What is Marketing
Marketing is the science and art of exploring, creating, and delivering value to satisfy
the needs of a target market at a profit.
The activities of a company associated with buying and selling a product or service. It
includes advertising, selling and delivering products to people.
Why is Marketing required 4P’s
• Finding the Target audience for the product
• To differentiate your product from competitors
• To set competitive pricing
• The most effective promotion techniques
• To form strategies to compete in the market
Packaging is anything used to contain, protect, handle, deliver or present raw materials and
Container : It is a physical necessity that most contents need a suitable container.
Physical Protection : Physical protection from shock, vibration, temperature
Agglomeration : Small packets are packed in bulk
Portion control : The immediate container of the product is a natural vessel for the quantity
• Display of information about a product on its container, packaging, or the product itself.
• Immediate communication about what is contained in the package
• Products with chemicals, foodstuffs and Pharmaceuticals need extra guild lines
• It directly communicates what customer wants
• Maintains customers relationship
Packaging & Labelling
Launching a Product.
Mantra of 3 Major FMCG companies
• Dabar : Widen Market share and increase investment
• Marico : Brand Building
• ITC Ltd. Introduce as many new products as possible
Things required to do before Launching a product.
• Market Research
• Strategy for execution
- Price skimming – gradually reducing prices for same product, wiping out competitions & achieve
monopoly in the market
- Competitive pricing- watchful, dynamic prices, shadow pricing, lower prices to wipe out others
- Price shading –distributors given a free hand on
discounts , constant escalation may cause glut in
the market, if sales goes down profit will b e hit
- Seasonal pricing-Lesser price at end of season,
seasons clearance very often an excuse to clear
- Term pricing- Discounts to those who pay in full,
large industrial buyers benefit from this
- Segment pricing-Discounts /freebies for a
particular segment, deceptive tactic
- Volume pricing- larger the volume greater the
discount, creating demand wont be beneficial
on the long run
- Free market – marketers lower price to raise demand, higher prices higher the supply & lower demand,
equilibrium is achieved after some time
- Ethically ideal situation is when both parties are happy & ethical behavior is ensured from both ends
- Monopoly market –Extremely unethical because they violate the fundamentals of free market, here illegal
control of supply forces & pricing
Role of Government
• Government plays an important role in encouraging businesses to behave in an
• Its control is important to have a control on the monopoly market.
• In poor and developing countries its role is very crucial
• Example – India, rationing of food grains and other essentials
Protecting the economy
• Having control measures like price control by fixing base price or floor price to
Protecting the consumers
• Measures like price ceiling to protect tenants
• Problems related to human freedom
• Curtailing the entrepreneurial freedom of people
• People depend on government for everything which harmed the self esteem of the
• What ever role government plays it should be for the benefit of the people
• Brand is the identity of a company
• A company is responsible for the goods and services it produces under the brand
• Brand has a character shaped by the company internally
• It is recognized by the consumers externally
• Brands that connect ethically to society earn reputation
• Refers to any action taken by an existing business
• discourages potential entrants from entering into competition in that market
• barriers to entry
• product differentiation through heavy spending on new product development, capacity expansion to
achieve lower unit costs, and predatory pricing.
• Virgin Atlantic v British Airways
• Gather as many customers as possible
• Leaving a blazing trail that keeps competitors away
• Customers may dislike too much intrusion in personal life
• To tap the untapped are or in which competitors are less interested.
• Blue ocean
• Good space to nurture a new entrant
• Might go unnoticed.
• This is about the people who has ample amount of experience in the field.
• Well thought out and long term plans
• Detailed plan and policies
• Demerit is that they might be bogged down by the bureaucratic process.
• When companies feel that they are being part of undue competition
• Might provide better product an services and not merely look after acquiring customers
• Lead to Monopoly
• E commerce companies mutually decided to cut down on coupon discounts.
Counter Offensive marketing strategies :
• Are used to secure competitive advantages;
• Market leaders, runner-ups or struggling competitors are usually attacked
• Keeps the company at toes
• Might loose out more because of hyperactive digital media.
• Company keeps the product mix flexible
• Allows innovation and repositioning of its products.
• Might loose stability
• Long term strategy, surrounds competitor slowly
• Might miss the bigger picture and be bogged down
• Defensive tactic
• Foresight of an economic down turn
• Competitors might get n upper hand.
• Innovate strategy coupled with the new technology ; leave competitors behind with the primitive style of
• May not be appreciated by customers.
- Most important among 4Ps – Crucial role in free market
- Pricing Objectives
- Competitive pricing – Follow the leader & differentiate
using other characteristics like quality , strategies
adopted to be different should be fair
- Prestige pricing- To enhance reputation for up-market
areas through limited supplies, products will not be
value for money
- Profitability pricing – maximize revenues through fair
price & high volumes , ways to maximize revenue should
- Volume pricing- Lowest pricing for max. sales, difficult
for small players to survive
Creation of Consumer capacity
• General assumption is that people have money or people with money are the customers.
• Fortune is at the bottom of the pyramid.
• In social marketing assumption is that consumer have very less money
Strategy for them:
Unusual Strategy: Integral marketing paradigm
Innovative product and services