BITS Pilani

Pilani Campus

Marketing Management(BA ZC 411/ MBA ZC 411)

Atul Kr. Arora
Lecture -1
Instructor profile
Atul Kr Arora
• Experience:
• Corporate Experience- 13 yrs
(Telecom, Banking & Wealth Management, FMCG)
• Academic Experience- 6.5 yrs (B-School PG)
• Education:
• PhD- Management (Pursuing – IIM Ksp)
• PGDM(Full-Time)- Marketing (IMT, Ghaziabad)
• B.Tech. (Chem. Tech.)- HBTI, Kanpur
Contact details:
• [email protected]
• Mob: 9810264434
Course Objectives

No Course Objectives

To understand the fundamental marketing concepts and the

CO1 processes that influence the market orientation of a firm

CO2 To understand the role of marketing within the organization

To recognize the importance of marketing in the competitive

CO3 world

To analyze critically the marketing process and its relationship with

CO4 the environment within which it operates.

BITS Pilani, Pilani Campus

Course Structure
• Introduction to Marketing
• Marketing Strategies and Plans
• Consumer Behaviour
• Segmentation, Targeting and Positioning
• Brand Positioning
• Product Management
• Pricing
• Distribution and Logistics
• Promotion

The course aims to make you familiar with the various concepts of marketing,
Today’s Sessions Contents

• Value and Scope of Marketing

• Core marketing concepts
• Needs, Wants and Demands
• Segmentation, Targeting and Positioning
• Marketing Channels etc.
• 4 Ps of Marketing and 7 Ps of Services
• 4 concepts of marketing
• Course Outline
 Chapter-1
Defining marketing for new realities
The Value of Marketing

• Marketing works in conjunction with other departments like finance,

operations, accounts and other business activities to generate
demand for products and services so that the firm can earn a profit.

Profit = Revenue - Cost

Valuation = Shares * Price of shares

1m shares * 1000 = Rs. 100 crore

 The value of marketing

• The goal of marketing is to build brands and a loyal customer base for the
company; intangible assets which contribute heavily to the value of a firm.

“A brand is a name, term, design, symbol, or any other feature that identifies one seller’s
good or service as distinct from those of other sellers”
(American Marketing Association).
The value of marketing

• Skilled marketing is a never ending pursuit.

• It involves the art of adaptability as companies and organizations need
to navigate their ways through changing customer needs, technology
and environmental factors among other things.
The scope of marketing what is marketing?

• Marketing is about identifying and meeting human and social needs in a profitable
manner for the firm.

• Edu-tech firms
• Electrical Vehicles
• Human need : Affordable, noise free transport
• Social need : Less pollution
The scope of marketing what is marketing?

• Marketing is the activity, set of institutions and processes for creating,

communicating, delivering and exchanging offerings that have value
for customers, clients, partners and society at large.

• Activity: Advertising, Selling, Product Management (product/package design),

Pricing etc.
• Set of institutions: Marketing departments, Ad Agencies, Modelling Agencies,
Market Research Firms, Event Management Companies, Transport Companies,
Retailers
• Processes: Research Inputs – Product Design – Product launch – Response
Measurement etc.
Scope of marketing

• Marketing is the art and science of choosing target markets

and getting, keeping and growing customers through creating,
delivering and communicating superior customer value. (AMA
Definition)

https://www.youtube.com/watch?v=AHP-KsAqggQ
Scope of marketing

Our social definition of marketing:

• Marketing is a societal process by which individuals and groups obtain
what they need and want through creating, offering, and freely
exchanging products and services of value with others.
1. Problem Solving- UrbanCompany
2. Needs and Wants- HUL and Tanshiq
3. Value Creation- Zomoto, IRCTC
4. Offering products and services: Metro Cash and Carry
marketing and selling

• A common management misconception.

• Selling at best is an activity associated with marketing. We shall visit this in greater
detail later.
Scope of marketing what is marketed?

• Goods (Cars, cosmetics, medicines)

• Services (Education, Healthcare)
• Events (FIFA, A concert, IPL)
• Person ( a politician, an author)
• Properties (Real Estate, Gold)
• Information (Big Data, News)
• Experiences (Vipassana, Adventure)
• Places (Kerala, Goa, Lakshyadeep)
• Charity Organization (Helpage India)
• Ideas (Polio Vaccination, Swachh Bharat)
Scope of marketing Who markets?

