Core Concept of Marketing, Nature and Scope of Marketing, Importance, Selling Vs Marketing, Marketing Concepts, Segmentation, Basis of Segmentation, Targeting, Strategies of Targeting, Positioning, Strategieis of Positioning, Consumer Markets and Buying Behaviour, Consumer Behaviour, Buying Decision Behaviour

1. INTRODUCTION
TO MARKETING
ARNAV CHOWDHURY

2. DEFINITION
• According to Philip Kotler, “Marketing Management is the process of planning and
executing the conception, pricing and promotion and distribution of goods, services
and ideas to create exchanges with target groups that satisfy customer and
organizational objectives.”

3. • According to American Marketing Association, “ Marketing Management is process of
Planning and executing the conception, pricing, promotion, and distribution of goods,
ideas and services to create exchanges that satisfy individual and organizational
objectives.”
Definition

4. MARKET VS MARKETING
• A market is where buyers and sellers come together and exchange their
products for money.
• It can be in the streets, on the internet, in shops around the world, etc… Customers
and sellers exchange both goods and services for money.

5. MARKET VS MARKETING
• Marketing is the management process which identifies consumer wants,
predict future wants, create wants and find ways to use these wants to the fullest (most
(most profitably). In other words, businesses try to satisfy wants in the most
profitable way possible. Marketing covers a wide range of activities such as:
advertising, packaging, promotion, etc…

6. OBJECTIVES OF MARKETING
MANAGEMENT
• Creating New Customers.
• Satisfying the Needs of Customers.
• Enhancing the Profitability of Business.
• Raising the standards of living People.
• Determining the Marketing Mix.
• To develop new products or improve existing ones

7. CORE CONCEPT

8. CORE CONCEPT
NEED/WANT/DEMAND
• Needs are physiological in nature. People require food, shelter, clothing, esteem,
belonging, and likewise.
• Wants are the options to satisfy a specific need.
• Demand is the want for specific products that are backed by the ability and willingness
(may be readiness) to buy them.

9. CORE CONCEPT
PRODUCT/SERVICES
• Product includes core product (basic contents or utility), product-related features
(colour, branding, packaging, labeling, varieties, etc.), and product-related services
(after-sales services, guarantee and warrantee, free home delivery, free repairing, and
so on).
• Services are intangible in nature

10. CORE CONCEPT
VALUE/COST/SATISFACTION
• Value means overall capacity of product to satisfy need and want. It is a guiding
concept to choose the product.
• Cost means the price of product. It is an economic value of product.
• Satisfaction means fulfillment of needs. Satisfaction is possible when buyer perceives
that product has more value compared to the cost paid for.

11. CORE CONCEPT
EXCHANGE/TRANSACTION/TRANSFER
• Exchange is in the center of marketing. Marketing management tries to arrive at the
desired exchange.
• When an agreement is reached, it is transaction. Transaction is the decision arrived or
commitment made.
• Transfer involves obtaining something without any offer or offering anything without
any return.

12. CORE CONCEPT
RELATIONSHIP/NETWORKING
• Relationship marketing is the practice of building long-term profitable or satisfying
relations with key parties like customers, suppliers, distributors, and others in order to
retain their long-term preference in business.
• Marketing network consists of the company and its supporting stakeholders –
customers, employees, suppliers, distributors, advertising agencies, colleges and
universities, and others

13. NATURE OF MARKETING:
• Customer-oriented: Marketing is focused on understanding and meeting customer
needs and wants.
• Process-oriented: It involves a series of interconnected processes that span from
product development to customer service.
• Data-driven: Marketing decisions are based on data and insights from market research
and analytics.
• Holistic: Marketing involves all aspects of the business, including product design,
pricing, promotion, and distribution.
• Strategic: Marketing involves setting long-term goals and developing plans to achieve
them.

14. SCOPE OF MARKETING
• Market research: Understanding customer needs and preferences, identifying market
opportunities, and assessing competition.
• Product development: Creating products or services that meet customer needs and
wants.
• Pricing: Setting prices that are attractive to customers and profitable for the business.
• Promotion: Communicating with customers to create awareness, interest, and desire
for the product or service.
• Distribution: Delivering the product or service to customers through various channels.

