Marketing basics


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Marketing basics

  1. 1.
  2. 2. <ul><li>The process of planning and executing the pricing promotion and distribution of products and services and ideas in order to create exchanges that satisfy both the firm and its customers. </li></ul>
  3. 3. <ul><li>The activities that direct the flow of goods and services from production to consumption. </li></ul><ul><li>It starts with the customer </li></ul><ul><li>-- what he wants to have </li></ul><ul><li>it ends with the customer </li></ul><ul><li>--- giving him what he wants. </li></ul><ul><li>Meeting needs profitably, art of selling products, to sell superfluous. </li></ul>
  4. 4. <ul><li>1950s -Consumer marketing </li></ul><ul><li>1960s -Industrial marketing </li></ul><ul><li>1970s -Non profit societal marketing </li></ul><ul><li>1980s -Services marketing </li></ul><ul><li>1990s -Relationship marketing </li></ul>
  5. 5. <ul><li>Booming global economy </li></ul><ul><li>Renaissance in the arts </li></ul><ul><li>Emergence of free market socialism </li></ul><ul><li>Global lifestyles </li></ul><ul><li>Cultural nationalism </li></ul><ul><li>Privatization of welfare state </li></ul><ul><li>Rise of pacific Rim </li></ul><ul><li>Age of biology </li></ul><ul><li>Religious revival of new millennium </li></ul><ul><li>Triumph of the individual </li></ul><ul><li>--- John Naisbitt –(Futurist) </li></ul>
  6. 6. <ul><li>“ Deliver a higher standard of living” </li></ul>
  7. 7. <ul><li>Get the right goods and services </li></ul><ul><li>To the right people </li></ul><ul><li>At the right time </li></ul><ul><li>At the right price </li></ul><ul><li>Using right blend of promotional techniques </li></ul><ul><li>20 % of your customers contribute 80% of your companies profit the problem is finding out who they are . </li></ul>
  8. 8. <ul><li>Goods </li></ul><ul><li>Services </li></ul><ul><li>Events </li></ul><ul><li>Experiences </li></ul><ul><li>Persons </li></ul><ul><li>Places </li></ul><ul><li>Properties </li></ul><ul><li>Organizations </li></ul><ul><li>Information </li></ul><ul><li>Ideas </li></ul>
  9. 9. <ul><li>Stated need - Inexpensive car </li></ul><ul><li>Real need – operating cost low </li></ul><ul><li>Unstated need – Good service </li></ul><ul><li>Delight need – Onboard navigation system </li></ul><ul><li>Secret need – Seen by friends as a savvy customer </li></ul>
  10. 11. <ul><li>1. The Law of Leadership It’s better to be first than it is to be better. The basic issue in marketing is creating a category you can be first in. E.g., most people know who climbed Mount Everest first, but not second. </li></ul><ul><li>2. The Law of Category If you can’t be first in a category, set up a new category you can be first in. E.g., most people don’t know who landed on the moon fourth but they know who the first man to do that was. </li></ul>
  11. 12. <ul><li>3. The Law of the Mind It’s better to be first in the mind than to be first in the marketplace. E.g., Altair 8800 was the first PC, but Apple got first in the mind. </li></ul><ul><li>4. The Law of Perception Marketing is not a battle of products; it is a battle of perceptions. </li></ul><ul><li>5. The Law of Focus The most powerful concept in marketing is owning a word in the prospect’s mind. E.g., Xerox this or FedEx that. </li></ul>
  12. 13. <ul><li>6. The Law of Exclusivity Two companies cannot own the same word in the prospect’s mind. </li></ul><ul><li>7. The Law of the Ladder What strategy to use depends on which rung you occupy on the ladder. E.g., Avis is 2 nd – we try harder. </li></ul><ul><li>8. The Law of Duality In the long run, every market becomes a two horse race. E.g., Coke v Pepsi, Kodak v Fuji, McDonalds and Burger King. </li></ul>
  13. 14. <ul><li>9. The Law of the Opposite If you’re shooting for second place, your strategy is determined by the leader. E.g., Coke is an old soft drink, so Pepsi went for the choice of a new generation. </li></ul><ul><li>10. The Law of Division Over time, a category will divide and become two or more categories, e.g., computers. </li></ul><ul><li>11. The Law of Perspective Marketing </li></ul><ul><li>Effects take place over an extended period of time. </li></ul>
  14. 15. <ul><li>12. The Law of Line Extension There is an irresistible pressure to extend the equity of the brand. </li></ul><ul><li>13. The Law of Sacrifice You have to give up something to get something. FedEx sacrificed other air freight options for small packages overnight, and owned the word “overnight”. </li></ul><ul><li>1 4. The Law of Attributes For every attribute, there is an opposite, effective attribute. E.g., Crest toothpaste fights cavities, but Close Up freshens breath. </li></ul>
