MARKETING

SELL

IDEA

PRODUCT

ME

DIA

MA

RK

ET

MIX

STRATEGY

PL ANNING

AN

ALY

SIS

GOALS

OB

JEC

TIV

ES

TARGET

VALUE

NET WORK

SALES

PROCESS

BUSINESS

PROMOTION

GROW TH BRANDING

PL ACE

PRICE

Presented By :

ADITI WALIA

PERSONAL SELLING

ADVERTISING

PUBLICIT Y

DECISION

IMP

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SIT

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TIO

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ENVIRONMENT

COST

COMMUNICATION

SOLUTION

CO

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EN

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D ISTRIBUTION

PURCHASING POWERTECHNIQUES

SEGMENTATION

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CONTENTS

▪ Introduction

▪ Marketing Decision

▪ Delivering Value To Consumer

▪ Marketing Process

▪ Marketing Analysis

▪ Marketing Utilities

▪ Marketing Management Concepts

▪ Traditional V/S Modern Marketing

▪ Marketing Planning

▪ Marketing Mix

▪ Different Marketing Strategy Techniques

▪ Conclusion

“ Marketing” can defined as an activity that creates & sustains exchange relationships among those who are willing & able to buy and sell products, services, satisfaction &even ideas. In the present day for business, it is considered to be the activities related to identifying the needs of the consumers & taking such actions to satisfy them, in return of some consideration.

In marketing, it is more importantto do what is strategically right rather than what is immediately profitable.

MARKET

RESEARC

H

COMPETITOR

INTELLIGENC

E

MARKET

ANALYSIS

PRODUCT

INTELLIGEN

CE

MARKET

INTELLIGENC

E

KEY PRODUCT CONCERNS

ACQUISITIONS

TECHNOLOGY TRENDS

CUSTOMER PREFERENCES

INVESTMENTS

CUSTOMER FEEDBACK

INVESTMENTS

MARKET FEATURES

MARKET SIZE

STRATEGYBRAND

LOYALTY

LOYALTY

The term “ marketing ” constitute different processes, functions, exchanges & activities that create perceived value by satisfying needs of the individuals . Marketing induces or helps in moving people closer in making decisionto purchase & facilitate a sale.

Marketing in recent decades, has gain a lot of importance. It is an immediate cause & effect of

rapid economic growth, globalization, technological upgradation, development of ever-increasing human

needs, wants & increasing purchasing power.

MARKETING DECISION A

business organization faces countless marketing variables

that affect the success & failure of strategy implementation.

Some examples of marketing decisions that may require

special attention are as follows :

▪ The kind of distribution network to be used. Whether to use exclusive dealership or multiple channels of distribution.

▪Whether to limit or enhance the share of business done with a single or a few customers ?

▪Whether to be a price leader or a price follower ?

▪Whether to offer a complete or limited warranty ?

▪Whether to reward salespeople based on straight salary, straight commission or on a combination of salary/commission ?

▪ The amount & extent of advertising. Whether to use heavy or light advertising. What should be the amount of advertising in print media, television or internet ?

DELIVERING VALUE TO

CONSUMER

Marketing needs to work in co-ordination with other departments to produce superior value to the consumer. It acts as a part of the organizational chain of activities.

Marketers are challenged to find ways to get all the other departments to think with focus on consumer. In its search for competitive advantage, the firm needs to

look beyond its own chain of activities & into the chains of its suppliers, distributors and ultimately consumers.

This “partnering” will produce a value delivery network.

COMPANY’S CHAIN OF

ACTIVITIES

COMPANY’S CHAIN OF

ACTIVITIESC

ON

SU

ME

RS S

UP

PL

IER

S

VALUE

DELIVERY

NETWORK

To succeed in today’s competitive market place, companies must be

customer centered. They must win customers from competitors and retain them by delivering greater

value. Since companies cannot satisfy all consumers in a given

market, they must divide up the total market ( MARKET

SEGMENTATION ), choose the best segments ( MARKET TARGETING ) &

design strategies for profitably choosing targeted segments better

than the competition ( MARKET POSITIONING ).

MARKETING PROCESS

Once the strategic plan has defined the company’s overall mission & objectives, marketing plays a crucial role in carrying out these objectives.

The marketing process is the process of analyzing marketopportunities, selecting the target markets, developing the marketing mix and managing the marketing effort. Target customers stand at the center of the marketing process.

