Market???

Market & Marketing

Market : A set of actual and potential buyers
 Marketing is a group of interrelated activities
designed to identify consumer needs and to develop,
distribute, promote and price goods and services to
satisfy these needs at a profit.
“The process by which companies create value for
customers and build strong customer relationships
in order to capture value from customers in return”-
Philip Kotler
Marketing Functions-
• Finan
cing
• Risk-
• Buyi
Exc taking
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gesical porti
• Selli
ning
Dist
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Marke
Facili
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• Stori
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Infor
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• Stand
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Marketing Functions
Exchange function: Goods are exchanged from
one hand to another. By buying and selling
products go to the users hand. They use those for
consumption and final sale.

1. Wholesale : Selling to other sellers

2. Retail : Selling to consumers
Physical Distribution : Transporting and storing
goods are termed as physical distribution
functions.
Members of the market segment usually are
scattered throughout the country.
 These functions place products where they are
wanted.
Facilitating Functions :Some functions facilitate or assist
companies in performing the exchange and distribution
functions.
1.Financing : The financing functions facilitate or assist
companies in performing the exchange and distribution
functions( gives money to parties to buy and sell )
2.Risk bearing :Companies face the risk of loss caused by
competitors marketing tactics, changes in product life
cycle and disappointing sales.
3. Obtaining marketing information : Managers conduct
market research which helps in collecting and interpreting
data on customers demand.
4. Standardizing and grading : permits buyers and
sellers to make transactions without physically
examining the product in question.
Marketing Process
Marketing Process
A process involves some sequential acts.
Marketing process-
1. Identifies a potential target market of consumers (Age ,
Income, Location).
2. Analyzes the needs of the identified target market.
3. Researches the potential of the target market for demand,
sales, buying power and potential profit.
4. Creates a product or service intended to satisfy the needs
of the target market
5. Distributes , prices, and promotes the product or service
to the target market.
6. Ensures satisfaction through after sales service.
 Marketing Process

Distribute
product

Research
Potential Price
Identifies a Analyzes Create A
Sales, Profit, Product to Provide
Potential The Needs Product to
Demand, Reach After-sales
Target of Target Satisfy
Buying Target Service
Market Market Needs
Power Market

Promote
product
Collect
feedback
1. Marketing Identifies a potential target market of
consumers (Age, Income, Location)
Target market on the basis of age
Target Market on the Basis of Income & Location
2. Marketing Analyzes the needs of the identified target
market.
3. Marketing Researches the potential of the target market for
demand, sales, buying power and potential profit.
4. Marketing Creates a product or service intended to satisfy the
needs of the target market.
5. Marketing Distributes , prices, and promotes the product or
service to the target market.
6. Marketing Ensures satisfaction through after sales service.
Market Segmentation
Market Segmentation
Market Segmentation
“TheProcess of dividing a total market into
subgroups with similar characteristics”

“ The Division of a market into homogeneous

groups of consumers , each of which can be
expected to respond to a different marketing mix”
 Market Segmentation
Income

50,000-100,000 100,000-500,000 500,000-5,000,000

Toyota (recondition ) Toyota(brand new ) Lexus ,Prado
Steps of Segmentation
Step-1 : Identify the characteristics and needs of
the market.
Information needed:
1.Data on family income , geographic location.
2. Behavior patterns (Amounts of a specific product
consumed, Social status, Language )
3. Physical characteristics ( Age , Sex , Health )
4.Phychologic traits ( Personality , Hobbies )
5.Opinions of goods on the market
6.Degree of competition
Steps of Segmentation
Step-2 : Analyze the potential of the market.

1. Sales potential: Sufficient number of prospective buyers

2. Demand potential : Must have demands. Products such
as smoke alarms, antibiotic drugs are sold in response to
needs.
3.Buying power: Potential customers must have financial
capacity to purchase goods.
4. Profit potential : The segment will be profitable
Types of Segmentation :
Types of Segmentation :
1. Demographic Segmentation: It classifies the market
into like groups based on characteristics such as age, sex,
education , income and household size .
2. Geographic Segmentation: It identifies where the
consumer actually lives. Example : Dhaka , Chittagong ,
Rajshahi .
 3. Psychographic Segmentation :It identifies like groups
based on life-styles such as peoples activities, interests , and
opinions.
4. Benefit Segmentation : It focuses on the benefits
expected from a product or service. For example-Lux
soaps are of various fragrances as per the expectations of
the customers.
 Marketing Mix
Marketing mix is the combination of product , price, place ,
promotion .

