Introduction of Marketing

Concepts &
Marketing Mix (4Ps)

Presented by :
Chetan Pathak
Marketing Concepts - Evolution

 Production Concept
 Product Concept
 Selling Concept
 Marketing Concept
 Societal Marketing Concept
Definition

oDr. Philip Kotler defines that:

o“The organization's marketing task is to
determine the needs, wants and interests
of target markets and to achieve the
desired results more effectively and
efficiently than competitors, in a way that
preserves or enhances the consumer's or
society's well-being."
Definition of Marketing Mix

 Marketing Mix is the set of

marketing tools that the marketer
uses to pursue his marketing
objectives in target market.

- Philip Kotler
Elements of Marketing Mix (4Ps)

Product
Price
Place
Promotion
PRODUCT

Physical PRICE
Distribution

Target
Packaging
Market PLACE

People PROMOTION
Product

 Product variants  Size

 Features  Physical detail
 Quality  Services
 Style  Guarantee /
 Brand name warrantee
 Packaging  Aesthetic value
Product variants
Features
Brand name
Packaging
Aesthetic value
Price

Method of pricing
Factors to be considered
Schemes
Differentiated prices
Legal consideration
Place

Exclusive distribution
Selective distribution
Intense distribution
Promotion

Advertisements
Personal selling
Sales promotion
Public relationship
Advertisement

“It is any paid form non- personal

presentation and promotion of ideas,
goods or services by an identified
sponsor.”
Personal selling

“Personal selling consists of contacting

prospective buyer personally.”
Skoda yeti’s personal selling
Sales Promotion
Public relations
Difference between Selling &
Marketing Concept
N The Selling Concept The Marketing
o. Concept
1 undertakes a large-scale undertakes activities
selling and promotion effort such as; market
research,
2 The Selling Concept is suitable The Marketing
with unsought goods—those Concept is suitable for
that buyers do not normally almost any type of
think of buying, such as product and market.
insurance or blood donations.
3 Focus of the selling concept Focus of the
starts at the production level. marketing concept
starts at
understanding the
market.
4 Any company following Companies that are
selling concept undertakes following the marketing
a high-risk concept requires to bare less
risk and uncertainty.
5 The Selling Concept Instead of making an
assumes –“customers who assumption, The marketing
are coaxed into buying the concept finds out what
product will like it. Or, if really the consumer requires
they don’t like it, they will and acts accordingly to
possibly forget their them.
disappointment and buy it
again later.”
6 The Selling Concept makes Marketing concept works on
poor assumptions. facts gathered by its
“market and customer first”
approach.
Factors Affecting Marketing Mix

Target market
Marketing budget
Nature of the product
Size & effectiveness of competition
Marketing objective
Product lifecycle
Product lifecycle
MARKET SEGMENTATION
MARKET TARGETING

Presented By:
Chetan Pathak
Definition
“Market segmentation is the sub
division of a market into homogeneous
sub-sects of customers where any sub-
sects may conceivably be selected as a
market target to be reached with
distinct marketing mix”
- Philip Kotler
oRural
oSub-Urban
Geographic oUrban
oMetro
oNational
oInternational
Consumer oAge
Approach Demographic oGender
oIncome
oOccupation
oFamily size
oEducation

Psychographic
oLife-style
oPersonality

Product oUser-status
Approach Behavioral oLoyalty
oBenefits
oBuying Frequency
Behavioral Segmentation
User-
Loyalty Benefits
Status
Buying-
Non-user None Quality Frequency

Ex-user Medium Service

Regular
Potential
Strong Economy
User
Special
New
Absolute Speed
User
Regular
user
GEOGRAPHIC VARIABLES
REGION

Surya T.V.

Reason: It targets regions where Malyali

population is higher.
GEOGRAPHIC VARIABLES…
RURAL, SEMI URBAN
AND URBAN

Tata Magic and Winger

Cars

Reason:
Designed for traveling
in rural interiors.
Can weather tough
road conditions
DEMOGRAPHIC
AGE, EDUCATION
Aloha India
Reason:
Mental Arithmetic
programs specially
designed for children in
the 3-16 year age span
Each program offers
different levels.
Depending on the age and
education of the kids, they
are admitted in a
particular level.
DEMOGRAPHIC

GENDER
Fair & Lovely / Fair &
Handsome

Reason:
For women
“Smoothness like never
before”
DEMOGRAPHIC VARIABLES…
OCCUPATION

