66963241 Marketing Basics

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BASICS

ofMarketing



Define Marketing

• American Marketing Association: Marketing is the activity, set ofinstitutions, 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 offactory to the hands of the consumer

• It is a fascinating field involving decisions like knowing the needs ofthe consumer, how to communicate the benefits to the target

audience and reaching the product in the hands of the consumerand 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 MARKETING

STARTING POINT

MEANS

ENDS

PRODUCT

AGGRESSIVE SELLING

& PROMOTION

PROFITS THROUGH

SALES VOLUME

CUSTOMER NEEDS

SUPERFLUOUS SELLING

PROFITABILITY

THROUGH CUSTOMER

SATISFACTION



What can be sold

• Services

• Events

• Experiences

•

Persons• Places

• Properties

• Organizations

• Information

• Ideas



What is a SBU

• SBU – Strategic Business Unit

An SBU has three characteristics:

(1) It is a single business or collection of related businesses thatcan be planned separately from the rest of the company;

(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 factorsaffecting profit



4 Ps



4 Ps & 4 Cs

4 Ps

• Product• Place

• Price

• Promotion

4 Cs

• Customer Solution• Convenience

• Customer Cost

• Communication



7 Ps

• Applicable on to servicemarketing

• People: directly or indirectlyinvolved in the consumption of

a service

• Process: Procedure,mechanisms and flow ofactivities by which services areconsumed

• Physical Evidence: The abilityand environment in which theservice is delivered.

• Product

• Place

• Price

• Promotion

• People

• Process

• Physical Evidence



Selecting the Media



Low Customization HIgh

One

Way

Two

Way



• Single source of all these communication to bringconsistency in the communication.

• Integrated Marketing Communication

• Television Advertisement good for awareness but

not as powerful as Sales Promotion to generateAction.

• Cost per Thousand (CPM)

• Pass Along Readership



• Web as a medium cannot be ignored.

Hyper Impulsivity: Due to closer conjunction ofDesire, Transaction and Payment.

Event Marketing/Sponsorships

Cause Marketing



Unconventional Media

Novel

Media

Customerservice

Packaging

Events,

Trade shows

Sponsorships

POP

Advertising

specialties



• 6 M’s for Communication Planning: – Market – Mission

– Message

– Media

– Money

– Measurement



STP

• Segmentation – A market segment consists of a large identifiable group within a market,

with similar wants, purchasing power, geographical location, buyingattitudes, or buying habits

– Geographic, Demographic, Psychographic, Behavioral

– Niche Marketing: A niche is a more narrowly defined group, typically asmall market whose needs are not being well served.

• 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



The STDP Process

Identify marketswith unfulfilled

needs

Discoversegments on the

basis of consumercharacteristics

Analyse segmentpotential &

finalise segmentsto target

Differentiateproduct offering

from competitors

Create a

distinctivepositioning in the

minds ofconsumers



Segmentation

Massmarketing

Segmentmarketing



Product Life Cycle



BCG Matrix

• ?: A question mark requires a lot of cash; company is spending money on plant, equipment, and

personnel. Co has to think hard about whether to keep pouring money into this business.

•Stars: Market leaders in a high-growth market. It does not necessarily produce positive cash flow; thecompany must still spend to keep up with the high market growth and fight off competition.

• Cash cow: produces a lot of cash for the company (due to economies of scale and higher profit margins),

paying the company’s bills and supporting its other businesses

• Dogs: generate low profits or even losses



GE Investment Priority System

HOLD BUILD BUILD

Harvest HOLD BUILD

Harvest Harvest HOLD

Business Unit Position

I n d

u s t r y A t t r a c t i v e n e s s

Low Medium High

H i g h

M e d i u m

L o w



Threat of

Substitute

Products

Threat ofNew EntrantsThreat of New

Entrants

Rivalry Among Competing

Firms in Industry

Bargaining

Power of Buyers

Bargaining

Power of

Suppliers

Porter’s Five Forces

Model of Competition



Product Mix

• The product mix of an individual company can be described in terms of

width, length, depth, and consistency.

• Width: how many different categories (tbr, tp, personal care)

• Length (Line): total number of products

• Depth: how many variants of each product are offered(dry, oily, normal /

size / colours )

• Consistency: how closely related the various product lines are in end use,

production requirements, distribution channels, or some other way.



Product Mix

LineExtension

MultiBranding

Brand

Extension

New Brand

Development

Same Brand Name New Brand Name

Same Product

Category

New ProductCategory



Ansoff’s Model



Branding

• Brand: name, term, sign, symbol, 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 outcomesthat 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 referredto 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



Channel Partners/Intermediaries

• Merchants: wholesalers and retailers—buy, take title to, and resell the

merchandise.

• Agents: brokers, manufacturers’ representatives and sales agents—search

for customers and may negotiate on the producer’s behalf but do not taketitle to the goods

• Facilitators: transportation companies, independent warehouses, banks,

and advertising agencies—assist in the distribution process but neither

take title to goods nor negotiate purchases or sales



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, brand, product or idea

• Viral Marketing use pre-existing social networks to produce increases in

brand awareness or to achieve other marketing objectives (such asproduct sales) through self-replicating viral processes, analogous to the

spread of pathological and computer viruses. Viral promotions may take

the form of video clips, interactive Flash games, advergames, ebooks,

brandable software, images, or even text messages.

• Buzz Marketing is a viral marketing technique that attempts to make each

encounter with a consumer appear to be a unique, spontaneous personal

exchange of information



Misc

• Mind vs Shelf

• ATL

– Above the line is a type of advertising through media such as TV, cinema, radio,print, banners and search engines to promote brands. 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 ofadvertising to promote products, services, etc.

– Price promotion, Coupons, Gift with purchases, also gifts certificates, Competitions

and prizes, Money refunds, Frequent user/loyalty incentives, Point-of-sale displays,Events

• Horizontal vs Vertical Marketing



To Read

• Advertising / PR

• Market Research

• Direct Marketing

• Sales Promotions

• Rural Marketing

• CRM



Q&A

There's more than one answer to

these questions…

66963241 Marketing Basics

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