AWARENESS

INTEREST

LIKE

TRUST

TRIAL

SALE

REPEAT SALE

REFERRALS

MARKETING PROCESS

MARKETING ANALYSIS

Marketing analysis involves a complete analysis of the

company’s situation. A company performs analysis

by identifying environmental opportunities & threats. It

also analyses its strengths & weaknesses to determine

which opportunity the company can best pursue.

Marketing Analysis has three components as planning, implementation & control. Through analysis organization feed information & other inputs to each of the other marketing management functions.

TARGET MARKET ANALYSIS

PRIMARYRESEARCH

SECONDARY RESEARCH

DEMOGRAPHIC ANALYSIS

PSYCHO-GRAPHICAL ANALYSIS

BEHAVIOUR ANALYSIS

ANALYZING COMPETITORS

POSITIONING/SALES

ANALYZING CONSUMER REPORTS

ONLINE

MARKETING UTILITIES

There are four marketing utilities, which are the capabilities of the product offering to satisfy the needs of a customer are enhanced when exchange occurs. These include the following :

▪ FORM UTILITY : The product is produced or modified for the customer. An example of this might be a car manufacturer designing their car so that a driver will be able to plug in his I-pod or other devices.

▪ TIME UTILITY : The consumers ability to buy the product when he or she wants to have the product. A grocer may store certain amounts of certain foods until the prime season they are bought. It is ensuring that the customers will have access to the food when they desire it the most.

▪ PLACE UTILITY : This describes when a consumer is able to buy the product at a location that is convenient to him or her. The best example of this is online sales since home is the most convenient location for a consumer.

▪ POSSESSION UTILITY : Ownership of the product is transferred from the marketer to the buyer. An example is getting a loan & then buying a car. This utility is concerned with the ease of transferability for the consumer.

THE CONCEPT OF

MARKETING MANAGEMENT There are FOUR marketing management concepts that companies will utilisein their marketingobjectives. All ofthese aim to achieveprofits and objectives,but the focus & meansby which they do sowill differ. They willtypically follow one ofthe four major concepts as follows.

PRODUCT CONCEPT

SELLING CONCEPT

MARKETING CONCEPT

SOCIETAL CONCEPT

CONCEP

T

FOCUS MEANS ENDS

PRODUCT ProductQuality product, reasonable price, little marketing

effort

Achieve profits or objectives by productsgenerating consumer

demands

SELLING ProductAggressive

advertising & selling efforts

Achieve profits or objectives by

generating sales volume

MARKETING Customer Needs

Integrated marketing

Achieve profits or objectives through

customer satisfaction

SOCIETAL

Customer Satisfaction & Long Run

Public Welfare

Constant search for better products in terms of appeal

& benefit

Satisfy organizational goals & responsibilities

for society

TRADITIONAL APPROACH

VS MODERN APPROACHTo understand the

fundamentals of marketing, it is important

to understand two different approaches

used when a company choose to introduce a

new product. These two approaches are

“Traditional Marketing” and “Integrated

Marketing”.

There are typically 5 different departments directly involved with the product during creation and launch. They are :

If a company opts to use “traditional approach”, all of the departments i.e. Development, Engineering,

Production, Marketing & Distribution work as separate entities. For example, Development will draw up a

product and then pass it along to Engineering to create it. Engineering will then pass it along to Production to

produce it. After that it will be moved to Marketing who will eventually move the product to Distribution

for a product launch.

TRADITIONAL

APPROACH

If a company opts for “Integrated Marketing”, all of the departments work together as a single unit.

Engineering will not begin a product without ensuring that Production has the capability to produce it.

Development will check with Marketing to make sure that the product is in line with the company’s image

and approach. Basically, in this approach every department will at some point integrate their work

with all the other departments in the process.

INTEGRATED APPROACH

WHICH IS BETTER ?Clearly, “Integrated Marketing” is the better approach. While following this approach, it may take a little longer to launch a product but the likelihood of success is also greater.

The “Traditional Methodology” not only leaves much room for interdepartmental conflicting interest but also often ignores the needs of the consumers & is therefore regarded as an outdated approach in the field of marketing.

DIFFERENCE BETWEEN

TRADITIONAL &

DIGITAL MARKETING

TRADITIONAL

MARKETING

DIGITAL MARKETING

Marketing needs to interrupt the customers to get attention.

