Mktg 101 Primer
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Transcript of Mktg 101 Primer
7/27/2019 Mktg 101 Primer
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7/27/2019 Mktg 101 Primer
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What is marketing? Strategic perspective: Satisfying customer needs profitably
and better than competition
Tactical perspective: Ensuring right product in right place at
right time, at right price
Generic desire(+) or problemthat consumerseeks to solve
Need
Concrete formin which need isbeing shaped
Want
Want backed bybuying power
Demand
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What is marketing? The essence of marketing can be
summarized in three great principles. Thefirst identifies the purpose and task of
marketing, the second the competitivereality of marketing and third theprincipal means for achieving the first two.
7/27/2019 Mktg 101 Primer
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What is marketing?(1) . The Customer Value and Value Equation :
V=B/P Where;
V=ValueB= Perceived Benefits
P= Price
(Value is increased by increasing the numerator and/or reducing thedenominator)
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What is marketing?(2).Competitive or Differential Advantage :
The total offer must be more attractive thanthat of the competition in order to create a
competitive advantage.
(3).Focus or the Concentration of Attention :
The task of creating Customer Value at aCompetitive advantage.
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Marketing philosophies
Product
Selling
Production Marketing
Societal
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Marketing philosophies Production Concept
Consumers will favour those products that are widely
available and low in cost.
Therefore increase production and cut down costs.
And build profit through volume.
Produce
SellConsumers
Company
Produce more & more
Practically sells itself
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Marketing philosophies Product concept
Buyers admire well-made products and can appraise product qualityand performance
Consumers will favour those products that offer the most quality,performance, or innovative features.
Therefore, improve quality, performance and features to realize
increased sales and profits.
Produce
QualityProducts
SellConsumers
Practically sells itself,if
it gives most quality for
money
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Marketing philosophies Selling concept
Consumers have normal tendency to resist.
Making sales becomes primary function and consumer satisfactionsecondary
Consumers , if left alone , will not buy enough of company’sproducts.
Therefore, promote sales aggressively & build profit through quick
turnover.
Produce
Sell it Consumers
Aggressive selling &
promotion efforts
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Marketing philosophies Marketing Concept
“
LOVE THE CUSTOMER , NOT THE PRODUCT”
The key to achieving organizational goals consist in determining theneeds and wants of target markets and delivering the desiredsatisfactions more effectively and efficiently than competitors.
And build profit through customer satisfaction and loyalty.
Consumers
Produce it
Market it
Learn what they
want(MR)
Sell what they want(Satisfy
needs of customers)
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Marketing philosophies Societal Marketing Concept
It is Marketing Concept (+) Society’s well being.
Balancing of following three considerations whilesetting marketing policies :
Customer’s want satisfaction
Society’s well being
Company’s profits
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Marketing philosophies Societal Marketing Concept
It is Marketing Concept (+) Society’s well being.
Balancing of following three considerations whilesetting marketing policies :
Customer’s want satisfaction
Society’s well being
Company’s profits
7/27/2019 Mktg 101 Primer
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Marketing philosophiesStarting Point Focus Means Ends
Selling Concept
Factory Products Selling &Promoting
Profit throughsales volume
Marketing Concept
Target Market Customer Needs Coordinated
Marketing
Profit through
customersatisfaction
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SituationalAnalysis
MarketingObjectives
MarketingStrategy
MarketingTactics
MarketingImplement
-ation
Audit &Control
Situational Analysis
ExternalAnalysis:
Macro/microenvironment,
Porter’s 5 forces,
InternalAnalysis:
Analyze allfunctions, 5Mframework,
Portfolio analysis
Internal +ExternalAnalysis:
SWOTAnalysis
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SituationalAnalysis
MarketingObjectives
MarketingStrategy
MarketingTactics
MarketingImplement
-ation
Audit &Control
Situational Analysis
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)
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SituationalAnalysis
MarketingObjectives
MarketingStrategy
MarketingTactics
MarketingImplement
-ation
Audit &Control
Situational Analysis
Demographic
•Region
•Country
•Age
•Income
Economic
•GDP Growth
•Inflation
•Foreign Exchange Rate
Natural/Ecological
Technological
•Coffee at Home:Innovative coffee makershave simplified
consumption
•Technology Transfer forplantations
Political•Coffee Board of India
•Production Subsidies
•Export Subsidies
•Impending threat fromtea lobby
Cultural•Colonial Roots
•Coffee as stimulant
•Cultural icon in south
India
•Advent of coffee shopculture
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SituationalAnalysis
MarketingObjectives
MarketingStrategy
MarketingTactics
MarketingImplement
-ation
Audit &Control
Situational Analysis
Rivalryamongexisting
firms
Threat ofNew Entrants
Determinantsof buyerpower
Determinantsof supplierpower
Threat ofsubstituteproducts
Porter’s 5 Forces
Very limited threat of newentrants as the two playersare well established
The bargaining power is withthe buyers owing to the stiff
competition
In general the bargaining power of suppliers is limitedas most of the supply comesfrom developing nations
The threat of substitutes ismore as people are observedto switch to other hot drinks
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SituationalAnalysis
MarketingObjectives
MarketingStrategy
MarketingTactics
MarketingImplement
-ation
Audit &Control
Marketing Objectives
Specific Measurable Achievable Realistic Time-bound
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SituationalAnalysis
MarketingObjectives
MarketingStrategy
MarketingTactics
MarketingImplement
-ation
Audit &Control
Segmentation
Targeting
Positioning
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SituationalAnalysis
MarketingObjectives
MarketingStrategy
MarketingTactics
MarketingImplement
-ation
Audit &Control
Segmentation
Targeting
Positioning
Market segmentation is the process of dividing thetotal 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 serviceis used.
