human and social
needs
• AMA’s formal definition: Marketing is the activity, set of
institutions, and processes for creating, communicating,
delivering, and exchanging offerings that have value for
customers, clients, partners, and society at large
• Marketing is the whole business seen from the customer's
point of view.
 Marketing Management
• The art and science of choosing target markets
and getting, keeping, and growing customers
through creating, delivering, and
communicating superior customer value
 What is Marketed?
• Goods
 What is Marketed?
• Services
 What is Marketed?
• Events
 What is Marketed?
• Experiences
 What is Marketed?
• Persons
 What is Marketed?
• Places

• Properties

• Organizations

• Information

• Ideas
Evolution of Marketing
Evolution of markets
Evolution of markets
 Company Orientation toward the Marketplace
Conceptual Approaches to Marketing
Marketing Orientation The Belief Behind It
Production Consumers prefer products that are widely available
and inexpensive.
Product Consumers favor products that offer the most
quality, performance, or innovative features.
Selling A company has to sell its products aggressively,
because consumers won't buy enough of them on
their own.
Marketing The key to achieving a company's goals is its ability
to be more effective than its rivals in creating,
delivering, and communicating value to its target
customers.
Societal marketing A company's task is to determine its target
customers' needs, wants, and interests—and to
satisfy them better than their rivals do, but in ways
that preserve or enhance customers' and society's
well-being.
Company Focus
High production efficiency, low costs, and mass
distribution of products
The design and constant improvement of superior
products, with little input from customers
Using a battery of selling and promotional tools to
coax consumers into buying, especially where the
need is not urgent or developed
Target markets, customer needs, coordination of
all company functions from the target customer's
point of view
Building social and ethical considerations into
marketing practices; balancing profits, consumer
satisfaction, and public interest
What is Unique about Marketing function in
an organization?
 Unique about Marketing

• For Marketing all functions are internal service providers.

• All their customers are external --- Channel and end customers
• Represent all functions to the external customers
• Carry the baton in the last mile
• Compete with other organizations in discharging their function.
Deal with maximum uncertainty and high accountability
• Get disproportionate credit/blame
Marketing and Sales
 SALES &MARKETING

Sales & Marketing functions are closely aligned.

Convergence at the top for synthesis/synergy

SALES MARKETING
 Customer acquisition
Channel Management Product
Sales Force Price
Customer
Management Packaging
segment
 Inventory Costing
Generating leads
management  Margin
Promotion
Lead Management Branding
Sampling
 Relationship building Advertising
 Fulfillment PR
 Collection
 After sales service
Starting point of Marketing
( & Business)
 Customer Need
• Needs. Fundamental requirements, such as food, air, water,
clothing, and shelter. Beyond the purely physical level, people
also need recreation, education, entertainment, and a place
within a community or social status.
• Wants. These are needs that are directed at specific objects
that might satisfy those needs. For instance, you
might need food, but for a special occasion you may want to
have a meal at a restaurant rather than preparing your food at
home.
• Demands. These arise when people both want a specific
product and are willing and able to pay for it.
Types of Needs

STATED

REAL

UNSTATED

DELIGHT

SECRET
 Types of Needs
• Stated needs (The customer wants an inexpensive car.)
• Real needs (The customer wants a car whose total operating cost, not initial
price, is low.)
• Unstated needs (The customer expects service, spare, repair, replacement
etc.)
• Delight needs ( Advanced music and GPS system– customer had not
thought about it.)
• Secret needs (The customer wants friends to see him as successful in life
Marketing Management
Customer value
Customer value
What value is delivered/derived

 Variable by person
 Variable by time
 Variable by purchasing power
Marketing Strategy Framework
 Marketing Strategy Framework
Schematic of marketing process

Marketing analysis (the 5 Cs)

Customers Company Competitors Collaborators Context

Target Product and

Marketing
market service
segmentation
selection positioning
Creating value
Marketing mix (the 4 Ps)

Product and
Place/channels Promotion
service

Capturing value Pricing

Customer Customer
Sustaining value
acquisition retention

Profits

Source: This figure is derived from similar representations developed over the years by Harvard Business School
marketing faculty and other academics.
MARKETING MANAGEMENT Framework
Marketing Mix Components (4 Ps)
 Marketing Objective

 To create or add value for the customer via the firm’s market offering(s) – product /
service

 Communicate and Deliver that value to the customer and

 Capture back to the firm (in the form of revenues) a part of the value created or added
for the customer

 Sustain it over time so as to enhance the long-term profitability (viability) of the firm
 Product

 Overall Product Strategy – Consistent with Business Model, Targeting and Positioning

 Augmented Product and Product Market Boundaries

 Innovation and New Product Development including Demand Forecasting, Product

Testing, Product Launch and Tracking

 Product Line- and Brand- Extensions

 Interaction with other Elements of Mix

 Managing the Product over the Life Cycle -- product and brand life cycles
 Price

 Product Line Pricing

 Price Dynamics (e.g., Skimming vs. Penetration)

 Pricing Mechanisms (e.g., Fixed vs. Negotiated, Competitive Bidding, ..)

