1. Marketing Fundamentals
- Session 1 -

2. Flow
• What is Marketing?
• Difference between Marketing and Selling
• The Marketing Process
• Key Concepts in Marketing

3. What is Marketing?
- What can you market?
- Evolution of the ‘Marketing Concept’
- Marketing – A Definition

4. What can you market? – An Exercise
• List down all responses
• Bucket them into groups and label them (see next slide)
• Is the marketer always the buyer?

5. What can you market?
Products Services
Concepts

6. Evolution of the ‘Marketing Concept’
The
Production
Concept
• Consumers will buy
products that are widely
available and low in cost
The Product
Concept
• Consumers will buy
products that offer the
best quality or
performance
The Selling
Concept
• Organization must
undertake aggressive
selling efforts to make
customers buy
The
Marketing
Concept
Ref: Marketing Management by Philip Kotler

7. The Marketing Concept
Determine Needs and Wants of target markets
and deliver the desired satisfaction more effectively
and efficiently than the competition

8. Product Oriented vs Market Oriented Definitions - Levitt
Revlon We make cosmetics We sell hope
Xerox We make copying
equipment
We help improve
office productivity
Encyclopedia
Brittanica
We sell
encyclopedias
We are in the
information
production and
distribution business
Carrier We make air
conditioners and
furnaces
We provide a
comfortable climate
at home
Volvo?

9. Difference between Marketing & Selling

10. Difference between Marketing & Selling
Factory Products
Selling &
Promotions
Profits through
Sales Volume
Ref: Marketing Management by Philip Kotler,
Market Customer Needs
Co-ordinated
Marketing
Profits through
Customer Satisfaction
Starting Point Focus Means Ends

11. Pen Exercise

12. The Marketing Process

13. Steps in the Marketing Process
Analyze Market
Opportunities
Research and
Select Target
Markets
Design Market
Strategies
Implement and
Evaluate marketing
initiatives
Plan Marketing
Programs

14. Key Concepts in Marketing
- Needs, Wants & Demand
- Target Market
- Marketing Mix (4 Ps)

15. Needs, Wants, Demand

16. Some Definitions - Kotler
Need
A state of felt deprivation of some basic
satisfaction
Eg: Food, Clothing, Safety, Belonging…
Want
Demand
Desire for specific satisfiers of these needs
Eg: Burger, Mercedes Benz, an LV Bag etc.
Different for different socio-cultural structures
Wants backed by ability and willingness to buy
Eg: # of people who want a Merc and can buy it
Exercise – Need, Want & Demand

17. Demand States – 1
Negative Demand
• Market dislikes the product and may even pay to avoid it
• Eg: Dental work; ex-convicts as employees
No Demand
• Market is indifferent to product
• Eg: Foreign Language Course in Swahili
Latent Demand
• Strong need but no available product
• Eg: Mobile app development firm
Falling Demand
• Drop in demand for an erstwhile strong product
• Eg: Blockbuster
Ref: Marketing Management by Philip Kotler

18. Demand States – 2
Irregular Demand
• Seasonal variations in demand
• Eg: Easter stuff
Full Demand/Overfull
Demand
• Demand that can be met by business/that cannot be met
• Eg: Boeing
Unwholesome
Demand
• Demand for products that are perceived as harmful
• Eg: Illegal drugs
Ref: Marketing Management by Philip Kotler

19. Demand States & Marketing Tasks - An Exercise
• Identify 2 products/services/concepts for each Demand States
• State what would be the Marketing Task if you were a business/organization providing that
product/service/concept

20. Target Market

21. Selecting a Target Market
1. Market Segmentation
1. Can we serve the entire market effectively? If not, then
2. Break the total market into segments that share certain properties
1. Segmentation variables – age, gender, life-stage, product usage, needs…..
2. Measure attractiveness of segments
1. Overall Size
2. Growth
3. Profitability
4. Competition presence
5. Need Gaps in market
3. Select most attractive segment

22. Segmentation Variables - Exercise
• Asusi Ltd. Plans to introduce a new range of tablets for the US market. There is heavy
competition in this segment – a noted competitor being a behemoth here. The Asusi
Marketing Team has done its homework and produce the following product/market grid
analysis. Help Asusi identify which segments to target? And Why?
Segment 1
Feature-driven
Segment 2
Price-driven
Segment 3
Convenience-
driven
Size 15% 55% 30%
Demographic
Profile Skews
Younger, affluent,
males
Middle-aged, less
affluent
Reasonably
affluent, females
Growth 15% 6% 9%
# of key
competitors
2 8 6

