Marketing Basics (1)

MarketingLESSON 101

What is marketing?The management process through

which goods and services move from concept stage to the hands of the customer. It includes the coordination of four elements called the 4 P's of marketing

Core Concepts of Marketing

Situational Analysis

Marketing Objectives

Marketing Strategy

Marketing Tactics

Needs, wantsdemands

Utility, Value &Satisfaction

Xchange, TransactionRelationships

Products




Marketing Strategy

Marketing Tactics

External Analysis:

Macro/micro environment, Porter’s 5

forces

Internal Analysis:

Analyze all functions,

5M framework,

Portfolio analysis

Internal + External Analysis:

SWOT Analysis




Marketing Strategy

Marketing Tactics


External environment analysis (PEST = Political-legal, Economic-demographic, Socio-

cultural, and Technological)

Micro environment analysis (Value Chain Analysis = Customers, Competitors, Suppliers & Distributors)

Industry or competitive analysis (Porter’s 5 Forces Analysis)




Marketing Strategy

Marketing Tactics


Rivalry among existing

firms

Threat of New

Entrants

buyer power

supplier power

Threat of

substitute

products

Porter’s 5 Forces

Very limited threat of new entrants as the two players are well established

The bargaining power is with the buyers owing to the stiff competition

In general the bargaining power of suppliers is limited as most of the supply comes from developing nations

The threat of substitutes is more as people are observed to switch to other hot drinks




Marketing Strategy

Marketing Tactics




Marketing Strategy

Marketing Tactics


Specific Measurable Achievable Realistic Time-bound




Marketing Strategy

Marketing Tactics

Segmentation

Targeting

Positioning




Marketing Strategy

Marketing Tactics

Segmentation

Targeting

Positioning

Market segmentation is the process of dividing the total market for a good or service into several smaller, internally homogeneous groups.

Segmentation is necessary because customers in a market have: Differences in buying habits Differences in the way the good

or service is used Different motives for buying

Segmentation




Marketing Strategy

Marketing Tactics

Segmentation

Targeting

Positioning

Segmentation Parameter

Sample Segments

Geographic Continents: N America, Asia, Europe, AfricaWithin India: North, west, south etc.

Demographic Age, gender, income, Cohort, household typePsychographic VALs (Innovators, thinkers, achievers,

experiencers, believers, strivers, makers and survivors)

Benefits Convenience, economy, prestigeGeo-demographic Urban, established, sophisticated town houses,

affluent retireesLoyalty Not loyal, somewhat loyal, completely loyalUsage Rate Heavy, Moderate & Lower (Pareto’s Law 80/20

principle)Occasions Festivals, Everyday shopping list, self

indulgence

Segmentation




Marketing Strategy

Marketing Tactics

Segmentation

Targeting

Positioning

Targeting

Targeting is the process of evaluating different segments and focussing on those which are most likely to yield the maximum benefits

Segment AttractivenessSubstantial

Accessible

Differentiable

Measurable

Actionable




Marketing Strategy

Marketing Tactics

Segmentation

Targeting

Positioning Positioning

Positioning refers to the consumer’s perception of the product and its benefits in relation to its competitors. The aim is to occupy a clear, distinct and desirable space in the mind of the customer




Marketing Strategy

Marketing Tactics

Segmentation

Targeting

Positioning Positioning

Identify

• Identify possible differences and competitive advantages - explore services, channels, people, image etc.

Chose

• How many differences to promote ?• Which differences to promote ? IDSCAP

Select • Select the right overall positioning strategy.

Develop• Develop a statement – To target segment, our

brand is concept that creates point of difference




Marketing Strategy

Marketing Tactics




Marketing Strategy

Marketing Tactics




Marketing Strategy

Marketing Tactics

Sample Positioning Statement Frameworks




Marketing Strategy

Marketing Tactics

Sample Positioning Statement

“Tide HE Turbo is the HE detergent that delivers more time and water saving, 6X

more cleaning power because only Tide HE Turbo has proprietary, quick-dissolving

Smart Suds™ technology that helps prevent HE Machines from running additional rinse

cycles”




Marketing Strategy

Marketing Tactics

Product Life Cycle

Innovation Adoption Model

ANSOFF MATRIX

Audit and Control

Audit and Control involves constant monitoring during implementation to ensure that the intended outcomes are achieved.

•Monitor sales and profits against projections and annual plans

•Take corrective action as and when necessary

Operating Control

•Ensure current strategies are matched to opportunities

• Periodically assess overall approach to the marketplace

Strategic Control

Marketing Basics (1)

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