• Marketers and prospects

• A marketer is someone who seeks a response – attention, purchase, vote or a
donation – from another party called a prospect.
• A marketer seeks to influence the level, timing, and composition of demand to
meet the organization’s objectives.
• Movie/OTT Marketing.
• Festival and Seasonal Sale.
• New Product Launch (Apple).
Scope of marketing Demand States
• Negative Demand
• Petrol during Covid lock down. Gulf states were willing to pay U$ 40/barrel to “buyers” of crude.
• Non-existent demand
• Audio Systems
• Latent Demand
• Unbiased news, Wireless devices/charging (20 years ago)
• Declining Demand
• Dongles for net connection, TV Sets, CD Players
• Irregular Demand
• Face Masks, Air Conditioners
• Full Demand
• Demand = Supply
• Excessive Demand
• Demand > Supply (Face Masks, sanitizers during initial days of Covid)
• Unwholesome demand (demand consumer badly wants the product but shouldn’t desire or take
the decision)
Scope of marketing what is a market?

• The word market traditionally refers to the market place – the location or area
where buyers and sellers meet.
• In economics, a market is described as a collection of buyers and sellers who
negotiate and transact over a particular product or product class (such as the
housing market or the grain market).
• In marketing the word “market” is used to describe various grouping of customers.
For example when referring to the automobile market we mean the set of people
interested in buying an automobile.
Markets

Resources Money
Resource
(Land, Labour, Resources
Money Capital)

Services Services

Manufacturer Government Consumer

Goods, Taxes Taxes

Money Money
Intermediary
Goods, services Goods, services
Scope of marketing key customer markets

• Consumer
• Buyer is the end customer
• Business to Business Market (B2B Markets)
• Business 1 sells to Business 2 which uses the product to meet the demands of
its customers,
• Global
• Challenges of customisation, localization.
• Cars for the Indian market need high ground clearance.
• No market for beef burghers in India.
• Non-profit and Govt. Markets (tenders)
• NGOs (CRY, Helpage)
Core marketing concepts

• Needs , Wants and Demands • Impressions and Engagement

• Target Markets, Positioning and • Values and Satisfaction
Segmentation • Supply Chain
• Offerings and Brands • Competition
• Marketing Channels • Marketing Environment
• Paid, Owned, Earned Media
Needs, wants and demands

• Needs
• Basic Requirements e.g. “ I need food.”
• Wants
• Desire e.g. “I would like to have biryani.”
• Demands
• What I actually buy. “ Please get me two rotis.
Types of needs

• Stated Needs (I need an inexpensive car.)

• Unstated Needs ( I need good service.)
• The customer has missed out on the point, by oversight.
• Real Needs (I need a car which is low on operating costs, i.e. fuel costs,
maintenance costs.)
• Here the customer does not know how to express. The seller would understand that to mean a
cheap car.
• Delight needs (Hey! Is that audio system complimentary.)
• The customer is not expecting this.
• Secret Needs (Am I getting a good deal? Am I buying the right car? Man, I am not
an engineer, hopefully I got the specs right?)
• The customer does not want to talk about this for personal, social reason.
• Mental Health stigma
Core marketing

• Segmentation, Targeting, Positioning (STP)

• Segmentation
• Grouping of customers – demographic, psychographic etc.
• Target
• Market Offers
• Positioning
• Volvo – safe cars
• BMW – driving pleasure
Levis launches five pocket jeans. (Market Offer).
High income, mid income, low income / Young, Middle Aged, Seniors/ Men,Women (segment)
High Income, young men (Target)
Macho (Positioning)
Core marketing concepts Offerings and brands

• Value proposition
• A set of benefits that satisfy needs of the customer
• Quality, multi-specialty, and hygienic medical service
• State-of-the Art, innovative and high-quality consumer electronics items with after-sales service
• Offering
• A combination of products, services, information and experiences
• Offering gives a ‘physical shape’ to the value proposition
• Clean premises, experienced doctors, managers and staff equipment
• Televisions, Mobile phones
• Brand
• Brand is an offering from a known (identified) source.
• “Apollo” Hospitals
• SONY
Core marketing concepts Value and satisfaction

