Marketing Concepts

Needs, Wants, Demands

Needs Wants Demands
What Deprivation of
basic,
satisfaction
Existing, few
Specific satisfiers of deeper
needs
Wants are many
Specific Wants for products
Wants + purchasing power
Ability & willingness
Influencers Natural, not
created
Shaped by Social-family, friends,
Peers or Institutional-Promotion
Shaped by status,
Aspirations
Instances Food, clothing,
belonging
Needs food-Wants Mcdonalds
Needs clothes-Wants Allen Solly
Needs Car/TV, Wants
Luxury Sedan/flat, As
willing + able,
Demand Benz/Plasma TV
Marketers Existing,
minimum
influence,
House
Influence wants,
Affordable&available Bank loan,
EMls
3 Bed Room
Influence demand by
making product
attractive/aspirational,
Status Duplex / Bungalow

Product-Offered to satisfy needs / wants
Product-tangible eg Books ; Service-Intangible eg Banking, Finance, Hospitality
Products also deliver services eg car-product & transportation-service, Mobile
Focus on products sans service risky eg TV, Fridge, AC without back-up Service Team-
Risky

Brand-An identifying symbol/words/mark distinguishing a product/company from its
competitors.
Branding is an essential part marketing.
Brand = (Functional + Economic + Emotonal) Value Propositions.
Nokia-Functional, Amul- Economic, Saffola- Emotional

Value Proposition- Bundle of benefits the product provides to fulfill customer needs and
wants
Market (mercor-to buy Latin)
Potential + Existing customers sharing a common need/want, able & willing to
engange/enter in exchange to satisfy their needs/wants Eg Pharma Market=Doctors +
Hospital + Trade
Economics-Buyers+ Sellers= Market, Marketers Sellers is industry, Buyers is Market

Value (valere latin worth)-
Consumers estimate of the utility/capacity of a product/brand to satisfy their needs. Fair
return.
Price is what you pay, value is what you get- Warren Buffet Mobiles- convergence

Planning Process of anticipating future events & conditions to determine the best way to
achieve organizational objectives
Marketing planning- Implementing planning activities to achieve marketing
objectives
Strategic planning- Adopting courses of action to achieve organizational
objectives
Tactical planning- Planning that guides the implementation of activities in the
strategic plan






Marketing Environment
M8 +C5 + PESTND (Case Mobile Industry)
Surrounds & impacts the organization, 3 key perspectives- Macro, Micro and Internal
environments.
Environment


Internal Micro Macro Internal Envt-M8-
8 Ms 6Cs PESTND Important for
Men Components Political managing
change
Material Corporate Economic Internal Envt-C5-
Money Channel Socio-cultural Influences
organization
Minutes Communication Technological directly,
Relationship
Markets Customer Natural between firms
& driving
Machines Competition Demographic forces
Methods Direct impact Out of direct control Macro
Envt-PESTND
Mind Influencing factors,
but
Change management out of direct
control,
environmental
change

PEST ND
Political Factors
Huge, influence policy & regulations and spending power of customers
Government- VAT, WTO-GATT, Taxation, Reservations
Economic Factors
Economy Sensex, Forex, Interest rates, Inflation, Employment level, Per
Capita, GDP,
Sociocultural Factors
Ethnicity, local factors and issues, environmental issues- Bandra- Worli Sealink
Attitudes to foreign products and services- KFC Bangalore, Language impact
Cultural and religious factors- Mcdonalds French fries controversy, Nivea in Latin
America
Technological Factors
Technology- New, accessible, better, cheaper, innovation, investment intensive-
ATM, Net
Natural Factors
Raw material availability, Pollution, Environment, Monsoon - Pharmaceuticals
Demographics
Age profile, Geriatrics, Life expectancy, Mortality, Geography, Consumption,
Psychographics

SWOT Analysis (Case)
Tool for auditing organization and environment
1
st
Stage of planning, helps marketers focus on key issues
Identify key issues & objectives, use with other audit & analysis tools, like PEST /
5-Forces
Strength & weaknesses- internal factors, Opportunities & threats-external
Strengths- Specialty, economies, reputation, innovation, service, tech, location,
quality
Weaknesses- lack of strengths
Opportunities- Competition, innovation, technology, regulatory

Successful SWOT analysis guidelines
Short, simple and fair analyses especially about strengths & weaknesses of your
organization
Anticipation of PEST factors in the industry, Avoid grey areas
Competitive analysis through benchmarking, popular tool, quick & easy to learn

Disadvantages
Can be very subjective, Not very reliable, Bias steps in
Two people rarely come-up with the same final version of SWOT
Use only as a guide

Marketing Mix (Neil H. Borden)
Marketing tactics or tools or 4Ps (McCarthy)
Other Ps- Pace, People, Policy, Process, Packaging, etc
Car-Mix of Engine, Mileage, Looks, Price, Features, Quality, EMI options
Mix element vary leading to different strategies, perception & value proporsitions
Product
Brand, features, design, quality, range
Warranty, AMC, service, size,
packing, performance
Price
Strategies,
Credit,
Costs
Promotion
Sales promotion, Personal Selling,
Advertising,
Sponsorship, Multi-level Marketing, Direct
Marketing, Trade fair & Expositions
Place
Channels, location, coverage,
Transportation, inventory, width,
Spread, reach, shippers

Promotion
Marketing communication
Objectives- Sales, attract/retain/covert, trial, awareness, remind, reassure
Retention Levels- reading 10%, listening 20%, Audio-visual 70%; Sight, Sound,
Motion effective. Integrate individuals promotion mix components for effective
communication

Full VS Push: Push Sales Force + Trade Promotion, Pull Advertising + Customer
Promotion
Strategies differ across industry players, traditionally HLL Push and P&G Pull
strategy worldwide
Promotion Mix Strategy ICICI


Channel Intermediaries
Distributor (C&F)- Bulk to smaller packs, handle major area, supply to stockists
Wholesalers (Stockists)- Resell to retailers, storage, coverage essential
Others- Commission agents, co-operative (farmers), Indentors (Imports), agents
(magazine)
Retailers- Strong customer influence, consumption/purchase pattern insight,
service
Specialty (Sport), Supermarket (Big Bazar) Convenience (Kirana), Factory
Outlets, Warehouse, Direct sellers (Encyclopedia)- D2D, Vending Machine (Tea,
Coffee), co-operative (Apna Bazar, Grahak Peths, Societies), Chain stores
(Monginis)
Internet (Service)- Channel margins and inventory costs major saving- can be
passed, hence economical, death of distance, geographically disperse market,
niche products reach wider audience, low entry barriers, display variety &
functionality, interactive, Payment Risky, gaining popularity, delivery costly-
Books, CDs, medicine, travel, tourism
3
rd
Party Logistic (AirFreight, GATI)- tremendous scope
Channel Decisions
Direct or indirect channels/single or multiple channels
Length of channel
Types of intermediaries/Number of intermediaries at each level
Which intermediaries? Avoid intrachannel conflict- Nike