DABUR INDIA BRANDS

HINDUSTAN UNILEVER BRANDS

RECKITT AND BENCKISER

ORGANISATION

Marketing Department

Human ResourcesDepartment

Production Department

R& D Dept.

Finance Department

REVENUE GENERATION DEPARTMENT

MarketMarketWhat is a market? It is composed of...

People and/or organizations

with needs and wants,

the ability to buy, the willingness to buy, and

We need to have all of these elements present before you have a market!

the authority to buy.

MARKETING CONCEPT Needs Wants Demands Basic human requirements

When specific objects that satisfy needs, NEED directed towards specific product

Are wants for specific products backed by ability to pay

Food,air,water,shelter An American needs food but wants hamburger, cold drinks

Many people want Mercedes but only few are able and willing to buy one

Education, entertainment

An Indian may need food but wants puri,bhaji,or roti,rice with Dal tadka

Wants are shaped by one’s society

1. Stated needs (the customer wants an inexpensive car).2. Real needs (the customer wants a car who operating cost, not its initial price, is low).3. Unstated needs (the customer expects good service from the dealer).4. Delight needs (the customer would like the dealer to include an onboard navigation system).5. Secret needs (the customer wants to be seen by friends as a savvy consumer).

Industry

( a collection of sellers)

Market

( a collection of buyers)

YOUNG AGE 14-30 FOR PEPSI

YOUNG AGE 12-35 years old for COKE

Goods/Services

Money

Information

Communication

Exchange and transaction process

MARKETING –Definition MARKETING : is directly responsible to generate income and contribute to the growth of the business whereas other management functions centre around cost and allocation of scarce resources.

Marketing is the main pillar to achieve business goals.

Marketing Management : According to Philip kotler 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 to each other. AMA : Marketing is the process of planning and executing the conception ,pricing ,promotion ,and distribution of ideas,goods,and services to create exchanges that satisfy individual and organizational goals.

Marketing is a continuous process ascertaining consumer needs converting them in to products /Brands or services and moving them to final consumers to satisfy their wants ,needs, desires with emphasis on profitability through optimum use of resources

Suppliers

Raw materials Manufacturer

Market intermediaries

Retailers

Vendors/ stockiest

Customer

is

King

Value Delivery Chain

Modern Marketing Transaction of ten entities:1)Goods-television sets, plasma TVs, millions of hair dryers, toys2)Services-Accountants ,Lawyers, engineers, doctors, management consultants3)Experiences: water parks,café-coffe day, climbing mount Everest4)Events: olympics,20-20 cricket,filmfare awards5)Persons: CEOs, Amitabh bachchan,shahrukh khan6)Places: cities,states,regions,INCREDIBLE INDIA BY AAMIR KHAN7)Properties: Intangible rights, real property (real estates), financial property -stocks bonds8)Organizations: Philips-”let’s make things better..ICICI BANK-HUM HAIN NA..9)Information: encyclopedias, magazines-times of India, internet 10)Ideas: Every market offering includes basic idea “say no to drugs", avoid fatty foods

Company Orientations towards Market Place

Six competing concepts:1.The production concept

2.The product concept

3.The selling concept

4.The marketing concept

5.The customer concept

6.The societal marketing concept

TOPmgt

FRONT LINE PEOPLE

CUSTOMERSTOP mgt

MIDDLE MGT

FRONT LINE PEOPLE

CUSTOMERS

MIDDLE MANAGEMENT

TRADITIONALORGANISATION

MODERN CUSTOMER ORIENTED ORGANISATION

To use the marketing concept, businesses To use the marketing concept, businesses should:should:

Determine the needs of their customers Determine the needs of their customers ((Market ResearchMarket Research););

Analyze their competitive advantages Analyze their competitive advantages ((Market StrategyMarket Strategy););

Select specific markets to serve Select specific markets to serve ((Target MarketingTarget Marketing), ),

and;and;

Determine how to satisfy those needs Determine how to satisfy those needs ((Market MixMarket Mix).).

Fundamental of Marketing Management

Functions of marketing Management 1)Determine objectives- goals 2) Analysis of information- Market research ,MIS3) Marketing strategies: plans,campaigns,programmes 4)Planning: new product, sales forecast5) organizing: ways & means to achieve objectives 6) Directing : guidance to employees from marketing manager or VP/MD7)Staffing : recruitment,selection,development,training,compensation Why RELIANCE,RANBAXY,PEPSI,COKE ,P&G are top companies 8) Implementation: organizing for marketing plan/strategy 9) Controlling : comparison of actual performance vs. standard objective

4 Ps of Marketing The 4 PThe 4 P’’s of Marketings of Marketing

Product:Product: Market research, Quality, Design, Market research, Quality, Design, Warranties, Slogans, Name, Logos, Packaging, Warranties, Slogans, Name, Logos, Packaging, Features, Sizes, Options, Services, Style, Returns.Features, Sizes, Options, Services, Style, Returns.

Price:Price: Based on Cost and Positioning (List Based on Cost and Positioning (List price, Discounts, Allowances, Payment period, Credit price, Discounts, Allowances, Payment period, Credit terms).terms).

Place:Place: (distribution) how you will bring your (distribution) how you will bring your product together with your customers.product together with your customers.

Promotion:Promotion: There are many promotional There are many promotional activities you can undertake including: Advertising, activities you can undertake including: Advertising, Publicity, Sponsorship, Sales promotion, Personal Publicity, Sponsorship, Sales promotion, Personal selling, Direct Marketing, Internet Marketing.selling, Direct Marketing, Internet Marketing.

