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Unit-1
Atul Fegade
Evaluation
No
Description No of Marks
1 Individual Presentations 10
2 MCQ test on Unit-1 & 2 40
3 MCQ test Unit-3 20
4 Group Presentations on Unit-4 & 5 20
5 MCQ Test Unit-4 & 5 40
6 Attendance 150
7 Written Test - Internal Exam 50
Total 330
Attendance Marks
More than 75% 150
60-75% 120
40-60% 90
20-40% 60
10-20% 30
 Books
 Marketing Management – Philip Kotler, Kevin Keller,
Abraham Koshy, Mithileshwar Jha, Pearson, 13th Edition
 Marketing Management – Ramaswamy & Namakumari,
MacMillan, 4th Edition
 Principles of Marketing, Philip Kotler, Gary Armstrong,
Prafulla Agnihotri, Cengage Learning, 13th Edition
 Supplementary Reading Resources
 Marketing White Book (Latest Edition),
 Brand Equity (The Economic Times), Brand Wagon (The
Financial Express), Strategist Supplement (Business
Standard)
 Websites
 www.ncaer.org, www.marketingpower.com
 Marketing – meaning
 The Scope of Marketing
 Meaning
 The marketing process
 Functions of marketing
 Summary
 What is Marketing?
 What is marketed?
 Who Markets?
 Meeting human needs
 profitably
and
 socially responsible way
 Turning a private or social need into a
profitable business opportunity.
 Amazon.in (#ApniDukan, #SabAmazonWaale,
#AmazonPrimeDay)
 Apple: Think Different (i-pod, i-pad, i-phone)
 Unilever, P&G, Google, Big Bazaar, Toyota,
Maruti, ITC, Reckitt Benckiser, Dabur, Coca-cola
etc.
 BigBasket.com
 Marketing is the process by which companies
engage customers, build strong customer
relationships, and create customer value in order
to capture value from customers in return.
 Marketing is the activity, set of institutions, and
processes for creating, communicating,
delivering, and exchanging offerings that have
value for customers, clients, partners, and
society at large. (Approved October 2007, AMA)
 Marketing Management is the art and science of
choosing target markets and getting, keeping,
and growing customers through creating,
delivering, and communicating superior
customer value.
 Marketing’s role is to ‘deliver a higher
standard of living’
Understand
marketplace
& customer
needs &
wants
Design
customer
driven
marketing
strategy
Construct
an
integrated
marketing
program
that
delivers
superior
value
Build
profitable
relationship
s and
create
customer
delight
Capture
value from
customers
to create
profits &
customer
equity
 Events
 Experiences
 Properties
 Organizations
 Information
Places
Persons
Goods
Services
Marketers & Prospects
Markets
Key Customer Markets
Negative
• Nonexistent
• Latent
• Full
• Overfull
Declining
Unwholesome
Irregular
 A set of actual & potential buyer of the
product.
 How can we reach our customers?
 How should our customers reach us?
 How can we reach each other?
 Need markets (the diet seeking market)
 Product markets (the shoe market)
 Demographic markets (the youth market)
 Geographic markets (the Chinese market)
 Voter market, labor market, donor market
etc.
Global Markets
Business Markets Non Profit & Government Market
Consumer
Market
Marketplaces
Marketspaces
Metamarkets (NW University’s
Mohan Sawhney
 Needs, Wants and Demands
 Target Markets, Positioning, and
Segmentation
 Offerings and Brands
 Marketing Channels
 Paid, Owned and Earned Media
 Impressions and Engagement
 Value and Satisfaction
 Supply chain
 Competition
 Marketing Environment
 Need
 A state of felt deprivation
 Basic human requirements
 Stated, real, unstated, delight, secret needs.
 Want
 The form that a human need takes as shaped by culture
and individual personality.
 As society evolves, the wants of its members expand.
 People have narrow basic needs but almost unlimited
wants.
 Demands
 Human wants that are backed by buying power.
 Negative, nonexistent, latent, declining, irregular, full,
overfull, unwholesome demand.
(Back)
 Segments
 Demographic, Psychographic and Behavioral
 Target Market
 Positioning
 Volvo - Safety
 Porsche – pleasure and excitement
(Back)
 Some combination of products, services,
information, or experiences offered to a
market to satisfy need or want.
 ‘Value Proposition”
 ‘Brand’
(Back)
 Communication Channels
 Newspapers, magazines, radio, television, mail,
telephone, smart phone, billboards, posters,
Internet
 Distribution Channels
 Direct or Indirect
 Service Channels
 Warehouses, transportation companies, banks
and insurance companies
(Back)
 Paid Media
 TV, Magazine, display ads, paid search,
sponsorships
 Owned Media
 Company or brand brochure, web site, blog,
Facebook page, Twitter account
 Earned Media
 WOM, Buzz or viral marketing
(Back)
 ‘3 screens’ – TV, Internet, Mobile
 Impressions
 When consumers view a communication
 Metric for tracking the scope or breadth of a
communication’s reach
 Engagement
 Extent of customer’s attention and active
involvement with a communication
 FaceBook Likes, Twitter tweets, comments on a
blog or Website, sharing of video or other
content
(Back)
The sum of tangible and intangible
benefits & costs
Combination quality, service, price (qsp
– customer value triad)
 Product’s perceived performance relative to a
buyer’s expectations.
 Falls below – customer dissatisfaction
 Matches – customer satisfaction
 Exceeds – customer delight
 Advantages – customer loyalty, viral
marketing
 Customers when satisfied spread positive
word
 Brand loyal, ambassador, advocate the
brand
 Speak in favor of the brand to peers &
at social gathering
 Dissatisfied spread negative word
 Withdraw consumption, complain to
authorities.
 Companies try to maximize satisfaction by
lowering price & increasing its service, but
may lead to less profit.
(Back)
(Back)
 Actual & potential rival offerings &
substitutes a buyer might consider.
 A car manufacturer can buy steel from TATA
steel or Steel Authority of India or import
from abroad, or buy aluminum for certain
parts, or buy engineered plastics for bumper
instead of steel.
 Think of substitutes of products.
(Back)
 Task Environment
 Producing, distributing, and promoting
 Company, suppliers, distributors, dealers, and
target customers
 Broad Environment
 Demographic, economic, socio-cultural, natural,
technological, political etc.