A marketer works with product strategy , promotion strategy ,

price strategy, and distribution strategy. The effective
meshing of product, price , promotion and distribution
strategies to achieve success is known as the marketing mix.
Marketing Mix

Product

Target Market
Price
Place Segment

Promotion
 Elements in Marketing Mix
1. Product strategy : It extends beyond the physical item itself
to include decisions about brands, trademarks, packaging ,
new product development and the product life cycle .
2.Pricing strategy : It is concerned with establishing prices for
products that will return a profit.

3.Promotional strategy : It involves developing the correct

blend of the promotional mix elements-advertising , personal
selling, sales promotion and publicity.

4. Place : Place involves the distribution systems and channels

used to place the product in the customers hands.
 Product
A product consists of the basic physical offering
and an accompanying set of image and service
features that seek to satisfy needs.
Categories of product :
1. Consumer products : are goods intended for the
personal use of the consumers.( There are three
categories – convenience goods , shopping goods ,
specialty goods )

2. Industrial products : are the goods or services

purchased for the production of other goods and
services or to be used in the operation of the
business.
Product
Convenience goods : are products purchased with a minimum
of effort. These are purchased frequently.
Example : Milk, Newspaper.

Shopping goods: are items purchased after comparative

shopping based on quality, design , cost, and performance.
Example : Television, Clothes, Shoes

Specialty goods : are those products that buyers prefer

strongly because of their unique characteristics or image.
Example: Mercedes Benz car , Swiss watch.
Product Strategy
A strategy is a plan of action or policy in business. Product
strategy aims at distinguishing own product from all
others .

Product strategy has following two dimensions-

2. Use of brand
2. Use of packaging

Use of brands : “A brand is a name , symbol , design or a

combination of these that identifies the products or
services of a company”
Four Brand Identifications
1. A brand name is a letter , a word or a group of letters or
words used to identify the product.
Example : Lux , Toyota, Tata, Honda , Maruti
2. A brand mark is a symbol or design used to identify the
product and to distinguish it.
Example: :
3. A trade character is a brand mark that has a human
quality.
Example :
4. A trade mark is a brand name, brand mark, or a trade
character that has legal protection
Example :
Trade Character
Trade character can be people, animal, cartoon or any
object that represents a brand & are used to advertise the
product or service. The trade character gets associated
with the brand & plays an important role in brand
building.
A Brand Ambassador or Corporate Ambassador is a
person who is hired by an organization or company to
represent a brand in a positive light and by doing so help
to increase brand awareness and sales.
Advantages of Brand
1. Ease of reorganization

2. Projecting a message

3. Universal

4. Differentiation

5. Extra profit

Generic products : Products with no brands
Use of Packaging
“A design of wrappers or containers for a product” OBD-
page-376
But it is more than putting the product in a box, bottle or
wrapper.
The proper use of shape ,color and material is an element of
product strategy.
Product Life Cycle
“The course of a “product's” sales and
profitability over its life time” OBD-407

“The succession of phases including the

introduction, growth, maturity and decline of a
product in its market”
Product Life Cycle
Introduction
A new product starts in this stage sales and profits are
typically low during a products introductory stage.
The company may spend a great deal of money to inform
potential customers about the product and convince them
that it will satisfy their needs and wants.

Example: Nokia 1100

Test Marketing : “A business introduces a product in
strategic geographic locations, rather than every where, to
assess consumer response”
Growth
If purchasers are satisfied with the product , its
reputation will spread and it will enter the growth stage.
The product will become more widely available and
sales will increase
Maturity
After growth, competitors versions will then appear and
eventually the maturity stage will be reached, in which the
supply and demand are matched and sales stabilize.
The maturity stage is the longest period, characterized by
“intense competition”
Decline
After maturity stage , new products will be available in market
to satisfy additional needs. So the decline stage will be entered.
The important skill in this stage is to know when to leave the
market. The firm reforms their product line.

New Arrival

Decline of Sales of Nokia 1100

New Product Development
After the decline stage, the firms are to omit the product
from the product line. Otherwise, the product will not be
sold I the market as new products are available.
The firm is to innovate and lunch new product in the
market.
The firm can find new use of old products