Marketing Basics

• Marketing is a societal process by which

individuals and groups obtain what they
need and want through creating, offering,
and freely exchanging products and services
of value with others.
Core Concepts of Marketing
Target
Target Markets
Markets &
& Segmentation
Segmentation

Needs, Wants, and Demands

Product
Product or
or Offering
Offering

Value
Value and
and Satisfaction
Satisfaction

Exchange
Exchange and
and Transactions
Transactions

Relationships
Relationships and
and Networks
Networks

Marketing
Marketing Channels
Channels

Supply
Supply Chain
Chain

Competition
Competition

Marketing
Marketing Environment
Environment
 The Four Ps
The Four Cs

Marketing
Mix

Place
Product

Conven-
Customer
ience
Solution
Price Promotion

Customer Communication
Cost
Traditional Organization Chart

Top
Management

Middle Management

Front-line people

Customers
Customer-Oriented Organization Chart

Customers

Front-line people

Middle management

s
C

er
us

m
t

Top
om

to
us
manage-
er

C
s

ment
Determinants of Customer Delivered
Value
Image
Image value
value

Personnel
Personnel value
value Total
Total
customer
customer
Services value
value
Services value
value

Product
Product value
value Customer
Customer
delivered
delivered
Monetary
Monetary cost
cost value
value

Time
Time cost
cost
Total
Total
customer
customer
Energy
Energy cost
cost cost
cost

Psychic
Psychic cost
cost
 STRONG BRAND STRUCTURE

TRIAL CHANNEL

ENABLERS
PRICING
NON STRATEGIC
DRIVEN
EQUITY
PROMOS
SALES
VALUE

BASICS

CONCEPT PRODUCT

8
 Three Intensive Growth Strategies: Ansoff’s
Product/Market Expansion Grid
Existing New
products products

Existing 1. Market 3. Product

markets penetration development

New 2. Market
markets development 4. Diversification
 Factors Influencing Company
Marketing
Strategy Marketing
intermediaries
Demographic/ M Technical/
economic pl ark physical
sy ann etin

st at ng
environment environment

n
em io
sy rm eti
st in g
em g
fo rk
in Ma Product

Suppliers Place Target Price Publics

customers

tio nd
en ion g

n
ta a
M ga yst

em at tin
or s
ar ni em

Promotion

pl niz ke
ke z a

im ga ar
tin tio

or M
g n

Political/ Social/
legal cultural
environment environment
Competitors
 Four Types of Buying Behavior

High Low
Involvement Involvement
Significant Complex Variety-
differences Buying Seeking
between Behavior Behavior
brands
Few Dissonance- Habitual
differences Reducing Buying Buying
between Behavior Behavior
brands
 Steps in Market Segmentation, Targeting,and
Positioning
Market Market Market
Segmentation Targeting Positioning
1. Identify 3. Evaluate 5. Identify
segmentation attractiveness possible
positioning
variables and of each concepts for
segment the segment each target
market segment
4. Select the
2. Develop target 6. Select,
profiles of segment(s) develop, and
communicate
resulting the chosen
segments positioning
concept
 Product Mix

Width
Width--number
numberofof
different
differentproduct
productlines
lines
Consistency

Length
Length--total
totalnumber
numberof
of Product
ProductMix
Mix--
items
items all
allthe
theproduct
product
within
withinthe
thelines
lines lines
linesoffered
offered

Depth
Depth--number
numberofof
versions
versionsof
ofeach
each
product
product
 Brand Strategies

Product Category
Existing New

Line Brand
Brand Name

Existing
Extension Extension

New Multibrands New

Brands
 Consumer
Consumer Marketing
Marketing Channels
Channels

0-level channel
Manufacturer
Manufacturer Consumer
Consumer

1-level channel
Manufacturer
Manufacturer Retailer
Retailer  Consumer
Consumer

2-level channel
Mfg
Mfg  Wholesaler
Wholesaler Retailer
Retailer  Consumer
Consumer

3-level channel
Mfg
Mfg  Wholesaler
Wholesaler Jobber
Jobber  Retailer
Retailer  Consumer
Consumer
 Classification
Classification Of
Of Retailer
Retailer Types
Types
Store Type Length and Breadth of Product
Assortment

Specialty
SpecialtyStores
Stores Narrow
NarrowProduct
ProductLine,
Line,Deep
DeepAssortment
Assortment
Wide
WideVariety
Varietyof
ofProduct
ProductLines
Linesi.e.
i.e.Clothing,
Clothing,
Department
DepartmentStores
Stores Home
Home Furnishings, & HouseholdItems
Furnishings, & Household Items
Wide
WideVariety
Varietyof
ofFood,
Food,Laundry,
Laundry,&&Household
Household
Supermarkets
Supermarkets Products
Products
Limited
LimitedLine
Lineof
ofHigh-Turnover
High-TurnoverConvenience
Convenience
Convenience
ConvenienceStores
Stores Goods
Goods
Broad
BroadProduct
ProductLine,
Line,Low
LowMargin,
Margin,High
High
Discount
DiscountStores
Stores Volume
Volume
Inexpensive,
Inexpensive,Overruns,
Overruns,Irregulars,
Irregulars,and
and
Off-Price
Off-PriceRetailer
Retailer Leftover
LeftoverGoods
Goods
Large
LargeAssortment
Assortmentof ofRoutinely
RoutinelyPurchased
Purchased
Superstores
Superstores Food
Food&&Nonfood
NonfoodProducts,
Products,Plus
PlusServices
Services
Broad
BroadSelection,
Selection,Fast
FastTurnover,
Turnover,Discount
Discount
Catalog
CatalogShowroom
Showroom Prices
Prices
Types
Types of
of NonStore
NonStore Retailing
Retailing

NonStore Retailing Accounts

for More Than 12% of All
Direct
Direct Selling
Selling Consumer Purchases, and is
trending up.

Direct
Direct Marketing
Marketing

Automatic
Automatic Vending
Vending

Buying
Buying Services
Services
The Marketing Communications Mix

Any
AnyPaid
PaidForm
FormofofNonpersonal
Nonpersonal
Advertising
Advertising Presentation
Presentation by anIdentified
by an Identified
Sponsor.
Sponsor.

Sales Promotion Short-term Incentives to

Encourage Trial or Purchase.

Protect and/or Promote

Public Relations Company’s Image/products.

Personal
Personal Selling
Selling Personal Presentations.

Direct Communications
Direct Marketing With Individuals to Obtain
an Immediate Response.