Market Research

In order to manage the marketing function successfully, good information about the market is necessary. Frequently, a small market research program, based on a questionnaire given to present customers and/or prospective customers, can disclose problems and areas of dissatisfaction that can be easily remedied, or new products or services that could be offered successfully.

Marketing StrategyMarketing strategy encompasses identifying customer groups (Target Markets), which a small business can serve better than its larger competitors, and tailoring its product offerings, prices, distribution, promotional efforts and services towards that particular market segment

(Managing the Market Mix). A good strategy implies that a business cannot be all things to all people and must analyze its markets and its own capabilities so as to focus on a target market it can serve best.

What is Market Segmentation?What is Market Segmentation?Defined:

◦the process of dividing a market into meaningful, relatively similar and identifiable segments or groups.

◦Changing a heterogeneous group (market) into smaller homogenous groups (market segments)

◦4 Criteria:

Substantiality

Accessibility Responsiveness

Identifiability and Measureability

Market SegmentationMarket SegmentationWhy do we segment markets? To do a

better job of meeting consumer needs, and to be consistent with the marketing concept.

Consider Coca-Cola Co.

Before 1960: Since 1960:

CokeCoke, Diet Coke, Sprite, Cherry Coke, Caffeine-Free Coke, Citra, Minute Maid, Fruitopia, etc.

Bases of SegmentationBases of Segmentation

Geographic: grouping potential buyers according to location (ex: MNCs )

Demographic: grouping potential buyers according to age, gender, income, ethnic background, family characteristics, etc. (ex: many clothing stores, movies)

Psychographic: grouping potential buyers according to personality, motives, and lifestyles

Bases of Segmentation Bases of Segmentation (continued)(continued)

Benefit segmentation: grouping potential buyers according to the benefits they seek from products. It groups according to product-related needs. (ex: Head and Shoulders)

Usage-rate (type of customer) segmentation: grouping potential customers by the amount they would buy (ex: travelers, banks)

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SegmentationIdentify segments

TargetingSelect segments

PositioningCreate competitive advantage

Marketing resources are focused to better meet customers needs and deliver more value to them

Customers develop preference for brands that better meet their needs and deliver more value

Customers become brand/supplier loyal, repeat purchase, communicate favorable experiences

Brand/supplier loyalty leads to increased market share and creates a barrier to competition

Fewer marketing resources needed over time to maintain share due to brand or supplier loyalty

Profitability (value to the firm) increases

How STP Adds Value To A How STP Adds Value To A Firm?Firm?

Target market - a homogenous segment that your organization has chosen to pursue.Niche - one segment (usually small) of an overall market.Mass market - an entire market, unsegmented (ex: Wal-Mart)For a segmentation basis to work, it need to based on a set of attributes that are meaningful.

Objectives of SegmentationObjectives of Segmentation

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Determine how much to charge (price discrimination): tickets, laptops, books... price sensitivity

Design advertising images attitudes, lifestyles, media habits…(cluster analysis)

Identify targets for a direct promotion program choice probability…(choice model)

Help the design of new products: cell phones utilities for different features/functions (conjoint analysis)

A Note on PositioningA Note on Positioning

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Positioning involves designing an offering so that the target segment members perceive it in a distinct and valued way relative to competitors.

Three ways to position an offering:

1.Unique (“Only product/service with USP”)

2.Difference (“More than twice the [feature] vs. [competitor]”)

3.Similarities (“Same functionality as [competitor]; lower price”)

What are you telling your targeted segments?

4 C’s of Marketing

Customer Benefit: Dettol Soap- TOTAL PROTECTION

J W STANTON: “A PRODUCT IS A COMPLEX OF TANGIBLE AND INTAGIBLE ATTRIBUTES”

Customer Convenience: crocin to get relief from pain

Customer Cost: substitution ,DYNAMIC & SUBJECT TO CHANGES

Customer Communication: Personal selling,Advertising,publicity,sales promotion,public relations,internet,WORD OF MOUTH PROMOTION

P&G PRODUCTS CATEGORY

BRANDS OF AUTOMOBILES

In order to conduct a successful marketing program you must be able to answer the following questions:

1. What type of business are you in (manufacturing, merchandising or service)?

2. What is the nature of your product(s) or service(s)? 3. What market segments do you intend to serve?

(Describe the age, sex, income level, and life-style characteristics of each market segment.)

4. What strategies will you use to attract and keep customers?

5. Product 6. Price 7. Place 8. Promotion9. Persuasion (personal selling) 10. What is your unique selling proposition (USP)? 11.Who is your competition, and what will you do to control

your share of the market? 12.How are you going to build and support your product?

CUSTOMER IS KING

Marketing as a philosophy

1.Customer is king2.Revenue generation3.Large scale employment4.Research & innovation5.Social process6.Special efforts –Consumer behavior7.Alternative of choices, redistribution of income8.Environment scanning, forecasting techniques,SWOT ANALYSIS9.Creates TIME, PLACE,POSSESSION UTILITY10.Mass marketing provides much needed revenues to the Government –aspirin, Colin

Objectives of Marketing

1.To satisfy the customers

2.To improve quality of life of people

3.To attain higher sales

4.To create good image

5.To work out appropriate marketing mix

6.To increase business profits

OPEN HAPPINESS-COKE YOUNGISTAN PEPSI

THANK YOU