Unit 1 Introduction to Marketing

1. Unit 1Introduction to Marketing

2. Marketing….. defined • The Chartered Institute of Marketing define marketing as 'The management process responsible for identifying , anticipating and satisfying customer requirements profitably'

3. Marketing….. defined • Philip Kotler defines marketing as 'satisfying needs and wants through an exchange process'

4. Marketing….. defined • P.Tailor of suggests that 'Marketing is not only about providing products or services it is essentially about providing changing benefits to the changing needs and demands of the customer

5. Marketing….. defined • Several experts argue that Marketing is the management process responsible for identifying, anticipating and satisfying customers’ requirements profitably

6. What is Marketing? • Marketing is all about – • Identifying the need of the customer and developing product accordingly • Spreading awareness /creation of need • Building relationships with the customers • Ensuring maximum customer satisfaction

7. The Extended Marketing Mix • Product • Price • Place • Promotion • People • Process • Physical evidence

8. Marketing mix Product • Product development • Product management • Product features and benefits • Branding • Packaging • After-sales services

9. Marketing mix Price • Costs • Profitability • Value for money • Competitiveness • Incentives • Quality • Status

10. Marketing mix Place • Target market • Channel structure • Channel management • Logistics management

11. Marketing mix Promotion • Developing promotional mixes • Advertising management • Sales promotion • Sales management • Public relations • Direct marketing

12. Marketing mix People • Staff capability • Efficiency • Availability • Effectiveness • Customer interaction • Internal marketing • External marketing

13. Marketing mix Process • Order processing • Database management • Service delivery • Queuing system • Standardisation

14. Marketing mix Physical evidence • Environment - Furnishing - Color - Layout - Noise level

15. Marketing Concepts and Orientations

16. The Production Concept • This concept holds the notion that a customer will prefer a product that is easily available and affordable. • The main task that has to be performed by the marketing manager is to see that the production is done a mass scale and the goods are available easily.

17. Product Concept • The product concept holds the notion that a customer will prefer those products that are of supreme quality. Therefore, the main task of any marketing manager is improve the quality of the product at every stage of production process. • Under this concept, the companies are so focused in improving the quality of their products that they don’t pay attention on what the customer needs.

18. Product Concept • An excess focus on the product and not on the customers leads to “Marketing Myopia” amongst the companies. • Marketing Myopia is dangerous because it does not allows the companies to explore more effective and efficient ways of serving the customers needs.

19. Selling Concept • Many organizations follow the selling concept, which holds that consumers will not buy enough of the organization's products unless it undertakes a large scale selling and promotion effort. • Their aim is to sell what they make rather than make what the market wants. Such an effort carriers high risks

20. Selling Concept • It focuses on creating sales transactions rather than on building long-term, profitable relationships with customers. • It assumes that customers who are convinced to buy a product will like it. Or if they don't like it, they will possibly forget disappointment and buy it again later.

21. Marketing Concept • Under this concept, the customer needs are discovered and all the efforts are devoted to satisfy the need of the customers. • A company practicing this concept achieves the corporate objectives by meeting the customer needs in an efficient way than its competitors. • All the initiatives are taken to provide customer satisfaction and establish a long term relationship with the customers.

22. Societal Marketing Concept • The societal marketing concept is an enlightened marketing concept that holds that a company should make good marketing decisions by considering consumers' wants, the company's requirements, and society's long-term interests. It is closely linked with the principles of corporate social responsibility.

23. Societal Marketing Concept • Most companies recognize that socially responsible activities improve their image among customers, stockholders, the financial community, and other relevant publics. Ethical and socially responsible practices are simply good business, resulting not only in favorable image, but ultimately in increased sales.

24. Unit 2

25. MARKETING ENVIRONMENT

26. Marketing Environment • All the surroundings that can affect the working of an organization comprises of the marketing environment. • There are two key perspectives on the marketing environment, namely the 'internal environment‘ and the external environment

27. Internal Environment • All factors that are internal to the organization are known as the 'internal environment'. They are generally audited by applying the 'Five Ms' which are Men, Money, Machinery, Materials and Markets. The internal environment is as important for managing change in an organization. The internal factors are, more or less, under the control of the management.

28. External Environment • All those factors that are outside the organization and are ,more or less, uncontrollable for the management are known as external environmental factors. For example Political, economic, social and technological factors belongs to the external environment. • The external environment can be audited in more detail using other approaches such as SWOT Analysis and PEST Analysis.

29. PEST Analysis • Political factors • Economic factors • Social factors • Technological factors

30. Market Segmentation • Market segmentation is the identification of portions of the market that are different from one another. Segmentation allows the firm to better satisfy the needs of its potential customers. • The marketing concept calls for understanding customers and satisfying their needs better than the competition. Therefore, for different customer, the concept of segmentation helps in understanding the needs.

