Basics Of Marketing

Session - 1

What is Marketing?
Marketing is the activity, set of institutions, and
processes for creating, communicating, delivering, and
exchanging offerings that have higher value for
customers, clients, partners and society at large
American Marketing Association
There will always, one can assume, be need for some
selling. But the aim of marketing is to make selling
superfluous. The aim of marketing is to know and
understand the customers so well that the product or
service fits him and sells itself Peter Drucker

Maslows
Hierarchy of
Need
s

Hungry
kya ?????

yeah
man!!

Needs
Lets order
cheese
burst now!

Wants
Lets do it
got cash
on hand!!

Dema
nd

Marketing Philosophies
Production Concept
economies of scale, efficiency,
low cost and mass distribution
ex: prevalent during industrial
revolution
Product Concept highest
quality products, sales would
follow automatically ex: High
tech GPS, weather monitoring
devices
Selling Concept Believe in
hard selling, customers need
to pushed into buying ex:
Insurance Products
Marketing Concept Giving
more to the target market
ex: Apple products

Marketing Mix 4 Ps

Product
Product Variety
Quality
Design
Features
Brand Name
Sizes
Services

Price

List Price
Discounts
Allowances
Payment
Period
Credit terms

Place
Channels
Coverage
Assortments
Locations
Inventory
Transport

Promotion
Sales Promotion
Advertising
Sales Force
Public Relations
Direct Marketing

4 Ps from Holistic Marketing

Programs
Performance
People
Processes
point of view

Internal
Marketing
View
consumers
more broadly

Avoidance of
ad-hoc
decisions
Planning
Bringing a
strong
structure to
the

Consumer
driven
activities
Encompasse
s the 4Ps

Measure
outcomes
Financial
implications
Non financial
implications

Consumer Behaviour
Process
Consumer
Marketing
Stimuli
Marketing
Mix

Other
Stimuli
Macro
factors

Psychology
Motivation
Perception
Learning
Memory

Consumer
Characteristic
s
Cultural
Social
Personal

Purchase
Decision

Buying
Decision
Process

Product Choice
Brand Choice
Dealer Choice
Purchase
Amount
Purchase
Timing
Payment
Method

Consumer
Characteristics
Country Specific

Cultural Factors

Sub cultures

Social Class

Social Factors

Reference Groups

Family

Roles and status

Age & Stage in Life

cycle

Economic Factors

Personality & self

concept

Personal factors
Lifestyle and
values

Marketing Action Points

Market
Research
Trigger Stimuli

Problem
Recognition

Marketing
communicatio
n channels at
work

Information
Search

Evaluation of
Alternatives
Positioning &
repositioning
Purchase
Decision
Market
Research and
feedback

Post purchase
Behaviour

Internal
Stimuli
Or
External
Stimuli

Personal,
Commercial,
Public
Experiential
Attribute study
and ranking
Heuristic
Based

Repurchase
Decision

Sources and Techniques used

by consumers

Buying Decision Process: 5

stage Model

Segmentation Basis

Roger Bests Approach

to Targeting

Positioning of a
brand

Brand

A sign,
sign, name,
name, symbol
symbol or
or design
design or
or aa combination
combination of
of them,
them, intended
intended to
to identify
identify the
the goods,
goods, or
or
A
services of
of one
one seller
seller and
and to
to differentiate
differentiate them
them from
from others
others
services

+ve Brand Equity

Rolex, Philips

Brand Equity

Values endowed
endowed to
to the
the brand
brand
Values

Neutral Brand Equity

Milk, Bread brands

-ve Brand Equity

Walmart, Chinese brands

Line Extension

Brand Extension

A strategy
strategy to
to use
use established
established
A
brands to
to introduce
introduce new
new brands
brands
brands

Different Flavours, ingredients & sizes

Category Extension

Enter new territories ex: Knorr Soups

enters instant noodles segment

Brand Mix

A set of all branded items under same

brand

Product Level

Just providing for

the basic
requirement
A decent packaged
service
The price of the
product matches
the benefits
Features more than
expected by
customers
Encompasses all
possible
augmentation of
the product

Pricing
Strategies

Thank you