Customers control their attention and marketers engage when and what consumers want.

Marketing pushes a consistent message to the marketplace.

Marketers join the conversation by enabling communities of customers, prospects, partners and other influencers.

Limited set of marketing channels. Rapid proliferation of (and experimentation with) new measures and targetable channels.

Marketing is mostly “right-brained” (creative).

Marketing is mostly left-brained(calculative).

Marketers are not held fully accountable and as a result are not considered strategic at many organizations.

Marketers can demonstrate bottom-line impact, justify their budget and plan the marketing mix with quantitative rigour.

MARKETING PLANNINGMarketing Planning involves deciding on marketing strategies that will help the company attain its overall strategic objectives. A detailed plan is needed for each business, product or brand.

A product or brand plan may contain different sections : Executive Summary Current Marketing Situations Threats & Opportunities Analysis Objectives & Issues Marketing Strategies Action Programs Budgets & Controls

MARKETING PLANNING

EXECUTIVE SUMMARY

CURRENT MARKET

SITUATION

THREAT & OPPORTUNITY

ANALYSIS

MARKET STRATEGIES

ACTION PROGRAMS

BUDGET & CONTROLS

❖ The “Executive Summary” is a short summary of the goals & recommendations to be presented in the plan.

❖ The “Current Marketing Situation” is a section of a marketing plan that describes the target market & the company’s position in it. Important sections include :

A market description A product reviewAnalysis of the competitionA section on distribution

COMPONENTS OF

MARKETING PLANNING

❖ In the “Opportunities & Threats” section, managers are forced to anticipate important

developments that can have an impact, either positive or

negative, on the firm.

❖ Having studied the product’s threats & opportunities, the

manager can set objectives & consider issues that will affect

them. The objectives should be stated as goals that the company

would like to attain during the plan’s term.

❖ Marketing strategy is the marketing logic by which the business unit hopes to achieve its marketing objectives. Strategies should be created for all marketing mix components.

❖The Marketing Budget is a section of the marketing plan that shows projected revenues, costs and profits.

❖ The last section of the marketing plan outlines the controls that will be used to monitor progress. This allows for progress checks & corrective actions.

DEALING WITH THE

MARKETING ENVIRONMENT

A company must carefully analyse its

environment in order to avoid the threats and take advantage of the

opportunities. Areas to be analysed in the

environment normally include the following :

MICRO ENVIRONMENT

CONSUMER

COMPETITION

ORGANIZATION

MARKET

SUPPLIER

MARKET INTERMEDIARY

Forces close to the company such as its ability to serve customers, other company departments, other channel members that

comprise the organization, suppliers, competitors, market intermediaries as well

as market.

MACROENVIRONMENT

DEMOGRAPHIC ENVIRONMENT

ECONOMICENVIRONMENT

POLITICAL ENVIRONMENT

SOCIO-CULTURALENVIRONENT

TECHNOLOGICALENVIRONMENT

GLOBALENVIRONMENT

Broader forces such as demographic factors, economic

forces, political and Legal forces, Technological and Ecological forces, as well as social and

cultural factors.

MARKETING MIXMarketing Mix forms an important part of overall competitive marketing strategy. The marketing mix is the set of controllable marketing variables that the firm blends to produce the response it wants in the target market. The marketing mix comprises of everything that the firm ca do to influence the demand for its product. These variables are often referred to as “4Ps”.

The 4Ps stand for Product, Price, Place & Promotion. An effective marketing program blends all of the marketing mix elements into a coordinated program designed to achieve the company’s marketing objectives by delivering value to the customer.

The 4Ps are from the “Marketer’s Angle”. When translated to the perspective of “Buyers”, they may be termed as 4Cs.

COMMUNICATION

CONVENIENCE

CUSTOMER COSTPRICE

PLACE

PROMOTION

CUSTOMER SOLUTIONPRODUCT

MARKETER’s ANGLE

BUYER’s ANGLE

EXPANDED MARKETING MIX

Typically, all organisations use a combination of 4 Ps in some form or the other. However, the above

elements of marketing mix are not exhaustive. It is pertinent to discuss a few more elements that may form part of an organizational marketing

mix strategy. They have got more currency in recent years. Growth of

services has its own share for the inclusion of new elements in

market.