 Exchange is the act of obtaining a desired object
from someone by offering something in return.
 Marketing occurs when people decide to satisfy
needs and wants through exchange.
 A political candidate wants ........................
 Maintain desirable exchange relationships with
target audiences involving a product, service,
idea, or other object.
 Acquire new customers, retain existing & grow
business.
 Customers buy a product.
 Consumers use the product.
 The consumer is who own the branded
product with there usages..
 The customer is they buy the product with
the taste and there attitude..
 Example: Parents who buy video games
from retailers are customers. The kids who
play the video games are the consumers.
 Customer Loyalty
 Marketing Vs. Market
 Evolution of Marketing
 Transactional Marketing
 Societal Marketing
 Holistic Marketing
 Customer loyalty is all about
attracting the right customer,
getting them to buy, buy often,
buy in higher quantities and
bring you even more
customers.
 Customers with a long record
of purchases from a preferred
provider caused by their
psychological and emotional
bond with that provider.
 Benefits - Continued patronage,
Reduced marketing costs,
Decreased price sensitivity,
Partnership activities
Frequency of Purchases
Attachment
High loyals
most profitable, make
them feel like family
(20% of your customers)
Latent loyals
find out why they can’t
come more often, find
other ways they can
help, don’t discount
Spurious
loyals
come but don’t care,
make them connect
with you, make them
wish for special
treatment
Low loyals
don’t get distracted
with them, but make
sure they are
satisfied (approx. 40-
60% of your
customers)
-
-
+
+
Develop loyalty programs
Interact with customers
Create institutional ties
 Market is a collection of buyers and
sellers. It is also thought to be a set
of individuals or institutions that have
similar needs that can be met by a
particular product.
 For example, the housing market is a
collection of buyers and sellers of
residential real estate, and
automobile market includes buyers
and sellers of automotive
transportation.
 A market is, therefore, the set of all
actual and potential buyers of a
market offer.
 The company must be able to
measure and forecast the size,
growth, and profit potential of each
market.
 The market demand for a product
under a specific marketing activity is
the sales volume of the product in
the target market for a specified time
period in a particular region.
 Marketing, on the other hand, is an
organizational function and a set of
processes that work in tandem to serve the
market effectively, efficiently and
profitably.
 The American Marketing Association defined
marketing in 2005 as - Marketing is an
organizational function and a set of
processes for creating, communicating, and
delivering value to customers and for
managing customer relationships in ways
that benefit the organization and its
stakeholders.
 A marketer, by adjusting and optimizing the
4P-s of marketing, has to carry out different
marketing tasks, take care of the task or
internal marketing environment, and keep
his eyes and ears open about the happenings
in the broad or external environment, in
order to compete successfully in the
market.
 Four Eras –
 The Production Era (prior to 1920s) – “A good product will sell
itself”
 The idea that consumers will favor products that are available or highly
affordable
 The Product Era
 Consumers will favor products that offer the most quality, performance, and features.
Organization should therefore devote its energy to making continuous product
improvements.
 The Sales Era (prior to 1950s) – “Creative Advertising & Selling
will overcome consumers’ resistance & convince them to buy”
 Consumers will not buy enough of the firm’s products unless it undertakes a
large scale selling and promotion effort
 Four Eras –
 The Marketing Era (since 1950s) – “The consumer rules, find a
need & fill it”
 Achieving organizational goals depends on knowing the needs and wants
of the target markets and delivering the desired satisfactions better
than competitors do
 The Relationship Era (since 1990s) – “Long Term Relationships
with customers and other partners lead to success”
 The Societal Era - a company should make good marketing
decisions by considering consumers’ wants, the company’s
requirements, consumers’ long-term interests, and society’s
long-run interests
FIGURE 1-B Four different orientations in the
history of American business
Societal
HolisticMarketing
Marketing Concepts
SellingProductProduction
Mass production
Mass distribution
Low Cost
Quality
Innovation
Unsought goods
Overcapacity
Create, deliver, and
communicate value
Haier
Lenovo
Selling Marketing
 Needs of seller
 Convert products into
cash
 Needs of buyer
 Satisfy the needs
 A strategy used in business
targeting customers in making "one off" or point of
sale transactions
 Transactional marketing has the purpose of maximizing
a business's sales efficiency by boosting
the volume of individual sales instead of developing an
ongoing relationship with the consumer.
 a business strategy that focuses on single, "point of sale"
transactions. The emphasis is on maximizing the efficiency
and volume of individual sales rather than developing a
relationship with the buyer.
 The societal marketing is marketing concept that
holds that a company should make marketing
decisions by considering consumers' wants, the
company‘s requirements, and society's long-term
interests.
 The organization’s task is to do marketing in a way
that preserves or enhances the consumer’s and the
society’s well-being.
 CSR & Sustainable development
 Deficient products, Pleasing products, Salutary
products, Desirable products
 E.g. The Body Shop uses only plant based materials in
cosmetics
 Nike
 1962 – Blue Ribbon Sports, Founder-
Philip Knight
 Providing high quality running shoes
 Pyramid of influence – winning
athletes’ influence
 Steve Prefontaine (runner)
 Michael Jordan
 Tiger Woods, C. Ronaldo, Roger Federer
 Just do it Campaign in 1988
 Europe – Football
 Brand authenticity (Leagues, local clubs,
national team)
 China – basketball
 India – Cricket
 Footwear, apparel, equipments etc
 Wristwatches to golf clubs to swimming
caps
 $16 billion revenue worldwide
 “everything matters”
 Based on development, design, implementation of
marketing programs, processes and activities that
recognizes their breadth and interdependencies.
 “An approach that attempts to recognize and reconcile the
scope & complexities of marketing values”
 Holistic marketing sees itself as integrating the value
exploration, value creation, and value delivery activities
with the purpose of building long-term, mutually satisfying
relationships and co prosperity among key stakeholders.
Employees
Price
Build long-term
relationships (Customers,
Employees, Marketing
Partners, members of the
financial community)
Develop marketing
networks
Customer Retention
CRM & PRM
Create, communicate,
and deliver customer
value
4 Ps S: Solution
I: Information
V: Value
A: Access
Task of hiring, training & motivating able employees
who want to serve customers well
1st Level: various marketing functions (sales force, advertising, customer
service, product management, marketing research) must work together
2nd Level: Other departments must embrace marketing
Social Responsibility
•ethical, environmental,
legal & social context
Financial Accountability
•Intangible assets like brands,
customer base, employees,
distributors, supplier relations,
& intellectual capital
Chief Marketing
Officer (CMO)
Entire Organization
Marketing Department
 What is marketed?
