You are on page 1of 34

BASICS of Marketing

Define Marketing
• American Marketing Association: 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 makes the journey of a product from its birthplace of factory to the hands of the consumer • It is a fascinating field involving decisions like knowing the needs of the consumer, how to communicate the benefits to the target audience and reaching the product in the hands of the consumer and then ensuring that the consumer comes back for more • B2B, B2C

Marketing vs Sales
• Selling is the act of persuading or influencing a customer to buy (actually exchange something of value for) a product or service • The selling concept, instead of focusing on meeting consumer demand, tries to make consumer demand match the products it has produced

• Sales takes the awareness marketing has created and sells to the people who now know not only about the product, but now want it

SELLING V/S MARKETING SELLING STARTING POINT PRODUCT MARKETING CUSTOMER NEEDS MEANS AGGRESSIVE SELLING & PROMOTION SUPERFLUOUS SELLING ENDS PROFITS THROUGH SALES VOLUME PROFITABILITY THROUGH CUSTOMER SATISFACTION .

What can be sold • • • • • • • • • Services Events Experiences Persons Places Properties Organizations Information Ideas .

(2) it has its own set of competitors. and (3) it has a manager responsible for strategic planning and profit performance who controls most of the factors affecting profit .What is a SBU • SBU – Strategic Business Unit An SBU has three characteristics: (1) It is a single business or collection of related businesses that can be planned separately from the rest of the company.

4 Ps .

4 Ps & 4 Cs 4 Ps • Product • Place • Price • Promotion 4 Cs • Customer Solution • Convenience • Customer Cost • Communication .

7 Ps • Product • Applicable on to service marketing • People: directly or indirectly involved in the consumption of a service • Process: Procedure. mechanisms and flow of activities by which services are consumed • Physical Evidence: The ability and environment in which the service is delivered. • Place • Price • Promotion • People • Process • Physical Evidence .

Selecting the Media .

One Way Two Way Low Customization HIgh .

• Cost per Thousand (CPM) • Pass Along Readership . • Integrated Marketing Communication • Television Advertisement good for awareness but not as powerful as Sales Promotion to generate Action.• Single source of all these communication to bring consistency in the communication.

Event Marketing/Sponsorships Cause Marketing   .  Hyper Impulsivity: Due to closer conjunction of Desire. Transaction and Payment.• Web as a medium cannot be ignored.

Unconventional Media Packaging Customer service POP Novel Media Events. Trade shows Advertising specialties Sponsorships .

• 6 M’s for Communication Planning: – Market – Mission – Message – Media – Money – Measurement .

typically a small market whose needs are not being well served. Behavioral – Niche Marketing: A niche is a more narrowly defined group. with similar wants. or buying habits – Geographic. Demographic. purchasing power. buying attitudes.STP • Segmentation – A market segment consists of a large identifiable group within a market. Psychographic. • Target Market – Marketers evaluate each segment to determine how many and which ones to target and enter • Positioning – Positioning is the act of designing the company’s offering and image to occupy a distinctive place in the target market’s mind . geographical location.

The STDP Process Identify markets with unfulfilled needs Discover segments on the basis of consumer characteristics Analyse segment potential & finalise segments to target Create a distinctive positioning in the minds of consumers Differentiate product offering from competitors .

Segmentation Mass marketing Segment marketing .

Product Life Cycle .

the company must still spend to keep up with the high market growth and fight off competition. equipment. Stars: Market leaders in a high-growth market. Cash cow: produces a lot of cash for the company (due to economies of scale and higher profit margins). It does not necessarily produce positive cash flow. and personnel. company is spending money on plant.BCG Matrix • ?: A question mark requires a lot of cash. Co has to think hard about whether to keep pouring money into this business. paying the company’s bills and supporting its other businesses Dogs: generate low profits or even losses • • • .

GE Investment Priority System Business Unit Position Low HOLD Medium High High Low Medium BUILD BUILD Harvest HOLD BUILD Harvest Harvest HOLD Industry Attractiveness .

Porter’s Five Forces Model of Competition Threat of Threat of New New Entrants Entrants Bargaining Power of Suppliers Rivalry Among Competing Firms in Industry Bargaining Power of Buyers Threat of Substitute Products .

. and consistency. distribution channels.Product Mix • The product mix of an individual company can be described in terms of width. normal / size / colours ) • Consistency: how closely related the various product lines are in end use. length. • Width: how many different categories (tbr. depth. tp. or some other way. oily. personal care) • Length (Line): total number of products • Depth: how many variants of each product are offered(dry. production requirements.

