Core Marketing Concepts

1. Needs, Wants and Demands

2. Target Market, Positioning and
Segmentation
3. Offerings and Brands
4. Value and Satisfaction
5. Marketing Channels
6. Supply Chain Management
7. Competition
8. Marketing Environment
1

The New Marketing

Realities

Major Societal Forces

New Consumer
Capabilities
New Company
Capabilities

Relevance of Marketing to India

An environment that necessitates and
favours marketing already exists in India
India displays features of free market
economy
Shift from shortage to surplus and from
Sellers market to Buyers market

Functions of
Marketing
1. Merchandising Functions
2. Physical Distribution
Functions
3. Auxiliary Functions

Company Orientation of
Marketplace

The Production Concept

The Product Concept
The Sales Concept
The Marketing Concept
The Societal Marketing Concept

The Marketing
Concept

Consumer Orientation
Integrated Management Action
Consumer Satisfaction
Realizing Organizational Goals including
Profits

Difference b/w Old and New Concepts of

Marketing

Difference between Marketing and Selling

Holistic Marketing
Market driven vs. Market driving

organizations

Marketing Environment
Factors and Forces outside marketing that affect
relationships with target customers.
Marketers must be
opportunity seekers.

the

trend

trackers

and

Necessity to adapt marketing strategies to meet

new market place, challenges and opportunities.

Micro Environment

Macro Environment

Controllable and Uncontrollable

Factors

Demograp
hic
Size, Density, Location, Age,
Occupation

Provides the quantitative

consumer demand

Gender,

aspect

of

Enables the marketers to understand the

bases of market
segmentation, reaction
to new product, advertising campaign etc.

10

Economic Environment
Income distribution

Purchasing

power

and

spending

patterns
Change in income
Economic growth
Interest rates, money supply, consumer
credit
Boom and recession

11

Natural
Environment
Natural resources that are needed
as inputs
Increased pollution
Increased Government intervention

12

Technological
Environment
New technologies
New markets and opportunities
Prevents
outdated

products

becoming

13

Strategic Marketing
Management
Strategy provides:
Direction
Focus and coordination
Define the firm
Reduce uncertainty

Strategic Marketing
Process

Environment Analysis (ETOP)

SWOT Analysis
Establishing Objectives

15

Consumer Behaviour
1. Diverse consumers connect with each
other and with other elements

2. Various factors/ elements impacts their

choices among various products, services
etc.
3. Different consumers have different needs
and motives.
4. A firm has to be constantly innovating
and understand the latest consumer trends
and tastes.
16

Types of Purchase Decision Behaviour

Buyer Involvement
High

Low

Significant

Differences between
Brands

Few

Complex
Buying
Behavior

VarietySeeking Buying
Behavior

DissonanceReducing
Buying
Behavior

Habitual
Buying
Behavior

17

Buyers Decision
Process
Problem Recognition

Pre-purchase Information search

Evaluation of Alternatives

Purchase Decision

Post-purchase Behaviour

18

1. Problem Recognition

Problem recognition can originate inside or

outside
Means-end chain concept is useful in analyzing
problem
Provides insights for the motives that guide
consumers

19

2.

Pre-purchase
Search

Internal and external search

Personal sources
Commercial sources
Public sources

Information

20

3. Evaluation of alternatives

Evaluative criteria

Many product characteristics may be involved

in making the decision (multi-attribute
decision making)

In some cases, rule of thumb may be invoked

( e.g. buying what is cheapest)

21

4. Purchase Decision
Consumer may end up buying a
brand which is not his most
preferred.
This may happen because of
attitude of others and situational
factors.

22

5. Post-purchase Behavior
Expectation Vs. Performance
The gap causes discomfort or dissonance
to the buyer
Satisfaction/ dissatisfaction, use and
disposal

23

Factors Influencing Consumer Behavior

Cultural
Culture

Social

Personal

Psychological

Sub-culture

Reference
group

Age & Life cycle

stage

Motivation

Social class

Family

Occupation
income

Learning

Roles and
status

Life style
Personality

Perception
Buyer

Beliefs &
Attitudes

24

Marketing
Segmentation
Meaning of Segmentation
Segmentation
Differentiation

vs.

25

Benefits of
Segmentation

Selection of marketing niches

Focused strategies
Implementation of changes required
Determination of effective promotional devices
Customer loyalty better matched to the
segment

26

Segmenting Consumer
Markets
Geographic Segmentation
Demographic
Segmentation
Psycho-graphic
Segmentation
Behavioral Segmentation

27

Factors Affecting Selection of Segments

Specific segmentation factors:
1.Segment durability
2.Substantiality / Significance
3.Measurability
4.Accessibility
5.Responsiveness / Response
rates

28

Targeting: Choosing a Market

Coverage Strategy

Undifferentiate
d
Differentiated
Concentrated

29

Positioni
ng
To position a product/service in the minds of
consumers relative to competitors (Ries and
Trout)

Positioning is not what you do to a product

Its what you do to the mind of the prospect

Positioning = Segmentation + Differentiation

Positioning for a product depends upon the nature of
the product.