 Markets
 Core Marketing Concepts
 Customer Loyalty
 Marketing Vs. Market
 Evolution of Marketing
 Transactional Marketing
 Societal Marketing
 Holistic Marketing
 Marketing Myopia
 Selling Vs Marketing
 The New Marketing Realities
 Marketing Mix
 Summary
 A short-sighted and inward looking approach
to marketing that focuses on the needs of
the company instead of defining the
company and its products in terms of the
customers' needs and wants.
 Worked briefly as a consultant in the oil
industry
 Theodore Levitt began teaching at
Harvard in 1959
 Wrote Marketing Myopia in 1960, most
reprints of any Harvard Business Review
article, 900,000
 Chapter eight in Theodore Levitt's book -
The Marketing Imagination (New York:
The Free Press, 1986).
 Levitt cites the railroads and Hollywood as
examples of "industries that have been and are
now endangering their futures by improperly
defining their purposes." Their problem, he says,
is they were "product-oriented instead of
customer-oriented.“
 Narrow definition of market
 Railroads: did not think that they are in transportation
 Hollywood: didn’t concentrate on entertainment
 Ford: Mass Production (success or failure)
• Petroleum industry
▫ A history of obsolete
products due to
competitive substitutes
 Kerosene Lamp
 Kerosene Space Heater
 Light Bulbs
 CFLs
“Organizations must learn
to think of itself not as
producing goods or services
but as buying customers, as
doing the things that will
make people want to do
business with it.” -
Theodore Levitt
 Growing Population = Growing Industry
 Economies of scale makes marketing unnecessary
 Dangers of R & D
 Nokia & Motorola Handset makers
 Nokia had the ability to plug into knowledge about
new technologies and emerging customer needs
from every corner of the world.
 It understood the need for customized handsets from
its experience in Europe
 And in China, India and Africa, it saw that mobile
phones could potentially become substitute for wire-
line phones.
 While Nokia prospected the world for
insight about promising technologies, diverse
customer behavior and new ways to use
mobile phones,
 Motorola continued to develop its products
based on its knowledge of the customers
and technologies in its U.S. backyard.
 The result: Motorola missed the shift to digital
mobile telephony.
 It didn't see the potential to turn the phone into
a fashion icon;
 It was slow to take on board the new ways
mobiles were being used
 This myopic approach to competition, and the
failure to engage fully with the rest of the world
and capture the potential of global markets and
the innovative ideas in them, would cost
Motorola dearly.
1 - 74
 Sold 1.82 million copies
 Used by HUL, P&G,
Godrej, Dabur, Marico,
Banks etc for advertising
 Mr. Jayantrao Salgaonkar
 Sumangal publishing
company
 1973 (10000 copies) at Rs
1.25
 ‘Panchang’
 Converged local calendars
into english calendars
 Amanac, recipe book,
magazine, day-to-day
information, monthly
forecast, railway time-
table, Yoga lessons etc
 Selling starts with seller
 Seller is the centre of
business universe
 Emphasis on selling more
& more
 Concerned with only
selling tactics
 View business Goods
producing business
 Focus on exchange
rather than value
satisfaction
 Produce & then figure
out how to sell it.
 Marketing starts with buyer
 Buyer is centre of the
business universe
 Emphasis on identification
of customer needs/market
opportunity
 Concerned with fulfilling
needs of consumers
 Customer-satisfying process
 Focus on value exchange
 Product is determined by
buyer
 Emphasis on staying with
the existing technology &
reducing costs
 Distribution is extension
of production function
 Seller’s motives
dominate marketing
communication
 Costs determine the
prices
 Somehow selling
 Customer as a last link in
the business
 Emphasis is on innovation
& provide better value to
customer by adopting
new technology
 Distribution is created as
per customer’s
convenience
 Marketing communication
is for communicating
benefits of product
 Consumer determines
price & price determines
costs
 Integrated marketing
 Customer as the purpose
of business
Major Societal
Forces
Information
Technology
Globalization
Increased
Competition
Consumer
Resistance
Deregulation
Retail
Transformation
Disintermediation
Privatization
Industry
Convergence
New Consumer
Capabilities
A substantial
increase in
buying power
A greater variety of
available goods and
services
An ability to
compare notes
on products
and services
A great
amount of
information
about
practically
anything
An amplified voice
to influence public
opinion
Greater ease in
interacting and placing
and receiving orders
New Company
Capabilities
Communication
with employees
and Customers
Collect
Information
Differentiate
Goods
Mobile
marketing &
social media
Internet –
sales channel
Brand
Communities
and Brand
Advocates
 Original sources:
 James Culliton, HBS, ‘Marketers as 'mixers of
ingredients‘, An article called “The Management of
Marketing Costs”
 Neil H. Borden in his 1953 AMA Presidential Address
(Harvard Business School) (1949).
 Neil H. Borden,(1964), "The Concept of the Marketing
Mix," Journal of Advertising Research, 4 (2), 7-12.
 P. J. Verdoorn, (1956), "Marketing from the Producer's
Point of View," Journal of Marketing, 20 (January), 221-
235.
 Frey, Albert W. (1956) The Effective Marketing Mix:
Programming for Optimum Results, Hanover, NH: The
Amos Tuck School, Dartmouth College (Offering &
Method)
 Original sources:
 Frey, Albert W. (1956) The Effective Marketing Mix:
Programming for Optimum Results, Hanover, NH: The
Amos Tuck School, Dartmouth College (Offering &
Method)
 E. Jerome McCarthy, (Michigan State University) (1960),
Basic Marketing: A Managerial Approach. Homewood, IL:
Richard D. Irwin (4Ps)
 Robert F. Lauterborn proposed a four Cs classification
in 1990 (consumer, cost, communication, convenience)
 Bernard Booms and Mary Bitner built a model
consisting of seven P's (Booms, B. and Bitner, M. 1981)
 The tools available to a business to gain
the reaction it is seeking from its target
market in relation to its marketing
objectives
 7Ps
 4Ps are used for products
 Product, Price, Place, Promotion
 Additional 3Ps are used for service
industry
 People, Process, Physical Environment
 All marketing decision-making can be classified into
four strategy elements, sometimes referred to as the
marketing mix or the four P’s.
