2 Marketing….. definedThe 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 accordinglySpreading awareness /creation of needBuilding relationships with the customersEnsuring maximum customer satisfaction
7 The Extended Marketing Mix ProductPricePlacePromotionPeopleProcessPhysical evidence
8 Marketing mix Product Product development Product management Product features and benefitsBrandingPackagingAfter-sales services
9 Marketing mix Price Costs Profitability Value for money CompetitivenessIncentivesQualityStatus
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 ConceptThe 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 ConceptAn 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 ConceptMany 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 ConceptIt 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 ConceptUnder 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.
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 EnvironmentAll 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 EnvironmentAll 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 SegmentationMarket 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 SegmentationThe following are some examples of geographic variables often used in segmentation.Region: by continent, country, state, or even neighborhoodSize of metropolitan area: segmented according to size of populationPopulation density: often classified as urban, suburban, or rural
33 Basis for segmentation 3) Psychographic SegmentationPsychographic segmentation can be done on the basis of AIO-AttitudeInterestsOpinions
34 Basis for segmentation 4) Behavioralistic SegmentationBehavioral segmentation is based on actual customer behavior toward products. It include:Benefits soughtUsage rateBrand loyaltyUser status: potential, first-time, regular, etc.Occasions: holidays and events that stimulate purchases
35 TargetingAfter 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 TargetingSecondly 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 PositioningPositioning 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 PositioningBrand 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 mindAccording to Scott Davis, a company should change its positioning in every 3 – 5 yearsFor 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 LirilLiril 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 BENEFITSAriel 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/ QUALITYParle Bisleri – “Bada Bisleri, same price”Vishal Megamart – value retailerWal-Mart – “Always low prices, always”
43 Positioning Strategies POSITIONING BY COMPETITOROnida 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 BrandBrand 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 BrandFor 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 Kanta Bai'' 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.
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 The Buyer Decision Process Need RecognitionInformation SearchThe Buyer Decision ProcessThe Buyer Decision Making ProcessThis CTR corresponds to Figure 5-6 on p. 153 and relates to the material on ppTeaching Tip: Consider asking students to describe some of their purchases decisions made at the beginning of the term and link them to steps in the process.Evaluation of AlternativesPurchase DecisionPostpurchase BehaviorStages in the Buyer Decision ProcessNeed Recognition. Problems are recognized when people sense a difference between an actual state and some desired state. Problem recognition can be triggered by either internal or external stimuli.Information Search. Consumers vary in the amount of information search they conduct. Information search may be a survey of information stored in memory or may be based upon information available externally. Search effort varies from heightened awareness corresponding to increased receptivity for relevant information to active information search modes where the person expends some energy to obtain information that is desired. External information vary in their informational and legitimizing characteristics. Riskier decisions usually elicit more search behavior than non-risky decisions.Evaluation of Alternatives. Following information search, the person compares decisional alternatives available. Criterion for evaluation compares product attributes of the alternatives against degrees of importance each attribute has in meeting needs, beliefs about the product or brand's ability and utility, and an evaluation procedure that ranks the alternatives by preference that forms an intention to buy.Purchase Decision. - The individual buys a product. Purchasing other than the intended product may be due to attitudes of others exerted after the evaluation of alternatives is completed or unexpected situational factors such as point of purchases promotions that affect the alternatives' ranking.Post-purchase Behavior. This involves comparing the expected performance of the product against the perceived performance received. Cognitive dissonance describes the tendency to accentuate benefits and downplay shortcomings.
50 Difference between an actual state and a desired state The Buyer Decision Process Step 1. Need RecognitionNeed RecognitionDifference between an actual state and a desired stateInternal StimuliHungerThirstA person’s normalneedsExternal StimuliTV advertisingMagazine adRadio sloganStimuli in theenvironment
51 The Buyer Decision Process Step 2. Information Search Personal SourcesThe Buyer Decision Process Step 2. Information SearchCommercial SourcesFamily, friends, neighborsMost influential source ofinformationPublic SourcesAdvertising, salespeopleReceives most informationfrom these sourcesExperiential SourcesMass MediaConsumer-rating groupsHandling the productExamining the productUsing the product
52 The Buyer Decision Process Step 3. Evaluation of Alternatives Product AttributesEvaluation of Quality, Price, & FeaturesDegree of ImportanceWhich attributes matter most to me?Brand BeliefsWhat do I believe about each available brand?Total Product SatisfactionBased on what I’m looking for, how satisfiedwould I be with each product?Evaluation ProceduresChoosing a product (and brand) based on oneor more attributes.
53 The Buyer Decision Process Step 4. Purchase Decision Purchase IntentionDesire to buy the most preferred brandAttitudes of othersPurchase Decision
55 Marketing Information system Marketing information system (MIS) is a set of procedures and methods designed to generate, analyze, disseminate, and store anticipated marketing decision information on a regular, continuous basis. An information system can be used operationally, managerially, and strategically for several aspects of marketing.Marketing informations can be used operationally, managerially, and strategically for several aspects of marketing.
56 We all know that no marketing activity can be carried out in isolation, know when we say it doesn’t work in isolation that means there are various forces could be external or internal, controllable or uncontrollable which are working on it.Thus to know which forces are acting on it and its impact the marketer needs to gathering the data through its own resources which in terms of marketing we can say he is trying to gather the market information or form a marketing information system.
57 Sources of Information Internal company information – E.g. sales, orders, customer profiles, stocks, customer service reports etcMarketing intelligence – This can be information gathered from many sources, including suppliers, customers, and distributors.Market research – Management cannot always wait for information to arrive in bits and pieces from internal sources
58 Advantages1. Organized data collection. 2. An avoidance of crises. 3. Coordinated marketing plans. 4. Speed in obtaining sufficient information to make decisions.
59 DisadvantagesThe disadvantages of a Marketing information system are high initial time and labor costs and the complexity of setting up an information system