Marketing

A social and managerial process by which

individual and groups achieve what they
need and want through exchange process.

( need , want and demand ???)

What can be marketed !
Many Things Can Be Marketed!
 What is Marketing?

Many Things Can Be Marketed!

• Goods • Places
• Services • Properties
• Experiences • Organizations
• Events • Information
• Persons • Ideas
 Market
Set of actual and potential Buyers (M/A/N)

– Consumer markets
– Business markets
– Global markets
– Non profit markets
– Governmental markets
– METAMARKET ( complementary products and services that are
closely related in the minds of the consumers but are spread across a
diverse set of industries) e.g automobile metamarket or housing ?
 Difference between business markets and consumer markets due
To The Nature Of Purchases

• Organizational consumers purchase capital equipment, raw

materials, semifinished goods, and other products for use in further
production or operations or for resale to others, whereas final
consumers usually acquire the finished items for personal, family, or
household use.
•
Organizational consumers are likely to require exact product
specifications. Final consumers more often buy on the basis of
description, style, and color.
•
Organizational consumers often use multiple-buying responsibility,
in which two or more employees formally participate in complex or
expensive purchase decisions. Final consumers employ it less
frequently and less formally.
 Difference between business markets and consumer markets on
the basis of demand
• Derived demand occurs for organizational consumers because the
quantity of items they purchase is often based on the anticipated
demand of their final consumers for specific finished goods and
services; therefore, organizational consumers are less sensitive to
price changes. As long as final consumers are willing to pay higher
prices, organizational consumers will not object to price increases.

• There are fewer organizational consumers than final consumers.

• Business market consumers tend to be geographically

concentrated.

• Buying specialists are often used.

• Distribution channels are shorter.

 Key marketing functions
1. Strengthening the brands
2. Measuring marketing effectiveness
3. Driving new product development based
on customer needs
4. Gathering meaningful customer insights
5. Utilizing new marketing technology
• Marketing focuses on the satisfaction of customer
needs, wants and requirements.
• The philosophy of marketing needs to be owned by
everyone from within the organization.
• Future needs have to be identified and anticipated.
• There is normally a focus upon profitability,
especially in the corporate sector. However, as
public sector organizations and not-for-profit
organizations adopt the concept of marketing, this
need not always be the case.
• More recent definitions recognize the influence of
marketing upon society
 The Marketing Process

Key Elements
• Analyzing marketing
opportunities
• Selecting target markets
• Developing the marketing mix
• Managing the marketing effort
 Analyzing marketing
opportunities
• Business Environment
• Organization mission , strategy and vision
• Core competencies and capabilities
• Intellect and wisdom
• Intuition , hunch and gut feeling…..
Selecting target markets

CONCEPT
OF
TARGET MARKETING

– MARKET SEGMENTATION
– MARKET TARGETING
– MARKET POSITIONING
 Target marketing- Concept and
definition
• The concept of market segment is based
on the fact that the market of commodities
are not homogeneous but they are
heterogeneous.
• Market represent a group of customer
having common characteristics but two
customer are never common in their
nature, habits, hobbies income and
purchasing techniques.
• Market Segmentation:
– Dividing a market into distinct groups with
distinct needs, characteristics, or
behavior who might require separate
products or marketing mixes.
 Market Segmentation
Geographic Segmentation
Variables
• World Region • Neighborhood
or Country • City or
• Region Metro Size
• State • Density????
• City • Climate
 Market Segmentation

Demographic Segmentation Variables

• Age • Occupation
• Gender • Education
• Family size • Religion
• Family life cycle • Race
• Income • Generation

• Nationality
• ( consumer vs.
customer ???)
 Market Segmentation

Behavioral Segmentation
Variables
• Occasions • Usage Rates
• Benefits
• User Status • Readiness Stage

• Attitude Toward the Product

• Readiness Stage : The stages consumers
normally pass through on their way to
purchase :
Awareness---- Knowledge----Liking------
Preference-----Conviction-----Purchase.
 Market Segmentation

Psychographic Segmentation
Variables
• Social Class
• Lifestyle ( AIO)
• Personality
 The requirements for successful
segmentation are:

• homogeneity within the segment

• heterogeneity between segments

• segments are measurable and identifiable

• segments are accessible and actionable

• segment is large enough to be profitable

These criteria can be summarized by the word DAMAS:

D Differential: it must respond differently to a different marketing mix
A Actionable: you must have a product for this segment to be accured
M Measurable: size and purchasing power can be measured
A Accessible: it must be possible to reach it efficiently
S Substantial: the segment has to be large and profitable enough
 STP: Market Target

• Evaluating Market Segments

– Segment size and growth
– Segment structural attractiveness
• Level of competition
• Substitute products
• Power of buyers
• Powerful suppliers
– Company objectives and resources
• Strategies
– Undifferentiated (mass) marketing
– Differentiated (segmented) marketing
– Concentrated (niche) marketing
– Micromarketing (local or individual)
marketing
• Choosing a Market Targeting Strategy
Requires Consideration of:

– Company resources
– The degree of product variability
– Product’s life-cycle stage
– Market/segments variability
– Competitors’ marketing strategies
 Positioning
• Positioning:
– The place the product occupies in consumers’
minds relative to competing products.
– Typically defined by consumers on the basis of
important attributes.
• Al Ries and Jack Trout in their bestseller book “Positioning – a battle
for your mind’ .According to them ‘Positioning is what you do to mind
of the prospect’.
 Positioning

• Choosing a Positioning Strategy:

– Identifying possible competitive advantages
• Products, services, channels, people or image can be
sources of differentiation.
– Choosing the right competitive advantage
• How many differences to promote?
– Unique selling proposition
– Positioning errors to avoid
( Underpositioning, Overpositioning, Confused positioning )
• Which differences to promote?
 USP
• Service and ambience are the USPs of Cafe Coffee
Day or Barista
• Bajaj offered good mileage and durability in the
scooters category as its differentiation
• Symbolic appeals (symbolizing status or
emotions) can be found in several product
categories in today's context.
– Louis Philippe in ready-made shirts, Scorpio [from
Mahindra & Mahindra (M&M)] in passenger cars, Caliber in
motorcycles, and Fair & Lovely in fairness creams
(confidence as the brand's proposition) are some examples
 Which differences to promote
• Important
• Distinctive
• Superior
• Communicate
• Preemptive
• Affordable
• Profitable
 The Marketing Process

Key Elements
• Analyzing marketing opportunities
• Selecting target markets
• Developing the marketing
mix
• Managing the marketing effort
 The Marketing Mix

• The set of • Consists of the 4

controllable, P’s
tactical marketing 1. Product
tools that the firm 2. Price
blends to 3. Place
produce the 4. Promotion
response it wants 5. Addl. P’s
in the target
market.
The 4 P’s of the Marketing Mix
 Modes of Marketing Communications

• Advertising • Direct marketing

• Sales promotion • Interactive marketing
• Events and • Word-of-mouth
experiences marketing
• Public relations and • Personal selling
publicity
.
 The Marketing Process

Key Elements
• Analyzing marketing opportunities
• Selecting target markets
• Developing the marketing mix
• Managing the marketing
effort
 Managing the Marketing Effort
Strategic Tactical
 Elements of Marketing Plan
• Product details
• Target segments
• Pricing strategy
• Distribution strategy (channel management and logistics management )
• Promotion strategy
• Sales forecasts