INTRODUCTION TO MARKETING

What is Marketing
Selling?
Advertising? Promotions

Making products available in stores.

All above the above, plus much more!

Marketing=?
Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others.
-Philip Kotler

Simple Marketing System

Communication

Goods/services

(a collection of sellers)
Money

Industry

(a collection of Buyers)

Market

Information
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Core Concepts of Marketing

Based on :

Needs, Wants, Desires / demand Products, Utility, Value & Satisfaction

Exchange, Transactions & Relationships

Markets, Marketing & Marketers.

Core Concepts of Marketing

Needs, wants demands Utility, Value & Satisfaction

Products

Markets

Marketing & Marketers

Xchange, Transaction Relationships

Core Concepts of Marketing

Need food ( is a must )

Want Pizza, Burger, French fry's ( translation of a need as per our experience )

Demand Burger ( translation of a want as per our willingness and ability to buy )
Desire Have a Burger in a five star hotel

Current Market Situation

Target market A group a people toward whom a firm markets its goods, services, or ideas with the strategy designed to satisfy their specific needs and preferences Types of markets:

Consumer market E.g. Soft drinks, Cosmetics Business markets E.g. Heavy equipment, Building

Market Segmentation
Definition: Division of the total market into smaller,

relatively homogenous groups Market Segmentation is done on the basis of:

Geographic:
Region City Rural and Semi-urban

 Demographic:
Age Family size Gender Income Occupation Education

Psychographic
Socio-economic classification Lifestyle Personality

Behavioral:
Occasions Loyalty Attitude towards the product

COMPETITION

Who are your competitors?

What are their strengths and weaknesses? What have been their strategies?

How are they likely to respond to your Marketing plan?

What are their market share?

MACRO-ENVIRONMENT
Social Change
Demographics Economic Conditions

Competition

Target Market
Technology

Political & Legal Factors

The 4 Ps & 4Cs

Marketing Mix Convenience

Product

Place

Customer Solution

Price

Promotion

Customer Cost

Communication

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4Ps of Marketing
Product

Features, Designs, Quality, Brand, Sizes, services, Warranty, Product Variety.

Price

Discounts, Incentives, List price, Credit Terms, Payment method.

Sales Promotion, Advertising, Sales force, PR. Distribution Channel, Location, Transport

Promotion

Place

NEW TRENDS; 7Ps

Deriving Marketing Strategies

Business Vision Environmental Analysis Marketing Strategies Marketing Plans

Deriving Strategies
Internal Analysis

Externa l Analysi s

Strategic Alternative s

Product- Market Investment Strategies

Growth Directions Investment Strategies

Functional Area Strategies

Product Market Investment Strategies- Growth

Existing products New products

Existing markets

Market Penetration

Product Development

New markets

Market Development

Diversification

Integration

Product Market Investment Strategies- Growth

Market Penetration Increase Market Share Increase product usage Increase the frequency Increase the quantity Find new application for the current users Market Development Expand geographically Target new segments Product Development Add Product Features Develop new generation of products. Diversification Diversity into new product and new market. Related or Unrelated products

Investment Strategies

Functional Area Strategies

Positioning
Act of designing the companys offering and image to occupy a distinctive place in the mind of the target market.
Pepsi Youngistan Ad What position it created