Covers basics of marketing, Marketing mix, core marketing concepts, marketing myopia, holistic marketing, New Marketing Realities (As per syllabus of Savitribai Phule Pune University)
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’
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.
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)
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)
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.
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)
-
-
+
+
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
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.
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
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
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?
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.