Different motives for buying .
Segmentation
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SituationalAnalysis
MarketingObjectives
MarketingStrategy
MarketingTactics
MarketingImplement
-ation
Audit &Control
Segmentation
Targeting
Positioning
Segmentation Segmentation
Parameter
Sample Segments
Geographic Continents: N America, Asia, Europe, Africa
Within India: North, west, south etc.
Demographic Age, gender, income, Cohort, household type
Psychographic VALs (Innovators, thinkers, achievers,experiencers, believers, strivers, makers and
survivors)
Benefits Convenience, economy, prestige
Geo-demographic Urban, established, sophisticated town houses,
affluent retirees
Loyalty Not loyal, somewhat loyal, completely loyal
Usage Rate Heavy, Moderate & Lower (Pareto’s Law 80/20
principle)
Occasions Festivals, Everyday shopping list, self
indulgence
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SituationalAnalysis
MarketingObjectives
MarketingStrategy
MarketingTactics
MarketingImplement
-ation
Audit &Control
Segmentation
Targeting
Positioning
Targeting
Targeting is the process of evaluating differentsegments and focussing on those which are mostlikely to yield the maximum benefits
SegmentAttractiven
essSubstantial
Accessible
Differentiable
Measurable
Actionable
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SituationalAnalysis
MarketingObjectives
MarketingStrategy
MarketingTactics
MarketingImplement
-ation
Audit &Control
Segmentation
Targeting
PositioningPositioning
Positioning refers to the consumer’s perception of theproduct and its benefits in relation to its competitors.The aim is to occupy a clear, distinct and desirablespace in the mind of the customer
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SituationalAnalysis
MarketingObjectives
MarketingStrategy
MarketingTactics
MarketingImplement
-ation
Audit &Control
Segmentation
Targeting
PositioningPositioning
Identify
• Identify possible differences and competitiveadvantages - 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 , ourbrand is concept that creates point of difference
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SituationalAnalysis
MarketingObjectives
MarketingStrategy
MarketingTactics
MarketingImplement
-ation
Audit &Control
Segmentation
Targeting
PositioningPositioning
B e n e f i t s
Price
MORE THE SAME LESS
M O R E
T H E S A M E
L E S S
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SituationalAnalysis
MarketingObjectives
MarketingStrategy
MarketingTactics
MarketingImplement
-ation
Audit &Control
PhysicalAttributes
Brand Quality
Top Down – Competition Based
Bottom Up – Cost Based
Rebates
Direct Channels– Salesforce,Company Showrooms, Distributors
Indirect Channel – Wholesellers A d v e r t i s i n g
P R
S a l e s
P r o m o t i o n s
C o n v e n t i o n s
S p o n s o r s h i p s
People
Personality BasedTrust
ProcessesProcess Based Trust
Physical EvidenceAmbience
P R O D U C T
P L A C E
P R I C E
P R O M O T I O N
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SituationalAnalysis
MarketingObjectives
MarketingStrategy
MarketingTactics
MarketingImplement
-ation
Audit &Control
Market ImplementationImplementing is the process that turns marketing plans into
marketing actions to accomplish strategic marketing objectives. An
important factor influencing Implementation is the departmental
organisation.
Functional organization
Geographic organization
Product management organization
Market or customer management
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SituationalAnalysis
MarketingObjectives
MarketingStrategy
MarketingTactics
MarketingImplement
-ation
Audit &Control
Measure and ControlAudit and Control involves constant monitoring during
implementation to ensure that the intended outcomes are
achieved.
•Monitor sales and profits againstprojections and annual plans
•Take corrective action as and whennecessary
Operating Control
•Ensure current strategies arematched to opportunities
• Periodically assess overallapproach to the marketplace
Strategic Control
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Product Life Cycle (PLC)
Product Development: New ideas/possible inventions Market analysis – is it wanted? Can it be produced at a profit? Who is it likely to
be aimed at?
Product Development and refinement
Test Marketing – possibly local/regional
Analysis of test marketing results and amendment of product/production process
Preparations for launch – publicity, marketing campaign
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Product Life Cycle (PLC)
Introduction/Launch: Advertising and promotion campaigns
Target campaign at specific audience?
Monitor initial sales
Maximise publicity
High cost/low sales
Length of time – type of product
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Product Life Cycle (PLC)
Growth: Increased consumer awareness
Sales rise
Revenues increase
Costs - fixed costs/variable costs, profits may be made
Monitor market – competitors reaction?
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Product Life Cycle (PLC)
Maturity:
Sales reach peak Cost of supporting the product declines Ratio of revenue to cost high Sales growth likely to be low Market share may be high Competition likely to be greater Price elasticity of demand? Monitor market – changes/amendments/new strategies?
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Product Life Cycle (PLC)
Decline and Withdrawal: Product outlives/outgrows its usefulness/value Fashions change
Technology changes
Sales decline
Cost of supporting starts to rise too far
Decision to withdraw may be dependent on availability of new products and
whether fashions/trends will come around again?
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Q & A
7/27/2019 Mktg 101 Primer
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AssignmentAnalyze a minimum of 5 advertisement campaigns of a Brand of yourchoice and deliver on the following:
1. Targeting and Positioning of each separate Campaign2. Competition Benchmarking3. Comment on the Coherence of the campaigns deployed
Expected Length: Maximum of 3 Pages
MESSAGE
LOCATION
ARCHETYPE
D e m o g r a p
h i c
P s y c h o g r a p
h i c
B e n e f i t
Advertisement
AnalysisFramework
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Contact
Deepak Srinivasan+91 [email protected]
Avishek Ray+91 9546187923