15. IMPORTANCE OF MARKETING
• Customer acquisition: Marketing helps to attract and retain customers by creating
awareness, interest, and desire for the product or service.
• Brand building: Marketing helps to build brand identity and reputation through
consistent messaging and communication.
• Revenue generation: Marketing helps to generate revenue by creating demand for the
product or service and setting profitable prices.
• Market research: Marketing provides insights into customer needs, wants, and
preferences, which can help to inform product development and other business
decisions.
• Competitive advantage: Marketing helps businesses to differentiate themselves from
competitors by offering unique value propositions to customers.

16. SELLING VS MARKETING

17. RECENT TRENDS IN MARKETING
• Relationship Marketing
• Business/Industrial Marketing
• Societal Marketing
• Global Thinking and Local Market Planning
• Emphasis on Direct and Online Marketing
• Services Marketing

18. MARKETING CONCEPTS
• The Production Concept
• The Product Concept
• The Selling Concept
• The Marketing Concept
• The Societal Marketing Concept

19. PRODUCTION CONCEPT
• oldest of the concepts in business
• consumers will prefer products that are widely available and inexpensive
• concept concentrate on achieving high production efficiency, low costs, and mass
distribution

20. THE PRODUCT CONCEPT
• consumers will favor those products that offer the most quality, performance, or
innovative features
• superior products and improving them over time
• assume that buyers admire well-made products and can appraise quality and
performance

21. SELLING CONCEPT
• aggressive selling and promotion effort
• aim is to sell what they make rather than make what the market wants.

22. THE MARKETING CONCEPT
• The Marketing Concept focuses on the needs of the buyer.
• The Marketing Concept is preoccupied with the idea of satisfying the needs of the
customer by means of the product as a solution to the customer’s problem (needs).

23. SOCIETAL MARKETING CONCEPT
• determine the needs, wants, and interests of target markets and to deliver the desired
satisfactions more effectively and efficiently than competitors (this is the original
Marketing Concept)
• Additionally, it holds that this all must be done in a way that preserves or enhances the
consumer’s and the society’s well-being.

24. HOLISTIC MARKETING

25. UNIT II: MARKET SEGMENTATION
• Market Segmentation is the sub dividing of customers into homogenous sub set of
customers where any sub set may be selected as market target to be reached with
distinct marketing mix.
-Kotler
• The process of defining and subdividing a large homogenous market into clearly
identifiable segments having similar needs, wants or demand is called Segmentation

26. NEED FOR SEGMENTATION
• To develop Marketing Activities
• Increase market effectiveness
• Greater customer satisfaction
• Create savings
• To overcome competition effectively

27. BASIS OF MARKET SEGMENTATION
Segmenting Consumer Markets
• Geographic
• Demographic
• Psychographic
• Behavioral

28. GEOGRAPHIC
Geographic segmentation divides the market into different
geographical units such as
• nations,
• regions,
• states,
• counties, or cities

29. DEMOGRAPHIC
Demographic segmentation divides the market into groups
based on variables such as
– age, gender
– family size
– family life cycle,
– income,
– occupation,
– education,
– religion,
– race,
– generation, and

30. PSYCHOGRAPHIC
• Psychographic segmentation divides buyers into
different groups based on
–social class,
–lifestyle,
–personality traits

31. BEHAVIORAL SEGMENTATION
Behavioral segmentation divides buyers into groups
based on their knowledge, attitudes, uses, or
responses to a product
• Occasion
• Benefits sought
• User status
• Usage rate
• Loyalty status

32. SEGMENTATION EXAMPLES
Type of Firm Segmentation Base Possible market
segments
Banking Demographic
segmentation
Young couples, young
families, older
families, pre-
retirement, retired
Mobile phone carriers Benefit segmentation Highly social, work-
oriented, safety
contact, status symbol
Toothpaste Benefit segmentation Teeth whitening,
sensitive teeth, fresh
breath, cavity
protection, tartar
control
Restaurant Behavioral
segmentation
Regulars, special
occasion, business

33. BENEFITS OF SEGMENTATION
1. Facilitates the right choice of Target market:
It helps the marketer to identify potential buyers and pickup their
target market effectively.
2. Facilitates effective tapping of the Chosen market segment:
It helps to know and analyse the demands of each customer group
and make offers that match them.

