Marketing consists of strategies and tactics to identify, create, and maintain satisfying relationships with customers in a way that provides value for both customers and the marketer. The marketing mix comprises the controllable elements of the marketing plan, including product, price, place, and promotion. Product involves the goods and services, along with supporting elements. Price considers costs and strategies like premium, penetration, economy, and price skimming pricing. Place refers to distribution channels that move products from manufacturers to consumers. Promotion covers advertising, personal selling, sales promotion, public relations, direct marketing, and sponsorship activities used to promote products to target audiences.

1. ADVANCED
ADVERTISING
Marketing

2. What exactly is “Marketing”?

4. Marketing
Marketing consists of the
strategies and tactics, used to
identify, create and maintain
satisfying relationships with
customers that result in value
for both the customer and the
marketer.

5. Dissecting the definition
 Strategies and tactics
Strategies – the direction marketing efforts
take over a period of time
Tactics – actionable steps or decisions made
to follow the strategies

6.  Satisfying relationships – Provide products
and services that customers want and make
the customers feel that they are partner in the
transaction, rather than just a source of
revenue.
 Identify, create and maintain – Identify the
customers, create avenues to build
relationship with customers, and take steps to
keep customers satisfied and happy.

7.  Value for both customer and marketer –
both the customer and marketer gain benefit,
not necessarily monetary.

8. Role of Marketing
 Developing products that satisfy needs and enhance
society‟s quality of life.
 Creating a competitive environment that helps lower
product prices.
 Developing product distribution system to provide
product to a large number of customers and many
geographic locations
 Building demand for products that require
organizations to expand labor force

9. Marketing Mix
 A planned mix of the controllable elements of
the product‟s marketing plan.
 They are adjusted until the right combination
of the elements is found to serve the needs of
the consumer and generating income for the
organization

10. Elements of the marketing mix
Product
Promotio Marketing
Price
n mix
Place

11. Product
 The actual goods or services made for
consumers according to their needs and
requirements.
 Supporting elements like warranties and
guarantees are also included in Product.
 Every product goes through a cycle called
product life cycle. At each stage different
strategies are used.

12. Product life cycle
Introduction Growth Maturity Decline Withdrawl

13. PLC - Introduction
 The product is introduced in the market.
 No pressure of immediate profit.
 Awareness for product is created.
 Generally no competitors at this stage.

14. PLC - Growth
 Competitors enter the market with similar
products.
 Products become profitable.
 Advertising spend is high.
 Companies focus on brand building
 Market share tends to stabilize.

15. PLC - Maturity
 Sales grow at a decreasing rate and then
stabilize.
 Companies attempt to differentiate products
using branding.
 Price wars and intense competition occurs.
 Market becomes saturated.
 Some producers leave the market due to small
profit margins.
 Promotion is widespread and media usage is
high.

16. PLC - Decline
 More innovative products have entered the
market.
 Consumers tastes have changed.
 Intense price –cutting
 Marketing spend is decreased.

17. PLC - Withdrawl
 Products are finally removed from the market,
producers move on to other businesses.

18. Elements of the marketing mix
Product
Promotio Marketing
Price
n mix
Place

19. Price
The process of setting a price
for a product, including all kinds
of incurred costs like
production cost, manufacturing
cost, storage cost, discounts to
be offered etc.

20. Pricing strategies
 Four basic strategies
 Premium pricing
 Penetration Pricing
 Economy Pricing
 Price Skimming

21. Premium pricing
 Use a higher price where there is a
uniqueness about the product or service.
 Used when a substantial competitive
advantage exists.
 Such prices are charged for luxuries.

22. Penetration Pricing
 The price charged for products and services is
set artificially low in order to gain market
share.
 Once it is achieved , the price is increased.
 E.g. Habeeb masala used low introductory
prices .