  15. 16. <ul><li>15. The Law of Candour When you admit a negative, the prospect will give you a positive. E.g., the 1970 VW will stay ugly longer – implies reliability not good looks. </li></ul><ul><li>16. The Law of Singularity In each situation, only one move will produce substantial results. In a military sense, this is called the line of least expectation, e.g., the Allied invasion of Normandy. </li></ul><ul><li>17. The Law of Unpredictability Unless you write your competitors’ plans, you can’t predict the future. </li></ul>
  16. 17. <ul><li>18. The Law of Success Success often leads to arrogance, and arrogance to failure. </li></ul><ul><li>19. The Law of Failure Failure is to be expected and accepted. </li></ul><ul><li>20. The Law of Hype The situation is often the opposite of the way it appears in the press. When IBM was successful, the company said very little. Now it throws a lot of press conferences. </li></ul>
  17. 18. <ul><li>21. The Law of Acceleration Successful programs are not built on fads; they’re built on trends. Ninja turtles could have been the next Barbie dolls if the market hadn’t been flooded, and the makers had tried to turn the fad into a trend. </li></ul><ul><li>22. The Law of Resources Without adequate funding an idea won’t get off the ground. </li></ul>
  18. 19. <ul><li>Product – create value for customer </li></ul><ul><li>Price - right price </li></ul><ul><li>Place - right place distribution and Time </li></ul><ul><li>Promotion – Communication and teach customer </li></ul><ul><li>Physical environment –service delivery </li></ul><ul><li>Process – sequence of actions in service performance </li></ul><ul><li>People -- Employees and customers </li></ul>
  19. 20. <ul><li>Bargaining power of supplier </li></ul><ul><li>Bargaining power of customer </li></ul><ul><li>Threat of new entrants </li></ul><ul><li>Threat of substitutes </li></ul><ul><li>Competitive rivalry between existing players </li></ul>
  20. 21. <ul><li>Generate an inner glow </li></ul><ul><li>Radiate an outer glow </li></ul><ul><li>SMILE with your eyes </li></ul>
  21. 22. <ul><li>Famous Chevrolet salesman </li></ul><ul><li>12 years he is number one </li></ul><ul><li>Salary 2,000,000 $ per year </li></ul><ul><li>He sends “ I like You” cards to his 13000 customers </li></ul><ul><li>Customers say “YES” </li></ul>
  22. 23. <ul><li>One kind to advertise </li></ul><ul><li>One kind to sell </li></ul><ul><li>One kind to make money </li></ul>
  23. 24. <ul><li>Foot in the door </li></ul><ul><li>Low ball </li></ul><ul><li>Door in the face </li></ul><ul><li>Reciprocity </li></ul>
  24. 25. <ul><li>First make a small request then follow it up with a larger request </li></ul><ul><li>Start small and build </li></ul>
  25. 26. <ul><li>First make an attractive deal </li></ul><ul><li>People say YES </li></ul><ul><li>Fill all the forms </li></ul><ul><li>They think as a good deal </li></ul><ul><li>Hook is set </li></ul><ul><li>Then change the deal </li></ul><ul><li>Done by used car salesperson </li></ul>
  26. 27. <ul><li>A large request followed by a small request </li></ul><ul><li>When large is rejected follow it with a small reasonable request </li></ul><ul><li>sales person offering one year plan </li></ul><ul><li>Reducing the availability increases the desirability </li></ul>
  27. 28. <ul><li>Sales person leaves a bag containing </li></ul><ul><li>Furniture polish </li></ul><ul><li>Window cleaner </li></ul><ul><li>Detergent </li></ul><ul><li>Toothpaste </li></ul><ul><li>Shampoo </li></ul><ul><li>says try for free </li></ul><ul><li>You end up buying one or two (AMWAY) </li></ul>
  28. 29. <ul><li>CONSUMERS WILL NOT ACCEPT </li></ul><ul><li>HOT FOOD THAT IS SERVED COLD </li></ul><ul><li>AND COLD FOOD SERVED HOT </li></ul>
  29. 30. <ul><li>Givers </li></ul><ul><li>Give friendship and service </li></ul><ul><li>Give promise </li></ul><ul><li>Contribute to the lives of customers </li></ul><ul><li>Trading is not giving </li></ul><ul><li>Everyone lives by selling something </li></ul><ul><li>Making a sale is motivating a salesman </li></ul>
  30. 31. <ul><li>Joining together is the beginning </li></ul><ul><li>Keeping together is progress </li></ul><ul><li>Working together is success </li></ul><ul><li>work together and market products and services </li></ul>
  31. 32. Thank You