Black Berry Mobile

Phones

Reason:
For Businessmen
Has special features
COMBINATION OF DEMOGRAPHIC AND
PSYCHOGRAPHIC VARIABLES

INCOME, SOCIO ECONOMIC CLASSIFICATION

Asian Paints Tractor Emulsion

Reason:
“yeh sirf dikhta mehenga hai”
Low income category
Middle and lower middle class people
PSYCHOGRAPHIC VARIABLES
PERSONALITY

TagHeuer Watches

Reason:

For confident and

ambitious
personalities
BEHAVIORAL VARIABLES
OCASSION

D’Damas Diamond
Jewelry on
Rakshabandhan

Reason:
“Celebrate your
occasions with us”
Carbon fine
jewelry on
rakshabandhan
BEHAVIORAL VARIABLES…
BENEFITS

Lakme Pure Defense

BEHAVIORAL VARIABLES…
LOYALTY STATUS

Bharat Petroleum

Reason:
Petro Bonus Offers
BEHAVIORAL VARIABLES…
ATTITUDE TOWARDS PRODUCT
Apple I-phone

Reason:
Before I – phone was launched much hype was created about it.
People were very enthusiastic about its launch. There were heavy
bookings prior its launch.
Overall Segmentation ☺
Objective
To define market precisely
Determine promotional strategy
Decide positioning plan
Design product accordingly
Identify need
Hidden opportunity
Importance
Useful in forming effective marketing
programs
Better assessment of competitors
Optimum utilization of resources
Increase in sales revenue
Knowledge about the market
Pre-requisites of strong Segmentation

It should be identifiable
It should be measurable
Potentiality of the segment
It should be accessible
It should react to marketing efforts
Stability of the segment
It is dynamic
Targeting
Undifferentiated Marketing Strategy
Differentiated Marketing Strategy
Concentrated Marketing Strategy
Positioning
“It is the act of designing the
company’s image & value offer so that
segment’s customers understand &
appreciate what the company stands for
in relation to its competitors”
- Philip Kotler
Determinants of successful
product positioning
Designing creative product
Coherence
Profitable Market Segment
Should be Responsive
Source of Information
Process
Identify potential competitive
advantage
Choosing competitive advantage
Formation of overall positioning
Communicating
MARKETING ENVIRONMENT

Presented by:
Chetan Pathak
DEMAND MANAGEMENT
(DEMAND SITUATIONS)

 Negative demand
 No demand
 Latent demand
 Falling demand
 Irregular demand
 Full demand
 Overfull demand
 Unwholesome demand
NEGATIVE DEMAND

 Negative notion prevailing in

potential consumers

 Tasks :
 tryto remove negativity first
 Redesign marketing plan
 Study the dogmas or beliefs
 Try and replace them
 Try and reframe your products
NO DEMAND
 In-different or uninterested
customers

 Tasks : spread awareness

 Informative advertisements
 Explain benefits
 Give free samples if possible for
some time
LATENT DEMAND
 Itis also called “demand for invisible
product”
 Need is there but no products to
fulfill
 “marketer’s paradise”

 Tasks : measure potential of market

 Develop efficient product
 Research regularly
FALLING DEMAND

Demand is continuously
decreasing.

Task :
1. rejuvenate
2. diversify
IRREGULAR DEMAND
 Seasonal products

 Tasks :reduce irregularity as much

as possible
 Offer price-offs
 Enforce product through promotion
FULL DEMAND
 Performance meets expectation

 Task :maintain current demand

 Do not get lost from customer’s
mind
 Beware of competition
OVERFULL DEMAND
 Demand higher than it can be
handeled

 Tasks :de-marketing
 Try to reduce demand of some
products
 Efforts to divert customers
UNWHOLESOME DEMAND
 Demand for unhealthy products

 Tasks :de-marketing or counter

marketing
 Cautions
 Statutory warning
 Following legalities
DEMOGRAPHIC

INTERMEDIARIES

MARKETING
MANAGEMENT
demographic

POLITICAL /
LEGAL
MICRO ENVIRONMENT
 Controllable factors
 Close to company
 Affects ability to serve
customers
 Build value delivery system
1. COMPANY
 Marketer becomes the face of the
company
 Integration of many departments