• Value of a product (as perceived by customer) is a combination of features,

quality, service and price. (FQSP)
• Satisfaction reflects a person’s judgment of a product’s perceived performance in
relationship to expectation.
Developing a Value Proposition (1 of 5)

• Create value across three domains:

• Functional value
• Psychological value
• Monetary value
Developing a Value Proposition (2 of 5)
• Total customer benefit
• The perceived value of the bundle of functional, psychological, and monetary
benefits customers expect from a given market offering because of the product,
service, and image
Developing a Value Proposition (3 of 5)
• Total customer cost
• The perceived bundle of functional, psychological, and monetary costs customers
will incur in evaluating, obtaining, using, and disposing of the given market
offering
Developing a Value Proposition (4 of 5)
• Customer value proposition
• Based on the difference between benefits the customer gets and the costs he or
she assumes for different choices
Developing a Value Proposition (5 of 5)
• Customer value analysis
• Reveals the company’s strengths and weaknesses relative to those of various
competitors
Developing a Positioning Strategy

• Positioning
• The act of designing a company’s offering and image to
occupy a distinctive place in the minds of the target market
Communicating the Positioning (1 of 5)
• Positioning statement
• Communicating an offering’s category membership along with points of parity
and points of difference, and developing a narrative to convey the offering’s
positioning
Communicating the Positioning (2 of 5)
• Crafting a positioning statement
• Attributes that describe the offering v s benefits delivered by the attributes
ersu
Communicating the Positioning (3 of 5)

• Communicating category membership

• Announce category benefits
• Compare to exemplars
• Rely on the product descriptor
Consider your college or university’s positioning statement.

• How does your college or university describe its attributes and the
benefits it provides to the buyer (in this case the student)?
• How would you describe your college or university’s competitive
advantage?
Core marketing concepts Marketing Channels

• Channel of Distribution
• Dealers, Distributors, Retailers, e-commerce
• Help display, sell, and deliver physical goods and services
• Channel of Service
• Warehouses, Transportation companies. Banks, insurance companies
• Channel of communication
• Deliver and Receive messages to/from customers
• Print media, electronic media, digital media, stores

POP / POS = Point of Purchase / Point of Sale

Classification of Media (POE M)

• Paid Media
• Advertisements
• Owned media
• Company’s brochures, web site
• Earned media
• Word of Mouth
Core marketing concepts
Impression and Engagement
• Four ways to reach the customer
• TV, Internet, Mobile, (Print),Outdoor
• An impression occurs when a consumer views a communication.
• Engagement is the extent of a customer’s attention and action involvement in a
communication.
Core marketing concepts supply chain

• Supply Chain is the channel from raw material to component to finished product to
final buyer.

Coal
(Mine)

Iron Pig Iron Steel Rods/Channels/Rails Stock Consumer

Dealer
ore (Steel Plant) Yard (Building)

Lime
SUPPLY CHAIN FOR STEEL INDUSTRY
stone
CORE Marketing concept competition

• All actual and potential rival offerings or substitutes a buyer might consider.
• Toyota is a rival of Honda.
• Tesla is a potential rival of Honda in India.
• Metro/High-Speed Rail is a substitute for both. The internet is a potential
substitute.
Four P’s of Marketing

1. Product
• Product Variety, Quality, Design, Features, Brand Name, Packaging, Sizes, Services,
Warranties, Returns
2. Price
• List Price, Discounts, Allowances, Payment Period, Credit Terms
3. Place
• Channels, Coverage, Assortment, Location, Inventory, Transport
4. Promotion
• Sales Promotion, Advertising, Sales Force, Public Relations, Direct Marketing
5. People
6. Processes Service Marketing
7. Physical Evidence
Four Concepts of Marketing

• Production Concept
• Consumer prefer the most inexpensive and widely available product.
• Such companies focus on high production efficiency, low costs, mass distribution
• Steel Industry, Chinese Companies
• Product Concept
• Consumer prefers quality and variety
• Apple
• Selling Concept
• Consumers need hard selling to buy a product
• Insurance sector
• Marketing Concept
• Right product for the customer
• Creating, communicating and delivering a superior value to a customer