23. Economy pricing
 A no frills low price.
 The cost of manufacturing and marketing are
kept at a minimum.

24. Price skimming
 Charge a high price because you have a
substantial competitive advantage.
 This high price tends to attract new competitors
into the market.
 As a result price of the product falls due to
increased prices
 E.g telecom services

25. Other pricing strategies
 Psychological pricing
 Product line pricing
 Optional product pricing
 Captive product pricing
 Product bundle pricing
 Promotional pricing
 Geographical pricing
 Value pricing

26.  Psychological pricing
 Used when marketer wants the consumer to
respond on an emotional basis rather than a
rational basis.
 E.g. 99 rupees only as compared to Rs.100
 Rs. 399 instead of Rs.400
 Product line pricing
 When there is a range of services the pricing
reflects the benefits of parts of the range.
 E.g hair cut – Rs. 300, protein treatment – Rs.
400, whole package – Rs. 700

27.  Optional product pricing
 Companies will start to increase the amount the
customer spends once they start to buy, by offering
them the optional but tempting “extras”.
 E.g extra cheese for Rs.50 on a Rs.1100 pizza
 Captive product pricing
 The basic product is charged low. The
accessories/refills/re usable parts are priced using
premium pricing strategy
 E.g. a different charger for Samsung cellphones.
 Product bundle pricing
 Sellers combine several products in the same
package.
 Usually used to move old stock.

28.  Promotional pricing
 Price used to promote a product.
 E.g. buy one get free
 Geographical Pricing
 Price varies in different geographical regions
 E.g. fast food items
 Value pricing
 When external factors like recession or increased
competition force companies to provide „value‟
products and services to retain sales.
 e.g. value meals at McDonalds

29. Elements of the marketing mix
Product
Promotio Marketing
Price
n mix
Place

30. Place
 Also called channel, distribution or
intermediary.
 The mechanism through which goods or
services are moved from the manufacturer/
service provider to the user or consumer.

31. 6 basic channel decisions
 1. Do we use direct or indirect channels?
(direct to consumerr or indirect through a
wholesaler)
 Single or multiple channels
 Cumulative length of the multiple channels
 Types of intermediary
 No of intermediary at each level
 Which companies as intermediaries to avoid
„intrachannel‟ conflicts (e.g. fighting between
local distributors)

32. Selection consideration
How to select a distributor:
 Market Segment
 Distributor
must be familiar with your target
consumer and segment
 Changes at different PLC stages
 In introductory phase, product may be available at
specific locations. In maturity, at many generic
locations.

33. Channel intermediaries
 Wholesalers
 Purchase bulk, break down into packages, resell
to retailers and have storage facilities
 Reduce producer to consumer contact, take some
of marketing responsibilities.
 Agents
 Secure orders for producer and take commission,
do not purchase product. Usually used in
international markets.

34. Channel intermediaries
 Retailers
 Have a stronger personal relationship with the
consumer.
 Holds several brands and products, hence consumer
is exposed to several products.
 Are a strong brand themselves , e.g. Makro, Metro,
Imtiaz…
 Internet
 Geographically dispersed market.
 Product reaches a wide audience
 Set up costs are low.
 Use e-commerce for payment.

35. Elements of the marketing mix
Product
Promotio Marketing
Price
n mix
Place

36. Promotion
Different activities held to
promote the product to the target
audience

37. Promotion Mix
Personal
Selling
Sponsorship Sales Person
Promotion
Mix
Public
Advertising
Relations
Trade Fairs Direct Mail

38. Personal Selling
 Effective way to manage personal customer
relationships.
 The sales person acts on the behalf of the
organization
 They contact consumers personally and
motivate them to buy a product.

39. Sales Promotion
 All kinds of promotions except advertising,
personal selling and public relations.
 E.g
 buy one get one free
 Coupons
 Money off promotions
 Introductory offers
 Free accessories
 Should be carefully costed and compared with
the next best alternative

40. Public Relations
 Deliberate, planned, sustained effort to
establish and maintain mutually beneficial
relationship between an organization and it‟s
publics.
 Cheaper than other promotional elements.

41. Direct Mail
 Customers are targeted based upon a
database.
 An email or snail mail is sent directly to
customers in the specific target market, with
the expectation that some of them will place an
order.
 E.g. Medical students can be sent a mail
regarding medical textbooks.

42. Trade Fairs and Exhibitions
 Used to meet companies to meet with both the
trade and the consumer
 Intention is to create an impression rather than
sell the product.
 Exhibitions are good for making new contacts
and renewing old ones.

43. Advertising
 „Paid for‟ communication
 Used to develop attitudes, create awareness,
and transmit information in order to gain
response from the target market.
 Advertising media such as newspapers,
magazines and journals, televsion, etc.

44. Sponsorship
 When an organization pays to be associated
with a particular event, cause or image.
 Companies sponsor sports events like
Olympics or Formula One, or TV shows etc.
e.g Olper‟s associated with morning shows,
Kisan pak raha hay kia etc.
 The attributes of the event are then associated
with the sponsoring organization.