 R&D

 Finance

 Marketing

 HR

 All
departments execute the final
plan
2. SUPPLIERS

Play an important role

Dependency of
suppliers
Price will depend or
change according to
raw material’s price
3. MARKETING INTERMEDIARIES
 Direct contact to customers
 Promote, sell & distribute
products
 Companies using “push” strategy
rely on intermediaries
 Their image also matters
 Marketers provide certain
services to them :
• Finance
• Customer care
• Product replacement
• Training to their staff
4. CUSTOMERS
 Center point of all marketing
activities
 Customers could be :
• Individual customer
• Business market
• Resellers
• Government markets
• International markets
5. COMPETITORS
 To sustain in the market, one has to
be better.
 It is a constant “cold war”

 One must observe and know the

competitors
 Take advantage to position yourself
better
 Each firm will have unique
advantages
 Focus on your strength
MACRO ENVIRONMENT
 Generally, unchangeable factors
 Ideally, there are six elements in
it
 A company must study all of that
to sustain
 Though it can not be changed,
but marketer has to change
according to that
1. DEMOGRAPHIC ELEMENTS
 Itis a study of human
population
 Size, location, age, gender,
occupation etc. is studied
 One need to change marketing
strategies or sometimes even the
product to obtain to the
demography
CHANGING AGE STRUCTURE
 In 2001, 48% of Indian
population was said to be below
21
 High birth-rate
 Low infant mortality & death-
rate
RURAL POPULATION
 70% population living in rural
area
 Majority rural population
EDUCATION
 Increasing day by day
 Demand for international
product is increasing
 Awareness of products is high
MIGRATION
 Migration is happening at a
rapid rate in Indian demography
 Due to which we can see change
in way of advertisement
2. POLITICAL OR LEGAL FACTORS
 Unavoidable
 Affects promotion
 Labeling and pricing
 Packaging
 And advertisements will be
affected.
3.ECONOMIC FACTOR

Consumer spending pattern

Interest rates
Inflation
Changing income
CONSUMER SPENDING PATTERN
CHANGING INCOME
4.NATURAL FACTORS
5.TECHNOLOGICAL FACTORS
6. SOCIAL & CULTURAL ENVIRONMENT
 Changing family system

▪ Increasing nuclear families

▪ Increasing empty nesters

 Fast lifestyle
STRATEGIC POSITION / POTER’S 5 FORCE ANALYSIS

Substitute
s
Competiti
Suppliers
ve rivalry

Strategi
Barriers
c Buyers
to entry
position
PROCESS OF ANALYZING COMPETITION
1. Identifying competition
2. Assessing competition
3. Designing competitive strategy
1. IDENTIFYING COMPETITION

Industry competition
Brand competition
Form competition
Generic competition
2. ASSESSING COMPETITION

Strengths & weakness

Reaction pattern
Objectives
Strategies
3. DESIGNING COMPETITIVE STRATEGY

Market leader’s strategy

Market challenger's strategy
Market follower’s strategy
Market NICHE strategy
MARKET LEADER’S STRATEGY
MARKET CHALLENGER'S STRATEGY
MARKET FOLLOWER’S STRATEGY
MARKET NICHE STRATEGY
 The term used the most…
 The thing applied the least…
SOME COMMON ETHICS
 Pricing
 Advertising
 R&D (myth)
 Direct marketing
 Environmental issues
 Distribution practices
ETHICAL NORMS (ACCORDING TO
A.M.A.)
 Do no harm
 Foster trust in marketing system
 Embrace ethical values
ETHICAL VALUES
 Honesty
 Responsibility
 Fairness
 Respect
 Transparency
 Citizenship
HONESTY
RESPONSIBILITY

The Polo Ladies Cup Started. Women

only.
FAIRNESS
RESPECT
Leave your worries behind.
With Figo’s extra large boot.
TRANSPARENCY

Why grow old?