 Product: What are the benefits of this product and
service to its customers?
 Price: Should this product and service be free or funded
by a grant? Should a price be charged to cover costs
only? Should the price allow for a profit?
 Place: What can be done to make this product and
service more accessible and available?
 Promotion: What can be done to increase the visibility
of this product and service? What can be done to
increase its usage or exposure?
 Product is the actually offering by the company to its
targeted customers.
 Product may be tangible (goods) or intangible (services).
 While formulating the marketing strategy, product decisions
include:
 What to offer?
 Brand name
 Packaging
 Quality
 Appearance
 Functionality
 Accessories
 Installation
 After sale services
 Warranty
 Amount of Money customers pay to obtain the
product.
 Price decisions include:
 Pricing Strategy (Penetration, Skim, etc)
 List Price
 Payment period
 Discounts
 Financing
 Credit terms
 New Product Pricing Strategies:
 Market-skimming pricing, Market- penetration pricing
 Price-Adjustment Strategies:
 Discount and allowance pricing, Segmented pricing,
 Psychological pricing, Reference prices, Promotional pricing
 Geographical pricing, Dynamic pricing, International pricing
 Activities involved in placing the product in the market
 Availability of the product at the right place, at the right time and in
the right quantity is crucial in placement decisions.
 Placement decisions include:
 Placement / Location
 Distribution channels
 Logistics
 Inventory
 Order processing
 Market coverage
 selection of channel members
 Transportation
 wholesalers, agents, retailers, the Internet, overseas distributors,
direct marketing etc.
 Promotion includes all
communication and selling
activities to persuade future
prospects to buy the product.
 Promotion decisions include:
 Advertising is any paid form of
non-personal presentation and
promotion of ideas, goods, or
services by an identified sponsor
 Broadcast, Print, Internet, Outdoor
 Sales promotion is the short-term incentive to encourage the
purchase or sale of a product or service.
 Discounts, Coupons, Displays, Demonstrations
 Public relations involves building good relations with the
company’s various publics by obtaining favorable publicity,
building up a good corporate image, and handling or heading off
unfavorable rumors, stories, and events
 Press releases, Sponsorships, Special events, Web pages
 Personal selling
 Sales presentations, Trade shows, Incentive programs
 Direct marketing
 Catalog, Telemarketing, Kiosks
 People represent the business
 The image they present can be important
 First contact often human – what is the lasting
image they provide to the customer?
 Extent of training and knowledge
of the product/service concerned
 Mission statement – how relevant?
 Do staff represent the desired culture
of the business?
 Staff recruitment and training
 Uniforms
 Scripting
 Queuing systems, managing waits
 Handling complaints, service failures
 Managing social interactions
 How do people consume services?
 What processes do they have to go through to
acquire the services?
 Where do they find the availability
of the service?
 Contact
 Reminders
 Registration
 Subscription
 Form filling
 Degree of technology
 Process design
 Blueprinting (i.e. flowcharting) service processes
 Standardization vs customization decisions
 Diagnosing fail-points, critical incidents and system
failures
 Monitoring and tracking service performance
 Analysis of resource requirements and allocation
 Creation and measurement of key performance
indicators (KPIs)
 Alignment with Best Practices
 Preparation of operations manuals
 The direct sensory experience of a product or
service
 Physical evidence is the material part of a service.
 Material cues
 Packaging, Internet/web pages, Paperwork (such as
invoices, tickets and dispatch notes), Brochures,
Furnishings, Signage (such as those on aircraft and
vehicles), Uniforms, Business cards, The building
itself (such as prestigious offices or scenic
headquarters).
 The ambience, mood or physical
presentation of the environment
 Smart/shabby?
 Trendy/retro/modern/old fashioned?
 Light/dark/bright/subdued?
 Romantic/peaceful/loud?
 Clean/dirty/unkempt/neat?
 Music?
 Smell?
 Facilities (e.g. furniture, equipment, access)
 Spatial layout (e.g. functionality, efficiency)
 Signage (e.g. directional signage, symbols,
other signage)
 Interior design (e.g. furniture, color
schemes)
 Ambient conditions (e.g. noise, air,
temperature)
 Design of livery (e.g. stationery, brochures,
menus, etc.)
 Artifacts: (e.g. souvenirs, mementos, etc.)
 Prepare a marketing mix for Nestle
Chocolates & Confectionary Products.
 Prepare a marketing mix for Cadbury
(Mondelēz International).
 Prepare A Marketing Mix for Samsung Flat
Screen TV
 Prepare a marketing mix for mobile banking
application to be launched in the market.
 Prepare a marketing mix for Nestle Chocolates &
Confectionary Products.
 8 Manufacturing units (Moga Punjab, Choladi
Tamilnadu, Nanjangud Karnataka, Samalkha
Haryana, Ponda & Bicholim Goa, Pantnagar
Uttarakhand, Tahliwal HP
 4 Branch Offices – Delhi, Mumbai, Chennai &
Kolkata.
 Product –
 Chocolate
 Nestle Extra Smooth, Kitkat (Dessert Delight, Senses),
Alpino, Barone, Munch (Nuts), Classic, Milkybar, Eclairs,
Polo, Party Treats.
 Product
 Variety, Different quality, Brand names, Services
 Price
 Pricing Strategy, MRP, Discounts, Offers, Credit
terms
 Place
 Coverage, channel levels, assortments, storage,
transportation
 Promotion
 TV, Sales Promotion, Sponsorship, Public
Relations, Social Media & Internet.
 Prepare a marketing mix for Cadbury (Mondelēz International).
 six company-owned manufacturing facilities at Thane, Induri
(Pune) and Malanpur (Gwalior), Bangalore and Baddi (Himachal
Pradesh) Hyderabad and 4 sales offices (New Delhi, Mumbai,
Kolkata and Chennai)
 70% - Market share
 Product –
 Chocolate
 Dairy milk (15) (Shots, Silk), Celebrations (9), Bournville (3), 5Star (5), Perk
(2), Gems (4), Toblerone, Fuse.