Product Mix Same Brand Name New Brand Name Same Product Category Line Extension Multi Branding New Product Category Brand Extension New Brand Development .

Ansoff’s Model .

symbol.Branding • Brand: name. term. sign. or design. or a combination of these. intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors • Brand Equity: Brand equity refers to the marketing effects or outcomes that accrue to a product with its brand name compared with those that would accrue if the same product did not have the brand name • The brand can add significant value when it is well recognized and has positive associations in the mind of the consumer. This concept is referred to as brand equity .

Brand Strategy • Line extensions: existing brand name extended to new sizes or flavours in the existing product category • Brand extensions: brand names extended to new product categories • Multibrands/Flanker Brands: new brand names introduced in the same product category • New brands: new brand name for a new category product • Co-brands: brands bearing two or more well-known brand names .

Distribution .

manufacturers’ representatives and sales agents—search for customers and may negotiate on the producer’s behalf but do not take title to the goods • Facilitators: transportation companies. and resell the merchandise. banks. and advertising agencies—assist in the distribution process but neither take title to goods nor negotiate purchases or sales . • Agents: brokers. take title to. independent warehouses.Channel Partners/Intermediaries • Merchants: wholesalers and retailers—buy.

Push vs Pull • A “pull” selling strategy is one that requires high spending on advertising and consumer promotion to build up consumer demand for a product • A “push” promotional strategy makes use of a company's sales force and trade promotion activities to create consumer demand for a product • In Push strategy the products has to be promoted by Producer to Wholesalers to Retailers to Consumer .

Experiential/Buzz/Viral • Experiential Marketing is the art of creating an experience where the result is an emotional connection to a person. ebooks. product or idea • Viral Marketing use pre-existing social networks to produce increases in brand awareness or to achieve other marketing objectives (such as product sales) through self-replicating viral processes. images. advergames. brand. or even text messages. analogous to the spread of pathological and computer viruses. interactive Flash games. Viral promotions may take the form of video clips. spontaneous personal exchange of information . • Buzz Marketing is a viral marketing technique that attempts to make each encounter with a consumer appear to be a unique. brandable software.

etc. print. cinema. Competitions and prizes. Events • Horizontal vs Vertical Marketing .Misc • • Mind vs Shelf ATL – Above the line is a type of advertising through media such as TV. Coupons. services. – Price promotion. Money refunds. radio. also gifts certificates. banners and search engines to promote brands. Point-of-sale displays. Gift with purchases. Frequent user/loyalty incentives. This type of communication is conventional in nature and is considered impersonal to customers • BTL – Below the Line uses less conventional methods than the usual specific channels of advertising to promote products.

To Read • Advertising / PR • Market Research • Direct Marketing • Sales Promotions • Rural Marketing • CRM .

Q&A There's more than one answer to these questions…  .

°  .f  . f .¯¯°nf° 9f°°°– .¾¾° . f¾ ¯ ° . ¾¾f– .

@9 W  –¯ °f°  ¯f  ¾ –¯ ° n°¾¾¾ € f f–  °€f  –½ ° f ¯f   ¾¯f f°¾ ½nf¾°– ½  – –f½nf nf° °– f ¾  °– f ¾  –f½n  ¯–f½n 9¾n–f½n ff -n .f °–  °n ¾ f ¯ °f .

f  .° –½ ½nf f ¾¯f ¯f  ¾ ° ¾ f ° °–   ¾  W @f–  .f  ¾ ff fn ¾ –¯ °   ¯°  ¯f° f° n ° ¾  f–  f° °  W 9¾°°– 9¾°°– ¾  fn € ¾–°°–  n¯½f°#¾ €€ °– f° ¯f–  nn½ f ¾°n ½fn °  f–  ¯f #¾ ¯° .

@ @99n ¾¾  °€¯f ¾ °€€  ° ¾ ¾n  ¾ –¯ °¾ °  f¾¾€n°¾¯  nffn ¾n¾ °f¾ ¾ –¯ ° ½ °f  €°f¾ ¾ –¯ °¾ f–  .

 f f ¾°n  ½¾°°–°  ¯° ¾€ n°¾¯ ¾ €€  °f  ½ n€€ °– €¯n¯½ ¾ .

 –¯ °f° .f¾¾ ¯f °–  –¯ ° ¯f °– .