Smoking helps you die younger…
DEFINITION OF CONSUMERISM
“Consumerism is a social
movement seeking to increase
the powers and rights of buyers
in relation to sellers”

-
Philip Kotler
CONSUMERISM
 Right to safety
 Right to be
informed
 Right to
choose
 Right to be
heard
 Right to Sue
IMPORTANCE IN INDIA
 Sellers market
 Poverty
 Illiteracy
 Rural population
 Orthodox customers
 Foreign goods invasion
 Advancement in technology
 Safety
 Balances social welfare
CUSTOMER ORIENTATION

Complaints and suggestion

system
Customer satisfaction survey
Ghost shopping
Lost customer analysis
Consumer expectation survey
Public relations
BENEFITS
 Enhances customer loyalty
 Increases production and sales
 Helps in facing competition
 Improves success ratio of new
products
INTRODUCTION TO
MARKETING RESEARCH
Presented by
Chetan Pathak
INTRODUCTION

“Ittakes years to develop

reputation in the market, but
takes a second to loose it”
One wrong marketing move
means you are out of the
market.
DEFINITION

 “RE” shows the continuity of the process.

 Research means to keep seeking
continuously
 “Marketing research is the function that
links the consumer, customer & public to
the marketer through information –
information used to identify & define
marketing opportunities & problems :
generate, refine, & evaluate marketing
action : monitor marketing performance;
and improve understanding of marketing as
a process”
- American Marketing Association
QUESTIONS TO BE ANSWERED
 Who (target segment)
 Why (features, decision process, role
of influencer& information)
 What (product choice, element of
individuality & loyalty)
 Where (distribution channel)

 When (trend of purchase)

 How (choice of all 4Ps)

FUNCTIONS
Enables getting information
Effective decision making
Preserves data
Gives information to all
departments
Research objective decides
research design
Integrate activities
FEATURES
 Variety of methods
 Art-science

 Applied research

 A package

 Phases

 Process cum tool

 Fills and links the marketing gaps

 Win-win advantages

 Self correction

 Wide acceptance

 Systematic & accurate

IMPORTANCE
 Large spending but inbuilt ROI
 Confident step forward

 Meeting marketing objectives

 Helps in decision making

 Finding solution to marketing

problems
 New markets or avenue

 Key questions get answered

CLASSIC COKE FAILED DUE TO RESEARCH
AD FOR NEW COKE
ARCH DELUXE FOR WRONG
SEGMENT
SCOPE OF MARKETING RESEARCH
 Sales research
 Market research

 International marketing research

 Product research

 Pricing research

 Distribution research

 Advertising research

 Media research

 Consumer research

 Packaging research

 Policy research

 Motive’s research
COMPLETE PROCESS OF MARKETING RESEARCH…
1. Define the problem
2. Specify the research objectives
3. Determine the data sources
4. Formulate research design (technique)
5. Design the sample
6. Decide where, when, how & by whom
7. Execution of plan (data collection)
8. Process the data (formulation &
segregation)
9. Analysis & interpretation of data
10. Prepare and present the report to the
decision makers
C.
B. Gathering &
Interpretation
A. Planning Processing
&
Data
Presentation

1.Define the 5.Design the

Problem sample 9. Analysis &
interpretation of
6. Decide where, data
2. Specify
when, how & by
objective
whom

7. Execution of
3. Determine data
plan (data
sources 10. Prepare and
collection)
present the
8. Process the report to the
4. Formulate decision makers
data (formulation
design
& segregation)
LIMITATIONS OF MARKETING RESEARCH
 No auto mode or ready solutions
 Not a “one size fits all”

 Data dependent

 Not dynamic – as the world out there is

 Can avoid a risk, but not without cost

 Not an effective prediction

 Depended of skills of researchers

 Applicability is the key

 Old data = no data

 Communication is important

 Urban - rural disparity

 Back to square one

CONCEPT OF PRIMARY AND SECONDARY
DATA
 PRIMARY DATA

 The data which is collected through

communication and observation is
called primary data

 SECONDARY DATA

 Information that is easily accessible,

already in the form of data, from
external sources is called secondary
data. It is also called ‘desk-research’.
IMPORTANCE OF PRIMARY DATA
 Highly valid
 Highly authentic
 Completely reliable
SOURCES OF PRIMARY DATA
 Interview
 Experiments
 Survey
 Observations
SECONDARY DATA SOURCES
 Government’s published data
 Data providing websites
 Telecomm. Companies
 Info centers.
 Internal sales detail
 Detail on cost of transport
TOP INDIAN MARKET
RESEARCHER COMPANIES

 IMRB international (Indian Market

Research Bureau)
 NCAER(National Council for Applied
Economic Research)
 Delphi research services