 Beverages
 Bournvita (Li’l Champs) & Tang (4)
 Biscuits
 Oreo (5), Bournvita
 Candy
 Chocolairs & Halls (3)
 Gum
 Bubbaloo
 Product
 Variety, Different quality, Brand names, Services
 Price
 MRP, Discounts, Offers, Credit terms
 Place
 Coverage, channel levels, assortments, storage,
transportation
 Promotion
 TV, Sales Promotion, Sponsorship, Public
Relations, Social Media & Internet.
 Product
 Brand name - Curved, UHD, LED, Plasma
 Installation services, Warranty, After sales service
 Accessories etc.
 Price
 MRP, negotiations in prices, discounts, special trade
allowances, EMIs, Purchase on credit cards
 Place
 Exclusive stores, online e-tailers, Electronic Shops,
Shopping Malls
 Home delivery, services, assortments etc
 Promotion
 Dealers Sales People, TV ads, Sponsorships, Sales
Promotions etc.
 Prepare a marketing mix for mobile banking
application to be launched in the market.
Basics of Marketing Unit_1

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Basics of Marketing Unit_1

  • 2. Evaluation No Description No of Marks 1 Individual Presentations 10 2 MCQ test on Unit-1 & 2 40 3 MCQ test Unit-3 20 4 Group Presentations on Unit-4 & 5 20 5 MCQ Test Unit-4 & 5 40 6 Attendance 150 7 Written Test - Internal Exam 50 Total 330 Attendance Marks More than 75% 150 60-75% 120 40-60% 90 20-40% 60 10-20% 30
  • 3.  Books  Marketing Management – Philip Kotler, Kevin Keller, Abraham Koshy, Mithileshwar Jha, Pearson, 13th Edition  Marketing Management – Ramaswamy & Namakumari, MacMillan, 4th Edition  Principles of Marketing, Philip Kotler, Gary Armstrong, Prafulla Agnihotri, Cengage Learning, 13th Edition  Supplementary Reading Resources  Marketing White Book (Latest Edition),  Brand Equity (The Economic Times), Brand Wagon (The Financial Express), Strategist Supplement (Business Standard)  Websites  www.ncaer.org, www.marketingpower.com
  • 4.  Marketing – meaning  The Scope of Marketing  Meaning  The marketing process  Functions of marketing  Summary
  • 5.  What is Marketing?  What is marketed?  Who Markets?
  • 6.  Meeting human needs  profitably and  socially responsible way  Turning a private or social need into a profitable business opportunity.
  • 7.  Amazon.in (#ApniDukan, #SabAmazonWaale, #AmazonPrimeDay)  Apple: Think Different (i-pod, i-pad, i-phone)  Unilever, P&G, Google, Big Bazaar, Toyota, Maruti, ITC, Reckitt Benckiser, Dabur, Coca-cola etc.  BigBasket.com
  • 8.  Marketing is the process by which companies engage customers, build strong customer relationships, and create customer value in order to capture value from customers in return.  Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. (Approved October 2007, AMA)
  • 9.
  • 10.  Marketing Management is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value.  Marketing’s role is to ‘deliver a higher standard of living’
  • 11.
  • 13.  Events  Experiences  Properties  Organizations  Information Places Persons Goods Services
  • 14.
  • 16. Negative • Nonexistent • Latent • Full • Overfull Declining Unwholesome Irregular
  • 17.
  • 18.  A set of actual & potential buyer of the product.  How can we reach our customers?  How should our customers reach us?  How can we reach each other?  Need markets (the diet seeking market)  Product markets (the shoe market)  Demographic markets (the youth market)  Geographic markets (the Chinese market)  Voter market, labor market, donor market etc.
  • 19.
  • 20. Global Markets Business Markets Non Profit & Government Market Consumer Market
  • 22.  Needs, Wants and Demands  Target Markets, Positioning, and Segmentation  Offerings and Brands  Marketing Channels  Paid, Owned and Earned Media
  • 23.  Impressions and Engagement  Value and Satisfaction  Supply chain  Competition  Marketing Environment
  • 24.  Need  A state of felt deprivation  Basic human requirements  Stated, real, unstated, delight, secret needs.  Want  The form that a human need takes as shaped by culture and individual personality.  As society evolves, the wants of its members expand.  People have narrow basic needs but almost unlimited wants.  Demands  Human wants that are backed by buying power.  Negative, nonexistent, latent, declining, irregular, full, overfull, unwholesome demand. (Back)
  • 25.  Segments  Demographic, Psychographic and Behavioral  Target Market  Positioning  Volvo - Safety  Porsche – pleasure and excitement (Back)
  • 26.  Some combination of products, services, information, or experiences offered to a market to satisfy need or want.  ‘Value Proposition”  ‘Brand’ (Back)
  • 27.  Communication Channels  Newspapers, magazines, radio, television, mail, telephone, smart phone, billboards, posters, Internet  Distribution Channels  Direct or Indirect  Service Channels  Warehouses, transportation companies, banks and insurance companies (Back)
  • 28.  Paid Media  TV, Magazine, display ads, paid search, sponsorships  Owned Media  Company or brand brochure, web site, blog, Facebook page, Twitter account  Earned Media  WOM, Buzz or viral marketing (Back)
  • 29.  ‘3 screens’ – TV, Internet, Mobile  Impressions  When consumers view a communication  Metric for tracking the scope or breadth of a communication’s reach  Engagement  Extent of customer’s attention and active involvement with a communication  FaceBook Likes, Twitter tweets, comments on a blog or Website, sharing of video or other content (Back)
  • 30. The sum of tangible and intangible benefits & costs Combination quality, service, price (qsp – customer value triad)
  • 31.  Product’s perceived performance relative to a buyer’s expectations.  Falls below – customer dissatisfaction  Matches – customer satisfaction  Exceeds – customer delight
  • 32.  Advantages – customer loyalty, viral marketing  Customers when satisfied spread positive word  Brand loyal, ambassador, advocate the brand  Speak in favor of the brand to peers & at social gathering
  • 33.  Dissatisfied spread negative word  Withdraw consumption, complain to authorities.  Companies try to maximize satisfaction by lowering price & increasing its service, but may lead to less profit.
