Upgrad (Module 1)
Fundamentals of marketing:
Marketing is a much broader term, with advertising and selling as its sub-functions.
Key activities involved in marketing: 1. Creating offers 2. Communicating 3. Delivering
Scope of Marketing: 1. Goods & Services, 2. Events & Experiences 3. People, Organizations & Places
4. Ideas & benefits
Objectives of marketing: 1. Helps define purpose of an organization 2. Helps create awareness for it
products & Services 3.
Marketing can help zero in on a convenient place for its customers to access its products 4.
Marketing helps establish reputation and brand image 5. Marketing helps build a long-
term relationship with customers
Functions of marketing (Example: McDonalds): 1. Market research 2. Market Planning (Menu-
Indian food) 3. Branding (Donald the clown) 4. Promotion ("Im lovin' it" ad campaigns) 5. Customer
Support Service (emails and toll-free numbers)
Segmentation, Targeting and Positioning (STP)
Segmentation: Dividing a diverse market into several smaller similar sub-markets.
Basis of Market Segmentation:
1. Geography (Eg. McDonalds) 2. Demographic (Eg. Pepper Fry) 3. Psychographic (Harvey Davidson-
personality traits) 4. Behavioral - behavioral change, benefits (Freecharge)
Mixed Segmentation Example -
Gillette
Targeting: Types of targeting strategies: 1. Mass marketing strategy 2. Differentiated Strategy
(caters to different segments with different products) (Hyundai) 3. Concentrated Strategy
(Mercedes Benz)
Best segments for you to target will be based on 3C's - Customers, Competition, Company
Positioning: Perceptual Map
Segmenting is dividing the large part of the potential target audience into smaller brackets or
segments. Targeting is selecting the right segments for a product. And positioning is to place the
products in the right places so that the targeted users can view them and buy them.
Means by which marketing managers achieve their positioning strategy is by the 4 P's (Product,
Price, Place and Promotion):
Product: Brand name, design, features, warranty
Price: Based on 1. Customer's perceived value 2. Prices of competitors 3. Revenue Generation cost
Place: Should be convenient for customers 2. Should give the right info at the right time 3. Can be a
physical store or any online marketplace etc.
Promotions: 1. Advertising 2. PR 3. Sales Promotions 4. Direct marketing (emails, text messages), 5.
Direct Selling
3 more P's have been added - People (Staff), Process (Buying Process) and Physical Evidence
(Tangible elements Eg. Ambience, music and menu at a restaurant)
BRANDING:
Elements of a strong brand: 1. Brand awareness 2. Brand Image
Brand Equity:
What brand equity means - 1. Brand perception 2. Commercial Value
Elements of Brand equity: 1. Brand awareness (Amazon build brand awareness during IPL) 2.
Brand association (What the brand associates itself with) (Amazon's articulation: apni dukaan) 3.
Perceived Quality: (customer's perception of the overall quality of the brand) Amazon realized that
online sales was not easy in the Indian market and hence built their perceived quality saying "we
sell 100% original products" 4. Brand Loyalty (Repeated Purchases) (Amazon Prime: Free one day
shipping, Amazon Prime Video: all this makes you feel exclusive) 5. Proprietary Brand assets
(Example: anything which gives a company a competitive advantage over other companies: Brand
Patents) (One click shopping by Amazon)
Models of Branding:
1. Rational Branding (Product attributes/functions) Maggie: "Fast to cook, good to eat"
2. Emotional Branding (Connect with its potential customers on an emotional level) Surf: "Daag acche
hai"
3. Cultural Branding - Bajaj V (Made out of the metal of INS Vikrant), Nike Da Da Ding Ad shows
women empowerment in sports which is a shift of stereotype cultural conventions in India.
Competitive Environment in Business:
Porter's 5 Forces Model (To evaluate industry competitiveness)
1. Threat of Entry (Amazon always has threat of new entrants in the e-commerce market, hence it
has created high entry barriers)
2. Buyer Power (Main buyer of coal produced in India are thermal power plants. If coal producers
unnecessarily increase price of coal, then thermal power plants can easily import coal from foreign
countries) there are many online travel portals so customers have buyer power as they can switch
from one to another.
3. Supplier Power (You will want less supplier power) Indian Railways has a monopoly and can deal
with online portals and end up pushing for lower commission rates.
4. Threat of Substitute (Airlines acts as a substitute for travel agents) (Airbnb became a substitute
to online travel portals selling hotels)
5. Competitive Rivalry (Facebook has competition from twitter)
Drivers of Consumer Behavior:
Motivation comes due to a need gap or some emotion.
Types of motivation: 1. Extrinsic (motivation driven by external factors) 2. Intrinsic (motivation
driven by self)
Drive Reduction Theory (Need Gap theory):
Need Gap is the diff between current state and desired state
Maslow's Hierarchy of Needs (comprises a 5-layer model of human needs)
Physiological needs (basic needs for survival like food, water and clothing)
Safety and Security (the need for stability and safety) (LIC logo: Protection of life)
Social needs (the need to belong, need to love, need for affection, need for friendship, need for
sexual intimacy)
Esteem Needs (sense of self-worth)
Self- actualization (person tries to actualize himself only after all his other needs have been
fulfilled)
Structural Characteristics of Maslow's Hierarchy of Needs:
1. Needs are satisfied from bottom to top
2. Number of consumers at lower level of pyramid is greater
3. As age increases, consumers move from lower level needs to higher level needs
Emotions: Emotion led consumer behavior has less control.
Categorization of emotions:
Plutchik flower of emotions
According to Plutchik, there are eight basic emotions that are shared by every human. These
emotions are joy, anticipation, anger, disgust, sadness, surprise, fear and trust. Rest all other
emotions as theorized by Plutchik are a mix of these primary emotions.