 Vertical Pricing (Pricing across the Distribution Channel)

 Pricing Tactics (e.g. allowances, payment terms, ..)

 Integrating Price with other elements of Marketing Mix

 Drivers to Pricing decision

• Critical Drivers of Pricing Decisions: customers, costs, competition and context

• Understanding Relevant Costs and the Structure of Costs for Pricing

• Competition – Anticipating and Reacting and Influencing

• Customer Value and Willingness-to-pay, Price Sensitivity and Segmented Pricing (e.g.,
Bundling, Quantity Discounts) and Psychological Considerations
 Channel Design & Management

• Designing/structuring Channel
• Defining Channel policy
• Channel dimensioning
• Managing Marketing Channels – Channel Coordination and Conflict Management
• Salesforce Management
• Channel Performance Evaluation
 Role of Promotion

 Create customer’s awareness of the product

 Create perception of the brand and register its features

 Generate interests in purchasing

 Create urgency in making the purchase

 Create trial

 Positively influence post-purchase evaluation

 Induce repeat purchase, ….

 Marketing Communication

Creative
• Positioning Statement
• POP VS POD
• Creative story/idea
• Mnemonics
• Execution of the idea
• Creative and Execution conversion across media

Media planning/Buying
• Reach in TG
• Quality of Reach
• Frequency
• Call to action
• Integration of all media
• Cost per reach
 Customer Lifetime Management
Nature and Importance of Service

What is Service Quality?

Customer Satisfaction, its measurement and use?

Beyond Satisfaction: Customer Retention and Customer Loyalty

Role of Employees (especially, frontline) in Services

Customer Relationship Management

More Ps
 Services Marketing

PEOPLE Perishable/ inseparable

PROCESSES Variable

Physical evidence Intangible

Marketing KPIs
 Marketing KPIs

Relative
Acquisition Revenue Input
Market
& Churn- and Cost Parameters
share

Measures—Absolute, Change, Relative to competition

 Marketing KPIs
Contribution Margin Distribution Penetration/
(Price- Variable cost) Density
Advertising and sales TOMA
promotion spend Brand Equity

Selling costs Service Frequency

Measures—Absolute, Change, Relative to competition

 How do we categorize Products
 Parameters Product Categorisation

 Which are the parameters that will provide us deep insights in crafting
marketing strategy

 Think about it..

https://youtu.be/sR-qL7QdVZQ
https://youtu.be/bilOOPuAvTY
https://youtu.be/O1QlYRZKzvo
Go to Market
 Go to Market strategy

What are the go to market decisions to take?

Example:
Launching a new cleaning appliance
• with wet and dry accessories
• cleaning floor/window/Sofa/Any surface
 Go to Market strategy
Decision/Strategic element
Whom to sell: customer
segments
Capacity to produce/distribute
for creating resources and
capabilities
Market planning:
How to Sell: Channel
Who is my channel partner
Details or basis
User Profile. Individual/ HH/
Enterprise
Primary/secondary Need satisfied How urgent is the need?
Influencer/buyer
How is the business decision
taken
Define Addressable market size,
competition and market share.
Define customer segments and Reach objective
Geographical markets
Which geographical markets?
Design of Territories and Outlet
mapping
Channel Type/character
Profile of channel partner.
Alignment to Objective
What is value/benefit to the
user? Life time value?
What is the cost of the product?
One time/recurring?
How compelling is the Value
proposition
Product to Customer Fit
Market coverage and servicing
plan
What is the business model and
value prop
Who would be a good fit?
 Go to Market strategy
Decision/strategic element Details or basis Alignment to Objective
Outlet profile/ prioritisation.
Match competition or
Create a benchmark such as
Where To Sell: Outlet profile differentiate?
'Stock in outlets where a
How??
defined competing brand is
stocked'.
Who will Sell: Channel Vs Company SE
What to communicate
Creative
How to communicate
Media plan
Which medium

Many of the decisions are interlinked and taken jointly. And even where
each element is contemplated independently when the strategy is put
together need to align to be in Sync.
Have Fun
learning
Dilbert on Marketing
Customer value
Customer value