  • 36.  Actual & potential rival offerings & substitutes a buyer might consider.  A car manufacturer can buy steel from TATA steel or Steel Authority of India or import from abroad, or buy aluminum for certain parts, or buy engineered plastics for bumper instead of steel.  Think of substitutes of products. (Back)
  • 37.  Task Environment  Producing, distributing, and promoting  Company, suppliers, distributors, dealers, and target customers  Broad Environment  Demographic, economic, socio-cultural, natural, technological, political etc.
  • 38.
  • 39.
  • 40.  Exchange is the act of obtaining a desired object from someone by offering something in return.  Marketing occurs when people decide to satisfy needs and wants through exchange.  A political candidate wants ........................  Maintain desirable exchange relationships with target audiences involving a product, service, idea, or other object.  Acquire new customers, retain existing & grow business.
  • 41.  Customers buy a product.  Consumers use the product.  The consumer is who own the branded product with there usages..  The customer is they buy the product with the taste and there attitude..  Example: Parents who buy video games from retailers are customers. The kids who play the video games are the consumers.
  • 42.  Customer Loyalty  Marketing Vs. Market  Evolution of Marketing  Transactional Marketing  Societal Marketing  Holistic Marketing
  • 43.  Customer loyalty is all about attracting the right customer, getting them to buy, buy often, buy in higher quantities and bring you even more customers.  Customers with a long record of purchases from a preferred provider caused by their psychological and emotional bond with that provider.  Benefits - Continued patronage, Reduced marketing costs, Decreased price sensitivity, Partnership activities
  • 44. Frequency of Purchases Attachment High loyals most profitable, make them feel like family (20% of your customers) Latent loyals find out why they can’t come more often, find other ways they can help, don’t discount Spurious loyals come but don’t care, make them connect with you, make them wish for special treatment Low loyals don’t get distracted with them, but make sure they are satisfied (approx. 40- 60% of your customers) - - + +
  • 45. Develop loyalty programs Interact with customers Create institutional ties
  • 46.  Market is a collection of buyers and sellers. It is also thought to be a set of individuals or institutions that have similar needs that can be met by a particular product.  For example, the housing market is a collection of buyers and sellers of residential real estate, and automobile market includes buyers and sellers of automotive transportation.  A market is, therefore, the set of all actual and potential buyers of a market offer.  The company must be able to measure and forecast the size, growth, and profit potential of each market.  The market demand for a product under a specific marketing activity is the sales volume of the product in the target market for a specified time period in a particular region.  Marketing, on the other hand, is an organizational function and a set of processes that work in tandem to serve the market effectively, efficiently and profitably.  The American Marketing Association defined marketing in 2005 as - Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.  A marketer, by adjusting and optimizing the 4P-s of marketing, has to carry out different marketing tasks, take care of the task or internal marketing environment, and keep his eyes and ears open about the happenings in the broad or external environment, in order to compete successfully in the market.
  • 47.  Four Eras –  The Production Era (prior to 1920s) – “A good product will sell itself”  The idea that consumers will favor products that are available or highly affordable  The Product Era  Consumers will favor products that offer the most quality, performance, and features. Organization should therefore devote its energy to making continuous product improvements.  The Sales Era (prior to 1950s) – “Creative Advertising & Selling will overcome consumers’ resistance & convince them to buy”  Consumers will not buy enough of the firm’s products unless it undertakes a large scale selling and promotion effort
  • 48.  Four Eras –  The Marketing Era (since 1950s) – “The consumer rules, find a need & fill it”  Achieving organizational goals depends on knowing the needs and wants of the target markets and delivering the desired satisfactions better than competitors do  The Relationship Era (since 1990s) – “Long Term Relationships with customers and other partners lead to success”  The Societal Era - a company should make good marketing decisions by considering consumers’ wants, the company’s requirements, consumers’ long-term interests, and society’s long-run interests
  • 49. FIGURE 1-B Four different orientations in the history of American business Societal
  • 50. HolisticMarketing Marketing Concepts SellingProductProduction Mass production Mass distribution Low Cost Quality Innovation Unsought goods Overcapacity Create, deliver, and communicate value Haier Lenovo
  • 51. Selling Marketing  Needs of seller  Convert products into cash  Needs of buyer  Satisfy the needs
  • 52.
  • 53.  A strategy used in business targeting customers in making "one off" or point of sale transactions  Transactional marketing has the purpose of maximizing a business's sales efficiency by boosting the volume of individual sales instead of developing an ongoing relationship with the consumer.  a business strategy that focuses on single, "point of sale" transactions. The emphasis is on maximizing the efficiency and volume of individual sales rather than developing a relationship with the buyer.
  • 54.
  • 55.  The societal marketing is marketing concept that holds that a company should make marketing decisions by considering consumers' wants, the company‘s requirements, and society's long-term interests.  The organization’s task is to do marketing in a way that preserves or enhances the consumer’s and the society’s well-being.  CSR & Sustainable development  Deficient products, Pleasing products, Salutary products, Desirable products  E.g. The Body Shop uses only plant based materials in cosmetics
  • 56.  Nike  1962 – Blue Ribbon Sports, Founder- Philip Knight  Providing high quality running shoes  Pyramid of influence – winning athletes’ influence  Steve Prefontaine (runner)  Michael Jordan  Tiger Woods, C. Ronaldo, Roger Federer  Just do it Campaign in 1988  Europe – Football  Brand authenticity (Leagues, local clubs, national team)  China – basketball  India – Cricket  Footwear, apparel, equipments etc  Wristwatches to golf clubs to swimming caps  $16 billion revenue worldwide
  • 57.  “everything matters”  Based on development, design, implementation of marketing programs, processes and activities that recognizes their breadth and interdependencies.  “An approach that attempts to recognize and reconcile the scope & complexities of marketing values”  Holistic marketing sees itself as integrating the value exploration, value creation, and value delivery activities with the purpose of building long-term, mutually satisfying relationships and co prosperity among key stakeholders.