People

Physical Evidence

Process

EXPANDED MARKET MIX

INCLUDE :

MARKET MIX

PRODUCT

PRICE

PLACE

PROMOTIONPEOPLE

PHYSICAL EVIDENCE

PROCESS

PRODUCT

Product stands for the “goods & services” combination the company offers to the target market.Strategies are needed for

managing the existing products over time adding new ones & dropping failed products. Strategic decisions are to be made regarding branding, packaging & other product features such as warrantees. Products can be differentiated on the basis of size, shape, color, packaging, brand names, after sales services and so on.

Organizations formalize product differentiation through christening “brand names” to their respective products. Brands enable the customers to identify the product & the organization behind it. The product’s even the firm’s image is built around brand through advertising & other promotional strategies. Customers tend to develop strong brand loyalty for a particular product over a period of time.

Organizations seek to hammer into the customer’s mind that their products are different from others, it does not matter whether the difference is real or imaginary.

PRICEPrice stands for the amount of

money consumers have to pay to obtain the product. Necessary

strategies pertain to the location of the consumer, price flexibility,

related items within a product line & terms of sale. The price of a

product is its composite expression of its utility & value to

the consumer, its demand, quality, reliability, safety, the competition its faces, the desired profit and so

on.

In an industry, there would be organizations with low cost products and other organizations with high cost. the low cost organization may adopt aggressive pricing strategy as they enjoy more freedom of action in respect of their prices.

However, in the competitive environment such an approach may not be feasible. More and more companies of today have to accept the market price with minor deviations & work towards their costs. They reduce their cost in order to maintain their profitability.

PRICE SKIMMIMG &

PENETRATION

PRICING

In penetration, firm keeps a tempting low price for a new product which itself is the selling point. A very large number of potential consumer may be able to

afford and willing to try the product.

In skimming, prices are set at a very high level. The product is directed to those buyers who are relatively insensitive to prices but sensitive to the novelty of the

new product.

For a new product, an organization may either choose to “skim” or “penetrate” the market.

PLACE

PLACE stands for the company activities that make the product available to the target consumers.One of the most basic marketing

decision is choosing the most appropriate marketing channel.

Strategies should be taken for the management of channel(s) by which ownership of product is transferred from producer to consumer and in many cases, the system(s) by which goods are moved from where they are produced from where they are purchased by the final consumer.

Strategies applicable to the middlemen such as wholesalers & retailers must be designed & implemented.

The distribution system of a policy are important determinants of the functions of marketing. The decision to utilise a particular marketing channel or channels sets the pattern of operations of sales force.

PROMOTION

Promotion stands for those activities that communicate the merits of the product & persuade the target consumers to buy it. Strategies are needed to combine individual methods such as advertising, personal selling and sales promotion into a coordinated campaign. In addition, promotional strategies must be adjusted as a product move from an earlier stage from a later stage of its life.

Modern Marketing is highly ‘promotion oriented’. Organizations strive to push their sales & market standing on a sustained basis & in a profitable manner under conditions of complex direct & indirect competitive situations.

Promotion also acts as an impetus to marketing. It is simultaneously a communication, persuasion and conditioning process. There are atleastfour major promotional methods or tools as follows :

PROMOTION

PERSONAL SELLING

ADVERTISING

PUBLICITY

SALES PROMOTION

PERSONAL SELLING

▪ It is one of the oldest form of marketing, involving face to face interaction of sales force with the prospective buyers & provides a high degree of personal attention to them.

▪ It may initially focus on developing relationships with the consumer but end up with efforts to make a sale.

▪ Personal Selling suffers from very high cost as sales personnel are expensive. Also they can attend one physical customer at a time. This method is used in every industry for all kind of products.

ADVERTISING

▪ It is a non personal, highly flexible and dynamicpromotional method. Advertising may be directed towards consumers, middlemen or opinion leaders.

▪ There are several media for advertising such as Pamphlets, Brochures, Newspapers, Hoardings, Magazines, Radio, TV, Display Boards, & so on.

▪ Advertising is likely to succeed in promoting the sales of an organization but its effectiveness with respect to the expenditure cannot be directly measured.

PUBLICITY

▪ Publicity is a communication of a Product, Brand or Business by placing information about it in the media without paying for the time or media space directly.

▪ It is also a non-personal form of promotion similar to advertising but here no payments are made to any kind of media. Thus, it is a way of reaching consumers with negligible cost.