 Mundra Advertising & Research

 MRUC (Media Research User’s

Council)
 NIELSEN India
Concept
• Who are they? (target market)
• What do they buy?(preference –
like/dislike)
• Why do they buy?(buying
motive/objective)
• How do they buy?(buying process)
• Where do they buy?(buying points)
• When do they buy?(events/occasions)
Definition
• “ It is a psychological and social process
which influences buying decision. It is a
study of internal and external influences
that customers undergo while making
purchase decision.”
Significance
• To identify target audience
• Formulating marketing strategy
• Customer satisfaction
• Facing competition
• Scope for innovation
Model of consumer behavior
• External forces governing mind set
of consumer
• Physical & mental process
• Buying decision
External forces governing mind
set of consumer
• Socio-cultural
• Economical
• Political-legal
• Technological
• Marketer’s influence (4ps)
Physical & mental process
• Need
• Search for alternatives
• Evaluation
• Selection
• Feedback
Buying Decision Process

Identification of need
Collection of info.
Analysis of alternatives
Selection of alternative
Post purchase
Buying decision
• Product selection
• Brand preference
• Quantity
• Purchase timing
• Cultural • Need
• Social • Perception
class • Belief
• Family
• Occupation
• Reference Socio- Psycholog
group cultural ical

Economic Personal

• Income • Personality
• demand • Age
• Life-style

Other Factors = Technological – Competition - Legal

Branding

8-
A Successful Strategy:
• Helps achieve coordination among
functional areas of the organization.
• Defines how resources are to be
allocated.
• Leads to a superior market position.

8-
Elements of a Brand
1. Statement of the objective(s) the product
should attain
2. Selection of strategic alternative(s)
3. Selection of customer targets
4. Choice of competitor targets
5. Statement of the core strategy
6. Description of supporting marketing mix.
7. Description of supporting functional
programs
8-
Hierarchy of Objectives
Company Mission/Vision
Level 0
Corporate objectives
Level I
Corporate strategies

Divisional objectives
Level II
Divisional strategies

Product/brand objectives
Level III
Brand strategies

Program objectives
Level IV
Tactics
8-
Strategic Alternatives
Long-term
profits

Growth in Efficiency,
sales or short-run
market share profits

Market Market Decrease Increase

development penetration inputs outputs

New Existing Reduce Increase

segments customers costs price

Improve
Convert Competitors’ Improve
asset
nonusers customers sales mix
utilization

New product
development

8-
Criteria for Evaluating Strategic
Alternative Options
• Size/growth of the segment
• Opportunities for obtaining competitive

advantage
• Resources available to penetrate the

segment

8-
Five Areas for Differentiation
1. Quality
2. Status and Image
3. Branding
4. Convenience and Service
5. Distribution

8-
Consumer Based Brand Equity

8-
Some Brand Attribute
and Image Dimensions
Attributes Image Dimensions
•Flavor/taste
•Price Reliable—unreliable Old—
•Packaging young Technical—
•Size nontechnical Sensible—rash
•Calories Interesting—boring
•Brand name Creative—noncreative
•Warranty Sentimental—nonsentimental
•Durability Trust—untrust Daring—
•Convenience cautious
•Color Sociable-unsociable
•Style
•Comfort
•Freshness
•Availability

8-
Ten Guidelines for Building Strong Brands
1. Brand Identity
• Each brand should have an identity, a personality. It can be
modified for different segments.
2. Value Proposition
• Each brand should have a unique value proposition.
3. Brand Position
• The brand’s position should provide clear guidance to those
implementing a communications program.
4. Execution
• The communications program needs to implement the
identity and position.
5. Consistency over Time
• Product managers should have a goal of maintaining identity,
position, and execution over time. Changes should be
resisted.
8-
Ten Guidelines for Building Strong Brands (cont.)
6. Brand System
• The brands in the should be consistent & synergistic.
7. Brand Leverage
• Extend brands and develop co-branding opportunities only if
the brand identity will be both used and new
8. Tracking
• The brand’s equity should be tracked over time, including
awareness, perceived quality, brand loyalty, and brand
associations.
9. Brand Responsibility
• Someone should be in charge of the brand who will create
the identity and positions and coordinate the execution.
10. Invest
• Continue investing in brands even when the financial goals
are not being met.
8-
Basic Customer Strategies

1. Customer acquisition
2. Customer retention
3. Customer expansion
4. Customer deletion

8-
Strategy Over the Life Cycle

8-