  • 59. Build long-term relationships (Customers, Employees, Marketing Partners, members of the financial community) Develop marketing networks Customer Retention CRM & PRM
  • 60. Create, communicate, and deliver customer value 4 Ps S: Solution I: Information V: Value A: Access
  • 61. Task of hiring, training & motivating able employees who want to serve customers well 1st Level: various marketing functions (sales force, advertising, customer service, product management, marketing research) must work together 2nd Level: Other departments must embrace marketing
  • 62. Social Responsibility •ethical, environmental, legal & social context Financial Accountability •Intangible assets like brands, customer base, employees, distributors, supplier relations, & intellectual capital
  • 63. Chief Marketing Officer (CMO) Entire Organization Marketing Department
  • 64.  What is marketed?  Markets  Core Marketing Concepts  Customer Loyalty  Marketing Vs. Market  Evolution of Marketing  Transactional Marketing  Societal Marketing  Holistic Marketing
  • 65.  Marketing Myopia  Selling Vs Marketing  The New Marketing Realities  Marketing Mix  Summary
  • 66.  A short-sighted and inward looking approach to marketing that focuses on the needs of the company instead of defining the company and its products in terms of the customers' needs and wants.  Worked briefly as a consultant in the oil industry  Theodore Levitt began teaching at Harvard in 1959  Wrote Marketing Myopia in 1960, most reprints of any Harvard Business Review article, 900,000  Chapter eight in Theodore Levitt's book - The Marketing Imagination (New York: The Free Press, 1986).
  • 67.  Levitt cites the railroads and Hollywood as examples of "industries that have been and are now endangering their futures by improperly defining their purposes." Their problem, he says, is they were "product-oriented instead of customer-oriented.“  Narrow definition of market  Railroads: did not think that they are in transportation  Hollywood: didn’t concentrate on entertainment  Ford: Mass Production (success or failure)
  • 68. • Petroleum industry ▫ A history of obsolete products due to competitive substitutes  Kerosene Lamp  Kerosene Space Heater  Light Bulbs  CFLs “Organizations must learn to think of itself not as producing goods or services but as buying customers, as doing the things that will make people want to do business with it.” - Theodore Levitt
  • 69.  Growing Population = Growing Industry  Economies of scale makes marketing unnecessary  Dangers of R & D
  • 70.  Nokia & Motorola Handset makers  Nokia had the ability to plug into knowledge about new technologies and emerging customer needs from every corner of the world.  It understood the need for customized handsets from its experience in Europe  And in China, India and Africa, it saw that mobile phones could potentially become substitute for wire- line phones.
  • 71.  While Nokia prospected the world for insight about promising technologies, diverse customer behavior and new ways to use mobile phones,  Motorola continued to develop its products based on its knowledge of the customers and technologies in its U.S. backyard.
  • 72.  The result: Motorola missed the shift to digital mobile telephony.  It didn't see the potential to turn the phone into a fashion icon;  It was slow to take on board the new ways mobiles were being used  This myopic approach to competition, and the failure to engage fully with the rest of the world and capture the potential of global markets and the innovative ideas in them, would cost Motorola dearly. 1 - 74
  • 73.  Sold 1.82 million copies  Used by HUL, P&G, Godrej, Dabur, Marico, Banks etc for advertising  Mr. Jayantrao Salgaonkar  Sumangal publishing company  1973 (10000 copies) at Rs 1.25  ‘Panchang’  Converged local calendars into english calendars  Amanac, recipe book, magazine, day-to-day information, monthly forecast, railway time- table, Yoga lessons etc
  • 74.
  • 75.  Selling starts with seller  Seller is the centre of business universe  Emphasis on selling more & more  Concerned with only selling tactics  View business Goods producing business  Focus on exchange rather than value satisfaction  Produce & then figure out how to sell it.  Marketing starts with buyer  Buyer is centre of the business universe  Emphasis on identification of customer needs/market opportunity  Concerned with fulfilling needs of consumers  Customer-satisfying process  Focus on value exchange  Product is determined by buyer
  • 76.  Emphasis on staying with the existing technology & reducing costs  Distribution is extension of production function  Seller’s motives dominate marketing communication  Costs determine the prices  Somehow selling  Customer as a last link in the business  Emphasis is on innovation & provide better value to customer by adopting new technology  Distribution is created as per customer’s convenience  Marketing communication is for communicating benefits of product  Consumer determines price & price determines costs  Integrated marketing  Customer as the purpose of business
  • 78. New Consumer Capabilities A substantial increase in buying power A greater variety of available goods and services An ability to compare notes on products and services A great amount of information about practically anything An amplified voice to influence public opinion Greater ease in interacting and placing and receiving orders
  • 79. New Company Capabilities Communication with employees and Customers Collect Information Differentiate Goods Mobile marketing & social media Internet – sales channel Brand Communities and Brand Advocates
  • 80.
  • 81.  Original sources:  James Culliton, HBS, ‘Marketers as 'mixers of ingredients‘, An article called “The Management of Marketing Costs”  Neil H. Borden in his 1953 AMA Presidential Address (Harvard Business School) (1949).  Neil H. Borden,(1964), "The Concept of the Marketing Mix," Journal of Advertising Research, 4 (2), 7-12.  P. J. Verdoorn, (1956), "Marketing from the Producer's Point of View," Journal of Marketing, 20 (January), 221- 235.  Frey, Albert W. (1956) The Effective Marketing Mix: Programming for Optimum Results, Hanover, NH: The Amos Tuck School, Dartmouth College (Offering & Method)
  • 82.  Original sources:  Frey, Albert W. (1956) The Effective Marketing Mix: Programming for Optimum Results, Hanover, NH: The Amos Tuck School, Dartmouth College (Offering & Method)  E. Jerome McCarthy, (Michigan State University) (1960), Basic Marketing: A Managerial Approach. Homewood, IL: Richard D. Irwin (4Ps)  Robert F. Lauterborn proposed a four Cs classification in 1990 (consumer, cost, communication, convenience)  Bernard Booms and Mary Bitner built a model consisting of seven P's (Booms, B. and Bitner, M. 1981)
  • 83.  The tools available to a business to gain the reaction it is seeking from its target market in relation to its marketing objectives  7Ps  4Ps are used for products  Product, Price, Place, Promotion  Additional 3Ps are used for service industry  People, Process, Physical Environment
  • 84.  All marketing decision-making can be classified into four strategy elements, sometimes referred to as the marketing mix or the four P’s.  Product: What are the benefits of this product and service to its customers?  Price: Should this product and service be free or funded by a grant? Should a price be charged to cover costs only? Should the price allow for a profit?  Place: What can be done to make this product and service more accessible and available?  Promotion: What can be done to increase the visibility of this product and service? What can be done to increase its usage or exposure?
