Webinar on Marketing Basics by IIM Rohtak for Admissions-2014
A webinar by PR Cell, IIM Rohtak for Preparation for WAT-PI process, Admissions-2014
WHAT IS MARKETING & MARKETING MANAGEMENT?
Marketing is identifying and meeting customers
Marketing Management: It is all about creating
superior customer value
Example: Flipkart’s cash on delivery payment
What all is
DIFFERENCE BETWEEN SALES AND MARKETING
Selling is the ultimate result of marketing. It is
short term concept that fulfills sales volume
objectives whereas marketing is a long term
concept built around identifying and fulfilling
Marketing shows how to reach to the
Customers and build long lasting relationship
while selling is matching customer demands
with the firm’s product.
7 Ps of
Core Benefit: The service or benefit
the customer is really buying. The
customer is buying rest and sleep
Basic Product: The room includes a
bed, bathroom, towels, desk, dresser
Expected Product: What customers
minimally expect? Clean bed, fresh
towels, working lamps
Augmented Product: Exceeds
Potential Product: Encompasses all
possible augmentations and
transformations the product or
offering might undergo in the future
5 Levels of Product
The Product mix is the total variety of products a firm. For example
Samsung's product mix includes mobile phones, netbooks, tablets,
televisions, fridges, microwaves, printers and memory cards.
A Product line is a number of products grouped together based
on similar characteristics. The characteristic used to split
products, will depend on the firm and its product strategy.
The Product Line Length shows the number of different products
in a product line. A long product line has lots of different products
in it and a short product line has a small number of different
Product Line Depth - Some of the product types in a product line
may be split again into groups, the product line depth shows how
many subgroups the product line contains.
The Product mix width is the number of product lines in the
product mix. A wide product mix increases the type of customers
a firm can target.
Matching product benefits with cost
Sound pricing decisions are crucial to a
successful business and should be considered
at both long-term strategic and short-term
Pricing Strategies depends on the objectives of
Maximum Market Share: Penetration Pricing
Maximum Market Skimming: Price Skimming
To make the product conveniently available to
the target market consistent with their
Distribution Network, Supply Chain, Logistics
At what Price you will offer your product to the consumer. Some of the pricing strategies widely
Price Skimming – Charge a high price because you have a substantial competitive
advantage. However, the advantage is not sustainable. The high price tends to attract new
competitors into the market, and the price inevitably falls due to increased supply.
Penetration pricing – It is a pricing strategy where the price of a product is initially set at a
price lower than the eventual market price, to attract new customers. The strategy works on
the expectation that customers will switch to the new brand because of the lower price.
Premium Pricing – Use a high price where there is uniqueness about the product or service.
This approach is used where a substantial competitive advantage exists. Such high prices
are charge for luxury goods.
Psychological Pricing – This approach is used when the marketer wants the consumer to
respond on an emotional, rather than rational basis. For example 'price point perspective' 99
cents not one dollar.
Cost Plus–Cost-plus pricing - The method determines the price of a product or service that
uses direct costs, indirect costs, and fixed costs whether related to the production and sale
of the product or service or not. These costs are converted to per unit costs for the product
and then a predetermined percentage of these costs is added to provide a profit margin.
Loss Leader –Loss leader or leader is a product sold at a low price (at cost or below cost) to
stimulate other, profitable sales.
A promotional mix specifies how much
attention to pay to each of the elements and
how much money to budget for each.
A promotional plan can have one or more of the
following objectives: sales increases, new
product acceptance, creation of brand
equity, positioning, competitive retaliations, or
creation of a corporate image.
ELEMENTS OF PROMOTION MIX:
Any Paid Form of Non-personal
Personal Presentations by
a firm’s Sales Force.
Short-term Incentives to
Building Good Relations with
Public by Obtaining Favorable
With Individuals to Obtain
an Immediate Response.
STP- SEGMENTATION, TARGETING & POSITIONING
• Dividing the market into subsets of consumers who share a similar set of
needs and wants.
• Geographic, Demographic, Psychographic
• A group of customers towards which a business has decided to aim its
marketing efforts and ultimately its products and services.
• E.g. Women in age group 18-40 for a cosmetics brand
• The way by which the marketers attempt to create a distinct impression in
the customer's mind
• E.g. BMW positioned itself as an automobile that offered both luxury and
STAGES OF PLC
The PLC is a model that illustrates the different stages (six in total) that a
product or service will pass through. Each stage has its own attributes
and will vary in length (time) with different products and services. The
time that it takes for your product/service to move through the PLC will
largely be determined by how effective your marketing plan is.
Stage 1: Development - As soon as you put pen to paper, this is where
the PLC of the product/service begins. This is the time where you will
design and develop your product/service with all the direct costs that
may be incurred such as wages, materials for prototypes, research,
Stage 2: Introduction - This is the time when the product/service is
new in the market and a high degree of marketing will be needed such
as promotions and advertising to increase commercial awareness.
STAGES OF PLC (CONTD.)
Stage 3: Growth - Once your product/service has become established in
the market, you can expect the number of sales to increase rapidly and
marketing expenditure may now be used for brand building. This is the
stage where you will benefit from high profits but this is also the stage
where your profits will peak.
Stage 4: Maturity - The stage of maturity begins when the product/service
sales peak and become stable mainly due to the introduction of
competitors during the end of the growth stage (influencing the move into
the maturity stage).
Stage 5: Saturation - The saturation stage is sometimes overlooked in
many PLC models but is seen as the first sign of product/service decline.
At this point, the product/service has no future for profits because there
are too many competitors or the product/service is no longer popular.
Stage 6: Decline - The product/service moves into the decline stage when
sales start to drop continuously and will be a result of the issues that
moved the product through maturity and saturation
BRAND, BRANDING, BRAND-EQUITY
•Any name, sign, symbol, design to identify goods or services
and differentiate from competitors
•CCD, LV, McDonalds
•Endowing products and services with the power of brand
•Creates mental structure that helps consumers organize their
knowledge about products or services, aiding decision making
•It is the value of your brand
•Reflected in the prices, market share and profitability the brand