34. Toyota India

35. 3. Helps identify less satisfied segments and concentrate
on them:
4. Helps to concentrate efforts on most
productive and profitable market segment
instead of frittering over irrevelant,
unproductive /unprofitable segment.
● Segmentation also helps the marketers to
know the segment still waiting to be served
and grabs them as a unique opportunity.

36. 5. FOCUS OF THE COMPANY
● Segmentation is an effective method to increase the focus of
a firm on market segments.
● This helps a company in changing its focus for better returns.
● Thus companies base their strategy completely on a new
segment which increases its focus and profitability.
e.g. Automobile companies have started focusing on small car
segments.

37. 6.CUSTOMER RETENTION
Segmentation ensures customer
retention.
e.g. Titan watches.
● A watch is available for any
customer who enters a Titan
showroom, whatever be his age,
budget.
● from fast track to Sonata and the
high end
watches(EDGE,HTSE,PURPLE,etc)
Titan has them by price segment as well
as life cycle segment.

38. 7. MARKET EXPANSION
● Segmentation plays a crucial role in expansion.
● One cannot expand in a territory without any idea of which
segment of customers one will be dealing with.
● e.g Reebok targets fitness enthusiasts,
it has expanded into clothes and accessories from being a shoe
manufacturer.

39. 8. INCREASE PROFITABILITY
● It affects the profitability of the firm.
e.g. Nike, BMW showrooms.
● One of the USP’s of these brands is their segmentation. i.e
they target segments which donot bargain or negotiate.Thus
their profitability is high.
9. BETTER COMMUNICATION
● Communication cannot be possible without knowing target
market.
● By limiting the audience, one can choose magazines,
websites, radio and TV stations, events that those customers
are more likely to hear, see, visit or attend.
● This makes the marketing effort more economic and efficient.

41. TARGETING
• Targeting is the second stage of the SEGMENT "Target" POSITION(STP) process. After
the market has been separated into its segments, the marketer will select a segment or
series of segments and ‘target’ it/them. Resources and effort will be targeted at the
segment.

42. MARKET TARGETING
• Criteria Size: The market must be large enough to justify segmenting. If the market is
small, it may make it smaller.
• Difference: Measurable differences must exist between segments.
• Money: Anticipated profits must exceed the costs of additional marketing plans and
other changes.
• Accessible: Each segment must be accessible to your team and the segment must be
able to receive your marketing messages
• Focus on different benefits: Different segments must need different benefits.

43. SINGLE SEGMENT SINGLE PRODUCT

44. ONE PRODUCT ALL SEGMENT

45. MULTI PRODUCTS MULTI SEGMENT

46. TARGET MARKET STRATEGIES
• Single Segment Strategy
• Selective Specialization
• Product Specialization
• Market Specialization
• Full Market Coverage

47. UNDIFFERENTIATED, CONCENTRATED,
DIFFRENTIATED
Strategy Description Example
Undifferentiated
Sending the same
promotional message to
everyone
Promoting the city as a historic
destination by placing ads in
widely read newspapers
Concentrated
Designing a promotional
message that
communicates the benefits
desired by a single
specific segment
Promoting the city as historic by
targeting elderly members of
historical societies by placing ads
in their newsletters
Differentiated
Designing more than one
promotional message, with
each communicating
different benefits
Also targeting families by
communicating a promotional
message about the importance of
children learning history

48. POSITIONING
– The place the product occupies in consumers’ minds relative to competing products.
– Typically defined by consumers on the basis of important attributes.
– Involves implanting the brand’s unique benefits and differentiation in the customer’s mind.
– Positioning maps that plot perceptions of brands are commonly used.

49. POSITIONING EXAMPLE
• eBay’s positioning: No matter what “it” is, you can find “it” on
eBay!

50. POSITIONING EXAMPLE
• To (target segment and need) our (brand) is a (concept) that (point-
of-difference).
• “To busy mobile professionals who need to always be in the loop,
Blackberry is a wireless connectivity solution that allows you to
stay connected to people and resources while on the go more
easily and reliably than the competing technologies.”