  • 85.  Product is the actually offering by the company to its targeted customers.  Product may be tangible (goods) or intangible (services).  While formulating the marketing strategy, product decisions include:  What to offer?  Brand name  Packaging  Quality  Appearance  Functionality  Accessories  Installation  After sale services  Warranty
  • 86.
  • 87.  Amount of Money customers pay to obtain the product.  Price decisions include:  Pricing Strategy (Penetration, Skim, etc)  List Price  Payment period  Discounts  Financing  Credit terms  New Product Pricing Strategies:  Market-skimming pricing, Market- penetration pricing  Price-Adjustment Strategies:  Discount and allowance pricing, Segmented pricing,  Psychological pricing, Reference prices, Promotional pricing  Geographical pricing, Dynamic pricing, International pricing
  • 88.  Activities involved in placing the product in the market  Availability of the product at the right place, at the right time and in the right quantity is crucial in placement decisions.  Placement decisions include:  Placement / Location  Distribution channels  Logistics  Inventory  Order processing  Market coverage  selection of channel members  Transportation  wholesalers, agents, retailers, the Internet, overseas distributors, direct marketing etc.
  • 89.
  • 90.  Promotion includes all communication and selling activities to persuade future prospects to buy the product.  Promotion decisions include:  Advertising is any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor  Broadcast, Print, Internet, Outdoor
  • 91.  Sales promotion is the short-term incentive to encourage the purchase or sale of a product or service.  Discounts, Coupons, Displays, Demonstrations  Public relations involves building good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events  Press releases, Sponsorships, Special events, Web pages  Personal selling  Sales presentations, Trade shows, Incentive programs  Direct marketing  Catalog, Telemarketing, Kiosks
  • 92.
  • 93.  People represent the business  The image they present can be important  First contact often human – what is the lasting image they provide to the customer?  Extent of training and knowledge of the product/service concerned  Mission statement – how relevant?  Do staff represent the desired culture of the business?
  • 94.  Staff recruitment and training  Uniforms  Scripting  Queuing systems, managing waits  Handling complaints, service failures  Managing social interactions
  • 95.
  • 96.  How do people consume services?  What processes do they have to go through to acquire the services?  Where do they find the availability of the service?  Contact  Reminders  Registration  Subscription  Form filling  Degree of technology
  • 97.  Process design  Blueprinting (i.e. flowcharting) service processes  Standardization vs customization decisions  Diagnosing fail-points, critical incidents and system failures  Monitoring and tracking service performance  Analysis of resource requirements and allocation  Creation and measurement of key performance indicators (KPIs)  Alignment with Best Practices  Preparation of operations manuals
  • 98.
  • 99.  The direct sensory experience of a product or service  Physical evidence is the material part of a service.  Material cues  Packaging, Internet/web pages, Paperwork (such as invoices, tickets and dispatch notes), Brochures, Furnishings, Signage (such as those on aircraft and vehicles), Uniforms, Business cards, The building itself (such as prestigious offices or scenic headquarters).
  • 100.  The ambience, mood or physical presentation of the environment  Smart/shabby?  Trendy/retro/modern/old fashioned?  Light/dark/bright/subdued?  Romantic/peaceful/loud?  Clean/dirty/unkempt/neat?  Music?  Smell?
  • 101.  Facilities (e.g. furniture, equipment, access)  Spatial layout (e.g. functionality, efficiency)  Signage (e.g. directional signage, symbols, other signage)  Interior design (e.g. furniture, color schemes)  Ambient conditions (e.g. noise, air, temperature)  Design of livery (e.g. stationery, brochures, menus, etc.)  Artifacts: (e.g. souvenirs, mementos, etc.)
  • 102.
  • 103.  Prepare a marketing mix for Nestle Chocolates & Confectionary Products.  Prepare a marketing mix for Cadbury (Mondelēz International).  Prepare A Marketing Mix for Samsung Flat Screen TV  Prepare a marketing mix for mobile banking application to be launched in the market.
  • 104.  Prepare a marketing mix for Nestle Chocolates & Confectionary Products.  8 Manufacturing units (Moga Punjab, Choladi Tamilnadu, Nanjangud Karnataka, Samalkha Haryana, Ponda & Bicholim Goa, Pantnagar Uttarakhand, Tahliwal HP  4 Branch Offices – Delhi, Mumbai, Chennai & Kolkata.  Product –  Chocolate  Nestle Extra Smooth, Kitkat (Dessert Delight, Senses), Alpino, Barone, Munch (Nuts), Classic, Milkybar, Eclairs, Polo, Party Treats.
  • 105.
  • 106.  Product  Variety, Different quality, Brand names, Services  Price  Pricing Strategy, MRP, Discounts, Offers, Credit terms  Place  Coverage, channel levels, assortments, storage, transportation  Promotion  TV, Sales Promotion, Sponsorship, Public Relations, Social Media & Internet.
  • 107.  Prepare a marketing mix for Cadbury (Mondelēz International).  six company-owned manufacturing facilities at Thane, Induri (Pune) and Malanpur (Gwalior), Bangalore and Baddi (Himachal Pradesh) Hyderabad and 4 sales offices (New Delhi, Mumbai, Kolkata and Chennai)  70% - Market share  Product –  Chocolate  Dairy milk (15) (Shots, Silk), Celebrations (9), Bournville (3), 5Star (5), Perk (2), Gems (4), Toblerone, Fuse.  Beverages  Bournvita (Li’l Champs) & Tang (4)  Biscuits  Oreo (5), Bournvita  Candy  Chocolairs & Halls (3)  Gum  Bubbaloo
  • 108.
  • 109.  Product  Variety, Different quality, Brand names, Services  Price  MRP, Discounts, Offers, Credit terms  Place  Coverage, channel levels, assortments, storage, transportation  Promotion  TV, Sales Promotion, Sponsorship, Public Relations, Social Media & Internet.
  • 110.  Product  Brand name - Curved, UHD, LED, Plasma  Installation services, Warranty, After sales service  Accessories etc.  Price  MRP, negotiations in prices, discounts, special trade allowances, EMIs, Purchase on credit cards  Place  Exclusive stores, online e-tailers, Electronic Shops, Shopping Malls  Home delivery, services, assortments etc  Promotion  Dealers Sales People, TV ads, Sponsorships, Sales Promotions etc.
  • 111.  Prepare a marketing mix for mobile banking application to be launched in the market.