23. Examples of Segmented Target Marketing Approach
• Mercedes vs. Tesla
• Exercise 2 – Select a set of Sports Leagues, and try to define the Market Segments & Target
Markets

24. The Marketing Mix
The 4 Ps of Marketing

25. What is the Marketing Mix/4 Ps of Marketing?
Marketing mix is the set of marketing tools that the firm uses to pursue its marketing objectives
– Philip Kotler
Target
Market
Product
Price
Place
Promotion
McCarthy’s 4-factor Classification – 4 Ps

26. Factors under each P
Target
Market
Product
Price
Place
Promotion
McCarthy’s 4-factor Classification – 4 Ps
Variety, Quality, design, features, brand
name, packaging, services, warranties…
List price, discounts, credit period,
payment mode…
Channels, Locations, Assortment,
Inventory, Transport
Sales Promotions, advertising,
Salesforce, PR, DM …..

27. The 4 Ps –Exercise 1
• Categorise the following under the 4 Ps
– Advertising
– Vending Machine
– Free Samples
– Retailing
– After sales Service
– Packaging
– Posters
– Credit terms
– List Price
– Coupons
– Mailers
– Discounts
– Flavor

28. Product

29. Product Lifecycle
Introduction
Growth
Maturity
Saturation
Market Growth
vs Market
Share
Decline

30. Product Lifecycle – Exercise 1
Introduction
Growth
Maturity
Decline
Plot these strategies on the PLC:
1. Significant sales growth;
investment in creating
product/brand awareness and
ramping up distribution
2. Profits not a priority; focus on
investments
3. Sales growth begins to flatten;
focus on pricing & promotions
to maintain growth/shares
4. Product/Brand Extensions in
order to continue to maintain
demand
5. Marketing –spend cutting
Saturation

31. PLC – Exercise 2
• Plot the following products/services on the PLC:
– Desktops
– Paperbacks
– Corner bookstore
– Wearable computing
– Electric Cars
– Tablets
– Smart phones
– Online Travel Booking

32. Product Mix/Product Line
• Also called Product Portfolio or Product Assortment
• Refers to the total range of products that a business offers
• Product Line Depth
– Refers to the different sub-groups within a product line
• Product Mix Width
– Refers to the different types of products offered by a business within a broad umbrella mission
Starbucks example

33. Product Mix Strategy : An Example
CSD/(Carbonated Soft Drinks)/Soda
(Coca Cola Co.)
Coke
Coke Regular
Can
6.5 oz
12 oz
Bottle
Diet Coke
Sprite
Coke Zero
Fanta

34. Price

35. Broad Pricing Strategies
Skimming Premium
Economy Penetration
Product Quality
Price
Low High
Low
High

36. Pricing - Exercise
Identify which pricing strategy is being adopted in each of the below cases:
• Tesla’s new introduction
• Google glasses
• A new Airline, Oceanic Air offers short-haul flights at $x lower than any other airline
• Amazon bundles free shipping into the cost of the latest best-seller by Malcolm Gladwell which
is priced at $80.
• Walmart introduces a new range of private label groceries under their value brand
• Holiday-Inn introduces a package deal for a mid-week break

37. Place

38. Types of Channel Options
• Company Salesforce
• Distributors
• Wholesalers
• Retailers
• Agents/Franchisees
• Partners
• E-Commerce
• Companies change Distribution
Channels over the PLC
• Channel Options differ based on
B2C or B2B models

39. Promotion

40. The Communication Strategy
Tools
• Advertising
• Sales Promotion
• PR
• Personal Selling
Vehicles
• Print
• TV
• Radio
• Outdoor
• Internet/Social Media
• Direct Mail
• Events, Conferences
Positioning Strategy

41. When you have the 4 Ps figured out,
Use the 4 C test to evaluate from the Consumer’s POV
• Does it meet consumer needs? (PRODUCT)
• Is it at a favourable cost (vs competition)? (PRICE)
• Is it convenient to purchase ? (PLACE)
• Does the communication reach them? (PROMOTION)

42. Exercise
• Products/pictures of products
• What do you think were the 4 Ps for the product you picked up?
• Discuss answers,

43. Thank you