51.  Identifying possible
competitive advantages
 Choosing the right
competitive advantage
 Choosing a positioning
strategy
 Differentiation can be
based on
 Products
 Services
 Channels
 People
 Image
Topics
Choosing a Positioning Strategy

52. Choosing a Positioning Strategy
• How many differences to
promote?
 Unique selling proposition
 Several benefits
• Which differences to promote?
Criteria include:
 Important
 Distinctive
 Superior
 Communicable
 Preemptive
 Affordable
 Profitable
Topics
 Identifying possible
competitive advantages
 Choosing the right
competitive advantage
 Choosing a positioning
strategy

53. Choosing a Positioning Strategy
• Value propositions
represent the full
positioning of the brand
• Possible value
propositions:
 More for More
 More for the Same
 More for Less
 The Same for Less
 Less for Much Less
Topics
 Identifying possible
competitive advantages
 Choosing the right
competitive advantage
 Choosing a positioning
strategy

54. CONSUMER MARKETS
• Mass Market: This refers to a large and diverse consumer market where products and
services are aimed at a broad customer base. Mass market products are typically
designed to appeal to a wide range of consumers and are not specifically tailored to
individual segments.
• Niche Market: Niche markets are smaller, specialized segments within the broader
consumer market. These markets cater to specific customer needs, preferences, or
interests that may not be adequately served by mass market offerings. Niche markets
often provide opportunities for businesses to target a specific group of consumers with
with unique products or services.

55. CONSUMER MARKETS
• Ethnic Market: Ethnic markets are consumer segments composed of specific ethnic or
cultural groups. These groups have distinct preferences, buying behaviors, and
consumption patterns influenced by their cultural heritage. Businesses may develop
marketing strategies tailored to meet the needs and preferences of these ethnic market
market segments.
• Generational Market: Generational markets focus on consumer segments defined by
specific generations, such as Baby Boomers, Generation X, Millennials, and Generation
Z. Each generation has its unique characteristics, values, and consumption patterns,
which influence their purchasing decisions. Understanding generational differences can
can help businesses customize their marketing messages and product offerings
accordingly.

56. CONSUMER MARKETS
• Luxury Market: The luxury market caters to affluent consumers seeking high-end and
exclusive products and services. Luxury consumers prioritize quality, exclusivity, and the
the overall experience associated with luxury brands. This market segment requires
specialized marketing strategies to create a perception of luxury and maintain a
premium brand image.
• Online Market: With the rise of e-commerce, online consumer markets have gained
prominence. These markets consist of consumers who prefer to purchase products and
services online. The online market allows businesses to target customers through
various digital channels and leverage technologies to enhance the online shopping
experience.

57. CONSUMER MARKETS AND BUYING
BEHAVIOR
• Factors Influencing Buying Behavior
• a. Personal Factors: These include individual characteristics such as age, occupation, lifestyle,
and personality traits that shape consumer preferences.
• b. Psychological Factors: Psychological factors include perception, motivation, learning, and
attitudes, which influence how consumers perceive and respond to marketing stimuli.
• c. Social Factors: Social factors encompass family, reference groups, social roles, and social
class, which impact consumers' purchasing decisions through social influence, norms, and
values.
• d. Cultural Factors: Cultural factors involve cultural values, beliefs, customs, and traditions
that shape consumers' preferences and behavior.

58. CONSUMER MARKETS AND BUYING
BEHAVIOR
Decision-Making Process: The consumer decision-making process typically involves
several stages:
• a. Need Recognition: Consumers recognize a need or want for a particular product or
service.
• b. Information Search: Consumers gather information about potential solutions, which
may involve internal (memory, past experiences) and external (advertisements, reviews)
sources.
• c. Evaluation of Alternatives: Consumers assess different options based on criteria such
as price, quality, features, and brand reputation.
• d. Purchase Decision: The consumer decides to make a purchase and selects a specific
product or service.
• e. Post-Purchase Evaluation: After the purchase, consumers evaluate their satisfaction

59. CONSUMER MARKETS AND BUYING
BEHAVIOR
• Buying Patterns: Consumers exhibit various buying patterns, including routine
purchases, impulse buying, limited decision-making, and extensive decision-making.
These patterns depend on factors such as product involvement, perceived risk, and the
level of consumer knowledge.
• Consumer Trends: Consumer behavior is also influenced by broader trends such as
technological advancements, sustainability, health and wellness, convenience, and
personalization. Businesses need to stay updated on emerging trends to adapt their
marketing strategies accordingly.