Positioning
Strategies

Product Attribute or Benefit approach

Price-Quality approach
User approach
Product category approach
Competitor approach

31

Product Planning and

Development
Defining Product
Product layer concept

32

Product Mix
Decisions
Number of different product lines (the width)
Number of items within a product line (the
length)
Different variants offered of each product in
the line (the depth)

Relation

of

various

product

lines

(the

consistency)
Product line can be lengthened in two ways
(line stretching and line filling)

Classifications of products

Consumer Products
Convenience goods
Shopping goods
Specialty goods
Unsought goods

Business Products

Services

34

New Product
Categories
Major product innovations
Product-line extensions
Supplementary-service
innovations
Improvements/ style changes

Marketing strategies of different PLC

stages
Introduction Stage
- Launch strategy that is consistent with the
intended product

positioning.

- Promotional program designed to stimulate

demand

Growth Stage

- Strategies are focused to sustain rapid market

growth as long

as possible.

- The firm faces a trade off between high market

share and

high current profit.

36

Maturity Stage
-Modifying the market, product or the
marketing mix

Decline stage
- Withdraw

from the market

- Maintain the brand

- Harvest the product i.e. reducing costs ( Plant &
Equipment, R&D, Advtg)

37

New Product Development

Process
I

Idea generation

II

Idea screening

III

Concept development and testing

IV

Marketing strategy

Business analysis

VI

Product development

VII

Test marketing

VII

Commercialization
38

Branding
What is a brand?
Advantages of branding- for consumers and for
sellers
3Cs of branding- Clarity, Consistency and Constancy
Individual branding, Umbrella branding, Multi-brands
Brand personality

39

Packagin
g
Packaging consists of all the activities of
designing and producing the container or wrapper
for a product.
Vital purposes:
1. Protects the product
2. Persuade consumers to buy the product
3. Adds appeal to the product
4. Serves as silent salesman

40

Pricing objectives
Achieving

a target return on investment

Stabilize prices
Market penetration objective
Maximize profits
Fast cash recovery
Meet or Prevent competition

41

Price Setting in
Practice

Cost oriented
Competition oriented
Demand oriented
Value based
Pricing a new product
- Skimming
- Penetration

42

Factors Affecting Prices

Internal factors
Marketing objectives
Marketing mix strategy
Organization
considerations

External factors
Pricing
Decisions

Nature of the marketing &

demand
Competition
Other factors ( Economy,
Govt., Resellers)

43

Pricing Strategies

New Product Pricing

Product Mix Pricing

44

Price Adjustment
Strategies
Discount and allowance pricing
Segmented pricing
Promotional pricing
Geographical pricing
International pricing

45

Sequence of Decisions in Channels

1. Specify

the Role of Distribution

2. Select the Type of Channel and Middlemen

3. Determine Intensity of distribution (Intensive, Selective,
Exclusive)
4. Choose Specific Channel Members

Role of Distribution Channels

Minimize no. of contacts

Provide distribution efficiency
Break the bulk and offer in small quantity
Provide salesmanship
Helps in activities of physical distribution
Share the financial burden of manufacturer
Assist in merchandising
Maintain records
Supply products in suitable assortments

Typical Marketing Channels for Consumer

Products

Distribution Channels
1. Direct Distribution
2. Distribution through Intermediaries
3. Wholesalers and Retailers

Factors Affecting Choice of Channels

1. Market considerations
2. Product considerations
3. Middlemen considerations
4. Company considerations

Logistics and Physical Distribution

Supply chain complete sequence of suppliers that

contribute to creating a good or service and delivering
it to business users and final consumers.

Logistics the activities involved in controlling the

flow of goods, services, and information among
members of the supply chain.

Physical Distribution the

activities aimed at
efficiently moving finished goods from the production
line to the consumer or business buyer.

Physical Distribution, Supply Chains, and

Logistics Management

Order processing
Warehousing
Inventory management
Transportation

Steps in Effective
Communication
1.Identifying the target audience
2. Determining communication objective
3. Selecting the communication channel
( personal or non-personal)
4. Designing the message
5. Evaluating communicator / source effect
6. Establishing the total promotion budget
7. Deciding the promotion mix
53

Promotion Mix

Advertising
Sales Promotion
Direct Selling
Public Relations
Personal Selling

54

Major Determinants of
Promotion Mix
Type

of Product

Nature of Market
Stage in PLC
Available budget
Company policy

55

The Five Ms of Advertising

Mission
Money
Message
Media
Measurement

56

Why Sales Promotion?

Products have become more standardized

Immediate response
Customers are more price sensitive
Competition
Introduces an element of interest
Impulse buying is increasing
Excess stocks
Clutter

Tools of Sales Promotion

Consumer promotion tools
Trade promotion tools

58

Green Marketing
Environmental
activism
has
led
to
legislations and firms are now required to
comply with the regulatory mechanism.
Products and services are being made
ecologically friendly.
Also called Ecological Marketing.

Arguments in Favour of Eco-Marketing

1. Increasingly, customers are becoming aware of
the causes and effects of a polluted
environment.
2. Aware customers form interest groups and
promote eco-friendly products and legislations.
3. Given the choice, customers tend to buy ecofriendly products.

Conclusion
Eco-marketing has come to acquire a significant
place in industry.
Consumers want to adopt a resource-intensive
lifestyle.
Green marketing recognizes the fact that
marketing actions of a firm have an impact on the
use of resources, generation of waste, and
subsequent pollution.
Sustainable green marketing requires the
development of a marketing mix that is
compatible with the ecology.

Services Marketing
Characteristics
Services

Intangibility
Heterogeneity
Perishability
Inseparability

of

Physical Goods and Services

Marketing Mix for Services

Extended Marketing Mix for Services:
1.Product
2.Price
3.Place
4.Promotion
5.Physical Evidence
6.People
7.Processes
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