Chapter 2: Public Relations and Marketing

Marketing
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.
- Philip Kotler

Marketing is the process of planning and executing the conception,

pricing, promotion and distribution of ideas, goods and services to
create exchanges that satisfy individual and organizational objectives.
- American Marketing Association
Core marketing concepts
Needs, wants and demand
Needs:
• Basic human requirements
• State of deprivation
Maslow’s hierarchy of needs Self
actualization

Esteem/ ego

social

Security

Physiological
Needs, wants and demand
• Needs continued..
• Stated needs •Customer wants best camera, video player, Connectivty.

•He wants every thing he needs from a single product.

• Real needs

• Unstated needs •Convenience, stylish, durable

• 50mega pixel camera, multi format video player, free access to Netflix,
• Delight needs data saver, battery saver

• to be recognized among friends as stylish and lead the opinion

• Secret needs
Needs, wants and demand
Wants:
• Needs directed to a specific object.
• Customer needs a mobile with good quality camera, media player,
music player and wants a SAMSUNG S9.

Demand:
Wants backed by ability to pay and willingness to pay
Customer needs a mobile, wants Samsung S9 but doesn’t
have sufficient buying power and demands a OP5.
 Understanding Customers
At Gillette, it is a ritual that almost everyone gets involved in one way or another
with new-product development. Even people who do not participate directly in the
product design and development are likely pushed into service-testing prototypes.
Every working day at Gillette, 200 unshaven employees march to company's
manufacturing and research plant to evaluate razors for sharpness of blade,
smoothness of glide and ease of handling. When done, they enter their views and
judgments into a computer

At Disney World, at least once in his or her career, each manager spends a day touring
the park in a Mickey, Minnie, Goofy, or other character costume. Moreover, all Disney
World managers spend a week each year on the front line—taking tickets, selling
popcorn, or loading and unloading rides.
Value and satisfaction :
Value:
− Ratio of benefit and cost.

Benefit may be financial or emotional.

Cost may be monetary, time, emotional cost.
 Value may be increased by:
− Raising benefits
− Reducing costs
− Raising benefits and reducing costs
− Raising benefits by more than the raise in costs
− Lowering benefits by less than the reduction in costs.
Core marketing concepts
Satisfaction:
− Feeling of pleasure or disappointment resulting from comparing product’s perceived/
actual performance to his expectations.
− Satisfaction:
actual/ perceived performance = expected performance
− Dissatisfaction:
actual/ perceived performance<expected performance
− Delight:
actual / perceived performance > expected performance
Segmentiaiton

Dividing a market into distinct groups of buyers with different

needs, characteristics, or behavior who might require
separate products or marketing mixes.
- Philip Kotler

Targeting

Well defined set of customers whose needs the organization

plans to satisfy
- Philip Kotler
 Positioning
Act of designing the company’s offering and the image to occupy
distinctive place in the minds of target group.
• Attribute positioning
• Benefit positioning
• Use positioning
• User positioning
• Competitor positioning
• Product class positioning
• Value positioning
 The Marketing Mix:

Product mix Price mix

GOODS

Place mix Promotion mix Services

People mix Process mix

Physical facilities
Promotion Mix
Promotion mix consists of the specific blend of advertising, sales promotion,
public relations, personal selling & direct marketing tools that the company
uses to pursue its advertising & marketing objectives.

Promotion Mix

Personal Direct Public Sales

Advertising
Selling Mktg Relations Promotion
1) Advertising : is a paid communication.

- Any paid form of non-personal presentation & promotion

of ideas, goods or services by an identified sponsor.
- Uses various media for delivering messages.

2) Public Relations : is used to promote favourable relations.

- involves a variety of programs designed to promote and or

protect a company's’ image or its individual products.
- Building good corporate image, and handling or tackling
unfavorable rumors, stories & events.
May be Public Service Activities, Press Releases, Feature Articles, Publications, Exhibits &
Displays, Sponsorship of events
3) Sales Promotion : is a short term incentive to encourage purchase or
sale of a product or service.
- Itcreates stronger & quicker response.
- It supplements advertising & facilitates personal selling.
- It can be targeted at the consumers, middlemen & the sales force :
• Consumer Promotion : Prices offs, coupons, instant wins,
collect & win, premiums, sampling
• Channel Promotion : Free goods, discounts, gifts, contest
• Sales Force Promotion : Sales Contests, bonus,commissions
4) Personal Selling : is personal communication with customers
to persuade them to buy.

- Presentation done by the firm’s sales force for the purpose of

making sales & building customer relationships.
• Sales Presentation
• Trade Shows
• Incentive Programs
5) Direct Marketing : is direct connection with carefully targeted
consumers.

- It helps obtain both immediate response & cultivates lasting

customer relationships.
• Telephone
• Internet
• E-mail
• Helplines
• Social media
• Direct contact campaigns (test drives, activations)
PR Tools :

1. Press release
2. Press Conference
3. Interviews and articles/ stories
4. FAM trips/ orientation programs for media and other stakeholders
5. CSR
6. New policies, plans, values and missions
7. Events, sponsorships and exhibitions
8. Demo videos/ corporate videos
9. Rallies and outreach activities
10. Contests and schemes (non sales)
11. Connection campaigns and activities
12. Recognition and rewards
13. Trainings and workshops
14. Regular communication and inquiry handlings
15. Lobbying
16. Social media