60. FACTORS AFFECTING CONSUMER
BEHAVIOUR
• Personal Factors:
– Demographics: Age, gender, income, occupation, education, and family life cycle all play a
role in shaping consumer behavior. For example, different age groups may have distinct
preferences and buying habits.
– Personality and Lifestyle: Consumers with different personality traits and lifestyles may have
varying preferences and behaviors. Some individuals may be more adventurous and willing
to try new products, while others may be more conservative and brand loyal.

61. FACTORS AFFECTING CONSUMER
BEHAVIOUR
Psychological Factors:
– Perception: How consumers perceive and interpret information and stimuli can impact their
buying decisions. Perception is influenced by personal experiences, needs, and expectations.
– Motivation: Consumers are driven by needs and desires. Understanding consumer
motivations, such as the need for status, achievement, or convenience, helps businesses
tailor their marketing strategies.
– Learning and Attitudes: Consumer behavior is shaped by past experiences and acquired
knowledge. Attitudes, beliefs, and values influence the evaluation of products and brands.

62. FACTORS AFFECTING CONSUMER
BEHAVIOUR
• Social Factors:
– Reference Groups: Consumers are influenced by reference groups, such as family, friends,
colleagues, and social communities. These groups provide social norms, opinions, and
recommendations that influence consumer decisions.
– Social Class: Social class affects consumers' preferences, buying patterns, and aspirations. It
can influence the types of products and brands consumers choose to associate with.
– Culture and Subculture: Cultural factors, including values, beliefs, customs, and traditions,
have a significant impact on consumer behavior. Subcultures, such as religious or ethnic
groups, can also influence consumer preferences.

63. FACTORS AFFECTING CONSUMER
BEHAVIOUR
• Situational Factors:
– Purchase Context: The circumstances surrounding the purchase, such as the time, place, and
occasion, can influence consumer behavior. For example, impulse buying may be more likely
in certain situations.
– Purchase Purpose: The intended use or purpose of the product can affect consumer
decision-making. Consumers may have different buying criteria for products used for
personal use versus gifts.

64. TYPES OF BUYING DECISION BEHAVIOUR
Routine Response Behavior:
• Low involvement and low complexity.
• Consumers engage in habitual buying behavior and make quick, routine purchases
without much thought or research.
• The decision is typically based on familiarity, convenience, and minimal evaluation of
alternatives.
• Examples include buying everyday grocery items, toiletries, or routine household
products.

65. TYPES OF BUYING DECISION BEHAVIOUR
Limited Decision Making:
• Moderate involvement and moderate complexity.
• Consumers engage in limited information search and evaluation of alternatives before
making a purchase decision.
• The decision-making process involves considering a few options based on specific
criteria or preferences.
• Examples include purchasing clothing, electronics, or household appliances, where
consumers may compare prices, features, and brands before making a choice.

66. TYPES OF BUYING DECISION BEHAVIOUR
Extensive Decision Making:
• High involvement and high complexity.
• Consumers invest significant effort and time in information search, evaluation of
alternatives, and careful consideration before making a purchase decision.
• The decision-making process involves extensive research, comparing multiple options,
and weighing various attributes and factors.
• Examples include buying a car, a house, or expensive electronics, where consumers
consider multiple aspects such as price, quality, functionality, and brand reputation.

67. TYPES OF BUYING DECISION BEHAVIOUR
Impulse Buying:
• Spontaneous and unplanned purchases.
• Consumers make impulsive buying decisions without much deliberation or conscious
decision-making.
• The decision is triggered by immediate emotional or situational factors, such as sales
promotions, appealing displays, or sudden desires.
• Examples include purchasing snacks, small accessories, or items displayed at the
checkout counter.