31. Basis for segmentation 1) Geographic Segmentation • The following are some examples of geographic variables often used in segmentation. • Region: by continent, country, state, or even neighborhood • Size of metropolitan area: segmented according to size of population • Population density: often classified as urban, suburban, or rural

32. Basis for segmentation 2) Demographic Segmentation Some demographic segmentation variables include: • Age • Gender • Income • Occupation • Education • Religion

33. Basis for segmentation 3) Psychographic Segmentation Psychographic segmentation can be done on the basis of AIO- • Attitude • Interests • Opinions

34. Basis for segmentation 4) Behavioralistic Segmentation Behavioral segmentation is based on actual customer behavior toward products. It include: • Benefits sought • Usage rate • Brand loyalty • User status: potential, first-time, regular, etc. • Occasions: holidays and events that stimulate purchases

35. Targeting • After the market has been separated into its segments, the marketer will select a segment or series of segments and 'target' them. • The first is the single segment with a single product. In other word, the marketer targets a single product offering at a single segment in a market with many segments. For example, British Airway's Concorde is a high value product aimed specifically at business people and tourists willing to pay more for speed.

36. Targeting • Secondly the marketer could ignore the differences in the segments, and choose to aim a single product at all segments i.e. the whole market. This is typical in 'mass marketing'. An example of this is the approach taken by budget airlines such as Go. • Finally there is a multi-segment approach. Here a marketer will target a variety of different segments with a series of differentiated products. This is typical in the motor industry

37. Positioning • Positioning has come to mean the process by which marketers try to create an image or identity in the minds of their target market for its product, brand, or organization. • Positioning is all about 'perception'. As perception differs from person to person, so do the results of the positioning. For example, what you perceive as quality, value for money, etc, is different to my perception. However, there might be similarities as well.

38. Positioning Brand Positioning - Brand Positioning can be defined as an activity of creating a brand offer in such a manner that it occupies a distinctive place and value in the target customer’s mind According to Scott Davis, a company should change its positioning in every 3 – 5 years For example – - Kotak Mahindra – “Think investment, think Kotak” - Wal-Mart - “Always low prices, Always….” - Big Bazaar - “Isse sasta aur acha aur kahin nahin” - Tata - ”Improving the quality of life”

39. Positioning of Liril Liril was positioned on the freshness platform right from its birth. The girl and the waterfall with the unique jingle ensured that the freshness is experienced by the audience. Liril can be called as an experiential brand and the communication perfectly supported that. Liril did not change its positioning for 25 years although the models changed, the brand communication was consistent.

40. Positioning of Dominos • Dominos Pizza have positioned them selves in the minds of the consumers as “fast home delivery of pizza under 30 minutes”. Because of this “Pizza Hut” has become the place to go and eat pizza but “Dominos” is what you think of when you think home delivery of pizza. This is what positioning is all about. Finding a place in the customers head.

41. Positioning Strategies • POSITIONING BY PRODUCT ATTRIBUTES AND BENEFITS • Ariel that offers a specific benefit of cleaning even the dirtiest of clothes because of the micro cleaning system in the product. • Colgate offers benefits of preventing cavity and fresh breath. • Maruti Suzuki offers benefits of maximum fuel efficiency and safety over its competitors.

42. Positioning Strategies • POSITIONING BY PRICE/ QUALITY • Parle Bisleri – “Bada Bisleri, same price” • Vishal Megamart – value retailer • Wal-Mart – “Always low prices, always”

43. Positioning Strategies • POSITIONING BY COMPETITOR • Onida was positioned against the giants in the television industry through this strategy, ONIDA colour TV was launched with the message that all others were clones and only Onida was the leader. “neighbor's Envy, Owners Pride”. • Rin V/S Tide controversy

44. Repositioning a Brand Brand Repositioning is changing the positioning of a brand. A particular positioning statement may not work with a brand. Re-positioning involves changing the identity of a product, relative to the identity of competing products, in the collective minds of the target market.

45. Repositioning a Brand For instance, Dettol toilet soap was positioned as a beauty soap initially. This was not in line with its core values. Dettol, the parent brand (anti-septic liquid) was known for its ability to heal cuts and gashes. The extension's 'beauty' positioning was not in tune with the parent’s “germ-kill” positioning. The soap, therefore, had to be repositioned as a “germ-kill” soap (“bath for grimy occasions'') and it fared extremely well after repositioning. Here, the soap had to be repositioned for image mismatch. There are several other reasons for repositioning. Often falling or stagnant sales is responsible for repositioning exercises. 

46. Repositioning a Brand • Maharaja - the positioning: • Dishwasher in its initial Stages was possibly seen as an exotic product. Thus, Maharaja positioned it as a product aimed at the upper crust. Thus, the positioning statement was “your guests get Swiss cheese, Italian Pizza ...... you get stained glassware.'' • But Indians are reluctant to use dishwashers because of deeply embedded cultural reasons. Thus, the message had to be changed to appeal to the Indian housewife. Thus the positioning was changed to “Bye, Bye KantaBai'' indicating that the dishwasher signaled the end of the servant maid's tyranny. The brand, therefore, was repositioned from a sophisticated, aristocratic product to one that is functional and relevant to the Indian housewife.

47. Consumer Behavior

48. Consumer Buying Behavior Consumer behavior is about how individual make decisions to spread their time, money and effort on consumption related decisions. • “How do consumers respond to marketing efforts the company might use?”

49. Need Recognition Information Search Evaluation of Alternatives The Buyer Decision Process Purchase Decision Postpurchase Behavior

50. The Buyer Decision ProcessStep 1. Need Recognition Need Recognition Difference between an actual state and a desired state • Internal Stimuli • Hunger • Thirst • A person’s normal • needs • External Stimuli • TV advertising • Magazine ad • Radio slogan • Stimuli in the • environment