▪ Basic tools for publicity are press releases, press conferences, stories, reports and internet releases. These releases must be of interest to the public.

SALES PROMOTION▪ Sales Promotion is an omnibus term that includes all activities that are undertaken to promote the business but are not included specifically under the previous three.

▪ Activities like discount, money refunds, contests, installments, kiosks, exhibition & fair constitute sales promotion.

▪ They are meant to boost sales and are done periodically to help in attaining a larger market share to the organization.

PEOPLE

It comprises all human actors who play a part in the delivery of the market offering and thus, influence the buyer’s perception , namely the firm’s personnel and customers.

PHYSICAL EVIDENCE

It is the environment in which the market offering is

delivered and where the firm and firm interact. Physical

evidence can also be referred to as the proof that the

consumer has been offered and delivered the product or service for which he has paid

the price.

PROCESS

The actual procedures, mechanisms and flow of activities by which the product/service is delivered to the customer. This is the last step that leads to the goal seeking of the organization that is to satisfy the customer.

MARKETING STRATEGY

TECHNIQUES

In order for businesses to win marketshare & stay relevant they needto consider many types of marketingstrategies. Each marketing strategycan communicate to the target market the benefits and features of its product. For

example, “Apple” has invested in creating commercials for televisions, billboards & magazines that showcase their products in such a way that their customers feel an affinity towards apple products.

SERVICE MARKETING : It isapplying the concepts, toolsand techniques of marketingto services. Service is anybenefit or activity that one party can offer to another

which is essentially intangible and does not result in banking, savings, relating, education or utilities.

DIRECT MARKETING : Marketing through various advertising media that

interact directly with consumers, generally calling for the consumers to

make a direct response. Direct marketing includes catalogue selling,

mail, telecomputing, electronic marketing, TV shopping, etc.

SOCIAL MARKETING : It refers to the design, implementation & control of

programs seeking to increase the acceptability of a social idea, cause

or practice among a target group.

AUGMENTED MARKETING : It is the provision of additional customer services built aroundthe care of products thatrelate to introduction ofhigh-tech services suchas movies on demand, on-line computer repair services,

secretarial services, etc. Such innovative offerings provides set of benefits that promise to elevate customer service to unprecedented levels.

RELATIONSHIP MARKETING : The process of creating, maintaining and enhancing

strong value-laden relationships with customers and other stakeholders. For eg.

Airlines offer special lounges at major airports for frequent flyers, providing

benefits to selected customers to strengthen bonds which will go a long way

building relationships.

CONCENTRATED MARKETING : It Is a market-coverage strategyin which a firm goes aftera large share of one orfew sub-markets.

PERSON MARKETING : People are also marketed. Person marketing consists of

activities undertaken to create, maintain or change attitudes or

behaviour towards particular people. For eg. Politicians, sports or movie stars,

market themselves to get votes or to promote their careers or incomes.

PLACE MARKETING : Place Marketing includes activities undertaken to create, maintain and change attitudes or behaviourstowards particular places such as business sites, tourism sites.

ENLIGHTENED MARKETING : A marketing philosophy holding that a company’s

marketing should support the best long-run performance of the marketing

system. Its five principles include –customer oriented marketing, innovative

marketing, value marketing, sense of mission marketing & societal marketing.

DIFFERENTIAL MARKETING : Itis a market-coverage strategywhere a firm decides to target

several marketsegments & makesseparate product offers to each. Like Hindustan Unilever

Ltd. has Lifebuoy, Lux & Rexona in popular whereas Dove & Pears in premium segment.

DEMARKETING : It comprises of marketing strategies to reduce demand temporarily or permanently – the

aim is not to destroy demand but only to reduce or shift it. This happens when there is overfull demand. For eg. Zoological parks are overcrowded on weekends & holidays.

Here, demarketing is used to regulate demand.

SYNCHRO MARKETING : Whenthe demand for a product isirregular due to season, causing

Idle or overworked capacity, synchro-marketing can be usedto find ways to alter the same pattern of demand through

flexible pricing, promotion & other incentives.

CONCLUSION

Ordinarily, Marketing is an activity performed by business organizations. However, it is not necessarily confined only to business enterprises.

“ Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating, offering and exchanging products of value with customers”.

- Philip Kotler.